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HomeMy WebLinkAbout1704 MarchoSTATE ETHICS COMMISSION 309 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Chris Marcho, File Docket: 15038 Respondent X -ref: Order No. 1704 Date Decided: 10/19/16 Date Mailed: 10/31/16 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick 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 sec ., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upoesn completion of its investigation, the Investigative Division issued and served upon Rpondent a Findings Report identified as an "Investigative Complaint "I "Amended Investigative Complaint." A Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. ALLEGATIONS: That Chris Marcho, a public official /public employee in his capacity as a Township Sze( rvisor for Clifford Township, Susquehanna County, violated [Sections 1103 {a }, I o 1104( d), 1105 %3 , 1105(b)(4�Ie 1105(b)(5), 1105(b)(8), and 1105(b)(9)] of the Se . hics Act (Act 93 of 1998) when utilized the authority of his office as Township Supervisor and/or Roadmaster, to direct and/or otherwise authorize the Township to make purchases from Clifford Supply (a business with which members of his immediate family are associated) and/or Clifford Auto (a business with which he is associated), resulting in a private pecuniary benefit for' himself and/or businesses with which he /members of his immediate family are associated; when purchases which were made from Clifford Supply and/or Clifford Auto in excess of $500.00 were done so absent an open and public process, in violation of provisions of the State Ethics Act; and when Marcho utilized the authority of his public office as a Member of the Board of Supervisors, to approve payments to Clifford Supply and /or Clifford Auto, including but not limited to: voting to approve bill lists, serving as Township signatory on payment checks, and participating in actions of the Board to otherwise authorize /approve payment; and when Marcho failed to list all sources of income in excess of $1,300 on Statements of Financial Interests filed for calendar years 2011 through 2014; failed to provide a response to Rea! Estate Interests and /or Creditors on Statements of Financial Interests purportedly filed for calendar year 2014; failed to provide a date as to verification of Statements of Financial Interestsfiled for the 2011 and 2013 calendar years; failed to identify the calendar year (believed 2011 for which Statements of Financial Interests were to be filed, failed to report his Office, Directorship, or Employment and Financial Interest in Clifford Auto upon Statement of Financial Interests intended for the 2011 calendar year, as well as failed to identify his Office, Directorship, or Employment and Financial Interest in Chelsea Management Group, P.O. BOX 1 1470, HARRISBURG, PA 17108 -1470 - 717-783-1610 - 1 -800- 932 -0935 - www.ethics.state.pa.us Marcho, 15 -038 Page Inc. and Royal Properties on Statements of Financial Interests filed for calendar years 2011 through 2014. [I. FINDINGS: 1. Chris Marcho ( "Marcho ") has served as a Member of the Clifford Township Board of Supervisors since December 12, 2011. a. Clifford Township is a Second Class Township governed by a three (3) Member Board of Supervisors. b. Since 2012 the Clifford Township Board of Supervisors consisted of Marcho, Dennis Knowlton, and Barry Searle. C. Marcho has also served as the appointed Township Roadmaster since approximately January 2014. 1. Prior to Marcho being appointed Roadmaster, James Locker served as the Township Roadmaster from approximately 2011 through 2013. d. The Township generally holds one (1) public meeting per month, with special meetings being held on an as- needed basis. e. Clifford Township Supervisors are compensated $1,875.00 for their service as designated by the Second Class Township Code. (age, 53 P.S. § 65606.) 2. Clifford Township is located in a rural portion of Susquehanna County, approximately twenty (20) minutes northeast of Clarks Summit, Pennsylvania. a. Clifford Township is responsible for the maintenance of approximately twenty (20) miles of unpaved roads, which are graded, leveled, repaired, and have dust control applied (on at least an annual basis) by private contractors. b. The Township does not employ a full time road department, and minimal equipment is available for the general care and maintenance of Township roads. C. Road work is performed by hired contractors through an annual competitive bid process. d. Within the immediate area of the Township, there are limited businesses such as auto parts and hardware stores to supply municipal needs. e. With the exception of Clifford Auto Center (commonly referred to as Clifford Auto) and Clifford Supply, the nearest businesses offering similar items for sale are approximate y. ten (10) miles from Clifford Township, in either Carbondale or Forest City. 3. As the term is defined by the State Ethics Act (65 Pa.C.S. § 1102), Marcho is "associated" with the following business entities: Clifford Auto Center; Chelsea Management Group, Inc.; Royal Cycle & Powersports, Inc.; Royal Properties; and Stockcar Racing Experience. a. Clifford Auto Center is an Auto Value® auto parts store operating through Chelsea Management Group, Inc. Marcho, 15 -038 Page ge 3 1. Clifford Auto Center is not a registered business entity with the Pennsylvania Department of State Corporation Bureau. 2. Clifford Auto Center utilizes the business address of: P.O. Box 27, Clifford, PA 18413. b. Chelsea Management Group, Inc., Royal Cycle & Powersports, Inc., and Royal Properties all utilize the same business address: Box 424, Route 106, Clifford, PA 18413. 1. Business filings with the Pennsylvania Department of State regarding Chelsea Management Group, Inc. identify Marcho as the President, Vice - President, Secretary and Treasurer of the entity. C. Royal Properties is a real estate partnership between Marcho, James Pettinato, and Glen S. Shifler. 1. Business filings with the Pennsylvania Department of State for Royal Properties identify Marcho as one of three owners of Royal Properties. d. Royal Cycle & Powersports, Inc. is an outdoor power equipment sales partnership between Marcho and Glen S. Shifler. 1. On August 4, 2008, Articles of Amendment - Domestic Corporation were filed with the Pennsylvania Department of State changing the business name of Mike's Car Care Center, Inc. to Royal Cycle & Power Sports, Inc. with a registered address of 106 Main Street, Clifford, PA 18413. 2. Royal Cycle & Powersports is located in the same building as Clifford Auto Center and Clifford Supply. 3. Marcho reports being a 50% owner of Royal Cycle & Powersports, Inc. on IRS Schedule K -1 forms filed with his Federal Income Tax returns for the filing years 2011 through 2014. e. Marcho is additionally associated with the Stockcar Racing Experience at Pocono International Speedway, where he has been employed as a driving instructor on a part-time basis since approximately the fail of 2001. 4. Members of Marcho's immediate family, namely his brothers Shawn Marcho and Edward Marcho and his sister Kim Bostjancic, have an ownership interest in Clifford Supply. a. Clifford Supply is a retail hardware business selling plumbing, electrical, paint, lumber, and general hardware items. b. Clifford Supply is located in the same building as Clifford Auto Center, sharing a common entrance, separated by display shelving. 1. The building /store location is owned equally by Marcho, Shawn Marcho, Edward Marcho, and Kim Bostjancic. 2. Real estate tax responsibility is equally shared among the siblings. 3. Utilities for the store are the joint responsibility of Clifford Supply and Clifford Auto Center. Marcho, 15 -038 Page 4 5. Incorporating documents related to Clifford Supply, filed with the Pennsylvania Department of State, identify an entity number of 1084021 and a creation date of March 8, 1989. a. Corporate officers are identified as Edward Marcho - President, Kim Bostjancic- Secretary/Treasurer, and Shawn Marcho - Vice - President. b. Corporate documents for Clifford Supply, Inc. do not reflect any financial interest held by Respondent Marcho with the company. 6. Clifford Auto Center and/or Clifford Supply are business entities with which Marcho and/or members of his immediate family are associated, that also serve as vendors /contractors of Clifford Township. a. Clifford Township's business relationship with both Clifford Auto Center and Clifford Supply predates Marcho's appointment to the Board of Supervisors on December 12, 2011. 7. Since taking office as a Member of the Clifford Township Board of Supervisors in December 2011], Marcho has been the primary Township official responsible for making purchases from Clifford Auto Center. a. Invoices submitted by Clifford Auto Center to the Township reflect items purchased by the Township such as batteries, automotive fluids, filters, wiper blades, tools, chemicals, supplies, and various automotive repair parts. b. None of the items sold to the Township by Clifford Auto Center were the result of a competitive bidding process. C. No actions were taken by the Township's Board of Supervisors to authorize or approve Marcho to make purchases from Clifford Auto Center, prior to purchases occurring. d. The Board of Supervisors did not provide any public notice prior to purchases being made from Clifford Auto Center, nor subsequently publicly disclose all proposals considered in addition to Clifford Auto Center. Additionally, the Board of Supervisors failed to disclose at any time either before or after any contracts awarded to Clifford Auto Center. e. For those purchases in which Clifford Auto Center was utilized, Marcho maintained supervisory and /or overall responsibility for the implementation and administration of the purchase /contract. THE FOLLOWING FINDINGS RELATE SPECIFICALLY TO TOWNSHIP PURCHASES FROM, AND PAYMENTS TO, CLIFFORD AUTO CENTER. 8. As a Township public official /public employee, Marcho would identify items he believed were necessary for the general care, maintenance and/or repair of Township vehicles, equipment, and /or facilities. a. Marcho would proceed to purchase those items he identified as necessary from Clifford Auto Center. b. Since January 2014, Marcho has made purchases from Clifford Auto Center in his official capacity as a Township Supervisor and /or as the appointed Township Roadmaster. Marcho, 15 -038 Page 5 1. During 2012 and 2013, Marcho made purchases exclusively in his official capacity as a Township Supervisor. G. Since 2014 there has been an increase in the amount of purchases made through Clifford Auto Center, as a result of renovations to the Township's building and recreational facilities. 9. Supervisors Knowlton and Searle were aware that Marcho was purchasing items for the Township through Clifford Auto Center, and did not object based on a belief that it was a cost savings measure since the business was approximately one -half mile away from the Township Building. a. Approval of purchases occurred after- the -fact, as art of the routine payment of bills submitted by Clifford Auto Center to the Township. b. Since approximately March 11, 2014, bills submitted from Clifford Supply and Clifford Auto Center were approved by Supervisors Knowlton and Searle as a separate Board vote. C. Neither Knowlton nor Searle objected to paying any Clifford Auto Center invoice during Marcho's tenure as a Member of the Township's Board of Supervisors. 10. Since February 14, 2012, Clifford Auto Center received payments totaling at least $14,476.47 from Clifford Township. Total payments per year were as follows: a. 2012: 2 payments totaling $322.45 2013: 2014: 6 payments totaling 13 totaling $855.66 $4,293.94 2015: 8 invoices totaling payments 2015: 16 payments totaling $7,829.28 2016: 2 payments totaling $1,175.14 14,476.47 b. Of the $14,476.47 in payments made by the Township to Clifford Auto Center, $7,384.71 represented reimbursement to Marcho (through Clifford Auto Center) for purchases made on behalf of the Township. The reimbursement does not reflect goods sold by or through Clifford Auto Center, 11. Since December 4, 2012, Marcho signed at least twenty -eight (28 invoices representing $1,672.86 in purchases from Clifford Auto Center to the Township, which are included in the payment totals outlined above. a. Marcho's signature on invoices represents that the items listed were received by the Township. b. Multiple invoices were paid to Clifford Auto Center absent any initials or signatures. C. By year, the total known number of invoices signed by Marcho was as follows: 2012: 1 invoice totaling $197.27 2013: 5 invoices totaling $190.60 2014: 14 invoices totaling $965.77 2015: 8 invoices totaling $319.22 $1,672.86 Marcho, 15 -038 a�F 12. During the Board of Supervisors January 5, 2015, meeting, Marcho participated in a unanimous Board vote to authorize the Township to spend up to $15,000.00 for playground equipment and benches. a. At the time, Marcho was the Roadmaster and was responsible for overseeing the project in that capacity, as well as serving as a Member of the Board of Supervisors. b. No Board vote was taken to specifically authorize [Marcho] to purchase the needed equipment and benches. C. Marcho would conduct searches online and regionally, to obtain items for the project at a discounted rate. d. Reimbursement payments made to Marcho, by way of checks issued to Clifford Auto Center, represented actual cost and no profit to Clifford Auto Center. 13. In addition to the items Marcho purchased for the Township from Clifford Auto Center, as park of the ongoing repairslupgrades of 2014 and 2015, Marcho also made purchases of other items for the Township for which he paid and was then reimbursed by the Township. a. Marcho purchased items for the Township from places such as EBay, Amazon.com, Woodframe Homes, Jamestown Distributors, Display Sales, Jack Williams Tire, Wayne County Ford, Lowes, Sam's Club, Home Depot, Lee Electric Supply, Global Industries, Safety Sign, Restroom Direct, Belson, Exit Light Company, and Fibar Systems. b. Marcho made purchases using cash, or his personal credit card, and submitted the receipt to Christy Bennett (Secretary/Treasurer) for payment. C. Those invoices were for items including truck tires, playground benches, electrical supplies, tools, computer software and hardware items, and ggeneral repair, maintenance and improvement items for the Township Building /grounds and adjoining park. 1. Although the Township payment for these items was made to Clifford Auto Center, that business was not the source of the goods. 2. Clifford Auto Center did not incur any reimbursed fee, or add any markup of the items which were eventually provided to the Township. 14. Following the purchase of items for the Township paid personally by Marcho, Marcho submitted the actual receipts to the Township and directed reimbursement payment to be made to Clifford Auto Center. 15. Although Marcho directed that the Township reimbursement checks for these items be made payable to "Clifford Auto Center," none of the purchased items originated from Clifford Auto Center. a. Marcho did not add any markup of the cost of any items he purchased using personal resources (cash, credit, etc.) which were for Township purposes. 16. As a result of the ongoing State Ethics Commission investigation into Township purchases from Clifford Auto Center and Clifford Supply, the practice of Marcho Marcho, 15 -038 a�7 being reimbursed for Township goods purchased by Marcho for the Township using a personal credit card and/or cash ceased early in 2016. a. In early 2016, the Township issued credit cards to Marcho, employee Larry Wilson and Secretary/Treasurer Christy Bennett for any such purchases. 17. Purchases made from Clifford Auto Center and/or Clifford Supply were approved by the Board after- the -fact, as part of the Township's routine bill paying process. a. Clifford Township's bill paying process included the preparation of a monthly bill list by the Secretary/Treasurer for Board review and approval. 18. Prior to March 11, 2014, the monthly bill lists were voted /approved in their entirety by a single motion. a. Effective March 11, 2014, Clifford Township altered the manner in which bills from Clifford Auto Center and Clifford Supply were approved by the Board, so that Supervisor Marcho would abstain from official action taken on invoices /bills from those entities while still being able to participate in the approval of other monthly expenditures. b. Once approved for issuance, Township checks are signed by two (2) Supervisors, with all three (3) Supervisors having signature authority over Township accounts. 1. Facsimile stamps /electronic signatures are not used. 19. Since March 11, 2014, Marcho has been recorded as abstaining from Board votes to approve payments to Clifford Auto Center and /or Clifford Su I with one exception being the Board's May 12, 2015, meeting when only two r2�Lpervisors were present. a. Although Marcho abstained from Board action to vote to approve payment to Clifford Auto Center /Clifford Supply, Marcho continued to sign checks and approve invoices related to both. b. By mid -2015, Secretary /Treasurer Christy Bennett separated Township checks payable to Clifford Auto Center and Clifford Supply from other payments in an effort to ensure that Marcho did not serve as Township signatory in his official capacity as a Member of the Board of Supervisors. 20. Regarding the purchases made from Clifford Auto Center and Clifford Supply, investigative interviews conducted with Secretary/Treasurer Christy Bennett, Solicitor Joseph G. McGraw, Esquire, and Supervisors Dennis Knowlton and Barry Searle emphasized the following regarding the history of Township business dealings with Clifford Auto Center and Clifford Supply. a. None of the items purchased by the Township from either business were [purchased] as the result of any competitive bid process. b. The Township has had a long - standing business relationship with both Clifford Auto Center and Clifford Supply, predating Marcho's tenure on the Board. C. None of the individuals interviewed played any role in initiating purchases from either business. d. The Township attempts to utilize local businesses whenever possible. Marcho, 15 -038 age e. Supervisors Searle and Knowlton and Solicitor McGraw all believed that the Township received discounts similar to those provided to trade professionals from Clifford Auto Center. f. None of those interviewed can confirm the percentage of discount believed to be received by the Township, or profit margin realized by either business. g. The closest business to purchase similar items other than Clifford Auto Center and Clifford Supply was approximately 10 -15 miles away. 21. Marcho's use of the authority of his public office, as a Member of the Clifford Township Board of Supervisors, concerning purchases made from Clifford Auto Center, as detailed in this report, include the following: a. Determined the need and executed the actual purchases of Township goods /supplies from Clifford Auto Center. b. Initiated [or seconded a motion] or voted to approve Township payments totaling at least $1,299.89, issued to Clifford Auto Center for goods purchased. C. Signed the front side of Township checks totaling $4,175.32 which were issued to Clifford Auto Center as payment for goods purchased and/or reimbursement of purchases by Marcho. d. Verified /received invoices /purchases totaling $1,672.86 made on the Township's behalf from Clifford Auto Center. THE FOLLOWING FINDINGS RELATE SPECIFICALLY TO TOWNSHIP PURCHASES FROM, AND PAYMENTS TO, CLIFFORD SUPPLY. 22. Clifford Township has purchased plumbing supplies, electrical items, pipe and general hardware items from Clifford Supply since at least 2006. a. Clifford Supply shares a common business location with Clifford Auto Center, separated by display shelving. b. Clifford Supply is operated by members of Marcho's immediate family, namely his brothers Edward Marcho and Shawn Marcho and sister Kim Bostjancic, all of whom are listed on company invoices. 23. Purchases were made from Clifford Supply by Township employees, as well as private contractors, who were completing various projects for the Township. a. Clifford Supply utilizes handwritten invoices for sales and billing purposes. b. For items sold to the Township, the individual who receives the item(s) is to initial the invoice, which is then sent to the Township for payment. C. Clifford Supply invoices are approved for payment in the same manner as those from Clifford Auto Center, as detailed above. 24. Since December 3, 2012, Marcho purchased items on. behalf of Clifford Township on seven (7) separate occasions from Clifford Supply. a. These purchases are included with other purchases the Township made from Clifford Supply. Marcho, 15 -038 at e3 b. Items purchased by Marcho directly from Clifford Supply for Township use totaled $106.78. 25. Although Marcho made some purchases directly, Township purchases from Clifford Supply were generally made by persons other than Marcho. a. Since January of 2012, at least forty -five (45) payments totaling $31,102.87 were issued to Clifford Supply concerning purchases by /for the Township. b. Payments to Clifford Supply were made on a monthly basis, with most payments being applied to. multiple purchases and/or invoices. 26. Bid specifications for the annual road maintenance and resurfacing pro ects were initially created /drafted by PennDOT, prior to Marcho being a Member oNhe Board of Supervisors. a. Each year the Township Secretary/Treasurer will update the bid specifications for the current year and submit requests for bids in the Forest City News. b. Sealed bids are received and reviewed by the Board of Supervisors during a public meeting. c. The Township annually publicly bids these projects, since it does not possess the tools, equipment or manpower to complete the projects of this scale. d. Road repairs and maintenance are bid by the Township in two parts: (1) the actual maintenance /repair work; and (2) dust control. 27. Clifford Township routinely seeks bids for equipment and labor necessary for the annual road projects. a. Bid specifications consistently stated that the Township was responsible for all needed materials, such as road aggregate and drainage pipes. b. Bids for work were submitted on a per mile basis, with no specification as to prevailing wage. C. Material hauling was bid on a per ton rate, with no hourly rate of pay specified. d. The successful bidder did not receive any additional compensation for the time and expense incurred transporting any needed aggregate, or other materials necessary for road projects. 28. Since 2012, Marcho routinely participated in the review and awarding of annual Township road projects. a. The Township generally would receive sealed bids from two (2) or three (3) excavating companies. b. From 2012 through 2014, bids were for shaping of unpaved roads (per mile), ditch cleaning (per mile), and material hauling (per ton). C. For bids sought for .calendar years 2015 and 2016, the scope of work included drainage pipe replacement. Marcho, 15 -038 af�ge TO 1. This item was specific and limited to the labor only for drainage pipe replacement. 2. Any needed materials were to be the responsibility of the Township. 3. This addition to the bid specifications was made by Secretary/Treasurer Christy Bennett, as a possible use of Liquid Fuels Funds for any needed pipe replacement labor. 29. Marcho has participated in Board actions to award annual road projects since 2012. a. Projects were awarded by the Board following a 3 -0 vote during meetings held on May 8, 2012, April 9, 2013, March 11, 2014, April 14, 2015, and March 8, 2016. b. Barhite Excavating (1925 State Route 2014, Clifford Township, PA 18470 was awarded the annual road project as the successful bidder for years 201 through 2014. C. Brozonis Excavating, Inc. (2180 State Route 2014, Clifford Township, PA 18470) was awarded the annual road project as the successful bidder for years 2015 and 2016. 30. Both Barhite Excavating and Brozonis Excavating are family ownedloperated excavating companies located in Clifford Township. a. In addition to the annual road projects, both companies have performed other services for the Township such as grass /brush mowing. b. Both companies also have prior business relationships with Clifford Auto Center and Clifford Supply, independent of any Township specific work. C. Both companies generally purchase pipe and other supplies needed for road projects from Clifford Supply, based primarily on its close proximity to their usinesses. 31. At no time either before or after Marcho's initiation of service on the Board did the Clifford Township Board of Supervisors take any official action designating a business or businesses from which pipe and related materials needed for road projects should be purchased. a. The Township had a long- standing practice of purchasing any needed pipe and associated materials for road projects from Clifford Supply. b. This practice predated Marcho serving on the Board of Supervisors, and dates to at least 2007. C. Clifford Supply was utilized primarily because of its locality (approximately' mile from the Township building) and a desire by the Township to buy goods and services locally whenever possible. 32. Marcho was aware of the fact that the Township consistently purchased from Clifford Auto Center and /or Clifford Supply when he became a Member of the Township's Board of Supervisors. a. Since being appointed to the Board ... Marcho possessed a reasonable expectation that Clifford Supply, a business with which his immediate family is associated, would serve as a vendor of the Township, supplying pipe and Marcho, 15 -038 al-gge-T1 related materials needed for Township road projects. 33. Despite Marcho's reasonable expectation that Clifford Supply would serve as a Township vendor, as part of annual road projects, Marcho routinely participated in actions awarding bids /contracts and authorizing pipe purchases. a. Supervisors Marcho and Knowlton served as the contractor's point of contact during road projects and authorized the repair /replacement of any broken or damaged pipes. 1. Marcho, since being appointed Roadmaster in 2014, has been the primary point of contact. b. Records are not maintained by the Township or contractors to establish which Township official verbally authorized a pipe repair or replacement during these (2012 - 2015) road projects. 34. Prior to the 2012 road pro ect, Michael Barhite, co -owner of Barhite Excavating, had a conversation with Marco about continuing to purchase pipe for Township road projects from Clifford Supply, in light of the fact that Marcho was a Member of the Board of Supervisors. a. Marcho advised Barhite that it was acceptable for him (Barhite) to continue making any needed pipe purchases from Clifford Supply, since it (Clifford Supply) was owned b Marcho's brother and sister and that he (Marcho) was not involved with the business. b. Based on Marcho's representation that it was acceptable to continue to purchase pipe for Township projects from Clifford Supply, Barhite Excavating continued to do so on an as- needed basis from 2012 through 2014. 35. Like Barhite, Tom Brozonis, owner of Brozonis Excavating, purchased needed pipe for Township road projects during years 2015 and 2016 from Clifford Supply. a. Brozonis utilized Clifford Supply for these purchases based on the proximity to the jobsite, and his knowledge that the Township had a long-standing practice of purchasing pipe from Clifford Supply. 36. Marcho did not specifically direct either Barhite or Brozonis to purchase any needed road materials for Township projects from Clifford Supply. a. When contacted, Marcho would authorize materials to be purchased without designating from what vendor they should be obtained. b. Marcho had a reasonable expectation that any needed materials would be purchased from Clifford Supply, based on its proximity to the jobsite, long - standing practice of being a Township supplier of such, and the fact that contractors did not receive any additional compensation for material delivery. 37. Contractors making pipe and related material purchases from Clifford Supply were not involved in the invoicing, or payment process, between Clifford Supply and the Township. a. The contractor, or an employee thereof, would receive the needed materials at Clifford Supply and initial the invoice representing receipt of the materials. b. The invoices were then submitted to Clifford Township directly for payment.... Marcho, 15 -038 Page I C. Payment of these invoices was processed in the same manner as all other Township expenditures as detailed herein. 38. During 2013, 2014, and 2015, Marcho signed PennDOT annual project completion documents on behalf of the Township, certifying that the project was inspected and completed in accordance with the contract. a. The completion report for 2012 was not available in Township files. b. Marcho signed completion reports for 2013, 2014, and 2015 on June 28, 2013, July 1, 2014, and July 31, 2015, respectively. C. No completion documents have been signed for 2016, since work remains to be completed. 39. Marcho's use of the authority of his public position as a Member of the Clifford Township Board of Supervisors regarding purchases made from Clifford Supply include the following: a. As a public official/public employee, Marcho authorized Township hired contractors to repair /replace pipe and related materials on road projects, at a time he possessed a reasonable expectation that those materials would be purchased from Clifford Supply, a business owned by members of his Emmediate family. b. As a public official, Marcho motioned, seconded, and /or [sicl to approve Township payments issued to Clifford Supply for material purchases. C. As a public official, Marcho served as a Township signatory of checks issued to Clifford Supply for Township material purchases. d. Marcho executed annual PennDOT project completion reports for 2013, 2014, and 2015, certifying that projects were completed to secifECations which would include installation of materials obtained from Clifford Supply. 40. Members of Marcho's immediate family and/or a business with which same are associated realized a pecuniary benefit resulting from Marcho's use of the authority of his office by his authorization or approval of pipe and related products from Clifford Supply by the Township at a time when Marcho had a reasonable expectation that Clifford Supply would be the sole vendor of such products to the Township. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT MARCHO FILED DEFICIENT STATEMENTS OF FINANCIAL INTERESTS WITH THE TOWNSHIP. 41. Marcho, in his official capacity as a Member of the Clifford Township Board of Supervisors, was required to file a Statement of Financial Interests ( "SFI ") form by May 1 of each year, reporting information for the prior calendar year. 42. Clifford Township is annually provided with blank SFI forms for distribution to Township public officials /public employees who are required to file. a. Completed SFI forms are maintained by the Township Secretary/Treasurer. 43. Statement of Financial Interests forms filed by Marcho in his official capacity as a Member of the Clifford Township Board of Supervisors were filed for calendar years 2011 through 2014. Marcho, 15 -038 aP�3 44. Marcho failed to list all sources of income in excess of $1,300.00 on SFIs filed for calendar years 2011 through 2014. 45. Marcho checked "none" as a response to Box No. 10, direct/indirect sources of income in excess of $1,300.00, on his SFI filed for the 2011 calendar year. a. Marcho failed to report income from Stockcar Racing Experience, Chelsea Management Group, and Royal Cycle and Powersports on this filing. 46. For calendar years 2012 through 2014, Marcho failed to report Clifford Township, Stockcar Racing Experience, Royal Cycle & Powersports and Chelsea Management Group as direct/indirect sources of income. 47. Marcho failed to provide a response to Box No. 8 "Real Estate Interests" and Box No. 9 "Creditors" on an SFI dated 2113115 for calendar year 2014. 48. Marcho failed to report the date signed on his SFIs filed for the 2011 and 2013 calendar years. 49. Marcho failed to provide a response to Box No. 7 "calendar year" on his SFI intended for the 2011 calendar year. 50. Marcho failed to report Clifford Auto Center in Box No. 13 (Office, Directorship, or Employment in any Business) and Box No. 14 (Financial Interest in any Business) on his filed SFI intended for the 2011 calendar year. 51. Marcho failed to report his Office, Directorship, or Employment in any Business (Box No. 13) in Chelsea Management Group, Inc., Royal Cycle & Powersports, Royal Properties and the Stockcar Racing Experience on SFIs filed for calendar years 2011 through 2014. 52. Marcho failed to report his Financial Interest in any Business (Box No. 14) in Chelsea Management Group, Inc., Royal Cycles & Powersports and Royal Properties on SFIs filed for calendar years 2011 through 2014. III. DISCUSSION: As a Member of the Board of Supervisors ( "Board ") of Clifford Township (the "Township "), Susquehanna County, since December 12, 2011, Respondent Chris Marcho, hereinafter also referred to as "Respondent," "Respondent Marcho," and "Marcho," has been a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seg. The allegations are that Marcho violated Sections 1103(a), 1103(f), 1104(d), 1105(b)(3), 1105(b)(4), 1105(b)(5), 1105(b)(8), and 1105(b)(9) of the Ethics Act: (1) When he utilized the authority of his office as Township Supervisor and/or Roadmaster to direct and/or otherwise authorize the Township to make purchases from Clifford Supply. (a business with which members of his immediate family are associated) and /or Clifford Auto (a business with which he is associated), resulting in a private E ecuniary benefit for himself and /or businesses with which elmembers of his immediate family are associated; (2) When purchases in excess of $500.00 were made from Clifford Supply and /or Clifford Auto without an open and public process; Marcho, 15-038 age T4 '4 (3) When Marcho utilized the authority of his public office as a Member of the Board to approve payments to Clifford Supply and/or Clifford Auto, including but not limited to voting to approve bill lists, serving as Township signatory on payment checks, and participating in actions of the Board to otherwise authorize /approve payment; and (4) When Marcho failed to list all sources of income in excess of $1,300 on Statements of Financial Interests ('SFIs") filed for calendar years 2011 through 2014; failed to provide a response to Real Estate Interests and /or Creditors on an SFI purportedly filed for calendar year 2014; failed to provide a date as to verification of SFIs filed for the 2011 and 2013 calendar years; failed to identify the calendar year (believed 2011) for which SFIs were to be filed; failed to report his Office, Directorship, or Employment and Financial Interest in Clifford Auto upon an SFI intended for the 2011 calendar year; and failed to identify his Office, Directorship, or Employment and Financial Interest in Chelsea Management Group, Inc. and Royal Properties on SFIs filed for calendar years 2011 through 2014. Per the Consent Agreement, the Investigative Division has exercised its prosecutorial discretion to nol pros the allegation under Section 1104(d) of the Ethics Act. Based upon the no] pros, we need not address the Section 1104(d) allegation that is no longer before us. 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 official1public employee from using the authority of public officelemployment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public Marcho, 15 -038 aP ge-' 5 employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting: § 1103. Restricted activities (f) Contract. ---No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 Pa.C.S. § 1103(f). Section 1103(f) of the Ethics Act provides in part that no public official /public employee or his spouse or child or business with which the public official /public employee or his spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued atfive hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Section 1105(b)(3) of the Ethics Act requires the filer to disclose on the SFI any direct or indirect interest in any real estate which was sold or leased to or purchased or leased from the Commonwealth, any of its agencies or political subdivisions, or which was the subject of any condemnation proceedings by the Commonwealth or any of its agencies or political subdivisions. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(4) of the Ethics Act requires the filer to disclose on the SFI the name and address of each creditor to whom is owed in excess of $6,500 and the interest rate thereon. Subject to certain statutory exceptions not applicable to this matter, Section 1 105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any office, directorship or employment in any business entity. Marcho, 15 -038 aage 'I-6 Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any financial interest in any legal entity en aged in business for profit. The term "financial interest" is defined in the Ethics Act as "?a]ny financial interest in a legal entity engaged in business for profit which comprises more than 5% of the equity of the business or more than 5% of the assets of the economic interest in indebtedness." 65 Pa.C.S. § 1102. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. The Township is a second class township. The Board consists of three Members. During the relevant time period, the Township's bill paying process included the preparation of a monthly bill list by the Secretary/Treasurer for Board review and approval. All three Supervisors have signature authority over Township accounts, and two signatures are required for Township checks. Facsimile stamps /electronic signatures are not used. Respondent Marcho has served as a Member of the Board since December 12, 2011. Since 2012, the other two Board Members have been Dennis Knowlton ( "Knowlton ") and Barry Searle ( "Searle "). In addition to serving as a Board Member, Respondent has also served as the appointed Township Roadmaster since approximately January 2014. The following are businesses with which Respondent is associated as the Ethics Act defines that term: Clifford Auto Center, Chelsea Management Group, Inc., Royal Properties, Royal Cycle & Powersports, Inc., and Stockcar Racing Experience. Clifford Auto Center is an Auto Value® auto parts store operating through Chelsea Management Group, Inc. Pennsylvania Department of State records identify Respondent as President, Vice - President, Secretary and Treasurer of Chelsea Management Group, Inc. Respondent is one of three partners /owners of Royal Properties, a 50% partner%owner of Royal Cycle & Powersports, Inc., and a part -time employee of Stockcar Racing Experience. Respondent's siblings are the owners and officers of another business named "Clifford Supply." Clifford Supply is a retail hardware business that sells plumbing, electrical, paint, lumber, and general hardware items. Corporate documents for Clifford Supply do not reflect any financial interest held by Respondent with the company. Clifford Auto Center and Clifford Supply have been vendors /contractors of the Township since before Respondent became a Member of the Board. Other than Clifford Auto Center and Clifford Supply, the nearest businesses offering similar items for sale are approximately ten miles from the Township. Since becoming a Member of the Board in December 2011, Respondent has been the primary Township official responsible for making purchases from Clifford Auto Center. As a Township public official /public employee, Respondent identified items he believed were necessary for the general care, maintenance and/or repair of Township vehicles, equippment, and/or facilities. Respondent would proceed to purchase those items he identified as necessary from Clifford Auto Center. During 2012 and 2013, Respondent made purchases from Clifford Auto Center in his official capacity as a Township Supervisor. Since January 2014, Respondent has made purchases from Clifford Auto Center in his official capacity as a Township Supervisor and /or as the appointed Township Roadmaster. No actions were taken by the Board to authorize or approve Respondent to make purchases from Clifford Auto Center, prior to purchases occurring. The Board did not provide any public notice prior to purchases being made from Clifford Auto Center, or subsequently publicly disclose proposals considered in addition to those of Clifford Auto Center. Additionally, the Board did not disclose at any time any Marcho, 15 -038 aP�7 contracts awarded to Clifford Auto Center. None of the items sold to the Township by Clifford Auto Center were the result of a competitive bidding process. For those purchases in which Clifford Auto Center was utilized, Respondent maintained supervisory and/or overall responsibility for the implementation and administration of the purchaselcontract. Supervisors Knowlton and Searle were aware that Respondent was purchasing items for the Township through Clifford Auto Center, and they did not object based upon a belief that it was a cost savings measure for the Township. Purchases from Clifford Auto Center were approved by the Board after -the -fact, as part of the Township's routine bill paying process. Since February 14, 2012, Clifford Auto Center received payments totaling at least $14,476.47 from Clifford Township as detailed in Fact Finding f0 a. However, of that amount, $7,384.71 represented reimbursement to Respondent -- through Clifford Auto Center - -for the actual cost of goods that Respondent purchased elsewhere. Since December 4, 2012, Respondent signed at least 28 invoices representing $1,672.86 in Township purchases from Clifford Auto Center. Respondent's signature on invoices represents that the items listed were received by the Township. Multiple invoices were paid fo Clifford Auto Center absent any initials or signatures. The parties have stipulated that Respondent's use of the authority of his public office as a Member of the Board concerning purchases made from Clifford Auto Center included the following: (1} determining the need and executing the actual purchases of Township goods /supplies from Clifford Auto Center; (2) initiating or seconding a motion or voting to approve Township payments totaling at least $1,299.89, issued to Clifford Auto Center for goods purchased; (3) signing the front side of Township checks totaling $4,175.32 which were issued to Clifford Auto Center as payment for goods purchased and/or reimbursement of purchases by Respondent; and (4) verifying /receiving invoices /purchases totaling $1,672.86 made on the Township's behalf from Clifford Auto Center. As for Clifford Supply, the Township has purchased plumbing supplies, electrical items, pipe and general hardware items from Clifford Supply since at least 2006. Township purchases from Clifford Suppply were generally made by persons other than Respondent, although Respondent directly purchased items totaling $106.78 for the Township from Clifford Supply. Since January of 2012, at least 45 payments totaling $31,102.87 were issued to Clifford Supply concerning purchases by /for the Township. The Township has had a long- standing practice of purchasing any needed pipe and associated materials for road projects from Clifford Supply. This practice predated Respondent serving on the Board. The parties have stipulated that since being appointed to the Board, Respondent possessed a reasonable expectation that Clifford Supply would serve as a vendor of the Township, supplying pipe and related materials needed for Township road projects. Despite Respondent's reasonable expectation that Clifford Supply would serve as a Township vendor as part of annual road protects, Respondent has participated in Board actions to award annual road projects since 2012. Pro' rojjects were awarded by the Board following a 3 -0 vote during meetings held on May 8, 2092, April 9, 2013, March 11, 2014, April 14, 2015, and March 8, 2016. An excavating company named "Barhite Excavating" was awarded the annual road project as the successful bidder for years 2012 through 2014. An excavating company named "Brozonis Excavating, Inc." was awarded the annual road project as the successful bidder for years 2015 and 2016. Marcho, 15 -038 a 8 In addition to the annual road projects, both Barhite Excavating and Brozonis Excavating, Inc. have performed other services for the Township. They also have prior business relationships with Clifford Auto Center and Clifford Supply independent of any Township specific work. Respondent and Supervisor Knowlton served as the contractor's point of contact during road projects and authorized the repair /replacement of any broken or damaged pipes. Since being appointed Roadmaster in 2014, Respondent has been the primary point of contact. Prior to the 2012 road project, Michael Barhite, co -owner of Barhite Excavating, had a conversation with Respondent about continuing to urchase pipe for Township road projects from Clifford Supply, in light of the fact that Respondent was a Member of the Board. Based upon Respondent's representation that it was acceptable to continue to purchase pipe for Township projects from Clifford Supply, Barhite Excavating continued to do so on an as- needed basis from 2012 through 2014. Tom Brozonis, owner of Brozonis Excavating, purchased needed pipe for Township road projects during years 2015 and 2016 from Clifford Supply. Brozonis utilized Clifford Suppply for these purchases based on the proximity to the Jobsite and his knowledge that the Township had a long- standing practice of purchasing pipe from Clifford Supply. When Respondent would authorize such materials to be purchased, Respondent did not designate from what vendor they should be obtained. However, Respondent had a reasonable expectation that any needed materials would be purchased from Clifford Supply, based upon its proximity to the jobsite, long - standing practice of being a Township supplier of such, and the fact that contractors did not receive any additional compensation for material delivery. Contractors making pipe and related material purchases from Clifford Supply would receive the needed materials at Clifford Supply and initial the invoice representing receipt of the materials. The invoices were then submitted to Clifford Township directly for payment. Purchases from Clifford Supply were approved by the Board after -the -fact, as part of the Township's routine bill paying process. Prior to March 11, 2014, the monthly bill lists were voted /approved in their entirety by a single motion. Effective March 11, 2014, the Township altered the manner in which bills from Clifford Auto Center and Clifford Supply were approved by the Board, so that Respondent would abstain from official action taken on invoices /bills from those entities while still being able to participate in the approval of other monthly expenditures. Although Respondent abstained from Board action to vote to approve payment to Clifford Auto Center /Clifford Supply, Respondent continued to sign checks and approve invoices related to both. The parties have stipulated that Respondent's use of the authority of his public position as a Member of the Board regarding purchases from Clifford Supply included the following: (1) authorizing Township hired contractors to repair /replace pipe and related materials on road projects at a time when he possessed a reasonable expectation that those materials would be purchased from Clifford Supply, a business owned by members of his immediate family; (2) pparticipating in Board actions /votes approving Township payments issued to Clifford Supply for material purchases; (3) serving as a Township signatory on checks issued to Clifford Supply for Township material purchases; and (4) executing annual PennDOT project completion reports for 2013, 20'14, and 2015, certifying that projects were complete specifications which would include installation of materials obtained from Clifford Supply. The parties have stipulated that members of Respondent's immediate family and/or a business with which same are associated realized a pecuniary benefit resulting from Respondent's use of the authority of his office by his authorization or approval of pipe and Marcho, 15 -038 age gee' 9 related products for the Township at a time when Respondent had a reasonable expectation that Clifford Supply would be the sole vendor of such products to the Township. With regard to Respondent's SFIs, Respon failed to list all reportable sources of income on SFIs filed for calendar years 2011 through dent 2014. Respondent checked "none" as a response to Box No. 10 (direcilindirect sources of income of $1,300.00 or more) on his SFI filed for the 2011 calendar year. Respondent failed to report Stockcar Racing Experience, Chelsea Management Group, a.nd Royal Cycle and Powersports as directlindirect sources of income on this filing. For calendar years 2012 through 2014, Respondent failed to report the Township, Stockcar Racing Experience, Royal Cycle & Powersports and Chelsea Management Group as direct/indirect sources of income. Respondent failed to provide a response to Box No. 8 "Real Estate Interests" and Box No. 9 "Creditors" on an SFI dated 2113115 for calendar year 2014. Respondent failed to report the date signed on his SFIs filed for the 2011 and 2013 calendar years. Respondent failed to provide a response to Box No. 7 "calendar year" on his SFI intended for the 2011 calendar year. Respondent failed to report Clifford Auto Center in Box No. 13 (Office, Directorship, or Employment in any Business) and Box No. 14 (Financial Interest in any Business) on his filed SFl intended for the 2011 calendar year. Respondent failed to report his Office, Directorship, or Employment in any Business (Box No. 13) in Chelsea Management Group, Inc., Royal Cycle & Powersports, Royal Properties and the Stockcar Racing Experience on SFIs filed for calendar years 2011 through 2014. Respondentfailed to report his Financial Interest in any Business (Box No. 14) in Chelsea Management Group, Inc., Royal Cycles & Powersports and Royal properties on SFIs filed for calendar years 2011 through 2014. 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: The Investigative Division will recommend the following in relation to the above allegations: That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a) occurred when Chris Marcho utilized the authority of his office as Township Supervisor to direct and/or otherwise authorize purchases from Clifford Supply and/or Clifford Auto, both businesses with which he and/or members of his immediate family are associated, resulting in a pecuniary benefit; That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a) occurred when Chris Marcho utilized the authority of his office as Township Supervisor to approve payments to Clifford Supply and/or Clifford Auto (both businesses with which he and /or members of his immediate family are associated) including but not limited to: voting to approve bill lists, serving as Township signatory on payment checks, and participating in actions Marcho, 15 -038 aPO of the Board to otherwise a utho rizelapp rove payment; G. That no violation of Section 1103(f) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(f) occurred concerning purchases which were made from Clifford Supply and /or Clifford Auto, in that insufficient evidence exists to confirm purchases in excess of $500.00 from Clifford Auto; and that Clifford Supply is not an entit associated with Marcho, his spouse, or childy d. That a violation of Sections) 1105(b)(3)(4)(5)(8) and (9) of the Public Of icial andd m oyee Ethics Act, 65 Pa.C.S. § 1105(b)(3)(4)(5 (8) and S9) occurred when Marcho filed deficient tatement of Financial Interests forms for calendar years 2011 through 2014, when he failed to list all sources of income for calendar years 2011 through 2014; failed to provide a response to Real Estate Interests and/or Creditors for calendar year 2014; failed to provide a date as to verification of Statements of Financial Interests filed for the 2011 and 2013 calendar years; failed to identify the calendar year (believed 2011) for which Statements of Financial Interests were to be filed, failed to report his Office, Directorship, or Employment and Financial Interest in Clifford Auto for the 2011 calendar year, and failed to identify his Office, Directorship, or Employment and Financial Interest in Chelsea Management Group, Inc. and Royal Properties for calendar years 2011 through 2014. e. That no action will be undertaken pursuant [to] Section 1104(d) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(d). Marcho agrees to make payment in the amount of $1,250.00 in settlement of this matter as follows: $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty, (30) days of the issuance of the final adjudication in this matter. $250.00 which represents a portion of the expenses and costs incurred by the State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Marcho, 15 -038 P e 1 To the extent he has not already done so, Marcho agrees to file complete and accurate Statements of Financial Interests with Clifford Township through the Pennsylvania State Ethics Commission, for 20'11 through 2014 calendar years within thirty (30) days of the issuance of the final adjudication in this matter. 6. Marcho agrees to not accept any reimbursement, compensation or other payment from Clifford Township 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 an law enforcement or other authority to take action in this mater. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 2 -3. In considering the Consent Agreement in light of the facts of this case, we determine that the two recommended violations of Section 1103(a) of the Ethics Act as set forth in the Consent Agreement may be appropriately combined. Respondent Marcho used the authority of his office as a Township Supervisor to direct/authorize purchases from Clifford Supply and/or Clifford Auto Center — businesses with which he and/or members of his immediate family are associated —and to approve payments to same. The parties are in agreement that Respondent's aforesaid actions resulted in a pecuniary benefit to Respondent, his siblings, and/or businesses with which they are associated. Accordingly, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Respondent Marcho used the authority of his office as Township Supervisor to direct/authorize purchases from Clifford Supply andlor Clifford Auto Center— businesses with which he an /or members of his immediate family are associated —and when he approved payments to same by actions including but not limited to voting to approve bill lists, serving as Township signatory on payment checks, and participating to actions of the Board to otherwise aut orize /approve payment. Based upon the Stipulated Findings, we agree with the parties' recommendation and we hold that no violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. 1103(f), occurred concerning purchases which were made from Clifford Supply and/or Clifford Auto Center, in that insufficient evidence exists to confirm purchases in excess of $500.00 from Clifford Auto Center, and Clifford Supply is not an entity with which Respondent Marcho or his spouse or child is associated. Finall , we agree with the parties and we hold that a violation of Section (s) 1105(b)(3)(4y}(5)(8) and (9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(3)(4)(5)(8) and (), occurredd when Respondent Marcho filed deficient SFi forms for calendar years 2011 through 2014, when he: failed to list all sources of income for calendar years 2011 through 2014; failed to provide a response to Real Estate Interests and/or Creditors for calendar year 2014; failed to provide a date as to verification of Statements of Financial Interests filed for the 2011 and 2013 calendar years; failed to identify the calendar year (believed 2011) for which Statements of Financial Interests were to be filed; failed to report his Office, Directorship, or Employment and Financial Interest in Clifford Auto Center for the 2011 calendar year; and failed to identify his Office, Directorship, or Employment and Marcho, 15 -038 pa—ge n Financial Interest in Chelsea Management Group, Inc. and Royal Properties for calendar years 2011 through 2014. As part of the Consent Agreement, Respondent Marcho has agreed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Respondent Marcho has further agreed to make payment to this Commission in the amount of $250.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Marcho has agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. Additionally, to the extent he has not already done so, Marcho has agreed to file with the Township, through this Commission, complete and accurate SFIs for the 2011 through 2014 calendar years within thirty (30) days of the issuance of the final adjudication in this matter. We determine that the Consent Agreement submitted by the parties sets forth a proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, per the Consent Agreement of the parties, Respondent Marcho is directed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30"') day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Respondent Marcho is further directed to make payment to this Commission in the amount of $250.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order m9de payable to the Pennsylvania State Ethics Commission by no later than the thirtieth (30 ) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Respondent Marcho is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Respondent Marcho is directed to file complete and accurate SFIs with the Township, through fts Commission, for the 2011 through 2014 calendar years by no later than the thirtieth (30"') day after the mailing date of this adjudication and Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: As a Member of the Board of Supervisors ( "Board ") of Clifford Township (the "Township"), Susquehanna County, since December 12, 2011, Respondent Chris Marcho ("Marcho") has been a public official /public employee subject to the Marcho, 15 -038 a�2-3 provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. §1101 et se q. Marcho violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he used the authority of his office as Township Supervisor to direct/authorize purchases from Clifford Supply and/or Clifford Auto Center— businesses with which he and/or members of his immediate family are associated —and when he approved payments to same by actions including but not limited to voting to approve bill lists, serving as Township signatory on payment checks, and participating in actions of the Board to otherwise authorize /approve payment. 1 No violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred concerning purchases which were made from Clifford Supply and /or Clifford Auto Center, in that insufficient evidence exists to confirm purchases in excess of $500.00 from Clifford Auto Center, and Clifford Supply is not an entity with which Respondent Marcho or his spouse or child is associated. A violation of Section(s) 1105(b)(3)(4)(5)(8) and (9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(3)(4 }(5)(8) and (9), occurred whhen Respondent Marcho filed deficient Statement of Financial Interests forms for calendar years 2011 through 2014, when he: failed to list all sources of income for calendar years 2011 through 2014; failed to provide a response to Real Estate Interests and /or Creditors for calendar year 2014; failed to provide a date as to verification of Statements of Financial Interests filed for the 2011 and 2013 calendar years; failed to identify the calendar year (believed 2011) for which Statements of Financial Interests were to be filed; failed to report his Office, Directorship, or Employment and Financial Interest in Clifford Auto Center for the 2011 calendar year; and failed to identify his Office, Directorship, or Employment and Financial Interest in Chelsea Management Group, Inc. and Royal Properties for calendar years 2011 through 2014. In Re: Chris Marcho, File Docket: 15 -038 Respondent Date Decided: 10/19/16 Date Mailed: 10131116 ORDER NO. 1744 1. As a Member of the Board of Supervisors ( "Board " of Clifford Township (the "Township "), Susquehanna County, Chris Marcho ('Marcho ") violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he used the authority of his office as Township Supervisor to direct/authorize purchases from Clifford Supply and/or Clifford Auto Center — businesses with which he and/or members of his immediate family are associated --and when he approved payments to same by actions including but not limited to voting to approve bill lists, serving as Township signatory on payment checks, and participating in actions of the Board to otherwise authorize /approve payment. 2. No violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103 ft occurred concerning purchases which were made from Clifford Supply andlor Clifford Auto Center, in that insufficient evidence exists to confirm purchases in excess of $500.00 from Clifford Auto Center, and Clifford Supply is not an entity with which Respondent Marcho or his spouse or child is associated. A violation of Section(s) 1105(b)(3)(4)(5)(8) and (9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(3)(4)(5)(8) and (9), occurred when Marcho filed deficient Statement of Financial Interests forms for calendar years 2011 through 2014, when he: failed to list all sources of income for calendar years 2011 through 2014; failed to provide a response to Real Estate Interests and /or Creditors for calendar year 2014; failed to provide a date as to verification of Statements of Financial Interests filed for the 2011 and 2013 calendar years; failed to identify the calendar year (believed 2011) for which Statements of Financial Interests were to be filed; failed to report his Office, Directorship, or Employment and Financial Interest in Clifford Auto Center for the 2011 calendar year; and failed to identify his Office, Directorship, or Employment and Financial Interest in Chelsea Management Group, Inc. and Royal Properties for calendar years 2011 through 2014. Per the Consent Agreement of the parties, Marcho is directed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30 ) day after the mailing date of this Order. Per the Consent Agreement of the parties, Marcho is further directed to make payment to the Pennsylvania State Ethics Commission in the amount of $250.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payablq to the Pennsylvania State Ethics Commission by no later than the thirtieth (30t ) day after the mailing date of this Order. Per the Consent Agreement of the parties, Marcho is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already dome so, Marcho is directed to file complete and accurate Statements of Financial Interests with the Township, through the Marcho, 15 -038 Page 25 Pennsylvania State Ethics Com Mission, for the 2011 through 2014 calendar years by no later than the thirtieth (30"') day after the mailing date of this Order. 8. Non - compliance with paragraph 4, 5, 6 or 7 of this Order will result in the institution of an order enforcement action. BY THE COMMISSION, 9 is o as o a e a, air