HomeMy WebLinkAbout1653 Talley
In Re: Rae Talley, : File Docket: 13-007
Respondent : X-ref: Order No. 1653
: Date Decided: 1/27/15
: Date Mailed: 2/10/15
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan
Roger Nick
Kathryn Streeter Lewis
Maria Feeley
Melanie DePalma
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 Rae Talley, a public official/public employee in her capacity as an Education
Administration Specialist in the Bureau of Post-Secondary Services and as a Higher
Education Associate 2 for the \[Pennsylvania\] Department of Education, violated \[Sections
1103(a), 1104(a), and 1105(b)(5)\] of the State Ethics Act (Act 93 of 1998) when she used
the authority of her public position to obtain a private pecuniary benefit for herself and/or a
business with which she is associated, when she solicited and received payments from
entities she regulated as an employee of the Department of Education, and/or when she
otherwise utilized the authority of her public position/public employment to
influence/attempt to influence the Department of Education, the Pennsylvania Department
of State and/or employees of the Department of Education/Department of State, in a
manner to assist or otherwise obtain improper favoritism or preferential handling of matters
before the Department of Education/Department of State for entities to which she served
as an independent/private consultant, including: Berean Institute; Allied Technical Institute
of Philadelphia (Nursing on Demand Education & Training Center); Kiddie Kare Child Care
and Education Center, Inc.; Lorraine Naranjo-Poole/Naranjo Associates; and America
Health Care, Inc.; and when she failed to disclose on Statements of Financial Interests for
the 2008, 2009, 2010 and 2011 calendar years her receipt of direct/indirect income from all
sources; and when she failed to file a Statement of Financial Interests for the 2012
calendar year.
II.FINDINGS:
Talley, 13-007
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1. Rae Talley (“Talley”) was employed by the Pennsylvania Department of Education
(“PDE”) from approximately October 1, 2007, until August 20, 2012.
a. Talley was employed as an Education Administration Specialist with the
Division of Private Licensed Schools from October 1, 2007, until April 27,
2009, at a salary of approximately $60,519.00 annually.
b. Talley served as a Higher Education Associate 2 with the Bureau of School
Leadership and Teacher Quality from April 27, 2009, until June 7, 2012, at a
salary of approximately $69,614.00 annually.
c. Talley was assigned to the State Library from June 7, 2012, until August 20,
2012.
2. Private Licensed Schools is a division of PDE created under the Private Licensed
Schools Act, Act 174 of 1986 (“Act”).
a. The Act created the State Board of Private Licensed Schools with the
authority to license and regulate private career and trade schools.
b. The Act was created to protect student records, facilitate the investigation of
complaints, provide for enforcement action, and facilitate the collection of
statistical data on private licensed schools.
3. Talley’s duties and responsibilities as an Education Administration Specialist from
October 2007 to April 2009 with PDE’s Division of Private Licensed Schools
included the following:
a. Serve as Board Administrator or contact person for an assigned number of
schools.
b. As Board Administrator, review applications for new school
licensure/registration for regulatory and academic compliance,
completeness, and accuracy.
c. Prepare written recommendations of approval/disapproval of school and
appropriate action to the Board.
d. Provide written recommendations on issues such as school records, fiscal
documents, programs, and the facility to the Board, based on the review of
private school applications within a specified timeframe.
e. Interpret for schools and ensure compliance with regulations, policies, and
guidelines established by the State Board of Private Licensed Schools.
f. Conduct on-site visits to new schools to validate submission and assess
compliance with the law and regulations for new and existing schools.
g. Evaluate school programs and courses and recommend changes, revisions,
additional courses/programs, or the deletion of courses/programs.
h. Provide professional advice, counsel, and leadership to school
administrators for programs, school records, fiscal records, and facility
accommodations.
Talley, 13-007
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i. Review financial statements for new school and renewal applications and
refer questionable statements to the Board’s finance committee with
recommendations.
j. Assist in drafting changes to the Board’s regulations for private licensed
schools.
k. Identify the impact of Board regulations on schools and recommend
revisions to the Board Secretary.
l. Prepare written responses as required to inquiries and requests from
legislators, federal government staff, the general public, and other states as
requested, utilizing a personal computer and the Department’s software.
m. Make oral presentations and \[represent\] the Department as requested at
meetings and in other forums as necessary.
n. Participate in appraisals and special studies and serve as resource person
for
committees, task forces, agencies, and organizations as required.
o. As Enforcement Administrator, prepare the agenda for the Review and
Recommendation Panel.
p. Prepare notices of violation, notices of unlicensed activity, and show cause
orders as directed by the Review and Recommendation Panel.
q. Investigate allegations of unlicensed activity.
r. Prosecute unlicensed activity and non-compliance cases as needed.
s. Research legal issues related to private licensed schools.
t. Present the Department’s case in an administrative hearing conducted by
the Board.
u. Develop effective communication with other agencies with legal or regulatory
authority over licensed private schools to facilitate referrals and exchanges
of information. Such agencies include, but are not limited to, the Attorney
General’s Bureau of Consumer Protection, Pennsylvania Higher Education
Assistance Agency, the U.S. Department of Education, Bureau of Veteran’s
and Military Education, and the Office of Vocational Rehabilitation.
4. Talley’s duties as a Higher Education Associate 2 for the Bureau of School
Leadership and Teacher Quality during the period of April 27, 2009, to June 7,
2012, were as follows:
a. Conduct and lead major and initial Certificate reviews for Principal and
Administrative certificate programs within Pennsylvania.
b. Consult with assigned colleges/universities to assist with preparation of
required self-studies for new and major program reviews.
c. Assist in the coordination of reviews for Principal and Administrative
Certificates with the Program Approval Coordinator.
Talley, 13-007
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d. Review and make necessary edits to team reports and the institution's
response to the report.
e. Prepare program approval letters for areas meeting state
standards/guidelines.
f. Maintain familiarity with state program approval standards, guidelines, and
pertinent state and federal legislation and also provide assistance to
assigned colleges on such as requested.
g. Aid in developing state program approval standards/guidelines as assigned.
h. Develop training programs along with other Bureau liaisons to assist
potential team members in conducting major and initial program reviews.
i. Develop and deliver all related training for the program as assigned.
j. Maintain up-to-date division-level anecdotal files relative to the Principal and
Administrative Certificate colleges/universities \[sic\].
k. Complete year-end report to division on status of principal and administrative
education at Pennsylvania colleges/universities.
l. Meet with principals, administrators, and program faculty at basic and post-
secondary levels to provide educational information/reports/summaries, etc.
m. Assist in the new certificate and program approval process as needed.
n. Maintain data and develop expertise with data systems used by the
Department to generate reports and analyses.
o. Other duties as assigned by the Division and the Bureau.
5. At the time she began employment with PDE in October 2007, Talley signed an
employee orientation checklist dated October 12, 2007, acknowledging reviewing
and being provided with copies of PDE policy that included the Governor’s Code of
Conduct and Financial Disclosure Statement.
a. All Commonwealth employees of the Executive Branch are subject to the
Governor’s Code of Conduct.
b. The Governor’s Code of Conduct included the following language on
restricted activities, conflicts of interest, and adverse pecuniary interests:
Part 1 – Restricted Activities; Conflicts of Interest.
Item 1 – Adverse pecuniary interest.
1. Engage directly or indirectly in business transactions or private
arrangement for profit which accrues from or is based upon his official
position or authority.
6. The Governor’s Code of Conduct includes the following regarding supplementary
employment and the use of Commonwealth equipment for non-official purposes.
a. No employee, appointee or official in the Executive Branch of the
Commonwealth shall engage in or accept private employment or render
services for a private interest unless such employment or service is
Talley, 13-007
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approved in advance by the head of the agency to which the affected person
is assigned.
b. No employee, appointee or official in the Executive Branch of the
Commonwealth shall use any Commonwealth equipment, supplies or
properties for his own private gain or for other than officially designated
purposes.
c. Talley was made aware of this as part of her orientation.
7. Talley was enrolled in OA-HRD WBT Ethics in the Workplace on November 30,
2007, and had a completion date of January 11, 2008.
a. This training includes information regarding the Public Official and Employee
Ethics Act.
8. Talley signed a Commonwealth IT Resource Acceptable Use Policy User
Agreement on October 9, 2007, confirming that she read Management Directive
205.34 Commonwealth of Pennsylvania Information Technology Acceptable Use
Policy.
a. Management Directive 205.34 provides in part that authorized users may not
use IT resources to engage in personal, for profit transactions or business,
or to conduct any fundraising activity not specifically sponsored, endorsed,
or approved by the Commonwealth.
1. Commonwealth IT Resources include, but are not limited to, the
following: the Commonwealth’s computer systems, together with any
electronic resource used for communications, which includes, but is
not limited to laptops, individual desktop computers, wired or wireless
telephones, cellular phones, pagers, beepers, personal data
assistants and handheld devices, e.g. Blackberry devices, palm
devices, etc. and further, includes use of the internet, electronic mail
(e-mail), instant messaging, texting, voice mail, facsimile, copiers,
printers or other electronic messaging through Commonwealth
facilities, equipment or networks (collectively “IT resources”).
9. Talley filed supplementary employment requests with PDE on numerous occasions,
the first being on or about November 13, 2007.
a. The supplementary employment requests included outside employment as a
consultant and seeking elected office.
10. On November 13, 2007, Talley filed a supplementary employment request with PDE
to work as a financial consultant.
a. The duties Talley listed included counseling families and developing debt
consolidation plans to assist them with their finances.
b. The hours were to be from 6:00 p.m. until 10:00 p.m. and approximately 10-
20 hours per week.
c. Talley’s request was approved with one of the following conditions:
1. During work hours you may not be involved with your supplementary
employment, nor are you permitted to use Commonwealth owned or
Talley, 13-007
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leased equipment, material or facilities in connection with your
supplemental employment.
d. No other supplementary employment requests were ever filed by Talley.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS REGARDING THE BEREAN
INSTITUTE AND LORRAINE POOLE-NARANJO/NARANJO ASSOCIATES.
11. As an Education Administration Specialist from October 2007 to April 27, 2009,
Talley was assigned to inspect and review private licensed schools.
12. One of the schools assigned to Talley was the Berean Institute.
a. Talley was assigned to the Berean Institute in or about January 2008.
13. The Berean Institute was established in 1899 in Philadelphia to provide vocational
and business education to African-Americans.
14. The Berean Institute became known for its cosmetology, court reporting, data
processing, and stenography programs.
15. The Berean Institute leased space at 1901-1945 Girard Avenue, Philadelphia,
Pennsylvania, through PDE from about December 1, 1980, through November 30,
2010.
16. Up until 2007, the Berean Institute had a separate line item budget for funding from
PDE that annually totaled approximately 1.5 million dollars.
a. In 2007, Commonwealth funding for the Berean Institute was eliminated.
17. In or around November 2007, the Berean Institute lost accreditation due to a lack of
tuition-paying students.
18. In or around July 2008, efforts were initiated by PDE’s Division of Private Licensed
Schools to close the Berean Institute.
a. At that time, Talley was a PDE employee assigned to oversee the Berean
Institute.
19. Dr. Lorraine Poole-Naranjo (“Dr. Naranjo”) began serving on the Board of Trustees
of the Berean Institute in or around January 2008.
a. Dr. Naranjo became the President of the Board of Trustees of the Berean
Institute in or around July 2008.
20. Talley, in her capacity as an Education Administration Specialist, was the PDE
official with oversight of the Berean Institute’s closeout.
a. Talley was responsible for assisting Dr. Naranjo with the closeout.
21. Talley’s responsibilities in relation to the Berean Institute were outlined in testimony
that was provided by Talley on September 29, 2008, during a hearing with the PDE
State Board of Private Licensed Schools regarding the Berean Institute:
a. Questions from Robert Tomaine (PDE Attorney):
Q Are you gainfully employed?
Talley, 13-007
Page 7
A Yes
Q Could you tell us where?
A Department of Education
Q What’s your job?
A Board Administrator for the Division for the Division of Private Licensed Schools.
Q What did you do in the course of that job?
A Monitor whatever schools that are licensed by the Division of Private Licensed
Schools, work closely with the school executive directors or School administrators,
with their curriculums, programs, making sure they remain in compliance with the
laws that are established by the Division of Private Licensed Schools and the Board.
Q Do you currently work with the Berean Institute in the course of your employment?
A Yes
Q Could you tell us how long you’ve been working with Berean?
A I’ve been working with Berean over the past six months, two or three days per week,
traveling back and forth to Philadelphia, working closely with Berean on their teach-
out process.
Q Could you explain the teach-out process?
A The teach-out process is when a school informs the Division of Private Licensed
Schools that they will be closing due to lack of funding or due to Lower enrollment or
non-renewal of license or whatever the cause may be. That process, the
administrators will put a plan together to share with us how they will be closing the
school down. Along with that plan they also share with us where their students’
records repository is sent to. Also, if they have students enrolled, they will also make
partnership with other schools within their communities so those students may attend
those schools to complete their doors open until their academic program, and they
will also keep their doors open until their academic program that they are currently
teaching has completed their services.
Q Has there been any indication to you that Berean is intending to have a School next
year, a private licensed school next year?
A No
b. Questions from Chairman Spaulding (State Board of Private Licensed
Schools):
Q Just so I understand, the documentation that you had received from the school was a
teach out plan?
A Yes
Q And they gave a date by which they –
A The teach-out plan that I received and shared with the Division of Private Licensed
Schools is a teach-out plan for the cosmetology students, and the date that’s
indicated on hat plan is October 15, because of the cosmetology students in the
building, the academic building at Berean Institute.
Q Okay. So October 0f 2008 –
A Yes
Q was the anticipated close date
A Yes
Q Okay
22. On July 15, 2008, Talley sent the following e-mail to Dr. Naranjo and Dr. Kathleen
Shaw, PDE Deputy Secretary, regarding the closeout of the Berean Institute:
From: Talley, Rae
To: \[e-mail address redacted\]
Cc: Shaw, Kathleen(PDE)
Sent: Tue, 15 Jul 2008 9:09 am
Subject: Close out packet
Good Morning Lorraine,
My name is Rae Talley, the Board Administrator, from the Division of Private
Licensed Schools appointed to Berean Institute. My responsibility is to work closely
with you during the close-out process of the school (including placing the
Cosmetology and Barber Students at another institution within the Philadelphia area.)
If you will send me your fax number or mailing address I will immediately send to your
attention the close-out procedure packet. In the interim if you have any questions or
concerns, in how to get started with this HUGH project. Please do not hesitate to call
or e-mail me immediately. I am in the office Monday-Friday from 8:15-4:30 pm and
my direct line is: (717) 265-7723.
Talley, 13-007
Page 8
Respectfully,
Rae L. Talley
23. Dr. Naranjo responded to Talley’s e-mail as follows:
From: \[e-mail address redacted\]
Sent: Tuesday, July 15, 2008 9:38 AM
To: Talley, Rae
Subject: Re: Close out packet
Rae
It was my pleasure to speak with you this morning and will look forward to a
productive relationship. You can send the Close Out package to Berean Institute,
1901 W. Girard Ave. Phila, PA 19130. The fax #215 763-4833. Please put to the
attention of Dr. Lorraine Poole-Naranjo.
Enjoy your day!
Lorraine
24. On July 16, 2008, the Commissioner of the Bureau of Professional and
Occupational Affairs for the Pennsylvania Department of State extended a 90 day
grace period to the Berean Institute if it could continue to function at its current
location or if it could find a new temporary location.
a. The Berean Institute would continue operating a cosmetology program
during the 90 day grace period.
25. When seeking additional funding sources for the Berean Institute, Dr. Naranjo
discussed the possibility of finding additional funding sources with Talley.
a. Those funding sources included receiving additional funding from PDE.
26. Talley advised her immediate supervisor, Patricia Landis, Division Chief for the
Division of Higher and Career Education, and PDE Deputy Secretary Shaw about
her discussions with Dr. Naranjo regarding additional funding for the Berean
Institute.
27. PDE works in conjunction with community colleges across the state to provide
funding through community colleges for private licensed schools which offer
programs community colleges do not have available.
a. The funding for private licensed schools is then provided through community
colleges from grants provided by PDE.
28. Efforts were made by PDE Deputy Secretary Shaw to locate additional funding for
the Berean Institute through the Community College of Philadelphia (“CCP”).
a. Shaw had discussions with officials from CCP about working with PDE to
provide $75,000 in funding to help the school transition to closure.
29. On or about August 19, 2008, Talley advised Dr. Naranjo that efforts were being
made by PDE officials to obtain a grant for the Berean Institute.
a. Talley provided this information in her official capacity with PDE.
30. On September 1, 2008, a Grant Agreement was entered into between PDE, through
CCP, and the Berean Institute that provided in part as follows:
Talley, 13-007
Page 9
a. The terms of the agreement are from September 1, 2008, through October
31, 2008, and grant funds provided shall be used to defray costs incurred
from August 1, 2008, through September 30, 2008.
b. The grantee will insure that the use of the funds is limited to services
required to provide training to currently enrolled Berean Institute
cosmetology students and to insure that the student records and other
official records of the Berean Institute are secured.
c. Payment under this agreement in the amount of $75,000 shall be made in
lump sum upon final execution of this agreement.
d. The agreement was signed by PDE Deputy Secretary Shaw on September 3,
2008.
31. On September 3, 2008, Dr. Naranjo e-mailed Talley to provide bank routing
information for the Berean Institute so that the grant funds could be deposited.
32. On September 22, 2008, a payment was issued to the Berean Institute from CCP
via check # 02101275 in the amount of $75,000.
a. The payment was deposited into the Berean Institute’s account with PNC
Bank on September 22, 2008.
33. On September 24, 2008, Dr. Naranjo e-mailed Shaw, Landis, and Talley,
expressing thanks for the grant:
From: \[e-mail address redacted\]
To: Shaw, Kathleen (PDE); Landis, Patricia A. (PDE); Talley, Rae
Sent: Wed Sep 24 11:43:56 2008
Subject: Berean Institute
Dr. Shaw, Ms. Landis and Ms. Talley
I would like to express my gratitude for your efforts to provide Berean Institute with
funds for the “Teach Out.” Ms. Talley explained to me the process for the “teach Out,”
so again I deeply appreciate all that you have done to make this a better situation for
Berean. Kate, thanks for the extra effort.
Lorraine Poole-Naranjo
34. On January 10, 2009, the State Board of Private Licensed Schools determined that
the Berean Institute failed to show cause why its license should not be revoked, that
the license should be revoked, and that the Berean Institute should begin taking
steps necessary to teach out any remaining students and to transfer its records to
its designated records repository.
35. On or around January 1, 2009, Talley approached Dr. Naranjo about serving as a
consultant to assist Dr. Naranjo’s efforts to continue operating the Berean Institute.
a. Talley approached Dr. Naranjo at or about the time that Talley, in her public
position with PDE, was participating in securing funding for the Berean
Institute.
1. Talley also had responsibility for the teach-out of the Berean Institute.
36. Dr. Naranjo agreed to utilize Talley as a consultant for the Berean Institute after the
January 2009 contact by Talley.
Talley, 13-007
Page 10
a. Talley was hired as a consultant by Dr. Naranjo as a result of Talley’s
position with PDE and Talley’s past dealings with Dr. Naranjo to help keep
the Berean Institute open, including Talley’s assistance in securing funding
from CCP.
b. No written contract was executed between Talley and the Berean
Institute/Dr. Naranjo.
c. The services Talley was to perform for the Berean Institute included helping
to establish a day care center at the school, obtaining accreditation from the
Pennsylvania Department of State for the Cosmetology and Barbering
Program, and assisting with the establishment of a charter school at the
Berean Institute through PDE.
d. Payments were to be made to Talley by Dr. Naranjo for consulting services
totaling at least $10,000.00.
e. No record exists of Talley ever completing any of the services she verbally
agreed to provide to Dr. Naranjo/the Berean Institute.
f. The verbal agreement between Talley and Dr. Naranjo was entered into by
Dr. Naranjo based on her understanding that Talley was still with the
Division of Private Licensed Schools.
1. Talley never notified Dr. Naranjo that she changed positions with PDE
in April 2009.
37. Talley never submitted a supplementary employment request to PDE to serve as a
consultant for either the Berean Institute or Dr. Naranjo.
38. Talley was hired as a consultant by Dr. Naranjo as a result of Talley’s position with
PDE’s Division of Private Licensed Schools, and because of Talley’s past dealings
with Dr. Naranjo in assisting the Berean Institute as a PDE employee.
39. Talley was hired by Dr. Naranjo as a consultant for the Berean Institute with the
understanding that Talley was to utilize her position to influence the Division of
Private Licensed Schools to establish a daycare center at the Berean Institute, to
obtain accreditation from the Pennsylvania Department of State for the
Cosmetology and Barbering Program on behalf of the Berean Institute, and to assist
in establishing a charter school at the Berean Institute.
40. Talley concealed from Dr. Naranjo the fact that she had changed positions with
PDE in April 2009 from the Division of Private Licensed Schools, where Talley
would have been able to better utilize her PDE position to help the Berean Institute.
a. Dr. Naranjo did not become aware that Talley had changed positions with
PDE until about June 2012.
b. During an interview with a State Ethics Commission Investigator, Dr. Naranjo
stated that she was annoyed that Talley failed to notify her that Talley
changed positions with PDE because Talley would have less influence in
assisting the Berean Institute.
41. On January 15, 2009, Talley submitted an invoice in the amount of $5,000.00 to Dr.
Naranjo for consulting work that was as follows:
Talley, 13-007
Page 11
a. The Description of Services is listed as “Consultant Services Rendered
January 1, through January 31, 2009.”
b. Talley sent the bill to Naranjo’s home address at \[residence address
redacted\].
c. Payment information included making payment to Talley at Talley’s home
address of \[residence address redacted\].
42. PDE e-mails on January 21, 2009, regarding the Berean Institute’s lease reflect the
following regarding Talley’s continued involvement after she became a consultant to
the Berean Institute:
From: Patricia Landis A. (PDE)
To: Kathleen Shaw (PDE); Paula Unger,; Feuchtenberger, Karen
Sent: Wed Jan 21 12:33:16 2009
Subject: Berean and the building
Lorraine Poole just called Rae Talley and asked her who to contact about buying the
building. She claims she has received a loan for $500,000 and she wants to buy the
building and she wants to know who to contact. I don’t think we should even be
involved in these discussions and Berean’s attorneys should make the appropriate
contacts, but Rae would like to refer her to someone she can talk to. Any ideas?
From: Shaw, Kathleen (PDE)
Sent: Wednesday, January 21, 2009 12:36 PM
To: Landis, Patricia A. (PDE)
Cc: Walsh, Michael (PDE); Gluck, Thomas
Subject: Re: Berean and the building
Please refer her to dgs. I am cc’ing mike walsh on this so he can give them a heads
up.
From: Landis
Sent: January 21, 2009 12:46 PM
To: Rae Talley
Refer them to DGS. Thanks
From: Talley, Rae
Sent: January 21, 2009
To: Landis
Thank you. Who do you recommend from DGS?
From: Landis
Sent: January 21, 2009 1:31 PM
To: Talley, Rae
I do not know a single name in DGS. I would refer her to Joanne Phillips who is the
Bureau Director of Real estate Bureau in DGS. 787-4394.
43. On January 21, 2009, at or about the time of the e-mails, Talley was employed as
an Education Administration Specialist with PDE and was serving as a consultant
for the Berean Institute.
a. Talley, in her capacity as a public employee, was assisting Dr. Naranjo/the
Berean Institute and was also being compensated by the Berean Institute as
a private consultant.
44. Talley maintained a personal e-mail address at \[e-mail address redacted\].
45. On April 29, 2009, Talley sent an e-mail, including attachments, from her personal
e-mail address to her PDE e-mail address reflecting as follows:
Talley, 13-007
Page 12
From: \[e-mail address redacted\]
Sent: Wednesday, April 29, 2009 6:32 AM
To: Talley, Rae
Subject: Fwd: Invoices
Attachments: Rae Talley February INVOICE.docx; Rae Talley January INVOICE.docx;
Rae Talley INVOICE.docx
Follow Up Flag: Follow up
Flag Staus: Completed
46. Attachments to the e-mail are as follows:
INVOICE
Consultant Services
c/o Rae Rae Talley
\[residence address redacted\]
Bill to:
Dr. Lorraine Poole-Naranjo
\[residence address redacted\]
Date Description of Services Amount
1/15/2009 Consultant Services Rendered January 1, through January 31, 2009 $5,000.00
Amount Due $5,000.00
2/24/2009 Consultant Services Rendered February 1, through February 28, 2009 $5,000.00
Partial payment for services Rendered ( February 24, 2009) $2,000.00
Amount Due $3,000.00
3/15/2009 Consultant services Rendered March 1, through March 31, 2009 $5,000.00
Amount Due $5,000.00
Payment information
Please make check payable to:
Rae Talley
\[residence address redacted\]
47. Payment was made to Talley in the amount of $2,000.00 on February 24, 2009,
from Dr. Naranjo in the form of a cashier’s check from Citizens Bank \[account
number redacted\].
a. This account was held in the name of Dr. Naranjo.
b. Payment was deposited into Talley’s personal checking account at
Commerce Bank (now Metro Bank) on April 1, 2009.
c. This was a partial payment for consulting services rendered in February
2009.
48. Talley maintained checking accounts at Metro Bank (formerly Commerce Bank) that
included an individual account \[account number redacted\] under her name and a
joint account with her husband, Sean Letterlough \[account number redacted\].
Talley, 13-007
Page 13
49. On February 20, 2010, check number 166 from Naranjo Associates in the amount of
$3,000.00 was deposited into Talley’s account.
a. Check number 166 was subsequently returned for insufficient funds.
50. On July 19, 2012, Patricia Landis, Talley’s supervisor at the Division of Private
Licensed Schools, provided a written statement which included, in part, Landis
advising Talley to avoid getting involved in issues between the Berean Institute and
PDE:
I was also aware that Rae had maintained contact with Lorraine Poole of Berean
Institute after she left the Division of Private Licensed Schools. She had reported that
Dr. Poole called her at home or on her cell phone to discuss issues related to the
enforcement action even while Rae worked in the Division of Private Licensed
Schools. I had advised Rae that she was not obliged to take these calls on her own
time and I cautioned her to be careful with the information she might share, but I never
had reason to believe that the calls were any more than imposition on Rae. Rae
would continue to mention conversations with Dr. Poole after she left the Division, but
I had no reason to believe that these calls were more than social.
On May 11, 2012, I received an angry e-mail and voice mail from Dr. Poole
demanding that I contact her. I did not respond immediately. Instead, I shared the
communication with the Deputy Secretary, who told me she would follow up. Later
that day or early the next week, Rae Talley stopped in my office. She was very
forceful and instructed me that I needed to return Dr. Poole’s call. I responded that I
was not personally involved with the issues related to the building, that I was operating
under instructions not to return the call, and I also advised Rae to stop providing
advice to Dr. Poole and not to insert herself in the issues between PDE and Berean.
51. Talley entered into a verbal agreement with Dr. Naranjo to provide private
consulting services to the Berean Institute at a time when she, as a Commonwealth
employee, had responsibility for regulating the Berean Institute.
a. Talley obtained this contract only as a result of her Commonwealth position.
b. Communications between Talley and Dr. Naranjo regarding Talley providing
consulting services to Dr. Naranjo/the Berean Institute occurred during
Talley’s regular working hours as a Commonwealth employee.
1. Communications were made through Talley’s Commonwealth e-mail
address and by telephone.
52. Talley billed the Berean Institute $15,000.00 for services between January and
March 2009, at the same time she had responsibility for oversight of the Berean
Institute.
a. Talley received a $2,000.00 payment from Dr. Naranjo on or about February
24, 2009.
b. Talley received a $3,000.00 payment from Dr. Naranjo/the Berean Institute
on or about \[February 20,\] 2010.
1. That payment was returned for insufficient funds.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS REGARDING THE ALLIED
TECHNICAL INSTITUTE OF PHILADELPHIA (NURSING ON DEMAND EDUCATION &
TRAINING CENTER) AND KIDDIE KARE CHILD CARE & EDUCATION CENTER, INC.
Talley, 13-007
Page 14
53. Tracey Parson (“Parson”) served as the President/CEO of Allied Technical Institute
of Philadelphia, Kiddie Kare Child Care & Education Center, Inc., and Nursing on
Demand Education & Training Center.
a. Parson filed fictitious name \[applications\] for all three (3) entities between
January 2007 and March 2008.
54. On January 5, 2007, Parson filed a fictitious name \[application\] for Nursing on
Demand Education & Training Center (“NODETC”) with the Pennsylvania
Department of State, Corporation Bureau.
a. The nature of the business or activity identified in the application was
educational training and resources provided to a diverse and global
community.
b. The principal place of business was listed as follows:
3901 A Main Street
Philadelphia, PA 19127.
55. Parson filed a fictitious name application for Allied Technical Institute of
Philadelphia with the Pennsylvania Department of State, Corporation Bureau on or
about March 10, 2008.
a. Nursing On Demand Education & Training Center (NODETC) was listed on
the application as the entity filing the request.
b. The nature of the business was identified as providing professional
healthcare and technical training to individuals in communities abroad.
c. No individuals were listed as having an interest in the business.
1. NODETC was identified as an entity interested in the business.
d. The address on the \[application\] was as follows:
2701 N. Broad Street
Philadelphia, PA 19132.
1. This is the same address as NODETC.
e. Parson signed the application as CEO of NODETC.
56. Articles of Incorporation – Non-Profit were filed by Parson with the Pennsylvania
Department of State, Corporation Bureau for Kiddie Kare Child Care & Education
Center on March 1, 2008.
a. The corporation was formed to provide child care and education training to
individuals in diverse and global communities abroad.
b. The corporation was established as a non-profit corporation under the Non-
Profit Corporation Law of 1988.
th
c. The incorporator was listed as Tracey Parson, 698 N. 12 Street,
Philadelphia, PA 19123.
1. Parson signed the application on or about March 1, 2008.
Talley, 13-007
Page 15
d. Articles of Incorporation were amended on April 9, 2010, changing the status
from non-profit to for-profit.
e. Articles of Incorporation were again amended on November 8, 2012,
renaming the corporation Simply Amazing & Creative Kids with an address
at 1100 W. Girard Avenue, Philadelphia, PA 19123.
f. Other addresses of the corporation were as follows:
1. 2701 N. Broad Street
Philadelphia, PA 19132.
2. 426 E. Allegheny Ave.
Philadelphia, PA 19134.
57. The Allied Technical Institute of Philadelphia was licensed by the State Board of
Private Licensed Schools to operate as a private licensed school on August 15,
2008.
a. The initial license, number 4509, issued on August 15, 2008, was valid until
November 1, 2008.
58. License number 4648, reissued for Allied Technical Institute of Philadelphia by the
State Board of Private Licensed Schools on October 8, 2008, was valid until
November 1, 2010.
a. The locations for the school included 2701 North Broad Street, Philadelphia,
PA 19132, and 426 East Allegheny Avenue, Second Floor, Philadelphia, PA
19134.
59. NODETC was first issued license number 4509 by the State Board of Private
Licensed Schools on November 15, 2007.
a. The license was valid until November 1, 2008.
b. The locations for the school included 3901 A Main Street, Philadelphia, PA
19127, and 2701 North Broad Street, Philadelphia, PA 19132.
60. On or around May 5, 2008, Parson advised the State Board of Private Licensed
Schools that NODETC intended to use the alternate name of Allied Technical
Institute of Philadelphia.
a. On August 15, 2008, PDE Board Administrator John Galganovicz for the
Division of Private Licensed Schools advised Parson that the State Board of
Private Licensed Schools had approved an alternative name, “Allied
Technical Institute of Philadelphia.”
b. On October 23, 2008, Parson was advised by Galganovicz that Allied
Technical Institute of Philadelphia would be the primary name for the school
and Nursing on Demand Education & Training Center would be the
secondary name.
61. The type of educational/training programs offered by Allied Technical Institute of
Philadelphia included the following:
a. Nurse Assistant Program;
Talley, 13-007
Page 16
b. Medical Office Administration;
c. Phlebotomy Technician; and
d. Child Development Associate.
62. In addition to operating Allied Technical Institute of Philadelphia, Parson was the
owner of Kiddie Kare Child Care & Education Center.
a. Kiddie Kare Child Care & Education Center operated out of the same
locations as Allied Technical Institute of Philadelphia.
b. Kiddie Kare Child Care & Education Center was incorporated by Parson on
or about March 1, 2008.
63. The objectives of Kiddie Kare Child Care & Education Center include the following:
a. Build capacity for high quality, affordable childcare targeted towards low
income families.
b. Support the implementation of the Keystone Stars Early Learning Center
quality initiative.
c. Increase available options in early learning and childcare for families with
nontraditional work hours.
d. Develop collaborative partnerships with employers designed to enhance the
offerings of early learning and childcare throughout the greater Philadelphia
region.
64. Talley first became acquainted with Parson in or around October 2007.
a. Talley accompanied PDE Board Administrator John Galganovicz during an
inspection of Parson’s private licensed school.
b. Talley was also familiar with Parson through PDE sponsored training.
65. As a PDE employee, Talley had no oversight over any of Parson’s entities,
including Allied Technical Institute of Philadelphia or Kiddie Kare Child Care &
Education Center.
66. Sometime prior to March 2010, Parson and Talley discussed Talley serving as a
consultant for Allied Technical Institute of Philadelphia and Kiddie Kare Child Care
& Education Center.
67. Talley prepared a contract with Parson utilizing a Commonwealth laptop computer
assigned to her.
a. The Agreement for Consulting Services or a Continuation of Services
provided, in part, as follows:
b. Agreement entered into by and between Rae Talley hereafter “ Consultant”
and Allied technical of Phila. & Kiddie Kare Learning Center hereafter
“Contractees.”
Talley, 13-007
Page 17
FOR AND IN Consideration of Fifteen Thousand Dollars ($15,000.00) and
other good and valuable considerations the receipt and sufficiency of which
is hereby acknowledged, the undersigned do hereby covenant, contract and
agree as follows:
1. Scope of Service; Consultant is hereby engaged to perform
consulting services for ATI & Kiddie Kare regarding the following:
aa. Write and present to PDE application for Non Public Private
School on behalf of Kiddie Kare Learning Center Kindergarten
program.
ab. Recruit and hire day care & ATI Staff.
ac. Trained day care staff according to the new Early Childhood.
ad. Education State Standards.
Ae. Conduct on-going coaching to School Owner.
Af. Solicit Web Master and Public relations firm for daycare.
Ag. Edit and proof-read grant proposals.
Ah. Submit revision #2 to PA Board of Nursing for approval.
Ai. Prepare the State of New Jersey Private License School
application.
Aj. All other duties as assigned by Allied Technical Institute and
Kiddie Care Learning Center.
2. Consulting Fees: Allied Technical Institute & Kiddie Kare Learning
Center agrees to pay unto Consultant as follows:
aa. A fixed fee of $15,000.00 for one full year of service.
Ab. At the signing of the contract, a signing fee of $2,000 was
owed.
This fee would cover travel expenses and hotel
accommodations, meals office supplies and etc.
Ac. A quarterly fee of $5,000.00 for one year full of service.
3. Payment was to be as follows:
aa. $2,000 at the signing of continuation contract 3/6/2010.
ab. $5,000 payment made quarterly (3-month cycle) after the
payment ending March 2011.
c. The contract was signed on March 6, 2010, by Rae Talley as the Consultant
and Tracey Parson as the Contractee.
68. Talley never requested supplementary employment from PDE in order to serve as a
consultant for Allied Technical Institute of Philadelphia and Kiddie Kare Child Care
& Education Center.
Talley, 13-007
Page 18
a. Talley concealed from her supervisors at PDE that she was serving as a
consultant to Allied Technical Institute of Philadelphia and Kiddie Kare Child
Care & Education Center.
69. Talley began performing consulting services for Allied Technical Institute of
Philadelphia in or about March 2009, prior to signing the contract.
70. In 2009, Talley communicated with Jean Wright, a secretary for Parson and Allied
Technical Institute of Philadelphia.
a. Talley communicated with Wright utilizing her Commonwealth computer.
b. The purpose for the communications was unrelated to Talley’s official duties
with PDE.
71. On June 9, 2009, Talley forwarded to Wright an e-mail which included as an
attachment a letter of recommendation for Allied Technical Institute of Philadelphia
from Talley.
a. The letter was signed by Talley as an Administrator/Principal for the Ronald
Brown Charter School.
b. Talley was affiliated with the Ronald Brown Charter School prior to her
employment with PDE.
c. The Ronald Brown Charter School was defunct in 2009.
72. The e-mail from Talley to Wright, located on Talley’s Commonwealth computer,
confirmed the following:
From: \[e-mail address redacted\]
Sent: Sunday, June 7, 2009 11:19 PM
To: Talley, Rae
Subject: Letter for Allied
Attachments: Talley letter for Allied.doc
See attachment
Ms. Jean
a. The letter was sent from Talley’s personal e-mail address to Talley’s
Commonwealth e-mail address.
73. The Talley letter attached to the e-mail is as follows:
June 6, 2009
To Whom It May Concern:
It is with great pleasure that we support Allied Technical Institute of Philadelphia in
their new venture of providing job specific skills training for individuals seeking a
career in the Child Development Associate (CDA) Credential.
Since the existence of Allied Technical Institute of Philadelphia, it has had the
opportunity to train a number of young adults in the area of Nursing Assistant. To take
on this new venture of training, adults in the area of Child development and Child care
is very challenging but rewarding.
We, at the Ronal H. Brown Charter School have committed ourselves to assist and
provide Allied Technical Institute of Philadelphia with staff development training,
mentoring and assist in the development of partnership with surrounding schools,
Talley, 13-007
Page 19
charter schools and local child care facilities in the Philadelphia and surrounding
areas throughout the state of Pennsylvania.
Along with our commitment to support Allied Technical Institute of Philadelphia in their
new venture we pledge to interview and train all graduates of the program and hire as
many qualified graduates as we are able.
Again, it is a pleasure to support Allied Technical Institute of Philadelphia. Please feel
free to contact my office at (717) 418-2940 should you have any questions or
concerns.
Sincerely,
Rae L. Talley, M.Ed.
Chief Administrative Officer/Principal
74. Talley prepared the letter for Parson in an effort to assist Parson in obtaining
funding for Allied Technical Institute of Philadelphia.
75. On or about September 29, 2009, Talley forwarded the following e-mail from her
PDE e-mail account to Parson which advised Parson to use letterhead from the
Ronald Brown Charter School to send correspondence to Dr. Holt of the State
Board of Nursing in order to secure funding for the nursing school.
a. The e-mail noted the following:
From: Talley, Rae,rtalley@state.pa.us
Subject: Dear Mr. Hines.doc
To: “ati Phila” alliedtech00@yahoo.com,” NURSING ON DEMAND, LLC
NURSING ON DEMAND, LLC”nursingondemand@yahoo.com
Date: Tuesday, September 29, 2009, 4:29 PM
Hey Sis,
Attached is Mr. Hines letter. I need for you to put this letter on letterhead and
mail to him. “ Don’t forget to signed below.” Next I need for you to e-mail Dr.
Holt, shared with her that the application that you submitted in 2007 is “nail
and void.” Because while reading her comments you notice that the (the)
memo she sent out dated: September 10, 2009 in the “RE” section reads:
Critique of second draft of feasibility study to establish a practical nursing
program in the Commonwealth of Pennsylvania. Also let her know that you
no longer have the 2007 study.
With all due respect, you would like for this to be your first submission.
Thank you,
Tracey Parson
I will give you a telephone call this evening,
Rae
b. Talley referenced the same form letter for the Ronald H. Brown Charter
School advocating Allied Technical Institute of Philadelphia with a date of
September 17, 2009.
76. Allied Technical Institute of Philadelphia was closed effective April 30, 2012, by the
State Board of Private Licensed Schools as a result of compliance visits at the
school finding no student records, director qualifications or instructor qualifications.
77. Talley utilized her Commonwealth computer when providing consulting services to
Parson for Kiddie Kare Child Care & Education Center.
Talley, 13-007
Page 20
a. E-mails on Talley’s Commonwealth computer included an employee
handbook and employee orientation for Kiddie Kare Child Care & Education
Center.
b. The e-mails on Talley’s Commonwealth e-mail account had been forwarded
from an external account by Talley.
78. On June 9, 2009, Talley forwarded the following e-mail to her PDE state e-mail
account which included a draft of a Kiddie Kare Child Care & Education Center
employee handbook:
From: Talley, Rae
Sent: Tuesday, June 9, 2009 12:09 PM
To: Talley, Rae
Subject: Kiddie Kare Childcare Employee Handbook.docx
Logo
Employee Handbook
Kittie Kare
Childcare & Learning Center
“ Where Miracles Begin”
426 East Allegheny Avenue, Suite 1-A
Philadelphia, PA 19134
215-384-3417
Ms. Tracey Parson, Owner
Adopted: March 23, 2009
We are an Equal Opportunity Childcare Provider
79. Talley also maintained on her PDE computer a cover sheet for employee orientation
for Kiddie Kare Child Care & Education Center:
EMPLOYEE ORIENTATION
KIDDIE KARE CHILDCARE & LEARNING CENTER
426 East Allegheny Avenue
Suite 1-A
Philadelphia, PA 19134
Ms. Rae Talley
Education Consultant
Friday, June 30, 2009
10:00 AM – 5:00 PM
a. This was not part of Talley’s duties with PDE.
80. Talley served as a consultant to Parson \[with regard to Parson’s application to
participate in\] the Child and Adult Care Food Program (“CACFP”).
Talley, 13-007
Page 21
a. Talley’s actions included delivering the application to the appropriate PDE
officials and making at least one telephone call to PDE officials to inquire of
the grant’s status.
b. Talley performed these services for Parson during her Commonwealth work
hours.
81. The CACFP is administered at the federal level by the United States Department of
Agriculture and at the state level by PDE’s Division of Food and Nutrition.
a. The CACFP \[provides\] reimbursement for meals served to enrolled
participants in non-residential child or adult care facilities.
b. The primary intent of the program is to improve the diets of children and
adults and to develop healthful eating habits through the service of nutritious
meals and the provision of nutrition education activities.
82. Child and adult care facilities may participate in the CACFP if they are one of the
following:
a. Licensed, non-profit, non-residential child or adult care centers.
b. Licensed, for profit, non-residential child or adult care centers which receive
Title XIX or XX funding.
c. Licensed, for profit, non-residential child care centers where 25% of the
enrolled children or the licensed capacity are income eligible for free and
reduced meals.
d. Licensed, registered and approved family or group day care homes operated
in a residence.
e. Emergency shelters.
83. Parson filed her initial application for the CACFP with the PDE Division of Food and
Nutrition on September 14, 2009.
a. Parson was required to submit supporting documents to verify that Kiddie
Kare Child Care & Education Center qualified for the CACFP.
84. Talley assisted Parson with completing and submitting the CACFP application.
a. Talley provided this assistance as a paid private consultant.
85. On October 4, 2009, Talley sent the following e-mail to Parson regarding the
application to be submitted to PDE:
From: \[e-mail address redacted\]
Sent: Sunday, October 4, 2009 11:27 AM
To: alliedtech00@yahoo.com
Cc: Talley, Rae
Subject: 2-documents needed to complete the Food program application
DON’T FORGET!!!
Sis,
Please bring with you on Tuesday a copy of your 501(c) (3) and a copy of your
DayCare License. Even if you print what is in the computer will be fine.
Talley, 13-007
Page 22
Thanks,
See you Tuesday afternoon,
Rae
a. The e-mail was sent from a non-Commonwealth account.
86. In 2009, Susan Master was serving as the Chief of PDE’s Division of Food and
Nutrition.
87. Talley hand carried the CACFP application for Kiddie Kare Child Care & Education
Center to Master in or around October 2009.
a. Talley advised Master that Talley was assisting Parson with the CACFP
application.
88. On November 23, 2009, Parson was advised via e-mail by Marc Bender of PDE’s
Division of Food and Nutrition that Parson’s CACFP application was missing the
banking information necessary to process payments.
a. Immediately after receiving the e-mail from Bender, Parson forwarded the e-
mail to Talley to alert Talley of PDE’s request.
b. Talley, as a Commonwealth employee, had no responsibility for or oversight
of the CACFP.
89. On December 4, 2009, Parson’s Kiddie Kare Child Care & Education Center was
approved for participation in the CACFP under agreement number 378-51-910-7.
90. Kiddie Kare Child Care & Education Center began receiving payments from the
CACFP in December 2009.
a. The basis of the payments included the number of people receiving meals
and the type of meal, i.e., breakfast, lunch or dinner.
91. Between December 2009 and September 2012, Kiddie Kare Child Care &
Education Center received thirty-one payments totaling $543,830.50 from the
CACFP program ….
a. The payments to Kiddie Kare Child Care & Education Center were provided
through grants issued by the federal government.
92. Talley prepared invoices on her PDE computer for the work Talley performed for
Parson, Allied Technical Institute of Philadelphia, and Kiddie Kare Child Care &
Education Center as follows:
Date Description of Services Amount
3/5/2010 Consultant Services Rendered December 2009 - March 5, 2010 $2,500.00
3/15/2010 Reimbursement for ordering books for CDA and Nurse Aide Classes $1,600.00
Payment on renewal contract $1,000.00
Total Paid $2,600.00
Talley, 13-007
Page 23
5/22/2010 Payment for consulting services $2,500.00
6/26/2010 Payment for Consulting Services (Check postdated for June 20, 2010) $2,500.00
Additional services: Train ticket (credit card) $158.00
Nursing License renewal (credit card) $42.00
Total Paid $2,700.00
Payment for Consulting Services (replacing check dated June 26,
7/8/2010 2010) $2,500.00
Credit Card Usage $200.00
Payment for return check and overdrawn account $1,361.43
Total Paid $4,061.43
Payment for Consulting Services (replacing check dated June 26,
7/20/2010 2010) $2,500.00
(wired into account on July 20, 2010)
Total Paid $2,500.00
8/30/2010 Quarter payment due: $5,000.00
Payment for consulting services $3,400.00
Balance Due: $1,600.00
a. On October 8, 2010, Talley submitted another invoice to Parson which
resulted in a payment to Talley of $700.00 leaving a balance of $900.00.
93. The invoices prepared by Talley listed Consultant Services c/o Rae Talley,
\[residence address redacted\].
a. Talley billed Parson d/b/a Allied Technical Institute of Philadelphia and
Kiddie Kare Child Care & Education Center at the following address:
Ms. Tracy Parson
ATI & Kiddie Kare Childcare Center
426 E. Allegheny Avenue
Philadelphia, PA 19118
94. Between March 2009 and June 2010, payments from Allied Technical Institute of
Philadelphia and Kiddie Kare Child Care & Education Center totaling $17,000.00,
for consultation services, were deposited in Talley’s private bank account at Metro
Bank.
95. The PDE Division of Food and Nutrition commenced an audit of the CACFP for
Kiddie Kare Child Care & Education Center in or around January 2012.
a. The audit review was initiated due to allegations of questionable
recordkeeping by Parson and lack of verification of those actually receiving
meals.
b. The audit was initiated after PDE became aware that the federal government
was reviewing Kiddie Kare Child Care & Education Center’s use of federal
funds administered by PDE and had issued grand jury subpoenas to PDE for
records related to Parson and her related entities.
Talley, 13-007
Page 24
96. In early October 2012, PDE made the decision to discontinue Kiddie Kare Child
Care & Education Center’s participation in the CACFP.
97. As a result of Talley’s affiliation with Parson and her entities, Talley was reassigned
to the State Library on June 7, 2012.
98. On July 12, 2012, Patricia Landis, PDE Division Chief for the State Board of
Licensing, provided a statement that in part describes her communication with
Talley and Talley’s attempts to intervene on behalf of Parson in PDE’s revocation
\[sic\] of Allied Technical Institute of Philadelphia/Kiddie Kare Child Care & Education
Center:
Staff in the Division of Private Licensed Schools identified serious issues with the
facility and operation of Allied Technical Institute during a routine compliance visit in
August 2011. Staff was in regular communication with the school over the next
several months as enforcement action proceeded. During this time, I encountered
Rae Talley in the lobby of the Department of Education. Rae told me that Tracey
Parson, the director of Allied Technical Institute had been in to see her the day before
and had told her that John Galganovicz of my staff was being overly aggressive in
pursuing the enforcement action. Rae told me that I should remove John from the
case and she assured me that the school would comply with our requirements if
someone else would just explain the requirements clearly and work with the school. It
seemed strange to me that Rae would meet with the school director and insert herself
into the school’s issues with the Private Licensed Schools Division since she no longer
worked with the PLS. But I reviewed the work that John Galganovicz had done on the
school and determined that he was handling the case appropriately. I did not reassign
the case.
99. On August 10, 2012, Diana Hershey, Director of Human Resources, and Jill Hans,
Deputy Secretary for the Office of Postsecondary Education of PDE, held a fact
finding meeting with Talley for the purpose of determining Talley’s involvement with
Parson/Allied Technical Institute of Philadelphia.
a. During the fact finding interview, Talley admitted to contracting with
Parson/Allied Technical Institute of Philadelphia and to receiving
compensation.
b. Talley also admitted to writing a false letter to enable Allied Technical
Institute of Philadelphia to receive government funding.
100. \[The following is a summary of questions asked by Hershey and Hans and Talley’s
responses\] during the fact finding meeting on August 10, 2012:
a.
Q When did you start employment with the dept. of education?
A Oct 2007
Q You notified me on June 5, 2012 at around 9:00 AM that Federal Agents came to
Your Home on the evening of June 4, 2012 – correct?
A Yes
Q Why were agents at your home?
A Shared with Deb involving Federal investigation on contracting she was working with.
She was doing private school & day care. Rae was contracting for day care owner of
day care – Tracey Parson – owner of day care + of the school – Allied Technical.
Q Was it related to your work with Berean Institute (BI) and Allied Technical Institute
(ATI)?
A Not with BI, only with ATI – all related to Kiddie Kare day Care – Phila. Allied Tech
School investigation based on Kiddie Kare Day Care. Day care started investigation –
illegal acts found through Allied Tech (runs nursing school ATI – nursing school)
Tracey Parson is owner of both. 2 Fed agents asked Rae about Kiddie Kare. Rae met
with federal authorities and gave information about close out Dr. Lorraine Poole-
Naranjo. Private licensed (she knows about close out because works in private
licensed schools, cosmetology & barbering program.
Talley, 13-007
Page 25
Q Did you engage in employment with BI or any person or business related to that entity
while working for the Dept?
A No on my junk drive (flash drive) Rae prepared contract with BI, but it did not come to
fruition. Active contracts with ATI + Kiddie Kare.
Q If so, what were dates of employment with BI?
A None
Q How much were you paid for your consultant work with BI?
A None. Rae sent invoices but never received payment. Lorraine wrote (1) check for
$2,000 to Rae Talley – Rae didn’t cash it – Rae gave check back to Lorraine – Rae
provided consultation via verbal, no physical work for Rae. Rae knew she didn’t have
the $’s Citizens Bank Rae went to the bank and the $’s not in account + Rae mailed
the check back to Dr. Poole.
Q Did you engage in employment with ATI or any person or business related to that
Entity while working for the Dept. of Education?
A Yes, employment Kiddie Kare. To help start Day Kare – She did manuals (each listed
on contract) Tracey Parson is owner.
Q If so, what were the dates of employment with ATI?
A 1 ½ years – end of 2009 to mid 2011. Tracey called Rae asking questions – after
contract expired. Was paid for verbal consultation – no physical work. Rae felt she
was developing a bond. Tracey asked Rae to order supplies – so Rae ordered the
supplies for her. Rae went to Burlington to get supplies (put on Rae’s credit card +
Tracey paid her back.)
Q How much were you paid for your consultant work with ATI?
A Quarterly paid for $15,000 – to $5,000 each quarter was arrangement. Rae told
Tracey to pay her (Rae) as she was able. Tracey paid Rae as she could. Ex. $2,500
today + $2,500 later. All $15,000 was paid by end of year. If Rae bought something
(supply) Tracey paid her back. Rae knew Tracey had a food program. Training with
PATTAN – Rae assisted Tracey in how to set up the food program + develop
materials. Food program was for children’s day care. Tracey had a contact
th
person on the 4 floor (Karen) dark hair (Division of Food). Tracey didn’t fully
understand & Rae interpreted. Rae asked Karen & then explained to Tracey. $15,000
was total and paid for all of this.
Q Until April 27, 2009, was it your job at the Dept. of education to oversee schools
licensed by the State Board of Private Licensed Schools? Did you work in the Division
of Private Licensed Schools for Patty Landis during this time?
A Yes + Yes
Q Did you monitor activities of BI and ATI as part of your job as an Education
Administration Specialist working in the Division of Private Licensed Schools?
A No ATI – No they were with John. BI she was involved in the closing of BI. Worked
with Patty Landis & Kate Shaw – closed down due to past administration –
mismanagement of funds, student complaints, ties to legislators, representatives. This
school received state funding back to Gov. Thornburgh & state rep oversaw the
school (Blondid) she was the leader of school. State reps made sure school got $’s to
keep school open. School is in North Phila. – rebuild community + be a beacon for
the community. Ms. Blondid got ill & state rep stepped down + went to school + took
over. All reps worked closely. The gentleman that stepped down (Program was
mismanaged + funds). There was a governing board. Dr. Poole was a member of the
Board – a cooperative – Rae used Dr. Poole to go through. Judge Braxton became un
nd
cooperative (he was governing, he was president of the Board). Rae was in on the 2
half of the closing. Race card was flying with politicians. Race card on Board to show
the race card was not being played – Kate + Patty said they needed a neutral person
– Rae’s interpretation about race card. Full hearing + 2010 BI was fully closed – in
state board – close out process – This is how Rae & Dr. Poole got to know each
other.
Q For both schools how often were you paid? When did you receive your first payment,
when did you receive your most recent payment?
st
A Not 2 schools. 1 payment later part of 2009 when out of private licensed.
Q Did you file a supplementary employment form for your work at BI & ATI as required?
A No – not intentional. 2 deaths – mother + grandmother. Yes she knows she has to do
nd
forms – didn’t. (Grandma 2009 May Mother’s day weekend) Mother had 2 stroke 6
months Dec 11, 2009). Too much going on. She has gone through counseling. She
was going to commit suicide. Not to trying to use their deaths to get sympathy, losing 2
people back to back hurt. She didn’t care what happened. Husband went through
SEAP to help handle Rae.
Q Did you use Commonwealth’s and PDE’s equipment to engage in business activities
for personal financial gain while conducting work for BI and ATI?
A Yes – used laptop, used fax machine.
Q Did you prepare contracts and invoices during working hours at PDE and save them
on your work computer in the course of your employment with BI and ATI?
Talley, 13-007
Page 26
A Used laptop + did it at home. No prepare during work hours (looked at during
worktime). Used laptop which is PDE issued. Flash drive is her own. Did not get IT
approval to use personal flash drive – didn’t know she had to.
Q Is this a copy of your agreement with BI? It reads that you were to assist BI in
renewing its license after a two year wait? Did you provide that assistance to BI? Did
you know that the waiting period is 5 years?
A Board agreed to 5 years to reapply, but she didn’t help then – only verbally. Dr.
Poole’s plan was to wait out the 5 years. Rae said to start 2015.
Q Is this a copy of your ATI agreement? It reads “Continuation of Services.” When did
the original services begin? When did the continuation of services begin? Did you
prepare these documents during working hours at PDE and save them on your work
computer?
st
A 1 agreement same as total contracts, includes original + continuation, $15,000 plus
reimbursements. There is an original agreement with federal agents.
Q Did you use Commonwealth’s equipment to create false and misleading Documents
regarding the Ronald Brown charter school in the course of your employment with
ATI?
A Yes – closed in 2005. I don’t know why I did it – ignorance as a former school
operator. Tracey talked for Tracey’s grant – getting money from Workforce
Development (at Labor & Industry). Rae had, Ron Brown Charter School closed Aug
16, 2007. Tracey had to have letter of support on School letterhead, but school is
closed – Rae knows now it was all a lie. Total out of her character. Dr’s Office
(Physician) indicated how persons would come to clinic for observation, Tracey’s
nurse aide students. Orientation for instructors, shared proper dress. Start life over,
work with students. Reading levels were low. Students older, but low grade level.
Q Did you report all earned income on your State of Financial Interest forms that are
required to be filed by the Commonwealth?
A No
Q Did you participate in the decision to contract with the Community College of Phila to
provide assistance to BI Institute, an entity from which you were receiving payments
for consulting or other services?
A No
Q Did you participate in the decision to contract with the Community College of Phila to
provide assistance to BI Institute, an entity from which you were receiving payments
for consulting or other services?
A Not BI – As far at Comm. College Day Kare. Certified Child Development Associate.
Rae told her she (Tracey) that she needed CDA’s in child care & recommended to
Tracey that she needs CDAs. Rae called colleges that were in close proximity in
Career Development. They didn’t have records at Comm. College, if wanted quality
program, need CDAs.
Q You indicated at our meeting on June 5 that you had “distanced yourself” from Tracey
Parsons, the Director of ATI, correct?
A Yes/ haven’t talked to Tracey in months – Tracey called Rae in beginning May 2012 –
just to talk. To see how (Rae) was doing. Tracey knew Rae wasn’t helping anymore.
Tracey said haven’t seen you in awhile. Tracey has everything she needs. Rae told
Tracey she was stopping because she had staff + Tracey still called Rae to ask her
thst
questions. Distanced self after March 2011. June 4 was 1 Rae knew
something was going on with Investigation.
Q Were you writing letter or documents on Tracey’s behalf to Board staff at or near the
time of our meeting and communicating with Tracey via email?
A No – school closed 2007 – got letterhead from Florence. Florence had a holding file
of materials that she sent. Florence knew to save files after no longer need letters.
Tracey sent Rae docs + Rae edited for her during work days & nights around 2010 &
2011. Tracey had a repository + wanted Rae to talk to them to mend relationship.
Cooking school in Repository on Broad St., talked to owner (don’t recall name). Rae
doesn’t know if records got there, her Secretary from her school – Florence Wright –
She was secretary at the school at that time. Tracey – Registered CAN – Rae met
Tracey through training at PDE. New Directions Training. Tracey came up for Board
Approval. Process + went with John on observation piece.
Q You did not mention at the meeting that you worked for BI. Why? You filed this
supplementary employment request in December 2008 to run for school board
correct?
A Because didn’t work for them (BI) – ATI.
101. Subsequent to the fact finding meeting of August 10, 2012, Talley was terminated
from her position with PDE effective the close of business August 20, 2012.
Talley, 13-007
Page 27
102. The termination letter dated August 10, 2012, signed by Hershey, summarized the
information that was obtained from Talley during the fact finding meeting on August
10, 2012, and the reasons for the termination:
The reason for your removal relates to your contracting activities for your personal
financial gain with private licensed schools, specifically Allied Technical Institute (ATI)
and Berean Institute (BI). These schools are regulated by the PA Department of
Education and specifically by the Division of Higher and Career Education (named the
Division of Private Licensed Schools until July 2011), where you worked from October
2007 through April 2009.
Said activities were in direct conflict with you job and the interests of the department.
Your misconduct is in violation of the Governor’s Office Executive Order Number
1980-18, the Governor’s Code of Conduct (“Code of Conduct”). Additionally, you did
not file a request for supplementary employment and you failed to include the above
mentioned contracted employment on your Statement of Financial Interest pursuant
to the Governor’s Code of Conduct and your Ethics Financial Disclosure Statement.
A fact finding meeting was held with Talley on August 10, 2012 to discuss your
contracted activities with and your relationship to the referenced private license
schools. At this meeting you admitted that you had contracted with and received
compensation from ATI. In furtherance of your improper support of ATI you wrote a
false and misleading letter dated June 6, 2009 on Ronald Brown Charter School
(RBCS) letterhead. This letter falsely indicated that you were an administrator for
RBCS at that time. You admitted that RBCS closed in 2007 and that you wrote the
letter so that ATI could receive government funding. Further, you admitted that you
created a contract and invoices for BI on your work computer which indicated that you
were a paid Consultant for the School. As explained above, these activities are clear
violations of the Code of Conduct and other obligations to the Department.
103. Talley was only able to contract with Parson/Kiddie Kare Child Care & Education
Center/Allied Technical Institute of Philadelphia as a result of her public position.
a. Talley became aware of Parson through her public position.
b. Parson contracted with Talley only because of Talley’s position with PDE.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT TALLEY USED HER
PUBLIC POSITION FOR PRIVATE GAIN IN RELATION TO AMERICA HEALTH CARE,
INC.
104. Dr. Yemi Oladimeji (“Oladimeji”), a medical doctor, owns and operates a kidney
dialysis center in Baltimore, Maryland.
a. Oladimeji has been a medical doctor for approximately 16 years.
105. On March 26, 2008, Oladimeji filed Articles of Incorporation with the Pennsylvania
Department of State for America Health Care, Inc.
a. The purpose for creating the corporation was to start a Medical Assistant
School Program in the state of Pennsylvania.
b. The corporate address for the school was 247 Mills Street, Bristol, PA
19007.
106. In or around March 2008, Oladimeji applied for a license with the State Board of
Private Licensed Schools under the name of America Health Care, Inc.
a. Oladimeji was issued a license by the State Board of Private Licensed
Schools on May 2, 2008, under the name of America Health Care, Inc.
Talley, 13-007
Page 28
107. Talley was PDE’s Education Administration Specialist responsible for conducting an
inspection of America Health Care, Inc.
a. An inspection was required in order for PDE to authorize a school to open.
b. Talley gave the school a satisfactory rating which enabled Oladimeji to open
\[America\] Health Care, Inc.
108. Subsequent to the opening of the school, Oladimeji determined that in order to
attract more students, a nursing school should be added to \[America\] Health Care,
Inc.
109. In or around November 2008, Oladimeji contacted the offices of the State Board of
Private Licensed Schools and met with Talley.
a. Oladimeji informed Talley he was also looking to obtain a license from the
State Board of Private Licensed Schools to operate a nursing school.
b. Talley advised Oladimeji that regulating nursing schools was the
responsibility of the Board of Nursing, Pennsylvania Department of State.
1. Talley told Oladimeji that PDE did not regulate nursing schools.
110. During the meeting with Oladimeji, Talley, while in her official capacity as a PDE
Education Administration Specialist, offered to serve as a consultant for Oladimeji
before the State Board of Nursing.
a. Talley proposed assisting Oladimeji by drafting the curriculum to be
submitted for approval from the State Board of Nursing.
111. Oladimeji agreed to utilize Talley as a consultant due to Talley’s position with PDE
and Oladimeji’s belief that Talley knew matters related to the nursing curriculum.
112. No formal written contract was entered into between Oladimeji and Talley.
a. Talley usually provided services as a consultant for Oladimeji on the
weekends.
1. Talley performed services at the school offices in Bristol,
Pennsylvania.
b. No set consulting fee was agreed upon between Talley and Oladimeji.
c. Oladimeji based payments to Talley as a consultant on the number of hours
she worked.
113. Oladimeji began making payments to Talley as a consultant in or around January
2009.
a. When making payments to Talley, Oladimeji would identify in the memo
portion of the checks that the purpose of the payments was consulting.
114. In or around June 2009, Oladimeji appeared before the State Board of Nursing to
obtain approval to open a nursing school.
a. The State Board of Nursing denied Oladimeji’s application because the
curriculum did not meet the standards for a nursing school.
Talley, 13-007
Page 29
b. Oladimeji was advised by the State Board of Nursing that a nurse or
someone with a nursing background should be utilized as a consultant to
assist with the curriculum development.
1. Talley did not have any background or expertise in nursing.
115. After the application Talley prepared was denied by the State Board of Nursing,
Oladimeji terminated the consulting agreement with Talley.
116. Between February 17, 2009, and June 23, 2009, Oladimeji issued eight (8)
payments to Talley totaling $7,915.00.
117. The payments made by Oladimeji were deposited to accounts at Metro Bank for
which Talley has signature authority.
118. From February 17, 2009, to June 23, 2009, payments from America Health Care,
Inc. in the total amount of $7,915.00 were deposited to Talley’s accounts.
119. Talley possessed exclusive access and information pertaining to America Health
Care, Inc. due to the fact she conducted an inspection and issued a license to same
as an employee of PDE.
a. Because of Talley’s prior contact with America Health Care, Inc., she was
contacted by Oladimeji for additional assistance with state licensing matters.
b. Talley offered to serve as an independent contractor to America Health
Care, Inc., to which Oladimeji agreed because of her past dealings with
America Health Care, Inc. as a PDE employee.
c. But for Oladimeji seeking assistance through PDE, Talley would not have
been hired/contracted by America Health Care, Inc. to serve as an
independent contractor.
d. Talley persuaded Oladimeji that she could use her influence as a PDE
employee to assist in obtaining licensing through the Pennsylvania
Department of State.
e. Talley was compensated by America Health Care, Inc. for the efforts.
120. Talley realized a private pecuniary benefit when she utilized her positions as an
Education Administration Specialist in the Bureau of Post-Secondary Services and
as a Higher Education Associate 2 with the Bureau of School Leadership and
Teacher Quality for PDE in order to serve as a contracted consultant for entities she
either regulated as an employee with PDE or otherwise gained access to through
the performance of her duties with PDE.
a. Talley served as a consultant for America Health Care, Inc., representing
same before the Pennsylvania Department of State, Board of Nursing, only
because of her position with PDE as an Education Administration Specialist.
Talley first conducted an inspection and issued a license to America Health
Care, Inc., allowing it to operate a Medical Assistant School with \[sic\] the
State Board of Private Licensed Schools.
b. Talley was subsequently hired as a consultant by America Health Care, Inc.
due to her employment with PDE and the influence Oladimeji believed Talley
possessed with the State Board of Nursing.
Talley, 13-007
Page 30
c. Talley served as a consultant for the Berean Institute only because of her
position as an Education Administration Specialist and an understanding
between Talley and the Berean Institute that Talley was to use her influence
as a PDE employee to assist with the creation of a daycare center and
accreditation for a cosmetology program and charter school.
d. Talley served as a consultant for Allied Technical Institute of Philadelphia
and Kiddie Kare Child Care & Education Center only as a result of Talley’s
interaction with Parson of Allied Technical Institute of Philadelphia through
the performance of her duties with PDE as an Education Administration
Specialist.
e. Talley utilized her position with PDE by interfering with inspections that were
being conducted by staff of the PDE Division of Private Licensed Schools at
Allied Technical Institute of Philadelphia by requesting of PDE supervisors
that the inspections be reassigned in order to allow Allied Technical Institute
of Philadelphia to remain open.
f. In the performance of her PDE duties, Talley hand-delivered applications for
Kiddie Kare Child Care & Education Center to the PDE Division of Food and
Nutrition and provided guidance to Kiddie Kare Child Care & Education
Center in completing its CACFP applications.
g. Talley utilized Commonwealth resources, including her PDE laptop computer
and fax machine, along with her PDE e-mail account, to operate her private
consulting business.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS REGARDING TALLEY’S
FAILURE TO DISCLOSE ALL SOURCES OF INCOME ON HER STATEMENTS OF
FINANCIAL INTERESTS FOR THE 2008, 2009, 2010 AND 2011 CALENDAR YEARS
AND HER FAILURE TO TIMELY FILE A 2012 CALENDAR YEAR STATEMENT OF
FINANCIAL INTERESTS.
121. Talley, as an Education Administration Specialist and Higher Education Associate 2
with PDE, was annually required to file a Statement of Financial Interests which
includes financial information from the prior calendar year.
122. Statements of Financial Interests on file with PDE include the following filings by
Talley covering the calendar years 2007 through 2012:
Calendar Year: 2012
Filed: Form electronically submitted by Rae L.
Talley (00648304) 6/3/2013 9:00:56 AM
on SEC-1 REV. 01/13
Public Position: Highr Ed Assoc. 2 Tchr Ed
Governmental Entity: Education
Occupation: Educator
Real Estate Interests: None
Creditors: None
Direct or Indirect Sources of
Income: Education
333 Market Street
Harrisburg, PA 17105
Education
333 Market Street
Talley, 13-007
Page 31
Harrisburg, PA 17105
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: PA Department of Education
333 Market Street
Harrisburg, PA
Position Held – Employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - Employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - Employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - Employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - Employee
Financial Interest in Any Legal
Entity in Business for Profit: None
Business Interest Transferred to
Immediate family Member: None
Calendar Year: 2011
Filed: Form electronically submitted by Rae L.
Talley (00648304) on 1/12/2012 at
8:38:49 AM on SEC-1 REV. 01/12
Public Position: High Ed Assoc. 2 Tchr. Ed.
Higher Ed Associate 2 Tchr. Ed
Governmental Entity: Education
Occupation: Educator
Real Estate Interests: None
Creditors: None
Direct or Indirect Sources of
Income: Education
333 Market Street
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: PA Department of Education
333 Market Street
Harrisburg, PA
Position Held – employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
PA Department of Education
333 Market Street
Talley, 13-007
Page 32
Harrisburg, PA
Position Held - employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
Financial Interest in Any Legal
Entity in Business for Profit: None
Business Interest Transferred to
Immediate family Member: None
Calendar Year: 2010
Filed: Form electronically submitted by Rae L.
Talley (00648304) on 2/14/2011 10:23:30
AM on SEC-1 REV. 01/11
Public Position: High Ed Assoc. 2 Tchr. Ed.
Higher Ed Assoc. 2 Tchr. Ed.
Governmental Entity: Education
Occupation: Educator
Real Estate Interests: None
Creditors: None
Direct or Indirect Sources of
Income: Education
Education
Pennsylvania School Employees
Retirement System, Harrisburg, PA
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
Financial Interest in Any Legal
Entity in Business for Profit: None
Business Interest Transferred to
Immediate family Member: None
Calendar Year: 2009
Filed: Form electronically submitted by Rae L.
Talley (00648304) on 4/28/2010 at
8:59:14 AM on SEC-1 REV. 01/10
Public Position: Higher Ed. Assoc 2 Tchr. Ed.
Education Administration Spec.
Governmental Entity: Education
Occupation: Educator
Talley, 13-007
Page 33
Real Estate Interests: None
Creditors: None
Direct or Indirect Sources of
Income: Education
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
Financial Interest in Any Legal
Entity in Business for Profit: Tsunami Strikes Joint Venture – 20%
1050 Overlook Drive
Pottstown, PA 19464
Business Interest Transferred to
Immediate family Member: None
Calendar Year: 2008
Filed: Form electronically submitted by Rae L.
Talley (00648304) on 3/9/2009 at
12:35:14 PM on SEC-1 REV. 01/09
Public Position: Ed Admin Spcst
Governmental Entity: Education
Occupation: Education Administration Speci
Real Estate Interests: None
Creditors: None
Direct or Indirect Sources of
Income: Education
333 Market St.
Harrisburg, PA 17126-0333
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: PA Department of Education
333 Market Street
Harrisburg, PA
Position Held - employee
Financial Interest in Any Legal
Entity in Business for Profit: None
Business Interest Transferred to
Immediate family Member: None
Calendar Year: 2007
Filed: Form electronically submitted by Rae L.
Talley (00648304) on 3/28/2008 at
8:52:39 AM on SEC-1 REV. 01/08
Public Position: Ed Admin Spcst
Governmental Entity: Education
Talley, 13-007
Page 34
Occupation: Educational Specialist
Real Estate Interests: None
Creditors: None
Direct or Indirect Sources of
Income: PA Department of Education
333 Market St.
Harrisburg, PA 17126-0333
Rejoice Inc. Foster Care & Adoption
Agency
1800 State Street
Harrisburg, PA
The Patriot News Company
812 Market Street
Harrisburg, PA
PA Public School Employees’ Retirement
System (Pension)
th
5 North 5 Street
Harrisburg, PA 17101
Gifts: None
Transportation, Lodging,
Hospitality: None
Office, Directorship or
Employment in Any Business: PA Department of Education
333 Market Street
Harrisburg, PA
Position Held – employee
Rejoice INC. Foster Care & Adoption
Agency
1800 State Street
Harrisburg
Position Held – employee
The Patriot News Company
Position Held – Contractor
PA State Public Schools Employees
Position Held – Retired Educator
Financial Interest in Any Legal
Entity in Business for Profit: None
Business Interest Transferred to
Immediate family Member: None
123. In 2009, Talley received payments in excess of $1,300.00 from the Berean Institute,
Allied Technical Institute of Philadelphia, and American Health Care, Inc., which
were not disclosed on her Statement of Financial Interests filed for the 2009
calendar year.
124. Talley received payments from Kiddie Kare Child Care & Education Center in
excess of $1,300.00 in 2010 which were not disclosed on the Statement of
Financial Interests she filed with PDE for the 2010 calendar year.
125. Talley failed to timely file a Statement of Financial Interests form for the 2012
calendar year.
III.DISCUSSION:
As an Education Administration Specialist with the Pennsylvania Department of
Education (“PDE”) from October 1, 2007, until April 27, 2009, and as a Higher Education
Associate 2 with PDE from April 27, 2009, until June 7, 2012, Respondent Rae Talley, also
Talley, 13-007
Page 35
referred to herein as “Respondent,” “Respondent Talley,” and “Talley,” 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.
The allegations are that Talley violated Sections 1103(a), 1104(a), and 1105(b) of
the Ethics Act: (1) when she used the authority of her public position to obtain a private
pecuniary benefit for herself and/or a business with which she is associated, when she
solicited and received payments from entities she regulated as an employee of PDE,
and/or when she otherwise utilized the authority of her public position/public employment
to influence/attempt to influence PDE, the Pennsylvania Department of State and/or
employees of PDE/the Pennsylvania Department of State, in a manner to assist or
otherwise obtain improper favoritism or preferential handling of matters before PDE/the
Pennsylvania Department of State for entities to which she served as an
independent/private consultant, including the Berean Institute, Allied Technical Institute of
Philadelphia (Nursing on Demand Education & Training Center), Kiddie Kare Child Care &
Education Center, Inc., Lorraine Naranjo-Poole/Naranjo Associates, and America Health
Care, Inc.; (2) when she failed to disclose on Statements of Financial Interests (“SFIs”) for
the 2008, 2009, 2010, and 2011 calendar years her receipt of direct/indirect income from
all sources; and (3) when she failed to file an SFI for the 2012 calendar year.
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
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.
Talley, 13-007
Page 36
Section 1104(a) of the Ethics Act provides that each public official/public employee
must file an SFI for the preceding calendar year, each year that he holds the position and
the year after he leaves it.
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.
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.
Talley was employed as an Education Administration Specialist with PDE from
October 1, 2007, until April 27, 2009, and as a Higher Education Associate 2 with PDE
from April 27, 2009, until June 7, 2012. Talley was assigned to the State Library from June
7, 2012, until August 20, 2012.
The Private Licensed Schools Act, Act 174 of 1986, created the State Board of
Private Licensed Schools within PDE. The State Board of Private Licensed Schools
licenses and regulates private career and trade schools. As an Education Administration
Specialist with PDE, Talley worked in PDE’s Division of Private Licensed Schools.
On November 13, 2007, Talley filed a supplementary employment request with PDE
to work as a financial consultant, with duties that included counseling families and
developing debt consolidation plans to assist them with their finances. The hours were to
be from 6:00 p.m. until 10:00 p.m. and approximately 10-20 hours per week. Talley’s
request was approved with the conditions that she may not be involved with her
supplementary employment during work hours or use Commonwealth owned or leased
equipment, material, or facilities in connection with her supplementary employment.
Re: The Berean Institute
As an Education Administration Specialist with PDE, Talley was assigned to inspect
and review private licensed schools. In or about January 2008, Talley was assigned to
inspect and review the Berean Institute, which was established in 1899 in Philadelphia,
Pennsylvania, to provide vocational and business education to African-Americans. The
Berean Institute became known for its cosmetology, court reporting, data processing, and
stenography programs.
The Berean Institute leased space in Philadelphia through PDE from about
December 1, 1980, through November 30, 2010. Up until 2007, the Berean Institute had a
separate line item budget for funding from PDE that annually totaled approximately 1.5
million dollars. In 2007, Commonwealth funding for the Berean Institute was eliminated,
and in or around November 2007, the Berean Institute lost accreditation due to a lack of
tuition-paying students.
In or around July 2008, efforts were initiated by PDE’s Division of Private Licensed
Schools to close the Berean Institute. At that time, Talley was assigned to oversee the
Berean Institute, and she was responsible for assisting Dr. Lorraine Poole-Naranjo (“Dr.
Naranjo”), the President of the Board of Trustees of the Berean Institute, with the closeout
of the Berean Institute. On July 15, 2008, Talley sent an e-mail to Dr. Naranjo and PDE
Deputy Secretary Dr. Kathleen Shaw (“Deputy Secretary Shaw”) regarding the closeout of
the Berean Institute. In her e-mail, Talley stated that it was her responsibility to work
closely with Dr. Naranjo during the process of closing the Berean Institute, including the
Talley, 13-007
Page 37
placement of its cosmetology and barber students at another institution within the
Philadelphia area.
On July 16, 2008, the Commissioner of the Bureau of Professional and
Occupational Affairs within the Pennsylvania Department of State extended a ninety-day
grace period to the Berean Institute if it could continue to function at its current location or
if it could find a new temporary location. The Berean Institute would continue operating a
cosmetology program during the grace period.
Dr. Naranjo discussed with Talley the possibility of finding additional funding
sources for the Berean Institute, including receiving additional funding from PDE. In
conjunction with community colleges across the state, PDE provides funding to private
licensed schools offering programs that community colleges do not have available. Such
funding is provided through community colleges from grants provided by PDE.
Talley advised her immediate supervisor, Patricia Landis, Division Chief for the
Division of Higher and Career Education (“Division Chief Landis”), and Deputy Secretary
Shaw about her discussions with Dr. Naranjo regarding additional funding for the Berean
Institute. Deputy Secretary Shaw made efforts to locate additional funding for the Berean
Institute through the Community College of Philadelphia (“CCP”) and had discussions with
officials from CCP about working with PDE to provide $75,000 in funding to help the
Berean Institute transition to closure. On or about August 19, 2008, Talley advised Dr.
Naranjo that efforts were being made by PDE officials to obtain a grant for the Berean
Institute.
On or about September 1, 2008, a Grant Agreement (“Agreement”) was entered into
between PDE, through CCP, and the Berean Institute. The Agreement provided $75,000
in grant funds to be used by the Berean Institute to defray costs incurred from August 1,
2008, through September 30, 2008, for services required to provide training to currently
enrolled Berean Institute cosmetology students and to insure that the student records and
other official records of the Berean Institute were secured. On September 24, 2008, Dr.
Naranjo e-mailed Deputy Secretary Shaw, Division Chief Landis, and Talley, expressing
thanks for the grant.
On or around January 1, 2009, Talley approached Dr. Naranjo about serving as a
consultant to assist Dr. Naranjo’s efforts to continue operating the Berean Institute. Talley
approached Dr. Naranjo at or about the time that Talley, in her public position with PDE,
was responsible for regulating the Berean Institute and was participating in securing
funding for the Berean Institute. After being contacted by Talley, Dr. Naranjo entered into
a verbal agreement with Talley to utilize her as a consultant for the Berean Institute. Dr.
Naranjo hired Talley as a consultant as a result of Talley’s position as an Education
Administration Specialist with PDE and her past dealings with Dr. Naranjo to help keep the
Berean Institute open, including her assistance in securing funding for the Berean Institute.
Talley was hired with the understanding that she was to utilize her position with PDE to
help establish a day care center at the Berean Institute, obtain from the Pennsylvania
Department of State accreditation for a Cosmetology and Barbering Program on behalf of
the Berean Institute, and assist with the establishment of a charter school at the Berean
Institute. Talley never submitted a supplementary employment request to PDE to serve as
a consultant for either the Berean Institute or Dr. Naranjo.
On January 10, 2009, the State Board of Private Licensed Schools determined that:
(1) the Berean Institute failed to show cause why its license should not be revoked; (2) the
Berean Institute’s license should be revoked; and (3) the Berean Institute should begin
taking steps necessary to teach out any remaining students and to transfer its records to
its designated records repository. Talley had responsibility for the teach out of the Berean
Institute.
Talley, 13-007
Page 38
On January 15, 2009, Talley submitted an invoice in the amount of $5,000.00 to Dr.
Naranjo for consulting work from January 1, 2009, through January 31, 2009. Talley sent
the bill to Dr. Naranjo’s home address, and payment was to be made to Talley at her own
home address. Talley continued to be involved with the Berean Institute after she became
a consultant for it, as reflected by PDE e-mails dated January 21, 2009, regarding the
Berean Institute’s lease. Talley, in her capacity as a public employee, was assisting Dr.
Naranjo/the Berean Institute while being compensated by the Berean Institute as a
consultant.
Talley billed the Berean Institute a total of $15,000.00 for consultant services
between January 1, 2009, and March 31, 2009, at the same time she had responsibility for
oversight of the Berean Institute. On or about February 24, 2009, Talley received a
$2,000.00 payment from Dr. Naranjo as partial payment for consulting services rendered in
February 2009. A check in the amount of $3,000.00 that Talley received from Dr.
Naranjo/the Berean Institute in February 2010 was subsequently returned for insufficient
funds.
Dr. Naranjo entered into the verbal consulting agreement with Talley based on Dr.
Naranjo’s understanding that Talley was still with the Division of Private Licensed Schools.
Talley concealed from Dr. Naranjo the fact that she had changed positions with PDE in
April 2009 and was no longer with the Division of Private Licensed Schools, where Talley
would have been able to better utilize her PDE position to help the Berean Institute. Dr.
Naranjo did not become aware that Talley had changed positions with PDE until around
June 2012. No record exists of Talley ever completing any of the services she verbally
agreed to provide to Dr. Naranjo/the Berean Institute.
Re: America Health Care, Inc.
Dr. Yemi Oladimeji (“Dr. Oladimeji”), a medical doctor, owns and operates a kidney
dialysis center in Baltimore, Maryland. On March 26, 2008, Dr. Oladimeji filed Articles of
Incorporation with the Pennsylvania Department of State for America Health Care, Inc.
The purpose for creating the corporation was to start a Medical Assistant School Program
in Pennsylvania.
In or around March 2008, Dr. Oladimeji applied with the State Board of Private
Licensed Schools for a license for a school under the name of America Health Care, Inc.
On May 2, 2008, the State Board of Private Licensed Schools issued Dr. Oladimeji a
license for a school under the name of America Health Care, Inc. Talley was PDE’s
Education Administration Specialist responsible for conducting an inspection of America
Health Care, Inc., and she gave the school a satisfactory rating, which enabled Dr.
Oladimeji to open the school.
Subsequent to the opening of the school, Dr. Oladimeji determined that in order to
attract more students, a nursing school should be added to America Health Care, Inc. In
or around November 2008, Dr. Oladimeji contacted the offices of the State Board of Private
Licensed Schools and met with Talley. Dr. Oladimeji informed Talley that he was also
looking to obtain a license from the State Board of Private Licensed Schools to operate a
nursing school. Talley advised Dr. Oladimeji that PDE did not regulate nursing schools
and that regulating nursing schools was the responsibility of the Board of Nursing of the
Pennsylvania Department of State (“State Board of Nursing”). During the meeting with Dr.
Oladimeji, Talley, while in her official capacity as a PDE Education Administration
Specialist, offered to serve as a consultant for him before the State Board of Nursing.
Talley proposed assisting Dr. Oladimeji by drafting the curriculum to be submitted for
approval from the State Board of Nursing, and she persuaded him that she could use her
influence as a PDE employee to assist in obtaining licensing through the Pennsylvania
Department of State. Dr. Oladimeji agreed to utilize Talley as a consultant due to her
position with PDE, her past dealings with America Health Care, Inc. as a PDE employee,
Talley, 13-007
Page 39
and his belief that Talley knew matters related to the nursing curriculum and possessed
influence with the State Board of Nursing.
Talley usually performed services as a consultant for Dr. Oladimeji at the school
offices in Bristol, Pennsylvania, on weekends. Dr. Oladimeji and Talley did not enter into a
formal written contract, and they did not agree on a set consulting fee. In or around
January 2009, Dr. Oladimeji began making payments to Talley based on the number of
hours she worked. Between February 17, 2009, and June 23, 2009, Dr. Oladimeji issued
eight payments totaling $7,915.00 to Talley.
In or around June 2009, Dr. Oladimeji appeared before the State Board of Nursing
to obtain approval to open a nursing school. The State Board of Nursing denied Dr.
Oladimeji’s application for a nursing school because the curriculum did not meet the
standards for a nursing school. The State Board of Nursing advised Dr. Oladimeji that a
nurse or someone with a nursing background should be utilized as a consultant to assist
with the curriculum development. Talley did not have any background or expertise in
nursing, and Dr. Oladimeji terminated the consulting agreement with her after the State
Board of Nursing denied his application for a nursing school.
Re: Allied Technical Institute of Philadelphia and Kiddie Kare Child Care & Education
Center, Inc.
On January 5, 2007, Tracey Parson (“Parson”) registered a fictitious name with the
Pennsylvania Department of State, Corporation Bureau, for a business named “Nursing on
Demand Education & Training Center” (“NODETC”). On November 15, 2007, the State
Board of Private Licensed Schools issued a license to NODETC. On or around May 5,
2008, Parson advised the State Board of Private Licensed Schools that NODETC intended
to use the alternate name of Allied Technical Institute of Philadelphia (“Allied Technical
Institute”). On August 15, 2008, the State Board of Private Licensed Schools issued a
license to Allied Technical Institute. Allied Technical Institute offered educational/training
programs that included Nurse Assistant Program, Medical Office Administration,
Phlebotomy Technician, and Child Development Associate. Parson served as the
President/CEO of Allied Technical Institute.
In addition to operating Allied Technical Institute, Parson owned Kiddie Kare Child
Care & Education Center, Inc. (“Kiddie Kare”), which was incorporated on or about March
1, 2008. Kiddie Kare and Allied Technical Institute operated out of the same locations in
Philadelphia. Kiddie Kare’s objectives included building capacity for high quality,
affordable childcare targeted towards low income families, supporting the implementation
of the Keystone Stars Early Learning Center quality initiative, and increasing available
options in early learning and childcare for families with nontraditional work hours.
Talley first became acquainted with Parson in or around October 2007, when she
accompanied a PDE employee during an inspection of Parson’s school. Talley was also
familiar with Parson through PDE sponsored training. As a PDE employee, Talley did not
oversee any of Parson’s entities, including Allied Technical Institute or Kiddie Kare.
In 2009, Talley began performing consulting services for Allied Technical Institute
and Kiddie Kare. Talley served as a consultant for Allied Technical Institute and Kiddie
Kare only as a result of her interaction with Parson through the performance of her duties
as an Education Administration Specialist with PDE.
In or about March 2009, Talley began performing consulting services for Allied
Technical Institute. On June 9, 2009, Talley forwarded to Jean Wright, a secretary for
Parson and Allied Technical Institute, an e-mail which included as an attachment a letter of
recommendation for Allied Technical Institute from Talley. The letter was signed by Talley
as an Administrator/Principal for the Ronald Brown Charter School, which was defunct in
Talley, 13-007
Page 40
2009. Talley had been affiliated with the Ronald Brown Charter School prior to her
employment with PDE. Talley prepared the letter for Parson in an effort to assist Parson in
obtaining funding for Allied Technical Institute. On or about September 29, 2009, Talley
forwarded an e-mail from her PDE e-mail account to Parson which advised Parson to use
letterhead from the Ronald Brown Charter School to send correspondence to Dr. Holt of
the State Board of Nursing in order to secure funding for the nursing school.
Talley also provided consulting services to Parson for Kiddie Kare, and she utilized
her Commonwealth computer in the process. On June 9, 2009, Talley forwarded an e-
mail to her PDE e-mail account which included a draft of a Kiddie Kare employee
handbook. Talley also maintained on her PDE computer a cover sheet for employee
orientation for Kiddie Kare.
Talley served as a consultant to Parson with regard to Kiddie Kare’s participation in
the Child and Adult Care Food Program (“CACFP”). The CACFP is administered at the
federal level by the United States Department of Agriculture and at the state level by the
Division of Food and Nutrition within PDE. The primary intent of the CACFP is to improve
the diets of children and adults and to develop healthful eating habits through the service
of nutritious meals and the provision of nutrition education activities. Non-residential child
and adult care facilities may participate in the CACFP if they meet certain criteria, and
reimbursement is provided for serving meals.
On September 14, 2009, Parson filed her initial application for the CACFP with the
PDE Division of Food and Nutrition. Parson was required to submit supporting documents
to verify that Kiddie Kare qualified for the CACFP. Talley, as a paid private consultant,
assisted Parson with completing and submitting the CACFP application, and she
performed these services during her Commonwealth work hours. In or around October
2009, Talley, during her Commonwealth work hours, hand carried the CACFP application
for Kiddie Kare to Susan Master (“Master”), Chief of the PDE Division of Food and
Nutrition. Talley advised Master that she was assisting Parson with the CACFP
application. On November 23, 2009, Parson was advised via e-mail by Marc Bender
(“Bender”) of the PDE Division of Food and Nutrition that Parson’s CACFP application was
missing the banking information necessary to process payments. Immediately after
receiving the e-mail from Bender, Parson forwarded the e-mail to Talley to alert Talley of
PDE’s request. Talley, as a Commonwealth employee, had no responsibility for or
oversight of the CACFP.
On December 4, 2009, Kiddie Kare was approved for participation in the CACFP.
Between December 2009 and September 2012, Kiddie Kare received thirty-one payments
totaling $543,830.50 from the CACFP. The payments to Kiddie Kare were provided
through grants issued by the federal government.
On March 6, 2010, Talley and Parson signed a contract that Talley had prepared
utilizing a laptop computer assigned to her. The contract provided that Talley was
engaged to perform certain consulting services for Allied Technical Institute and Kiddie
Kare in return for payment of $2,000.00 at the signing of the contract and a fixed fee of
$15,000.00 for one full year of service. Parson contracted with Talley only because of
Talley’s position with PDE. Talley concealed from her supervisors at PDE that she was
serving as a consultant to Allied Technical Institute and Kiddie Kare.
Talley prepared invoices on her PDE computer for the work that she performed for
Parson, Allied Technical Institute, and Kiddie Kare. Between March 2009 and June 2010,
payments totaling $17,000.00 from Allied Technical Institute and Kiddie Kare for
consultation services were deposited in Talley’s private bank account.
In or around August 2011, Talley utilized her position as a Higher Education
Associate 2 with PDE in an attempt to interfere with inspections that were being conducted
Talley, 13-007
Page 41
at Allied Technical Institute by staff of the PDE Division of Private Licensed Schools by
requesting of PDE supervisors that the inspections be reassigned in order to allow Allied
Technical Institute to remain open. Allied Technical Institute was closed effective April 30,
2012, by the State Board of Private Licensed Schools as a result of compliance visits at
the school finding no student records, director qualifications, or instructor qualifications.
In or around January 2012, the PDE Division of Food and Nutrition commenced an
audit of the CACFP for Kiddie Kare. The audit was initiated due to allegations of
questionable recordkeeping by Parson and lack of verification of those actually receiving
meals. In early October 2012, PDE made the decision to discontinue Kiddie Kare’s
participation in the CACFP.
On June 7, 2012, Talley was reassigned to the State Library as a result of her
affiliation with Parson and her entities. On August 10, 2012, Diana Hershey, Director of
Human Resources, and Jill Hans, Deputy Secretary for the Office of Postsecondary
Education of PDE, held a fact finding meeting with Talley for the purpose of determining
Talley’s involvement with Parson/Allied Technical Institute. During the fact finding
meeting, Talley admitted to contracting with and receiving compensation from
Parson/Allied Technical Institute. Talley also admitted to writing a false letter to enable
Allied Technical Institute to receive government funding. Talley was terminated from her
position with PDE effective the close of business August 20, 2012.
The parties have stipulated that Talley realized a private pecuniary benefit when
she utilized her positions as an Education Administration Specialist and as a Higher
Education Associate 2 with PDE in order to serve as a contracted consultant for entities
she either regulated as an employee with PDE or otherwise gained access to through the
performance of her duties with PDE.
Re: Talley’s SFIs
Talley, as an Education Administration Specialist and as a Higher Education
Associate 2 with PDE, was required to annually file an SFI form by May 1 containing
information for the prior calendar year. Talley failed to disclose the Berean Institute, Allied
Technical Institute, and America Health Care, Inc. as sources of income in excess of
$1,300.00 on her SFI for calendar year 2009, and she failed to disclose Kiddie Kare as a
source of income in excess of $1,300.00 on her SFI for calendar year 2010. Talley failed
to timely file an SFI for calendar year 2012.
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 Talley utilized the
authority of her positions as an Education
Administration Specialist in the Bureau of Post-
Secondary Services and as a Higher Education
Associate 2 with the Bureau of School
Leadership and Teacher Quality of the
\[Pennsylvania\] Department of Education
(“PDE”), in order to serve as a contracted
Talley, 13-007
Page 42
consultant for entities she either regulated as an
employee with PDE, or otherwise gained access
to through the performance of her duties with
PDE, thereby receiving a private pecuniary
benefit; specifically, when she:
1. Used her position as an Education
Administration Specialist with
PDE, and its perceived influence,
to be hired as a consultant for
America Health Care, Inc.,
representing the same before the
Pennsylvania Department of State,
Board of Nursing;
2. Used her position as an Education
Administration Specialist with
PDE, and its perceived influence,
to be hired as a consultant for the
Berean Institute in order to assist
the Berean Institute with the
creation of a daycare center, and
its accreditation for a cosmetology
program and charter school;
3. Used her position with PDE,
namely her interactions with
representatives of Allied Technical
Institute of Philadelphia (“ATI”) as
a PDE employee, to be hired as a
consultant for ATI and Kiddie Kare
Child Care & Education Center
(“Kiddie Kare”), and while
simultaneously serving as a PDE
employee and consultant to Kiddie
Care, she assisted Kiddie Kare in
PDE proceedings; and
4. Used her position as a Higher
Education Associate 2 with PDE
by making an effort to interfere
with inspections of ATI that were
being conducted by staff of the
PDE Division of Private Licensed
Schools, by requesting to PDE
supervisors that the inspections be
reassigned in order to allow ATI to
remain open.
b. That a violation of Section 1104(a) \[of the Public Official
and Employee Ethics Act, 65 Pa.C.S. § 1104(a)\],
occurred when Talley failed to timely file a Statement of
Financial Interests form for the 2012 calendar year.
c. That a violation of Section 1105(b) \[of the Public Official
and Employee Ethics Act, 65 Pa.C.S. § 1105(b)\],
occurred when Talley failed to disclose on her calendar
Talley, 13-007
Page 43
year 2009 Statement of Financial Interests form, each
source of direct/indirect income in excess of $1,300.00,
including: Berean Institute, Allied Technical Institute of
Philadelphia, and America Health Care, Inc.; and when
she failed to disclose on her calendar year 2010
Statement of Financial Interests form, income in excess
of $1,300.00 received from Kiddie Kare.
d. That no violation of Section 1105(b) \[of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1105(b)\], occurred in relation to the allegation that
Talley failed to disclose her receipt of direct/indirect
income from all sources on her Statements of Financial
Interests for the 2008 and 2011 calendar years, as she
did not receive reportable income from: Berean
Institute, Allied Technical Institute of Philadelphia,
America Health Care, Inc., and/or Kiddie Kare.
4. Talley agrees to make payment in the amount of $15,915.00 in
settlement of this matter, $14,915.00 of which shall be made
payable to the Commonwealth of Pennsylvania and $1,000.00
of which, representing a portion of the costs of the
investigation of this matter, shall be made payable to the
Pennsylvania State Ethics Commission. All payments shall be
forwarded to the Pennsylvania State Ethics Commission within
thirty (30) days of the issuance of the final adjudication in this
matter.
5. To the extent she has not already done so, Talley agrees to
file complete and accurate Statements of Financial Interests
with the Pennsylvania Department of Education through the
Pennsylvania State Ethics Commission, for calendar years
2009, 2010, and 2012 within thirty (30) days of the issuance of
the final adjudication in this matter.
6. Talley agrees to not accept any reimbursement, compensation
or other payment from the Pennsylvania Department of
Education representing a full or partial reimbursement of the
amount paid in settlement of this matter.
7. The Investigative Division recommends that this matter be
referred to appropriate law enforcement authorities for review.
The Commission is not prohibited 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 that may so choose to
review this matter further.
Consent Agreement, at 2-3.
In considering the Consent Agreement of the parties, we accept the parties’
recommendation for a finding of a violation of Section 1103(a) of the Ethics Act.
Talley was employed as an Education Administration Specialist with PDE from
October 1, 2007, until April 27, 2009, and as a Higher Education Associate 2 with PDE
from April 27, 2009, until June 7, 2012. Talley utilized her positions with PDE to serve as a
Talley, 13-007
Page 44
consultant to the Berean Institute, America Health Care, Inc., Allied Technical Institute,
and Kiddie Kare.
In or around July 2008, efforts were initiated by PDE’s Division of Private Licensed
Schools to close the Berean Institute. At that time, Talley, as an Education Administration
Specialist, was assigned to oversee the Berean Institute, and she was responsible for
assisting Dr. Naranjo, the President of the Board of Trustees of the Berean Institute, with
the closeout of the Berean Institute. Talley assisted in securing a grant for the Berean
Institute.
On or around January 1, 2009, Talley approached Dr. Naranjo about serving as a
consultant to assist Dr. Naranjo’s efforts to continue operating the Berean Institute. Talley
approached Dr. Naranjo at or about the time that Talley, in her public position with PDE,
was responsible for regulating the Berean Institute and was participating in securing
funding for the Berean Institute. Dr. Naranjo hired Talley as a consultant as a result of
Talley’s position as an Education Administration Specialist and her past dealings with Dr.
Naranjo to help keep the Berean Institute open. Talley was hired with the understanding
that she was to utilize her position with PDE to help establish a day care center at the
Berean Institute, obtain accreditation from the Pennsylvania Department of State for a
Cosmetology and Barbering Program, and assist with the establishment of a charter school
at the Berean Institute.
Talley billed the Berean Institute a total of $15,000.00 for consultant services
between January 1, 2009, and March 31, 2009, at the same time she had responsibility for
oversight of the Berean Institute. Talley received a $2,000.00 payment from Dr. Naranjo
as partial payment for consulting services rendered in February 2009.
On May 2, 2008, the State Board of Private Licensed Schools issued Dr. Oladimeji a
license for a school under the name of America Health Care, Inc. Talley was PDE’s
Education Administration Specialist responsible for conducting an inspection of America
Health Care, Inc., and she gave the school a satisfactory rating, which enabled Dr.
Oladimeji to open the school.
In or around November 2008, Dr. Oladimeji contacted the State Board of Private
Licensed Schools and met with Talley about obtaining a license to add a nursing school to
America Health Care, Inc. Talley advised Dr. Oladimeji that PDE did not regulate nursing
schools, and she offered to serve as a consultant for him before the State Board of
Nursing. Talley proposed assisting Dr. Oladimeji by drafting the curriculum to be
submitted for approval from the State Board of Nursing, and she persuaded him that she
could use her influence as a PDE employee to assist in obtaining licensing through the
Pennsylvania Department of State. Talley subsequently performed services as a
consultant for Dr. Oladimeji, and between February 17, 2009, and June 23, 2009, Dr.
Oladimeji issued eight payments totaling $7,915.00 to Talley.
In 2009, Talley began performing consulting services for Allied Technical Institute
and Kiddie Kare, two entities owned/operated by Parson. Talley first became acquainted
with Parson in or around October 2007, when she accompanied a PDE employee during
an inspection of Parson’s school. Talley was also familiar with Parson through PDE
sponsored training. Talley served as a consultant for Allied Technical Institute and Kiddie
Kare only as a result of her interaction with Parson through the performance of her duties
with PDE as an Education Administration Specialist. As a consultant for Allied Technical
Institute, Talley prepared a letter of recommendation for it from her, which she signed as
an Administrator/Principal for the then-defunct Ronald Brown Charter School. Talley also
served as a consultant to Parson with regard to Kiddie Kare’s participation in the CACFP.
Talley, during her Commonwealth work hours, assisted Parson with completing Kiddie
Kare’s application for the CACFP and hand carried the application to the PDE Division of
Food and Nutrition.
Talley, 13-007
Page 45
On March 6, 2010, Talley and Parson signed a contract that provided that Talley
was engaged to perform certain consulting services for Allied Technical Institute and
Kiddie Kare. Parson contracted with Talley only because of Talley’s position with PDE.
Between March 2009 and June 2010, payments totaling $17,000.00 from Allied Technical
Institute and Kiddie Kare for consultation services were deposited in Talley’s private bank
account. In or around August 2011, Talley utilized her position as a Higher Education
Associate 2 with PDE in an attempt to interfere with inspections that were being conducted
at Allied Technical Institute by staff of the PDE Division of Private Licensed Schools by
requesting of PDE supervisors that the inspections be reassigned in order to allow Allied
Technical Institute to remain open.
The parties have stipulated that Talley realized a private pecuniary benefit when
she utilized her positions as an Education Administration Specialist and as a Higher
Education Associate 2 with PDE in order to serve as a contracted consultant for entities
she either regulated as an employee with PDE or otherwise gained access to through the
performance of her duties with PDE.
Based upon the Stipulated Findings and the Consent Agreement, we hold that
Talley violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when she utilized
the authority of her positions as an Education Administration Specialist and a Higher
Education Associate 2 with PDE in order to serve as a contracted consultant for entities
she either regulated as an employee with PDE or otherwise gained access to through the
performance of her duties with PDE, thereby receiving a private pecuniary benefit,
specifically when she:
(a) used her position as an Education Administration Specialist with PDE and its
perceived influence to be hired as a consultant for America Health Care,
Inc., representing the same before the Pennsylvania Department of State,
Board of Nursing;
(b) used her position as an Education Administration Specialist with PDE and its
perceived influence to be hired as a consultant for the Berean Institute in
order to assist the Berean Institute with the creation of a daycare center and
its accreditation for a cosmetology program and charter school;
(c) used her position with PDE, namely her interactions with representatives of
Allied Technical Institute as a PDE employee, to be hired as a consultant for
Allied Technical Institute and Kiddie Kare, and while simultaneously serving
as a PDE employee and consultant to Kiddie Care, assisted Kiddie Kare in
PDE proceedings; and
(d) used her position as a Higher Education Associate 2 with PDE by making an
effort to interfere with inspections of Allied Technical Institute that were
being conducted by staff of the PDE Division of Private Licensed Schools, by
requesting to PDE supervisors that the inspections be reassigned in order to
allow Allied Technical Institute to remain open.
As for the allegations regarding Talley’s SFIs, it is clear that Talley: (1) failed to
timely file an SFI for calendar year 2012; (2) failed to disclose the Berean Institute, Allied
Technical Institute, and America Health Care, Inc. as sources of income in excess of
$1,300.00 on her SFI for calendar year 2009; and (3) failed to disclose Kiddie Kare as a
source of income in excess of $1,300.00 on her SFI for calendar year 2010.
We hold that a violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a),
occurred when Talley failed to timely file an SFI form for the 2012 calendar year.
Talley, 13-007
Page 46
We further hold that a violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. §
1105(b), occurred when Talley failed to disclose on her calendar year 2009 SFI form each
source of income in excess of $1,300.00, including the Berean Institute, Allied Technical
Institute, and America Health Care, Inc., and when she failed to disclose on her calendar
year 2010 SFl form income in excess of $1,300.00 received from Kiddie Kare.
The parties have agreed, and we hold, that no violation of Section 1105(b) of the
Ethics Act, 65 Pa.C.S. § 1105(b), occurred in relation to the allegation that Talley failed to
disclose her receipt of income from all sources on her SFIs for the 2008 and 2011 calendar
years, as she did not receive reportable income from the Berean Institute, Allied Technical
Institute, America Health Care, Inc., or Kiddie Kare during those calendar years.
As part of the Consent Agreement, Talley has agreed to make payment in the
amount of $15,915.00 in settlement of this matter, $14,915.00 of which shall be made
payable to the Commonwealth of Pennsylvania and $1,000.00 of which, representing a
portion of the costs of the investigation of this matter, shall be made payable to the
Pennsylvania State Ethics Commission, with all payments forwarded to this Commission
within thirty (30) days of the issuance of the final adjudication in this matter.
Talley has agreed to not accept any reimbursement, compensation or other
payment from PDE representing a full or partial reimbursement of the amount paid in
settlement of this matter.
To the extent she has not already done so, Talley has further agreed to file
complete and accurate SFIs for calendar years 2009, 2010, and 2012 with PDE, 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, Talley is directed to make
payment in the amount of $15,915.00, $14,915.00 of which shall be made payable to the
Commonwealth of Pennsylvania and $1,000.00 of which, representing a portion of the
costs of the investigation of this matter, shall be made payable to the Pennsylvania State
Ethics Commission, with all payments forwarded to this Commission by no later than the
th
thirtieth (30) day after the mailing date of this adjudication and Order.
Per the Consent Agreement of the parties, Talley is further directed to not accept
any reimbursement, compensation or other payment from PDE representing a full or partial
reimbursement of the amount paid in settlement of this matter.
To the extent she has not already done so, Talley is directed to file complete and
accurate SFIs for calendar years 2009, 2010, and 2012 with PDE, through this
th
Commission, by no later than the thirtieth (30) day after the mailing date of this
adjudication and Order.
Noncompliance will result in the institution of an order enforcement action.
Finally, we shall refer this matter to the Pennsylvania Office of Attorney General for
review and such action as it may deem appropriate.
IV.CONCLUSIONS OF LAW:
1. As an Education Administration Specialist with the Pennsylvania Department of
Education (“PDE”) from October 1, 2007, until April 27, 2009, and as a Higher
Talley, 13-007
Page 47
Education Associate 2 with PDE from April 27, 2009, until June 7, 2012,
Respondent Rae Talley (“Talley”) was a public employeesubject to the provisions
of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et
seq.
2. Talley violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when she
utilized the authority of her positions as an Education Administration Specialist and
a Higher Education Associate 2 with PDE in order to serve as a contracted
consultant for entities she either regulated as an employee with PDE or otherwise
gained access to through the performance of her duties with PDE, thereby receiving
a private pecuniary benefit, specifically when she:
(a) used her position as an Education Administration Specialist with PDE and its
perceived influence to be hired as a consultant for America Health Care,
Inc., representing the same before the Pennsylvania Department of State,
Board of Nursing;
(b) used her position as an Education Administration Specialist with PDE and its
perceived influence to be hired as a consultant for the Berean Institute in
order to assist the Berean Institute with the creation of a daycare center and
its accreditation for a cosmetology program and charter school;
(c) used her position with PDE, namely her interactions with representatives of
Allied Technical Institute of Philadelphia (“Allied Technical Institute”) as a
PDE employee, to be hired as a consultant for Allied Technical Institute and
Kiddie Kare Child Care & Education Center, Inc. (“Kiddie Kare”), and while
simultaneously serving as a PDE employee and consultant to Kiddie Care,
assisted Kiddie Kare in PDE proceedings; and
(d) used her position as a Higher Education Associate 2 with PDE by making an
effort to interfere with inspections of Allied Technical Institute that were
being conducted by staff of the PDE Division of Private Licensed Schools, by
requesting to PDE supervisors that the inspections be reassigned in order to
allow Allied Technical Institute to remain open.
3. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Talley failed to timely file a Statement of Financial Interests form for the 2012
calendar year.
4. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred
when Talley failed to disclose on her calendar year 2009 Statement of Financial
Interests form each source of income in excess of $1,300.00, including the Berean
Institute, Allied Technical Institute, and America Health Care, Inc., and when she
failed to disclose on her calendar year 2010 Statement of Financial Interests form
income in excess of $1,300.00 received from Kiddie Kare.
5. No violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to the allegation that Talley failed to disclose her receipt of income from all
sources on her SFIs for the 2008 and 2011 calendar years, as she did not receive
reportable income from the Berean Institute, Allied Technical Institute, America
Health Care, Inc., or Kiddie Kare during those calendar years.
Talley, 13-007
Page 48
In Re: Rae Talley, : File Docket: 13-007
Respondent : Date Decided: 1/27/15
: Date Mailed: 2/10/15
ORDER NO. 1653
1. Rae Talley (“Talley”) violated Section 1103(a) of the Public Official and Employee
Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when she utilized the authority of
her positions as an Education Administration Specialist and a Higher Education
Associate 2 with the Pennsylvania Department of Education (“PDE”) in order to
serve as a contracted consultant for entities she either regulated as an employee
with PDE or otherwise gained access to through the performance of her duties with
PDE, thereby receiving a private pecuniary benefit, specifically when she:
(a) used her position as an Education Administration Specialist with PDE and its
perceived influence to be hired as a consultant for America Health Care,
Inc., representing the same before the Pennsylvania Department of State,
Board of Nursing;
(b) used her position as an Education Administration Specialist with PDE and its
perceived influence to be hired as a consultant for the Berean Institute in
order to assist the Berean Institute with the creation of a daycare center and
its accreditation for a cosmetology program and charter school;
(c) used her position with PDE, namely her interactions with representatives of
Allied Technical Institute of Philadelphia (“Allied Technical Institute”) as a
PDE employee, to be hired as a consultant for Allied Technical Institute and
Kiddie Kare Child Care & Education Center, Inc. (“Kiddie Kare”), and while
simultaneously serving as a PDE employee and consultant to Kiddie Care,
assisted Kiddie Kare in PDE proceedings; and
(d) used her position as a Higher Education Associate 2 with PDE by making an
effort to interfere with inspections of Allied Technical Institute that were
being conducted by staff of the PDE Division of Private Licensed Schools, by
requesting to PDE supervisors that the inspections be reassigned in order to
allow Allied Technical Institute to remain open.
2. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Talley failed to timely file a Statement of Financial Interests form for the 2012
calendar year.
3. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred
when Talley failed to disclose on her calendar year 2009 Statement of Financial
Interests form each source of income in excess of $1,300.00, including the Berean
Institute, Allied Technical Institute, and America Health Care, Inc., and when she
failed to disclose on her calendar year 2010 Statement of Financial Interests form
income in excess of $1,300.00 received from Kiddie Kare.
4. No violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to the allegation that Talley failed to disclose her receipt of income from all
sources on her SFIs for the 2008 and 2011 calendar years, as she did not receive
Talley, 13-007
Page 50
reportable income from the Berean Institute, Allied Technical Institute, America
Health Care, Inc., or Kiddie Kare during those calendar years.
5. Per the Consent Agreement of the parties, Talley is directed to make payment in the
amount of $15,915.00, $14,915.00 of which shall be made payable to the
Commonwealth of Pennsylvania and $1,000.00 of which, representing a portion of
the costs of the investigation of this matter, shall be made payable to the
Pennsylvania State Ethics Commission, with all payments forwarded to the
th
Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after
the mailing date of this Order.
6. Per the Consent Agreement of the parties, Talley is directed to not accept any
reimbursement, compensation or other payment from PDE representing a full or
partial reimbursement of the amount paid in settlement of this matter.
7. To the extent she has not already done so, Talley is directed to file complete and
accurate Statements of Financial Interests for calendar years 2009, 2010, and 2012
with PDE, through the Pennsylvania State Ethics Commission, by no later than the
th
thirtieth (30) day after the mailing date of this Order.
8. Non-compliance with paragraph 5, 6, or 7 of this Order will result in the institution of
an order enforcement action.
9. This matter shall be referred to the Pennsylvania Office of Attorney General for
review and such action as it may deem appropriate.
BY THE COMMISSION,
___________________________
Nicholas A. Colafella, Chair