HomeMy WebLinkAbout1632 Fennell Scheid
In Re: Melanie B. Fennell Scheid, : File Docket: 12-031
Respondent : X-ref: Order No. 1632
: Date Decided: 4/24/14
: Date Mailed: 5/1/14
Before: John J. Bolger, Chair
Nicholas A. Colafella, Vice Chair
Raquel K. Bergen
Mark R. Corrigan
Roger Nick
Kathryn Streeter Lewis
Maria Feeley
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 Melanie Scheid, a (public official/public employee) in her capacity as a
Mortuary Inspector for the Bureau of Enforcement and Investigation of the Pennsylvania
Department of State, violated \[Sections 1103(a), 1105(b)(5), and 1105(b)(8)\] of the State
Ethics Act (Act 93 of 1998) when she used the authority of her public position for the
private pecuniary benefit of herself and/or a business with which she is associated by
completing an inspection of the Ruffner-Porterfield Funeral Directors & Cremation
Services, Ltd., enabling that entity to operate as a funeral home at a time when she was a
part-owner of the company; and when she failed to disclose on Statements of Financial
Interests for the 2010 and 2011 calendar years her office, directorship and/or employment
in the Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. and all
direct/indirect sources of income in excess of $1,300.
II.FINDINGS:
1. Melanie Scheid was employed as a Mortuary Inspector with the Pennsylvania
Department of State, Bureau of Enforcement and Investigation from September 8,
2009, until May 17, 2012.
a. Scheid, as a Mortuary Inspector, was assigned to the State Board of Funeral
Directors, Pennsylvania Department of State.
Fennell Scheid, 12-031
Page 2
2. The State Board of Funeral Directors is responsible for regulating \[sic\] the Funeral
Director Law (63 P.S. §§ 479.1-479.20) which regulates the licensure and
registration of persons and registration of corporations engaging in the care,
preparation and disposition of the bodies of deceased persons.
3. The State Board of Funeral Directors consists of: the Commissioner of Professional
and Occupational Affairs; the Director of the Bureau of Consumer Protection in the
Office of Attorney General, or his designee; two members appointed by the
Governor, who shall be persons representing the public at large; and five members
appointed by the Governor, who shall be licensed Funeral Directors of good moral
character and who shall also have been actively engaged in the practice of funeral
directing for at least ten years immediately preceding their appointment.
4. Section 479.16(b) of the Funeral Director Law identifies the role of Inspector with
the State Board of Funeral Directors as follows:
a. The board shall appoint an inspector or inspectors whose title shall be
“Inspector, State Board of Funeral Directors, Commonwealth of
Pennsylvania.” Such inspectors shall be licensed funeral directors who have
been actively engaged in the practice of such profession for at least ten
years. Inspectors shall hold office at the pleasure of the board, and shall
receive such compensation as shall be fixed by the board with the approval
of the department. Inspectors shall be empowered to serve all processes
and papers of the board, and shall have the right of entry into any place,
where the business or profession of funeral directing is carried on or
advertised as being carried on, for the purpose of inspection and for the
investigation of complaints coming before the board and for such other
matters as the board may direct.
5. Scheid’s primary responsibility as a Mortuary Inspector was to perform field
inspections to determine compliance with the laws, rules and regulations regarding
funeral homes.
6. Scheid’s specific duties as a Mortuary Inspector are detailed in the position
description as follows:
a. Work involves traveling to inspection sites in a geographic area of the state
to conduct periodic inspections of all funeral homes by observation and
interviews, noting any deviation from established standards, and preparing
inspection reports to communicate findings.
b. Conducts new license, routine, follow-up, directed, etc. inspections of
licenses.
c. Conducts physical inspections of funeral homes for possession and proper
display of licensure documents, current renewals, possession of required
equipment, materials, devices, reference books, etc., adherence to
established requirements for licensure, adherence to the laws, rules and
regulations of the Commonwealth and the Funeral Board.
d. Prepares required reports completely and accurately relating findings of any
given inspection.
e. Issues citations when appropriate violations are found in accordance with
the Act 48 Citation Program.
Fennell Scheid, 12-031
Page 3
f. Required to keep confidential the identities and locations of interviewees and
evidence obtained in executing duties.
g. Understands the importance of the department’s Vision, Mission Statement
and Strategic Goals and ensures their integration into all program functions
and daily activities providing results driven performance.
h. Understands and communicates the importance of the Agency’s Customer
Service standards, values, expectations and measures, to ensure that these
are met in their interactions with internal and external customers and
stakeholders.
i. Contacts persons to make appointments and for other work related matters.
j. Reads, understands, and remembers all the laws, rules and regulations of
the funeral profession and Board, Bureau and Department as \[applicable\] to
their position to be able to properly perform their duties.
k. Attends training sessions to maintain and expand their knowledge and skills.
l. Keeps supervisor aware of their activities by discussing their projected tasks
and locations for any given time frame.
m. Testifies at formal and informal hearings and appears as a witness for the
State in formal judicial proceedings.
n. Travels to and from work sites as necessary.
o. Augments investigative team as necessary on selected investigations.
p. May be required to operate general office equipment including, but not
limited to, computers, calculators, Dictaphones, transcribers, copiers and
faxes.
q. Performs related duties as required and directed.
7. Scheid has been a Pennsylvania licensed Funeral Director since August 23, 1995.
a. Scheid received a diploma in Funeral Directing from the Pittsburgh Institute
of Mortuary Science in May 1994.
b. Scheid currently holds a valid/active Funeral Director license issued by the
Pennsylvania Department of State.
8. Scheid owned and operated the Scheid Funeral Home in Millersville, Pennsylvania
along with Andrew Scheid, her husband at the time, from around October 1995 until
around June 2005.
9. Scheid also served as a Funeral Director at the Rohland Funeral Home, Inc.,
Lebanon, Pennsylvania from around April 2007 until February 2009.
10. Scheid began employment as a Civil Service employee with the Pennsylvania
Department of State as a Mortuary Inspector on September 8, 2009.
a. Scheid was assigned to the Harrisburg Regional Office of the Bureau of
Enforcement and Investigation.
Fennell Scheid, 12-031
Page 4
1. The Harrisburg Region consists of 19 counties and includes the City
of Lebanon.
b. In the position of Mortuary Inspector, Scheid was annually required to file a
Statement of Financial Interests form.
11. As a Mortuary Inspector with the Pennsylvania Department of State, Scheid was
required to possess a current and valid license as a Funeral Director.
12. The Investigative Division maintains that during Scheid’s term of employment as a
Mortuary Inspector with the Pennsylvania Department of State, Bureau of
Enforcement and Investigation, an unwritten policy existed that Mortuary Inspectors
were not authorized to have a Funeral Director’s license displayed at other funeral
homes nor were they permitted to serve as a Funeral Director at any other funeral
home, but their licenses were to be kept at the offices of the Pennsylvania
Department of State in Harrisburg, Pennsylvania.
a. The Investigative Division further maintains that this policy was verbally
relayed to inspectors, including Scheid, during an inspector’s orientation.
b. Scheid maintains that this unwritten policy was not verbally relayed to her
during orientation.
13. In or about 2008, prior to being hired as a Mortuary Inspector, Scheid had
discussions with two Lebanon County Funeral Directors, James Ruffner and James
Porterfield, about the possibility of opening a funeral home in the Lebanon area.
14. James Ruffner has been a licensed Funeral Director in the state of Pennsylvania
since about 1972.
a. Ruffner owned and operated the Taylor Ruffner Funeral Home Inc. (“TRFH”),
712 Chestnut Street, Lebanon, Pennsylvania from around 1972 until 2010.
15. James Porterfield was employed as a Funeral Director and Supervisor at the
Rohland Funeral Home Inc. (“RFH”) in Lebanon, Pennsylvania from around 1972
through May 30, 2010.
a. While working at the RFH, Porterfield became acquainted with Melanie
Scheid, who worked at the RFH from 2007 through 2009.
16. In or around the later part of 2008, Ruffner, Porterfield and Scheid discussed the
possibility of going into business together and building a new larger funeral home.
a. Scheid had the most collateral available to secure funding for the building of
a new funeral home and the most experience in opening a new funeral
home.
17. In February 2009, Scheid left her employment at RFH and began employment at
Dean Foods, in a non-Funeral Director capacity.
a. The Funeral Director Law requires a Funeral Director license to be displayed
at a funeral home.
1. In order to maintain her Funeral Director license, Scheid had her
Funeral Director license transferred to the TRFH.
Fennell Scheid, 12-031
Page 5
b. At no time did Scheid hold any financial interest in the TRFH or receive any
income from the funeral home.
18. On December 18, 2009, TRFH entered into a lease agreement with William and
Nancy Smeltzer for property owned by the Smeltzers for the purpose of building a
funeral home.
a. The Smeltzers owned property at 890 Isabel Drive, North Cornwall
Township, Lebanon County, Pennsylvania and agreed to lease it to the
TRFH for use as a funeral home and crematory beginning no later than
December 31, 2010, for a period of five years.
1. The agreement provided for rent of $180,000.00 for the first year to
be paid in equal installments of $15,000.00 per month, and beginning
in the second year, the amount of the rent would be adjusted to reflect
a change in the consumer price index.
2. As part of the lease agreement, construction improvements would be
made to the property provided by the tenant, TRFH, with the approval
of the landlord, the Smeltzers.
3. The lease was signed by William and Nancy Smeltzer as the landlord
and the TRFH as the tenant.
4. Melanie Scheid, James Ruffner, Carol Ruffner, and James Porterfield
signed a Guaranty and Suretyship Agreement guaranteeing the
payment of the amounts due under the lease between the Smeltzers
and TRFH.
19. Sometime after December 18, 2009, TRFH initiated construction of a funeral home
at 890 Isabel Drive, Lebanon, Pennsylvania.
20. In 2010, when construction of the funeral home was ongoing, Scheid, as a Mortuary
Inspector, was performing inspections of funeral homes in the Harrisburg Region.
a. This included conducting inspections of funeral homes in and around the
Lebanon area.
21. On June 2, 2010, Scheid, as a Mortuary Inspector, conducted an inspection of the
TRFH facility located at 712 Chestnut Street, Lebanon, Pennsylvania.
a. At the time, Scheid’s funeral license was on display at TRFH, and Scheid
was one of the guarantors of TRFH’s lease of the property where the new
funeral home was to be constructed.
22. In 2010, while the funeral home was under construction, Scheid was the primary
point of contact for the contractors.
23. On July 12, 2010, Timothy Huber, Esquire sent a letter to James and Carol Ruffner,
Melanie Scheid and James Porterfield regarding the Taylor Ruffner Funeral Home,
Inc. and Melanie Scheid’s interest in the new funeral home, which included
comments relating to a potential conflict between Scheid’s Mortuary Inspector
position and her interest in the new funeral home:
On the issue of Melanie’s potential conflict of interest, I did review the materials that
she emailed to me. I am concerned enough to believe that there is a genuine issue
regarding what role, if any, Melanie can take in the enterprises we have discussed.
Fennell Scheid, 12-031
Page 6
Melanie, I do not believe I can advise you since I do not represent you. I think you
need to take this data and get some legal advice from an attorney of your choosing
as to what role, if any, you can take in these enterprises if you are still employed by
the Commonwealth.
24. Attorney Huber’s letter of July 12, 2010, regarding Scheid’s conflict was in response
to an email sent by Melanie Scheid from Scheid’s Commonwealth email address
\[email address redacted\], on July 1, 2010, at 7:27 p.m. to Huber.
a. The subject of the email was the Department of State Conflict of Interest
Protocol.
b. The email was marked high importance.
c. The email noted as follows:
Tim:
Please do not respond to this email. My personal email is \[email address
redacted\]
Thanks
Melanie Scheid.
d. An attachment to Scheid’s email to Huber was a memorandum dated
January 29, 2010, from Pennsylvania Department of State Secretary Pedro
A. Cortes addressed to all Department of State Public Officials and
Employees regarding the Department of State Conflict of Interest Protocol.
25. Cortes’ memorandum included Section III: Conflict of Interest Recusal and
Designation of Authority and provided the following:
In the event of a conflict of interest, the agency official or employee for whom the
conflict arises must not personally be involved in any agency activities associated
with the person or entity that gives rise to the conflict. These activities include, but
are not limited \[sic\]:
• Negotiating or making any decisions related to contracts, grant
applications, licenses, regulatory matters, audits or the settlement of
any claims or charges with respect to such matters;
• Supervising, implementing or administering contracts or grants;
• Granting subsidies, fixing rates or issuing permits, certificates,
guarantees or other things of value.
When a conflict of interest arises in matters involving multiple persons and/or
entities competing for the same limited benefit (e.g., grants, contracts or licenses),
the agency official or employee for whom the conflict arises must recuse himself or
herself from taking action with respect to the matter as soon as the conflict becomes
known to the agency official or employee and thereafter, must not be personally
involved in any aspect of the negotiation process or decision-making processes
respecting any of the persons or entities who are competing for the same benefit.
The agency official or employee must have no access to confidential and non-public
information concerning the matter.
Immediately upon recusal, authority to perform the agency official or employee’s
duties with regard to the matter for which a conflict exists shall be designated to the
Fennell Scheid, 12-031
Page 7
individuals set forth in Section IV, below. The designee shall have full authority to
act in place of the conflicted agency official or employee and to perform all official
duties that are affected by the conflict. The designee shall carry out those duties
without sharing any information with the conflicted person’s involvement.
26. Scheid, Porterfield and Ruffner retained the services of Kevin Richards, Esquire to
file Articles of Incorporation for the funeral home.
27. Richards filed Articles of Incorporation for the new funeral home with the
Corporation Bureau of the Pennsylvania Department of State on August 5, 2010.
a. The name of the funeral home was identified as Ruffner-Porterfield Funeral
Directors & Cremation Services, Ltd.
b. The names of the incorporators were James Ruffner and James Porterfield.
c. The corporation was a restricted business corporation and would engage in
no other business activity other than that of funeral directing.
d. James Ruffner, James Porterfield and Melanie Scheid were all provided with
copies of the Articles of Incorporation by Richards.
28. On September 14, 2010, James Porterfield submitted an application for a Restricted
Business Corporation Funeral Establishment to the State Board of Funeral
Directors for the Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd.
a. Porterfield listed the Funeral Directors working at the funeral establishment,
including Melanie Scheid, James Porterfield, James Ruffner and Craig Allen
Moyer.
b. Porterfield identified the shareholders of the funeral home as James
Porterfield and James Ruffner.
c. Porterfield noted on his application that the funeral home was ready for
inspection.
29. Between September 14, 2010, and September 24, 2010, Scheid was assigned to
conduct an inspection of the Ruffner-Porterfield funeral home.
a. The assignment was emailed to Scheid by her supervisor, Angel Placares,
as a priority inspection to be completed as soon as possible.
b. Scheid was given this assignment due to the location in Lebanon County.
c. Scheid never informed her supervisors of her affiliation with Ruffner-
Porterfield, prior to conducting the inspection.
30. On September 24, 2010, Scheid, in her capacity as a Mortuary Inspector,
conducted a New Business Inspection for the Ruffner-Porterfield Funeral Directors
& Cremation Services, Ltd.
31. Scheid’s funeral home inspection of the Ruffner-Porterfield Funeral Directors &
Cremation Services, Ltd. took 3.15 hours to complete.
a. Scheid determined that the funeral home was compliant and gave the funeral
home a passing inspection.
Fennell Scheid, 12-031
Page 8
1. However, Scheid documented that the funeral home needed to
complete a formaldehyde test as soon as possible for its preparation
room and to display the results in the preparation room.
b. Scheid’s inspection enabled Ruffner-Porterfield to immediately begin
operations as a funeral home, pending final approval by the State Board of
Funeral Directors.
32. Ruffner-Porterfield Funeral Directors & Cremations Services, Ltd. began operations
as a funeral home on September 25, 2010, one day after the funeral home
inspection performed by Melanie Scheid.
33. On October 29, 2010, Attorney Richards filed IRS Form 2553 on behalf of the
Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. listing the
shareholders and the percentage of ownership in the business corporation and the
date it was acquired as follows:
Name Percentage of Ownership Date Acquired
Melanie Scheid 33.33% 8/24/2010
James Porterfield 33.33% 8/24/2010
James Ruffner 33.33% 8/24/2010
34. Scheid conducted a funeral home inspection of the Ruffner-Porterfield Funeral
Directors & Cremation Services, Ltd. at the time when she held a 33.33% ownership
interest in the facility.
35. On November 4, 2010, Scheid submitted supplemental employment requests to the
Department of State for the following:
a. Continue operating the Subway store.
1. Scheid has been the owner of a Subway franchise store in Lancaster,
Pennsylvania since around March 2004.
b. Obtain a real estate license.
c. Life and annuities agent.
d. Notary commission.
e. Funeral Director license displayed at the Ruffner-Porterfield Funeral
Directors & Cremations Services, Ltd. Scheid noted she did not work there.
f. Scheid did not receive a response to this request until October 5, 2011.
36. In early October 2011, Scheid inquired of Regional Director Pamela Roberts
regarding the status of her supplemental employment requests.
a. On October 5, 2011, Scheid received a response from Patrick Striggle,
Human Resource Director with the Pennsylvania Department of State,
regarding her supplemental employment requests of November 4, 2010.
Fennell Scheid, 12-031
Page 9
1. Scheid’s requests for operating the Subway franchise and serving as
a life and annuities agent were approved, but her requests to have a
real estate license and notary commission were denied.
b. The response included the following regarding having her Funeral Director
license displayed at the Ruffner-Porterfield funeral home:
This request is disapproved because of a conflict of interest. Although you
indicate that you do not work for Ruffner-Porterfield, you state that your
Funeral Director’s license is displayed in this funeral home. You may not
hold a license issued by the Department of State and be employed as an
inspector by the Department of State and be employed as an inspector by
the Department of State \[sic\] without creating the appearance of impropriety.
In your current position, you perform inspections of funeral homes located in
the Harrisburg region. This region covers a large geographical area. This
position for which you seek the supplementary employment is located within
the Harrisburg region and your duties for the Department would involve
inspections of that particular funeral home as well as it\[s\] competitors.
Approval of this request could result in the use of confidential information
gained through your position at the Department in the course of your
supplementary employment, would compromise the integrity of the
inspection process, and would jeopardize the public safety role of the
Bureau of Professional and Occupational Affairs. Your license must reflect
the Bureau of Enforcement and Investigation as your employer and it must
be stored at the regional office.
c. Scheid maintains that this was the first time she was informed that her
Funeral Director license must be displayed at the regional office of the
Department of State in Harrisburg, rather than at a funeral home as required
by the Funeral Director Law.
1. Scheid immediately contacted the State Board of Funeral Directors
and had her Funeral Director license transferred to the Department of
State.
37. In or around November 2010, at the time when Scheid was \[submitting\]
supplemental employment requests, the Bureau of Enforcement and Investigation of
the Pennsylvania Department of State received complaints that Scheid had
conducted inspections of funeral homes that she had helped to open, used her
Commonwealth-issued laptop to create marketing materials for Ruffner-Porterfield,
and also used the laptop for personal work related to being the owner/franchisee of
a Subway restaurant.
38. A fact finding meeting conducted by the Bureau of Enforcement and Investigation
on November 8, 2010, concluded that Scheid used a Commonwealth laptop for
marketing activities of Ruffner-Porterfield funeral home and participated in the
opening of this funeral home. When asked about a possible conflict between her
Commonwealth position and the funeral home, Scheid responded to the effect of:
Q: Why did you assist with the opening of this funeral home when such
involvement is a conflict of interest with respect to your Mortuary Inspector
position with the Commonwealth?
A: It was after hours and they are personal friends of mine.
Q: We have evidence that you conducted a new business inspection of Ruffner-
Porterfield Funeral Home and Cremation Services on September 24, 2010.
Fennell Scheid, 12-031
Page 10
Why did you conduct a new business inspection of a funeral home that you
recently helped to open, when such action poses a conflict of interest?
A: I didn’t feel I was doing any wrong. I did the same inspection as I would do
for any other funeral home. Anyone can walk in at any time.
39. On November 12, 2010, Scheid received a written reprimand from Angel Placeres,
Regulatory Enforcement Inspector Supervisor for the Pennsylvania Department of
State.
a. Scheid received the written reprimand following a fact-finding interview
conducted on November 10, 2010, which found that Scheid was in violation
of Management Directive 205.34, Amended, Commonwealth of Pennsylvania
Information Technology Acceptable Use Policy when she used a
Commonwealth-issued laptop computer to engage in personal transactions
or business related to her non-Commonwealth employment and when the
same was utilized to create marketing materials for Ruffner-Porterfield
Funeral Directors & Cremation Services, Ltd.
1. It was also found that Scheid’s actions were in violation of Code of
Conduct Executive Order 1980-18 Amended when she assisted in the
opening of Ruffner-Porterfield Funeral Directors & Cremation
Services, Ltd. and subsequently completed a new business
inspection of this funeral home, posing a conflict of interest with
respect to her Mortuary Inspector position at the Department of State.
40. During the fact finding of November 10, 2010, Scheid did not acknowledge/disclose
that she had a 33.33% ownership of Ruffner-Porterfield Funeral Directors &
Cremation Services, Ltd. as of August 24, 2010.
41. After receiving the written reprimand, Scheid continued to be involved in the
development of the Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd.
42. Scheid sent an email on December 23, 2010, to both James Porterfield and James
and Carol Ruffner, discussing the need to execute a buy/sell agreement by the end
of the calendar year, and her plans to resign from state employment in April of
2011.
43. On March 9, 2011, a Stock Redemption Agreement was entered into by which
Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. purchased the
shares of stock in the company held by James and Carol Ruffner.
a. Melanie Scheid signed the agreement as the President of the Ruffner-
Porterfield Funeral Directors & Cremation Services, Ltd.
44. On April 7, 2011, an addendum was made to the lease agreement that was entered
into on December 18, 2009, between William and Nancy Smeltzer as the landlords
and the TRFH, prior tenant and the Ruffner-Porterfield Funeral Directors &
Cremation Services, Ltd., current tenant.
a. James and Carol Ruffner were departing Guarantors and Melanie Scheid
and James Porterfield were the remaining Guarantors.
45. Since April 7, 2011, Scheid and James Porterfield both have held a 50% ownership
in Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd.
Fennell Scheid, 12-031
Page 11
46. The Bureau of Enforcement and Investigation received inquiries alleging a conflict
due to Scheid’s affiliation with Ruffner-Porterfield Funeral Directors & Cremation
Services, Ltd. and began a review of Scheid’s activities in February 2012.
a. Allegations as to a conflict of interest regarding Scheid’s ownership interest
in Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. and her
Commonwealth employment were then forwarded by the Pennsylvania
Department of State to the Office of Inspector General (“OIG”),
Commonwealth of Pennsylvania in March 2012.
47. During the course of OIG’s investigation, Melanie Scheid was interviewed by OIG
Investigators on May 15, 2012.
a. Scheid resigned as a Mortuary Inspector effective May 17, 2012.
48. On May 17, 2012, Articles of Amendment for the Ruffner-Porterfield Funeral
Directors & Cremation Services, Ltd. confirm the name was changed to Porterfield-
Scheid Funeral Directors & Cremation Services, Ltd. on May 23, 2012.
49. Scheid’s passing inspection of the funeral home enabled Ruffner-Porterfield
Funeral Directors & Cremation Services, Ltd. to begin operations on September 25,
2010.
a. The Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. was
able to operate as a funeral home based upon the inspection conducted by
Melanie Scheid as a Mortuary Inspector on September 24, 2010.
1. No evidence exists to suggest that Ruffner-Porterfield Funeral
Directors & Cremation Services, Ltd. did not meet the requirements
necessary for licensure as of September 24, 2010.
b. Scheid was a 33.33% partner of the funeral home in 2010, at the time she
conducted the inspection.
50. IRS Form 1120S for U.S. Income Tax Return for an S Corporation for the Ruffner-
Porterfield Funeral Directors & Cremation Services, Ltd. confirmed the following
income for the corporation in 2010 and 2011:
YEAR AMOUNT
2010 $86,831
2011 $342,890
a. The income for 2010 was for the period between September 25, 2010, and
December 31, 2010.
b. Melanie Scheid was paid $1,129 as a shareholder of the funeral home in
2010.
c. Melanie Scheid received a benefit of $6,431 as a shareholder in 2011.
51. Scheid, in her capacity as a Mortuary Inspector with the Bureau of Enforcement and
Investigation of the Department of State, was annually required to file a Statement
of Financial Interests (“SFI”) form \[by May 1, containing\] information for the prior
calendar year.
52. Statements of Financial Interests on file with the Department of State include the
following filings by Scheid covering the calendar years 2009 through 2012:
Fennell Scheid, 12-031
Page 12
a. Calendar Year: 2009
Filed: Form electronically submitted by Melanie
B. Fennell Scheid (00667667) on 3/18/
2010 1:55:15 p.m. on SEC-1 REV.01/10
Public Position: Mortuary Insp.
Governmental Entity: State
Occupation: Mortuary Inspection
Real Estate Interests: None
Creditors: Kia Motors, Harrisburg, PA 0.00 %
NBRS, Rising Sun, MD 7.50 %
Direct or Indirect Sources of
Income: State, 2601 N. 3rd St.
Harrisburg, PA 17110
Andrew T. Scheid- Spousal Support
1308 Veradah Way
Lancaster, PA 17602
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: Dean Foods
Lebanon, PA 17042
Customer Service Rep.
Rohland Funeral Home, Inc.
Lebanon, PA 17042
Funeral Director
Financial Interest in Any Legal
Entity in Business for Profit: None
Business Interest Transferred to
Immediate Family Member: None
b. Calendar Year: 2010
Filed: Form electronically submitted by Melanie
B. Fennell Scheid (00667667) on 4/28/11
7:45:19 a.m. on SEC-1 REV.01/11
Public Position: Mortuary Inspector
Governmental Entity: State
Fennell Scheid, 12-031
Page 13
Occupation: Mortuary Inspection
Real Estate Interests: None
Creditors: Kia Motors, Harrisburg, PA 0.00 %
NBRS, Rising Sun, MD 7.50 %
Chase Credit Card, 13.49%
Direct or Indirect Sources of
Income: State, 2601 N. 3rd St.
Harrisburg, PA 17110
Caroline Lechner
2207 Temple Ave., Lancaster, PA 17063
Roberto Ocasio
2209 Temple Ave., Lancaster, PA 17603
Chad & Megan Keller
28 Nursery Lane, Lancaster, PA 17063
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: Oskar Otto, Ltd.
1384 Columbia Ave.
Lancaster, PA 17063
Owner, Subway Franchise
Financial Interest in Any Legal
Entity in Business for Profit: Oskar Otto, Ltd.
1384 Columbia Ave.
Lancaster, PA 17063
Interest held: 100 % ownership
Business Interest Transferred to
Immediate Family Member: None
c. Calendar Year: 2011
Filed: Form electronically submitted by Melanie
B. Fennell Scheid (00667667) on 4/2/12
11:16:29 a.m. on SEC-1 REV.01/12
Public Position: Mortuary Insp.
Governmental Entity: State
Occupation: Mortuary Inspection
Real Estate Interests: None
Fennell Scheid, 12-031
Page 14
Creditors: Kia Motors, Harrisburg, PA 0.00 %
Chase Credit Card, 13.49%
Funeral Service Credit Union
Springfield, Illinois, 5.49%
Direct or Indirect Sources of
Income: State, 2601 N. 3rd St.
Harrisburg, PA 17110
Rental Income
Various in Lancaster County
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: Oskar Otto, Ltd.
1384 Columbia Ave.
Lancaster, PA 17063
Owner, Subway Franchise
Financial Interest in Any Legal
Entity in Business for Profit: Oskar Otto, Ltd.
1384 Columbia Ave.
Lancaster, PA 17063
Interest held: 100 % ownership
Business Interest Transferred to
Immediate Family Member: None
d. Calendar Year: 2012
Filed: Form electronically submitted by Melanie
B. Fennell Scheid (00667667) on
5/13/2013 7:45:19 a.m. on SEC-1
REV.01/13
Public Position: Mortuary Insp.
Governmental Entity: State
Occupation: Mortuary Inspector
Real Estate Interests: None
Creditors: Chase Credit Card, 13.49%
Funeral Service Credit Union, 5.49%
Barclay, 24.99 %
Fennell Scheid, 12-031
Page 15
Direct or Indirect Sources of
Income: State
Homsteaders Life Insurance Company
Des Moines, Iowa
Dean Foods
Dallas, Texas
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: Oskar Otto, Ltd.
1384 Columbia Ave.
Lancaster, PA 17063
Owner, Subway Franchise
Porterfield-Scheid Funeral Directors and
Cremation Services, Ltd.
890 Isabel Drive
Lebanon, PA 17042
President
Financial Interest in Any Legal
Entity in Business for Profit: Oskar Otto, Ltd.
1384 Columbia Ave.
Lancaster, PA 17063
Interest held: 100 % ownership
Porterfield-Scheid Funeral Directors &
Cremation Services, Ltd.
890 Isabel Drive
Lebanon, PA 17042
Interest Held: 50%
Business Interest Transferred to
Immediate Family Member: None
53. Scheid failed to disclose her financial interest in Ruffner-Porterfield Funeral
Directors & Cremation Services, Ltd., a business for profit, on Statements of
Financial Interests she filed for calendar years 2010 and 2011.
a. Scheid held a 33% \[financial interest\] in the funeral home for calendar year
2010 and a 50% \[financial interest\] in the funeral home for the 2011 calendar
year.
b. Scheid identified the interest she held in Porterfield-Scheid Funeral Directors
& Cremation Services, Ltd. on her SFI for calendar year 2012 filed on May
13, 2013.
1. Scheid made this disclosure after being notified by the Investigative
Division of the State Ethics Commission of the instant allegations.
Fennell Scheid, 12-031
Page 16
54. Scheid did not disclose her office, directorship or employment in Ruffner-Porterfield
Funeral Directors & Cremation Services, Ltd. on Statements of Financial Interests
she filed for the 2010 and 2011 calendar years.
55. Scheid’s neglect to disclose her interests in Ruffner-Porterfield Funeral Directors &
Cremation Services, Ltd., concealed her affiliation with Ruffner-Porterfield Funeral
Directors & Cremation Services, Ltd.
56. Melanie Scheid, in her position as a Mortuary Inspector, realized a private
pecuniary benefit of $7,560.00 as a result of the September 24, 2010 funeral home
inspection that she conducted of the Ruffner-Porterfield Funeral Directors &
Cremation Services, Ltd., in which Scheid held a 33.33% interest.
a. Income from funeral home 2010, 2011 = $7,560.00.
III.DISCUSSION:
As a Mortuary Inspector with the Bureau of Enforcement and Investigation of the
Pennsylvania Department of State from September 8, 2009, until May 17, 2012,
Respondent Melanie B. Fennell Scheid, hereinafter also referred to as “Respondent,”
“Respondent Scheid,” and “Scheid,” was a public employeesubject to the provisions of the
Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
The allegations are that Scheid violated Sections 1103(a), 1105(b)(5), and
1105(b)(8) of the Ethics Act: (1) when she used the authority of her public position for the
private pecuniary benefit of herself and/or a business with which she is associated by
completing an inspection of the Ruffner-Porterfield Funeral Directors & Cremation
Services, Ltd., enabling that entity to operate as a funeral home at a time when she was a
part-owner of the company; and (2) when she failed to disclose on Statements of Financial
Interests (“SFIs”) for the 2010 and 2011 calendar years her office, directorship and/or
employment in the Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. and all
direct/indirect sources of income in excess of $1,300.
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
Fennell Scheid, 12-031
Page 17
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 SFI form must provide.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address
of any direct or indirect source of income totaling in the aggregate $1,300 or more.
Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any
office, directorship or employment in any business entity.
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 Funeral Director Law, 63 P.S. §§ 479.1-479.20, regulates the licensure and
registration of persons and registration of corporations engaging in the care, preparation
and disposition of the bodies of deceased persons. Scheid has been a Pennsylvania-
licensed Funeral Director since August 23, 1995. From around October 1995 until around
June 2005, Scheid owned and operated the Scheid Funeral Home in Millersville,
Pennsylvania along with Andrew Scheid, her husband at the time. Scheid also served as a
Funeral Director at the Rohland Funeral Home, Inc. (“Rohland”), in Lebanon, Pennsylvania
from around April 2007 until February 2009.
In or around the later part of 2008, Scheid had discussions with two Lebanon
County Funeral Directors, James Ruffner (“Ruffner”) and James Porterfield (“Porterfield”),
about the possibility of going into business together and opening a new, larger funeral
home in the Lebanon area. At that time, Ruffner owned and operated the Taylor Ruffner
Funeral Home Inc. (“Taylor Ruffner”) in Lebanon, Pennsylvania, and Porterfield was
employed as a Funeral Director and Supervisor at Rohland. Scheid had the most
collateral available to secure funding for the building of a new funeral home and the most
experience in opening a new funeral home.
In February 2009, Scheid left her employment at Rohland and began employment at
Dean Foods in a non-Funeral Director capacity. The Funeral Director Law requires a
Funeral Director license to be displayed at a funeral home. In order to maintain her
Funeral Director license, Scheid had her Funeral Director license transferred to Taylor
Ruffner. At no time did Scheid hold any financial interest in or receive any income from
Taylor Ruffner.
Scheid began employment as a Mortuary Inspector with the Bureau of Enforcement
and Investigation (“Bureau”) of the Pennsylvania Department of State (“Department of
State”) on September 8, 2009. In the aforesaid capacity, Scheid was assigned to the State
Board of Funeral Directors of the Department of State. As a Mortuary Inspector, Scheid
was required to possess a current and valid license as a Funeral Director, and her primary
Fennell Scheid, 12-031
Page 18
responsibility was to perform field inspections of funeral homes to determine compliance
with the laws, rules and regulations regarding funeral homes.
On December 18, 2009, Taylor Ruffner entered into a lease agreement with William
and Nancy Smeltzer (“the Smeltzers”) for property (“the Property”) that they owned at 890
Isabel Drive, North Cornwall Township, Lebanon County, Pennsylvania. The Smeltzers
agreed to lease the Property to Taylor Ruffner for use as a funeral home and crematory
beginning no later than December 31, 2010, for a period of five years. As part of the lease
agreement, Taylor Ruffner would make construction improvements to the Property with the
approval of the Smeltzers. Scheid, Porterfield, Ruffner, and Carol Ruffner signed a
Guaranty and Suretyship Agreement guaranteeing the payment of the amounts due under
the lease between the Smeltzers and Taylor Ruffner. Sometime after December 18, 2009,
Taylor Ruffner initiated construction of a funeral home at the Property. In 2010, while the
funeral home was under construction, Scheid was the primary point of contact for the
contractors.
As a Mortuary Inspector, Scheid was assigned to the Harrisburg Regional Office of
the Bureau. The Harrisburg Region consists of 19 counties and includes the City of
Lebanon. In 2010, when construction of the funeral home at the Property was ongoing,
Scheid was performing inspections of funeral homes in the Harrisburg Region, including
funeral homes in and around the Lebanon area. On June 2, 2010, Scheid conducted an
inspection of the Taylor Ruffner facility located at 712 Chestnut Street, Lebanon,
Pennsylvania. At the time, Scheid’s Funeral Director license was on display at Taylor
Ruffner, and Scheid was one of the guarantors of the lease of the Property.
On July 1, 2010, Scheid sent an email from her Commonwealth email address to
Timothy Huber, Esquire (“Huber”) on the subject of the Department of State Conflict of
Interest Protocol. In response to Scheid’s email, on July 12, 2010, Huber sent a letter to
Scheid, Porterfield, Ruffner, and Carol Ruffner regarding Taylor Ruffner and Scheid’s
interest in the new funeral home. Huber’s letter included comments relating to a potential
conflict between Scheid’s Mortuary Inspector position and her interest in the new funeral
home and suggested that Scheid obtain legal advice from an attorney of her choosing on
the issue.
On August 5, 2010, Kevin Richards, Esquire (“Richards”) filed Articles of
Incorporation for the new funeral home with the Corporation Bureau of the Department of
State. The name of the new funeral home was “Ruffner-Porterfield Funeral Directors &
Cremation Services, Ltd.” (“Ruffner-Porterfield”), and the names of the incorporators were
James Ruffner and James Porterfield. Richards provided Ruffner, Porterfield, and Scheid
with copies of the Articles of Incorporation.
On September 14, 2010, Porterfield submitted an application to the State Board of
Funeral Directors for a Restricted Business Corporation Funeral Establishment for Ruffner-
Porterfield. The shareholders of Ruffner-Porterfield were identified as Ruffner and
Porterfield, and the list of Funeral Directors working at Ruffner-Porterfield included
Ruffner, Porterfield, Scheid, and Craig Allen Moyer. Porterfield noted on the application
that Ruffner-Porterfield was ready for inspection.
Between September 14, 2010, and September 24, 2010, Scheid was assigned to
conduct an inspection of Ruffner-Porterfield due to its location in Lebanon County. The
assignment was emailed to Scheid by her supervisor as a priority inspection to be
completed as soon as possible. Scheid never informed her supervisors of her affiliation
with Ruffner-Porterfield prior to conducting the inspection.
Scheid, in her capacity as a Mortuary Inspector, conducted a New Business
Inspection for Ruffner-Porterfield on September 24, 2010. The inspection performed by
Scheid took 3.15 hours to complete. Scheid determined that Ruffner-Porterfield was
Fennell Scheid, 12-031
Page 19
compliant, and she gave it a passing inspection. However, Scheid documented that
Ruffner-Porterfield needed to complete a formaldehyde test as soon as possible for its
preparation room and to display the results in the preparation room. Scheid’s passing
inspection enabled Ruffner-Porterfield to immediately begin operations as a funeral home
pending final approval by the State Board of Funeral Directors. Ruffner-Porterfield began
operations as a funeral home on September 25, 2010, one day after Scheid’s inspection.
An IRS Form 2553 filed on behalf of Ruffner-Porterfield on October 29, 2010, listed
Scheid, Ruffner, and Porterfield as the shareholders of Ruffner-Porterfield, with each
shareholder having acquired a 33.33% ownership in the business corporation on August
24, 2010. Scheid held such ownership interest at the time she conducted her inspection of
Ruffner-Porterfield on September 24, 2010.
On November 4, 2010, Scheid submitted supplemental employment requests to the
Department of State related to various matters including, in pertinent part, the display of
her Funeral Director license at Ruffner-Porterfield. Scheid noted that she did not work at
Ruffner-Porterfield. On October 5, 2011, Scheid received a response from Patrick Striggle
(“Striggle”), Human Resource Director with the Department of State, which disapproved
Scheid’s supplemental employment request regarding the display of her Funeral Director
license at Ruffner-Porterfield on the basis of a conflict of interest. Striggle informed Scheid
that she could not hold a Funeral Director license issued by the Department of State and
be employed as a Mortuary Inspector by the Department of State without creating the
appearance of impropriety. Striggle noted that Scheid’s duties for the Department of State
would involve inspections of Ruffner-Porterfield as well as its competitors, and he stated
that approval of Scheid’s supplemental employment request would compromise the
integrity of the inspection process. Striggle informed Scheid that her Funeral Director
license must reflect the Bureau as her employer and must be stored at the regional office.
Scheid immediately contacted the State Board of Funeral Directors and had her Funeral
Director license transferred to the Department of State.
In or around November 2010, the Bureau received complaints that Scheid had
conducted inspections of funeral homes which she had helped to open. The Bureau also
received complaints that Scheid had used her Commonwealth-issued laptop to create
marketing materials for Ruffner-Porterfield and to do personal work related to Scheid being
the owner/franchisee of a Subway restaurant.
On November 12, 2010, Scheid received a written reprimand from Angel Placeres,
Regulatory Enforcement Inspector Supervisor for the Department of State. The written
reprimand following a fact-finding interview conducted on November 10, 2010, which
found: (1) that Scheid was in violation of Management Directive 205.34, Amended,
Commonwealth of Pennsylvania Information Technology Acceptable Use Policy, when she
used a Commonwealth-issued laptop computer to engage in personal transactions or
business related to her non-Commonwealth employment and when the same was utilized
to create marketing materials for Ruffner-Porterfield; and (2) that Scheid’s actions were in
violation of Code of Conduct Executive Order 1980-18 Amended when she assisted in the
opening of Ruffner-Porterfield and subsequently completed a new business inspection of
Ruffner-Porterfield, posing a conflict of interest with respect to her Mortuary Inspector
position at the Department of State.
During the fact finding interview of November 10, 2010, Scheid did not acknowledge
or disclose that she had a 33.33% ownership interest in Ruffner-Porterfield as of August
24, 2010. After receiving the written reprimand, Scheid continued to be involved in the
development of Ruffner-Porterfield.
On December 23, 2010, Scheid sent an email to Porterfield, Ruffner, and Carol
Ruffner that discussed the need to execute a buy/sell agreement by the end of the
calendar year and Scheid’s plans to resign from state employment in April 2011. Pursuant
Fennell Scheid, 12-031
Page 20
to a Stock Redemption Agreement entered into on March 9, 2011, Ruffner-Porterfield
purchased the shares of company stock held by Ruffner and Carol Ruffner. Scheid signed
the Stock Redemption Agreement as the President of Ruffner-Porterfield. Since April 7,
2011, Scheid and Porterfield have each held a 50% ownership interest in Ruffner-
Porterfield.
In February 2012, the Bureau began a review of Scheid’s activities as a result of
receiving allegations regarding a conflict of interest due to her affiliation with Ruffner-
Porterfield. The Department of State forwarded such allegations to the Pennsylvania
Office of Inspector General (“OIG”) in March 2012. Scheid was interviewed by OIG
investigators on May 15, 2012, and she resigned from her position as a Mortuary Inspector
effective May 17, 2012. Within one week of Scheid’s resignation from Commonwealth
employment as a Mortuary Inspector, the name of Ruffner-Porterfield had been changed to
“Porterfield-Scheid Funeral Directors & Cremation Services, Ltd.”
Scheid, as a shareholder of Ruffner-Porterfield, received income from the business
in the amounts of $1,129.00 in 2010 and $6,431.00 in 2011. The parties have stipulated
that Scheid realized a private pecuniary benefit of $7,560.00 as a result of her inspection
of Ruffner-Porterfield on September 24, 2010.
Scheid, in her capacity as a Mortuary Inspector, was required to annually file an SFI
form by May 1 containing information for the prior calendar year. The parties have
stipulated that Scheid did not disclose her office, directorship or employment in Ruffner-
Porterfield on her SFIs for calendar years 2010 and 2011. Although Scheid received
income in the amount of $6,431.00 from Ruffner-Porterfield in 2011, Scheid’s SFI for
calendar year 2011 did not disclose Ruffner-Porterfield as a source of income in excess of
$1,300. See, Fact Finding 52 c.
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 Melanie Scheid
completing an inspection of the Ruffner-
Porterfield Funeral Directors & Cremation
Services, Ltd., enabling that entity to operate as
a funeral home at a time when she was part-
owner of the funeral home; and
b. That a violation of Section 1105(b)(8) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(8) occurred when Melanie
Scheid did not disclose on SFIs filed for the
2010 and 2011 calendar years her office,
directorship, and/or employment in the Ruffner-
Porterfield Funeral Directors & Cremation
Services, Ltd.; and
c. That a violation of Section 1105(b)(6) \[sic\] of the
Public Official and Employee Ethics Act, 65
Fennell Scheid, 12-031
Page 21
Pa.C.S. § 1105(b)(6) \[sic\] occurred when
Melanie Scheid failed to disclose on SFIs filed
for the 2010 and 2011 calendar years all direct
and/or indirect sources of income in excess of
$1,300.00.
4. Scheid agrees to make payment in the amount of $7,560.00 to
the Commonwealth of Pennsylvania and forwarded to the
Pennsylvania State Ethics Commission within thirty (30) days
of the issuance of the final adjudication in this matter.
5. Scheid’s acceptance and execution of this Consent Agreement
is solely for the purpose of resolving the matter currently
pending before the Pennsylvania State Ethics Commission and
is in no way related to any other proceedings or matters that
may be currently ongoing or which may be initiated in the
future.
6. Scheid agrees to file amended complete and accurate
Statements of Financial Interests with the Pennsylvania
Department of State through the Pennsylvania State Ethics
Commission, for the 2010 and 2011 calendar years within
thirty (30) days of the issuance of the final adjudication in this
matter.
7. Scheid agrees to not accept any reimbursement,
compensation or other payment from the Pennsylvania
Department of State representing a full or partial
reimbursement of the amount paid in settlement of this matter.
8. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement, regulatory,
or other authority to take action in this matter. Such, however,
does not prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent’s failure to
comply with this agreement or the Commission’s order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 1-2.
In considering the Consent Agreement of the parties, we agree with the parties that
a violation of Section 1103(a) of the Ethics Act occurred in relation to Scheid completing
an inspection of Ruffner-Porterfield which enabled that entity to operate as a funeral home
at a time when she was part-owner of the funeral home.
Factually, in 2008, Scheid had discussions with Porterfield and Ruffner about the
possibility of going into business together and opening a new, larger funeral home in the
Lebanon area. On September 8, 2009, Scheid began her Commonwealth employment as
a Mortuary Inspector. Sometime after December 18, 2009, construction of a new funeral
home began on the Property in Lebanon County, Pennsylvania, pursuant to a lease
agreement between the Property owners and the funeral home owned and operated by
Ruffner. On August 5, 2010, Articles of Incorporation for the new funeral home, Ruffner-
Porterfield, were filed with the Department of State. Scheid acquired a 33.33% ownership
interest in Ruffner-Porterfield on August 24, 2010.
Fennell Scheid, 12-031
Page 22
On September 14, 2010, Porterfield submitted an application to the State Board of
Funeral Directors for a Restricted Business Corporation Funeral Establishment for Ruffner-
Porterfield. As a Mortuary Inspector, Scheid performed inspections of funeral homes,
including those in and around the Lebanon area. Between September 14, 2010, and
September 24, 2010, Scheid was assigned to conduct an inspection of Ruffner-Porterfield
due to its location in Lebanon County.
Scheid used the authority of her public position as a Mortuary Inspector when she
conducted a New Business Inspection for Ruffner-Porterfield and gave it a passing
inspection on September 24, 2010. Scheid’s passing inspection enabled Ruffner-
Porterfield to immediately begin operations as a funeral home pending final approval by
the State Board of Funeral Directors, and Ruffner-Porterfield began such operations one
day after Scheid’s inspection. At the time Scheid conducted her inspection of Ruffner-
Porterfield, she was a shareholder of Ruffner-Porterfield with a 33.33% ownership interest.
Scheid, as a shareholder of Ruffner-Porterfield, received income from the business
in the amounts of $1,129.00 in 2010 and $6,431.00 in 2011. The parties have stipulated
that Scheid realized a private pecuniary benefit of $7,560.00 as a result of her inspection
of Ruffner-Porterfield on September 24, 2010.
With each element of a violation of Section 1103(a) established, we hold that a
violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to
Scheid completing an inspection of Ruffner-Porterfield which enabled that entity to operate
as a funeral home at a time when she was part-owner of the funeral home.
As for the allegations regarding Scheid’s SFIs, it is clear that Scheid failed to
disclose: (1) her office, directorship or employment in Ruffner-Porterfield on her SFIs for
calendar years 2010 and 2011; and (2) Ruffner-Porterfield as a source of income in excess
of $1,300 on her SFI for calendar year 2011. The Stipulated Findings do not identify the
particular source(s) of income in excess of $1,300 which Scheid failed to disclose on her
SFI for calendar year 2010. However, the parties are in agreement that at least one such
source of income was not disclosed by Scheid on her SFI for calendar year 2010.
We hold that Scheid violated Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. §
1105(b)(8), when she did not disclose on SFIs filed for the 2010 and 2011 calendar years
her office, directorship, and/or employment in Ruffner-Porterfield.
We further hold that Scheid violated Section 1105(b) of the Ethics Act, 65 Pa.C.S. §
1105(b), when she failed to disclose on SFIs filed for the 2010 and 2011 calendar years all
direct and/or indirect sources of income in excess of $1,300.00.
As part of the Consent Agreement, Scheid has agreed to make payment in the
amount of $7,560.00 to the Commonwealth of Pennsylvania and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Scheid has agreed to not accept any reimbursement, compensation or other
payment from the Department of State representing a full or partial reimbursement of the
amount paid in settlement of this matter.
Scheid has further agreed to file amended, complete and accurate SFIs for the 2010
and 2011 calendar years with the Department of State, 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.
Fennell Scheid, 12-031
Page 23
Accordingly, per the Consent Agreement of the parties, Scheid is directed to make
payment in the amount of $7,560.00 payable to the Commonwealth of Pennsylvania 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, Scheid is directed to not accept any
reimbursement, compensation or other payment from the Department of State representing
a full or partial reimbursement of the amount paid in settlement of this matter.
Scheid is directed to file amended, complete and accurate SFIs for the 2010 and
2011 calendar years with the Department of State, through this Commission, by no later
th
than the 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.
Fennell Scheid, 12-031
Page 24
IV.CONCLUSIONS OF LAW:
1. As a Mortuary Inspector with the Bureau of Enforcement and Investigation of the
Pennsylvania Department of State from September 8, 2009, until May 17, 2012,
Respondent Melanie B. Fennell Scheid (“Scheid”) was a public employee subject to
the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65
Pa.C.S. § 1101 et seq.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Scheid completing an inspection of Ruffner-Porterfield Funeral Directors
& Cremation Services, Ltd. which enabled that entity to operate as a funeral home
at a time when she was part-owner of the funeral home.
3. Scheid violated Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8), when
she did not disclose on Statements of Financial Interests filed for the 2010 and
2011 calendar years her office, directorship, and/or employment in Ruffner-
Porterfield Funeral Directors & Cremation Services, Ltd.
4. Scheid violated Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), when she
failed to disclose on Statements of Financial Interests filed for the 2010 and 2011
calendar years all direct and/or indirect sources of income in excess of $1,300.00.
In Re: Melanie B. Fennell Scheid, : File Docket: 12-031
Respondent : Date Decided: 4/24/14
: Date Mailed: 5/1/14
ORDER NO. 1632
1. As a Mortuary Inspector with the Bureau of Enforcement and Investigation of the
Pennsylvania Department of State (“Department of State”), Melanie B. Fennell
Scheid (“Scheid”) violated Section 1103(a) of the Public Official and Employee
Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to her completing an
inspection of Ruffner-Porterfield Funeral Directors & Cremation Services, Ltd. which
enabled that entity to operate as a funeral home at a time when she was part-owner
of the funeral home.
2. Scheid violated Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8), when
she did not disclose on Statements of Financial Interests filed for the 2010 and
2011 calendar years her office, directorship, and/or employment in Ruffner-
Porterfield Funeral Directors & Cremation Services, Ltd.
3. Scheid violated Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), when she
failed to disclose on Statements of Financial Interests filed for the 2010 and 2011
calendar years all direct and/or indirect sources of income in excess of $1,300.00.
4. Per the Consent Agreement of the parties, Scheid is directed to make payment in
the amount of $7,560.00 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the
th
thirtieth (30) day after the mailing date of this Order.
5. Per the Consent Agreement of the parties, Scheid is directed to not accept any
reimbursement, compensation or other payment from the Department of State
representing a full or partial reimbursement of the amount paid in settlement of this
matter.
6. Scheid is directed to file amended, complete and accurate Statements of Financial
Interests for the 2010 and 2011 calendar years with the Department of State,
through the Pennsylvania State Ethics Commission, by no later than the thirtieth
th
(30) day after the mailing date of this Order.
7. Compliance with paragraphs 4, 5, and 6 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