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HomeMy WebLinkAbout1722 BloomSTATE ETHICS COMMISSION 309 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Dennis Bloom, File Docket: 11-001 Respondent X -ref: Order No. 1722 Date Decided: 9127117 : Date Mailed: 1016117 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick 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 se q., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint/Findings Report" (hereinafter referred to as "Investigative Complaint ") An "Answer to Investigative Complaint/Findings Report" (hereinafter referred to as "Answer ") was filed by Respondent, and a hearing was held. The record is complete. ALLEGATIONS: That Dennis Bloom, a public officiallpublic employee in his capacity as the Chief Executive Officer ( "CEO" ) of the Pocono Mountain Charter School, violated Sections 1103(a), 1103(f), 1105(b)(5), 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 and/or a member of his immediate family and/or businesses with which he and members of his immediate family are associated by: participating in actions of the Charter School, including making recommendations to the Board resulting n real estate rental contracts being entered into with the Shawnee Tabernacle Church where he serves as Pastor; when as CEO of the Pocono Mountain Charter School, Bloom entered into agreements with Shawnee Tabernacle Church for the expansion of school facilities, at a time when Bloom knew or had a reasonable expectation that Radium, Inc., a business with which he is associated, would serve as the General Contractor for the expansion construction; when he authorized the free use of Charter School facilities by the Tobyhanna Impact Athletic Center, a business with which his daughter is associated; when he authorized the hiring of his spouse as Assistant Chief Executive Officer of the Charter School and recommended pay increases for her; when he directed and authorized that payments be issued by the Charter School to him for vehicle allowance; when he participated in the hiring of his children for positions with the Charter School, including but not limited to recommending their hiring; when he failed to disclose on SFIs filed for the 2007, 2008, 2009 and 2010 calendar years all direct/indirect sources of income, his office, directorship or employment in any business for profit and financial interest in any legal entity in business for profit. 11. FINDINGS: A. Pleadings P.O. BOX 1 1470, HARRISBURG, PA 17108 -1470 • 717- 783 -1610 • 1 -800- 932 -0936 • www.ethics.state.pa.us Bloom, 11 -001 -ag—e--2 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that Dennis Bloom violated provisions of the State Ethics Act (Act 93 of 1998). 2. On March 2, 2011, a letter was forwarded to Dennis Bloom, by the Investigative Division of the State Ethics Commission informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7010 1060 0000 3361 5917. b. Said letter was returned to the State Ethics Commission by the United States Postal Service on April 5, 2011, marked unclaimed, return to sender. 3. On April 8, 2011, the unclaimed March 2, 2011, letter was forwarded to Dennis Bloom, c/o his counsel Marshall E. Anders, Esquire, by the Investigative Division of the State Ethics Commission, informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7009 1680 0000 2102 8189. b. The domestic receipt bore an unintelligible signature with a delivery date of April 11, 2011. 4. On February 7, 2012, an amended Notice of Investigation was forwarded to Dennis Bloom, c/o Marshall E. Anders, Esquire, by the Investigative Division of the State Ethics Commission informing him that the allegations contained in the March 2, 2011, Notice of Investigation were being amended. a. Said letter was forwarded by certified mail, no. 7011 0470 0002 7997 0301. b. The domestic return receipt bore the signature of M. Jezierski, with a delivery date of February 8, 2012. 5. On February 10, 2012, an amended Notice of Investigation was forwarded to Dennis Bloom, c/o Marshall Anders, Esquire, by the Investigative Division of the State Ethics Commission informing him that the allegations contained in the March 2, 2011, and February 7, 2012, Notice of Investigation were being amended. a. Said letter was forwarded by certified mail, no. 7010 1060 0000 3361 3012. b. The domestic return receipt bore the signature of Maria Marcy, with a delivery date of February 13, 2012. 6. The Investigative Complaint/Findings Report was mailed to the Respondent on February 24, 2012. 7. Dennis Bloom served as the Chief Executive Officer ( "CEO ") of the Pocono Mountain Charter School ( "PMCS ") from its creation in or about 2003 until December 10, 2010. a. Bloom resigned as CEO of the PMCS on or about December 10, 2010. 8. Dennis Bloom [was a founder] of the Shawnee Tabernacle Church ( "STC ") [on or] about February 8, 1995. Bloom, 11-001 a� a. Dennis Bloom was a Pastor of the STC. 9. Dennis Bloom is married to Gricel Bloom and has a son Mitchell Bloom and a daughter Priscilla Bloom. a. Mitchell Bloom was born on [date redacted] 1991. b. Priscilla Bloom was born on [date redacted] 1989. 10. Dennis Bloom and Gricel Bloom formed the STC on or about February 8, 1995, with a business address of North Slope I, Hollow Road, Building 10, Unit 39, Shawnee, PA 18356 and a mailing address of PO Box 285, Shawnee -on- Delaware, PA 18356. a. STC moved to 16 Carriage Square, Tobyhanna, Pennylvania [by no later than] March 1, 2002. 11. On or about June 28, 1999, the STC purchased approximately 10.47 acres in Monroe County from Spring Hill Realty Company for the sum of 218,250.00. a. This parcel was identified as Monroe County Tax ID #31112445, 31112446, 31112447, 3/112448 & 3141112 -1. b. This transaction was recorded in Monroe County Record Book number 2065, pages 9184 -9189. C. The physical location of this property is 16 Carriage Square, Tobyhanna, PA. d. On September 5, 2002, ownership of these parcels was transferred from the STC to the Shawnee Tabernacle Church, Inc.[also referred to herein as the "STC"], as recorded in Monroe County Record Book number 2131 pages 3220 -3226. 12, This 10.47 acre parcel was the future home of the STC and PMCS. 13. On or about August 14, 2001, Dennis Bloom incorporated the STC, 16 Carriage Square, Tobyhanna PA 18466 with the PA Department of State, Corporation Bureau. a. Bloom was listed as the only incorporator. b. Dennis Bloom is the listed President on these business filings with the PA Department of State. 14. On March 1, 2002, Dennis Bloom filed an amendment to these Articles of Incorporation with the PA Department of State. a. Filed with the amended Articles of Incorporation was an undated, one -page letter on STC stationery indicating that the STC located in Shawnee Delaware, PA, organized in 1995 is the same entity as the STC organized in 2001 and the prior will cease to exist. b. This correspondence was signed by Pastor Dennis Bloom, President. C. Dennis Bloom, Gricel Bloom (wife), Carmelo Ruiz and Ruth Baptise are listed as the Board of Directors. 1. Dennis Bloom signed the amended Articles of Incorporation under the Bloom, 11 -001 �4 title "President." d. No other changes to this entity have been filed with the PA Department of State. 15. Bloom operated the Tobyhanna Christian Academy ( "TCA "), a private school, at 16 Carriage Square from approximately 1999 to or about 2002. a. Payments continued to be issued from TCA accounts to Bloom and his children after the TCA ceased formal operations as a school. 16. The Pocono Mountain Learning Academy ( "PMLA ") was formed by Dennis Bloom in October 2002. 17. On October4, 2002, Articles of Incorporation for the PMLA [at] 16 Carriage Square, Tobyhanna, PA 18466 were filed with the Pennsylvania Department of State, Corporation Bureau. a. The effective date of the incorporation was listed as September 30, 2002. b. Entity number 3097537 was assigned to this nonprofit entity. C. Reverend Dennis Bloom is listed as the incorporator. d. The stated purpose for the nonprofit corporation was "to provide charter school educational instruction as an alternative to public school instruction." 18. In order to operate, a charter school must be approved by a local public school district's board of school directors. a. 16 Carriage Square, Tobyhanna, PA is located within the geographical boundaries of the Pocono Mountain School District ( "PMSD "). 19. A Charter School application fact sheet was submitted to the PMSD in the name of Pocono Mountain Learning Academy Charter School with a proposed start date of August 25, 2003. a. The proposed charter school was for grade levels K through 12. b. The proposed school location was 16 Carriage Square, Tobyhanna, PA. 1. This is the same location as the STC [of which Bloom was a founder and Pastor]. 20. On October 4, 2002, Dennis Bloom filed amended Articles of Incorporation for the PMLA reflecting the stated business purpose was "to provide charter school educational instruction as an alternative to public school instruction." 21. Amended Articles of Incorporation [were] filed by Dennis Bloom with the Pennsylvania Department of State on March 6, 2003, changing the entity name from the "Pocono Mountain Learning Academy" to the "Pocono Mountain Charter School." a. Dennis Bloom [signed] this amended filing as President and CEO of the PMLA. b. The registered business address of PMCS remained 16 Carriage Square, Tobyhanna, PA 18466- -the same physical location as the STC. Bloom, 11 -001 -a F- c. This entity has operated as the "Pocono Mountain Charter School" ( "PMCS ") since March 6, 2003. 22. [The application] submitted to the PMSD included information relating to the proposed school and its operations as listed below. The proposed school intended to use the same school calendar as the PMSD with school hours of 7:30 a.m. to 2:30 p.m. The proposed charter school will rent space from Shawnee Tabernacle which is located in Tobyhanna at 16 Carriage Square off of Route 196 and three miles from the intersection of Routes 940, 611 and 196. The site is adjacent to the Carriage Square Mall. This area in Coolbaugh Township is one of the fastest growing areas in Monroe County. 2. The facility is on an enclosed ten (10) acre site with adequate room for parking and for school buses to safely navigate to drop off and pick up students. A state of the art playground is on site as well as a licensed kitchen and cafeteria. Currently an addition is being built which will accommodate from three hundred to five hundred students. There is no other site or facilities in Tobyhanna with the available space and amenities to safely and comfortably accommodate the number of expected students. Category 3: a description of the foundinglmanagement team which reads in part: 'The founding coalition of the Pocono Mountain Learning Academy Charter School is Pastor Dennis Bloom, Gricel Bloom, Elder James L. Shelton, and Dr. Janet S. Shelton. Included is a brief biography for each founder. Dennis Bloom lists himself as being the founder and Chief Administrative Officer of the Tobyhanna Christian Academy, Tobyhanna, PA and founder and Pastor of Shawnee Tabernacle Church. Gricel Bloom is identified as the co- founder and Principal of the Tobyhanna Christian Academy and co- founder of the Shawnee Tabernacle Church. Elder James L. Shelton is identified as an Elder with the Shawnee Tabernacle Church and an Administrator with the Tobyhanna Christian Academy. Dr. Janet S. Shelton does not have any stated church affiliations but was listed as a Principal for the Tobyhanna Christian Academy. 23. In the charter school application submitted to the PMSD the narrative paragraphs noted, in part: "How the founding group came that he (Bloom) ... identified and organized the founding group based on their interest and experience in education. The individuals were willing to commit the time and energy needed to investigate, organize, plan, and write a charter school application." a. The application also noted the proposed management organization as follows: "There will be five (5) members of the Board of Trustees who will assume the ultimate responsibility for the governance of the [Charter School]. The Chief Administrative Officer (CAO) will report directly to the Board of Trustees and assume the overall responsibility for the daily operation of the charter school. The principal will report directly to the CAO and will assume responsibility for the leadership and management of the daily operation of the school. Trustees of the charter school board would be selected as follows: Bloom, 11 -001 �G "The initial members of the board of Trustees will be appointed by the Founding Coalition and will serve for five (5) ears. After the initial five -year term, three members will stand for election for a two -year term. Then after the seventh year, the other two members will stand for election for another three -year term. Two seats on the Board of Trustees will be reserved for representatives of the parents/ guardians of students enrolled in the [Charter School]. The Chief Administrative Officer will be a standing member of the Board with no voting rights." 24. The PMSD's Board of Directors approved a Resolution on February 19, 2003, granting a charter to the PMCS. a. The charter period commenced with the execution of the agreement ending with the last day of the 2005 -2006 school year. b. The Charter can be renewed for additional periods not to exceed five years. G. The Charter was signed on March 21, 2003, by Elder James Shelton on behalf of the PMCS. 25. From or about February 2003 until December 2010, Bloom served [as CEO of the PMCS]. 26. Dennis Bloom's job descriptions as CEO of the PMCS delegate the responsibility to him to manage the organization's (PMCS's) contracts, including leases and employment contracts. 27. Bloom was the point of contact on the leases for both the STC and the PMCS. 28. Between June 5, 2003, and July 9, 2007, at least six different lease agreements were entered into between the PMCS and the STC for property located at 16 Carriage Square, Tobyhanna, PA. a. Bloom simultaneously held the positions as the CEO of the PMCS, and Pastor of the STC during this entire time frame. 1. As PMCS CEO, Bloom managed the terms of these leases. 29. On June 5, 2003, Dennis Bloom, in his official capacity as President of the STC signed a lease agreement with the PMCS. a. This lease also was signed by Elder James Shelton, Board President, PMCS. 1. James Shelton was an Elder with the STC and a member of the PMCS founding group along with Bloom when he signed this lease as President of the PMCS. b. Dennis Bloom was the CEO of the PMCS when he signed this lease as President of the STC. 30. The two subsequent leases are a June 25, 2004, lease amendment and November 3, 2005, ground lease. 31. A tease Amendment Agreement dated August 1, 2006, amended the lease amendment dated June 25, 2004, and the original lease dated June 5, 2003, including provisions for rent increases as a result of the expansion /renovations. Bloom, 11 -00 1 }a e7 a. This lease amendment was signed by Luddie Chatt, President, STC and Michelle Dezonie, President, PMCS on July 26, 2006. 32. Minutes from the PMCS Board of Trustees meeting held on July 26, 2006, include Board action taken to approve the lease agreement. a. Minutes do not include any recorded discussion on the lease agreement. b. Bloom was a non- voting member of the Board. 33. On January 3, 2007, a ground lease was executed for a parcel of land located on Park Drag for a five -year period at a minimal annual rate of $1.00. a. This lease [was] signed by Luddie Chatt on behalf of the Lessor STC) on February 7, 2007, and Michelle Dezonie on behalf of the Lessee PMCS), 1. Dezonie was the PMCS Board President at the time. b. This ground lease was commonly referred to as the Parking Lot Lease. 34. Bloom, as CEO of the PMCS, [managed] all PMCS leases. 35. Neither Bloom nor his wife, Gricel Bloom, had any prior experience operating a charter school. a. Co- founders Elder James Shelton and his wife, Dr. Janet Shelton, had experience as educators. 36. Dennis Bloom's profile identified the following educational background and professional experience: Education: Long Island University, NY, 1976 -1977: Credits MBA Taxation John Jay College, NY, 1974: BS Criminal Justice Professional Positions: Chaplain, Pocono Mountain Regional Police: 2002 - Present Member, Monroe County Children and Youth Advisory Board, PA: 2002 - Present Founder and Chief Administrative Officer, Tobyhanna Christian Academy, Tobyhanna, PA: 1997- Present. Founder and Pastor, Shawnee Tabernacle Church, Tobyhanna, PA: 1995- Present Officer, Port Authority NY -NJ State Police, NY: 1978 -1998 Member, U.S. Security Service, NY: 1978 Director Security, Alexander's Department Store, NY: 1974 -1978 37. Gricel Bloom's profile did not identify any training in the education field. Her profile detailed the following education and professional positions: Education: Pace University, NY, 1979; Candidate BBA Professional Positions: Co-founder and Principal, Tobyhanna Christian Academy, Tobyhanna, PA: 1997- 2001; Business Manager: 2001 - Present. Co- founder, Shawnee Tabernacle Church, Tobyhanna, PA: 1995- Present. Experiences: Bilingual Legal Executive Secretary, Patterson, Belknap, Webb & Tyler, NY: Bloom, 11 -001 a December, 1985 -1989. Administrative Assistant, Executive Secretary, Mendik Realty, NY: 1985 Bilingual Executive Secretary for President, Ogilvy & Mather Advertising, Inc., NY: March, 1981- December, 1984. Executive Secretary, Associated Aviation Underwriters, NY: September, 1979 - August, 1981. Executive Secretary, Insurance Company of North America, NY: July, 1973- August, 1979. 38. As a result of the PMSD approving its charter, PMCS became eligible for funding from federal, state and local sources. a. The school's primary funding source was the PMSD. b. Revenues received by the PMCS were primarily the result of reimbursements received from the PMSD based on PMCS student enrollment numbers. 39. Financial accounts of the PMCS are annually audited by the accounting firm ParenteBeard, LLC, 220 Regent Court, Suite C, State College, PA 16801. a. Prior to the audit covering the period ending June 30, 2009, ParenteBeard, LLC operated under the business name Parente Randolph. 40. The payments made by the PMCS to the STC for the rental payments and assorted expenses were deposited into a business checking account [account number redacted] that the STC maintained at First National Bank of Palmerton. a. [Authorized signatories on the account included Dennis and Gricel Bloom.] 41. Dennis Bloom, in his official capacity as CEO of the PMCS, was annually required to file a Statement of Financial Interests ( "SFI ") form containing information for the prior calendar year. a. Bloom was required to file an SFI for each year he held the CEO position and the year after leaving the position. b. Bloom served as CEO from calendar year 2003 through 2010. 42. Statements of Financial Interests forms on file with the PMCS [for Dennis Bloom for calendar years 2006, 2007, 2008, 2009, and 2010 were deficient.] a. Bloom left [blank] all sections of the SFI [filed for the 2007 calendar year]. b. Bloom ... was an officer, director and employee of Radium, Inc. 43. Dennis Bloom is the owner and CEO of an entity known as Radium, Inc. 44. Articles of Incorporation were filed for Radium, Inc. with the Pennsylvania Department of State on January 30, 2006. a. The Officers of the Corporation were identified as Dennis Bloom and Lonnard J. Blount. b. The Corporation's registered address was as follows: [address redacted] 1. This was the home address of Lonnard Blount. Bloom, 11 -001 -a e--� 45. Blount has a background in electrical engineering. a. Bloom's role was to serve as the Business Advisor. 46. In or around September of 2006, Lonnard Blount relinquished all ownership rights in Radium, Inc. a. Dennis Bloom assumed 100% ownership of Radium, Inc. in or about September 2006. 47. Dennis Bloom has had an ownership interest in Radium, Inc. from January 30, 2006, through the present. a. From December 2006 to the present, Dennis Bloom has been the sole owner and CEO of Radium, Inc. 48. Dennis Bloom, [who was an officer and director of Radium, Inc.], never disclosed on SFIs filed forte 2006, 2007, 2008, 2009 and 2010 calendar years any office, directorship or employment... in Radium, Inc. a. In 2006, Dennis Bloom was an officer and part owner from January to about September 2006. b. In 2007, 2008, 2009 and 2010, Dennis Bloom was officer, CEO and 100% owner of Radium, Inc. C. Dennis Bloom admits that he filed deficient SFI(s) in regard to holding an office in any business for profit. Answer, at 3). 49. In 2007 and 2008 when [Bloom filed deficient SFIs,] he ... was serving as PMCS CEO. 50. Bloom never disclosed on SFIs filed for the 2007 and 2008 calendar years the receipt of income in excess of $1,300 from Radium, Inc. [and avers that he did not receive income in excess of $1,300 from Radium, Inc. Answer, at 26, paragraph 73).] 51. W -2 wage and tax records for Dennis Bloom document income Bloom received from the STC and TCA. a STC, $35,000.00 and $77,000.00 b. 2005 No W -2's provided. C. 2006 TCA, $6,018.57 STC, $5,000.00 d TCA, $12,117.90 52. On 212312007, Bloom withdrew $175,447.79 from a T. Rowe Price Latin America account he owns. a. The funds were deposited to an account he controlled. Bloom, 11 -001 P-a-g-e-l0 b. In 2007 and 2008, Bloom received monthly rental payments for $1,800.00 from Donald and Tarrence Lynch. 53. Bloom received income from the TCA of $6,018.57 in 2006 and $12,117.90 in 2007. 54. W -2 wage and tax records confirm compensation paid to Bloom [by the STC] of $5,0000 in 2006. 55. STC bank records for account [account number redacted] confirm [the following payments issued to Bloom [which Dennis Bloom asserts were loan payments an not income (Answer, at 27, paragraph 77 b)]: Date Amount Check Number Memo Payee 3/7/2006 $2,500.00 6759 Loan Repayment Dennis Bloom 4/5/2006 $14,000.00 6797 Loan Repayment Dennis Bloom 4/10/2006 $55,000.00 6798 Loan Repayment Dennis Bloom 4/20/2006 $20,000.00 6835 Loan Repayment Dennis Bloom 6/6/2006 $73,000.00 25736 Loan Repayment Dennis Bloom 7/10/2006 $25,000.00 25772 Loan Repayment Dennis Bloom 9/20/2006 $15,000.00 No number Debit Pastor Bloom 9/29/2006 $5,000.00 No number Loan Repayment Dennis Bloom 10/23/2006 $5,000.00 6997 Loan Repayment Dennis Bloom 10/24/2006 $10,000.00 6998 Loan Repayment Dennis Bloom 11/15/2006 $18,000.00 26523 Loan Repayment Dennis Bloom 1217/2006 $10,000.00 No number Loan Repayment Dennis Bloom 2006 total $252,500.00 1/8/2007 $20,000.00 26618 Loan Repayment Dennis Bloom 6/14/2007 $100,000.00 26948 Loan Repayment Dennis Bloom 9/26/2007 $20,000.00 25191 Loan Repayment Dennis Bloom 12/5/2007 $25,000 25315 Loan Repayment Dennis Bloom 12/17/2007 $10,000.00 No number Loan Repayment Dennis Bloom 2007 total $175,000.00 1/7/2008 $50,000.00 No number Loan Repayment Dennis Bloom 2/6/2008 $25,000.00 25484 Loan Repayment Dennis Bloom 3/3/2008 $140,000.00 30010 Loan Repayment Dennis Bloom 4/18/2008 $25,000.00 No number Repay Loan Cash 12/26/2008 $20,000.00 No number Dennis Bloom 12/26/2008 $6,000.00 No number Dennis Bloom 2008 total $266,000.00 2/20/2009 $39,500.00 621 Dennis Bloom 7/15/2009 $45,000.00 31212 Dennis Bloom 2009 total $84,500.00 56. W -2 wage and tax statements on file with the PMCS detail the following annual Bloom, 11 -001 'image 11 wages paid to Dennis Bloom for tax years 2006 through 2011: a. 2011: $ 89,307.66 b. 2010: $146,828.45 C. 2009: $137,213.40 d. 2008: $143,230.70 e. 2007: $147,472.26 f. 2006: $107,993.48 57. Dennis Bloom failed to disclose the Tobyhanna Impact Athletic Center ( "TIAC ") as a direct/indirect source of income on an SFI he filed for the 2008 calendar year, [and Dennis Bloom avers that no such disclosure was required Answer, at 28, paragraph 80 a)]. 58. [Both Dennis Bloom's position as CEO of PMCS and Gricel Bloom's position as Assistant CEO of PMCS] were full time including salary and fringe benefits. a. Dennis Bloom continued to serve as CEO until his resignation effective December 10, 2010. b. Gricel Bloom continued as Assistant CEO until her resignation effective on or about September 2009. 59. On November 23, 2009, during proceedings to revoke the PMCS's charter, Dennis Bloom [provided the following testimony under oath]: a. Page 334, lines 3 -19 Q. And this is what was provided to your attorney to provide to the district in terms of your qualifications to be CEO of the charter school, correct? A. I didn't need the other qualifications to get it. Q. To get CEO status, is that what you're saying? A. Yes. Q. And that's because there wasn't a formal interview process, was there? A. For doing what? Q. To become CEO of the charier school. A. We started the charter school. Q. Right. You never applied for the CEO position. A. No, it was just something you did. Q. And, likewise, your wife never for formally applied for her position, correct? A. Something you did. 60. Records of the PMCS include two (2) job descriptions for Bloom's position of CEO; one undated and another dated May 13, 2004. a. The undated position description for the CEO identifies the position as a leadership position, reporting to the Board of Trustees with a broad range of responsibilities that directly affect the success of the organization including school finance, organizational management, communication, personnel, student, auxiliary services, properties, financial & Business, personal and professional categories. School Finance: • Manage the financial system of the organization, including receipt of revenues, management of funds, bookkeeping, payroll and expenditure of Bloom, 11 -001 P-a-g-e-12 funds. • Oversee a staff that includes a Facilities Operations Manager, Finance Manager, a Project Coordinator, and manage the organization's relationships with outside financial agencies and the organization's auditor and treasurer. • Serve as a non - voting member of the Board of Trustees. • Serve as the staff liaison (to the) Board's Finance and Audit Committees. • Manage the organization's annual audit process • Manage the organization's human resources and compensation systems, including employee policies, health benefit plan, and retirement benefit plan. • Manage the organization's information and technology systems. • Manage the organization's contracts, including leases and employment contracts. • Develop and analyze long -term financial models for the organization. Organizational Management: • Serve as the chairperson of the administrative team. • Work closely and effectively with the Board of Trustees to handle privileged information. • Delegate responsibility and authority to carry out programs to subordinates. • Report to the Board on various areas of school organization. • Correlate reports and facts making the school accountable for the programs of the District. • Develop the leadership of others as demonstrated by upward mobility of staff and completion of degrees. Communication: • Keep the public informed of the status of the schools. • Conduct meetings of school personnel, as necessary, for the discussion of how to improve the school. • Communicates to all staff, directly or through delegation, actions of the Board relating to personnel matters and receives from employees communications to be made to the Board. • Confers as appropriate with professional and [ay groups concerning the school program and transmits suggestions to the Board and others. Personnel: • Will implement the redevelopment of staff job descriptions • Contribute to the development of individuals by being directly involved in in- service programs. * Will carry out personal evaluations on those individuals who report to the Superintendent on a timely basis. • Will participate as an advisor to collective meet and confer items. • Will be available to staff members who have problems that cannot be resolved at a lower level. • Will develop programs and procedures that will result in creative solutions to ongoing problems. Students: • Will encourage strong attendance policies and development of attendance through administration. • Will observe student behavior reports and become involved in serious discipline matters to insure fairness and due process. • Will encourage human relations work in the area of student affairs. • Keep close check on not only number of student suspensions, expulsions, but also the process that is used. Bloom, 11 -001 Page 13 Auxiliary Services: • Development of improved food services. • Continued observation of the high standards of custodial services. • Awareness of and concern for in the area of health care services. Properties: • Review the inventories, replacement records on a timely basis. • Observe the community use of facilities. • Safeguard facilities by close observation and recommendation of changes. Financial & Business: • To observe financial records and study the audits and prepare recommendations. To participate in the budget building and encourage a broad range of participation in the development process. • Estimate budget needs in relationship to the Board and long range needs of the District. • To evaluate the Assistant C.E.O. Personal: • Continue to hold ethics high, regardless of the behavior of others. Professional• • Attend professional conferences, workshops, and seminars on a timely basis in those areas to aid school district. • Be active in professional organizations and committees. 61. (There was a) job description [dated May 13, 2004,] for Bloom as PMCS Chief Executive Officer.... 62. Terms of Bloom's employment as CEO of the PMCS are outlined in employment contracts. a. Board of Trustee members were generally inexperienced in charter school operations ... and approved contracts submitted to them by Bloom. b. The most recent contract for Bloom as CEO for the PMCS occurred in or about July 2006. 63. Around June 2006, Dennis Bloom, CEO, and John Severs, Principal of the PMCS, discussed terms and conditions for an employment agreement for Bloom's position of CEO. a. Severs was a subordinate employee to Dennis Bloom. b. Bloom sought a compensation package similar to that of the Superintendent of the PMSD. G. Bloom and Severs [discussed] Bloom's compensation as CEO .... 64. Records of the PMSD include two (2) contracts for Superintendent of Schools covering the periods July 1, 2005, to June 30, 2010, and July 1, 2010, to June 30, 2015, 65. Dennis Bloom's employment contract signed and dated July 1, 2006, was the offical CEO contract submitted as part of the 2009 official proceedings to revoke the PMCS charter. Bloom, 11 -001 X14 a. In 2009, the PMSD instituted proceedings to revoke the charter of the PMCS. b. This contract was admitted as School District Exhibit #17 in that matter. C. No other employment contracts for Dennis Bloom covering the period July 1, 2006 - June 30, 2011, were introduced by either the PMSD or PMCS. d. The only contract Severs as Principal of PMCS and a subordinate employee of Bloom assisted with was the contract dated July 1, 2006. 66. [Dennis Bloom's employment contract for the CEO position dated July 1, 2006] specifies Dennis Bloom, [but] the contract language refers to the Assistant CEO duties and responsibilities. a. Some of the duties stated in Dennis Bloom's employment contract for the CEO position dated July 1, 2 06] are identical to the duties in the Assistant CEO employment agreement and stated incorrectly as they relate to the CEO position. 67. The second employment contract on file with the PMCS for Dennis Bloom's position as CEO, covering the period July 1, 2006, to June 30, 2011, was dated [July 2006]. a. The contract lists signatures purporting to be Michelle Dezonie, President, and Dennis Bloom. b. This contract refers to the position as CEO. 68. Minutes from the PMCS Board of Trustees meeting held on July 26, 2006, included Board approval of employment contracts /bonuses by 6 -0 vote with one member absent. a. Present: Michelle Dezonie, Carlos Ramos, Marisela Quinteras, June Kramer, Lisa Bansa, Bess Hamlet. Absent: Dawn Siler b. Dennis Bloom was also present as CEO and non - voting member of the Board. C. Minutes do not reflect the identities of individual employment contracts approved. d. Both Dennis Bloom and Gricel Bloom had employment contracts dated [July 2006]. 69. Bloom terminated his employment with the PMCS effective December 10, 2010. 70. Gricel Bloom was married to Dennis Bloom throughout her employment as the Assistant CEO [of the PMCS]. a. [The position of Assistant CEO of the PMCS] was never advertised. b. No other candidates were interviewed or considered. 71. Prior to July 26, 2006, all decisions regarding the terms and compensation of Gricel Bloom's employment were made by Dennis Bloom in his official capacity as CEO. 72. [During the 2009 Charter revocation hearing, Dennis Bloom testified as follows Bloom, 11 -001 P-a-g-e-15 regarding the hiring of his wife as the PMCS Assistant CEO]: Line: 10 Q And that's because there wasn't a formal 11 interview process, was there? 12 A For doing what? 13 Q To become CEO of the charter school. 14 A We started the charter school. 15 Q Right. You never applied for the CEO position. 16. A No, it was just something you did. 17 Q And, likewise, your wife never for formally 18 applied for her position, correct? 19 A Something you did. 73. Gricel Bloom's employment contract as Assistant CEO covered the period July 1, 2007 (2006) through June 30, 2011, to be renewed for an additional four (4) year term contingent upon renewal of the charter. a. The agreement is dated July 1, 2006, and signed by Michelle Dezonie and Gricel Bloom with a date of July 26, 2006. b. Duties and responsibilities for the Assistant CEO position were as follows: Duties and res onsibilities- T%e ssistant Chief Executive Officer is a leadership position, reporting to the Board of Trustees, with a broad range of responsibilities that directly affect the success of the organization: a. School Finance: Assistant Business Manager, Assistant Purchasing Supervisor /Agent. b. Organizational Management: Asst. CEO. C. Communication: Director of Public Relations, Assistant. d. Personnel: Access Coordinator, Assistant, e. Student: Asst. CEO /Director of Transportation. f. Auxiliary Services: Assistant Director of Support Services /Access Coordinator/Technology Coordinator (grants). g. Properties: Director of the facility /Property Management/Asset Manager. h. Financial and Business: Asst. CEO/Asst. Business Manager. j. Professional: Asst. CEO. Bloom, 11 -001 X16 C. Evaluation: The evaluation of the Assistant Chief Executive Officer will be based upon the completion of the Duties and Responsibilities as listed above. The evaluation will be the greatest component in calculating the salary and bonus of the Assistant C.E.O. d. Compensation: The salary of the Assistant Chief Executive Officer will be based upon the position titles and completion of assigned duties. The bonus will be contingent upon completion of the Duties and Responsibilities and the following: Completion of all state requirements; 2. Assist the Principal in increasing test scores to the level of meeting the AYP requirement under N.C.L.B.; 3. Assist the CEO as liaison between the Board and the church to ensure the completion of the building project for school, 2007- 2008; 4. Assist the CEO in the completing he duties assigned by the Board as a liaison between the Board and the church; 5. Attending the statewide charter school meeting (annually); 6. Meeting and maintaining the conditions of re- authorization. e. Vacation: The Assistant CEO is entitled to 30 days vacation, non - accumulated time, and such leave the Board deems necessary. f. Administrative Agreement: The CEO, the Assistant CEO and the Principal acting as an `administrative unit' have agreed with the Board of Trustees to the following: a. Administrators will receive 'comp. time' of 10 days rather than a monetary settlement for hours worked over 160 hours pursuant to F.L.S.A. Fair Labor Standards Act). All such time must be used before sick/personal time or vacation time. All `comp. time` will end on June 30th of each academic school year whether or not there is time remaining. b. Administrators will receive their dailyy rate for unused sick/personal time and vacation time by August 15'h. C. Administrators will receive 12 days per year designated as sick/personal, non - accumulated time. g. Travel: The Board of Trustees will reimburse travel at the rate stated by the I.R.S. 74. On July 26, 2006, the PMCS Board of Trustees approved employment Bloom, 11 -001 '17 contracts /bonuses for unspecified employees by 6 -0 vote with one member absent. a. Gricel Bloom's employment contract signed by her and PMCS Board President Michelle Dezonie with a date of July 26, 2006, was one of the unspecified employment contracts approved. b. As CEO, Bloom was a non - voting member of the Board and participated in this meeting. Both Bloom's and Gricel Bloom's contract contained similar language. C. Gricel Bloom's employment contract as Assistant CEO was approved by the PMCS Board of Trustees at the same time as Bloom's CEO contract was approved. 75. On or before July 1, 2006, Dennis Bloom, in his official capacity as PMCS CEO, submitted an undated memo to the PMCS Board of Trustees requesting raises for himself, Gricel Bloom and John Severs for the fiscal year beginning July 1, 2006. Bloom's memo to the Board of Trustees read as follows: a. I hereby recommend the following raises to be considered and executed for the coming fiscal budget year of July 1, 2006. Mrs. Bloom to be brought up from $60,000.00 to $69,457.50 minimum due to that she was overlooked for the last three years regarding increases and at 5% minimum for each year missed $69,457.50 would bring her up to at least a bare minimum raise. Mr. John Severs to be brought up from $72,000.00 to $85,000.00, the average salary in Pennsylvania for a principal of High School or Elementary. Mr. Severs has been here for the last four months and has shown himself to be a valuable asset to the future of the school. Rev. Dennis Bloom to be brought up from $85,000.00 to $98,398.13 minimum due to the fact he was overlooked for the last three years regarding increases and at a 5% minimum for each year missed $98,398.13 would bring him up at least to the bare minimum raise. I ask the Board to consider these raises and confirm at least the bare minimum. Any back pay not received because of the overlooking is up to the Board to approve payment. b. The salary increase that had been requested by Bloom for John Severs was at 5 %. C. Dennis Bloom admits that on occasion he made recommendations to the Board of Trustees of PMCS for pay increases, and he asserts that "this endeavor is part of the responsibilities of a CEO." Answer, at 3). d. Dennis Bloom admits: "[O]ne of the responsibilities of an executive officer is to make recommendations to a Board of Trustees or Board of Directors as to compensation executives should receive...." (Answer, at 35, paragraph 105.) 76. Undated documents authorizing increases for the CEO and Assistant CEO include signatures or signature stamps for the following Board Members: Bess Hamlet, Marisela Quinteras, Carlos Ramos, Michelle Dezonie and Dawn Siler. a. The undated documents set a salary for the CEO at $110,000.00 and the Bloom, 11 -001 X18 Assistant CEO at $69,457.50. 77. The Board of Trustees approved a salary increase from $60,000.00 to $69,457.50 based on the recommendations made by Dennis Bloom, CEO, and husband of Gricel Bloom. 78. W -2 wage and tax records on file with the PMCS reflect the following reported income received by Gricel Bloom from 2006 through 2009: a. 2009: $102,307.75* b. 2008: $86,732.79 C. 2007: $75,859.37 d. 2006: $67,307.82 *In 2009 Gricel Bloom received vacation and sick time payments from the PMCS. 79. Gricel Bloom's base salary remained $69,457.50 until her resignation from the [PMCS] in 2009. a. The total of the raise over three years was $28,372.50. 80. The PMCS did not have a formal policy regarding the hiring of part -time employees. 81. Priscilla Bloom worked in a clerical position from approximately June 2006 through July 2007. 82. Mitchell Bloom worked in a maintenance capacity and [as a] technology assistant from approximately November 2006 to May 2008. 83. Minutes from the PMCS Board of Trustees meetings held on November 1, 2006, and June 6, 2007, include [the following]: a. November 1, 2006: "Part-time employment of Priscilla Bloom retroactive to June and Mitchell Bloom retroactive to October — both approved Yea 5 -- Nay 0" Present: Michelle Dezonie, Carlos Ramos, Lisa Bansa, Marisela Quinteras, Bess Hamlet Absent: Brenda Nieves b. June 6, 2007: "New hire: Technology Assistant, Mitchell Bloom — Approved Yea 6 — Nay 0." (Only 5 members present). Present: Michelle Dezonie, Carlos Ramos, Lisa Bansa, Nicole Rodney, Maria Torres Absent: Marisela Quinteras, Adeline Casey C. Priscilla Bloom's and Mitchell Bloom's hiring was recommended to the Board of Trustees by Dennis Bloom as CEO and non - voting Board member. Bloom, 11 -001 Tage 19 84. Dennis Bloom admits that he recommended the hiring of his children for positions with the PMCS (Answer, at 3). 85. Priscilla Bloom provided receptionist/clerical functions for the PMCS. 86. Mitchell Bloom provided maintenance and other duties for the, PMCS. 87. Dennis Bloom terminated the employment of Mitchell Bloom over poor job performance issues. a. Mitchell Bloom returned to work at the PMCS in 2011. 88. [The] Transcript [of Dennis Bloom's sworn testimony provided on November 23, 2009, during the Charter revocation hearing, includes the following: Line: Pg.410 7 Q And at some point in time not only was your 8 wife employed by the school but your son, Mitchell, was 9 correct? 10 A Oh, yes. 11 Q And not only your son, but your daughter was 12 also employed by the school, wasn't she? 13 A Of course. 14 Q Of course. And why do you say of course, sir? 15 A Why not? Paul Kelly's daughter works in the 16 school district, she's a teacher, and Arnold, assistant 17 superintendent, his daughter is working. Why can't 18 daughters work in schools? 19 Q And what qualifications did your daughter 20 Priscilla have at the time she was working for the school? 21 A What qualification do you need to answer the 22 phone. 23 Q She was a receptionist. 24 A Besides cleaning, maintenance, things like 25 that. Line: Pg.411 Bloom, 11 -001 ap�0 1 Q She was cleaning, maintenance, and 2 receptionist. Anything else? 3 A We hire many girls, many children each year. 4 Q And you also hired your son, Mitchell, correct? 5 A Along with other children from school, of 6 course. 7 Q Your daughter was working part -time because she 8 was a student at the time she worked for the charter school, 9 right? 10 A Probably. 89. W -2 wage and tax records on file with the PMCS include the following reported income received by Priscilla Bloom: a. 2007: $11,109.60. 2006: $ 6,930.00. b. Total received: $18,039.60. 90. W -2 wage and tax records on file with the PMCS include the following reported income received by Mitchell Bloom: a. 2011: $6,543.75 2010: None 2009: None 2008: $3,100.00 2007: $4,882.00 2006: $1,126.13 b. Total received: $15,651.88. 91. Beginning in or about 2006, the Board of Trustees of the PMCS discussed expanding the size of the charter school. a. As a non - voting Member of the Board, Bloom participated in those discussions. 1. Bloom was in favor of the expansion. b. The constructionlexpansion project included but was not limited to additional classrooms, a gymnasium and parking area. 92. Beginning in or about April 5, 2006, Bloom began advising the PMCS Board of Trustees of the status of the expansion project and cost protections. 93. Minutes from the PMCS Board of Trustees meeting held on April 5, 2006, include the following report from Bloom, as CEO regarding construction projects: Bloom, 11 -001 a_2 1 a. "The CEO gave a brief but thorough update on the athletic field and its progress. He indicated that the field would be covered with turf builder and stone so as to enhance playing condition and eliminate wet conditions underneath the surface of the ground. He also stated that by going through the state bidding process an appreciable amount of money will be saved because no other bids are needed. He also gave an update on the building. He stated that the total cost would be in the neighborhood of 3.7 million dollars. The church would be responsible for the mortgage of the external building and the school would complete internal based on a Lease Hold Improvement Agreement. However, the details have not been totally finalized." 94. At the time the PMCS was considering expansion, the PMCS had leases for space with the STC. a. A lease for space was entered into by PMCS with STC on or about June 5, 2003. b. Amendments to the leases were approved on June 25, 2004, and November 3, 2005. 95. A Lease Amendment Agreement dated August 1, 2006, amended the lease amendment dated June 25, 2004, and the original lease dated June 5, 2003, including provisions for rent increases as a result of the expansionlrenovations. a. This lease amendment was signed by Luddie Chatt, President, Shawnee Tabernacle Church and Michelle Dezonie, President, PMCS on July 26, 2006. 96. Bloom, as CEO, was responsible for managing all leases involving the PMCS. 97. Minutes from the PMCS Board of Trustees meeting held on July 26, 2006, include Board action taken to approve the lease agreement. a. Minutes reflect the motion to approve the lease passed by a 6 -0 margin with one member (Dawn Siler) absent. b. PMCS Board Members voting in favor for approval of the lease were: Michelle Dezonie, Carlos Ramos, Marisela Qumteras, June Kramer, Lisa Bansa, Bess Hamlet. G. Bloom was present. 1. Bloom was a non - voting member of the Board. d. Bloom denies that he simply recommended approval of the lease agreement, averring: "To the contrary, [Bloom] advised that if the leases had been approved by counsel for the Charter School, then they should be satisfactory.' Answer, at 41, paragraph 129 d. 98. On January 3, 2007, a ground lease was executed for a parcel of land located on Park Drag for a five -year period at a minimal annual rate of $1.00. a. This lease is signed by Luddie Chatt on behalf of the Lessor (STC) on February 7, 2007, and Michelle Dezonie on behalf of the lessee (PMCS). 1. Dezonie was the PMCS Board President at the time. Bloom, 11 -001 a�22 b. This ground lease was commonly referred to as the Parking Lot Lease. 99. Bloom served as the liaison between the PMCS Board of Trustees and the STC. a. Bloom, as the Pastor of the STC, was the primary STC representative involved in the expansion /renovation project. 100. As Pastor of the STC, Bloom was the church representative to secure financing for the expansion. a. Without leases from PMCS, funding for the project would not be approved. b. Rent from PMCS was the STC's primary source of repayment of any loans. 101. Funding for the expansion project was obtained by Bloom as Pastor of the STC through construction loans. a. These construction loans were to be repaid based on increased rental payments the PMCS would pay to the STC. 102. On July 9, 2007, a Master Lease Agreement between STC and PMCS was executed. a. This lease was signed by Luddie Chatt, President, STC and Michelle Dezonie, President of PMCS on July 9, 2007. 103. [The STC obtained] a construction loan from Sovereign Bank for the expansion /renovations of [its facility used by] the PMCS. a. The load's purpose also included refinancing of existing debt of the STC. 104. Sovereign Bank's review committee approved the loan on or about June 7, 2007. 105. On June 11, 2007, Sovereign Bank approved a $500,000.00 Bridge Loan for the STC to begin construction. 106. On June 20, 2007, Sovereign Bank issued a loan commitment letter to STC approving the loan. a. The letter was addressed to Bloom, as Pastor of the STC. b. The commitment document was signed by Bloom as accepting the terms. 107. [Sovereign Bank loan documents related to the STC construction do not identify a General Contractor.] 108. A pre- closingg agenda for the loan identified all of the parties involved including bank officials, architects, borrower, attorneys, title company and PMCS. a. The closing agenda for the STC loan reflected the contractor was "to be determined." 109. Settlement of the loan occurred on July 18, 2007. a. All settlement documents were signed by Bloom [on behalf of the STC]. 110. STC's primary repayment source of the loan from Sovereign was to be the cash flow from the PMCS as a result of increased rents. Bloom, 11 -001 age--23 111. Loan advance /payment requests needed to be sent to Sovereign Bank to release funds to be paid to contractors. 112. Bloom, as CEO of the PMCS, had an office at 16 Carriage Square, Tobyhanna, PA. a. The PMCS was not reimbursed by the STC or Radium, Inc. for the non - PMCS activities conducted by Bloom from this office, [and Bloom avers that no reimbursement was due]. 113. The initial payment made by Bloom [from the Sovereign Bank construction account] was check no. 101 payable to the STC in the amount of $415,000. a. The authorized signatory on the check was Dennis Bloom. 114. The second payment made by Bloom [from the Sovereign Bank construction account] occurred on July 10, 2007, in the amount of $84,000 made payable to Radium, Inc. 115. Radium, Inc. is the company solely owned and operated by Dennis Bloom from at least September 2006 to the present. 116. Bloom ... continued to provide the PMCS Board of Trustees with construction updates at ... Board meetings. 117. Bank statements for the STC Church account no. [account number redacted] confirm the deposit of $415,000 for Bridge Loan on June 12, 2007. a. Between June 12, 2007, and June 13, 2007, checks were issued to Dennis Bloom and Radium, Inc. b. Checks were issued to Bloom and Radium, Inc. as follows: Date of De osit Amount a ee 06/12/07 $100,000 Dennis Bloom 06113/07 $100,000 Radium, Inc. C. A third check was issued to Radium, Inc. from this account on July 5, 2007, in the amount of $12,000. 118. Radium, Inc. has maintained a business checking account with PNC Bank to account number [account number redacted] since or about February 2006. a. The initial signature card for the account was signed by Bloom on February 27, 2006, as Radium, Inc., Vice President. b. Isabel L. Blount, spouse of Lonnard Blount, was added as an additional signatory to the account on March 7, 2006. C. Lonnard Blount was added as a signatory on March 24, 2006. d. On March 24, 2007, the signature card forthe accountwas changed solelyto Dennis Bloom. 1. Dennis Bloom is listed as CEO. 2. Radium Corp. is listed as the entity legal title with a TIN [number redacted]. Bloom, 11 -001 ag e__24 3. The address listed for Bloom is [address redacted]. 4. Radium's address is listed as [address redacted]. e. The account was opened with an initial $100 deposit on 0212712006. 1. Lonnard Blount made a deposit of $1,200 on April 8, 2006, which was labeled "Radium investment." 119. The only business transacted by Radium during the time frame of January 2006 to August 2006 occurred on August 9, 2006, when Blount was affiliated with the company. a. On 0810912006, a payment of $2,188.00 was issued to Radium by County College of Morris, Randolph, NJ. b. No other deposits were made to this account until or about April 27, 2007. 1. Bloom deposited a personal check from account no. [account number redacted] at FNB Palmerton in the amount of $40,000. 2. The memo portion on the check payable to Radium, Inc. indicated the purpose of the payment was 10% deposit on Bloom's residence. C. No payments were ever made from Radium, Inc. to either Isabel or Lonnard Blount. 120. [STC made payments to Radium, Inc.] beginning on or about June 4, 2007, as outlined below,1which payments Dennis Bloom avers were for the payment of other contractors and not for Radium's use]: a Date of e osit PaXee Amount Memo 06/04/07 Radium, Inc. 2,000 S.T. addition mason arc itect 06713/07 Radium, Inc. $100,000 enera contractin 07/20/07 Radium, Inc. 2,000 General contracting 09710107 Ra ium, Inc. 50,000 Repayloan 03/15/08 Radium, Inc. 5,000 General contracting 05/02/08 Radium, Inc. $ 12,000 General contracting $181,000 121. Other deposits related to the additional renovations to the PMCS made to the Radium, Inc. account was an $84,000 deposit made by Bloom from STC's Sovereign Construction loan account no. [account number redacted]. uate of ue osit 1 ra ee I Amount I lvlemo 07 07 I Radium, Inc. 84,000 ise construction steel The Sovereign Bank check was signed by Dennis Bloom. 122. [July 18, 2007, was the settlement date] of the STC's loan with Sovereign. a. Shalako Simon is not documented on any corporate documents as an owner or officer of Radium, Inc. 1. Dennis Bloom was and continues to be the sole owner of Radium, Inc. Bloom, 11 -001 aP�5 2. Shalako Simon is the son -in -law of Dennis Bloom. 123. The PMCS opened a charter school expansion account, account number [account number redacted] at the First National Bank of Palmerton. a. Bloom was one of the signatories for this account. 124. Bloom was involved in all aspects of the process [of the renovationladdition building project for the PMCS,] including negotiating leases as CEO and Pastor, determining scope of the project, applying for loans, identifying subcontractors and advising the Board of Trustees. a. During 2006 when the PMCS Board of Trustees discussed an expansion project Bloom participated in Board meetings as the non - voting CEO. b. [Bloom made recommendations to the PMCS Board of Trustees regarding] aspects of the PMCS operation. G. Bloom, as CEO of the PMCS, was the liaison with the STC where he served as Pastor.... 125. The Tobyhanna Impact Athletic Center ( "TIAC ") [used] 16 Carriage Square, Tobyhanna, PA [as an address]. a. This was the same physical location as the PMCS and STC. 126. Articles of Incorporation on file with the Pennsylvania Department of State include corporate documents for the TIAC. a. Entity number 3786383 was assigned by the Department of State on February 4, 2008. b. Priscilla Bloom is listed as the corporate President. Priscilla Bloom was eighteen years old atthetime ofthe incorporation. C. Priscilla Bloom is Dennis & Gricel Bloom's daughter. 127. The TIAC did not pay the PMCS or STC for the use of the facilities leased by the PMCS, [and Dennis Bloom avers that the STC acquiesced to the use of the facilities during times when it had the right to occupy same]. 128. The TIAC had use of the gymnasium facilities during evening and weekend hours. a. The PMCS paid for the interior components of the gymnasium. 129. The TIAC did not seek or receive approval from the PMCS Board of Trustees to use school owned equipment as part of its business activities, [and Dennis Bloom avers that TIAC did not use school owned equipment or have any business activities]. 130. The TIAC circulated an advertising flyer announcing its grand opening on February 2, 2008. 131. Priscilla Bloom had no experience or education in the types of activities listed on TIAC's flyer. 132. On March 19, 2008, a business checking account in the name of the Tobyhanna Bloom, 11 -001 ap ge 26 Impact Athletic Center, 16 Carriage Square, Tobyhanna, PA, 18466 was opened at the First National Bank of Palmerton. a. Authorized signers on this account were Dennis Bloom, Gricel Bloom and Priscilla Bloom. 133. Dennis Bloom did not list the TIAC as a source of income in excess of $1,300.00 on his SFI form filed for the 2008 calendar year, [and Dennis Bloom asserts that he did not receive income in excess of $1,300.00 from the TIAC Answer, at 62, paragraph 184)]. 134. Between March 19, 2008, and September 21, 2009, six (6) checks were issued from the business account. a. Of these six (6) checks, two (2) were signed by Dennis Bloom, two (2) were signed by Priscilla Bloom and two (2) were signed by both Dennis Bloom and Priscilla Bloom. b. Gricel Bloom did not sign any checks issued from this account. 135. TIAC business checking account records reflect the following checks were issued including the payee and signatory: Ch # Date Payee Amount Signato NIA O529/08 US Treasury $75T-0-0 Priscilla Bloom NIA 06/29/08 Jose Ramirez $1,125.00 Dennis Bloom NIA 07/28/08 Cheryl Boyd $1,360.00 Priscilla Bloom 487 11/25/08 Cash $4,000.00 Dennis Bloom Debit 09/17/09 AT &T Care $344.95 NIA NIA 09/11/09 Michelle Dezonie $665.00 Dennis Bloom & Priscilla Bloom N/A 09/18/09 Michelle Dezonie $665.00 Dennis Bloom & Priscilla Bloom 136. On November 25, 2008, Dennis Bloom issued check number 487 in the amount of $4,000.00 from this account payable to cash. a. Bloom signed the check as the authorized signatory. b. This check cleared the account on November 26, 2008. C. On November 25, 2008, Bloom made a $2,000.00 cash deposit to his personal account at FNB, Palmerton. 137. On June 26, 2009, Business Manager Loletta Robertson issued payments to Gricel and Dennis Bloom from the PMCS payroll account as follows: Date of Check Check Number Amount Payee 6126/2009 17428 3,369.96 Dennis Bloom 6/26/2009 17429 $9,702.29 Dennis Bloom 6/26/2009 17430 $1,434.29 Gricel Bloom 6/26/2009 17431 $3,528.70 Gricel Bloom a. All four (4) payments were deposited into Dennis Bloom's personal checking account [account number redacted] maintained at First National Bank of Palmerton. 138, Gricel Bloom entered into an agreement with Prestige Motors, Inc. in Paramus, NJ Bloom, 11 -001 ap7 on July 6, 2009, to lease a 2009 Mercedes -B C3004W4 DR SDN (Vin # WDDGF81X79R082041). a. [The lease required] a $4,500 down payment. 139. On July 6, 2009, Dennis Bloom issued a payment to Prestige Mercedes Benz in the amount of $4,500.00 by Check # 223 from his regular checking account [account number redacted] maintained at First National Bank of Palmerton. 140. Between August 17, 2009, and November 22, 2010, Bloom received seven (7) payments totaling $4,950.00 from the PMCS General Fund for vehicle allowance. a. The $4,950.00 total was based on a monthly rate of $450.00. b. Payments were issued to Bloom on either a monthly or quarterly basis. 141. Bloom's receipt of the additional compensation was included as part of a working copy of "Parente Randolph's Report on the investigation of the Pocono Mountain Charter School's Financial Operations and Accounting Records" with a revision date of September 15, 2004. a. Parente Randolph later d /b /a ParenteBeard was the PMCS independent auditor. b. Page five, paragraph C: "Accounting Abnormalities /Unusual Transactions" found in part: "it is important to note, on approximately five occasions, the PMCS paid Reverend bloom's car lease payments; the payments were for approximately $700 for each payment. Currently the lease payments are paid by the Shawnee Tabernacle Church." C. Page six, paragraph D: "Management Oversight/internal Controls" states in part: "However, even the most thorough internal control policies and procedures can be overridden by management, but it important having the guidelines in place and throughout our investigation, we noted no management overrides or failures in performing these functions. However, it is important to note that Reverend Bloom is a central figure that has influence and control over the operations and could easily circumvent the internal controls that have been put into place. This is evidenced through the approvals for the car payments that now are being paid through the Shawnee Tabernacle Church." 142. Sometime after the renewal of the charter, the PMSD began to have operational concerns and the District directed its Solicitor, John Freund, conduct an inquiry into PMCS operations. a. Solicitor Freund reported his initial findings to the PMSD's Board of School Directors on May 21, 2008. 143. Minutes from the PMSD's May 21, 2008, Board Meeting include a report from Solicitor Freund regarding an inquiry into the PMCS. a. Minutes include the following recorded comments: "Attorney Freund indicated that the District has found evidence that the charter school has discriminated against students on the basis of intellectual ability and had improperly declassified students requiring special education. Attorney Freund also noted the District has evidence the charter school had failed to comply with Federal No Child Left Behind legislation by not developing a school improvement plan or notifying parents that the school has failed to Bloom, 11 -001 ap8 meet adequate yearly progress goals. Attorney Freund stated "The district believes the charter school has blurred the line between church and state." Attorney Freund presented a resolution that states the Board of Education has received information which creates a reasonable belief that the Charter School may have committed the aforementioned acts; therefore, a public hearing will be conducted on July 24, 2008 at 6:00 pm to determine whether or not the Charter Schools charter should be revoked by the Board of School Directors. Mr. Bockelman stated, "The district has every intention on hearing and holding a fair hearing." Present: Meg Dilger, William Forte, Jane Niering, Ricky Smith, Joseph Polinski, Henry Bockelman, John Davis, Leo Colgan, Michael Stern. 144. On May 21, 2008, the PMSD issued a Charter Revocation letter to the PMCS. 146. The PMSD held a ublic hearing on June 10, 2009, regarding the proposed revocation of the PMCS's charter. a. Fifteen additional hearings were held between September 15, 2009, and June 10, 2010. 146. Minutes from the PMSD's October 6, 2010, Board Meeting include the following information in the form of the Superintendent's Report relating to the revocation of the charter for the PMCS: a. "Mr. Bockelman advised that the Board will be making a motion to Accept AdJudication Recommendation as a result of the Pocono Mountain Charter School Revocation hearings. The hearings were in response to a Resolution adopted by the Pocono Mountain School Board on May 21, 2008, calling hearings to determine whether or not the Pocono Mountain Charter School's charter should be revoked." b. "Motion: to Accept Adjudication Recommendation as a Result of Pocono Mountain charter School Revocation Hearings as presented above by Ricky Smith, seconded by Meg Dilger. Motion carried unanimously 7-0." Present: Meg Dilger, William Forte, Ricky Smith, Joseph Polinski, Henry Bockelman, John Davis, Dorothy Sirolly Absent: Ed Mayotte, Michael Stern. 147. On October 6, 2010, the PMSD issued its adjudication in the matter involving the revocation of the Charter for the PMCS. 148. On or about February 21, 2012, the Charter School Review Board voted 6 to 1 to reconsider revoking the charter of the PMCS. a. The reconsideration was authorized following an audit report by the PA Auditor General, which cited more than $3 million in public money that had been paid to Bloom's STC and that taxpayers paid $900,000.00 toward the expansion. B. Testimony 149. Janet Shelton, Ph.D. ( "Dr. Shelton ") was one of the four founders of the PMCS. a. The other three founders of the PMCS were Dr. Shelton's husband, James Shelton, Respondent Bloom, and Respondent's wife, Gricel Bloom. Bloom, 11 -001 age--29 b. It was Respondent Bloom's idea to start a charter school at STC. C. Dr. Shelton wrote the charter for PMCS and served as principal of PMCS. d. PMCS opened in September of 2004. e. Dr. Shelton testified that Respondent Bloom hired Dr. Shelton and would have made to the PMCS Board any recommendation regarding Dr. Shelton's salary. f. One of Respondent Bloom's responsibilities as CEO of the PMCS was to make recommendations to the PMCS Board on executives' or administrators` salaries. g. The PMCS Board approved the hiring of teachers for the PMCS. h. Dr. Shelton testified that Respondent Bloom made the decisions on hiring other staff at the PMCS. Dr. Shelton testified that the PMCS Board would agree with anything Respondent Bloom wanted. During the entire time that Dr. Shelton was principal of the PMCS, her husband, James Shelton, was president of the PMCS Board of Trustees. k. Dr. Shelton terminated her employment with PMCS in February 2006. 150. James Shelton ( "Mr. Shelton ") was one of the founders of PMCS and served as President of the PMCS Board from 2003 until he was removed from the PMCS Board at the July 5, 2006, PMCS Board meeting (ID -27). a. The other three founders of PMCS were Dr. Shelton, Respondent Bloom, and Gricel Bloom. b. Respondent Bloom was CEO of PMCS and a nonvoting Member of the PMCS Board. C. Dr. Shelton wrote the charter for PMCS and served as the principal of PMCS. d. During the time period Mr. Shelton was President of the PMCS Board- - specifically, from 2003 to July 5, 2006, when he was removed from the PMCS Board, the PMCS Board held monthly meetings. e. All of the individuals who served on the PMCS Board as of the first PMCS Board meeting on May 30, 2003, were affiliated with STC. f. At the first meeting of the PMCS Board, which was held on May 30, 2003, the PMCS Board approved the lease contract between PMCS and STC for the school use for the term of the Charter. 1. Mr. Shelton make the motion to approve the lease. g. At the first meeting of the PMCS Board, which was held on May 30, 2003, the PMCS Board hired Respondent Bloom to be the CEO of PIVCS for a 3- year period with an option to renew. Bloom, 11 -001 a' ge-�o h. At the first meeting of the PMCS Board, which was held on May 30, 2003, the PMCS Board hired Dr. Shelton to be the principal of PMCS for a 3 -year period with an option to renew. 1. Mr. Shelton did not vote as to the hiring of his wife as PMCS principal. At the first meeting of the PMCS Board, which was held on May 30, 2003, the PMCS Board hired Gricel Bloom to be the Assistant Principal of PMCS for a 3 -year period with an option to renew. 1. Gricel Bloom was to report to Dr. Shelton in the chain of command. Mr. Shelton testified that the CEO of PMCS was at the top of the hierarchy over Dr. Shelton as principal. k. As Dr. Shelton`s supervisor, Respondent Bloom would make recommendations to the PMCS Board regarding any raises for her, and the PMCS Board would vote on it. 1. The fact that such a recommendation would be made would not necessarily mean that the PMCS Board would approve it. Mr. Shelton testified that during his time on the PMCS Board, "everything" was taken to the Board and the Board voted on it. m. The PMCS Board approved the compensation of all the administrators. n. The PMCS fiscal budget years were from July to June. o. In 2006, Mr. Shelton was opposed to a proposed pay raise for Gricel Bloom, and he wanted to get more increases for the PMCS staff /teachers. p. In 2006, Mr. Shelton was up for reelection as a PMCS Board Member. q. After opposing the proposed pay increase for Gricel Bloom, Mr. Shelton was voted off the PMCS Board. r. After being voted off the PMCS Board, Mr. Shelton did not maintain an affiliation with PMCS or STC. 151. Rebeka Jones is an employee of PNC Bank who identified and authenticated the following Investigative Division Exhibits as records regularly keppt in the course of business by PNC Bank: ID -38, ID -39, ID -40, ID -41, ID -42, ID -43, ID -44, ID -45, ID- 46, ID-46A, ID-47, 1D-48, ID-49, ID-50, ID-51, ID-52, ID-53, ID-54, ID-55, ID-56, ID- 57, ID -58, and ID -59. 152. Desmond L. Thompson ( "Mr. Thompson ") is an employee of Santander Bank, which bank purchased the majority stake of Sovereign Bank. a. Mr. Thompson identified and authenticated the following Investigative Division Exhibits as records regularly kept in the course of business by Santander Bank: ID -65, ID -66, D -67, and ID -68. 153. June Kramer ( "Ms. Kramer ") previously attended the STC and served on the PMCS Board. a. Ms. Kramer was a Member of the PMCS Board for part of 2006. Bloom, 11 -001 ag F-31 b. Dennis Bloom submitted a memo to the PMCS Board asking for an increase in salary for himself and for his wife, Gricel Bloom. 1. Dennis Bloom was Pastor of STC and CEO of PMCS. 2. Gricel Bloom was the Assistant CEO of PMCS. C. Ms. Kramer testified that she left the STC and the PMCS Board in 2006 because she observed Dennis Bloom telling another PMCS Board Member how to vote, and, when Ms. Kramer objected to that, he subsequently referred her to a scripture as a word from the Lord, which Ms. Kramer interpreted as telling her to keep her mouth closed /not go against authority. 154. Michelle Thomas - Dezonie ( "Ms. Thomas - Dezonie ") previously served as a Member and President of the PMCS Board and was employed by the PMCS as an Administrative Assistant to the CEO, Dennis Bloom. a. Ms. Thomas - Dezonie began serving as a PMCS Board Member on March 1, 2006 (R -3) and resigned from the PMCS Board around 2008. 1. By July 26, 2006, Ms. Thomas - Dezonie was President of the PMCS Board. 2. The prior President, Mr. Shelton, was not re- elected to the PMCS Board. b. Ms. Thomas - Dezonie's employment with PMCS began in 2008 and ended June 25, 2012. C. Dennis Bloom's wife, Gricel Bloom, was employed by the PMCS as the Assistant CEO. d. Most of the non - educational hirings at the PMCS went through Dennis Bloom. e. Dennis Bloom's children, Priscilla and Mitchell Bloom, worked for PMCS in capacities (i.e., sitting at the front desk, cleaning bathrooms) that did not ordinarily go before the PMCS Board for hiring approval. 1. It was the policy of the PMCS to employ its students on a part -time basis. f. ID -29 consists of the minutes of the November 1, 2006, PMCS Board meeting. 1. At the November 1, 2006, PMCS Board meeting, the PMCS Board voted to approve the part -time employment of Priscilla Bloom retroactive to June and the part -time employment of Mitchell Bloom retroactive to October. 2. Ms. Thomas - Dezonie testified that the hiring of Priscilla Bloom and Mitchell Bloom probably came before the PMCS Board for approval due to the retroactivity. g. At some point in time, Mitchell Bloom was fired from his job with the PMCS; however, he was subsequently re -hired in June 2007. h. ID -30 consists of the minutes of the June 6, 2007, PMCS Board meeting. Bloom, 11 -001 a32 1. At the June 6, 2007, PMCS Board meeting, Mitchell Bloom was re- hired by PMCS as a Technology Assistant. At a PMCS Board meeting, Dennis Bloom asked the PMCS Board to give him, his wife, and the then - current principal a raise. 1. It was the responsibility of Dennis Bloom as CEO of the PMCS to recommend raises for the administrative staff that worked for him. (April 24, 2017, Tr., at 281). The memorandum that is in evidence as ID -23 was presented by Dennis Bloom as a proposal to the PMCS Board at a PMCS Board meeting. 1. The memorandum that is in evidence as ID -23 recommended that Gricel Bloom's salary be raised from $60,000.00 to $69,457.50, and that Dennis Bloom's salary be raised from $85,000.00 to $98,398.13 (see, Fact Finding 75 a). 2. The memorandum that is in evidence as ID -23 also requested thatthe principal, John Severs ( "Mr. Severs "), receive a salary increase from $72,000.00 to $85,000.00 (see, Fact Finding 75 a). 3. When Dennis Bloom presented to the PMCS Board the memorandum that is in evidence as ID -23, he stated that he and his wife had worked for a few years without a raise and he mentioned the work that Mr. Severs had done. 4. Respondent Bloom was asked to step out when the PMCS Board discussed this memorandum in executive session. k. At the time the memorandum that is in evidence as ID -23 was presented to the PMCS Board it did not have handwriting or highlights on it; Ms. Thomas - Dezonie testified that she believes the notations that currently appear on the memorandum were added by someone when the Board reviewed the memorandum in executive session. The handwriting on ID -23 was present when Ms. Thomas - Dezonie retrieved it from PMCS files. 2. The handwriting on ID -23 is not the handwriting of Ms. Thomas - Dezonie, Ms. Thomas - Dezonie testified that the PMCS Board took some time to research and consider the request for raises for Dennis Bloom, Gricel Bloom, and Mr. Severs. Ms. Thomas - Dezonie testified that work on this issue went on a daily basis. 2. Ms. Thomas - Dezonie testified that the proposed raises were considered by the PMCS Board during two meetings. 3. Ms. Thomas - Dezonie testified that she was not certain if the issue was discussed by the PMCS Board at a third meeting. M. ID -24 is a copy of a sign -in sheet by which the PMCS Board Members who signed the sheet approved a raise for Dennis Bloom as CEO to $110,000.00. Bloom, 11 -001 a�33 n. ID -25 is a copy of a sign -in sheet by which the PMCS Board Members who signed the sheet approved the raise for Gricel Bloom as Assistant CEO to $69,457.50. o. ID -26 is a copy of a revised Employment Agreement between Dennis Bloom and the PMCS dated July 1, 2006. The effective date of this Employment Agreement was July 1, 2006, 2. This Employment Agreement provided for Dennis Bloom to receive 80% oft the salary of the Superintendent of the PMSD. 3. Ms. Thomas - Dezonie testified that if the Superintendent of the PMSD would get a raise, Dennis Bloom would automatically receive a raise. 4. This Employment Agreement bears the signatures of Ms. Thomas - Dezonie and Dennis Bloom. P. ID -28 is a copy of an Employment Agreement between Gricel Bloom and the PMCS dated July 26, 2006. The effective date of this Employment Agreement was July 1, 2006. 2. This Employment Agreement did not list a salary for Gricel Bloom. 3. This Employment Agreement bears the signatures of Ms. Thomas - Dezonie and Gricel Bloom. q. At the PMCS Board Meeting on July 5, 2006, the PMCS Board approved Executive Salaries (ID -27). At the PMCS Board Meeting on July 26, 2006, the PMCS Board approved Employment Contracts /Bonuses (ID -27A). S. ID -33, ID -34, ID -35, ID -36, and ID -37 consist of Statements of Financial Interests of Dennis Bloom. The PMCS kept the original Statements of Financial Interests in the PMCS records. 2. The PMSD would make copies of whatever documents it needed. Ms. Thomas - Dezonie testified that she received from Dennis Bloom the checks that are in evidence as ID-38, ID -39, ID -40, ID -41, ID -42, ID -43, ID- 44, ID -45, ID -46, and ID -46A, which checks were drawn from a Radium, Inc. account. Ms. Thomas - Dezonie testified that she was a Member of the PMCS Board at the time she received these checks. 2. Ms. Thomas - Dezonie testified that she believed these checks were "love offerings," as she was a congregant of STC, was out of work at the time, and was doing volunteer work for the PMCS and STC. 3. In 2012 when Ms. Thomas - Dezonie made statements to State Ethics Commission investigator(s) about the love offering, she only mentioned doing volunteer work for the STC, not the PMCS. Bloom, 11 -001 age--34 4. Ms. Thomas - Dezonie testified that she never worked for Radium, Inc. 5. Ms. Thomas - Dezonie testified that at the time she was receiving these checks, she was not aware that Radium, Inc. was serving in some capacity as a general contractor for the expansion of the building in which the STC and PMCS operated. 6. Ms. Thomas - Dezonie testified that she did not know what Radium was, and that to her knowledge, STC was dealing with constructing the addition for PMCS. 7. Ms. Thomas - Dezonie testified that the PMCS Board voted for Dennis Bloom to handle contracting for acquiring things that the PMCS needed (such as lockers) for the addition for the PMCS. U. In addition to the checks that are in evidence as ID-38, ID -39, ID -40, ID -41, ID -42, ID -43, ID -44, ID -45, ID -46, and ID -46A, there are two other checks made payable to Michelle Dezonie that are drawn from Radium, Inc.'s business checking account with PNC Bank and are signed with the name Dennis Bloom, which checks are in evidence as R -4 and R -5. 154A. Daniel M. Bender ( "Mr. Bender ") is a Senior Investigator with the State Ethics Commission. a. Mr. Bender was involved in the Commission's investigation of Respondent Dennis Bloom. b. The salary increase that Gricel Bloom, as Assistant CEO of PMCS, received commencing July 1, 2006, resulted in her receiving a total of $28,372.50 of additional compensation over a three -year period from July 1, 2006, through June 30, 2009. 1. The salary increase that Gricel Bloom, as Assistant CEO of PMCS, received commencing July 1, 2006, was in the amount of $9,457.50 per year. C. Priscilla Bloom received wages from PMCS totaling $18,039.60, consisting of $6,930.00 received in 2006 and $11,109.60 received in 2007. d. Mitchell Bloom received wages from PMCS totaling $15,651.88, consisting of $1,126.13 received in 2006, $4,882.00 received in 2007, $3,100.00 received in 2008, and $6,543.75 received in 2011. 1. Of this amount, the $6,543.75 that Mitchell Bloom received from PMCS in 2011 is not part of the allegations in this case. 2. In 2011, Dennis Bloom was not the CEO of PMCS. 155. Robert Caruso ( "Mr. Caruso ") is the Executive Director of the State Ethics Commission. a. A complaint against Dennis Bloom was received at the State Ethics Commission. b. On January 4, 2011, the then - Executive Director of the State Ethics Commission authorized the initiation of a preliminary inquiry in this matter. Bloom, 11 -001 p g 85 C. On March 2, 2011, the then - Executive Director of the State Ethics Commission authorized the initiation of a full investigation in this matter. d. ID_g is a copy of a letter/Notice of Investigation dated March 2, 2011, from the then - Executive Director of the State Ethics Commission to Dennis Bloom, which outlined alleged violations of the Ethics Act and Sections of the Ethics Act involved in this case. 1. The March 2, 2011, letter/Notice of Investigation was sent by certified mail and was unclaimed. e. By letter dated April 8, 2011, Mr. Caruso, as the then - Deputy Executive Director of the State Ethics Commission, forwarded to Counsel for Respondent Dennis Bloom the March 2, 2011, letter /Notice of Investigation based upon Counsel's agreement to accept service of same on behalf of Dennis Bloom. f. On June 23, 2011, and September 27, 2011, the State Ethics Commission granted Applications of the Investigative Division for 90 -day extensions of the deadline for completing the investigation in this matter. g. ID -12 is a copy of a letter/Amended Notice of Investigation dated February 7, 2012, from the then - Executive Director of the State Ethics Commission to Dennis Bloom in care of his Counsel, which amended the allegations and identification of relevant Sections of the Ethics Act that had been previously outlined in the letter/Notice of Investigation dated March 2, 2011. 1. The letter /Amended Notice of Investigation dated February 7, 2012, which is in evidence as ID -12, was the first notice from the Investigative Division to Respondent Dennis Bloom that his Statements of Financial Interests were defective. h. The IetterlAmended Notice of Investigation dated February 7, 2012, erroneously referred to a prior letter of January 23, 2012, when no such letter had been issued. 1. By letters dated February 10, 2012 (ID -13), the then - Executive Director of the State Ethics Commission issued a corrected IetterlAmended Notice of Investigation to Dennis Bloom in care of his Counsel. i. ID -14, ID-15, ID -16, ID -17, ID -18, and 1D -18A through ID -18X are copies of letters issued by the Executive Director or Acting Executive Director of the State Ethics Commission to Respondent in care of Respondent's Counsel, notifying Respondent of the status of this matter. j. Dennis Bloom's duties as Pastor of STC included general management of all of the day -to -day activities of STC, and he had authority to execute m the name of STC bonds, deeds, mortgages, contracts, and other documents authorized by the Board of Directors. 1. These duties were similar to Dennis Bloom's duties as CEO of PMCS. k. In 2007 Sovereign Bank approved a loan to STC in the total amount of $3,900,000.00, of which $2.7 million was for renovations to STC property for PMCS. Part of the loan was to pay off an existing mortgage of STC. Bloom, 11 -001 a� e--36 2. The Promissory Note for the loan (ID-67) is dated July 18, 2007, and is signed by Dennis Bloom as Pastor of STC. 3. The Loan Agreement between STC and Sovereign Bank ID -68 is dated July 18, 2007, and is signed by Dennis Bloom on behalf of STC. 4. The Loan Agreement refers to Annual Reports and Quarterly Reports of PMCS. 5. In loaning the money to STC, Sovereign Bank needed assurance that PMCS was going to be operational, because repaying the loan was, in fart, dependent upon funds received in the form of rental payments rom PMCS to STC. 6. PMCS was not a signatory on any of the loan documents for the 2007 loan from Sovereign Bank to STC. 7. PMCS did not guarantee the payment of the loan to STC from Sovereign Bank. I. Mr. Caruso testified that to the best of his understanding, the entire $2.7 million that was borrowed by STC for the construction of the renovations at STC for PMCS was used for the construction of such renovations. M. The construction of the STC renovations began in approximately June or July of 2007, prior to the July 18, 2007, closing on the $3,900,000.00 loan from Sovereign Bank to STC. n. Before payments from the loan monies were distributed, backup bills had to be submitted to Sovereign Bank. 1. Waiver(s) of mechanic's liens also had to be submitted to Sovereign Bank. 2. The purpose of these requirements was to make the bank aware that the $2.7 million was being used for the construction of the renovations at STC for PMCS. o. Dennis Bloom was the incorporator and CEO and/or President of the corporation named "Radium, Inc." 1. Radium, Inc. had a bank account at PNC Bank. 2. Dennis Bloom had signature authority on the Radium, Inc. bank account at PNC Bank. p. STC paid to Radium, Inc. a total of $265,000.00 with respect to the renovation of the facilityfor PMCS, consisting of $181,000.00 in checks paid directly from STC to Radium, Inc. from STC accounts plus an additional $84,000 check drawn on the line of credit that STC had at Sovereign Bank. 1. Mr. Caruso testified that he does not have personal knowledge as to why these payments were issued. 2. Mr. Caruso testified that he also reviewed checks paid out by Radium, Inc., and that Radium, Inc. paid money to contractors. Bloom, 11 -001 aage__�7 g. ID -47 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 6/1/2007 to 6129/2007. 1. The bank statement indicates that two deposits totaling $112,000.00 were made into this account during this time period, with $12,000.00 being deposited on or about June 4, 2007, and $100,000.00 being deposited on or about June 13, 2007. 2. On or about June 20, 2007, check number 1008 (ID -59) drawn from this account and made payable to Dennis Bloom in the amount of $55,000.00 was negotiated r. ID -48 is a copy of a check drawn from a bank account in the name of STC. 1. The check is dated June 1, 2007, and is made payable to Radium, Inc. in the amount of $12,000.00. 2. The check is signed by D. Bloom. 3. The memo portion of the check states: "ST. Addition mason ryla rch itect. " 4. This check was deposited into Radium, Inc.'s business checking account with PNC Bank on or about June 4, 2007. S. ID -49 is a copy of check drawn from a bank account in the name of STC. 1. The check is dated June 13, 2007, and is made payable to Radium, Inc. in the amount of $100,000.00. 2. The memo portion of the check states: "General Contracting." 3. This check was deposited into Radium, Inc.'s business checking account with PNC Bank on or about June 13, 2007. t. ID -59 is a copy of a check drawn from Radium, Inc.'s business checking account with PNC Bank. 1. The check is dated June 18, 2007, and is made payable to Dennis Bloom. 2. The memo portion of the check states: "Loan -." 3. The investigation in this matter did not discover any evidence of a loan between Dennis Bloom and Radium, Inc. 4. This check was issued five days after the $100,000.00 deposit was made to the Radium, Inc. account from the STC account. 5. Mr. Caruso testified that he did not have personal knowledge as to why this check was issued or whether the memo notation was accurate. 6. The investigation did not discover any evidence to confirm or contradict the noted existence of a loan. Bloom, 11 -001 p g--�8 U. ID -50 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 6/30/2007 to 713112007. The bank statement indicates that a deposit of $84,000.00 was made into this account on or about Jul 16, 2007, and two deposits of $2,000.00 each were made into this account on or about July 20, 2017. 2. ID -51and ID -52 are copies of checks that were deposited into this account during the period 6/30/2007 to 713112007. 3. ID -51 in the amount of $84,000.00 was issued to Radium, Inc. on the STC's line of credit with Sovereign Bank. 4. ID -51 is the only check from Sovereign Bank to Radium, Inc. that the Investigative Division found. V. The memo portion of the check in evidence as ID -51 states: "For Rise Construction Steel." Rise Construction Steel was a contractor that worked on the renovations to STC for PMCS. W. The memo portion of the check in evidence as ID -52 states: "General Contracting.' X. 1D -53 is a bank statementfor Radium, Inc.'s business checking accountwith PNC Bank for the period 9/1/2007 to 912812007. 1. The bank statement indicates that one deposit totaling $50,000.00 was made into this account during this time period, with $50,000.00 being deposited on or about September 10, 2007. 2. ID -54 is a copy of a check dated September 10, 2007, issued by STC to Radium, Inc. in the amount of $50,000.00, that corresponds to the aforesaid deposit. 3. The memo portion of the check that is in evidence as ID -54 states: "repay loan. ' 4. The investigation in this matter did not discover any promissory notes or loan documents between STC and Radium, Inc. 5. Mr. Caruso testified that he did not know whether there was an oral agreement with regard to a loan between STC and Radium, Inc., such as if Radium, Inc. expended monies to pay for materials and STC was reimbursing that expenditure. Y. ID -55 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 3/1/2008 to 313112008. This bank statement listed the same address for Radium, Inc. that was used for STC and PMCS, specifically, 16 Carriage Sq., Tobyhanna, PA 18466 -8979. 2. This bank statement indicates that one deposit totaling $5,000.00 was made into this account during this time period, with $5,000.00 being deposited on or about March 6, 2008. Bloom, 11 -001 a-�9 3. ID--56 is a copy of a check from STC to Radium, Inc. dated March 6, 2008, in the amount of $5,000.00, which corresponds to the aforesaid deposit. 4. The memo portion of the check in evidence as ID -56 states: "General Contracting." Z. ID -57 is a bank statement for Radium, Inc.'s business checking accountwith PNC Bank for the period 5/1/2008 to 513012008. 1. The bank statement indicates that a deposit in the amount of $12,000.00 was made into this account on or about May 2, 2008. 2. ID -58 is a copy of a check from STC to Radium, Inc. dated May 1, 2008, in the amount of $12,000.00, which corresponds to the aforesaid deposit. 3. The memo portion of the check states: "General Contracting excavation." aa. The records Mr. Caruso reviewed in this matter did not include: 1. Any contracts between Radium, Inc. and STC; 2. Any contracts between Radium, Inc. and PMCS; 3. Any checks issued by Radium, Inc. to PMCS; 4. Any correspondence/memoranda from Radium, Inc. to PMCS; or 5. Any correspond encelmemo rand a from PMCS to Radium, Inc. bb. Mr. Caruso has no independent knowledge of whether PMCS did any business with Radium, Inc. cc. The bank records Mr. Caruso reviewed for Radium, Inc. did not include any deposits from checks written by PMCS. 1. There was no indication in the bank statements and checks that Mr. Caruso reviewed of any payments of any nature from PMCS to Radium, Inc. dd. Radium, Inc. issued checks to Ms. Thomas - Dezonie, a Member of the PMCS Board of Directors. 1. Ms. Thomas- Dezonie characterized the payments that were issued to her as "love offerings." ee. Commencing at same point in time in 2009, there were no business activities for Radium, Inc. that Mr. Caruso could observe. ff. Dennis Bloom's Statement of Financial Interests in evidence as ID -33, which p4urports to be for calendar year 2008, is deficient in blocks 3, 4, 5, 13, and 1. Block 13 did not list Radium, Inc. as a business with which Dennis Bloom had an office, directorship, or employment. Bloom, 11 -001 X40 2. Blocks 3, 4, and 5 were not completed. 3. This Statement of Financial Interests bears a date that is inconsistent with the calendar year for which the form purports to be filed. gg. Dennis Bloom's Statement of Financial Interests for calendar year 2007, which is in evidence as 1D -34, is deficient in blocks 5, 8, 9, 10, 11, 12, 13, 14, and 15. 1. Block 13 did not list Radium, Inc. as a business with which Dennis Bloom had an office, directorship, or employment. 2. Blocks 5, 8, 9, 10, 11, 12, 13, 14, and 15 were not completed. hh. Dennis Bloom's Statement of Financial Interests in evidence as ID -35, which purports to be for calendar year 2009, is deficient in blocks 5 and 13. 1. Block 13 did not list Radium, Inc. as a business with which Dennis Bloom had an office, directorship, or employment. 2. Block 5 was not completed. 3. Mr. Caruso testified that he believes Block 14 of this form is also deficient. 4. This Statement of Financial Interests bears a date that is inconsistent with the calendar year for which the form purports to be filed. ii. Dennis Bloom's Statement of Financial Interests for calendar year 2009, which is in evidence as ID -36, is deficient in block 13. 1. Block 13 is marked "none" and does not list Radium, Inc. as a business with which Dennis Bloom had an office, directorship, or employment. 2. Mr. Caruso testified that he believes Radium, Inc. should have been disclosed in Block 14, pertaining to "Financial Interest in any Legal Entity in Business for Profit," as well. jj. Dennis Bloom's Statement of Financial Interests for calendar year 2010, which is in evidence as ID -37, is deficient in block 13. 1. Block 13 did not list Radium, Inc. as a business with which Dennis Bloom had an office, directorship, or employment. kk. The letter /Amended Notice of Investigation dated February 7, 2012, which is in evidence as ID -12, notified Respondent of deficient filings of Statements of Financial Interests. 1. From February 7, 2012, to the date of Mr. Caruso's testimony in the hearing in this matter (April 25, 2017), the Investigative Division was not provided with any amended Statements of Financial Interests from Dennis Bloom. II. The PMSD revoked the charter of the PMCS, which decision the Charter School Appeals Board reversed; however, the revocation appeal which was granted was eventually reversed. Bloom, 11 -001 g41 156. Gricel Bloom ( "Mrs. Bloom ") is the wife of Respondent Dennis Bloom. a. Mrs. Bloom was one of the four founders of PMCS. 1. The other three founders of PMCS were Dennis Bloom, Dr. Shelton, and Mr. Shelton. b. R -2 consists of the minutes of the May 30, 2003, meeting of the PMCS Board. 1. At this meeting, the PMCS Board hired Mrs. Bloom for her first position with the PMCS, which was an administrative position, and set her salary. G. Mrs. Bloom was subsequently made Assistant CEO of PMCS. 1. Mrs. Bloom was Assistant CEO of PMCS from 2006 until 2009 when she retired. 2. As Assistant CEO, Mrs. Bloom reported to her husband, Dennis Bloom. d. In 2006, Mrs. Bloom received a raise in her base pay. e. Mrs. Bloom testified that Mr. Severs typed the memorandum from the CEO to the PMCS Board that is in evidence as ID -23. f. As Mrs. Bloom's boss, it was Dennis Bloom's responsibility to recommend raises for her. (April 25, 2017, Tr., at 166). g. Mrs. Bloom testified that the PMCS Board —not Dennis Bloom- -made the decision to give her a raise. h. Mrs. Bloom testified that the PMCS was expanded prior to 2006 -2007 because student enrollment increased and there was a waiting list for students to attend PMCS. i. Mrs. Bloom testified that in 2006 or 2007, there was a need for another expansion of PMCS to accommodate the number of children. j. The PMCS did not have the financial ability to borrow money to fund either expansion. k. The second expansion was funded through STC. 1. Without funding secured by STC, the expansion could not occur. Mrs. Bloom testified that she (Mrs. Bloom) wrote the checks to Ms. Thomas - Dezonie that are in evidence as 1D -43, R -4, and R -5. 1. Mrs. Bloom testified that she (Mrs. Bloom) gave these checks to Ms. Thomas - Dezonie and that the checks were payment for work that Ms. Thomas - Dezonie was doing for Radium, Inc. 2. Mrs. Bloom testified that these checks were not a "love offering" from the church. Bloom, 11 -001 t a 42 M. Mrs. Bloom testified that the Radium, Inc. checkbook was kept in Ms. Thomas - Dezonie's desk in Ms. Thom as-Dezonie's office. n. Mrs. Bloom testified that Ms. Thomas - Dezonie knew where the Radium, Inc. checkbook was kept and had access to the checkbook. o. Mrs. Bloom testified that she (Mrs. Bloom) observed Ms. Thomas - Dezonie writing checks out of the Radium, Inc. checkbook on several occasions. P. Ms. Thom as- Dezonie's office was located in the PMCS phase one office. q. Mrs. Bloom testified that Ms. Thomas - Dezonie was doing work for Radium, Inc. out of an office that was a PMCS office during school hours and became a church office after school hours. Mrs. Bloom testified that after school hours, the STC had access to the PMCS facility. Mrs. Bloom and Dennis Bloom filed joint tax returns for the years 2007 and 2008, which tax returns are in evidence as R -8 and R -9. 1. These tax returns do not reflect any income from Radium, Inc. 157. David Rudis ( "Mr. Rudis ") is a certified public accountant ( "CPA ") licensed in Pennsylvania and Florida. a. Mr. Rudis was accepted as an expert witness in this case. b. Mr. Rudis evaluated certain transactions between Radium, Inc., STC, and Dennis Bloom to determine whether any taxable events occurred as a result of those transactions. Mr. Rudis's evaluation /report was solely based upon information that he was provided. 2. Mr. Rudis's report was not admitted into evidence because the copy of the report offered into evidence was redacted and the attachments of documents used to prepare the report had been omitted. 158. Carlos A. Ramos, Jr. ( "Mr. Ramos ") testified that he served on the PMCS Board from the latter part of 2006 to 2007, when he moved out of the area. a. Mr. Ramos testified that while he (Mr. Ramos) was on the PMCS Board, Mr. Severs requested increases in salary for the CEO, Assistant CEO, and principal. Mr. Ramos testified that after the request was made, he, as PMCS Board Secretary, served on a committee together with Ms. Thomas - Dezonie PMCS Board President) and Maria Torez (PMCS Board Treasure to determine appropriate salaries. 2. Mr. Ramos testified that after conducting a statewide search to compare salaries, the committee made a recommendation to the PMCS Board to increase the salaries of the PMCS CEO, Assistant CEO, and principal, and the PMCS Board accepted that recommendation. Bloom, 11 -001 Pag _e4 3 3. When asked, "How long a period of time was this issue researched, if you can recall ?" Mr. Ramos answered, "Three to four months, seems like." 4126117 Tr., at 37. b. Mr. Ramos's testimony was not credible. 1. Mr. Ramos's testimony that Mr. Severs requested the salary increases is contradicted by Respondent's judicial admissions noted herein. 2. The raise for Mrs. Bloom was approved in July 2006, and Mr. Ramos is recorded as having been present at both the July 5, 2006, and July 26, 2006, PMCS Board meetings (ID -27, ID -27A). 3. In order for the aforesaid committee's research to take three to four months, Mr. Ramos would have had to have been on the PMCS Board at least as early as April 2006; however, Mr. Ramos testified he served on the PMCS Board from the latter part of 2006 to 2007. 4. When Mr. Ramos was interviewed by State Ethics Commission Special Investigator Gregory Curran ( "Mr. Curran ") on February 8, 2012, Mr. Ramos stated that he could not recall specific details pertaining to Mrs. Bloom's contract as Assistant CEO with PMCS. Fact Finding 163 c(1). 5. When Mr. Ramos was interviewed by Mr. Curran on February 8, 2012, Mr. Ramos informed Mr. Curran that he (Mr. Ramos) was having certain problems that affected his memory and that it had been a number of years since he had served as a PMCS Board Member. Fact Finding 163 c(2). 159. John Robert Severs ( "Mr. Severs ") served as principal of the PMCS from 2006 to 2011. a. Mr. Severs testified that he typed the memorandum that is in evidence as ID- 23 for Dennis Bloom to initial and pass on if Dennis Bloom wanted to do so. 1. Mr. Severs testified that he handed the memorandum to Mrs. Bloom because Dennis Bloom was not there. b. Mr. Severs testified that he (Mr. Severs), not Dennis Bloom, recommended the hiring of Mitchell Bloom and Priscilla Bloom. 1. Mr. Severs' testimony that Dennis Bloom did not recommend the hiring of Mitchell Bloom and Priscilla Bloom is contradicted by Respondent's judicial admissions noted herein. C. Mr. Severs testified that Dennis Bloom did not tell Mr. Severs to hire Mitchell Bloom. d. Mr. Severs testified that the PMCS Board approved the employment of Mitchell Bloom, and Dennis Bloom fired Mitchell Bloom twice. e. On January 26, 2012, Mr. Severs provided a sworn statement to State Ethics Commission investigators that was audio- recorded. Mr. Severs testified that he has had some difficulties with memory. Bloom, 11 -001 X44 160. Priscilla Bloom is the daughter of Dennis Bloom and Mrs. Bloom. a. Priscilla Bloom was a student at PMCS. b. While a student at PMCS, Priscilla Bloom was employed part-time by PMCS to perform reception work, office work, and some custodial work, for which she was compensated on an hourly basis. C. Priscilla Bloom testified that she was asked to do the aforesaid work by Mr. Severs and that Dennis Bloom did not have any involvement in that. Priscilla Bloom was not in a position to know whether Respondent recommended that she be hired. 161. Naomi Laura ( "Ms. Laura ") was employed by the PMCS as its human resources director from 2006 to approximately 2013. a. It was a regular practice of PMCS to hire students part-time. b. Ms. Laura initially testified that Mr. Severs made the decision to hire Priscilla Bloom and that Dennis Bloom did not participate in making that decision (April 26, 2017, Tr., at 103). C. Ms. Laura subsequently testified that Mr. Severs recommended hiring Priscilla Bloom and Mitchell Bloom (April 26, 2017, Tr., at 107). d. Ms. Laura was not present to witness who made any such decisions /recommendations. e. Ms. Laura testified that before Ms. Thomas - Dezonie left her employment with PMCS, she (Ms. Laura) heard Ms. Thomas - Dezonie state that she (Ms. Thomas - Dezonie) was going to "get" or "go after" Pastor Bloom. 162. Kim Boxley ( "Mrs. Boxley ") was a Member of the PMCS Board from 2010 to 2012. a. Before Ms. Thomas - Dezonie quit her employment at PMCS, Mrs. Boxley overheard Ms. Thomas - Dezonie state to a cafeteria worker how upset she (Ms. Thomas- Dezonie) was with Pastor Bloom and the school. 1. Mrs. Boxley did not know the entire conversation between Ms. Thomas - Dezonie and the cafeteria worker. 163. Gregory Curran ( "Mr. Curran ") is employed as a Special Investigator with the State Ethics Commission. a. Mr. Curran testified that the information provided by Ms. Thomas - Dezonie changed among interviews. b. Mr. Curran and another Commission investigator interviewed Mr. Severs on January 26, 2012. This interview was audio - recorded with Mr. Severs being under oath. 2. When Mr. Severs was asked whether he (Mr. Severs) played any role in the hiring of the Bloom children, Mr. Severs answered "no." 3. During this interview, Mr. Severs was asked if he had ever seen the document that is in evidence as 1D -23 and he answered "no." Bloom, 11 -001 1 a e 45 C. Mr. Curran interviewed Mr. Ramos by telephone on February 8, 2012. 1. During this interview, Mr. Ramos stated that he could not recall specific details pertaining to Gricel Bloom's contract as Assistant CEO with PMCS or about how Dennis Bloom's children were hired. 2. Mr. Ramos informed Mr. Curran that he (Mr. Ramos) was having certain problems that affected his memory and that it had been a number of years since he had served as a PMCS Board Member. C. Documents 164. ID -12 and ID -13 are copies of letters /Amended Notices of Investigation dated February 7, 2012, and February 10, 2012, which were issued to Dennis Bloom in care of his Counsel. See, Fact Findings 155 g -h(1). a. The letter /Amended Notice of Investigation dated February 7, 2012, was received on February 8, 2012. b. The letter /Amended Notice of Investigation dated February 10, 2012, was received on February 13, 2012. C. The letters /Amended Notices of Investigation in evidence as ID -12 and ID -13 notified Respondent of the allegation that Respondent violated Sections 1105(b)(5), (8), and (9) of the Ethics Act "when he failed to disclose on SFIs filed for the 2007, 2008, 2009 and 2010 calendar years all direct/indirect sources of income, his office, directorship or employment in any business for profit and financial interest in any legal entity in business for profit." ID -12, at 1, 3; 1 D -13, at 2 -4. 165. ID -19 through ID -22 consist of official records of the Pennsylvania Department of State regarding PMCS, including Articles of Incorporation and Articles of Amendment. a. The corporation that ultimately became PMCS was originally incorporated by Respondent Bloom in 2002 under the name "Pocono Mountain Learning Academy." b. In 2003 the name of the corporation was changed to "Pocono Mountain Charter School." C. The Articles of Incorporation were signed by Respondent Bloom as the Incorporator. d. The Articles of Amendment were signed by Respondent Bloom. e. The Articles of Amendment changing the name of the corporation to "Pocono Mountain Charter School" were signed by Respondent Bloom as "CEO /Pres." f. The PMCS was a nonprofit corporation. 166. ID -23 is a marked copy of the memorandum referenced in Fact Findings 75 -75 a. a. The memorandum is addressed to "Board of the PMCS" from "C.E.O." regarding "Raises of personnel." Bloom, 11 -001 '46 b. The memorandum is typed with added handwritten figures and highlighting. C. The memorandum does not bear any initials or signature. 167. ID -25 is a copy of an undated sign -in sheet by which the PMCS Board Members who signed the sheet approved the raise for Gricel Bloom as Assistant CEO to $69,457.50. 168. PMCS Board meeting minutes record Carlos Ramos as being present as a PMCS Board Member at the PMCS Board meetings held on July 5, 2006, and July 26, 2006. (ID -27; ID -27A). 169. ID -31 consists of W -2 Wage and Tax Statements for Priscilla Bloom for income received from the PMCS in 2006 and 2007. a. In 2006, Priscilla Bloom received gross wages in the amount of $6,930.00 from PMCS (see, Fact Finding 89 a). b. In 2007, Priscilla Bloom received gross wages in the amount of $11,109.60 from PMCS see, Fact Finding 89 a). 170. ID -32 consists of W -2 Wage and Tax Statements for Mitchell Bloom for income received from the PMCS. a. In 2006, Mitchell Bloom received gross wages in the amount of $1,126.13 from PMCS (see, Fact Finding 90 a). b. In 2007, Mitchell Bloom received gross wages in the amount of $4,882.001$4,882.50 from PMCS (see, Fact Finding 90 a). C. In 2008, Mitchell Bloom received gross wages in the amount of $3,100.00 from PMCS (see, Fact Finding 90 a). 171. ID -33 is a Statement of Financial Interests of Dennis Bloom that purports to be for calendar year 2008 that is dated 115107. 172. ID -34 is a Statement of Financial Interests of Dennis Bloom for calendar year 2007 that is dated March 5, 2008. 173. ID -35 is a Statement of Financial Interests of Dennis Bloom that purports to be for calendar year 2009 that is dated 1117109. 174. ID -36 is a Statement of Financial Interests of Dennis Bloom for calendar year 2009 that is dated 1112110. 175. ID -37 is a Statement of Financial Interests of Dennis Bloom for calendar year 2010 that is dated 115111. a. On this form, the box "none" is checked for Block 10, pertaining to "Direct or Indirect Sources of Income." 176. ID -38 is a copy of check number 1018 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated August 27, 2007, and is made payable to Michelle Dezonie in the amount of $500.00. b. The check is signed with the name Dennis Bloom. Bloom, 11 -001 '47 C. The memo portion of the check states: "For [illegible] Per Diem." 177. ID-39 is a copy of check number 1019 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated September 28, 2007, and is made payable to Michelle Dezonie in the amount of $400.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check is a line. 178. ID -40 is a copy of check number 1020 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated October , 2007, and is made payable to Michelle Dezonie in the amount of $500.00. b. The check is signed with the name Dennis Bloom. c. The memo portion of the check states: "For per diem -." 179. ID -41 is a copy of check number 1021 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated November 7, 2007, and is made payable to Michelle Dezonie in the amount of $700.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check is a line. 180. ID -42 is a copy of check number 1022 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated December 12, 2007, and is made payable to Michelle Dezonie in the amount of $1,000.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check states: "wages." 181. ID -43 is a copy of check number 1023 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated December 28, 2007, and is made payable to Michelle Dezonie in the amount of $1,000.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check is blank. 182. ID -44 is a copy of check number 1024 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated February 8, 2008, and is made payable to Michelle Dezonie in the amount of $1,000.00. Bloom, 11 -001 age -48 b. The check is signed with the name Dennis Bloom. C. The memo portion of the check is blank. 183. ID -45 is a copy of check number 1025 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated March 7, 2008, and is made payable to Michelle Dezonie in the amount of $737.50. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check is .illegible. 184. ID -46 is a copy of check number 1026 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated March 20, 2008, and is made payable to M. Dezonie in the amount of $1,000.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check states: "For Consulting -." 185. ID -46A is a copy of check number 1037 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated May 2, 2008, and is made payable to Michelle Dezonie in the amount of $925.0 b. The check is signed with the name Dennis Bloom. C. The memo portion of the check appears to state: "For wages." 186. ID -47 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 6/1/2007 to 6/29/2007. a. The beginning balance in this account as of June 1, 2007, was $43,839.07. b. The bank statement indicates that two deposits totaling $112,000.00 were made into this account during this time period, with $12,000.00 being deposited on or about June 4, 2007, and $100,000.00 being deposited on or about June 13, 2007 (see, Fact Findings below as to ID -48 and ID -49). C. The bank statement indicates that an additional amount of $37,960.00 was added into this account on or about June 8, 2007; this transaction bears the notation "Fed Wire In 016840." d. The following checks were debited from this account from June 5, 2007, to June 11, 2007: • Check number 1005 posted June 5, 2007, in the amount of $10,000.00; • Check number 1006 posted June 7, 2007, in the amount of $2,000.00; and • Check number 1007 posted June 11, 2007, in the amount of $37,960.00. Bloom, 11 -001 X49 e. As of June 11, 2017, the balance in this account was again $43,839.07, and the next transaction consisted of the deposit of the $'100,000.00 STC check (ID -49) on or about June 13, 2007, bringing the account balance to $143,839.07. f. There were no other transactions in this account after June 13, 2007, until June 20, 2007, when check number 1008 drawn from this account and made payable to Dennis Bloom in the amount of $55,000.00 was negotiated see, Fact Finding below as to ID -59), reducing the account balance to $88,839.07. 187. ID -48 is a copy of check number 26923 drawn from a First National Bank of Palmerton account in the name of STC. a. The check is dated June 1, 2007, and is made payable to Radium, Inc. in the amount of $12,000.00. b. The check is signed by D. Bloom. C. The memo portion of the check states: "ST. Addition masonry /architect." 188. ID -49 is a copy of check number 26947 drawn from a First National Bank of Palmerton account in the name of STC. a. The check is dated June 13, 2007, and is made payable to Radium, Inc. in the amount of $100,000.00. b. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. C. The memo portion of the check states: "General Contracting." 189. ID -50 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 6/30/2007 to 7/31/2007. a. The bank statement indicates that a deposit of $84,000.00 was made into this account on or about July 16, 2007, and two deposits of $2,000.00 each were made into this account on or about July 20, 2017 see, Fact Findings below as to ID -51 and ID -52). 190. ID -51 is a copy of check number 102 drawn from a Sovereign Bank account made payable to Radium, Inc. a. The check is dated July 10, 2007, and is in the amount of $84,000.00. b. The check is signed by Dennis Bloom. C. The memo portion of the check states: "For Rise Construction Steel." d. This check was from STC's Sovereign Construction loan account see, Fact Finding 121). 191. ID -52 is a copy of check number 25041 drawn from a First National Bank of Palmerton account in the name of STC. a. The check is dated July 12, 2007, and is made payable to Radium, Inc. in the amount of $2,0000. Bloom, 11 -001 F a—e6 0 b. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. C. The memo portion of the check states: "General Contracting." 192. ID -53 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 9/1/2007 to 9/2812007. a. The be inning balance in this account as of September 1, 2007, was $1,783.92. b. The bank statement indicates that one deposit totaling $50,000.00 was made into this account during this time period, with $50,000.00 being deposited on or about September 10, 2007 (see, Fact Finding below as to ID -54). 193. ID -54 is a copy of check number 25151 drawn from a First National Bank of Palmerton account in the name of STC. a. The check is dated September 10, 2007, and is made payable to Radium, Inc. in the amount of $50,000.00. b. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. C. The memo portion of the check states: "repay loan." 194. ID -55 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 3/1/2008 to 313112008. a. The beginning balance in this account as of March 1, 2008, was $2,111.92. b. The bank statement indicates that one deposit totaling $5,000.00 was made into this account during this time period, with $5,000.00 being eposited on or about March 6, 2008 (see, Fact Finding below as to ID -56). 195. ID -56 is a copy of check number 30016 drawn from a First National Bank of Palmerton account in the name of STC. a. The check is dated March 6, 2008, and is made payable to Radium, Inc. in the amount of $5,000.00. b. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. C. The memo portion of the check states: "General Contracting." 196. ID -57 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 5/1/2008 to 513012008. a. The beginning balance in this account as of May 1, 2008, was $3,210.20. b. The bank statement indicates that two deposits totaling $12,900.00 were made into this account during this time period, with $12,000.00 being deposited on or about May 2, 2008 (see, Fact Finding below as to ID -58). 197. ID -58 is a copy of check number 30153 drawn from a First National Bank of Palmerton account in the name of STC. Bloom, 11 -001 Page 51 a. The check is dated May 1, 2008, and is made payable to Radium, Inc. in the amount of $12,000.00. b. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. C. The memo portion of the check states: "General Contracting excavation." 198. ID -59 is a copy of check number 1008 drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated June 18, 2007, and is made payable to Dennis Bloom in the amount of $55,000.00. b. The check is signed by Dennis Bloom. C. The memo portion of the check states: "Loan 199. ID -65 is a Summary of Terms and Conditions ( "Loan Summary") for a proposed loan from Sovereign Bank to STC. a. The Loan Summary is signed by Pastor Dennis Bloom with a signature date of May 15, 2007. b. The Loan Summary is dated May 18, 2007. C. Per the Loan Summary, the purposes of the proposed loan were construction financing for renovations for the PMCS and refinancing of a then - current mortgage related to PMCS. 200. ID -66 is a letter dated June 20, 2007, approving a loan from Sovereign Bank to STC of up to $3,900,000.00, including $2.7 million for renovations to the STC property at 16 Carriage Square, Tobyhanna, Pennsylvania, plus $1,200,000.00 to support refinancing an existing mortgage. a. This letter is signed by Pastor Dennis Bloom on behalf of STC. 201. ID -67 is a Promissory Note to pay back the $3,900,000.00 loan provided by Sovereign Bank to STC. a. The Promissory Note is dated July 18, 2007. b. The Promissory Note is signed by Pastor Dennis Bloom on behalf of STC. 202. ID -68 is a copy of the Loan Agreement for the $3,900,000.00 loan provided by Sovereign Bank to STC. a. The Loan Agreement is dated July 18, 2007. b. The Loan Agreement is signed by Dennis Bloom on behalf of STC. C. The Loan Agreement includes as an "Event of Default" the "loss, suspension, revocation, or failure by any Governmental Authority to renew the charter school license and/or permit now held by the [PMCS] to operate as an accredited `charter school' under the laws of the Commonwealth of Pennsylvania (TD -68, at page 48 of the Loan Agreement). Bloom, 11 -001 �Fa e52 d. ID -68 includes a budget for the STC addition, dated May 2, 2007, which lists "Radium - Security" next to the amount of $50,000.00. 203. ID-70C consists of a portion of the testimony Dennis Bloom provided under oath on November 23, 2009, before the PMSD Board of Directors. a. Dennis Bloom's sworn testimony on November 23, 2009, before the PMSD Board of Directors included the following: Line: Pg.410 7 Q And at some point in time not only was your 8 wife employed by the school but your son, Mitchell, was 9 correct? 10 A Oh, yes. 11 Q And not only your son, but your daughter was 12 also employed by the school, wasn't she? 13 A Of course. 14 Q Of course. And why do you say of course, sir? 15 A Why not? Paul Kelly's daughter works in the 16 school district, she's a teacher, and Arnold, assistant 17 superintendent, his daughter is working. Why can't 18 daughters work in schools? 19 Q And what qualifications did your daughter 20 Priscilla have at the time she was working for the school? 21 A What qualification do you need to answer the 22 phone. 23 Q She was a receptionist. 24 A Besides cleaning, maintenance, things like 25 that. Line: Pg.411 1 Q She was cleaning, maintenance, and 2 receptionist. Anything else? 3 A We hire many girls, many children each year. Bloom, 11 -001 Page 53 4 Q And you also hired your son, Mitchell, correct? 5 A Along with other children from school, of 6 cou rse. 7 Q Your daughter was working part -time because she 8 was a student at the time she worked for the charter school, 9 right? 10 A Probably. 204. ID -27 and R -1 are PMCS Board Meeting Minutes which indicate that Mr. Shelton was a Member of the PMCS Board on July 5, 2006, until he was removed from the PMCS Board during the July 5, 2006, PMCS Board meeting "per By Laws" by a vote of 4 -3. 205. R -2 consists of the PMCS Board Meeting Minutes from the first meeting of the PMCS Board, which was held on May 30, 2003. a. At this meeting, the PMCS Board hired Mrs. Bloom for her first position with the PMCS, which was an administrative position, and set her salary. b. The initial PMCS position to which Mrs. Bloom was hired was Assistant Principal. 206. R -4 is a copy of check number 1027 that appears to have been drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated April 4, 2008, and is made payable to Michelle Dezonie in the amount of $850.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check states: "Salary." 207. R -5 is a copy of check number 1030 that appears to have been drawn from Radium, Inc.'s business checking account with PNC Bank. a. The check is dated April 18, 2008, and is made payable to Michelle Dezonie in the amount of $1,000.00. b. The check is signed with the name Dennis Bloom. C. The memo portion of the check is blank. D. Derivative Fact Findings 208. This Commission's review as to violations of the Ethics Act in this case is limited to acts which occurred from March 2, 2006, forward. +(See, 65 Pa.C.S. § 1108(m); 51 Pa. Code §§ 11.3, 21.3(c), 21.5(b); Fact Finding 15 c; cf., Cag cno, Order No. 1204; Cook, Order No. 1203). Bloom, 11 -001 a�54 209. Respondent's recommendation to the PMCS Board for a raise for his wife, Gricel Bloom, was made after March 2, 2006, and would fall within the time period under review. During the time period Mr. Shelton was a Member /President of the PMCS Board— specifically, from 2003 to July 5, 2006, when he was removed from the PMCS Board, the PMCS Board had monthly meetings. Fact Finding 150 d. It was around June 2006, that Respondent and Mr. Severs discussed terms and conditions for an employment agreement for Respondent's position of CEO and Respondent's compensation as CEO. Fact Findings 63 -63 c. G. Ms. Thomas - Dezonie testified that the PMCS Board took some time to research and consider the request for raises for Dennis Bloom, Gricel Bloom, and Mr. Severs. Fact Finding 154 I. 1. Ms. Thomas - Dezonie testified that work on this issue was on a daily basis. Fact Finding 154 l(1). Ms. Thomas - Dezonie testified that the proposed raises were considered by the PMCS Board during two meetings. Fact Finding 154 1(2). Ms. Thomas - Dezonie testified that she was not certain if the issue was discussed by the PMCS Board at a third meeting. Fact Finding 154 1(3). Even if the PMCS Board discussed the proposed raises at three meetings, that would place Respondent's actions of recommending the raise for his wife in May or June 2006, depending upon whether Ms. Thomas- Dezonie was considering both of the July 2006 meetings, but in any event, well within the time period under review. Mr. Ramos's testimony that the issue was researched "Three to four months, seems like" (4126117 Tr., at 37) was not credible. See, Fact Findings 158 b- b(5). There is sufficient evidence that Respondent's recommendation to the PMCS Board for a raise for his wife, Gricel Bloom, was made after March 2, 2006, and would fall within the time period under review. III. DISCUSSION: As Chief Executive Officer ( "CEO ") of the Pocono Mountain Charter School ( "PMCS ") from 2003 until December 10, 2010, Respondent Dennis Bloom, also referred to herein as Respondent, Respondent Bloom, and Bloom, was a public official/public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act'), 65 Pa.C.S. § 1101 et seg. The allegations as set forth in the Investigative Complaint/Findings Report are that Respondent Bloom, in his capacit as CEO of PMCS, violated Sections 1103(a), 1103(f), 1105 b 5 11050M, and 1105 b)(9) of the Ethics Act, 65 Pa.C.S. §§ 1103(a), 1103(f), 1105 b 5 1105 and 1105 )(9), he used the authority f his public position or j� j ' �)( )� of his immediate famiI and /or the private pecuniary benefit of himself and/or a member businesses with which he and members of his immediate family are associated by: R in actions of the PMCS including making recommendations to the PMCS Board of Trustees ( "PMCS Board ") resulting in real estate rental contracts being entered Bloom, 11 -001 Page 55 into with the Shawnee Tabernacle Church ( "STC ") where he serves as Pastor; when as CEO of PMCS, Bloom entered into agreements with STC for the expansion of school facilities, at a time when Bloom knew or had a reasonable expectation that Radium, Inc., a business with which he is associated, would serve as the General Contractor for the expansion construction; when he authorized the free use of PMCS facilities by the Tobyhanna Impact Athletic Center, a business with which his daughter is associated; when he authorized the hiring of his spouse as Assistant Chief Executive Officer ( "Assistant CEO ") of PMCS and recommended pay increases for her; when he directed and authorized that payments be issued by PMCS to him for vehicle allowance; when he participated in the hiring of his children for positions with PMCS, including but not limited to recommending their hiringg, and when he failed to disclose on Statements of Financial Interests ( "SFIs ") filed for the 2007, 2008, 2009 and 2010 calendar years all direct/indirect sources of income, his office, directorship or employment in any business for profit and financial interest in any legal entity in business for profit. Following heann in this matter, the Investigative Division contends that Respondent violated Section 1103(a� of the Ethics Act with regard to: (1) the hiring of his children for positions with PMCS; (2) recommending a pay increase for his wife, who was employed by PMCS; and (3) participating and recommending that PMCS enter into a Lease Amendment Agreement with STC at a time when he knew that his company, Radium, Inc., would receive business from STC as a result of the expansion project discussed more fully below, which precipitated the Lease Amendment Agreement. Closing Statement and Brief of the Investigative Division, at 39 -40. The Investigative Division further contends that Respondent violated Sections 1105(b)(5), (8), and (9) of the Ethics Act when he filed deficient SFIs for calendar years 2007, 200$, 2009, and 2010. Id. at 40. Given that the Investigative Division is no longer asserting violations of the Ethics Act as to the remaining allegations of the Investigative Complaint, such are deemed non - prossed and this Commission need not further address them. Pursuant to Section 1103(a) of the Ethics Act, a 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 following terms are 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. Bloom, 11 -001 a a6 "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. "Immediate family. " A parent, spouse, child, brother or sister. "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self - employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. "Financial interest." Any 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. 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 ecuniary benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. The Ethics Act defines the term "income" as follows: § 1102. Definitions "Income." Any money or thing of value received or to be received as a claim on future services or in recognition of services rendered in the past, whether in the form of a payment, fee, salary, expense, allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, reward, severance payment, proceeds from the sale of a financial interest in a corporation, professional corporation, partnership or other entity resulting from termination or withdrawal therefrom upon assumption of public office or employment or any other form of recompense or any combination thereof. The term refers to gross income and includes prize winnings and flax- exempt income. The term does not include gifts, governmentally mandated payments or benefits, retirement, pension or annuity payments funded totally by contributions of the public official or employee, or Bloom, 11 -001 '57 miscellaneous, incidental income of minor dependent children. 65 Pa.C.S. § 1102. 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. 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. Procedural Background: Procedurally, the Investigative Division of the State Ethics Commission ( "Investigative Division ") received a complaint alleging that Respondent Bloom violated provisions of the Ethics Act. On January 412011, the then - Executive Director of this Commission authorized the initiation of a preliminary inquiry in this matter. On March 2, 2011, the then - Executive Director of this Commission authorized the initiation of a full investigation in this matter. On March 2, 2011, the then - Executive Director of this Commission forwarded a letter/Notice of Investigation (ID -6) to Respondent by certified mail, informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. The March 2, 2011, letter/Notice of Investigation further informed Respondent of the nature of the alleged violations of the Ethics Act. That letter was returned unclaimed, and it was subsequently forwarded to Respondent's Counsel for acceptance of service. On June 23, 2011, and September 27, 2011, this Commission granted Applications of the Investigative Division for 90 -day extensions of the deadline for completing the investigation in this matter. On February 7, 2012, the Investigative Division forwarded a letter/Amended Notice of Investigation to Respondent, in care of his Counsel, informing him that the allegations contained in the March 2, 2011, letter/Notice of Investigation were being amended. That letter, which is in evidence as ID -12, amended the allegations and identification of relevant Sections of the Ethics Act that had been previously outlined in the letterlNotice of Investigation dated March 2, 2011. The letter/Amended Notice of Investigation dated February 7, 2012, was the first notice from the Investigative Division to Respondent that Respondent's SFIs were defective. The letter/Amended Notice of Investigation dated February 7, 2012, erroneously referred to a prior letter of January 23, 2012, when no such letter had been issued. On February 10, 2012, the Investigative Division forwarded a corrected letter/Amended Notice of Investigation (ID -13) to Respondent, in care of his Counsel. The Investigative Complaint/Findings Report was mailed to Respondent on February 24, 2012. 1D -14, ID -15, ID -16, ID -17, ID -18, and ID -18A through ID -18X are copies of letters issued by the Executive Director or Acting Executive Director of this Commission to Respondent in care of Respondent's Counsel, notifying Respondent of the status of this matter. Respondent has raised the following arguments regarding procedure: Bloom, 11 -001 X58 • That the Commission failed to abide by the Ethics Act in notifying Respondent of the status of the investigation, since the notices were sent untimely, contained inaccurate information and were generally designed to mislead Respondent; That the extensions for the investigation were granted without opportunity for Respondent to be heard in violation of his due process rights; That refusal of the Commission to allow discovery violates Section 1108(e) and has interfered with Respondent's ability to adequately answer the Investigative Complaint; • That amendment of the Notice of Investigation during the final two weeks of the investigation period violated due process by failing to give Respondent actual and effective notice of the substance of the CommIssion'S Complaint/Investigative Complaint and denied him an opportunity to respond effectively; and • That the Investigative Complaint was untimely. Respondent has not elaborated upon the first argument above, and we conclude that it is without merit. Respondent's second argument also lacks merit because a respondent has no right to participate in the process for extensions of investigations: "Upon a showing b the executive director of the need for extension of this period, the commission may extend an investigation for up to two 90 -day periods, provided that each 90 -day extension shall be approved by a majority vote of members present." 65 Pa.C.S. § 110%c} (Emphasis added). Cf., Norwood v. Pennsylvania Horse Racing Commission, 328 A.2 j 98, 202 -203 (Pa. Cmwlth. 974). As for Respondent's due process arguments, "The fundamental requirement of due process is the opportunity to be heard 'at a meaningful time and in a meaningful manner. "' Mathews v. Eldridge, 424 U.S. 319, 333 (1976) (Citations omitted). Some form of hearing is required before an individual is finally deprived of a property interest. Id. Respondent has had notice and a meaningful opportunity to be heard. Respondent has been provided the full protection of due process in this case. We reject Respondent's arguments regarding discovery. Discovery as provided by the Pennsylvania Rules of Civil Procedure in court proceedings is not made available in administrative proceedings (D.E.L.T.A. Rescue v. Bureau of Charitable Organizations, 979 A.2d 415 (Pa. Cmwlth. 2009T, A oc. denied, 605 Pa. 716, 991 A.2 4 (2010); Vaders v. Penns Ivania State Horse Racing fission, 964 A.2d 56 (Pa. Cmwlth. 2009); UGI Utilities, Inc. v. Unemployment om ensation oard of Review, 851 A.2d 240 (Pa. Cmw tai 2004); WeinbeL v. Commonwealth o Penns Ivania Insurance Department, 398 A.2d 1120 (Pa. mwlt . 1979. The Ethics Act simp y prove es or Respondent to have access to "any evidence intended to be used by the commission at the hearing and an exculpatory evidence developed by the commission in the course of its investigation, 65 Pa.C.S. § 1108(e); see also, 51 Pa. Code § 21.22. As for Respondent's fifth argument, based upon our calculations, the Investigative Complaintwas issued within 360 days afterthe March 2, 2006, Notice of Investigation was issued. Having dispelled the above arguments, we shall next consider the following arguments Respondent has raised regarding the contents of the Investigative Complaint. Respondent contends: e That to the extent the allegations of the Investigative Complaint deal with actions that occurred prior to March 2, 2006, they are barred by the five -year statute of limitations; Bloom, 11 -001 1 a e 59 • That the Commission failed to inform Respondent of any deficiencies in his SFIs, which the Commission is statutorily required to do, and therefore the Commission is now estopped from raising these matters; • That the Commission's allegations in regard to the SFI filings are barred by laches because Respondent has suffered prejudice due to the delay of the Commission in informing him of the deficiencies in his initial filings; • That various references to STC in the Investigative Complaint are outside the scope of the Commission's authority and an impermissible intrusion by the State into Church affairs in violation of the constitutional principle of separation of Church and State; • That activities which occurred between PMCS and STC, governed by their respective Boards, are not the proper subject of inquiry of an investigation concerning Respondent; and • That the Investigative Complaint contains averments that are scandalous, spurious and inflammatory and have no valid basis for being in the Investigative Complaint and same should be stricken. With regard to the five -year statute of limitations of Section 1108(m) of the Ethics Act, 65 Pa.C.S. § 1108(m), we may only find violation(s) based upon acts which occurred no more than five years prior to the commencement of the investigation in this matter. Procedurally, the investigation in this matter commenced on March 2, 2011, the date when the then - Executive Director mailed to Respondent a letterlNotice of Investigation via certified mail, informing him of the nature of the alleged violations of the Ethics Act and that the Investigative Division would be undertaking an investigation as to such allegations. Accordingly, our review as to violations of the Ethics Act in this case is limited to acts which occurred from March 2, 2006, forward. (See, 65 Pa.C.S. § 1108(m); 51 Pa. Code §§ 11.3, 21.3(c), 21.5(b); Fact Findings 155 c, 208; cf., Cagno, Order No. 1204; Cook, Order No. 1203). However, evidence outside the 1 mitation period may be cons - id—&ed by this Commission in determining whether violation(s) of the Ethics Act occurred within the limitation period. Ackerl , Order No. 976. Regarding Respondent's SFIs, the Investigative Division did inform Respondent of the alleged deficiencies in his SFIs by letters /Amended Notices of Investigation dated February 7, 2012, and February 10, 2012. ID -12, at 1, 3; ID -13, at 2 -4. As for references to STC in the Investigative Complaint, the Constitution does not insulate a church from being mentioned by the State, and given that STC chose to lease facilities to PCMS —a governmental entity - --such references are necessary. For the same reason, activities that occurred between PMCS and STC were properly and necessarily part of the investigation in this matter. As for Respondent's sixth argument above, we are not aware of any scandalous, spurious and inflammatory averments in the Investigative Complaint, but in any event, only the admissions from the leadings are contained within Section A of the Fact Findings in this adjudication and Order. We shall now summarize the relevant facts. Relevant Facts: Regarding Formation of STC and PMCS: On or about February 8, 1995, Respondent and his wife, Gricel Bloom ( "Mrs. Bloom "), formed the STC. Respondent was a Pastor of the STC. On or about August 14, 2001, Respondent incorporated the STC. Filings with the Pennsylvania Department of State, Corporation Bureau listed Respondent as President and the only incorporator of STC. Bloom, 11 -001 age0 Documents filed with the Pennsylvania Department of State on March 1, 2002, indicated that the STC organized in 1995 was the same entity as the STC organized in 2001 and the prior would cease to exist. These filings listed Respondent, Mrs. Bloom, Carmelo Ruiz and Ruth Baptise as the STC Board of Directors at that time. No other changes to STC have been filed with the Pennsylvania Department of State. By no later than March 1, 2002, STC was located at 16 Carriage Square, Tobyhanna, Pennsylvania. At or about that time, Respondent was operating the Tobyhanna Christian Academy ( "TCA "), a private school, at that same address. The corporation that ultimately became PMCS was on orally incorporated by Respondent in 2002 under the name "Pocono Mountain Learning Academy." The Articles of Incorporation forthe Pocono Mountain Learning Academy (`°PMLA ") listed Respondent as the incorporator and the same 16 Carriage Square, Tobyhanna, Pennsylvania, address used by STC. When the PMLA Articles of Incorporation were amended, Respondent signed the Articles of Amendment. In order to operate, a charter school must be approved by a local public school district's board of school directors. The property at 16 Carriage Square, Tobyhanna, Pennsylvania, is located within the geographical boundaries of the Pocono Mountain School District ( "PMSD "). The charter school application submitted to the PMSD noted the proposed management organization as follows: There will be five (5) members of the Board of Trustees who will assume the ultimate responsibility for the governance of the [Charter School]. The Chief Administrative Officer (CAO) will report directly to the Board of Trustees and assume the overall responsibility for the daily operation of the charter school. The principal will report directly to the CAO and will assume responsibility for the leadership and management of the daily operation of the school. Fact Finding 23 a. Trustees of the charter school board were to be selected as follows: The initial members of the board of Trustees will be appointed by the Founding Coalition and will serve for five (5) years. After the initial five -year term, three members will stand for election for a two -year term. Then after the seventh year, the other two members will stand for election for another three - year term. Two seats on the Board of Trustees will be reserved for representatives of the parents /guardians of students enrolled in the [Charter School]. The Chief Administrative Officer will be a standing member of the Board with no voting rights. Fact Finding 23 b. There were four founders of PMCS, specifically, Respondent, Respondent's wife, Mrs. Bloom, Janet Shelton, Ph.D. ( "Dr. Shelton "), and Dr. Shelton's husband, James Shelton ( "Mr. Shelton "). On February 19, 2003, the PMSD's Board of Directors approved a Resolution granting a charter to the PMCS. Bloom, 11 -001 ap geBI Amended Articles of Incorporation were filed by Respondent with the Pennsylvania Department of State on March 6, 2003, changing the entity name from the "Pocono Mountain Learning Academy" to the "Pocono Mountain Charter School." Respondent signed this amended filing as President and CEO of the PMLA. The registered business address of PMCS remained 16 Carriage Square, Tobyhanna, PA 8466- -the same physical location as the STC. The PMCS Board held its first meeting on May 30, 2003. All of the individuals who served on the PMCS Board at that time were affiliated with STC. At that meeting, the PMCS Board hired Respondent Bloom to be CEO of PMCS, Dr. Shelton to be principal of PMCS, and Mrs. Bloom to be Assistant Principal of PMCS. Each hiring was for a 3 -year period with an option to renew. As CEO of PMCS, Respondent was at the top of the hierarchy over Dr. Shelton as principal. Mrs. Bloom was to report to Dr. Shelton in the chain of command. PMCS opened in September of 2004. PMCS's primary funding source was PMSD and resulted from reimbursements from PMSD based on PMCS student enrollment numbers. In 2009 and 2010, the PMSD held hearings regarding the proposed revocation of PMCS's charter. The charter was ultimately revoked. 2. Regarding Respondent's Roles: Respondent served as CEO of PMCS from 2003 until December 10, 2010. During that time, Respondent also served as Pastor of STC. As CEO of PMCS, Respondent was a nonvoting Member of the PMCS Board and made recommendations to the PMCS Board regarding aspects of the PMCS operation. As PMCS CEO, Respondent was responsible for managing PMCS's contracts, including but not limited to all leases involving the PMCS. Respondent was the point of contact on the leases for both PMCS and STC. Respondent served as the liaison between the PMCS Board and STC. Respondent's duties as Pastor of STC included general management of all day -to- day activities of STC, and he had authority to execute, in the name of STC, bonds, deeds, mortgages, contracts, and other documents authorized by the Board of Directors. These duties were similar to Respondent's duties as CEO of PMCS. 3. Regarding Averred Control of PMCS Board by Respondent: The Investigative Division contends that Respondent held total control of the PMCS Board both sppiritually and financially. Closing Statement and Brief of the Investigative Division, at 1'I. Dr. Shelton, former PMCS principal who terminated her employment with PMCS in February 2006, testified that the PMCS Board would agree with anything Respondent wanted. Former PMCS Board Member and STC attendee June Kramer ( "Ms. Kramer ") testified that she left the STC and the PMCS Board in 2006 because she observed Dennis Bloom telling another PMCS Board Member how to vote, and, when Ms. Kramer objected to that, he subsequently referred her to a scripture as a word from the Lord, which Ms. Kramer interpreted as telling her to keep her mouth closed /not go against authority. Bloom, 11 -001 Page 2 The evidence in this case also includes checks that were issued by Radium, Inc. to Michelle Thomas - Dezonie ( "Ms. Thom as - Dezonie "), a Member /President of the PMCS Board. The Investigative Division offered into evidence the checks that are identified as ID- 38, ID -39, ID -40, ID -41, ID -42, ID -43, ID -44, ID -45, ID -46, and ID -46A, which checks total $7,762.50 and were paid to Ms. Thomas - Dezonie from an account in the name of Radium, Inc. As discussed more fully below, Radium, Inc. is an entity owned by Respondent. The Investigative Division asserts these checks establish that "Respondent kept control of the PMCS Board by paying the Board President with Radium, Inc. funds." Closing Statement and Brief of the Investigative Division, at 10. There was conflicting testimon as to the purpose of the checks that Ms. Thomas - Dezonie received from Radium, Inc. funds. Ms. Thomas - Dezonie testified that she received the aforesaid checks from Respondent during the time she served as a Member of the PMCS Board. Ms. Thomas - Dezonie testified that she believed these checks were love offerings, as she was a congregant of STC, was out of work at the time, and was doing volunteer work for the PMCS and STC. Ms. Thomas - Dezonie testified that she never worked for Radium, Inc. Ms. Thomas - Dezonie testified that at the time she was receiving these checks, she was not aware that Radium, Inc. was serving in some capacity as a general contractor for the expansion of the building in which the STC and PMCS operated. Ms. Thomas - Dezonie testified that she did not know what Radium was, and that to her knowledge, STC was dealing with constructing the addition for PMCS. However, State Ethics Commission Special Investigator Gregory Curran testified that the information provided by Ms. Thomas - Dezonie changed among interviews. Mrs. Bloom testified that she (Mrs. Bloom) wrote the check to Ms. Thomas - Dezonie that is in evidence as ID -43, as well as two additional checks in evidence as R -4, and R -5. The checks that are in evidence as R -4 and R -5 total $1,850.00. They are made payable to Michelle Dezonie and appear to have been drawn from Radium, Inc.'s business checking account with PNC Bank in 2008. Both checks are signed with the name Dennis Bloom. Mrs. Bloom testified that she (Mrs. Bloom) gave the checks in evidence as ID-43, R -4, and R -5 to Ms. Thomas - Dezonie as payment for work that Ms. Thomas - Dezonie was doing for Radium, Inc. Mrs. Bloom testified that these checks were not a "love offering" from the church. Additionally, there was testimony that prior to Ms. Thomas- Dezonie quitting her employment at PMCS, she was overheard stating to a cafeteria worker how upset she (Ms. Thomas - Dezonie) was with Pastor Bloom (Respondent) and the school. Regarding July 2006 Raise for Mrs. Bloom: One of Respondent's responsibilities as CEO of PMCS was to make recommendations to the PMCS Board on executives' or administrators' salaries /raises. Answer, at 3, 35 aragraph 105); see also, Fact Finding 149 f; Fact Finding 1 54 i 1 ; A ril 24 2017 Tr., at 281; Fact Finding 156TF& it 25 2017 Tr., at 166). From her initia hiring y PIVICS in May 2003 until her resignation from PM in 2009, Mrs. Bloom was an administrator with PMCS. After March 2, 2006, and on or before July 1, 2006, Respondent Bloom, in his official capacity as PMCS CEO, submitted an undated memo to the PMCS Board requesting raises for himself, Mrs. Bloom, and Dr. Shelton's successor, John Severs ( "Mr. Severs "), for the fiscal year beginning July 1, 2006. Fact Findings 75; 209. The memorandum is addressed to "Board of the PMCS" from "C.E.O." regarding "Raises of personnel." Bloom's memo to the PMCS Board read as follows: I hereby recommend the following raises to be considered and Bloom, 11 -001 75ge 63 executed for the coming fiscal budget year of July 1, 2006. Mrs. Bloom to be brought up from $60,000.00 to $69,457.50 minimum due to that she was overlooked for the last three years regarding increases and at 5% minimum for each year missed $69,457.50 would bring her up to at least a bare minimum raise. Mr. John Severs to be brought up from $72,000.00 to $85,000.00, the average salary in Pennsylvania for a principal of High School or Elementary. Mr. Severs has been here for the last four months and has shown himself to be a valuable asset to the future of the school. Rev. Dennis Bloom to be brought up from $85,000.00 to $98,398.13 minimum due to the fact he was overlooked for the last three years regarding increases and at a 5% minimum for each year missed $98,398.13 would bring him up at least to the bare minimum raise. I ask the Board to consider these raises and confirm at least the bare minimum. Any back pay not received because of the overlooking is up to the Board to approve payment. Fact Finding 75 a. Fact Findings 75 -75 a were admitted by Respondent, and as such, are binding judicial admissions. Bartholomew v. State Ethics Commission, 795 A.2d 1073 (Pa. Cmwlth. 2002). At this juncture, it is useful to address Respondent's arguments regarding judicial admissions. Respondent contends: (1) that the fact that the Investigative Divisions Motion for Judgment on the Pleadings was denied means that Respondent's admissions referenced therein should not be considered and this case should be decided on the evidence presented or not presented; and (2) that because the Hearing Officer allowed both parties to present evidence on admissions in the pleadings, the issue of judicial admissions has been waived, and if not, the Investigative Division is equally bound by admissions in the pleadings. Memorandum of Law Filed on Behalf of Respondent Dennis Bloom, at 13. Respondent's first argument has no merit. The Investigative Divisions Motion for Judgment on the Pleadings was denied for the express reason that pursuant to Section 1108(e) of the Ethics Act, 65 Pa.C.S. § 1108(e), Respondent had an absolute right to an evidentiary hearing before the Commission could determine whether violation(s) of the Ethics Act have occurred. As for Respondent's second argument, Respondent's Judicial admissions have not been waived; however, we agree that the Investigative Division is equally bound by the Investigative Division's own judicial admissions. The aforesaid memorandum sought raises for Respondent, Mrs. Bloom, and Mr. Severs. It was around June 2006, that Respondent and Mr. Severs discussed terms and conditions for an employment agreement for Respondent's position of CEO and Respondent's compensation as CEO. Fact Findings 63 -63 c. When Respondent presented the aforesaid memorandum to the PMCS Board, he stated that he and his wife had worked for a few years without a raise, and he mentioned the work that Mr. Severs had done. Respondent admits that the PMCS Board approved a salary increase for Mrs. Bloom from $60,000.00 to $69,457.50 based on Respondent's recommendations. Fact Finding 77 see, Investigative Complaint and Answer, paragraph 107). Bloom, 11 -001 1 e 64 At the PMCS Board Meeting on July 5, 2006, the PMCS Board approved Executive Salaries (ID -27). At the PMCS Board Meetingg on July 26, 2006, the PMCS Board approved Employment Contracts /Bonuses (V'2 A). Mrs. Bloom's employment contract signed by her and PMCS Board President Michelle Dezonie with a date of July 26, 2006 (ID -28), was one of the employment contracts approved at the July 26, 2006, PMCS Board meeting. Fact Finding 74. Mrs. Bloom's salary increase commenced July 1, 2006. Mrs. Bloom's base salary remained $69,457.50 until her resignation from the PMCS in 2009. The Salary increase that Mrs. Bloom, as Assistant CEO of PMCS, received commencing July 1, 2006, resulted in her receiving a total of $28,372.50 of additional compensation over a three -year period from July 1, 2006, through June 30, 2009. 5. Regarding the Hiring of Respondent's Children bV PMCS: Respondent and Mrs. Bloom have two children named Priscilla Bloom and Mitchell Bloom. During the time period under review, Priscilla Bloom and Mitchell Bloom worked for PMCS. It was the policy of the PMCS to employ its students on a part -time basis. At the November 1, 2006, PMCS Board meeting, the PMCS Board voted to approve the part -time employment of Priscilla Bloom retroactive to June and the part -time employment of Mitchell Bloom retroactive to October. Priscilla Bloom worked in a receptionisticlerical position at PMCS from approximately June 2006 through July 2007. Mitchell Bloom initially worked in a maintenance capacity. At some point in time, Respondent terminated the employment of Mitchell Bloom over poor fob performance issues. At the June 6, 2007, PMCS Board meeting, Mitchell Bloom was hired by PMCS as a Technology Assistant. Priscilla Bloom's and Mitchell Bloom's hiring was recommended to the PMCS Board by Respondent as CEO and non - voting Board member. Fact Finding 83 c. Dennis Bloom admits that he recommended the hiring of his children for positions with the PMCS (Answer, at 31; Fact Findings 83 c -84. Such admission is conclusive, and the testimony pr—lco used by Respondent in an attempt to controvert his incontrovertible admission was not credible /reliable. Priscilla Bloom received wages from PMCS totaling $18,039.60, consisting of $6,930.00 received in 2006 and $11,109.60 received in 2007. Mitchell Bloom received wages from PMCS totaling $15,651.88, consisting of $1,126.13 received in 2006, $4,882.00 received in 2007, $300.00 received in 2008, and $6,543.75 received in 2011. However, the $6,543.75 that Mitchell Bloom received from PMCS in 2011- -when Respondent was no longer the CEO of PMCS - -is not part of the allegations in this case. 6. Regarding Radium, Inc.: From December 2006 to the present, Respondent has been the sole owner and CEO of an entity known as Radium, Inc. Articles of Incorporation filed for Radium, Inc. with the Pennsylvania Department of State on January 30, 2006, identified Respondent as an officer of Radium, Inc. As discussed more fully below, Radium, Inc. is significant to this case for two reasons. First, Radium, Inc. was involved with the 2007 expansion /renovation of the STC Bloom, 11 -001 a65 building for PMCS. Additionally, Respondent never disclosed on SFIs filed for the 2007, 2005, 2009 and 2010 calendar years any office, directorship or employment in Radium, Inc. It is the Investigative Division's contention that Respondent intentionally failed to disclose his interest in Radium, Inc. on his SFIs at a time when his official actions were financially benefiting Radium, Inc., and that such failure to disclose information required by law allowed him to use his position at PMCS to benefit his immediate family and business with which he is associated. Closing Statement and Brief of the Investigative Division, at 8- 9. 7. Regarding the 2007 Expansion Renovation Project: In 2007, the STC facility used by PMCS was expanded /renovated (for the second time, which project is also referred to herein as the "2007 Expansion Renovation Project" or `° roject." Respondent was involved in all aspects of the Project process, including negotiating leases as PMCS CEO and STC Pastor, determining scope of the Project, applying for loans, identifying subcontractors and advising the PMCS Board. During 2006 when the PMCS Board discussed the Project, Respondent participated in those discussions as the non - voting CEO. Respondent was in favor of the Project. Commencing on or about April 5, 2006, Respondent began advising the PMCS Board of the status of the Project and cost projections. Respondent continued to provide the PMCS Board with construction updates at PMCS Board meetings. The 2007 Expansion Renovation Project included but was not limited to additional classrooms, a gymnasium and parking area. The PMCS did not have the financial ability to borrow money to fund the Project. The Project was funded through STC. Without funding secured by STC, the Project could not occur. At the time PMCS was considering the Project, the PMCS had existing leases with the STC for space. At a PMCS Board meetingg on July 26, 2006, the PMCS Board approved a Lease Amendment Agreement dated August 1, 2006, which amended a lease amendment dated June 25, 2004, and the original lease dated June 5, 2003, including provisions for rent increases as a result of the expansionlrenovations. Respondent was present at this meeting and participated in discussions on this issue. At a minimum, Respondent's participation consisted of advising the PMCS Board that if the leases had been approved by counsel for the Charter School, then they should be satisfactory. Fact Finding 97 d. This lease amendment was signed on July 26, 2006, by Luddie Chatt, President of STC, and Michelle Dezonie, President of PMCS. Funding for the Project was obtained by Respondent as Pastor of STC. Specifically, in 2007 Sovereign Bank approved a loan to STC in the total amount of $3,900,000.00, of which $2.7 million was for the Project and the remaining portion was to support refinancing an existing mortgage. The Summary of Terms and Conditions for the proposed loan, loan commitment letter, Promissory Note and Loan Agreement for this loan were signed by Respondent on behalf of STC. We note that the cop of the Loan Agreement for the $3,900,000.00 loan provided USovereign Bank to STC that is in evidence as ID -68 includes a Project budget dated a 2, 2007, which lists "Radium- Security" next to the amount of $50,000.00. The record in this case does not include any evidence explaining or clarifying this notation. PMCS was not a signatory on any of the aforesaid loan documents. PMCS did not guarantee the payment of the loan. However, without leases from PMCS, funding for the Project would not be approved. STC's primary source for repayment of the loan from Sovereign Bank was to be the cash flow from PMCS as a result of increased rents. Bloom, 11 -001 X66 On or about June 7, 2007, Sovereign Bank's review committee approved the loan. On June 11, 2007, Sovereign Bank approved a $500,000.00 Bridge Loan for the STC to begin construction. The construction of the Project began prior to the July 18, 2007, settlement on the $3,900,000.00 loan from Sovereign Bank to STC. On July 9, 2007, a Master Lease Agreement between STC and PMCS was executed. This lease was signed by Luddie Chatt, President of STC, and Michelle Dezonie, President of PMCS. Settlement on the $3,900,000.00 loan from Sovereign Bank to STC occurred on July 18, 2007. Sovereign Bank loan documents related to the Project do not identify a General Contractor. The closing agenda for the STC loan reflected the contractor was "to be determined." All settlement documents were signed by Respondent on behalf of STC. The STC, not PMCS, was responsible for the construction of the building portion. of the Project, while PMCS was to pay for certain interior equipment. State Ethics Commission Executive Director Robert Caruso ( "Mr. Caruso ") testified that the records he reviewed in this matter did not include: • Any contracts between Radium, Inc. and STC; • Any contracts between Radium, Inc. and PMCS; • Any checks issued by Radium, Inc. to PMCS; • Any correspondence/memoranda from Radium, Inc. to PMCS; or • Any correspondence/memoranda from PMCS to Radium, Inc. Mr. Caruso testified that he had no independent knowledge of whether PMCS did any business with Radium, Inc. The bank records Mr. Caruso reviewed for Radium, Inc. did not include any deposits from checks written by PMCS. There was no indication in the bank statements and checks that Mr. Caruso reviewed of any payments of any nature from PMCS to Radium, Inc. Before payments from the STC's loan monies were distributed, backup bills had to be submitted to Sovereign Bank. Waiver(s) of mechanic's liens also had to be submitted to Sovereign Bank. The purpose of these requirements was to make the bank aware that the $2.7 million was being used for the construction of the renovations at STC for PMCS. Mr. Caruso testified that to the best of his understanding, the entire $2.7 million that was borrowed by STC for the construction of the 2007 Expansion Renovation Project was used for the construction of such renovations. Bank statements for the STC Church account confirm the deposit of $415,000 for Bridge Loan on June 12, 2007. Between June 12, 2007, and June 13, 2007, checks were issued to Dennis Bloom and Radium, Inc. in the amount of $100,000.00 each. The record does not establish whether the $100,000.00 payment to Respondent was relevant to this case. STC paid to Respondent's business, Radium, Inc., a total of $265,000.00 with respect to the Project, consisting of $181,000.00 in checks paid directly from STC to Radium, Inc. from STC accounts plus an additional $84,000 check drawn on the line of credit that STC had at Sovereign Bank. Mr. Caruso testified that he does not have personal knowledge as to why these payments were issued. Mr. Caruso also testified that he reviewed checks paid out by Radium, Inc., and that Radium, Inc. paid money to contractors. STC payments to Radium, Inc. commenced in June 2007. STC made the following payments to Radium, Inc., which payments Respondent avers were for the payment of Bloom, 11 -001 a�67 other contractors and not for Radium's use: Date of e osit Payee Amount Memo 06/04/07 Radium, Inc. $ 12,000 S77-addition mason arc itect 06/13/07 07 20 07 --Radium a ium, , Inc. Inc. 0 2,00 General contracting eneral contracting 09/10/07 Radium, Inc. 50,000 Repayloan 03/15/08 a ium, Inc. 5,000 General contracting d5 02108 a ium, nc. 2,000 General contracting $181,000 ID -47 is a bank statement for Radium, Inc.'s business checking account with PNC Bank for the period 6/1/2007 to 612912007. The beginning balance in this account as of June 1, 2007, was $43,839.07. Other information gleaned from this bank statement is detailed at Fact Findings 186 b -f. ID -48 is a copy of a check dated June 1, 2007, issued by STC payable to Radium, Inc. in the amount of $12,000.00. The check is signed by D. Bloom. The memo portion of the check states: "ST. Addition masonry/architect.' This check was deposited into Radium, Inc.'s business checking account with PNC Bank on or about June 4, 2007. ID -49 is a copy of check dated June 13, 2007, issued by STC payable to Radium, Inc. in the amount of $100,000.00. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. The memo portion of the check states: "General Contracting." This check was issued the day after Respondent effectuated a payment to STC in the amount of $415,000.00 from the Sovereign Bank construction account. This check was deposited into Radium, Inc.'s business checking account with PNC Bank on or about June 13, 2007. ID -59 is a copy of a check drawn from Radium, Inc.'s business checking account with PNC Bank. The check is dated June 18, 2007, and is made payable to Dennis Bloom in the amount of $55,000.00. The check is signed by Dennis Bloom. While the memo portion of the check refers to a loan, the investigation in this matter did not discover any evidence to confirm or contradict the noted existence of a loan. This check was issued five days after the aforesaid $100,000.00 deposit was made to the Radium, Inc. account from the STC account. This check was negotiated on or about June 20, 2007. Based upon our review of ID -47, ID -48, ID -49, and ID -59, we note the following. The beginning balance in Radium, Inc.'s business checking account with PNC Bank as of June 1, 2007 -prior to any relevant deposits of STC funds -was $43,839.07. Following the June 4, 2007, deposit into the account of the STC check in evidence as ID -48, in the amount of $12,000.00, two checks totaling $12,000.00 were written from the account bringing the balance back to $43,839.07 as of June 7, 2007. The purpose of the aforesaid two checks is not established by the record. On June 8, 2007, other funds in the amount of $37,960.00 were deposited into the account, and on June 11, 2007, a check in the amount of $37,960.00 was drawn from the account, bringing the balance once again to $43,839.07. The purpose of the aforesaid $37,960.00 check is not established by the record. On June 13, 2007, the STC check in evidence as ID -49, in the amount of $100,000.00, was deposited into the account, bringing the balance to $143,839.07. On June 20, 2017, Radium, Inc. check number 1008 in evidence as ID -59, in the amount of $55,000.00, was negotiated by Respondent, reducing the account balance to $88,839.07. The purpose of the $55,000.00 payment to Respondent by ID -59 is not established by the record, but of that $55,000.00 amount, $43,839.07 already belonged to Radium, Inc.; it was already in the account on June 1, 2007, before the STC checks were deposited. At most, $11,160.93 of the $55,000.00 check to Respondent (ID -59) was derived from the $100,000.00 deposit of the STC check in evidence as ID -49. Bloom, 11 -001 al' ge-68 ID -51and ID -52 are copies of checks that were deposited into the Radium, Inc. business checking account during the period 6/30/2007 to 713112007. ID -51 was a paygent made by Respondent from the Sovereign Bank construction account on July 10, 2007, in the amount of $84,000 made payable to Radium, Inc. The Sovereign Bank check (ID -51 was signed by Respondent. The $84,000 check was deposited in Radium, Inc.'s PNC Bank business checking account on or about July 13 -16, 2007. The memo portion of the check stated "For Rise Construction Steel." I D -52 is a copy of a check drawn from a First National Bank of Palmerton account in the name of STC. The check is dated July 12, 2007, and is made payable to Radium, Inc. in the amount of $2,000.00. The check bears signatures of the names of individuals other than Dennis Bloom as signatories for STC. The memo portion of the check states: "General Contracting." ID -54 is a copy of a check dated September 10, 2007, issued by STC to Radium, Inc. in the amount of $50,000.00, that was deposited into Radium, Inc.'s PNC Bank business checking account on or about September 10, 2007. The check bears signatures of the names of individuals other than Respondent as signatories for STC. The memo portion of the check states: "repay loan." The investigation in this matter did not discover any promissory notes or loan documents between STC and Radium, Inc. 1D -56 is a copy of a check from STC to Radium, Inc. dated March 6, 2008, in the amount of $5,000.00, which was deposited into Radium, Inc.'s PNC Bank business checking account on or about March 6, 2008. The check bears signatures of the names of individuals other than Respondent as signatories for STC. The memo portion of the check in evidence as ID -56 states: "General Contracting." ID -58 is a copy of a check from STC to Radium, Inc. dated May 1, 2008, in the amount of $12,000.00, which was deposited into Radium, Inc.'s PNC Bank business checking account on or about May 2, 2008. The check bears signatures of the names of individuals other than Respondent as signatories for STC. The memo portion of the check states: "General Contracting excavation." 8. Re: Respondent's SFIs: Respondent Bloom, in his official capacity as CEO of the PMCS, was required to file an SFI each year he held the CEO position and the year after leaving the position. The calendar years that are the subject of the allegations in this case are calendar years 2007, 2008, 2009, and 2010. The SFI forms on file with the PMCS for Respondent for calendar years 2007, 2008, 2009, and 2010 were deficient. I D -33 is an SFI of Respondent Bloom that purports to be for calendar year 2008 that is dated 115107. This SFI is deficient in blocks 3, 4, 5, 13, and 14. Block 13 did not list Radium, Inc. as a business with which Respondent had an office, directorship, or employment. Blocks 3, 4, and 5 were not completed. This SFI bears a date that is inconsistent with the calendar year for which the form purports to be filed. Respondent's SFI for calendar year 2007, which is in evidence as ID -34, is deficient in blocks 5, 8, 9, 10, 11, 12, 13, 14, and 15. Block 13 did not list Radium, Inc. as a business with which Respondent had an office, directorship, or employment. Blocks 5, 8, 9, 10, 11, 12, 13, 14, and 15 were not completed. Respondent's SFI in evidence as ID -35, which purports to be for calendar year 2009, is deficient in blocks 5 and 13. Block 13 did not list Radium, Inc. as a business with which Dennis Bloom had an office, directorship, or employment. Block 5 was not completed. Mr. Caruso testified that he believes Block 14, pertaining to "Financial Interest Bloom, 11 -001 Tag_e6 9 in any Legal Entity in Business for Profit," is also deficient. This SFI bears a date that is inconsistent with the calendar year for which the form purports to be filed. Respondent's SFI for calendar year 2009, which is in evidence as ID -36, is deficient in block 13. Block 13 is marked "none" and does not list Radium, Inc. as a business with which Respondent had an office, directorship, or employment. Mr. Caruso testified that he believes Radium, Inc. should have been disclosed in Block 14, pertaining to "Financial Interest in any Legal Entity in Business for Profit," as well. Respondent's SFI for calendar year 2010, which is in evidence as ID -37, is deficient in block 13. Block 13 did not list Radium, Inc. as a business with which Respondent had an office, directorship, or employment. The Ethics Act has its own definition of the term "income" that is used for purposes of fling SFIs pursuant to the Ethics Act. 65 Pa.C.S. § 1102. The SFI forms that are in evidence as ID -34 and ID -37 do not list any sources of income. However, W -2 wage and tax statements on file with the PMCS detail the following annual wages aid to Dennis Bloom for tax/calendar years 2007 through 2010:1 2007: $147,472.26; (2) 2008: $143,230.70; (3) 2009: $137,213.40; and (4) 2010: $146,828.45. Respondent received income from the TCA of $12,117.90 in 2007. TCA is listed as a source of income on ID -33 but not ID -34. In 2007 and 2008, Respondent received monthly rental payments in the amount of $1,800.00 from Donald and Tarrence Lynch; however, Respondent failed to disclose a source of income as to such payments. On his SFIs filed for the 2007 and 2008 calendar years, Respondent did not list Radium, Inc. as a source of income. Respondent avers that he did not receive income in excess of $1,300 from Radium, Inc. (Answer, at 26, paragraph 73; see, Fact Finding 50), and to support this claim, Mrs. Bloom ti�i tesed that the joint tax returns Respondent and Mrs. Bloom filed for the years 2007 and 2008 do not reflect any income from Radium, Inc. On 212312007, Respondent withdrew $175,447.79 from a T. Rowe Price Latin America account he owns. The funds were deposited to an account he controlled. However, there is no basis in the record to conclude that these funds consisted of or included dividends, capital gains, or other forms of reportable income as the Ethics Act defines the term. 65 Pa.C.S. � 1102; see, Abraham, Opinion 03 -008. STC bank records confirm payments issued to Respondent during the relevant calendar years of 2007, 2008, and 2009, which payments Respondent asserts were loan payments and not income (Answer, at 27, paragraph 77 b; see, Fact Finding 55). In 2007, such payments totaled $175,000.00. In 2008, such payments totaled $266,000.00. In 2009, such payments totaled $84,500.00. Respondent did not disclose the Tobyhanna Impact Athletic Center ( "TIAC ") as a direct/indirect source of income on an SFI he filed for the 2008 calendar year. Respondent avers that no such disclosure was required Answer, at 62, paragraph 184; see, Fact Finding 133), and there is an insufficient basis in the record to conclude tt at such disclosure was required. The letters /Amended Notices of Investigation dated February 7, 2012, and February 10, 2012, which are in evidence as ID -12 and ID -13, notified Respondentof deficient filings of Statements of Financial Interests. Specifically, each letter /Amended Notice of Investigation notified Respondent of the allegation that Respondent violated Sections 1105(b)(5), (8), and (9) of the Ethics Act "when he failed to disclose on SFIs filed for the 2007, 2008, 2009 and 2010 calendar years all direct/indirect sources of income, his office, Bloom, 11 -001 age 70 directorship or employment in any business for profit and financial interest in any legal entity in business for profit." ID -12, at 1, 3; ID -13, at 2 -4. From February 7, 2012, to the date of Mr. Caruso's testimony in the hearing in this matter (April 25, 2017), the Investigative Division was not provided with any amended SFIs from Respondent. Having summarized the above relevant facts, we must now determine whether the actions of Respondent violated Sections 1103(a), 1105(b }(5), 1105(b)(8), and/or 1105(b)(9) of the Ethics Act as to the remaining allegations of the Investigative Complaint. One of Respondent's responsibilities as CEO of PMCS was to make recommendations to the PMCS Board on executives' or administrators' salaries /raises. Answer, at 3, 35 (paragraph 105); see also, Fact Finding 149 f; Fact Finding 154 i(1); April 2�7 Tr., at 281; Fact Finding 156 ril 25, 2017, Tr., at 166). From her initia Hiring by in May 2003 until her resignation from PMCS in 2009, Mrs. Bloom was an administrator with PMCS. Respondent used the authority of his public position as CEO of PMCS when, after March 2, 2006, and on or before July 1, 2006, he submitted an undated memo to the PMCS Board requesting raises for himself, Mrs. Bloom, and Mr. Severs for the fiscal year beginnin July 1, 2006. Fact Findings 75; 209. The memorandum is addressed to "Board of the PMCS` from "C.E.O." regarding "Raises of personnel." The memo recommended that Mrs. Bloom to be brought up from $60,000.00 to $69,457.50 as a "bare minimum raise" due to her having been "overlooked" for the prior three years. Fact Finding 75 a. When Respondent presented to the PMCS Board the aforesaid memorandum, he stated that he and his wife had worked for a few years without a raise, and he mentioned the work that Mr. Severs had done. The resulting private pecuniary benefit that Mrs. Bloom received was the recommended raise. Respondent admits that the PMCS Board approved a salary increase for Mrs. Bloom from $60,000.00 to $69,457.50 based on Respondent's recommendations. Fact Finding 77 (see, Investigative Complaint and Answer, paragraph 107). At the PMCS Board Meeting on July 5, 2006, the PM Board approved Executive Salaries (ID -27). At the PMCS Board Meeting on July 26, 2006, the PMCS Board approved Employment Contracts /Bonuses (ID -27A). Mrs. Bloom's employment contract signed by her and PMCS Board President Michelle Dezonie with a date of July 26, 2006 (ID -28), was one of the employment contracts approved at the July 26, 2006, PMCS Board meeting. Fact Finding 74. Commencing July 1, 2006, Mrs. Bloom's salary increased to $69,457.50. Mrs. Bloom's base salary remained $69,457.50 until her resignation from the PMCS in 2009. The salary increase that Mrs. Bloom, as Assistant CEO of PMCS, received commencing July 1, 2006, resulted in her receiving a total of $28,372.50 of additional compensation over a three -year period from July 1, 2006, through June 30, 2009. Respondent contends that no violation of Section 1103(a) of the Ethics Act may be found as to Respondent's recommendation that Mrs. Bloom receive the aforesaid raise based upon the following arguments: That based upon the testimony of Ms. Thomas - Dezonie and Mr. Ramos that the issue was raised and investigated prior to the PMCS Board vote in July 2006, the violation would have occurred outside the five -year statute of limitations period; That the Commission is foreclosed from finding that Respondent committed a conflict of interest in recommending his wife receive a raise since the raise was granted by the PMCS Board; Bloom, 11 -001 a71 • That the Commission is estopped from questioning the validity of compensation of officers which was approved by the PMSD when it renewed the PMCS charter in 2006; and • That because the Investigative Division did not file a reply to the allegations contained in the New Matter portion of Respondent's Answer, those averred facts are admitted. Memorandum of Law Filed on Behalf of Respondent Dennis Bloom, at 12 -21. We reject the aforesaid arguments. With regard to the first argument above, we have determined that Respondent submitted the aforesaid memorandum to the PMCS Board within the limitations period. See, Fact Findings 209 -209 f. With regard to the second argument above, we note that the element of use of authority of office is not limited merely to voting, but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. There is no factual basis in the record for the third argument above. Additionally, Respondent has not cited any legal authority for this argument, and we reject it. As to the fourth argument above, we note that the Regulations of the State Ethics Commission provide that New Matter raised by a respondent in his Answer does not require a reply by the Investigative Division. 51 Pa. Code § 21.5(k)(2). With each element of a violation of Section 1103(a) established, we hold that Respondent violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when in 2006, he, as CEO of PMCS, recommended to the PMCS Board a pay increase for his wife, who was employed by PMCS. We also determine that Respondent violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), with regard to recommending the hiring of his children for positions with PMCS. Respondent used the authority of his public position as CEO of PMCS when he recommended that his children be hired for positions with PMCS. At the November 1, 2006, PMCS Board meeting, the PMCS Board voted to approve the part-time employment of Priscilla Bloom retroactive to June and the part -time employment of Mitchell Bloom retroactive to October. Priscilla Bloom's and Mitchell Bloom's hiring was recommended to the PMCS Board by Dennis Bloom as CEO and non - voting Board member. Fact Finding 83 c. Dennis Bloom admits that he recommended the hiring of his children for positions with the PMCS (Answer, at 3); Fact Findings 83 c -84. The resulting private pecuniary benefits consisted of the wages the children received. Priscilla Bloom received wages from PMCS totaling $18,039.60, consisting of $6,930.00 received in 2006 and $11,109.60 received in 2007. During the relevant years, Mitchell Bloom received wages from PMCS totaling $9,108.13, consisting of $1,126.13 received in 2006, $4,882.00 received in 2007, and $3,100.00 received in 2008. Respondent contends that no violation of Section 1103(a) of the Ethics Act may be found as to Respondent's recommendation that his children be hired by PMCS based upon the following arguments: Bloom, 11 -001 a�72 • The case of Dodaro v. State Ethics Commission, 527 Pa. 539, 594 A.2d 652 (1 991) would apply tot is case; • The fact that the Ethics Act's definition of "income" (used for disclosure of sources of income on SFIs) excludes "miscellaneous, incidental income of minor dependent children" supports Respondent's contention that the children's compensation would not constitute a "private pecuniary benefit "; • The PMCS Board, not Respondent, made the decision to hire Respondent's children; • As a matter of law, wages paid for hours worked cannot be a pecuniary benefit forming the basis for a violation of the Ethics Act; and • Because other PMCS students were also hired by PMCS for wages, the class/subclass exclusion applies. We reject the above arguments for the following reasons. First, the Dodaro case does not apply to this case because it was decided under a prior version o t e Ethics Act that applied a different standard which is no longer pplicable. As noted in Snyder v. State Ethics Commission, 686 A.2d 843 (Pa. Cmwlth. 1996), allocatur denied, 0029 M.U. Allocatur Docket 1997 (Pa. December 22, 1997), Dodaro was not-decided under the current conflict of interest standard, which bases con acts of interest on private pecuniary gain regardless of whether such compensation is otherwise provided for by law. Moreover, the amount of compensation that Respondent's children received totaled a substantial amount -- $27,147.73- -such that the finding of a violation in this case is not "unreasonable." Additionally, the fact that the Ethics Act's definition of "income" (used for disclosure of sources of income on SFIs) excludes "miscellaneous, incidental income of minor dependent children" simply means that the filer is no longer required to report his children's income on his SFI. 1 It has nothing to do with the elements of conflict of interest, which encompass a private pecuniary benefit to a public official'slpublic employee's child of any age. 65 Pa.C.S. § 1102. As for the fact that the PMCS Board made the decision to hire Respondent's children, such does not negate the fact that Respondent, as CEO of PMCS, recommended the hirings. As noted above, the element of use of authority of office is not limited merely to voting, but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Jul iante, supra. The resulting private pecuniary benefit to Respondent's children consisted of the $27,147.73 that they received in compensation. We disagree with Respondent that wages Vcannot be a pecuniary benefit. For anyone who wants or needs a fob, securing a fob for wages most definitely results in a pecuniary benefit. Finally, the class/subclass exclusion to the definition of "conflict" or "conflict of interest" does not apply to Respondent's recommendation that the PMCS hire his children. First, it is questionable whether the class/subclass exclusion could apply to hiring employees. Second, the November 1, 2006, hirings of the Bloom children (ID -29) were retroactive. There is no basis in the record to conclude that other children were hired by PMCS retroactively or that other children were hired for the same positions, same rate of pay, and same number of hours as the Bloom children. With each element of Section 1103(a) established, we hold that Respondent Bloom violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he, as CEO of PMCS, recommended the hiring of his children for positions with PMCS. Disclosing sources of income of immediate family members on SFI forms was required under the first version of the Ethics Act, Act 170 of 1978, but that requirement was found to be unconstitutional in 1983. Denoncourt v. State Ethics Commission, 504 Pa. 191, 470 A.2d 945 (1983). The Dodaro footnote reference tote a inition o income in the second version of the Ethics Act {Act 9 of 1989� was dicta. See, Dodaro, s• upra, 527 Pa. at 545, 594 A.2d at 655 (Note 3). Bloom, 11 -001 X73 We hold that no violation of Section 1103(a) of the Ethics Act occurred with regard to Respondent's actions relating to participating /recommending, in or about July 2006, that PMCS enter into a Lease Amendment Agreement with STC. relative to the then proposed 2007 Expansion Renovation Project, where factually, STC- -a non- governmental, nonprofit corporation with its own board of directors, and not PMCS — subsequently chose to do whatever business it may have done with Respondent's business, Radium, Inc., nearly a year later. (As for the $55,000.00 payment made to Respondent by ID -59, as noted above, $43,839.07 already belonged to Radium, Inc. and was already in the Radium, Inc. account on June 1, 2007, before any relevant STC checks were deposited.) Finally, with regard to Respondent's SFIs for calendar years 2007, 2008, 2009, and 2010, Respondent acknowledges: "It is clear, even from the most precursory review of these statements, that they were in deplorable condition with glaring discrepancies ...." Memorandum of Law Filed on Behalf of Respondent Dennis Bloom, at 34. We agree. We hold that Respondent violated Sections 1105(b)(5), 1 8 and (9) o the Ethics Act when he filed deficient SFIs for calendar years 2007, 2008, 2D 9, and 2010. Section 1107(13) of the Ethics Act empowers this Commission to impose restitution in instances where a public official /public employee has obtained a financial gain in violation of the Ethics Act. Restitution in the amount of $55,520.23 is warranted in this case, calculated as follows: $28,372.50 (Mrs. Bloom's additional salary from the raise) + $27,147.73 (compensation to Bloom children) = $55,520.23. Accordingly, Bloom is directed to make payment by certified check or money order in the amount of $55,520.23 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (301h) day after the mailing date of this adjudication and Order. Non - compliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. As Chief Executive Officer ( "CEO ") of the Pocono Mountain Charter School ( "PMCS ") from 2003 until December 2010, Respondent Dennis Bloom ( "Bloom ") was a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Bloom violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when in 2006, he, as CEO of PMCS, recommended to the PMCS Board of Trustees a pay increase for his wife, who was employed by PMCS. 3. Bloom violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he, as CEO of PMCS, recommended the hiring of his children for positions with PMCS. 4. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred with regard to Bloom's actions relating to participating /recommending, in or about July 2006, that PMCS enter into a Lease Amendment Agreement with the Shawnee Tabernacle Church ( "STC") relative to the then proposed 2007 Expansion Renovation Project, where factually, STC —a non - governmental, nonprofit corporation with its own board of directors, and not PMCS --- subsequently chose to do whatever business it may have done with Bloom's business, Radium, Inc., nearly a year later. Bloom violated Sections 1105(b)(5), (8), and (9) of the Ethics Act when he filed deficient Statements of Financial Interests for calendar years 2007, 2008, 2009, and 2010. In Re: Dennis Bloom, File Docket: 11 -001 Respondent Date Decided: 9127117 Date Mailed: 1016117 ORDER NO. 1722 As Chief Executive Officer ( "CEO ") of the Pocono Mountain Charter School ( "PMCS "), Dennis Bloom � "Bloom ") violated Section 1103(a) of the Public Official and Employee Ethics Act ('Ethics Act "), 65 Pa.C.S. § 1103(a), when in 2006, he, as CEO of PMCS, recommended to the PMCS Board of Trustees a pay increase for his wife, who was employed by PMCS. Bloom violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he, as CEO of PMCS, recommended the hiring of his children for positions with PMCS. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred with regard to Bloom's actions relating to participating /recommendin in or about July 2006, that PMCS enter into a Lease Amendment Agreement witNile Shawnee Tabernacle Church ( "STU) relative to the then proposed 2007 Expansion Renovation Project, where factually, STC —a non - governmental, nonprofit corporation with its own board of directors, and not PMCS — subsequently chose to do whatever business it may have done with Bloom's business, Radium, Inc., nearly a year later. 4. Bloom violated Sections 1105(b)(5), (8), and (9) of the Ethics Act when he filed deficient Statements of Financial Interests for calendar years 2007, 2008, 2009, and 2010. 5. Bloom is directed to make payment by certified check or money order in the amount of $55,520.23 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, 1011 M • • .