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HomeMy WebLinkAbout1655 Noon In Re: Bryon C. Noon, : File Docket: 12-016 Respondent : X-ref: Order No. 1655 : 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 Bryon Noon, a public official/public employee in his capacity as the Director of \[the Bureau of\] Employment Training Programs for the \[Pennsylvania\] Department of Public Welfare, violated \[Sections 1103(a), 1105(b)(8), and 1105(b)(9)\] of the State Ethics Act (Act 93 of 1998) when he used the authority of his public position for the private pecuniary benefit of himself, a member of his immediate family and/or a business with which he and/or a member of his immediate family is associated by approving or awarding grants to companies at a time when he had a reasonable expectation that Ankh Systems Consulting, a business with which he and a member of his immediate family are associated, would receive subcontracts; when he failed to disclose his office, directorship or employment in Ankh Systems Consulting on Statements of Financial Interests filed for the 2007, 2008, 2009 and 2010 calendar years; and when he failed to disclose his financial interest in Ankh Systems Consulting, a legal entity in business for profit, on Statements of Financial Interests filed for the 2007, 2008, 2010 and 2011 calendar years. II.FINDINGS: 1. The Investigative Division of the State Ethics Commission received information alleging that Bryon C. Noon (“Noon”) violated provisions of the State Ethics Act (Act 93 of 1998). 2. Upon review of the information the Investigative Division initiated a preliminary inquiry on April 12, 2012. Noon, 12-016 Page 2 3. On June 6, 2012, a letter was forwarded to Noon by the Investigative Division of the State Ethics Commission informing himthat a complaint against him was received by the Investigative Division and that a full investigation was being commenced. 4. The Commission issued an order on September 24, 2012, granting a first ninety day extension. 5. The Commission issued an order on January 28, 2013, granting a second ninety day extension. 6. The Investigative Complaint/Findings Report was mailed to Noon on May 31, 2013. 7. On or about November 18, 2013, a Criminal Information was filed by the Pennsylvania Office of the Attorney General alleging that Noon had committed criminal acts, including violating 65 Pa.C.S. § 1103(a). 8. On or about April 14, 2014, Noon pled guilty to violations of law, including a violation of 65 Pa.C.S. § 1103(a). a. Noon’s criminal matter was docketed at: CP-22-CR-0005356-2013. b. Noon’s plea included a plea to violations of the State Ethics Act (65 Pa.C.S. § 1103(a)) and included conduct which was the subject of the Investigative Complaint/Findings Report issued by the State Ethics Commission on May 31, 2013. 9. Noon was employed by the Commonwealth of Pennsylvania Department of Public Welfare (“DPW”) from April 11, 1994, until October 28, 2011. a. During his employment with DPW, Noon held the following positions: Dates Position # Position Title 12/08/08 - 10/28/11 00058832 OIM Employment Training Director 01/12/08 - 12/07/08 00000458 Welfare Program Executive 1 11/28/03 - 01/11/08 166963 Human Services Program Specialist Supervisor 05/02/01 - 11/28/03 166963 Income Maintenance Program Specialist Supervisor 12/10/97 - 05/02/01 060676 Income Maintenance Program Specialist 04/11/94 - 12/10/97 204456 Income Maintenance Caseworker. 10. Noon held the position of Office of Income Maintenance (“OIM”) Employment Training Director, Bureau of Employment Training Programs (“BETP”), from approximately December 8, 2008, until October 28, 2011. Noon’s job duties for this position included in part the following: a. Work involves the review, analysis, evaluation, development and promulgation of program policies, plans and objectives; assessing the need for changes in programmatic and administrative practices and procedures; and providing technical and administrative assistance to management officials, program directors and employment/training agencies relating to program development, implementation and coordination. Work includes directing the development and coordination of state and local level inter- agency agreements for delivery of employment/training resources and services; identifying funding sources, and developing grant applications; and developing and disseminating informational material on employment/training matters. Noon, 12-016 Page 3 b. Noon reported directly to the Deputy Secretary for Income Maintenance of DPW. 11. Noon, in his official capacity as Director of the BETP, had allocation control of annual funding of approximately $212 million in training program funds. a. These funds originated from state and federal sources \[and\] were provided to DPW for allocation. b. These funds were released by DPW, through the Pennsylvania Department of Labor and Industry (“L&I”), to regional Workforce Investment Boards (“WIBs”) for distribution as the result of Memorandums of Understanding (“MOUs”) between DPW and L&I. c. The BETP maintained program oversight, while L&I provided fiscal oversight of the WIBs. 1. All allocation decisions were the responsibility of Noon as Director of the BETP. 12. As Director of the BETP, Noon had supervisory responsibility over BETP Departments and employees including: a. Susan Pulaski, Director of Fiscal & Data Management; b. Deborah Bush, Fiscal Systems Analyst, a subordinate employee under Pulaski’s direct supervision; c. Tamila Lay, Director, Policy, CAO-Based Program & Development; 1. Lay has responsibility for program operational policy and County Assistance Offices. d. Ruth Ann Van Dyke, Director of Program Implementation, whose primary responsibility is to monitor BETP programs; and e. Leon Simmons, Director of BETP’s Philadelphia Division, contracted employee monitoring program services in the Philadelphia region. 13. DPW employees Susan Pulaski and Deborah Bush had primary responsibility in implementing BETP funding initiatives at Noon’s direction. a. Pulaski and Bush had oversight responsibility of BETP funding allocations determined and approved by Noon. b. Both Pulaski and Bush were supervised by Noon. 14. The BETP provided program funding to Workforce Investment Boards (“WIBs”) and/or Workforce Investment Areas (“WIAs”) of approximately $212 million during each of the 2009-2010 and 2010-2011 Commonwealth fiscal years. a. Between 2009 and 2011 there were approximately 23 WIBs statewide that received and distributed BETP funding. 1. The WIBs are divided into regions. Noon, 12-016 Page 4 b. Funding to the 23 WIBs was determined by the Fiscal and Data Management Division under Noon’s direct supervision as the BETP Director. c. Base funding allocations were established by the BETP Fiscal and Data Management Division annually. 1. The prior fiscal year allocation is used as the baseline for the next year’s allocation. 2. Allocation changes can be made as a result of a request for increased funding submitted to the BETP Fiscal and Data Management Division. 3. These allocation change requests are initially reviewed by Susan Pulaski and/or Deborah Bush with final approval from Noon. 15. Funding allocation amounts were annually provided to the 23 WIBs at the direction of BETP Director Noon. a. Noon would receive allocation amounts from the Fiscal and Data Management Division staff under his direct supervision. b. Noon would review annual allocation amounts as the BETP Director and would make final recommendations to the Deputy Secretary of DPW’s Office of Income Maintenance (“OIM”). c. Upon confirmation from the Deputy Secretary of OIM, Noon would direct that funding allocation information be provided to the WIBs. 1. This notification was typically done by e-mail around May or early June of each year. 16. Linda Blanchette served as the \[Deputy Secretary of OIM\] from approximately October 2007 through October 2010. a. Blanchette was Noon’s immediate supervisor at DPW. b. Noon would annually provide Blanchette with the BETP allocations total prior to its dissemination to the WIBs. 1. Blanchette was provided with the projected allocation spreadsheet approved by Noon. 2. Blanchette would review Noon’s allocation recommendations and verbally authorize him to release the allocation total spreadsheet to the WIBs. 3. Blanchette did not play any role in developing the allocation spreadsheet. 4. Blanchette relied on Noon’s allocation recommendations. 17. WIBs subcontract with other entities to provide program services which are funded primarily through the BETP. a. When subcontracting, WIBs were not required to follow Commonwealth procurement regulations. Noon, 12-016 Page 5 b. Contracts entered into between any of the 23 WIBs and their service providers are subject to fiscal review of the BETP. 1. Program service budgets are reviewed and approved by the BETP’s Fiscal and Data Management Division. 18. Payments from any of the 23 WIBs to their subcontractors cannot be made until authorization is received from the BETP Fiscal and Data Management Division or the BETP Director. a. Once this approval is given, funds are provided from the WIB to its subcontractor in the approved amount on a draw down basis until that budget year’s allocation is exhausted. 19. Invoices from the service provider are submitted for payment to BETP \[employee\] Deborah Bush. a. Bush ensures there are sufficient funds budgeted for the invoice based on the line item expenditure payment that is being requested for \[sic\] (e.g., payroll, legal, consulting). 20. In the Philadelphia region, two WIBs received allocations from DPW. a. The Philadelphia Workforce Development Corporation (“PWDC”) received the bulk of the funding. 1. For fiscal year 2009-2010, the PWDC was allocated $80,231,844.00. 2. For the 2010-2011 fiscal year, the PWDC received $71,574,144.00. b. The South Central Workforce Investment Board (“SCWIB”) also received funding for services provided in the Philadelphia region as follows: 1. 2009-2010: $11,724,874.00; and 2. 2010-2011: $18,325,116.00. c. The PWDC entered into contracts with multiple subcontractors to provide program services. 1. These subcontracts were not subject to Commonwealth procurement rules. 21. On May 5, 2009, Noon, in his official capacity as the BETP Director, approved allocations to the WIBs for the 2009-2010 Commonwealth fiscal year. a. The 2009-2010 allocation information was e-mailed by Deborah Bush to WIBs/WIAs on May 5, 2009, at Noon’s direction. 1. Noon was a “cc” on the notification e-mail sent out by Bush. b. Included as an attachment with the e-mail was undated correspondence from Noon discussing various allocation guidelines and the amounts being allocated. 22. Noon’s approved allocations for 2009-2010 included the following: Noon, 12-016 Page 6 a. The Philadelphia region initial budget allocation for the 2009-2010 fiscal year of $76,490,339.00; and b. The South Central region initial budget allocation for the 2009-2010 fiscal year of $12,720,063.00. 23. On June 1, 2010, Noon, in his official capacity as the BETP Director, approved funding allocations to the WIBs for the 2010-2011 Commonwealth fiscal year. a. The 2010-2011 allocation information was e-mailed by Sharon Lehigh to WIBs/WIAs on June 4, 2010, at Noon’s direction. 1. Sharon Lehigh was Noon’s clerical secretary at the BETP. b. Noon was a “cc” on the notification e-mail sent out at his direction by Lehigh to the WIBs and WIAs. c. Included as an attachment with the e-mail was undated correspondence from Noon discussing various allocation guidelines, Employment Advancement & Retention Network (“EARN”) documents, Local Workforce Investment Area funding documents, Cumulative Quarterly Budget Summary documents, and the actual allocation amounts. d. Noon’s approved allocations for the 2010-2011 fiscal year included an initial budget allocation for the 2010-2011 fiscal year of $70,901,650.00 for the Philadelphia region. 1. An initial budget allocation for the 2010-2011 fiscal year of $15,510,417.00 was approved for the South Central region. 24. The National Comprehensive Center for Fathers (“NCCF”) was a non-profit, welfare-to-work, Philadelphia provider that administered the Fatherhood Initiative Program and the D&O Manufacturing Program. a. NCCF was a Special Initiatives Program which received BETP funding through the PWDC and the SCWIB. b. NCCF has served as a subcontractor to both the PWDC and the SCWIB, and has received funding through the BETP, which was authorized by Noon. c. NCCF received BETP funding between 2009 and 2011 from WIBs including the PWDC and the SCWIB. 1. NCCF partnered with the Greater Philadelphia Urban Affairs Coalition (“GPUAC”) for program services provided under the PWDC umbrella. 2. GPUAC served as a fiscal agent for NCCF. d. The purpose of the Fatherhood Initiative Program was to provide custodial and non-custodial fathers with the education and training necessary to place them into employment. e. The purpose of the D&O Manufacturing Program was to provide TANF (Temporary Assistance to Needy Families) and Family Works recipients with a centralized worksite for industry specific training in the areas of tailoring, design, customer service, and receiving. Noon, 12-016 Page 7 f. Kofi Asante was identified as the President and CEO of NCCF. g. An affiliated group of NCCF was the D&O Manufacturing Program, which provided “on the job” training in construction of garments, sewing, shipping, receiving, and retail customer service. 25. Noon is also the owner of Ankh Systems Consulting (“Ankh”), which is registered with the Pennsylvania Department of State. a. Business filings with the Pennsylvania Department of State identify Noon as the “owner” of Ankh with a creation date of October 4, 2004. 1. Ankh’s principal place of business was listed as \[residence address redacted\]. b. Entity number 3253421 was assigned to Ankh by the Pennsylvania Department of State. c. Ankh did not have a storefront business location. 26. Ankh’s website, http://ankhsystemsconsulting.com/, includes general information about Ankh, services provided, and contact information. a. Dr. Bryon C. Noon, MHS, Ed.D., is identified as President and Owner/Operator of Ankh. b. The stated address for Ankh is/was Noon’s primary residence. 27. Information on Ankh’s website includes the following description of its business operations and business in general: a. Business Operations: Ankh specializes in consulting on the development, implementation and evaluation of Welfare-to-Work and Workforce Development service delivery systems. We (Ankh) assist in developing programs and processes to meet the expectations of stakeholders, such as Federal, State and Local funders. Services include:  Needs Assessment  Program Design  Program Evaluation/Contract Compliance/Quality Assurance  Strategic Planning  Staff Development. b. About Ankh: Established in 2004, Ankh draws upon its chief investigator’s nearly 20 years of Welfare-to-Work experience, ranging from direct case management as a welfare caseworker to directorship of a $200+ million statewide employment and training agency for the Commonwealth of Pennsylvania. Areas of specialty focus on human services and the empowerment of low-income adult learners. Building on employment and training experience in state government, expertise was developed through designing and implementing program evaluation and monitoring protocols to assess contract compliance for hundreds of human service agencies across Pennsylvania. Interaction with various community based agencies resulted in the development of corrective action plans and the training of thousands of staff on government policy related to case management, program design, data management, record keeping, budgeting, contracting, and invoicing. Noon, 12-016 Page 8 Through these activities, hundreds of thousands of low-income citizens met their Temporary Assistance for Needy Families (TANF) work participation requirements, found jobs and left cash assistance and other government benefits, making Pennsylvania a leader in innovative programming for several years. 28. Ankh had a consulting relationship with NCCF/GPUAC from about 2009. a. Noon introduced his wife, Maria Noon, to Kofi Asante in 2009. 1. Noon had been familiar with Asante since approximately 1999. b. In or about 2009, NCCF/GPUAC received a grant in the amount of $424,500.00 from the U.S. Department of Justice, Office of Justice Programs, Bureau of Justice Assistance, Edward Byrne Memorial Discretionary Grant Program. 1. The grant application was titled “Boyz to Men Fatherhood Program, National Comprehensive Center for Fathers/Greater Philadelphia Urban Affairs Coalition.” c. In 2009 NCCF/GPUAC contracted with Ankh to provide program research pursuant to the receipt of this federal grant. d. Ankh was specifically noted in the application as being responsible for program research. The program research portion of the application states: 1. “NCCF believes as indicated previously that the population(s) which are the subject of this pilot program needs the benefit of detailed research and statistical information both for BETP, PWDC, NCCF, and the Philadelphia Family Court. NCCF will utilize the research firm of Ankh Systems Consulting of Harrisburg, Pennsylvania for this purpose. The research will focus, among other things, on the sexual proclivity and idiosyncrasies of this population; investigating the effect of peer pressure on sexual conduct; and (where appropriate) sociological derivation of at risk youth proclivity for violent and anti- social behavior(s), exploring the incentives and supportive services enhanced retention compliance; and, ascertain whether the innovative curriculum positively impacted participants in the areas of prevention, abstinence, and child support compliance and understanding.” e. This application did not identify the amount of funding being budgeted specifically for program research intended to be completed by Ankh. f. The grant budget included $40,000.00 budgeted for employment/training under the category for consultants. 29. On July 22, 2009, a consulting agreement was entered into between GPUAC/NCCF and Ankh. a. Terms of the agreement were for the period from July 22, 2009, to September 30, 2009, with payments to be made not to exceed $11,250.00 for consultant services in accordance with the Scope of Work as detailed in an attached exhibit to the consulting agreement. b. Ankh was providing its services as an independent contractor. Noon, 12-016 Page 9 c. This agreement had signature lines for Sharmain Matlock-Turner, President & Executive Director, GPUAC, Kofi Asante, Executive Director, NCCF, and Maria Noon, Consultant. 1. Maria Noon is the wife of Noon. d. This agreement was signed by Kofi Asante and Maria Noon. e. BETP funds were not part of NCCF’s grant. 30. Included as part of the agreement were Exhibit “A,” Scope of Work and Exhibit “B,” Fee to Consultant. Exhibit “A” of the contract between Ankh and NCCF/GPUAC included the following Scope of Work to be provided by Ankh: a. Ankh will work with NCCF staff to promote, through training and policy development, the following fundamental aspects of social work professionalism in the various locations of its program:  Advocacy for social justice and social change with and on behalf (of) clients  Sensitivity to cultural and ethnic diversity  Development of strategies to end discrimination, oppression, poverty, and other forms of social injustice  Enhancement of the capacity of people to address their own needs  Promotion of responsiveness of organizations, communities, and other social institutions to individual’s needs and social problems. Training will consist of:  Strategic Planning  Systems analysis  Staff development  Contract compliance  Quality assurance  Community oriented needs assessments  Action oriented research  Multi-cultural and bi-lingual service provision (Spanish)  Child welfare social work services. b. Exhibit “B”: Fee to Consultant: NCCF will be billed an initial fee of $2,812.50 upon approval of this Consultant Agreement. Subsequent to payment of initial fee, NCCF will be billed monthly at $125.00 an hour. 31. An internal authorization form was signed by Kofi Asante on December 11, 2009, as Program Director for NCCF, identifying Ankh as a program consultant. a. This form was submitted to GPUAC. b. Ankh Systems Consulting/Maria Noon is listed as the Program Name/Consultant. c. The funding source is identified as NCCF-D.F. 9223, with a contact person identified as Kofi Asante. Noon, 12-016 Page 10 d. The funding amount is listed as $6,968.75 for Ankh, with an anticipated funding period of November 1, 2009, through January 31, 2010. 32. GPUAC’s internal authorization form is supported by a consultant agreement dated November 1, 2009, between GPUAC/NCCF and Ankh. a. This agreement covered the time frame of November 1, 2009, through January 31, 2010. b. The contract was for services in the amount of $6,986.75 as defined in Exhibit “A” of the contract. c. Ankh was providing services as an independent contractor. d. Ankh had been providing services to NCCF as early as July 2009. e. This contract was signed by Sharmain Matlock-Turner, President & Executive Director, GPUAC, Kofi Asante, Executive Director, NCCF, and Maria Noon, Consultant. 33. Ankh invoiced NCCF/GPUAC on or about November 30, 2009, for the following services: a. Services identified as being provided included: Services Hours Initial consultation @ NCCF & Return 6.00 Develop financial tracking 2.00 Review NCCF documents 2.00 Review government policy 6.00 Develop recommendation chart 16.50 Prep for conference call 0.75 Review BF case management training materials 0.50 Develop data collection instruments 7.25 Managing change research 8.50 Draft reporting format 1.75 Phone calls with NCCF staff 1.25 Close monthly activity 3.25 November Subtotal 55.75 Rate $125.00 Fee $6,968.75. b. This invoice was submitted to GPUAC for payment by NCCF. 34. GPUAC issued check number 117688, dated January 13, 2010, in the amount of $6,968.75 payable to Maria Noon. a. The voucher part of this check reflects payment for invoice number 2264, NCCF- Case Management Protocol Refinement. b. This check was deposited into Metro Bank account number \[account number redacted\] on January 13, 2010. 1. The account is in the name of Maria Noon. Noon, 12-016 Page 11 c. GPUAC issued Maria Noon an IRS 1099-Miscellaneous Income Form documenting non-employee compensation in the amount of $6,968.75 during the 2010 calendar year. 35. Prior to entering into the contract with NCCF/GPUAC in 2009, Ankh maintained no other consulting contracts. 36. Kofi Asante negotiated the contract on behalf of NCCF with Ankh. a. Noon was Director of the BETP at the time this contract was entered into. b. NCCF was receiving BETP funding in 2009 at the time this contract was negotiated. c. NCCF’s funding through the BETP was approved by Noon. 37. In addition to the contract resulting in $6,968.75 being paid to Ankh by NCCF, Maria Noon/Ankh also submitted an undated, revised proposal for consulting and advisory services in the amount of $41,250.00. a. This proposed revised Consulting Agreement was never executed. 38. Subsequent to the November 2009 consulting agreement entered into with GPUAC/NCCF, Ankh entered into additional consulting agreements with NCCF beginning in or about February 2010. a. At the time these consulting agreements were ongoing and payments were made to Ankh by NCCF, Noon, in his capacity as Director of the BETP, was authorizing grants to NCCF. b. From February 24, 2010, to January 11, 2011, Ankh received payments from NCCF totaling $31,141.25. 1. Noon had authorized grants to the benefit of NCCF in excess of $1.5 million during this period. 39. During the same period of time GPUAC/NCCF issued payments to Maria Noon and Ankh, NCCF was receiving BETP funding. a. NCCF’s funding stream included grants, private party donations and BETP funding administered by GPUAC and later by InspiriTec, Inc. b. As Director of the BETP, Noon had direct supervision of NCCF’s funding administered by GPUAC and InspiriTec, Inc. c. GPUAC administered BETP funding received by NCCF until about May 2010, when Noon directed that InspiriTec, Inc. begin administering the grant. 1. By moving NCCF from GPUAC to InspiriTec, Inc., the review process was moved from Philadelphia to Harrisburg. 2. Additionally, GPUAC utilized a standard of review prior to issuing payments, whereas InspiriTec, Inc. issued payment upon submission of request. 40. Beginning in or about May 2010 and continuing until February 2011, NCCF Noon, 12-016 Page 12 contracted with InspiriTec, Inc., 5590 Derry Street, Harrisburg, PA 17111, through the SCWIB. a. InspiriTec, Inc. is a non-profit organization whose mission is to provide employment opportunities to disabled and disadvantaged persons in computer related professions. The organization focuses on using technology to empower the disabled to find meaningful employment. InspiriTec, Inc. operates an information technology business that employs and provides a supportive work environment for people with disabilities and employment disadvantages. 1. InspiriTec, Inc. has been contracted to provide services to DPW and the BETP. b. InspiriTec, Inc. served as the fiscal agent for NCCF for BETP funding provided under Noon’s supervision to the SCWIB. c. InspiriTec, Inc. administered NCCF grant funds received through the BETP primarily by issuing checks to pay NCCF invoices submitted by Kofi Asante. d. Chasity Mosby, InspiriTec Inc.’s Senior Project Coordinator, would process NCCF invoices for payment upon approval by BETP staff, including Noon. 41. NCCF entered into contracts with InspiriTec, Inc. regarding the Fatherhood Initiative Program and D&O Manufacturing Program operations. a. The contracts between NCCF and InspiriTec, Inc. were under the overall supervision of the BETP. b. The contracts were entered into as a result of NCCF being moved from the PWDC to the SCWIB for funding. 1. Noon made the decision to move NCCF from the PWDC to the SCWIB. c. InspiriTec, Inc. was to serve as the fiscal agent for NCCF through the release of funds to NCCF upon approval by Noon and his staff. 42. On September 15, 2010, a Fatherhood Initiative Contract was entered into between NCCF and InspiriTec, Inc. a. This contract was signed by Kofi Asante as Director of NCCF on September 11, 2010, and John Connolly, Jr., President of InspiriTec, Inc. on September 15, 2010. b. This contract covered the period from July 1, 2010, through June 30, 2011, with funding approved on an annual basis. c. NCCF funding to be administered by InspiriTec, Inc. for the period from July 1, 2010, through June 30, 2011, was approved in the amount of $1,500,000.00. d. Any requests for budget modifications and/or amendments were to be made by submitting a new budget highlighting the revisions to the BETP for approval. e. The BETP was to review requests for funding changes and advise Noon, 12-016 Page 13 InspiriTec, Inc. and the provider of approval/disapproval. f. The contracts program summary stated “the purpose of the Fatherhood Initiative program is to provide custodial and non-custodial fathers of Temporary Assistance to Needy Families (TANF) and/or Family Works 235 eligible children with the education and training necessary to place them into employment that will allow the fathers to nurture their children, both financially and socially, and continue, or resume child support payments.” g. The approved budget for the contract period from July 1, 2010, through June 30, 2011, did not contain any funding designated for consultant services. h. InspiriTec, Inc. payments to NCCF for this contract were made through an automated clearing house process (electronic transfer). 43. InspiriTec, Inc. notified NCCF of its intention to renew this contract for the period from July 1, 2011, through June 30, 2012, by way of correspondence dated September 15, 2011. a. This contract renewal was signed by Kofi Asante, NCCF on September 15, 2011, and John Connolly, InspiriTec, Inc., on October 3, 2011. b. Contract funding set by the BETP for this period totaled $2,604,260.00, which included consultant services in the amount of $53,000.00. 44. NCCF and InspiriTec, Inc. entered into a contract beginning May 1, 2010, through June 30, \[2010\], for NCCF’s D&O Manufacturing Program. a. NCCF funding as set by the BETP for the period from May 1, 2010, through June 30, 2010, was $231,344.00, which did not include any fees for consultants. b. This contract was signed by Kofi Asante, NCCF on May 1, 2010, and John Connolly, InspiriTec, Inc., on June 8, 2010. c. Any requests for budget modifications and/or amendments were required to be made by submitting a new budget highlighting the revisions to the BETP for approval. d. The BETP was to review requests for funding changes and advise InspiriTec, Inc. and NCCF of approval/disapproval. e. The contract program summary was “to provide TANF and 20 Family Works recipients with a centralized worksite for industry specific training in the areas of tailoring, design, customer service and shipping & receiving…(with) a manufacturing company that produces 1500 scrubs, per month, through an assembly line and process them through the shipping and receiving department.” 45. InspiriTec, Inc. notified NCCF of its intention to renew the D&O Manufacturing Program contract for the period from July 1, 2010, through June 30, 2011, by way of correspondence dated August 17, 2010. a. This contract renewal was signed by Kofi Asante, NCCF on August 18, 2010, and John Connolly, InspiriTec, Inc., on September 10, 2010. b. Contract funding was in the amount of $1,104,280.00. Noon, 12-016 Page 14 c. Consultant services were budgeted in the amount of $146,615.00. 46. Noon took an active role in securing funding and assuming oversight for NCCF as early as October 2009. a. Noon made decisions as the BETP Director that NCCF would come under full oversight of the BETP, including funding levels, and informed Kofi Asante of those decisions by e-mail. 47. Noon sent the following e-mail to Kofi Asante on October 27, 2009, concerning Noon’s oversight of NCCF, including funding levels: October 27, 2009, at 3:31 p.m., Noon to Kofi Asante re: NCCF and BETP funding. “Kofi: As we discussed recently, discussions between PWDC and BETP have resulted in your program coming under full oversight of BETP. We will treat your program as a “pass through” arrangement rather than as a part of the PWDC EARN program. As a “pass through”, funds will still go through PWDC, but decisions regarding funding levels, program design and monitoring will be the responsibility of BETP. All(of) the details about your 09-10 funding are not yet finalized, but I can share the following information: Fatherhood Initiative – we intend to fund that program at $1 mil, but we are open to discussions regarding expanding the slot levels and related funding… NCP program with EDSI- BETP & BCSE still intend to fund this program at the level of previous years. Prison Society – BETP has plans to continue funding this program at least at the level of the pilot, but it is very likely that we will expand the slot levels and related funding for this initiative also. In the very near future, my fiscal staff, our Philadelphia Division and I will be in touch with you to finalize our plans for the coming year. In the meantime, if you have any other questions about next steps, please do not hesitate in contacting me.” 48. At the time of Noon’s October 27, 2009, e-mail to Asante, Noon’s company, Ankh, had been providing consulting services to NCCF since as early as July 18, 2009. a. Ankh prepared a “Work Plan for NCCF Case Management Protocol Refinement” dated July 18, 2009. b. Ankh identified activity areas and Ankh’s role as follows: Activity Who Start Finish Resources Ankh, Mr. Asante, Case Internet research, government 1. Review Management policy review, review NCCF current policy Supervisor 07/22/09 08/07/09 materials Ankh, Case Face-to-face and/or Management teleconferencing interviews 2. Interviews Supervisor 08/03/09 08/07/09 with staff Noon, 12-016 Page 15 3. Ankh, Case Observations Management Onsite observation logs, staff (NCCF- Philly) Supervisor 08/03/09 08/07/09 and clients Ankh, Mr. 4. Present Asante, Case findings from Management Compilation of notes and 1-3 Supervisor 08/12/09 08/12/09 preliminary findings Ankh, Mr. 5. Present Asante, Case Development of working draft of revised Management model of case management protocols Supervisor 08/19/09 08/19/09 protocol 6. Refine draft Finalize edits, incorporating of protocols Ankh 08/21/09 08/21/09 NCCF feedback 7. Train case Meet with case management management supervisory staff-Train the supervisors Ankh 08/26/09 09/01/09 trainer 8. Observation Ankh, Case (NCCF Multiple Management Onsite observation of staff and Sites) Staff 09/01/09 10/09/09 clients under new protocol c. The final report identified a full report by Ankh by October 20, 2009, seven (7) days prior to Noon’s e-mail to Asante. d. Ankh submitted an initial invoice to NCCF on or about July 22, 2009, for services to be provided between July 22, 2009, and September 5, 2009. 49. On November 15, 2009, Noon e-mailed BETP subordinate staff confirming his intentions to fund special initiatives in Philadelphia, including NCCF in an amount of $1,000,000.00. Noon’s e-mail is as follows: a. November 15, 2009, at 8:29 p.m., Noon to Dale Porter, cc: (BETP staff) Leon Simmons, Deborah Bush and Sue Pulaski, subject: funding intentions. “Dale this email is to confirm our intentions to fund special initiatives in Philly. A formal letter will come from my office in the near future. That letter may contain additional items and/or adjustments not included in this list. 1. Manna $200k (SNAP funds) 2. PEC $300k (program dollars and PWE) NCCF/GPUAC Fatherhood Initiative ($1 mil TANF – not from PWDC base) 3. NCP (NCCF) $50k 4. NCP (EDSI/NCCF) NCCF $1,195,165 5. GPUAC EIC Outreach $300k 6. 7. ISCV Parents in schools $90K Prison Society/NCCF $600k 8. 9. CATCH $410k 10. Congreso $350k 11. Nueava Mini CareerLink $30k 12. TWC $4.6mil (base funding, PWE funding will be considered separately) 13. Beverly Harper $0 14. OCYF Consulting $0 Noon, 12-016 Page 16 15. MCC (Legislative Initiative) $0 16. Nueva (Legislative Initiative) $0 PWDC is authorized to charge 1.5% admin against each of the contracts. Please be in touch with each of these providers to begin immediate contract execution if such processes are not already underway. Please give me a call if you have any questions…” (Emphasis added) 50. Ankh’s first payment in the amount of $6,968.75 from NCCF, dated January 13, 2010, was issued approximately two months after Noon approved $1,000,000.00 to NCCF for the Fatherhood Initiative Program. 51. Noon, in his official capacity as Director of the BETP, authorized an additional $200,000.00 in start-up funding for NCCF’s D&O Manufacturing Program contract on June 8, 2010, bringing the total allocation to $431,344.00. a. Kofi Asante signed a revised Assurance Document dated June 18, 2010, reflecting the increased budget amount. 52. On June 8, 2010, Noon notified subordinate BETP staff of his decision to increase funding for the D&O Manufacturing Program by $200,000.00. a. On June 10, 2010, Noon again e-mailed his subordinate staff of the urgency to increase funds to NCCF. b. On June 17, 2010, Noon e-mailed Sue Pulaski, advising the additional funds for NCCF were approved. 53. Noon’s e-mails of June 8, 2010, June 10, 2010, and June 17, 2010, along with an InspiriTec, Inc. e-mail, confirm the approval of an additional $200,000.00 to NCCF as follows: a. June 8, 2010, at 12:22, e-mail from Noon to Sue Pulaski, cc: Deborah Bush, Leon Simmons, subject: additional current year funding for NCCF. “As we discussed this morning, I would like to allocate additional funding in the amount of $200k to NCCF through the Inspiritec special initiatives contract. These funds will be used to support additional startup costs for the project and program expenses. Please have Inspiritec make the additional funds available to NCCF as soon as possible.” b. June 10, 2010, at 7:33 a.m., e-mail from Noon to Sue Pulaski, cc: Deborah Bush, Leon Simmons, Kofi Asante, subject: Re: additional current year funding for NCCF. “Sue/Deb: I was glad to hear that the funding has been formally identified…This is a reminder that the addition of these funds has to happen th pretty quick, as NCCF only has until June 30 to spend the startup dollars. Any unused portion of the startup funding will lapse and must be returned by NCCF and we’ll have to identify 2010-2011 money to address any remaining issues.” c. June 17, 2010, 8:46 a.m., e-mail from Chasity Mosby (InspiriTec, Inc.) to Deborah Bush, subject: SI-Manufacturing Program June 10 additional funds invoice. Noon, 12-016 Page 17 “Hi Deb, attached is the SI-Manufacturing Program invoice for the additional $200,000. Please let me know if this is approved or if any changes need to be made.” d. June 17, 2010, at 8:52, this e-mail is forwarded by Bush to Noon with a cc to Sue Pulaski. Bush requests Noon’s approval of the $200,000. “Will you please approve this invoice for $200,000?” e. June 17, 2010, 8:54, e-mail from Noon to Bush, cc: Sue Pulaski, subject: SI- Manufacturing Program June 10 additional funds invoice. “Approved…” 54. Noon approved NCCF’s D&O Manufacturing Program Assurance Document and directed his staff to quickly initiate the program: a. E-mails confirming Noon’s role are as follows: May 19, 2010, 3:46 p.m., e-mail from Deborah Bush to Noon, cc: Sue Pulaski and Leon Simmons, subject: D&O Manufacturing Program Assurance Document. “Here is the final version of NCCF’s D&O Manufacturing Program assurance document for your review and comment.” b. May 20, 2010, 9:00 a.m., e-mail response from Noon to Bush: “I’m fine with this…once Leon reviews and comments…let’s move quickly with this.” 55. In addition to authorizing funding for NCCF’s Fatherhood Initiative Program (“FI”) and D&O Manufacturing Program (“D&O”), Noon was actively involved in NCCF’s budget review and combining the FI and D&O into a single program. E-mails between July 29, 2010, and August 17, 2010, confirm the following: July 29, 2010, 6:17 p.m., e-mail from Tony McNiel (NCCF) to Noon, cc: Kofi Asante, Michelle Martin, subject: third times a charm D&O.xlsx. rd “Good Evening Dr. Noon, I believe the 3 time is a charm. I have made the changes we discussed on the phone. Here’s knowing the third time’s a charm, please review.” July 29, 2010, 10:18 p.m., e-mail reply from Noon to McNiel, cc: Kofi Asante, Michelle Martin, Leon Simmons, Sue Pulaski, Deborah Bush. “This is a better budget. Thank you. Please work with Leon to get this contracted.” August 17, 2010, 3:01 p.m., e-mail forwarded from Sue Pulaski to Noon, cc: Deborah Bush, subject: FW: D&O Manufacturing Budget. “D and O – Bryon, please see Deb’s comments below. Chasity is working to get this expedited ASAP. I will still call John and give him a head’s up. We would like to have some further revisions to this budget at the time we combine FI and DO if not before. I have an email crafted to Tony and will cc you. Noon, 12-016 Page 18 FI _ Deb was in receipt of the FI budget last Tuesday and had a subsequent phone conversation with Leon regarding some budget items. He agreed to follow up on the questions and she has not heard back from him yet. We are also in need of a work statement which you indicated was forthcoming in an th email on August 5. Both of these are necessary to incorporate FI with DO. If I understood our conversation from this afternoon, the plan is to role FI into the DO contract with and effective date back to 7-1-2010 rather than contracting FI separately and then consolidating the two at a later date.” August 17, 2010, 4:08 p.m., reply Noon to Pulaski, cc: Deborah Bush, Leon Simmons. “FI is their primary program… D&O is a centralized work site. So, the end game is to fold D&O into FI as a “sub-program”. In the future, there are other subprograms like “workNstyle” and the NCP project that we may also want to fold into the overall FI contract.” a. The act of combining the FI and D&O projects eliminated the need to obtain two separate authorizations/approvals prior to releasing funds, thereby streamlining the process to release funds to NCCF. 56. Noon did not seek Blanchette’s approval to switch NCCF from the PWDC to the SCWIB and InspiriTec, Inc. effective May 1, 2010. 57. On August 17, 2010, Noon engaged in e-mail discussions with his subordinate staff which included requesting an update on D&O’s contract and the status of a pending NCCF invoice and directing that a special initiative document be issued to guarantee that funds be provided to NCCF. a. Noon questions why NCCF has not received a payment and is informed by staff that the authorizing agent for the grant (InspiriTec, Inc.) might question paying the invoice. b. Noon directs that a special initiative document be in place by “yesterday” to ensure payment to NCCF. c. Noon stresses to his staff the urgency of getting a payment to NCCF. 58. The August 17, 2010, e-mails between Noon and his subordinate staff confirm the following exchange: a. August 17, 2010, 10:27 a.m., e-mail from Noon to Deborah Bush, subject: Update – NCCF. “There was a recent invoice for NCCF’s D&O contract. Can you give me a status update on the contract and invoice?” b. August 17, 2010, 11:41 a.m., e-mail response from Bush to Noon, cc: Sue Pulaski. “The last invoice that I received was on 6/17/10 which I forwarded to Chasity for processing on 6/18/10. However, this invoice was from last program year. I haven’t received any invoices since then. Chasity is waiting for me to provide a budget for her for FY 10-11, so she can send out the renewal document to Mr. Asante for his signature. I was in Noon, 12-016 Page 19 contact with Leon last Tuesday with some questions concerning this attached (final) budget, The major concern was the 8% administrative fee totaling $111,111, since GPUAC is no longer involved in this contracting process. I haven’t had the opportunity to touch base with Leon to see what changes were made to this final budget, after he contacted NCCF concerning the issues that we had discussed. I will follow up with Leon today. Do we have a FI work statement from NCCF for this year? I haven’t received this statement. Update: The Special Initiative renewal document was mailed last week and arrived at PIBH’s Delaware branch office on Friday. John Connolly is traveling to Erie today and will be there for the remainder of the week. Betty Hartman from InspiriTec’s Delaware branch will overnight the document to John for review and signature. Chasity is going to check with John to see if he is going to have their lawyers review the document before he signs off on it. I did convey to Chasity that the only changes would be to the funding year and the amount allocated for this year.” c. August 17, 2010, 1:25 p.m., e-mail response from Noon to Bush, cc: Sue Pulaski. “We need to get the special initiative document in place “yesterday”…. This program will be running into a cash flow problem within days. Not sure how it happened, but we need to make up for the lost time in getting the renewal document signed and we need to get John Connolly signature.” d. August 17, 2010, 1:03 p.m., e-mail from Bush to Noon, cc: Leon Simmons, Sue Pulaski, subject: quarterly invoice. “According to their payment provision section of their contract NCCF th invoices BETP by the 15 of each month for the previous month’s services on an approved invoice document. Do you approve this quarterly invoice amount of $276,070.63?” e. August 17, 2010, 1:37 p.m., e-mail reply from Pulaski to Noon, cc: Leon Simmons, Deborah Bush. “Bryon, just a heads up. This quarterly invoice is not in compliance with the payment provisions of the assurance document for D and O. I know InspiriTec had and issue the last time with the D&O startup invoices being advance payments, and they indicated they would not do any more “advance” payments, which is what this invoice is requesting, so we may get this rejected.” f. August 17, 2010, 1:45 p.m., e-mail reply from Noon to Pulaski, cc: Leon Simmons, Deborah Bush. “Ok…Given them a call and ask for a revised document. I’m not harping on this next point, but just elevating the urgency needed to assist them… Because we are planning to consolidate this contract with FI, we need to advocate for expediency and flexibility. They have many staff to pay and we need to find a way to get them funding quickly to cover FI and DO costs. Since there is no FI contract in place, we need to find a mechanism to allow them to draw. Perhaps a letter of agreement in place for FI until the full budget is executed… Just some document to allow them to draw funds.” Noon, 12-016 Page 20 59. Around August 17, 2010, when Noon was directing an expedited payment to NCCF, his company, Ankh, was receiving payments from NCCF as noted below: 8/16/10 $2,600.00 8/27/10 $4,200.00 9/24/10 $4,940.00. 60. By way of correspondence dated October 13, 2010, from Noon to Asante, on BETP stationery, Noon informed Asante that NCCF’s contract with InspiriTec, Inc. for the D&O Manufacturing Program would be merging into its contract for the Fatherhood Initiative Program effective November 1, 2010. Noon advised Asante as follows: a. “In the past month or so the Bureau of Employment and Training Programs (BETP) has been in discussions with you regarding the merging of your Manufacturing Program with your Fatherhood Initiative Program, since the Manufacturing Program can be considered a viable training option that will lead to immediate employment for its enrollees. This in turn will allow non- custodial fathers the ability to nurture their children, both financially and socially, and to begin or resume paying child support as outlined in the program summary section of your Fatherhood Initiative Program’s assurance document with Inspiritec, Inc. Inspiritec, Inc. will be using the Termination of Convenience option listed in your assurance document as the reason for ending this contract at the request of BETP. This letter is official notification that Inspiritec, Inc. will be ending your Manufacturing Program contract effective October 31, 2010 and including this program as a component of your Fatherhood Initiative Program Contract effective November 1, 2010. The balance of the Manufacturing Program allocation will be added to the Fatherhood Initiatives allocation.” 61. Effective November 1, 2010, NCCF’s Fatherhood Initiative Program and D&O Manufacturing Program contracts with InspiriTec, Inc., covering the period from July 1, 2010, through June 30, 2011, were merged into a single contract. a. Funding under the new, combined contract for the period from July 1, 2010, through June 30, 2011, was approved by the BETP in the amount of $2,169,217.00. 1. Noon participated in the decision to combine the contracts and the total amount of the contract. b. Signatures on the combined contract were those of Kofi Asante, NCCF on March 23, 2011, and John Connolly, InspiriTec, Inc., on May 19, 2011. c. Consultant services for the period from July 1, 2010, through June 30, 2011, were budgeted in the amount of $103,289.00. 62. InspiriTec, Inc. payments to NCCF were initiated by a monthly invoice and request being e-mailed to BETP employee Deborah Bush. th a. NCCF invoices were addressed to BETP, Leon Simmons, 8 and Market Streets, Philadelphia, PA 19106. Noon, 12-016 Page 21 1. Simmons was a contracted BETP employee, responsible for the Philadelphia region, under Noon’s direct supervision. b. Bush would initially review the invoice to ensure that there were sufficient budgeted funds available to pay the invoice, per budget line item. c. After Bush would review the invoice for budgeting purposes, she would seek payment authorization from either Simmons or Noon. 1. This payment authorization was typically obtained by e-mail. d. Once Bush would receive payment authorization from either Simmons or Noon, she would forward the authorization by e-mail to Chasity Mosby of InspiriTec, Inc. for payment. e. InspiriTec, Inc. would facilitate an electronic transfer of funds into NCCF accounts once a payment authorization was received. f. Payments were made by InspiriTec, Inc. to NCCF as a drawdown of available budgeted funds, per program funding year. 63. Between May 1, 2010, and February 17, 2011, twelve (12) NCCF invoices, at least three (3) of which included line item charges for consulting services, were processed by the BETP under Noon’s supervision, for payment. a. During this same time, Noon’s business, Ankh, was simultaneously receiving payments for consulting services provided to NCCF. b. None of the invoices including billings for consultant services identified the consultant(s) paid, just the total billing amount. 64. On at least three occasions between May 1, 2010, and February 2011, Noon contacted Mosby at InspiriTec, Inc. to expedite payments to NCCF. a. Noon did not contact Mosby attempting to expedite payments to any other provider receiving BETP funding for which InspiriTec, Inc. served as the fiscal agent. 1. InspiriTec, Inc. served as the fiscal agent on approximately 75 BETP contracts, including NCCF’s, during this time frame. b. InspiriTec, Inc. did not receive any documentation from NCCF to indicate it was paying Ankh as a subcontractor from BETP funding that NCCF received. 65. The following chart details all NCCF invoices submitted to the BETP for payment between May 1, 2010, and February 17, 2011, including any consulting fees and BETP approval: Invoice Consulting Approved Approval Entity Invoice Period Total Fees By Date Method NCCF 6/14/10 $282,075.00 $15,000.00 Simmons 5/27/10 Signature NCCF 6/1/10 - 8/15/10 $169,829.00 None Noon 8/17/10 E-mail 8/16/10 - D&O 8/31/10 $59,402.93 None Simmons 9/24/10 E-mail D&O 9/1/10 - 9/30/10 $101,755.33 $12,500.00 Simmons 10/20/10 E-mail Noon, 12-016 Page 22 10/1/10 - D&O 10/31/10 $104,075.33 $12,500.00 Simmons 11/8/10 E-mail NCCF 7/1/10 - 7/31/10 $137,377.84 None Noon 9/16/10 E-mail ** NCCF 8/1/10 - 8/31/10 $137,377.84 None Noon 9/16/10 E-mail ** NCCF 9/1/10 - 9/30/10 $223,223.16 None Simmons 10/20/10 E-mail 10/1/10 - NCCF 10/31/10 $196,583.00 None Simmons 11/24/10 E-mail 11/1/10 - NCCF 11/30/10 $267,652.18 None Simmons 12/6/10 E-mail D&O, 12/1/10 - FI 12/31/10 $270,172.92 None Simmons 1/24/11 E-mail D&O, FI 1/1/11 - 1/31/11 $247,930.02 None Simmons 2/17/11 E-mail ** Both invoices approved at the same time by Noon, via e-mail dated September 16, 2010. 66. NCCF’s invoice covering the billing period of 10/01/10 – 10/31/10 was initially submitted to the BETP in the amount of $216,583.00, which included $20,000.00 for consulting services. a. The vendor(s) to provide the consulting services was not identified. b. The $20,000.00 consulting services portion of this invoice was rejected by BETP’s Deborah Bush on November 16, 2010, because consulting services were not included as a budgeted line item in the Fatherhood Initiative Program budget. c. The balance of $196,583.00 was resubmitted by NCCF and approved for payment by the BETP (Leon Simmons) on November \[24\], 2010. 67. NCCF maintained at least two (2) checking accounts at Citizens Bank which were used as depositories for BETP funding. a. Citizens Bank account numbers \[account number redacted\] and \[account number redacted\] were utilized by NCCF as depositories for funding provided through the BETP. b. Account number \[account number redacted\] is a business checking account which was opened by Kofi Asante on June 10, 2008. 1. Asante is the authorized signatory on this account. c. Account number \[account number redacted\] was opened by Kofi Asante on June 25, 2010, and was titled NCCF Petty Cash. 1. Asante is the authorized signatory on this account. 68. During the same time frame in 2010-2011 that Noon was authorizing funding to and approving mergers of programs to the benefit of NCCF, Ankh, a business with which Noon and his spouse are associated, received payments from NCCF. 69. Between February 24, 2010, and January 11, 2011, NCCF issued seven (7) payments totaling $31,141.25 to Maria Noon/Ankh for consulting services. a. Two payments totaling $4,281.25 were issued in the name of Maria Noon. Noon, 12-016 Page 23 b. Five (5) payments totaling $26,860.00 were issued to Ankh. 70. Ankh business records confirm the following seven (7) invoices were issued to NCCF for consulting services covering the period from June 9, 2010, through November 30, 2010. a. Invoice dated June 9, 2010, prepared by Maria D. Noon for the billing period June 9, 2010, in the amount of $7,800.00 for services identified as “retainer” with service details of “per the work statement, the client agrees to pay the initial retainer at the time of contract execution. Service to be provided: consultation regarding refinement of policies and strategic planning.” b. Invoice dated June 30, 2010, prepared by Maria D. Noon for the billing period of June 1, 2010, to June 30, 2010, in the amount of $3,900.00 for services identified as case management protocol refinement. 1. Service details listed below did not include the actual date(s) of service: Services Time Professional Consulting Services 30 (total) On Site Meeting 5 Document Review 12 Document Development 8 Policy Development 3.5 Strategic Planning 1.5 June Subtotal 30 Rate $130.00 Fee $3,900.00. c. Invoice dated July 31, 2010, prepared by Maria D. Noon for the billing period of July 1, 2010, to July 31, 2010, in the amount of $6,500.00 for services identified as case management protocol refinement. 1. Service details listed below did not include the actual date(s) of service: Services Time Professional Consulting Services 50 (total) Document Review 20 Document Development 17 Policy Development 12 Strategic Planning 1 July Subtotal 50 Rate $130.00 Fee $6,500.00. d. Invoice dated August 31, 2010, prepared by Maria D. Noon for the billing period of August 1, 2010, to August 31, 2010, in the amount of $4,550.00 for services identified as case management protocol refinement. 1. Service details listed did not include the actual date(s) of service: Services Time Professional Consulting Services 35 (total) On Site Meeting 6 Noon, 12-016 Page 24 Document Review 18 Document Development 7 Policy Development 2 Strategic Planning 2 August Subtotal 35 Rate $130.00 Fee $4,550.00. e. Invoice dated September 30, 2010, prepared by Maria D. Noon for the billing period of September 1, 2010, to September 30, 2010, in the amount of $4,940.00 for services identified as case management protocol refinement. 1. Service details listed did not include the actual date(s) of service: Services Time Professional Consulting Services 35 (total) Document Review 6 Document Development 18 Policy Development 7 Unspecified 2 Unspecified 2 September Subtotal 38 Rate $130.00 Fee $4,940.00. aa. Although thirty-five (35) hours of consulting services are listed on this invoice, thirty-eight (38) hours are listed for the September subtotal. f. Undated invoice prepared by Maria D. Noon for the billing period of October 1, 2010, to October 31, 2010, claimed no expenses for services identified as case management protocol refinement. 1. Service details listed reflect “no work logged” for the month. g. Invoice dated November 30, 2010, prepared by Maria D. Noon for the billing period of November 1, 2010, to November 30, 2010, in the amount of $7,020.00 for services identified as case management protocol refinement. 1. Service details listed do not include the actual date(s) of service: Services Time Professional Consulting Services 54 Document Review Not Listed Document Development Not Listed Policy Development Not Listed On Site Visit Meeting Not Listed November Subtotal 54 Rate $130.00 Fee $7,020.00. 71. Ankh has no record of any executed contracts with NCCF. a. Ankh has no records related to any service performed for NCCF. 72. The following chart confirms payments made by GPUAC and NCCF to Maria Noon and Ankh since January 13, 2010, during the same time frame that Noon was using Noon, 12-016 Page 25 his public position to approve Commonwealth funding for NCCF. Date Ch. # Amount Payee Account 01/13/10 117688 $6,968.75 Maria Noon GPUAC Unknown Acct # NCCF Acct # \[account 02/24/10 1265 $2,000.00 Maria Noon number redacted\] NCCF Acct # \[account 05/05/10 1288 $2,281.25 Maria Noon number redacted\] NCCF Acct # \[account 06/24/10 77 $7,800.00 Ankh number redacted\] NCCF Acct # \[account 08/16/10 198 $2,600.00 Ankh number redacted\] NCCF Acct # \[account 08/27/10 224 $4,500.00 Ankh number redacted\] NCCF Acct # \[account 09/24/10 125 $4,940.00 Ankh number redacted\] NCCF Acct # \[account 01/07/11 302 $7,020.00 Ankh number redacted\] Total: $38,110.00 a. No invoices were provided by NCCF or Ankh to support the February 24, 2010, and May 5, 2010, payments made to Maria Noon totaling $4,281.25. 73. The three (3) checks made payable to Maria Noon were deposited into Metro Bank account number \[account number redacted\]. a. After these deposits were made to account \[account number redacted\], a portion of each deposit was transferred into Metro Bank account number \[account number redacted\]. b. This is a joint account in the names of Bryon C. or Maria Noon. 74. All five (5) checks made payable to Ankh were deposited into Metro Bank account number \[account number redacted\]. a. This account was opened on or about February 22, 2010. b. The account owner is Bryon Noon d/b/a Ankh Systems Consulting. c. These five (5) checks totaled $26,860.00. 75. The five (5) checks issued to Ankh by NCCF were deposited into account number \[account number redacted\]. 76. Activity for Metro Bank account number \[account number redacted\] confirms that account funds were utilized for expenditures at businesses including Wal-Mart, Turkey Hill, Kmart, CVS, Amtrak, Toys R Us, McDonalds, Burger King and 7- Eleven. a. Additionally, funds were transferred into other Metro Bank accounts under Bryon Noon’s control, including account numbers \[account number redacted\] and \[account number redacted\]. 77. In or about the fall of 2011, the BETP received information questioning expenditures made by NCCF. Noon, 12-016 Page 26 a. Questions raised included whether payments were made to Maria Noon and Ankh by NCCF. b. As a result, the Bureau of Financial Operations initiated an audit in November 2011 of NCCF. c. The audit was conducted to determine compliance with DPW’s Fatherhood Initiative Program and D&O Manufacturing Program contracts. 78. As a result of the issues raised to OIM regarding payments to his business and his spouse, Noon was suspended from his position as Director of the BETP effective October 20, 2011. 79. Samuel M. Lamonto, Chief, Employee Relations and Development, DPW, notified Noon on October 24, 2011, that he was being suspended from his position as Director effective October 20, 2011. 80. Deputy Secretary for the Office of Income Management \[sic\], advising that he was resigning his position as Director of the BETP effective immediately. a. On November 2, 2011, correspondence was sent to Noon, from the Pennsylvania HR Service Center, P.O. Box 824, Harrisburg, PA 17108, confirming Noon’s retirement from his position as … Director effective at the close of business on October 27, 2011. 81. An audit report of NCCF was issued on June 4, 2012. a. Excerpts from the June 4, 2012, audit report regarding NCCF covered the period from May 1, 2010, to June 30, 2011, and related correspondence and audit findings. b. The audit documented consulting work performed by Ankh while Noon simultaneously was serving as a DPW employee and President of Ankh. c. From January 2010 through January 2011, NCCF paid Ankh $38,110.00 allegedly for consulting services performed for NCCF, as a subcontractor, engaged in welfare to work activities and funded by DPW. 82. Noon, through his public employment as Director of the BETP, utilized the authority of his public position to authorize fund allocation, as well as funding payments, to NCCF at a time when Noon possessed a financial interest in Ankh, a private consulting business which had entered into consulting agreements with NCCF. a. As depicted below, Noon utilized the authority of his public position to gain 100% oversight over NCCF Commonwealth-funded programs and approved release of public monies to NCCF in close proximity to times when, either immediately prior to or immediately following the release of public funds by Noon to NCCF, Ankh received a payment from NCCF. Noon’s actions in 2009:  Noon, in his official capacity as Director of the BETP, authorizes the release of funds for WIBs and WIAs concerning Commonwealth fiscal year 2009-2010. Noon, 12-016 Page 27  On or about July 1, 2009, the first date of the Commonwealth fiscal year, GPUAC/NCCF receives the BETP allocation of $1,500,000.00 for the Fatherhood Initiative Program.  A mere twenty-two (22) days later, a Consulting Agreement is entered into between GPUAC/NCCF and Ankh for $11,250.00.  On October 27, 2009, Noon communicates with Kofi Asante via e-mail and informs Asante that Noon was successful in placing all of Asante’s programs monitored by the Commonwealth under BETP’s oversight, and subsequently under Noon’s authority.  Within five (5) days of Asante’s programs being placed under Noon’s control, GPUAC/NCCF enters into a consulting agreement with Ankh on November 1, 2009, for $6,986.75.  On Sunday, November 15, 2009, Noon drafts an e-mail to Dale Porter and BETP staff, informing them of Noon’s funding intentions for GPUAC/NCCF programs. Noon’s e-mail is two (2) weeks after GPUAC/NCCF enters into its agreement with Ankh (which also occurred on a Sunday, November 1, 2009). Noon’s actions in 2010:  Now that GPUAC/NCCF were under the direct supervision of Noon’s Commonwealth agency, on May 1, 2010, Noon transitions NCCF financial services from GPUAC to InspiriTec, Inc.  Within four (4) days of Noon transferring NCCF’s financial services to InspiriTec, Inc. (May 5, 2010), a $2,281.25 payment is made by NCCF to Maria Noon.  On May 20, 2010, Noon directs his subordinates to “move quickly” in regards to implementing the D&O Manufacturing Program budget Noon approved, followed by Noon authorizing the release of the additional D&O budget funds in the amount of $200,000.00 to NCCF on June 8, 2010.  Nine days later, on June 17, 2010, Noon approves InspiriTec, Inc. to release the $200,000.00 to NCCF, allowing for Ankh to be paid $7,800.00 from NCCF on June 24, 2010 – seven (7) days later.  The day after Ankh receives a $2,600.00 payment from NCCF (August 16, 2010), Noon authorizes payment of NCCF’s invoice(s) for the period of June 1, 2010, to August 15, 2010. Noon’s approval is on August 17, 2010, following a payment made to his company by NCCF, and it is noteworthy that Ankh’s payment from NCCF is not included within the submitted invoice(s) (6/1/2010 – 8/15/2010).  Ten days after Noon e-mails BETP staff of his intent to merge NCCF’s Fatherhood Initiative Program and its D&O Manufacturing Program (August 17, 2010), Ankh receives a $4,500.00 payment from NCCF on August 27, 2010. Noon, 12-016 Page 28  On September 16, 2010, Noon authorizes the payment of two (2) of NCCF’s invoices each totaling $137,377.84; eight (8) days later on September 24, 2010, Ankh receives $4,940.00 from NCCF.  On November 1, 2010, NCCF receives $2,169,217.00 in BETP funding to cover the time period from July, 1, 2010, until June 30, 2011. On January 7, 2011, Ankh receives a $7,020.00 payment from NCCF. b. In June 2010, Noon never sought the approval of Blanchette to increase BETP funding to NCCF’s D&O Manufacturing Program by $200,000. The following findings relate to allegations that Noon failed to disclose his office, directorship or employment and his financial interest in Ankh, a legal entity in business for profit, on his Statements of Financial Interests. 83. Noon, in his official capacities as Director of the BETP and a Welfare Program Executive 1, was annually required to file Statement of Financial Interests and Governor’s Code of Conduct forms, by May 1, containing information for the prior calendar year. 84. Noon, in his official capacities as Director of the BETP and a Welfare Program Executive 1, filed Statement of Financial Interests forms and Governor’s Code of Conduct forms for calendar years 2007 through 2011. 85. Noon was not consistent in reporting his office, directorship or employment and his financial interest in Ankh, a legal entity in business for profit, on both his Statement of Financial Interests and his Governor’s Code of Conduct forms. Noon reported his interests on at least one of the required forms for each year a reporting was required. a. Ankh was formed by Noon as a sole proprietorship. III.DISCUSSION: As Director of the Bureau of Employment Training Programs for the Pennsylvania Department of Public Welfare from approximately December 8, 2008, until October 28, 2011, Respondent Bryon C. Noon, also referred to herein as “Respondent,” “Respondent Noon,” and “Noon,” was a public employeesubject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. The allegations are that Noon violated Sections 1103(a), 1105(b)(8), and 1105(b)(9) of the Ethics Act: (1) when he used the authority of his public position for the private pecuniary benefit of himself, a member of his immediate family and/or a business with which he and/or a member of his immediate family is associated by approving or awarding grants to companies at a time when he had a reasonable expectation that Ankh Systems Consulting, a business with which he and a member of his immediate family are associated, would receive subcontracts; (2) when he failed to disclose his office, directorship or employment in Ankh Systems Consulting on Statements of Financial Interests (“SFIs”) filed for the 2007, 2008, 2009, and 2010 calendar years; and (3) when he failed to disclose his financial interest in Ankh Systems Consulting, a legal entity in business for profit, on SFIs filed for the 2007, 2008, 2010, and 2011 calendar years. Per the Consent Agreement of the parties, the Investigative Division has exercised its prosecutorial discretion to nol pros the allegations under Section 1105(b) of the Ethics Act. Based upon the nol pros, we need not address the Section 1105(b) allegations no longer before us. Noon, 12-016 Page 29 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. 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. Noon began employment with the Pennsylvania Department of Public Welfare (“DPW”) on April 11, 1994. Noon held the position of Director of the Bureau of Employment Training Programs (the “BETP”) for DPW from approximately December 8, 2008, until October 28, 2011. The Deputy Secretary of the Office of Income Maintenance (“OIM”) of DPW was Noon’s immediate supervisor. In his official capacity as Director of the BETP, Noon had allocation control of annual funding of approximately $212 million in training program funds. The funds originated from state and federal sources and were provided to DPW for allocation. Some such funds were released by DPW through the Pennsylvania Department of Labor and Industry to regional Workforce Investment Boards (“WIBs”) for distribution. Funding to the WIBs was determined by the BETP Fiscal and Data Management Division (the “Division”) under Noon’s direct supervision as the BETP Director. Noon received and reviewed annual allocation amounts from Division staff under his direct Noon, 12-016 Page 30 supervision, and he then made final recommendations to the Deputy Secretary of OIM. Upon confirmation from the Deputy Secretary of OIM, Noon directed that funding allocation information be provided to the WIBs, which was typically done by e-mail around May or early June of each year. Two WIBs in the Philadelphia region, the Philadelphia Workforce Development Corporation (“PWDC”) and the South Central Workforce Investment Board (“SCWIB”), received allocations from DPW for the 2009-2010 and 2010-2011 Commonwealth fiscal years, which allocations were approved by Noon. The WIBs subcontract with other entities to provide program services which are funded primarily through the BETP. Contracts entered into between the WIBs and their service providers are subject to fiscal review by the BETP, and program service budgets are reviewed and approved by the Division. Payments cannot be made from a WIB to a subcontractor until authorization is received from the Division or the BETP Director. Upon such authorization, funds are provided from the WIB to its subcontractor in the approved amount on a draw down basis until that budget year’s allocation is exhausted. The National Comprehensive Center for Fathers (“NCCF”) was a non-profit, welfare- to-work provider in Philadelphia that administered the Fatherhood Initiative Program and the D&O Manufacturing Program. The purpose of the Fatherhood Initiative Program was to provide custodial and non-custodial fathers with the education and training necessary to place them into employment. The D&O Manufacturing Program provided on-the-job training in construction of garments, sewing, shipping, receiving, and retail customer service for Temporary Assistance to Needy Families (“TANF”) and Family Works recipients. Kofi Asante (“Asante”) was the President and CEO of the NCCF. Noon was familiar with Asante since approximately 1999, and he introduced his wife, Maria Noon, to Asante in 2009. The NCCF served as a subcontractor to the PWDC and the SCWIB and received BETP funding through the PWDC and the SCWIB between 2009 and 2011. The Greater Philadelphia Urban Affairs Coalition (“GPUAC”) administered the BETP funding received by the NCCF until about May 2010, when Noon directed that InspiriTec, Inc. (“InspiriTec”) begin administering such funding. As Director of the BETP, Noon had direct supervision of NCCF’s BETP funding administered by GPUAC and InspiriTec. In a private capacity, Noon is the owner of Ankh Systems Consulting (“Ankh”), which is registered with the Pennsylvania Department of State. The website for Ankh identifies Ankh’s address as that of Noon’s primary residence and Ankh’s President and Owner/Operator as “Dr. Bryon C. Noon, MHS, Ed.D.” The website describes Ankh as specializing in consulting on the development, implementation, and evaluation of welfare- to-work and workforce development service delivery systems. From about 2009, Ankh had a consulting relationship with the NCCF/GPUAC. In or about 2009, the NCCF/GPUAC received a federal grant in the amount of $424,500.00 from the U.S. Department of Justice, Office of Justice Programs, Bureau of Justice Assistance, Edward Byrne Memorial Discretionary Grant Program. Funds from the BETP were not part of the federal grant. The NCCF/GPUAC contracted with Ankh to provide program research pursuant to the receipt of the federal grant. On July 22, 2009, a consulting agreement was entered into between the NCCF/GPUAC and Ankh as an independent contractor. The consulting agreement was for the period from July 22, 2009, to September 30, 2009, and was signed by Asante of the NCCF and by Maria Noon as “Consultant.” Another consulting agreement was signed by Asante, by Maria Noon as Noon, 12-016 Page 31 “Consultant,” and by the President and Executive Director of GPUAC covered the period from November 1, 2009, through January 31, 2010. Ankh submitted an invoice in the amount of $6,968.75 to the NCCF/GPUAC on or about November 30, 2009, and GPUAC issued a check dated January 13, 2010, in the amount of $6,968.75, payable to Maria Noon. Prior to contracting with the NCCF/GPUAC in 2009, Ankh maintained no other consulting contracts. At the time Ankh contracted with the NCCF/GPUAC, the NCCF was receiving BETP funding which was approved by Noon. Meanwhile, as early as October 2009, Noon, as the BETP Director, decided that the NCCF and its funding levels would come under full oversight of the BETP. On October 27, 2009, Noon sent Asante an e-mail informing him of Noon’s decision and that the BETP would be responsible for making decisions regarding funding levels, program design and monitoring. At the time of Noon’s e-mail to Asante, Ankh had been providing consulting services to the NCCF since as early as July 18, 2009. As Director of the BETP, Noon had supervisory responsibility over BETP employees, including Susan Pulaski (“Pulaski”), Director of Fiscal & Data Management, Deborah Bush (“Bush”), Fiscal Systems Analyst, and Leon Simmons (“Simmons”), Director of the BETP’s Philadelphia Division. Pulaski and Bush had primary responsibility in implementing BETP funding initiatives at Noon’s direction. On November 15, 2009, Noon e-mailed Simmons, Bush, and Pulaski to confirm his intentions to fund special initiatives in Philadelphia, including the amount of $1 million in funding for the NCCF for the Fatherhood Initiative Program. Approximately two months after Noon approved $1 million in funding to the NCCF for the Fatherhood Initiative Program, Ankh received the aforesaid payment in the amount of $6,968.75 from the NCCF/GPUAC as a result of contracting with the NCCF/GPUAC regarding the federal grant. As noted above, the funding that the NCCF received from the BETP was administered by GPUAC until about May 2010. Without seeking the approval of the Deputy Secretary of OIM, Noon moved the NCCF from the PWDC to the SCWIB for funding effective May 1, 2010. Noon directed that InspiriTec begin administering the BETP funding received by the NCCF, which moved the review process from Philadelphia to Harrisburg. In addition, GPUAC had utilized a standard of review prior to issuing payment, whereas InspiriTec issued payment upon submission of a request. InspiriTec administered funding that the NCCF received from the BETP by issuing payments for NCCF invoices submitted by Asante. InspiriTec payments to the NCCF were initiated by a monthly NCCF invoice and request being e-mailed to Bush, who reviewed the invoice to ensure that there were sufficient budgeted funds available to pay the invoice. After Bush reviewed the invoice for budgeting purposes, she sought payment authorization from either Simmons or Noon. Once Bush received payment authorization from either Simmons or Noon, she forwarded the payment authorization to InspiriTec. After receiving a payment authorization, InspiriTec made payment to the NCCF as a drawdown of available budgeted funds per program funding year. Beginning in or about May 2010, the NCCF contracted with InspiriTec, through the SCWIB, for the administration of BETP funds for the Fatherhood Initiative Program and the D&O Manufacturing Program operations. The contracts between NCCF and InspiriTec were under the overall supervision of the BETP. The NCCF and InspiriTec entered into a contract for the D&O Manufacturing Program for the period from May 1, 2010, through June 30, 2010. The BETP set funding in the amount of $231,344.00 for the NCCF for the period, which did not include any fees for Noon, 12-016 Page 32 consultants. On June 8, 2010, Noon sent an e-mail to Simmons, Bush, and Pulaski, notifying them of his decision to increase start-up funding for the NCCF D&O Manufacturing Program contract by $200,000.00. Noon asked them to have InspiriTec make the additional funds available to the NCCF as soon as possible. Noon did not seek the approval of the Deputy Secretary of OIM for the increase in funding. On June 10, 2010, Noon sent an e-mail to his subordinate staff regarding the urgency to increase funding to the NCCF. On June 17, 2010, Noon approved an NCCF invoice in the amount of $200,000.00 for additional funds. The NCCF and InspiriTec subsequently renewed the contract for the D&O Manufacturing Program for the period from July 1, 2010, through June 30, 2011. Funding to be administered for the period totaled $1,104,280.00, with the amount of $146,615.00 budgeted for consultant services. The NCCF and InspiriTec additionally entered into a contract for the Fatherhood Initiative Program that covered the period from July 1, 2010, through June 30, 2011. Funding to be administered for the period totaled $1.5 million, with no funding designated for consultant services. Effective November 1, 2010, the NCCF contracts with InspiriTec for the D&O Manufacturing Program and the Fatherhood Initiative Program were merged into a single contract. The BETP approved funding for the NCCF in the amount of $2,169,217.00 under the new contract for the period from July 1, 2010, through June 30, 2011. The amount of $103,289.00 was budgeted for consultant services for the period. Noon participated in the decision to merge the two contracts into a single contract and in the decision regarding the total amount of the new contract. Combining the two contracts eliminated the need to obtain two separate authorizations or approvals prior to releasing funds, thereby streamlining the process to release funds to the NCCF. Between February 24, 2010, and January 11, 2011, Noon authorized BETP funding in excess of $1.5 million to the benefit of the NCCF. Between May 1, 2010, and February 17, 2011, the BETP, under Noon’s supervision, processed twelve NCCF invoices for payment. At least three of the invoices included line item charges for consulting services. The invoices that included charges for consulting services did not identify the consultant(s) paid and only identified the total billing amount. Noon approved one NCCF invoice totaling $169,829.00 and two NCCF invoices totaling $137,377.84 each. On at least three occasions between May 1, 2010, and February 2011, Noon contacted InspiriTec to expedite payments to the NCCF. Noon did not contact InspiriTec to attempt to expedite payments to any other provider receiving BETP funding for which InspiriTec served as the fiscal agent. During the same time frame that Noon was authorizing funding to the NCCF and approving the merger of the D&O Manufacturing Program and the Fatherhood Initiative Program contracts to the benefit of the NCCF, Maria Noon and Ankh were receiving payments from the NCCF, allegedly for consulting services performed for the NCCF as a subcontractor. In addition to the payment in the amount of $6,968.75 that the NCCF/GPUAC issued to Maria Noon in January 2010, the NCCF issued seven payments totaling $31,141.25 to Maria Noon and Ankh during the period from February 24, 2010, to January 11, 2011. Two payments totaling $4,281.25 were issued to Maria Noon, and five payments totaling $26,860.00 were issued to Ankh. Invoices for consulting services that were prepared by Maria Noon and issued to the NCCF covered various time periods but did not include the actual dates of services. Ankh has no records related to any services performed for the NCCF and no record of any executed contracts with the NCCF. From January 2010 through January 2011, Maria Noon and Ankh were paid a total of $38,110.00. Noon, 12-016 Page 33 In or about the fall of 2011, the BETP received information that raised questions regarding expenditures made by the NCCF, including whether payments were made to Maria Noon and Ankh by the NCCF. Noon was suspended from his position as Director of the BETP effective October 20, 2011, as a result of the issues raised regarding payments to Maria Noon and Ankh. Noon resigned from his position as Director of the BETP effective the close of business on October 27, 2011. On or about November 18, 2013, a Criminal Information was filed by the Pennsylvania Office of the Attorney General, alleging that Noon had committed criminal acts, including violating Section 1103(a) of the Ethics Act. On or about April 14, 2014, Noon pled guilty to violations of law, including a violation of Section 1103(a) of the Ethics Act. Noon’s plea included conduct that is the subject of the instant matter. Noon’s criminal matter was docketed at: CP-22-CR-0005356-2013. 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 Noon, as the Director of \[the Bureau of\] Employment Training Programs for the \[Pennsylvania\] Department of Public Welfare, approved and/or awarded grants to Greater Philadelphia Urban Affairs Coalition (“GPUAC”) and/or the National Comprehensive Center for Fathers (“NCCF”) at a time when he had a reasonable expectation that Ankh Systems Consulting, a business with which he and a member of his immediate family are associated, would receive subcontracts from NCCF to provide consulting services, payment of which were to be made from proceeds of the grant monies approved/awarded by Noon; b. That as part of a negotiated Consent Agreement, the allegations concerning violations of Section 1105(b)(8) and (9) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b)(8) and (9), are hereby nol prossed. Noon was not consistent in reporting his office, directorship or employment and his financial interest in Ankh Systems Consulting, a legal entity in business for profit, on both his Statement of Financial Interests and his Governor’s Code of Conduct forms. Since Noon reported his interests on at least one of the required forms for each year a reporting was required, the Investigative Division, as part of a negotiated Consent Agreement, recommends that the Commission permit Noon to amend his Statement of Financial Interests forms, as was allowed by the Court in Noon, 12-016 Page 34 In re Benninghoff, 852 A.2d 1182 (Pa. 2004). 4. Noon agrees to make restitution in the amount of $38,110.00, payable to the Commonwealth of Pennsylvania, through the Pennsylvania Board of Probation and Parole. Restitution as ordered by the State Ethics Commission is concurrent to any restitution ordered by the Court of Common Pleas in the matter docketed as: CP-22-CR-0005356-2013. 5. Noon agrees to file amended Statements of Financial Interests with the \[Pennsylvania\] Department of Public Welfare through the Pennsylvania State Ethics Commission, for the 2007, 2008, 2009, 2010 and 2011 calendar years within thirty (30) days of the issuance of the final adjudication in this matter. 6. Noon agrees to not accept any reimbursement, compensation or other payment from the \[Pennsylvania\] Department of Public Welfare representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter and make no specific recommendations to any law enforcement or other authority to take action in this matter, as Noon has pled guilty to criminal violations of 65 Pa.C.S. § 1103(a) in the matter docketed as: CP-22-CR-0005356-2013, which includes conduct addressed by the instant Consent Agreement and Stipulation of Findings. a. The Investigative Division and Noon acknowledge that: 1. All Orders issued by the State Ethics Commission are provided to the Pennsylvania Office of the Attorney General as a matter of course; and 2. 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. 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. As Director of the BETP, Noon had allocation control of annual funding of approximately $212 million in training program funds. Noon approved allocations to two WIBs in the Philadelphia region, the PWDC and the SCWIB, for the 2009-2010 and 2010- 2011 Commonwealth fiscal years. The NCCF, which administered the Fatherhood Initiative Program and the D&O Manufacturing Program, received BETP funding through the PWDC and the SCWIB between 2009 and 2011. As Director of the BETP, Noon had direct supervision of NCCF’s BETP funding administered initially by GPUAC and subsequently by InspiriTec. Noon, 12-016 Page 35 In or about 2009, the NCCF/GPUAC received a federal grant. The NCCF/GPUAC contracted with Ankh, a consulting business owned by Noon, to provide program research pursuant to the receipt of the federal grant. The consulting agreements covered the periods from July 22, 2009, to September 30, 2009, and from November 1, 2009, through January 31, 2010. Ankh received payment in the amount of $6,968.75 from the NCCF/GPUAC as a result of contracting with the NCCF/GPUAC regarding the federal grant. At or about the time Ankh contracted with the NCCF/GPUAC regarding the federal grant, the NCCF was receiving BETP funding which was approved by Noon. As early as October 2009, Noon, as the BETP Director, decided that the NCCF and its funding levels would come under full oversight of the BETP. On November 15, 2009, Noon e-mailed his subordinate staff to confirm his intention to provide $1 million in funding for the NCCF for the Fatherhood Initiative Program. Approximately two months after Noon approved $1 million in funding to the NCCF for the Fatherhood Initiative Program, Ankh received the aforesaid payment in the amount of $6,968.75 from the NCCF/GPUAC. Noon moved the NCCF from the PWDC to the SCWIB for funding effective May 1, 2010, and he directed that InspiriTec begin administering the BETP funding received by the NCCF. Unlike GPUAC, which had utilized a standard of review prior to issuing payment, InspiriTec issued payment upon submission of a request. The NCCF and InspiriTec entered into a contract for the D&O Manufacturing Program for the period from May 1, 2010, through June 30, 2010. Noon decided to increase start-up funding for the NCCF D&O Manufacturing Program contract by $200,000.00, and he approved an NCCF invoice for the additional funds. The NCCF and InspiriTec subsequently renewed the contract for the D&O Manufacturing Program for the period from July 1, 2010, through June 30, 2011. The NCCF and InspiriTec additionally entered into a contract for the Fatherhood Initiative Program that covered the period from July 1, 2010, through June 30, 2011. Effective November 1, 2010, the NCCF contracts with InspiriTec for the D&O Manufacturing Program and the Fatherhood Initiative Program were merged into a single contract. The BETP approved funding for the NCCF in the amount of $2,169,217.00 under the new contract for the period from July 1, 2010, through June 30, 2011. Noon participated in the decision to merge the two contracts into a single contract, which streamlined the process to release funds to the NCCF, and in the decision regarding the total amount of the new contract. Between February 24, 2010, and January 11, 2011, Noon authorized BETP funding in excess of $1.5 million to the benefit of the NCCF. Between May 1, 2010, and February 17, 2011, the BETP, under Noon’s supervision, processed twelve NCCF invoices for payment. Noon approved one NCCF invoice totaling $169,829.00 and two NCCF invoices totaling $137,377.84 each. During the same time frame that Noon was authorizing funding to the NCCF and approving the merger of the D&O Manufacturing Program and the Fatherhood Initiative Program contracts to the benefit of the NCCF, Maria Noon and Ankh were receiving payments from the NCCF, allegedly for consulting services performed for the NCCF as a subcontractor. In addition to the payment in the amount of $6,968.75 that the NCCF/GPUAC issued to Maria Noon in January 2010, the NCCF issued seven payments totaling $31,141.25 to Maria Noon and Ankh during the period from February 24, 2010, to January 11, 2011. From January 2010 through January 2011, Maria Noon and Ankh were paid a total of $38,110.00—allegedly for consulting services, for which Ankh has no records. Noon, 12-016 Page 36 Based upon the Stipulated Findings and the Consent Agreement, we hold that Noon violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when, as Director of the BETP for DPW, he approved and/or awarded grants/funds to GPUAC and/or the NCCF at a time when he had a reasonable expectation that Ankh, a business with which he and a member of his immediate family are associated, would receive subcontracts from the NCCF to provide consulting services for which payment would be made at least in part from proceeds of the funds approved/awarded by Noon. As part of the Consent Agreement, Noon has agreed to make restitution in the amount of $38,110.00, payable to the Commonwealth of Pennsylvania, through the Pennsylvania Board of Probation and Parole, with such restitution concurrent to any restitution ordered by the Court of Common Pleas in the matter docketed as: CP-22-CR- 0005356-2013. Noon has also agreed to not accept any reimbursement, compensation or other payment from DPW representing a full or partial reimbursement of the amount paid in settlement of this matter. Noon has further agreed to file amended SFIs for the 2007, 2008, 2009, 2010, and 2011 calendar years with DPW, through this Commission, within thirty (30) days of the issuance of the final adjudication in this matter. We agree that the aforesaid recommendations are appropriate, including the recommendation that Noon file amended SFIs for the 2007, 2008, 2009, 2010, and 2011 calendar years, notwithstanding the nol pros as to the Section 1105(b) allegations. 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, Noon is directed to make restitution in the amount of $38,110.00, payable to the Commonwealth of Pennsylvania, through the Pennsylvania Board of Probation and Parole, with such restitution concurrent to any restitution ordered by the Court of Common Pleas in the matter docketed as: CP-22- CR-0005356-2013. Per the Consent Agreement of the parties, Noon is further directed to not accept any reimbursement, compensation or other payment from DPW representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Noon is directed to file amended SFIs for the 2007, 2008, 2009, 2010, and 2011 calendar years with DPW, through this th Commission, 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. As Director of the Bureau of Employment Training Programs for the Pennsylvania Department of Public Welfare from approximately December 8, 2008, until October 28, 2011, Respondent Bryon C. Noon (“Noon”) 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. Noon violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when, as Director of the Bureau of Employment Training Programs for the Pennsylvania Department of Public Welfare, he approved and/or awarded grants/funds to Greater Philadelphia Urban Affairs Coalition and/or the National Comprehensive Center for Fathers (“NCCF”) at a time when he had a reasonable expectation that Ankh Systems Consulting, a business with which he and a member of his immediate Noon, 12-016 Page 37 family are associated, would receive subcontracts from the NCCF to provide consulting services for which payment would be made at least in part from proceeds of the funds approved/awarded by Noon. In Re: Bryon C. Noon, : File Docket: 12-016 Respondent : Date Decided: 5/5/15 : Date Mailed: 5/12/15 ORDER NO. 1655 1. Bryon C. Noon (“Noon”) violated Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), when, as Director of the Bureau of Employment Training Programs for the Pennsylvania Department of Public Welfare, he approved and/or awarded grants/funds to Greater Philadelphia Urban Affairs Coalition and/or the National Comprehensive Center for Fathers (“NCCF”) at a time when he had a reasonable expectation that Ankh Systems Consulting, a business with which he and a member of his immediate family are associated, would receive subcontracts from the NCCF to provide consulting services for which payment would be made at least in part from proceeds of the funds approved/awarded by Noon. 2. Per the Consent Agreement of the parties, Noon is directed to make restitution in the amount of $38,110.00, payable to the Commonwealth of Pennsylvania, through the Pennsylvania Board of Probation and Parole, with such restitution concurrent to any restitution ordered by the Court of Common Pleas in the matter docketed as: CP-22-CR-0005356-2013. 3. Per the Consent Agreement of the parties, Noon is directed to not accept any reimbursement, compensation or other payment from the Pennsylvania Department of Public Welfare representing a full or partial reimbursement of the amount paid in settlement of this matter. 4. To the extent he has not already done so, Noon is directed to file amended Statements of Financial Interests for the 2007, 2008, 2009, 2010, and 2011 calendar years with the Pennsylvania Department of Public Welfare, through the Pennsylvania State Ethics Commission, by no later than the thirtieth day after the mailing date of this Order. 5. Compliance with paragraphs 2, 3, and 4 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