HomeMy WebLinkAbout1654 Fringer
In Re: Timothy Fringer, : File Docket: 13-028
Respondent : X-ref: Order No. 1654
: Date Decided: 5/5/15
: Date Mailed: 5/12/15
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
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.” An Answer was filed and a hearing was requested. A
Stipulation of Findings and a Consent Agreement were subsequently submitted by the
parties to the Commission for consideration. The Stipulated Findings are set forth as the
Findings in this Order. The Consent Agreement has been approved.
I.ALLEGATIONS:
That Timothy Fringer, a public official/public employee in his former capacity as the
Chief of the Product Selection/Category Management for the Pennsylvania Liquor Control
Board (“PLCB”), as well as in his former position as Spirits Category Manager for the
PLCB, violated Section 1103(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §
1103(a), when he used the authority of his public position for the private pecuniary benefit
of himself when he received various gifts and/or travel, hospitality and lodging from
vendors of the PLCB at a time when said vendor(s) had ongoing business/contractual
relations with the PLCB; and when he failed to disclose on Statements of Financial
Interests filed for the 2009, 2011 and 2012 calendar years, his receipt of travel, lodging,
and/or hospitality in excess of an aggregate amount of $650.00 from any single vendor.
II.FINDINGS:
1. Timothy Fringer was employed as the Chief of the Product Management and Pricing
Division of the PLCB from approximately October 31, 2010, until September 16,
2013.
a. Fringer began employment with the PLCB on July 12, 2004, as a PMA
(Pennsylvania Management Associate) in the Division of Planning and
Policy Management.
Fringer, 13-028
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b. Fringer voluntarily separated from Commonwealth employment effective
September 16, 2013.
2. Fringer held multiple positions during his tenure with the PLCB including PMA,
Program Analyst 2, Merchandising and Pricing Coordinator, and Chief of the
Product Management and Pricing Division.
a. Fringer received no less than two (2) promotions throughout his tenure with
the PLCB.
b. Fringer began working within the PLCB Bureau of Product Management
effective June 3, 2007, when he transferred to the position of Merchandising
and Pricing Coordinator.
3. Fringer has not been employed by the PLCB or the Commonwealth since
approximately September 2013.
4. Fringer’s job description in the position of Chief of the Product Management and
Pricing Division of the PLCB sets forth the position purpose, description of duties,
and essential functions of the position.
a. The formal position title as well as the purpose for the position was
identified, in part, as follows:
1. The position serves as the Chief of the Product/Category
Management Division, Bureau of Product Management performing
responsible administrative and managerial work planning, directing,
and coordinating PLCB’s category management, marketing and
merchandising functions.
2. The primary focus of the position is the supervision of a centralized
category management program directed at maximizing product
selection, agency profitability, and competitive pricing structures.
aa. The position report is to the Director of Product Selection.
b. The description of duties identified multiple responsibilities associated with
the position as detailed, in part, below:
1. Supervision and provision of approvals for the activities of the
category management staff in the establishment of promotional
programs; evaluation and presentation of supplier product proposals
to the Director of Product Selection; evaluation of special pricing and
display programs; and ensuring proper execution of approved
marketing plans.
2. Direction and approval regarding the development of standards for
promotional displays and all standard and store specific shelf sets
and monitoring of the preparation of documentation for distribution to
and training of field personnel.
3. Direction and approval of the activities of the category managers in
the evaluation of the review of currently offered products for delisting
consideration in Oracle Category Management for presentation to the
Director of Product Selection; direction and approval of the
development, revision, and implementation of procedures for delisting
of current products which do not reach the established minimum
Fringer, 13-028
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standards; direction and approval of delisting reports with appropriate
recommendations and corresponding plan for removal of identified
codes; direction and approval regarding plan implementation with the
category management staff to ensure all objectives are identified and
vendor participation is solicited in the closing out of delisted products.
4. Direction and approval of the activities of the category managers in
the evaluation of the new product proposals in Oracle Category
Management for presentation to the Director of Product Selection;
direction and approval of the development, revision, and
implementation of procedures for listing new products which reach the
established standards; direction and approval of the new listing
reports with appropriate recommendations and corresponding plan for
introduction of identified codes; direction and approval regarding plan
implementation with the category management staff to ensure all
objectives are identified and vendor participation is solicited in the
introduction of newly listed products.
5. Direction and approval of the assignment of all weighting criteria in
regards to Key Performance Indicators in relation to performance
attributes used in Oracle Category Management for the purposes of
performing New Listing, Delisting, State Base Assortment, Cluster
Base Assortment, and Store Optional assortment score carding;
exercising of signature authority for final assignment of weighting
criteria for use by category management.
6. Communication directly with vendors/suppliers regarding questions,
problems, and clarification of all aspects of category management.
c. The essential functions for the position include, among others, the following:
1. Cultivation and maintenance of appropriate and effective working
relationships.
5. The PLCB was created by state law on November 29, 1933, following the end of
prohibition.
a. Prohibition was repealed on December 5, 1933, with the ratification of the
st
21 Amendment to the U.S. Constitution.
b. Pennsylvania is one of eighteen (18) states and two (2) Maryland counties
that actively participate in the distribution process to control the sale of
alcohol.
6. The PLCB is governed by a three (3) Member Board, appointed by the Governor
and confirmed by two-thirds of the State Senate.
a. The Board appoints a Chief Executive Officer.
7. The PLCB is responsible for regulating the sale of alcohol, educating consumers on
the responsible use of alcohol, and working to prevent underage use of alcoholic
beverages.
8. The PLCB accomplishes its responsibilities through marketing and merchandising a
retail operation of approximately 608 stores with sales of approximately $2.1 billion
in 2011-2012.
Fringer, 13-028
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9. On April 12, 1951, the Pennsylvania General Assembly combined existing beer and
liquor laws into one statute, entitled the “Liquor Code.”
10. On July 1, 1987, the Pennsylvania General Assembly reenacted the Liquor Code
and created the Bureau of Liquor Control Enforcement (“BLCE”), within the
Pennsylvania State Police, which is responsible for enforcing the Liquor Code and
the Board’s regulations, and the Office of Administrative Law Judge, an
autonomous office within the PLCB, which is responsible for presiding over citation
and enforcement hearings.
11. The PLCB provides products and services through seven (7) dedicated
departments designed to meet the specific needs of PLCB customers and
licensees.
a. Each of the seven (7) dedicated offices has specific deputies who have
oversight responsibility.
b. Dedicated offices are: Finance, Supply Chain, Marketing & Merchandising,
Retail Operations, Administration, Regulator Affairs, and External Affairs.
12. The PLCB is a high volume purchaser of wine and spirits in the United States.
a. The PLCB currently operates approximately 608 stores, which are leased
from private landlords.
b. The PLCB outsources warehousing services for three (3) distribution centers
in Pennsylvania.
c. There currently are approximately 25,595 beverage alcohol licenses and
permits throughout Pennsylvania and 5,391 registered malt and brewed
beverage brands granted by the PLCB.
13. Products that are sold by the PLCB are categorized as either regular items, luxury
items, or special order items.
a. Regular items are products that are routinely stocked in the distribution
centers.
b. Luxury items are products that are purchased intermittently or as one-time
purchases.
c. Special order products are items that are not stocked in the PLCB
distribution centers but may be special ordered by either licensees or by
consumers.
d. On or about February 4, 2004, the PLCB began the Chairman’s Selection
Program, which offers wine at premium collection stores.
14. In or about 2006, a policy was developed by the PLCB known as the “bright line.”
a. The policy was developed during the time when Joseph Martz was serving
as PLCB Director of Administration.
1. In 2006, Martz simultaneously served as Secretary of the
Commonwealth and PLCB Director of Administration.
b. The bright line was a policy that advised employees they were to accept
Fringer, 13-028
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nothing from PLCB vendors.
c. When initially implemented, the policy was applicable to employees of the
Administrative Division of the PLCB.
1. Employees signed the policy agreeing not to accept anything from
PLCB vendors.
d. Jonathan Newman was PLCB Chairman at the time the policy was
implemented for administrative staff.
15. In 2006, the Director of Administration had no supervisory authority over employees
in the Purchasing Division.
a. Requests were made to James Short, PLCB Director of Marketing, to
implement the policy in the Purchasing Department.
b. Short never implemented the policy.
16. As a Control State, the PLCB is the only retail seller of wine/spirits in the
Commonwealth.
a. The PLCB may grant licenses to entities/establishments for the sale of
alcoholic beverages for on-site consumption as well as for vendors who sell
products for off-site consumption.
b. In order for an alcoholic beverage to be sold in Pennsylvania, it must be
authorized for sale by the PLCB.
1. If a product is “listed” it is authorized for sale and stocked as a
product in PLCB retail stores.
17. In order to have a product sold by the PLCB, a manufacturer/supplier of alcoholic
beverage products may employ several different methods to have its product
represented within the Commonwealth of Pennsylvania.
a. A manufacturer/supplier may market its product directly to the PLCB for the
listing/delisting process as well as for sales and distribution.
b. A manufacturer/supplier may market its product through a vendor.
1. For all sales/distribution, a vendor of record must be identified with
the PLCB.
2. A manufacturer/supplier may also be a vendor/vendor of record.
c. A manufacturer/supplier may enlist the services of a broker, who then in turn
represents the manufacturer/supplier and its products before the PLCB.
1. Any broker may represent multiple manufacturers/suppliers and/or
multiple products before the PLCB.
2. A broker may also serve as a vendor/vendor of record.
18. The PLCB periodically reviews all products currently sold in PLCB retail stores to
evaluate their profitability, and at or about the same time, considers new products
for placement in PLCB retail stores through a process known as “listing” and
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“delisting.”
a. Listing/delisting occurs twice a year, usually in the fall and spring of each
year.
b. The goal of listing/delisting is to achieve a 1:1 ratio, when for each product
listed, one product is delisted, due to the limited amount of shelf space
available at each PLCB retail store.
19. The process to present a new product for listing is regulated through the PLCB.
a. Specifically, the Merchandising and Pricing Coordinator makes item and
related marketing and support decisions through a scorecard process.
b. The Merchandising Pricing Coordinator would make recommendations to the
Chief of Product Selection, Matt Schwenk, who would work through the
recommendations of the Merchandising Pricing Coordinator \[and\] then
respond with a modified list.
c. This potentially modified list would then be routed through a presentation
with the Director of Marketing, James Short, who would ask questions and
make changes.
d. After Mr. Short made changes, a final list would be put together in the form of
preliminary “Board Work.”
e. The Board Work would be routed \[to\] the Board the Friday before the Board
meeting.
20. Delisting occurs simultaneously with the listing process.
a. If a product is to be delisted, the vendor is notified and provided an
opportunity to avoid a delisting.
1. Actions such as an advertising campaign, discounts, and product
sampling are used to promote sales and possibly avoid a delisting.
21. The PLCB relies primarily on recommendations made by James Short, the Director
of Marketing and Merchandising, and his subordinates, including Fringer in his role
as the Chief of the Product Management and Pricing Division, when making
listing/delisting decisions.
a. The Board conducts no independent review of products and relies on staff
recommendations.
b. It is estimated that 5% of the recommendations to list/delist are not accepted
by the Board.
22. The primary vendors providing products to the PLCB are:
Southern Wine and Spirits
Capital Wine and Spirits (Alliance Brands, White Rock Distilleries)
Allied Beverage (Majestic)
These vendors represent at least 31% of total PLCB sales/inventory.
23. Southern Wine and Spirits of America, Inc. (“Southern”) \[claims\] to be the nation’s
largest wine and spirits distributor.
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a. Since its creation/formation in 1968, Southern has maintained its corporate
office in Miami, Florida.
b. Currently, Southern represents clients in no less than thirty-five (35) states
including “Control States” and “Open States.”
1. An “Open State” refers to a state/jurisdiction where wine, spirits, and
beer sales are conducted through an independent beverage
distributor/retailer.
2. A “Control State” is where a state or county “controls” or regulates the
distribution and/or the sale of wine, spirits, and/or beer.
3. Pennsylvania is the largest Control State operation in the United
States.
24. Southern Wine and Spirits of Pennsylvania operates as a licensed wine and spirits
broker/marketer.
a. Southern expanded its operations into Pennsylvania in 1995.
b. Southern employs approximately two-hundred twenty-five (225) sales and
support staff statewide in Pennsylvania.
c. Southern maintains two (2) offices within Pennsylvania, one in the King of
Prussia area, and the other in the Greater Pittsburgh geographic area.
1. These employees are responsible for marketing and merchandising
alcoholic beverages to the more than six-hundred (600) PLCB state
stores, as well as Pennsylvania’s 14,500 on-premise accounts.
2. The PLCB is Southern’s only off-premise customer.
25. Brad M. Waxman (“Waxman”) is the Executive Vice President, General Manager of
Southern Wine and Spirits of Pennsylvania.
a. In January 1999, Waxman initiated his employment with Southern.
1. In 2002, Waxman was named Executive Vice President/General
Sales Manager of Southern’s Pennsylvania operations.
b. Mark Sweeney (“Sweeney”) is the Vice President and General Manager of
North American Wine and Spirits, a division of Southern Wine and Spirits.
1. Sweeney also makes sales calls to PLCB officials and employees.
2. In 2008, Waxman was promoted to the position of Executive Vice
President/General Manager of Southern’s Pennsylvania operations.
26. Southern is a broker and vendor/vendor of record for a number of wines and/or
spirits sold to the PLCB.
a. Waxman serves as a broker for a number of the products before the PLCB.
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b. Products for which Southern serves as broker and/or vendor/vendor of
record account for between approximately 6.43% to 6.85% of PLCB total
Cost of Goods Sold during the last five (5) years (2007-2012).
1. Sales to PLCB for years 2007 through 2012 totaled between
$62,051,980.00 and $77,641,059.78.
27. Capital Wine and Spirits, LLC (“Capital”) claims to be one of the largest
wholesaler/brokers of wine and spirits in Pennsylvania.
a. Capital is a member of the Charmer Sunbelt Group, a nationwide distributor
of wine, spirits, beer, and other beverages.
b. The Charmer Sunbelt Group is a collection of privately held companies and
operates distributor/brokerage houses in no less than fifteen (15) states,
including Pennsylvania.
c. Capital employs more than two-hundred (200) employees and reports to sell
in excess of four million cases of wine and spirits throughout the
Commonwealth.
d. The reported four million cases of wine/spirit sales include sales to the
PLCB.
28. Capital is a broker and vendor/vendor of record for a number of wines and/or spirits
sold to the PLCB.
a. Products brokered by Capital account for a total of between approximately
19.11% to 22.03% of PLCB total Cost of Goods Sold during the last five (5)
years.
b. Sales to the PLCB for years 2007 through 2012 totaled between
$198,712,993.38 and $221,606,618.99.
29. In an effort to condense marketing efforts and maximize sales and product
exposure, several manufacturers/producers of wines, spirits and malt/brewed
beverages have formed partnerships for marketing purposes; one such partnership
is “The Alliance.”
a. The Alliance is comprised of wine/spirit suppliers: Bacardi USA (“Bacardi”);
Brown-Forman; and Remy Cointreau (“Remy”).
b. The Alliance was established by Bacardi, Brown-Forman, and Remy to “re-
shape” their route to market in order to provide greater service and access to
the consumer.
c. The goal of The Alliance was/is to create a way for Bacardi, Brown-Forman,
and Remy to leverage their scale and profitability in order to secure
dedicated resources.
30. The Alliance is a United States program and is focused on distribution and a
combined portfolio in an effort to compete with other suppliers.
a. The Alliance covers twenty-six (26) markets, which include the state of
Pennsylvania.
b. Within Pennsylvania, The Alliance is represented by Capital Wine and
Spirits/Charmer Sunbelt Group.
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31. Capital Wine and Spirits/Alliance Brands representatives interacting most often with
PLCB officials include the following:
Mark Littles, President, Capital Wine and Spirits
Christina Desmond, Director of Marketing and Business Analytics
Rob Sirota, General Manager, Alliance Division of Capital Wine and Spirits
Kevin McCarty, Vice-President of Compliance and Administration of Capital
Wine & Spirits
Tim Kilcullen, Vice-President of Wine and Education, Capital Wine and
Spirits
David Franke (Brown-Forman)
32. Allied Beverage Group, LLC (“Allied”) was created by the mergers of The Baxter
Group, Inc., F&A Distributing Company and The Jaydor Corporation.
a. Allied reports to be New Jersey’s largest and most comprehensive wine and
spirits distributor and ranks among the ten largest distributors in the United
States.
b. Allied also operates subsidiary Majestic Wine & Spirits, USA, LLC
(“Majestic”), which is a Pennsylvania brokerage and vendor/vendor of record
for products sold to the PLCB.
1. As a broker/vendor, Majestic provides merchandising and promotional
services for several major suppliers of alcoholic beverages.
2. Majestic reports to be the PLCB’s highest volume distributor of
“special liquor orders.”
33. As a broker and vendor/vendor of record for products sold to the PLCB, Allied
and/or Majestic’s sales account for between approximately 1.51% to 2.18% of PLCB
total Cost of Goods Sold during the last five (5) years.
a. Sales to PLCB for years 2007 through 2012 totaled between $15,267,768.10
and $25,000,032.79.
34. Majestic’s primary contacts with PLCB officials and employees are Chris Papariello
and Edward Murray.
a. Papariello is Executive Vice-President of Majestic.
b. Murray serves as Majestic’s Eastern Regional Manager.
35. Executives and marketing representatives from vendors supplying products to the
PLCB met with PLCB employees to market products.
a. The marketing strategies of these representatives included offering gifts,
transportation, lodging, and hospitality to PLCB employees, including
Fringer.
b. The items, including golf events, meals, alcoholic beverages, and gift cards,
were offered year round including when listing/delisting of products was
occurring.
c. Items of value were routinely provided to PLCB officials who were in decision
making positions regarding product selection and placement.
Fringer, 13-028
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36. Representatives of the numerous PLCB vendors frequently contacted Fringer and
various other PLCB representatives for a variety of reasons, including marketing
new and existing products.
a. Some of these products were subject to the listing/delisting process.
b. Other products were luxury products which are not subject to listing/delisting
procedures.
37. Vendor representatives offered and provided Fringer with items of value, including
but not limited to the following:
Alcohol
Meals, including lunches and dinners
Golf outings
Gift cards/certificates
Tickets to entertainment/sporting events
a. Fringer asserts that he received explicit and implicit direction from the
Director of Marketing and Merchandising, as well as from the Director of
Product Selection, to accept items from vendors, including alcohol, dinners
and the like. Specifically, Respondent asserts that he was told that the
Director of Marketing and Merchandising, and/or the Director of Product
Selection, were aware that PLCB employees received items from vendors,
but so long as no one complains or talks about it, “it never happened.”
1. The Investigative Division has no knowledge of specific direction
Respondent received from the Director of Marketing and
Merchandising, and/or the Director of Product Selection, regarding
the acceptance of items of value from PLBC vendors; however,
evidence suggests that PLCB employees routinely accepted travel,
hospitality, lodging and/or gifts from PLCB vendors, with the
knowledge of employees’ superiors.
38. Vendors and representatives known to have provided Fringer with items of value
included:
Cristina Desmond, Capital Wine and Spirits
Mark Littles, Capital Wine and Spirits
Ryan Bonner, Capital Wine and Spirits
Tricia Brungo, White Rock Distilleries
Paul Doran, White Rock Distilleries
Erin “Red” Schiller, Jim Beam Global
Amy Sutton, Jim Beam Global
Michael O’Brien, Southern Wine and Spirits
Danielle Smith, Constellation Brands
39. Fringer accepted items of value from PLCB vendors at a time when the PLCB was
considering listing/delisting the offering vendors’ products.
THE FOLLOWING FINDINGS RELATE TO FRINGER’S GENERAL RECEIPT OF GIFTS
AND HOSPITALITY FROM VENDORS OF THE PLCB AT A TIME WHEN FRINGER WAS
RESPONSIBLE FOR MAKING RECOMMENDATIONS REGARDING THE PURCHASING,
LISTING, AND DELISTING OF PRODUCT.
Fringer, 13-028
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40. PLCB Members and employees are prohibited by the Pennsylvania Liquor Code
and the PLCB Official Code of Conduct from receiving any gratuity, favor,
entertainment, loan, gift, or any other thing of economic or monetary value from
PLCB vendors.
41. As an employee with the PLCB for over nine years, Fringer was aware of the
prohibition against accepting any gratuity, gifts, or anything of value from PLCB
vendors.
a. PLCB employees are periodically provided with reminders of the restrictions
placed on PLCB personnel by the Pennsylvania Liquor Code, \[which prohibit
them\] from accepting anything of value from vendors.
1. The most recent reminder was during or about 2011.
42. Vendor representatives make regular appearances at the PLCB offices located in
the Northwest Office Building, Harrisburg, Pennsylvania.
a. Primary vendors and/or suppliers who marketed products to the PLCB and
with whom Fringer interacted on a regular basis included Capital Wine and
Spirits, Southern Wine and Spirits, Majestic Wine & Spirits, White Rock
Distilleries, Beam Global Spirits and Wine, and Diageo.
1. Specific representatives with which Fringer dealt included, in part, the
following:
aa. Capital Wine and Spirits:
1. Mark Littles, President
2. Christina Desmond, Director of Marketing and Business
Analytics
3. Ryan Bonner, Sales Representative
bb. Southern Wine and Spirits:
1. Michael O’Brien, PA Vice-President-General Manager
Liberty Spirits Division
cc. White Rock Distilleries:
1. Tricia Brungo, Control States Manager
2. Paul Doran, Regional Sales Manager
dd. Beam Global Spirits and Wine:
1. Erin (a/k/a Red) Schiller, Pennsylvania State Account
Manager
2. Amy Sutton, Pennsylvania State Account Manager
(prior to Schiller)
43. Although prohibited by the Liquor Code and PLCB internal policy, Fringer routinely
accepted meals, tickets for entertainment functions, and gifts from PLCB vendors in
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Page 12
his position as a PLCB Merchandising and Pricing Coordinator and later as the
Chief of Product Management and Pricing Division.
a. Fringer knowingly and willingly accepted gifts, hospitality, and/or other items
of economic value on a regular basis from multiple vendor representatives,
including but not limited to: Littles, Desmond, Brungo, Doran, Schiller,
Sutton, O’Brien, and Smith.
b. But for Fringer’s employment with the PLCB, Fringer would not have been in
a position to interact with specific PLCB vendor representatives in a
purchaser/vendor relationship and be offered/receive anything of value from
them as a PLCB purchaser.
c. Fringer was provided items by vendors as part of the marketing of products
by vendors as a result of his official capacity as Merchandising and Pricing
Coordinator and/or the Chief of the Product Management and Pricing
Division.
44. While serving in the position of PLCB Merchandising and Pricing Coordinator and
later as the Chief of the Product Management and Pricing Division, Fringer
knowingly received and accepted meals/hospitality and/or gifts from Mark Littles,
Christina Desmond, and/or other representatives of Capital Wine and Spirits.
a. Littles’ expense summaries document meals/hospitality received and
accepted by Fringer as detailed in the chart below:
Activity Date Net Amount Description Additional Text
11/12/2009 $1,335.90 Dinner/Drinks PLCB Union Trust
Whiskey Fest Event J Short, K Payne, M Schwenk, A Schwenk,
T Fringer, 2 PLCB Event Specialists,
4 CWS Managers
1. Littles issued payment for the expenses incurred via use of his
personal credit card.
aa. Although Capital Wine and Spirits issues corporate credit
cards to applicable representatives for business expenses
incurred, Littles utilizes his personal credit card regarding
payment for business expenses.
1. Capital Wine and Spirits employees are permitted to
receive reimbursement from the company for legitimate
business expenses incurred.
2. Capital Wine and Spirits employees may not receive
reimbursement for personal expenses incurred.
2. Littles documented the expenses on his employee expense reports
for reimbursement and received reimbursement for said expenses.
3. The percentage of expenses which could directly be attributed to
Fringer based on the identified number of attendees is documented
below:
11/12/09 1/12 of $1,335.90 $111.33
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45. Desmond’s expense summaries document meals/hospitality and/or gifts received
and accepted by Fringer as detailed in the chart below:
Activity Date Net Amount Description Additional Text
11/03/2010 $75.00 Nordstrom gift for buyer None
10/20/2011 $117.90 Tinto: Dinner with buyers None
01/24/2012 $442.35 Holiday Inn: Rooms for Ryan, buyer, myself Wing Bowl
a. In a sworn statement given to State Ethics Commission officials, Desmond
confirmed Fringer’s receipt/acceptance of the above listed items.
b. Desmond issued payment for the expenses incurred via use of her corporate
issued credit card.
1. Capital Wine and Spirits employees are permitted to receive
reimbursement from the company for business expenses incurred.
2. Capital Wine and Spirits employees may not receive reimbursement
for personal expenses incurred.
c. Desmond documented the expenses on her employee expense reports for
reimbursement and received reimbursement for said expenses.
d. The percentage of expenses which could directly be attributed to Fringer
based on the identified number of attendees is documented below:
11/03/10 N/A (Gift Card) $75.00
10/20/11 1/3 of $117.90 $39.30
01/24/12 ½ cost for 1 of 3 rooms $73.73
Total: $188.03
e. Fringer asserts that he did not receive the Nordstrom Gift Card valued at
$75.00 from Desmond.
46. During an interview conducted on May 1, 2014, by representatives of the
Investigative Division, Fringer admitted to receiving a free round of golf in Hershey,
Pennsylvania, in 2011 and a free round of golf outside the Pittsburgh area in 2012
from Capital Wine and Spirits representatives and/or a Capital Wine and Spirits
supplier.
a. Fringer golfed with Matt Schwenk, PLCB Director of Product Selection; Scott
Pickford, a Bacardi representative (Capital Wine and Spirits supplier); and
Desmond in Hershey, Pennsylvania.
1. No information was provided by the vendors documenting the cost of
the round of golf.
2. Fringer did not pay personally for the round of golf played.
b. Fringer golfed with John Wagner, PLCB Imports Wine/Spirits Category
Manager, Bonner, and an additional Capital Wine and Spirits representative
outside the Pittsburgh area in 2012.
Fringer, 13-028
Page 14
1. No documentation was provided by the vendor confirming the value of
the golf.
aa. The round of golf was scheduled by Bonner.
bb. The idea to play/request the round of golf originated with either
Fringer or Wagner.
1. Fringer and Wagner were traveling to Pittsburgh to
attend a wine festival and met the Capital Wine and
Spirits representatives at the golf course.
2. Fringer did not pay personally for the round of golf played.
47. Fringer knowingly and willingly accepted the meals/hospitality and/or gifts from
Littles, Desmond, and other Capital Wine and Spirits representatives at a time when
Fringer was responsible for making recommendations regarding product
purchasing, as well as listing and delisting, of products from suppliers represented
by Capital Wine and Spirits.
a. Absent Fringer’s employment with the PLCB, Fringer would not have been in
a position to receive the meals/hospitality and/or gifts from Littles, Desmond,
or other Capital Wine and Spirits employees serving as PLCB vendor
representatives.
1. The total value of all the meals/hospitality received by Fringer from
Littles could not be determined.
aa. The amount directly related to Fringer from Littles totaled
$111.33.
2. The specific value of the gifts/gift cards and meals received and
accepted between 2010 and 2012 by Fringer from Desmond totaled
at least $188.03.
3. The actual value of the rounds of golf played by Fringer in Hershey
and the outer Pittsburgh area could not be determined.
b. Fringer made no personal payment for any meals/hospitality and/or gifts
provided to him from Littles, Desmond, or other Capital Wine and Spirits
representatives referenced.
THE FOLLOWING FINDINGS RELATE TO MEALS/HOSPITALITY PROVIDED TO
FRINGER BY REPRESENTATIVESOF SOUTHERN WINE AND SPIRITS.
48. While serving in the position of PLCB Merchandising and Pricing Coordinator in the
Bureau of Product Management, Fringer knowingly and willingly received and
accepted meals/hospitality from Michael O’Brien, a representative of Southern Wine
and Spirits, a supplier of alcohol/spirits to the Commonwealth.
a. Fringer was offered and accepted at least one ticket to a 2009 World Series
baseball game from O’Brien.
49. During an interview conducted on May 1, 2014, by representatives of the
Investigative Division, Fringer admitted to receiving a free ticket to a Philadelphia
Phillies 2009 World Series Home Game from O’Brien.
Fringer, 13-028
Page 15
a. Fringer was offered the ticket from O’Brien.
1. The ticket was for general admission seating on the third base line.
2. No documentation was provided by Southern Wine and Spirits to
confirm the value of the ticket provided to Fringer by O’Brien.
3. Fringer did not pay personally for the World Series ticket.
b. O’Brien accompanied Fringer to the Game.
1. No additional PLCB representatives attended the World Series Game
with Fringer and O’Brien.
50. In addition to receipt of the World Series ticket, Fringer received additional …
hospitality including meals and tickets to sporting events from O’Brien as a result of
Fringer’s employment with the PLCB as the Chief of the Product Management and
Pricing Division.
a. O’Brien’s expense report documentation provided for January 2011,
December 2011, March 2012, and May 2012 recorded business expenses in
relation to business dealings with Fringer as follows:
Date Description Location Value Value to Fringer
12/22/10 Admiral Nelson Promotion-Savannahs Harrisburg, PA $826.50 $275.50
12/09/11 New York Jets vs. Philadelphia Eagles Philadelphia, PA $694.55 $173.64
Sunday 12/18/11, 4 Tickets
12/18/11 Capital Grille/Eagles Game Philadelphia, PA $974.46 $243.62
12/18/11 Ritz Carlton-dinner Philadelphia, PA $104.70 $26.18
12/19/11 Ritz Carlton-room charges Philadelphia, PA $350.93 $350.93
03/01/12 Del Friscos Philadelphia, PA $1,000.00 $250.00
03/02/12 Delilah’s Philadelphia, PA $4,128.00 $206.40
05/02/12 Loews Hotel Philadelphia, PA $206.21 $206.21
1. O’Brien’s expense reports do not document a specific list of items
received by Fringer.
2. The specific value to Fringer was calculated by dividing the overall
expense value by known individuals present for each event as shown
below:
12/22/10 1/3 of $826.50 $275.50
12/09/11 ¼ of $694.55 $173.64
12/18/11 ¼ of $974.46 $243.62
12/18/11 ¼ of $104.70 $ 26.18
03/01/12 ¼ of $1,000.00 $250.00
03/02/12 1/20 of $4,128.00 $206.40
Total $1,175.34
Fringer, 13-028
Page 16
3. Expenses incurred by O’Brien on Fringer’s behalf on December 19,
2011, accounted for hotel room fees for Fringer in the amount of
$350.93.
51. Tickets from secondary market companies for the 2009 World Series Games held in
stst
Philadelphia averaged over $1,000 for the October 31 and November 1 home
games.
a. Tickets from secondary market companies averaged approximately $373 for
nd
the November 2 home game.
b. Despite a subpoena from the State Ethics Commission, O’Brien and/or
Southern Wine and Spirits did not provide information as to the World Series
tickets provided to Fringer.
c. The cost for a ticket, if Fringer was purchasing from a secondary market,
was at least $687.00.
THE FOLLOWING FINDINGS RELATE TO FRINGER’S RECEIPT OF ITEMS OF VALUE
FROM WHITE ROCK DISTILLERIES REPRESENTATIVES.
52. While serving in the position of PLCB Merchandising and Pricing Coordinator and
later as the PLCB Chief of Product Management and Pricing Division, Fringer
knowingly and willingly received and accepted meals/hospitality from Tricia Brungo
and/or Paul Doran, representatives of White Rock Distilleries, a supplier of
alcohol/spirits to the Commonwealth.
a. Brungo’s expense summaries document meals/hospitality received and
accepted by Fringer as detailed in the chart below:
Date Description of Expense Expense Individuals
Amount Present
03/04/2009 Lunch Meeting at Scotts $23.85 Tim Fringer
03/26/2009 Dinner/Cocktails at Distrito-Martini $559.65 Tim Fringer-PLCB,
Madness Cris, Rebecca, Tim-Capital
1. The percentage of expenses which could directly be attributed to
Fringer based on the identified number of attendees on each item
includes:
03/04/09 ½ of $23.85 $ 11.93
03/26/09 1/5 of $559.65 $111.93
Total $123.86
2. Brungo issued payment for the expenses incurred via use of her
corporate issued credit card.
3. The expenses were ultimately paid for by White Rock Distilleries.
aa. White Rock Distilleries expense summary reports provide a
section for the signature of the employee incurring the
expense which serves to certify that all expenses reported
were incurred on company business.
Fringer, 13-028
Page 17
b. Doran’s expense summaries document meals/hospitality received and
accepted by Fringer as detailed in the chart below:
Purchase Description of Expense Expense Individuals
Date Amount Present
11/12/2010 Pre-Whiskey Fest Entertainment at $75.00 Matt Schwenk-PLCB,
Fairmont Hotel Tim Fringer-PLCB
11/12/2010 Post-Whiskey Fest Entertainment, ATM $125.00 Tim Fringer-PLCB; Ryan
Receipt; Account did not take credit card Bonner, Capital Wine and
Spirits
11/12/2010 Post Whiskey Fest Entertainment at One $106.00 Tim Fringer-PLCB, Ryan
Three Five Bonner, Capital Wine and
Spirits
11/18/2011 Business Entertainment at Bossa Nova $100.00 Tim Fringer-PLCB, Ryan
Bonner-Capital Wine and
Spirits, Christina Desmond-
Capital Wine and Spirits,
Tricia Brungo-White Rock
Dist.
11/18/2011 Business Entertainment at Hyde Park $40.00 Tim Fringer-PLCB, Ryan
Bonner-Capital Wine and
Spirits, Christina Desmond-
Capital Wine and Spirits,
Tricia Brungo-White Rock
Dist.
11/19/2011 Business Entertainment at One Three $100.00 Tim Fringer-PLCB, Ryan
Five Bonner-Capital Wine and
Spirits, Christina Desmond-
Capital Wine and Spirits, Rob
Sirota-Capital Wine and
Spirits, Tricia Brungo-White
Rock Dist.
11/19/2011 Business Entertainment at One Three $165.00 Tim Fringer-PLCB, Ryan
Five (ATM Withdrawal) Bonner-Capital Wine and
Spirits, Christina Desmond-
Capital Wine and Spirits, Rob
Sirota-Capital Wine and
Spirits, Tricia Brungo-White
Rock Dist.
01/12/2012 Entertainment at PJD Ent. (ATM Receipt) $125.00 Tim Fringer-PLCB, John
Wagner-PLCB, Christina
Desmond-Capital Wine and
Spirits, Ryan Bonner-Capital
Wine and Spirits
01/12/2012 Post-dinner drinks at PJD Entertainment $200.00 Tim Fringer-PLCB, John
Wagner-PLCB, Megan
Painter-PLCB, Julie Devine-
PLCB, Christina Desmond-
Capital Wine and Spirits, Ryan
Bonner-Capital Wine and
Spirits
01/12/2012 Post-dinner drinks/food at Mulligan’s $150.00 Tim Fringer-PLCB, John
Wagner-PLCB, Megan
Painter-PLCB, Julie Devine-
PLCB, Christina Desmond-
Capital Wine and Spirits, Ryan
Bonner-Capital Wine and
Spirits
Fringer, 13-028
Page 18
1. Doran issued payment for the expenses incurred via use of his
corporate issued credit card.
2. The expenses were ultimately paid for by White Rock Distilleries.
aa. White Rock Distilleries expense summary reports provide a
section for the signature of the employee incurring the
expense which serves to certify that all expenses reported
were incurred on company business.
3. The percentage of expenses which could directly be attributed to
Fringer based on the identified number of attendees on each item
includes:
11/12/10 1/3 of $75.00 $ 25.00
11/12/10 1/3 of $125.00 $ 41.67
11/13/10 1/3 of $106.00 $ 35.33
11/18/11 1/5 of $100.00 $ 20.00
11/18/11 1/5 of $ 40.00 $ 8.00
11/19/11 1/6 of $100.00 $ 16.67
11/19/11 1/6 of $165.00 $ 27.50
01/12/12 1/5 of $125.00 $ 25.00
01/12/12 1/7 of $200.00 $ 28.57
01/12/12 1/7 of $150.00 $ 21.43
Total $249.17
53. Fringer knowingly and willingly accepted meals/hospitality from Brungo and/or
Doran while Fringer’s primary responsibilities included making recommendations
regarding product purchasing, as well as listing and delisting of products from
White Rock Distilleries.
a. Absent Fringer’s employment with the PLCB, Fringer would not have been in
a position to receive the meals/hospitality from Brungo and/or Doran, White
Rock Distilleries representatives.
1. The value of the meals/hospitality received and accepted by Fringer
from Brungo and/or Doran, PLCB vendor representatives, totaled at
least $373.03.
b. Fringer made no personal payment for the meals/hospitality.
THE FOLLOWING FINDINGS RELATE TO FRINGER’S ACCEPTANCE OF ITEMS OF
VALUE FROM BEAM GLOBAL WINE & SPIRITS REPRESENTATIVES.
54. While serving in the positions of PLCB Merchandising and Pricing Coordinator
and/or as the PLCB Chief of Product Management and Pricing Division, Fringer
knowingly and willingly received and accepted meals/hospitality from Erin Schiller
and/or Amy Sutton, representatives of Beam Global Wine & Spirits:
a. Records obtained from Beam Global Wine & Spirits documented multiple
meals paid for by Schiller at which Fringer was present as shown below:
Date Description of Location Expense Value to Fringer
Expense Amount
11/11/2010 Tavern on the Hill Steaks Enola, PA $336.07 $84.02
Fringer, 13-028
Page 19
Date Description of Location Expense Value to Fringer
Expense Amount
11/15/2011 Pats Pizza Philadelphia, PA $49.57 $8.26
11/16/2011 MAG Entertainment Philadelphia, PA $400.00 $66.67
11/16/2011 MAG Entertainment Philadelphia, PA $230.00 $38.33
Total $197.28
1. Schiller issued payment for the meal expenses incurred via use of his
corporate issued credit card.
2. The expenses were ultimately paid for by Beam Global Wine &
Spirits.
3. The percentage of expenses which could directly be attributed to
Fringer based on the identified number of attendees on each item
includes:
11/11/10 ¼ of $336.07 $84.02
11/15/11 1/6 of $49.57 $ 8.26
11/16/11 1/6 of $400.00 $66.67
11/16/11 1/6 of 230.00 $38.33
Total: $197.28
b. During an interview conducted on May 1, 2014, by representatives of the
Investigative Division, Fringer admitted to receiving multiple tickets to
various entertainment events from Sutton as shown below:
Event Description Event Date Event Location Number of Tickets Value*
Kid Rock Concert 07/25/2009 Virginia Beach, VA 1 $75.00
Kid Rock Concert 07/31/2009 Hershey, PA 2 $150.00
Kid Rock Concert 09/17/2009 Las Vegas, NV 1 $875.00^
NFL Game- 2010/2011 Pittsburgh, PA 2 $250.00
Pittsburgh Steelers
Richmond Unknown Richmond, VA 4 $600.00
International
Speedway
Total $1,950.00
*Values noted are estimates provided by Schiller
^Includes estimated value of round trip airfare and lodging
1. Fringer’s round trip air fare to and from Las Vegas was paid for by
Beam Global Wine & Spirits.
2. Fringer stayed at the MGM Grand Hotel in Las Vegas, Nevada, the
night of the September 17, 2009, Kid Rock Concert.
aa. Fringer’s hotel accommodations at the MGM Grand were paid
for by Beam Global Wine & Spirits.
Fringer, 13-028
Page 20
1. The value of the airfare and hotel accommodations was
estimated by Schiller at approximately $800.00.
3. Fringer initiated contact with Sutton seeking to obtain tickets to the
event held at the Richmond International Speedway.
55. In addition to providing meals and hospitality, Schiller also provided Fringer with an
iPad2 valued at approximately $499.00 sometime during 2011.
a. Schiller did not pay for the iPad personally or via use of his corporate credit
card.
1. The iPad2 had been given to Schiller by Beam Global Wine & Spirits
as a marketing tool.
b. Despite a subpoena from the State Ethics Commission, Schiller and/or Beam
Global Wine & Spirits did not disclose that an iPad 2 was provided to
Fringer.
56. Fringer knowingly and willingly accepted meals/hospitality and the gift of an iPad
from Schiller and/or Sutton while Fringer’s primary responsibilities included making
recommendations regarding product purchasing, listing and delisting of products
from Beam Global Wine & Spirits.
a. Absent Fringer’s employment with the PLCB, Fringer would not have been in
a position to receive the meals/hospitality from Schiller and/or Sutton, Beam
Global Wine & Spirits representatives.
1. The value of the transportation, lodging, and hospitality received and
accepted by Fringer from Schiller and Sutton, PLCB vendor
representatives, totaled at least $2,147.28.
b. The iPad had a value of at least $499.00.
c. Fringer made no personal payment for the meals/hospitality received from
Beam Global Wine & Spirits representatives valued at in excess of $600.00.
THE FOLLOWING FINDINGS RELATE TO FRINGER’S RECEIPT OF ITEMS OF VALUE
FROM MARKETING REPRESENTATIVES OF CONSTELLATION BRANDS.
57. While serving in the position of PLCB Chief of Product Management and Pricing
Division, Fringer knowingly and willingly received and accepted hospitality from
Danielle Smith (“Smith”), a representative of Constellation Brands, a supplier of
alcohol/spirits to the Commonwealth.
a. Fringer was offered and accepted two tickets from Smith in the summer and
winter of 2012 (four tickets total) to attend a Dave Matthews Band concert in
New York, New York, and Philadelphia, Pennsylvania, respectively.
b. Smith was a sales manager for Constellation Brands at that time.
58. During an interview conducted on May 1, 2014, by representatives of the
Investigative Division, Fringer admitted to receiving two tickets to the New York,
New York, venue of the Dave Matthews Band 2011 Tour from Smith.
a. Fringer was offered the tickets by Smith.
Fringer, 13-028
Page 21
1. No documentation was provided by either Smith or Constellation
identifying the value of the tickets.
2. Fringer did not pay personally for the tickets.
3. Fringer and his wife utilized the concert tickets.
b. Fringer additionally received two tickets for the December 22, 2012, Dave
Matthews show held at the Wells Fargo Center in Philadelphia,
Pennsylvania.
1. No documentation could be located to identify the value of the tickets.
2. Fringer did not pay personally for the tickets.
3. Fringer and Fringer’s spouse utilized the concert tickets.
59. In addition to receipt of the concert tickets, Fringer received additional meals and
hospitality from Smith as a result of Fringer’s employment with the PLCB.
a. Smith’s expense report documentation provided for 2011 through 2012
recorded business expenses in relation to business dealings with Fringer as
follows:
Date Description Business Purpose Location Value Value to Fringer
03/16/11 Cibo: Dinner New Zealand Travel Philadelphia, PA $106.42 $26.61
03/18/11 Jack Duggan’s: Lunch New Zealand Travel Philadelphia, PA $10.07 $5.03
03/19/11 Chili’s Too: Dinner New Zealand Travel Inglewood, CA $83.27 $20.82
03/21/11 Stamford Plaza: Entrtnmt New Zealand Travel Auckland, NZ $85.44 $17.09
03/23/11 Domino’s: Dinner New Zealand Travel Blenheim, NZ $34.84 $6.97
03/25/11 Stamford Plaza: Entrtnmt New Zealand Travel Auckland, NZ $118.62 $23.72
06/03/11 Union Square: Breakfast Meeting in Harrisburg Harrisburg, PA $8.37 $4.19
06/24/11 The Fire House: Lunch Lunch Meeting Harrisburg, PA $34.67 $17.34
09/14/11 The Fire House: Bar Tab PLCB Meeting Harrisburg, PA $69.50 $17.38
09/14/11 Amtrack: Tickets (Rnd PLCB Dreaming Tree New York, NY $248.00 $248.00*
Trip) Trip
09/17/11 Jacque’s Bistro: Dinner PLCB Dreaming Tree New York, NY $455.62 $227.82*
Trip
09/17/11 Courtyard: Entrtnmt PLCB Dreaming Tree New York, NY $41.84 $20.92*
Trip
09/18/11 Genesis: Dinner PLCB Dreaming Tree New York, NY $143.65 $71.82*
Trip
09/18/11 Courtyard: Lodging PLCB Dreaming Tree New York, NY $415.45 $415.45*
Trip
12/15/11 Flinchy’s: Lunch Meeting w/ Tim to Harrisburg, PA $44.89 $22.44
prioritize listing
Fringer, 13-028
Page 22
Date Description Business Purpose Location Value Value to Fringer
offerings
12/15/11 Wine & Spirits #2219 Review of key items & Harrisburg, PA $122.90 $15.36
new listings from 2011
w/ regular stock &
luxury managers
01/24/12 Appalachian Brew Co: Svedka Colada & Harrisburg, PA $57.99 $19.33
Lunch Stars & Stripes
Meeting
03/13/12 Aroogha’s: Dinner PLCB Meetings Harrisburg, PA $51.67 $25.83
04/03/12 The Fire House: Lunch PLCB Meeting Harrisburg, PA $33.65 $16.32
04/13/12 Wine & Spirits # 4623 Dreaming Tree Flourtown, PA $54.03 $18.01
program pitch for
PLCB
07/10/12 Sturges Speakeasy: PLCB Meeting Harrisburg, PA $37.68 $18.84
Lunch
08/13/12 Hotel Hershey: Dinner PLCB Marketing Hershey, PA $137.00 $68.50
Conference
08/14/12 Hotel Hershey: Lunch PLCB Marketing Hershey, PA $73.30 $12.22
Conference
12/22/12 Sampan: Dinner Dave Matthews/the Philadelphia, PA $820.80 $234.50*
Dreaming Tree
agenda
12/23/12 Square 1682: Entrtnmt Cocktails after Dave Philadelphia $199.18 $56.90*
Matthews Show
Total $1,631.41
*Includes an equal portion of expense attributed to Fringer’s spouse
1. Smith’s expense reports routinely document Fringer’s attendance.
2. The specific value to Fringer was calculated via division of overall
expense value by known individuals present for each event as shown
below:
03/16/11 ¼ of $106.42 $ 26.61
03/18/11 ½ of $10.07 $ 5.03
03/19/11 ¼ of $83.27 $ 20.82
03/21/11 1/5 of $85.44 $ 17.09
03/23/11 1/5 of $34.84 $ 6.97
03/25/11 1/5 of $118.62 $ 23.72
06/03/11 ½ of $8.37 $ 4.19
06/24/11 ½ of $34.67 $ 17.34
09/14/11 ¼ of $69.50 $ 17.38
09/14/11 N/A $ 248.00
*
09/17/11 ½ of $455.62 $ 227.82
09/17/11 ½ of $41.84 $ 20.92
09/18/11 ½ of $143.65 $ 71.82
09/18/11 N/A $ 415.45
12/15/11 ½ of $44.89 $ 22.44
12/15/11 1/8 of $122.90 $ 15.36
01/24/12 1/3 of $57.99 $ 19.33
03/13/12 ½ of $51.67 $ 25.83
Fringer, 13-028
Page 23
*
04/03/12 1/2 of $33.65 $ 16.32
04/13/12 1/3 of $54.03 $ 18.01
07/10/12 ½ of $37.68 $ 18.84
08/13/12 ½ of $137.00 $ 68.50
08/14/12 1/6 of $73.30 $ 12.22
12/22/12 2/7 of $820.80 $ 234.50
12/23/12 2/7 of $199.18 $ 56.90
Total $1,631.41
*
\[sic\]. \[These particular stipulated amounts reflect immaterial mathematical errors.\]
b. Fringer asserts that he was not present at the events occurring on December
15, 2011, April 13, 2012, nor August 13-14, 2012 (total attributable amount
$114.09).
60. Fringer knowingly and willingly accepted the hospitality from Smith, while Fringer’s
primary responsibilities included making recommendations regarding product
purchasing, listing and delisting of products from Constellation Brands.
a. Absent Fringer’s employment with the PLCB, Fringer would not have been in
a position to receive hospitality from Smith.
b. The specific total value of the hospitality received and accepted by Fringer
from Smith could not be determined.
1. The value of the meals/hospitality received and accepted by Fringer
from Smith, a PLCB vendor representative, totaled at least $1,631.41.
2. No documents were provided by Constellation Brands which identified
the value of the tickets for either of the Dave Matthews concerts
attended by Fringer and members of his immediate family.
c. Fringer made no personal payment for the meals/hospitality.
61. In addition to regularly accepting meals/hospitality and gifts paid for by PLCB
vendor representatives and or Commonwealth suppliers specifically identified in
this document, Fringer routinely was offered and accepted wine and/or spirit
products from multiple PLCB vendors and suppliers at no cost.
a. Wine and/or spirits were regularly provided to Fringer and other PLCB
employees involved in the marketing side of the agency.
1. Wine/spirits are provided under the guise of sampling; however,
marketing employees, executive and Board Members are frequently
provided with multiple bottles of wine/spirits for personal
consumption.
b. Over the years Fringer received multiple bottles of alcohol from various
vendor representatives during his tenure as a PLCB Merchandising and
Pricing Coordinator and later as the Chief of the Product Management and
Pricing Division.
c. The majority of the gifts of alcohol provided to Fringer from the various
vendors were delivered to Fringer’s workspace at the PLCB in the Northwest
Office Building.
d. The specific value of all wine and/or spirits received by Fringer could not be
positively determined.
Fringer, 13-028
Page 24
1. Vendors did not provide records to document the number of bottles of
alcohol or the value of alcohol provided to Fringer.
62. During an interview conducted on May 1, 2014, by representatives of the
Investigative Division, Fringer stated, in part, the following:
a. Various PLCB employees received gift cards from vendors, especially on
PLCB employee birthdays and Christmas;
1. The gift cards were often tailored to the recipient’s specific interests.
b. Extra sample bottles of alcohol were often provided to PLCB employees,
especially during the listing and delisting periods;
c. The general atmosphere related to vendors providing gifts, hospitality, etc.,
to PLCB employees was “don’t ask, don’t tell”;
d. Fringer was present at various lunches, dinners, and/or after-hours events
with additional PLCB employees at which the costs for the meals, event,
and/or entertainment were paid by PLCB vendors;
e. Fringer received multiple gifts, entertainment, or items of value from vendors
for which he did not make personal payment or reimburse the vendor
representative; and
1. Fringer was at times offered items from vendors and on one occasion
specifically solicited an item from a vendor.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT FRINGER FAILED TO
DISCLOSE HIS RECEIPT OF TRANSPORTATION, LODGING, AND/OR HOSPITALITY
ON STATEMENTS OF FINANCIAL INTERESTS FILED FOR THE 2009, 2011, AND 2012
CALENDAR YEARS.
63. Statement of Financial Interests (SFI) filing requirements for public officials and
public employees are mandated by Section 1104 of the State Ethics Act.
a. Section 1104 of the State Ethics Act requires a public official/employee to file
st
an SFI no later than May 1 of each year that he/she holds such a position
and the year after leaving such a position.
st
64. Fringer was required to file Statements of Financial Interests by May 1 annually in
his position as the Chief of the PLCB Product Management and Pricing Division.
st
a. Fringer was also required to file SFIs by May 1 annually in his position as a
PLCB Merchandising and Pricing Coordinator.
65. Information to be disclosed on Statements of Financial Interests filed by public
officials and public employees is mandated by Section 1105 of the State Ethics Act.
a. Section 1105(b), Subsections 1-10 identify specific information to be
disclosed, as well as exceptions to disclosure requirements, when
applicable.
1. Section 1105(b)(7) mandates disclosure of the following on
Statements of Financial interests filed:
Fringer, 13-028
Page 25
“The name and address of the source and the amount of any payment
for or reimbursement of actual expenses for transportation and
lodging or hospitality received in connection with public office or
employment where such actual expenses for transportation and
lodging or hospitality exceed $650 in an aggregate amount per year.
This paragraph shall not apply to expenses reimbursed by a
governmental body or to expenses reimbursed by an organization or
association of public officials or employees of political subdivisions
which the public official or employee serves in an official capacity.”
66. Fringer filed Statements of Financial Interests for calendar years 2009 through
2013 in compliance with Section 1104 of the State Ethics Act as follows:
Date Filed Calendar Year
02/09/2010 2009
01/25/2011 2010
03/19/2012 2011
01/22/2013 2012
a. Fringer disclosed transportation, lodging, and hospitality received from the
American Chamber of Commerce regarding a trip to New Zealand and from
the Virgin Islands Economic Development Council on his Statement of
Financial Interests filed for calendar year 2011.
1. Fringer’s 2009, 2010, and 2012 calendar year Statements of
Financial Interests documented “none” in relation to transportation,
lodging, and hospitality received.
b. Fringer’s signature was present on each Statement of Financial Interests
filed, signifying that the information provided on the form is true and correct
to the best of his knowledge, information, and belief subject to penalties
prescribed by 18 Pa.C.S. § 4904 (unsworn falsification to authorities) and
the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1109(b).
67. Fringer never disclosed or otherwise identified the name and address of any
payment for or reimbursement of actual expenses for transportation, lodging, and/or
hospitality received in excess of $650.00 in the aggregate amount per year and gifts
received in excess of $250.00 from vendors doing business with the PLCB on his
Statements of Financial Interests filed for calendar years 2009, 2011 and 2012 as
documented below:
Year Source Description Minimum
Value
2009 Jim Beam Global Wine & Spirits: Aggregate tickets, lodging, airfare $1,100.00
Amy Sutton
Southern Wine and Spirits: World Series tickets $687.00
2009 Mike O’Brien
2011 Southern Wine and Spirits: Aggregate tickets, lodging, meals $794.37
Mike O’Brien
2011 Jim Beam Global Wine & Spirits: iPad $499.00
Red Schiller
2011 Constellation Brands: Aggregate transportation, meals, $1,160.96
Danielle Smith entertainment, lodging
Fringer, 13-028
Page 26
Year Source Description Minimum
Value
2012 Southern Wine and Spirits: Aggregate lodging, meals $662.61
Mike O’Brien
III.DISCUSSION:
As the Chief of the Product Management and Pricing Division of the Pennsylvania
Liquor Control Board (“PLCB”) from approximately October 31, 2010, until September 16,
2013, Respondent Timothy Fringer, hereinafter also referred to as “Respondent,”
“Respondent Fringer,” and “Fringer,” was a public official/public employeesubject to the
provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101
et seq.
Per the allegations and Consent Agreement, the parties are in agreement that in a
prior position as Spirits Category Manager for the PLCB, Respondent Fringer was likewise
a public official/public employeesubject to the provisions of the Ethics Act. The Stipulated
Findings do not indicate the dates when Respondent held such position.
The allegations are that Respondent Fringerviolated Section 1103(a) of the Ethics
Act when he used the authority of his public position for the private pecuniary benefit of
himself when he received various gifts and/or travel, hospitality and lodging from vendors
of the PLCB at a time when said vendor(s) had ongoing business/contractual relations with
the PLCB; and when he failed to disclose on Statements of Financial Interests (“SFIs”)
filed for the 2009, 2011 and 2012 calendar years, his receipt of travel, lodging, and/or
hospitality in excess of an aggregate amount of $650.00 from any single vendor.
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.
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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.
Although Section 1105(b)(7) of the Ethics Act is not referenced in the allegations,
the parties have, per their Consent Agreement, included it as a recommended basis for the
disposition of this matter. Subject to certain statutory exceptions not applicable to this
matter, Section 1105(b)(7) of the Ethics Act requires the filer to disclose on the SFI the
name and address of the source and the amount of any payment for or reimbursement of
actual expenses for transportation and lodging or hospitality received in connection with
public office or employment where such actual expenses exceed $650 in an aggregate
amount per year.
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.
Fringer began employment with the PLCB on July 12, 2004. Effective June 3, 2007,
Fringer began working within the PLCB Bureau of Product Management as the
Merchandising and Pricing Coordinator. Although the Stipulated Findings do not mention
Fringer’s service as Spirits Category Manager for the PLCB, the allegations and Consent
Agreement indicate that at some point in time, Fringer served in that capacity. Fringer was
ultimately employed as the Chief of the Product Management and Pricing Division of the
PLCB from approximately October 31, 2010, until September 16, 2013. Fringer voluntarily
separated from Commonwealth employment effective September 16, 2013.
The PLCB is governed by a three-Member Board. The PLCB regulates the sale of
alcohol in Pennsylvania. In order for an alcoholic beverage to be sold in Pennsylvania, it
must be authorized for sale by the PLCB. The PLCB is the only retail seller of wine/spirits
in the Commonwealth.
The PLCB adds and removes products sold in PLCB retail stores through a process
known as “listing” and “delisting.” The parties have stipulated that the PLCB relies
primarily on recommendations made by James Short, the Director of Marketing and
Merchandising, and his subordinates—which included Fringer in his role as the Chief of
the Product Management and Pricing Division—when making listing/delisting decisions.
The Board conducted no independent review of products and relied on staff
recommendations.
As Chief of the Product Management and Pricing Division of the PLCB, Fringer’s
responsibilities and duties specifically included: (1) evaluating and presenting supplier
product proposals to the Director of Product Selection, who was Fringer’s immediate
supervisor; (2) providing direction and approval of the development, revision, and
implementation of procedures for listing and delisting products; (3) providing direction and
approval of the activities of the category managers in the evaluation of new product
proposals and the evaluation of the review of products for delisting, for presentation to the
Director of Product Selection; (4) authorizing the final assignment of certain weighting
criteria used in relation to listing and delisting; and (5) communicating directly with
vendors/suppliers regarding questions, problems, and clarification of all aspects of
category management.
A manufacturer/supplier of alcoholic beverage products may market its products to
the PLCB directly or through a vendor or broker. The primary vendors providing products
to the PLCB are: (1) Southern Wine and Spirits (“Southern”); (2) Capital Wine and Spirits
Fringer, 13-028
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(“Capital”); and (3) Allied Beverage Group, LLC (“Allied”), which has a subsidiary named
“Majestic Wine & Spirits, USA, LLC” (“Majestic”).
Products for which Southern serves as broker and/or vendor/vendor of record
account for approximately 6.43% to 6.85% of the PLCB total Cost of Goods Sold during the
last five (5) years.
Capital is a member of the “Charmer Sunbelt Group,” a nationwide distributor of
wine, spirits, beer, and other beverages. Products brokered by Capital account for a total
of approximately 19.11% to 22.03% of the PLCB total Cost of Goods Sold during the last
five (5) years. In Pennsylvania, Capital/Charmer Sunbelt Group represents a marketing
partnership named “the Alliance,” which is comprised of wine/spirit suppliers Bacardi USA
(“Bacardi”), Brown-Forman, and Remy Cointreau (“Remy”).
Allied was created by the mergers of The Baxter Group, Inc., F&A Distributing
Company and The Jaydor Corporation. Allied ranks among the ten largest wine and spirits
distributors in the United States. Allied subsidiary Majestic is a Pennsylvania brokerage
and vendor/vendor of record for products sold to the PLCB. Allied’s and/or Majestic’s
sales account for approximately 1.51% to 2.18% of PLCB total Cost of Goods Sold during
the last five (5) years.
Executives and marketing representatives from vendors supplying products to the
PLCB would meet with PLCB employees to market products. Those representatives
offered gifts and hospitality to PLCB representatives year round, including when
listing/delisting of products was occurring. Items of value were routinely provided to PLCB
officials in decision making positions regarding product selection and placement.
Representatives of the numerous PLCB vendors frequently contacted Fringer and
various other PLCB representatives to market new and existing products. Some of these
products were subject to the listing/delisting process. Other products were luxury products
which are not subject to listing/delisting procedures.
Vendor representatives offered and provided Fringer with items of value, including
but not limited to alcohol, meals, golf outings, gift cards/certificates, and tickets to
entertainment/sporting events.
PLCB Members and employees are prohibited by the Pennsylvania Liquor Code
and the PLCB Official Code of Conduct from receiving any gratuity, favor, entertainment,
loan, gift, or any other thing of economic or monetary value from PLCB vendors. PLCB
employees are periodically provided with reminders of the restrictions placed on PLCB
personnel by the Pennsylvania Liquor Code, which prohibit them from accepting anything
of value from vendors. The most recent reminder was during or about 2011.
As an employee with the PLCB for over nine years, Fringer was aware of the
prohibition against accepting any gratuity, gifts, or anything of value from PLCB vendors.
Nevertheless, Fringer routinely accepted meals, tickets for entertainment functions, and
gifts from PLCB vendors in his positions as a PLCB Merchandising and Pricing
Coordinator and Chief of the Product Management and Pricing Division.
Fringer asserts that he received explicit and implicit direction from the Director of
Marketing and Merchandising, as well as from the Director of Product Selection, to accept
items from vendors, including alcohol, dinners and the like. Specifically, Fringer asserts
that he was told that the Director of Marketing and Merchandising and/or the Director of
Product Selection were aware that PLCB employees received items from vendors, but so
long as no one complains or talks about it, “it never happened.”
Fringer, 13-028
Page 29
Fringer accepted items of value from PLCB vendors at a time when the PLCB was
considering listing/delisting the offering vendors’ products. Fringer knowingly and willingly
accepted gifts, hospitality, and/or other items of economic value on a regular basis from
multiple vendor representatives including:
Capital representatives Cristina Desmond (“Desmond”) and Mark Littles (“Littles”);
Southern representative Michael O’Brien (“O’Brien”);
White Rock Distilleries (“White Rock”) representatives Tricia Brungo (“Brungo”) and
Paul Doran (“Doran”);
Beam Global Wine & Spirits (“Beam Global”) representatives Erin “Red” Schiller
(“Schiller”) and Amy Sutton (“Sutton”); and
Constellation Brands representative Danielle Smith (“Smith”).
Fringer was provided items by vendors as part of the marketing of products by
vendors as a result of his official capacity as Merchandising and Pricing Coordinator
and/or the Chief of the Product Management and Pricing Division. But for Fringer’s
employment with the PLCB, Fringer would not have been in a position to interact with
specific PLCB vendor representatives in a purchaser/vendor relationship and be
offered/receive anything of value from them as a PLCB purchaser.
Capital:
While serving in the positions of PLCB Merchandising and Pricing Coordinator and
Chief of the Product Management and Pricing Division, Fringer knowingly received and
accepted hospitality and/or gifts from Capital representatives. The total value of all the
hospitality received by Fringer from Littles could not be determined but was at least
$111.33. The value of the gifts/gift cards and meals received and accepted between 2010
and 2012 by Fringer from Desmond totaled at least $188.03.
Additionally, Fringer received from Capital representatives and/or a Capital supplier
rounds of golf in Hershey, Pennsylvania, in 2011 and outside the Pittsburgh area in 2012,
the value of which hospitality could not be determined.
Southern:
While serving in the position of PLCB Merchandising and Pricing Coordinator,
Fringer was offered and accepted from O’Brien at least one ticket to a 2009 World Series
baseball game. The cost for such a ticket, if purchased from a secondary market, was at
least $687.00.
From December 2010 through May 2012, Fringer received additional hospitality and
lodging from O’Brien totaling $1,175.34 as a result of Fringer’s employment with the PLCB
as the Chief of the Product Management and Pricing Division.
White Rock:
While serving in the positions of PLCB Merchandising and Pricing Coordinator and
Chief of Product Management and Pricing Division, Fringer knowingly and willingly
received and accepted hospitality from Brungo and/or Doran, representatives of White
Rock. The value of the hospitality received and accepted by Fringer from Brungo and/or
Doran totaled at least $373.03, with $123.86 of that amount received by Fringer in March
2009 and $249.17 of that amount received by Fringer from November 2010 through
January 2012.
Fringer knowingly and willingly accepted hospitality from Brungo and/or Doran while
Fringer’s primary responsibilities included making recommendations regarding product
Fringer, 13-028
Page 30
purchasing, as well as listing and delisting of products from White Rock. Absent Fringer’s
employment with the PLCB, Fringer would not have been in a position to receive the
aforesaid hospitality from Brungo and/or Doran.
Beam Global:
While serving in the positions of PLCB Merchandising and Pricing Coordinator
and/or as the PLCB Chief of Product Management and Pricing Division, Fringer accepted
transportation, lodging and hospitality totaling at least $2,147.28 from Schiller and/or
Sutton, representatives of Beam Global.
From November 2010 through November 2011, Fringer received, at the expense of
Beam Global, multiple meals totaling $197.28.
As detailed in Fact Finding 54 b, Fringer also received from Sutton transportation,
lodging and hospitality totaling $1,950.00, paid for by Beam Global, related to three Kid
Rock concerts, an NFL Pittsburgh Steelers game, and an event at the Richmond
International Speedway. Fringer initiated contact with Sutton seeking to obtain tickets to
the event held at the Richmond International Speedway.
In 2011 Schiller provided to Fringer an iPad2 with a value of at least $499.00. The
iPad2 had been given to Schiller by Beam Global as a marketing tool.
Fringer knowingly and willingly accepted hospitality and the gift of an iPad from
Schiller and/or Sutton while Fringer’s primary responsibilities included making
recommendations regarding purchasing, listing and delisting of products from Beam
Global. Absent Fringer’s employment with the PLCB, Fringer would not have been in a
position to receive hospitality from Beam Global representatives.
Constellation Brands:
While serving in the position of PLCB Chief of Product Management and Pricing
Division, Fringer knowingly and willingly received and accepted hospitality from Smith, a
representative of PLCB supplier Constellation Brands. In 2012 Fringer was offered and
accepted from Smith four tickets for Dave Matthews Band concerts. Fringer and his wife
utilized the concert tickets. No documents were provided/located to identify the value of
the tickets.
Fringer received additional hospitality and lodging totaling at least $1,631.41 from
Smith as a result of Fringer’s employment with the PLCB.
Fringer knowingly and willingly accepted hospitality from Smith, while Fringer’s
primary responsibilities included making recommendations regarding purchasing, listing
and delisting of products from Constellation Brands. Absent Fringer’s employment with the
PLCB, Fringer would not have been in a position to receive hospitality from Smith.
Wine/Spirit Products:
During his tenure as a PLCB Merchandising and Pricing Coordinator and later as
the Chief of the Product Management and Pricing Division, Fringer received, at no cost to
Fringer, multiple bottles of alcohol from various vendor representatives. Wine and/or
spirits were regularly provided to Fringer and other PLCB employees involved in the
marketing side of the agency. Per the Stipulated Findings, wine/spirits are provided under
the guise of sampling; however, marketing employees, executive and Board Members are
frequently provided with multiple bottles of wine/spirits for personal consumption. The
Fringer, 13-028
Page 31
specific value of all wine and/or spirits received by Fringer could not be positively
determined.
During an interview conducted on May 1, 2014, by representatives of the
Investigative Division, Fringer stated, inter alia:
Various PLCB employees received gift cards from vendors, which were often
tailored to the recipient’s specific interests;
Extra sample bottles of alcohol were often provided to PLCB employees, especially
during the listing and delisting periods;
The general atmosphere related to vendors providing gifts, hospitality, and the like
to PLCB employees was “don’t ask, don’t tell”;
Fringer was present at various lunches, dinners, and/or after-hours events with
additional PLCB employees at which the costs for the meals, event, and/or
entertainment were paid by PLCB vendors;
Fringer received multiple gifts, entertainment, or items of value from vendors for
which he did not make personal payment or reimburse the vendor representative,
and Fringer was at times offered items from vendors and on one occasion
specifically solicited an item from a vendor.
The parties are in agreement that as the Chief of the PLCB Product Management
and Pricing Division and as a PLCB Merchandising and Pricing Coordinator, Fringer was
required to file SFIs. On his SFIs for calendar years 2009, 2011 and 2012, Fringer did not
disclose or otherwise identify the name and address of any payment for or reimbursement
of actual expenses for transportation, lodging, and/or hospitality received in excess of
$650.00 in the aggregate amount per year and gifts received in excess of $250.00 from
vendors doing business with the PLCB as set forth below:
Year Source Description Minimum
Value
2009 Beam Global: Sutton Aggregate tickets, lodging, airfare $1,100.00
2009 Southern: O’Brien World Series tickets $687.00
2011 Southern: O’Brien Aggregate tickets, lodging, meals $794.37
2011 Beam Global: Schiller iPad $499.00
2011 Constellation Brands: Smith Aggregate transportation, meals, $1,160.96
entertainment, lodging
2012 Southern: O’Brien Aggregate lodging, meals $662.61
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 Fringer, as the Chief of
the Product Selection/Category Management for
the Pennsylvania Liquor Control Board (PLCB)
and/or as the Spirits Category Manager for the
PLCB, accepted/received various gifts and/or
Fringer, 13-028
Page 32
travel, hospitality and lodging from vendors of
the PLCB, at a time when he was participating in
and/or making recommendations/decisions
regarding the PLCB’s purchase of wine and
spirits from those vendors;
b. That a violation of Section 1105(b)(7) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. §1105(b)(7) occurred when Fringer
failed to disclose on Statement\[s\] of Financial
Interests filed for the 2009, 2011 and 2012
calendar years, his receipt of Travel, Lodging,
and/or Hospitality in excess of an aggregate
amount of $650.00 from any single vendor.
4. Fringer agrees to make payment in the amount of $7,180.52 in
settlement of this matter payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Fringer agrees to file complete and accurate Statements of
Financial Interests with the Pennsylvania Liquor Control Board
(PLCB) through the Pennsylvania State Ethics Commission,
for \[the\] 2009, 2011 and 2012 calendar years within thirty (30)
days of the issuance of the final adjudication in this matter.
6. Fringer agrees to not accept any reimbursement,
compensation or other payment from the PLCB/
Commonwealth of Pennsylvania representing a full or partial
reimbursement of the amount paid in settlement of this matter.
7. The Investigative Division and Fringer acknowledge that:
a. All Orders issued by the State Ethics
Commission are provided to the Pennsylvania
Office of the Attorney General as a matter of
course;
b. All Orders issued by the State Ethics
Commission become a matter of public record
and may be acted upon \[by\] law enforcement
authority(ies) as they deem appropriate.
c. The State Ethics Commission is not prohibited
from initiating appropriate enforcement actions in
the event of Respondent's failure to comply with
the terms of the Consent Agreement or the
Commission's Final Order; nor is the State
Ethics Commission prohibited from cooperating
with any other authority who may so choose to
review any aspect arising from the issuance of
the State Ethics Commission’s Final Order in this
matter.
Consent Agreement, at 1-2.
Fringer, 13-028
Page 33
In considering the Consent Agreement, we accept the recommendation of the
parties for a finding that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Fringer, as the Chief of the Product Selection/Category
Management for the PLCB and/or as the Spirits Category Manager for the PLCB,
accepted/received various gifts and/or travel, hospitality and lodging from vendors of the
PLCB, at a time when he was participating in and/or making recommendations/decisions
regarding the PLCB’s purchase of wine and spirits from those vendors.
The acceptance of gifts, transportation, lodging or hospitality from donor(s) with
which a public official/public employee has involvement in his public capacity can form the
basis for a conflict of interest under Section 1103(a) of the Ethics Act. See, Cohen,
Opinion 03-006 (regarding a PLCB Hearing Examiner’s prospective acceptance of item(s)
from licensees); see, e.g., Short, Order 1629; Haldeman, Order 1443; Munford, Order
1390; Espenshade, Order 1387.
But for Fringer’s employment with the PLCB, Fringer would not have been in a
position to interact with specific PLCB vendor representatives in a purchaser/vendor
relationship and be offered/receive anything of value from them as a PLCB purchaser.
Fringer used the authority of his PLCB positions for prohibited private pecuniary benefits
when he performed his official duties as to PLCB vendors while receiving gifts and/or
travel, hospitality and lodging from such vendors.
Based upon the Stipulated Findings and Consent Agreement of the parties, we hold
that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when
Fringer, as the Chief of the Product Selection/Category Management for the PLCB and/or
as the Spirits Category Manager for the PLCB, accepted/received various gifts and/or
travel, hospitality and lodging from vendors of the PLCB, at a time when he was
participating in and/or making recommendations/decisions regarding the PLCB’s purchase
of wine and spirits from those vendors.
We agree with the parties and we hold that a violation of Section 1105(b)(7) of the
Ethics Act, 65 Pa.C.S. § 1105(b)(7), occurred when Fringer failed to disclose on SFIs filed
for the 2009, 2011 and 2012 calendar years his receipt of travel, lodging, and/or hospitality
in excess of an aggregate amount of $650.00 from any single vendor. See, Fact Finding
67.
As part of the Consent Agreement, Fringer has agreed to make payment in the
amount of $7,180.52 payable to the Commonwealth of Pennsylvania and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Fringer has agreed to not accept any reimbursement, compensation or other payment from
the PLCB/Commonwealth of Pennsylvania representing a full or partial reimbursement of
the amount paid in settlement of this matter. Fringer has also agreed to file complete and
accurate SFIs with the PLCB through this Commission for the 2009, 2011 and 2012
calendar years 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, Fringer is directed to make
payment in the amount of $7,180.52 payable to the Commonwealth of Pennsylvania and
th
forwarded to this Commission by no later than the thirtieth (30) day after the mailing date
of this adjudication and Order.
Per the Consent Agreement of the parties, Fringer is further directed to not accept
any reimbursement, compensation or other payment from the PLCB/Commonwealth of
Fringer, 13-028
Page 34
Pennsylvania representing a full or partial reimbursement of the amount paid in settlement
of this matter.
To the extent he has not already done so, Fringer is directed to file complete and
accurate SFIs with the PLCB through this Commission for the 2009, 2011 and 2012
th
calendar years by no later than the thirtieth (30) day after the mailing date of this
adjudication and Order.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
1. Timothy Fringer, as the Chief of the Product Management and Pricing Division of
the Pennsylvania Liquor Control Board (“PLCB”) from approximately October 31,
2010, until September 16, 2013, and in a prior position as Spirits Category Manager
for the PLCB, was a public official/public employee subject to the provisions of the
Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
2. Fringer violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he,
as the Chief of the Product Selection/Category Management for the PLCB and/or as
the Spirits Category Manager for the PLCB, accepted/received various gifts and/or
travel, hospitality and lodging from vendors of the PLCB, at a time when he was
participating in and/or making recommendations/decisions regarding the PLCB’s
purchase of wine and spirits from those vendors.
3. A violation of Section 1105(b)(7) of the Ethics Act, 65 Pa.C.S. § 1105(b)(7),
occurred when Fringer failed to disclose on Statements of Financial Interests filed
for the 2009, 2011 and 2012 calendar years his receipt of travel, lodging, and/or
hospitality in excess of an aggregate amount of $650.00 from any single vendor.
In Re: Timothy Fringer, : File Docket: 13-028
Respondent : Date Decided: 5/5/15
: Date Mailed: 5/12/15
ORDER NO. 1654
1. Timothy Fringer (“Fringer”) violated Section 1103(a) of the Public Official and
Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when he, as the Chief of
the Product Selection/Category Management for the Pennsylvania Liquor Control
Board (“PLCB”) and/or as the Spirits Category Manager for the PLCB,
accepted/received various gifts and/or travel, hospitality and lodging from vendors
of the PLCB, at a time when he was participating in and/or making
recommendations/decisions regarding the PLCB’s purchase of wine and spirits from
those vendors.
2. A violation of Section 1105(b)(7) of the Ethics Act, 65 Pa.C.S. § 1105(b)(7),
occurred when Fringer failed to disclose on Statements of Financial Interests filed
for the 2009, 2011 and 2012 calendar years his receipt of travel, lodging, and/or
hospitality in excess of an aggregate amount of $650.00 from any single vendor.
3. Per the Consent Agreement of the parties, Fringer is directed to make payment in
the amount of $7,180.52 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the
th
thirtieth (30) day after the mailing date of this Order.
4. Per the Consent Agreement of the parties, Fringer is further directed to not accept
any reimbursement, compensation or other payment from the PLCB/
Commonwealth of Pennsylvania representing a full or partial reimbursement of the
amount paid in settlement of this matter.
5. To the extent he has not already done so, Fringer is directed to file complete and
accurate Statements of Financial Interests with the PLCB through the Pennsylvania
State Ethics Commission for the 2009, 2011 and 2012 calendar years by no later
th
than the thirtieth (30) day after the mailing date of this Order.
6. Compliance with Paragraphs 3, 4, and 5 of this Order will result in the closing of this
case with no further action by this Commission.
a. Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
___________________________
Nicholas A. Colafella, Chair