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STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120 -0400
n Re: Pearce [Pearse] (Perry) O'Malley, File Docket: 15 -015
Respondent X -ref: Order No. 1737
Date Decided: 6127118
Date Mailed: 716118
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
Monique Myatt Galloway
Michael A. Schwartz
Shelley Y. Simms
This is a final adjudication of the State Ethics Commission.
FACSIMILE: 717- 787 -0806
WEBSITE: www.ethics. a. ov
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 ., by the above -named Respondent. At the
commencement of its investigation, the nvestigative Division served upon Respondent
written notice of the specific allegations. Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an "Investigative Complaint." An Answer was filed and a hearing was requested. A
Stipulation of Findings and a Consent Agreement were subsequently submitted by the
parties to the Commission for consideration. The Stipulated Findings are set forth as the
Findings in this Order. The Consent Agreement has been approved.
ALLEGATIONS:
That Pearse O'Malley, a public official /public employee in his capacity as Executive
Director of the Butler Count Housing Authority Pennsyivania and the Executive Director
of the Redevelopment Authority of Butler County Pennsy)lvania), violated [Sections
1103(a), 1105(b)(5), 1105 b) 7), and 1105(b)(8) of the State Ethics Act (Act 93 of 1998), 65
Pa.C.S. §§ 1103(a),1105( �)(�) 1105(b)(7), and 1105(b)(8)] when he utilized the authority
of his public employment to realize a private pecuniary benefit for himself and /or a
business with which he is associated, namely the Pennsylvania Affordable Housing
Corporation (PAHC), when he utilized the physical assets of the Butler County Housing
Authority /Butler County Redevelopment Authority, to include but not be limited to: office
space, vehicle, EZ PASS, email, staff, internet, etc., in an effort to further the interests of
PAHC; when he failed to submit leave and /or otherwise seek pre- approval to engage in
extended travel beyond what was necessary for official business, when a portion of such
travel was personal and /or related to the Housing and Redevelopment Insurance
Exchange (HARIE), a business with which he was associated; when he utilized the credit
card of the Butler County Housing Authority /Butler County Redevelopment Authority to pay
for personal expenses not related to official business; and when he failed to disclose the
name and address of any direct or indirect source of income totaling in the aggregate
$1,300 or more, including but not limited to income received from the Butler County
Housing Authority for calendar years 2011 through and including 2014; when he failed to
disclose the name and address of the source and the amount of any payment for or
reimbursement of actual expenses for transportation and lodging or hospitality received in
connection with public office or employment where such actual expenses for transportation
O'Malley. 15 -015
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and lodging or hospitality exceed[ed] $650 in an aggregate amount per year for calendar
years 2010 through and including 2014, including but not limited to expenses paid by
HARIE; when he failed to disclose his holding of any office, directorship or employment of
any nature whatsoever in any business entity, for calendar years 2010 through and
including 2014, namely the offices) he held with the Housing and Redevelopment
Insurance Exchange (HARIE), the Butler Area Housing & Community Development
Corporation, Historic LaFayette, Inc., the Butler County Homeownership Corporation, and
PA Affordable Housing Corp.
II. FINDINGS:
1. Pearse O'Malley ( "O'Malley ") was employed as the Executive Director for the
Housing Authority of the County of Butler from July 13, 1992, until March 13, 2015.
a. O'Malley also served as the Executive Director for the Redevelopment
Authority of the County of Butler from November 1, 1995, until March 13,
2015.
b. O'Malley served as the Secretary of the Authority Board of Directors as a
result of his employment as Executive Director for each entity. O'Malley also
held office, directorship or employment with the Butler Area Housing &
Community Development Corporation, the Butler County Home Ownership
Corporation, Butler Area Rehabilitation, Inc. and City of Butler
Redevelopment Authority as a result in part of his employment as the
Executive Director of the Authority.
C. O'Malley was terminated from his positions as Executive Director for both
Authorities on March 13, 2015.
1. O'Malley had previously been placed on paid administrative leave
from his position of Executive Director for the Authority effective
January 15, 2015.
d. O'Malley also served as the Interim Executive Director of the City of Butler
Redevelopment Authority from approximately May 2004 through
approximately July 2011.
2. O'Malley's duties and responsibilities in relation to his position of Executive Director,
as well as Secretary for the Housing Authority Board, are established in the Housing
Authority By -Laws.
a. By -Laws for the Housing Authority mandate that the individual serving as the
Executive Director of the Housing Authority is also to serve as the Secretary
of the Housing Authority Board with the duties and responsibilities for each
position, in part, as follows:
1. Executive Director:
aa. The Executive Director is to be the Secretary of the Housing
Authority Board;
bb. The Executive Director is to have general supervision over the
administration of the business and affairs of the Housing
Authority subject to the direction of the Housing Authority; and
cc. The Executive Director is to be charged with the management
of the housing projects of the Housing Authority.
O'Malley, 15 -015
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2. Board Secretary:
aa. The Secretary is to keep the records of the Housing Authority;
bb. The Secretary is to record all votes of meetings of the Housing
Authority Board;
cc. The Secretary is to keep a record of the Housing Authority
proceedings in a journal for such purpose;
dd. The Secretary is to perform all duties incident to his office;
ee. The Secretary is to keep in safe custody the Housing Authority
seal and have the power to affix such seal to all contracts and
instruments authorized to be executed by the Housing
Authority,
ff. The Secretary is to have the care and custody of all funds of
the Housing Authority and is to deposit such in the name of the
Housing Authority in such bank or banks the Housing Authority
may select;
gg. The Secretary is to sign all orders and checks for payment of
money and is to payout and disperse said moneys under the
direction of the Housing Authority with all checks to be
countersigned by the Housing Authority Board Chairman
unless otherwise authorized by Resolution;
hh. The Secretary is to keep regular books of accounts showing
receipts and expenditures and is to render to the Housing
Authority an account of his transactions and the financial
condition of the Housing Authority at each regular meeting or
sooner if requested.
3. The Executive Director definition, duties and responsibilities, and required
knowledge, skills and abilities are additionally detailed within the Executive Director
position fob description on file at the Housing Authority.
a. The definition for the position specifies, "This is administrative work involving
the overall professional and administrative direction, planning, and
management of a housing authority."
1. The definitionspecifically identified the position of Executive Director
as responsible for performing work of an administrative nature.
b. Duties and responsibilities (a /k /a examples of work) as detailed in the job
description include, in part, the following:
1. Planning, organizing, and coordinating all phases of a housing
authority, including, but not limited to maintenance, tenant selection,
occupancy, management and tenant relations, Section 8 rental
assistance, social services, and administrative services;
2. Acting for the Board in all administrative services;
3. Advising the Board on all housing authority management;
O'Malley, 15 -015
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4. Developing and recommending administrative policies, procedures,
and regulations and participation in the development of operational
policies;
5. Interpreting Board policies and resolving major policy and
administrative questions; and
6. Representing the housing authority at conferences and meetings.
C. Required knowledge, skills, and abilities as identified in the job description
include, in part, the following:
1. Knowledge of the principles of management, including budgeting,
accounting, personnel, and procurement;
2. Knowledge of the principles and methods of administration and
supervision; and
3. Ability to supervise and direct the work of subordinates.
d. Documented on the job description in O'Malley's handwriting was, "To KG eff
711100."
1. KG represents Karen Grabbe Listisen, Human Resources
Administrative Assistant.
4. The Executive Director Interview Notice /Availability Survey O'Malley signed, dated
June 26, 1992, regarding his interview for the osition of Housing Authority
Executive Director documented the job type as a "full- time" position.
a. The United States Bureau of Labor classifies full time work as thirty -five (35)
hours or more worked per week.
5. A five - Member Board of Directors governs both the Housing Authority and the
Redevelopment Authority (hereinafter collectively referred to as "Authority" unless
specified otherwise.)
a. Board Members are appointed to five -year terms by the Butler County
Commissioners.
b. Although the Housing Authority and Redevelopment Authority are separate
and independent entities, each entity is governed by the same five- Member
Board of Directors.
1. Each Board Member is specifically appointed to each entity's Board of
Directors by the Butler County Commissioners.
C. O'Malley, as the Executive Director, reported to the Authority Board of
Directors in the Authority's overall chain -of- command.
6. During O'Malley's most recent tenure, the Authority Board each held one le islative
meeting per month on the second Friday of the month at 10 a.m. and q1 a.m.
respectively in the conference room of the Authority office located at 114 Woody
Drive, Butler, PA 16001.
a. Special meetings were held as necessary.
Ovalle , 15 -015
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7. Although the Board Chairman of each body was to preside over and run the
Authority meetings, O'Malley routinely carried out these functions.
8. Karen Druschel ( "Druschel "), Housing Authority Executive Secretary, routinely
attended and took minutes of both Authority meetings.
9. During O'Malley's tenure, the Board Members for the Authorities received an
agenda packet for review prior to the monthly legislative meetings.
10. The agenda packets routinely consisted of the agendas for the upcoming meetings,
minutes of the prior month's meetings, correspondence received during the prior
month, departmental reports, a check register representing all checks issued for the
prior calendar month, etc.
a. The check register included within the packet identified the payee, a general
payment description, and the amount paid.
1. Check numbers, check dates, and budget line items from which the
payments were made were not documented on the check register.
b. All checks documented on the register were generated and distributed prior
to the Board specifically approving the check register and payments
documented on such.
1. The Board's approval of the check register at the respective monthly
meetings represented ratification after - the -fact.
11. Bills received by each Authority were processed pursuant to established Authority
procedures and then provided to O'Malley, for his review and approval with the
exception of utility bills and HAP (Section 8) payments.
a. O'Malley routinely approved bills for payment via signing his name or initials
to the bill /invoice received.
b. Once reviewed and approved by O'Malley, the billslinvoices were directed to
David Schnur, Comptroller, for signature.
C. Schnur subsequently directed the bills/invoices to the Finance Department
for check generation.
12. Signature authority over both Authority accounts from at least January 2010 through
March 2015 was maintained by O'Malley as the Executive Director, the Housing
Authority Comptroller, and the Chairman of the Authority Boards.
a. Checks issued from Authority accounts required at least two (2) signatures.
b. Facsimile stamps existed at the Authority office in the name of O'Malley and
the Chairman of the Authority Board.
13. The Authorities' offices are open to the public Monday through Friday, 8:30 a.m. to
4:30 p.m.
a. Regular working hours for Authority administrative personnel span Monday
through Friday, 8:30 a.m. to 4:30 p.m., with a one -hour unpaid lunch period.
1. Full time administrative personnel work seven (7) hours per day/thirty-
five (35) hours per week.
O'Malley, 15 -015
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b. Regular working hours for Authority maintenance personnel span Monday
through Friday, 8:00 a.m. to 4:30 p.m., with a one -half hour unpaid lunch
period.
1. Full -time maintenance personnel work eight (8) hours per dayfforty
(40) hours per week.
THE FOLLOWING FINDINGS RELATE TO THE AUTHORITY'S PERSONNEL POLICIES,
EMPLOYEE HANDBOOK, AND TRAVEL EXPENSE POLICIES.
14. The Authority maintains and utilizes a Personnel Policy and Procedures manual in
association with the day -to -day operations of the Authority.
15. Authority staff members were made aware of the Board adoption of the 2010
Employee Handbook via memorandum from O'Malley dated August 2, 2010.
a. O'Malley's memo identified the Board's adoption of the new Employee
Handbook at the June 11, 2010, Board meetings.
b. O'Malley's memo required that staff members acknowledge receipt of the
Handbook, their reading of the handbook, and understanding of the
handbook by signing an attached form and providing such to Grabbe-
Listisen.
C. The attached form indicated, in part, ":..Your handbook includes policies that
have been created to insure compliance with legal requirements and to
promote a harmonious work environment between all employees at all levels
of the Housing and Redevelopment Authorities of the County of Butler."
1. The Handbook applied to all Authority employees including O'Malley
as the Executive Director.
16. The Authority Employee Handbook in effect as of June 11, 2010, was composed of
specific sections including, but not limited to, Employment Policies and
Compensation and Benefits.
a. SubJects addressed under the Employment Policies section included, in part,
the following:
1. Conflict of Interest and Outside Employment;
2. Travel Expense Reimbursement;
3. Personal Use of Property;
4. Hours of Work; and
5. Absenteeism.
b. Subjects addressed under the Compensation and Benefits section included,
in part, the following:
1. Sick Pay; and
2. Vacation.
O'Malle , 15 -015
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C. As the Executive Director of the Authority, O'Malley was accountable to the
Board for the operation of the Authority and for implementing policies of the
Authority.
17. The Conflict of Interest and Outside Employment Section of the Employee
Handbook specified, in part, that business dealings that appear[ed) to create a
conflict between the interests of the Authority and an employee were unacceptable.
a. This section further provides that no employee is permitted to solicit or
accept gifts of significant value (i.e., in excess of $100.00), lavish
entertainment or other benefits from potential and actual customers,
suppliers or competitors, without the knowledge and/or authorization of the
Executive Director of the Authority.
18. The Travel Expense Reimbursement Section within the Employee Handbook
identified that Authority employees were eligible for reimbursement of certain
expenses incurred in conjunction with work - related traveling.
a. All expenses submitted to the Authority for reimbursement were to relate to
expenses incurred by the employee while on work - related business only.
b. Meal allowances for representatives of the Authority while in travel status
were not to exceed $10.00 for breakfast, $15.00 for lunch, and $25.00 for
dinner.
1. The original printing of the Employee Handbook in 2010 incorrectly
documented the dinner allowance as $20.00.
C. Receipts were required for reimbursement for any meals which exceeded the
specified guidelines.
1. Receipts are not required for meal expenses falling within the
specified guidelines.
aa. Any funds issued for meal allowances while in travel status
which were not utilized were not required to be returned to the
Authority.
d. Any additional expenses (i.e., registration fees, parking, tolls, business calls,
reasonable tips, and connecting transportation) of more than $10.00 were to
be supported by receipts and other documentation of actual expense.
19. The Personal Use of Property Section within the Employee Handbook expanded the
property classification to include not only property but supplies and equipment as
welf.
a. The Employee Handbook documented that personal use of Authority
property, supplies, and equipment was "unauthorized."
20. The Hours of Work Section within the Employee Handbook specified, in part, that
the Authority maintain work hours compatible with Federal and State regulations.
a. Hours of work for Administrative employeeswere documented as 8:30 a.m. —
4:30 p.m. with a one -hour unpaid lunch.
b. Hours of work for Maintenance employees were documented as 8:00 a.m. —
4:30 p.m, with a one -half -hour unpaid lunch.
O'Malley, 15 -015
Page 8
C. Employees were expected to report to work at or before their scheduled start
time.
21. The Absenteeism Section within the Employee Handbook specified, in part, that
Authority employees were expected to report to work on time and on a regular
basis.
a. The Employee Handbook defined an absence as, "being scheduled to work
and not reporting to work for that shift or leaving prior to the scheduled end of
your shift.
22. The Sick Leave Section within the Employee Handbook specified, in part, that the
Authority provide paid sick leave for all eligible employees.
a. Regular, full -time employees were entitled to fifteen (15) days of sick leave
per year and could accrue up to a maximum of ninety (90) days of paid sick
leave.
1. Employees who accumulated more than ninety (90) sick days were
permitted to sell back the unused sick days in excess of ninety (90)
days to the Authority at the rate of one (1) day of pay for every three
(3) days sick leave with a minimum of five (5) sick days sold back to
the Authority in exchange for fifteen days accumulation.
aa. The sick day sell back provision was initially omitted from the
Employee Handbook adopted to June 2010.
bb. The sick day sell back provision was added back into the
Employee Handbook via memorandum from O'Malley dated
February 18, 2011.
23. The Vacation Section within the Employee Handbook specified, in part, that the
Authority recognized the importance of vacation time and that employees who
completed their probationary period were eligible to receive vacation days.
a. Vacation time is an earned benefit accrued at the following rate:
Years of Service Vacation Days per Year
-5 To-
6-15 15
16+ 20
b. Employees were permitted to accumulate a total of thirty (30) vacation days.
1. Vacation days accumulated over thirty (30) days were forfeited.
24. The Authority Employee Handbook approved by the Authority, Board at its June 11,
2010, regular meeting and subsequent amendments to the polcies contained within
the Handbook did not specifically identify parameters regarding actual travel
practices.
a. The number of days in advance of a conference/training that an Authority
representative may depart and/or the number of days after the conclusion of
a conference/training that an Authority representative may return was not
identified.
1. Authority representatives received their regular salaries for days in
travel status which related to Authority business.
O'Malle , 15 -015
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b. Although not specifically enumerated in the travel policy, Authority officials
and employees were permitted a travel day before the start of a conference
and a travel day at the conclusion of a conference.
25. O'Malley, as the Authority Executive Director, determined the need for and
ultimately approved all Authority - related travel (i.e., training, conferences, seminars,
etc.) to occur by Authority employees.
a. O'Malley determined the need for and approved his own Authority travel.
b. O'Malley determined the need for and was responsible for the approval of all
Authority - related travel to occur by his subordinate Authority employees.
C. O'Malley specifically identified the number of days in advance of and/or the
number of days after conclusion of a training session, conference, seminar,
etc., which Authority employees, including himself, were permitted to travel.
26. O'Malley did not seek and/or receive prior approval from the Authority Board for his
own travel or the travel of other Authority representatives although O'Malley was to
report to the Authority Board of Directors in the organization's chain -of- command.
a. O'Malley solely determined what was legitimate Authority - related business
travel without prior presentation to and/or approval from the Authority Board
of Directors.
b. O'Malley approved travel to various trainings, seminars, conferences, etc.,
without prior presentation to and /or approval from the Authority Board of
Directors.
C. O'Malley identified, determined, and approved the total number of days he
and/or other Authority representatives were to be in travel status, including
days in travel status prior to the start of and/or after the completion of the
various trainings, seminars, conferences, etc.
THE FOLLOWING FINDINGS RELATE TO THE HOUSING AND REDEVELOPMENT
INSURANCE EXCHANGE ( "HARIE ").
27. As the Executive Director and contracting officer for the Authority, O'Malley was
responsible for the procurement of insurance for the Authority per HUD regulations.
28. HARIE is licensed with the Pennsylvania Department of Insurance to transact
insurance services within the Commonwealth.
a. HARIE was formed to market insurance plans exclusively to Pennsylvania
public housing authorities.
29. HARIE currently maintains a principal office address of 424 Jefferson Avenue,
Scranton, PA 18510.
a. HARIE also maintains an office address of 707 Grant Street, Pittsburgh, PA
15219.
30. HARIE is a domestic non- profit reciprocal insurance exchange.
a. HARIE is not a governmental entity, a political subdivision of a governmental
entity, or a body corporate and politic.
O'M�alle , 15 -015
Page 10
31. Entities desiring to obtain insurance through HARIE must become a subscribing
member of HARIE to utilize its services.
a. Membership in HARIE is currently limited to public housing authorities,
redevelopment authorities, and municipalities organized and existing under
the laws of the Commonwealth of Pennsylvania.
Entities joining HARIE as members /subscribers must sign the Articles
of Agreement and pay a membership fee as fixed by HARIE's Board
of Directors.
aa. The Articles of Agreement serve as the contract between
HARIE and its members /subscribers.
bb. HARIE's primary funding stream is limited to monies paid by
members/subscribers from the respective member's/
subscriber's public funds.
HARIE has no funding source outside its members/
subscribers.
32. HARIE is currently governed by a seven - member Board of Directors.
a. Only individuals serving as representatives of HARIE members/subscribers
are permitted to serve on the Board of Directors.
1. The Executive Director or Executive of each member /subscriber
serves as the member's /subscriber's designated representative to
HARIE in association with the transaction of any HARIE business.
b. Representatives of members/subscribers interested in serving on HARIE's
Board of Directors submit their names to HARI E's nominating committee for
consideration.
1. The Nominating Committee determines which names are to be placed
in nomination at HARIE's annual meeting.
aa. HARIE's annual meeting date and time may be fixed by the
Board of Directors.
If no date or time is set by the Board of Directors, the
annual meetin is to be held on the second Tuesday of
March at 10:0 a.m. annually.
bb. The members may elect individuals to serve on the Board of
Directors and transact other business as required at the annual
meeting.
C. Board members receive no salary for their service.
33. Regular meetings of HARIE's Board of Directors are to occur a minimum of four (4)
times per year.
a. The Board of Directors selects the times and places for the meetings.
b. Special meetings may be called by the President of the Board or upon
written request of at least two members of the Board of Directors.
O'M alle , 15 -015
age
34. During a sworn statement provided by [an individual referred to herein as "Volpe,
Jr." or "Volpe "] to Commission investigators on December 22, 2015, Volpe stated
the following in relation to Excalibur's service as HARIE's [Attorney in Fact ( "AIF ")]:
"We are the company, we do everything. We don't administer
the company or handle claims, everything from filings,
regulation, statutory and regulatory posting rates, filings rates,
meeting with the Insurance Department, posting reserves,
dealin.9 with actuaries, and all of the other day to day
operations of running an insurance company is what an
Attorney in Fact does.
An Attorney in Fact is like when you want to hand over your
estate to our lawyer and you sign a power of attorney and
give him full and plenary authority to run the company, that's
Excalibur."
35. HARIE maintains a Travel and Expense Policy in relation to travel and expenses
incurred by its Board members, AIF, Solicitor, contractors, etc.
a. HARIE's Travel and Expense Policy is dated June 2009.
36. HARIE's Travel and Expense Policy includes, in part, the following mandates:
a. Mission Statement:
1. HARIE, its Board, AIF, Solicitor, and contractors are to only incur
reasonable and necessary expenses: purchases, and/or charges in
the ordinary and daily course of business and in further support of
HARIE's business purpose which includes, in part, the following:
aa. Ensuring the continued and successful management of HARIE
by the Board, the AIF, Solicitor, and contractors through
various insurance - related training sessions and seminars
available for their attendance.
bb. Ensuring a strong membership within HARIE and a consistent
book of business across all lines and all insureds through
marketing, networking, conferencing, event scheduling, etc.
b. Attendance at Board Meetings and Work Sessions:
Board Meetings:
aa. Four Board meetings are to be held each year along with the
Annual meeting per HARIE's By -Laws,
bb. Board meetings are to be held in various locations throughout
the Commonwealth as determined by the travelltraining
committee of the HARIE Board (O'Malley never served on the
travelltraining committee); and
cc. Usual and ordinary expenses associated with the attendance
of essential personnel as selected by the HARIE Board may
include, but not be limited to, travel, hotel, meals, etc., to be
submitted, approved, and paid by HARIE.
2. Work Sessions:
O'Malley, 15 -015
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aa. For the benefit of HARIE's key personnel, various work
sessions are to be scheduled each year for the personnel to
become better educated on insurance - related issues affecting
HARIE; exchange pertinent information regarding the overall
management of- HARIE; attend training /informational sessions
as presented by the AIF, Solicitor, or other invited personnel
essential to HARIE, etc.
i. Key personnel are identified as the HARIE Board, AIF,
Solicitor, contractors, and additional selected members
and other insureds.
bb. The HARIE Board is to determine the necessity and location
for the work sessions; and
cc. Usual and ordinary expenses associated with the attendance
of essential personnel, which may include, but not be limited
to, travel, hotel, meals, etc., to be submitted, approved, and
paid by HARIE.
C. Receipt Approval and Documentation:
1. The HARIE Board may authorize the issuance of credit cards to key
personnel within HARIE for which the credit card recipients may
charge any reasonable and necessary expenses in support of
HARIE's business purpose.
aa. Reasonable and necessary expenses are not specifically
defined or identified in HARIE's travel and expense policy.
37. Although individuals serving on HARIE's Board receive no salary, HARIE Board
Members receive various perks related to their service on the HARIE Board.
a. Perks provided to HARIE Board members include:
Two to three training/work sessions held annually at desirable
locations within the United States or abroad with all travel and lodging
expenses as well as various subsistence and other expenses paid by
HARIE.
aa. The sessions have been held since 2010 at a minimum.
bb. The sessions are routinely six days with one of the six days
counted for travel.
2. A minimum of one annual Board retreat held at desirable location(s)
within the United States with all travel and lodging expenses as wN,
as various subsistence and other expenses paid by HARIE.
aa. The retreat(s) have been held since 2010 at a minimum.
bb. The retreats are routinely four days with one of the four days
counted for travel.
3. A HARIE - backed credit card issued in association with use for HARIE-
related business.
O'Malle, 15 -015
Page 13
4. Use of Volpe, Jr.'s, beachfront property in Fenwick Island, Delaware,
for vacation purposes as well as a double condominium located in
Chatham Towers in Pittsburgh, Pennsylvania, at no cost to the Board
members.
38. HARIE Board members, as well as additional HARIE representatives, are issued
credit cards from HARIE for the purpose of incurring HARIE- related expenses,
which may include expenditures incurred with continued education to promotion and
marketing of existing HARIE members /subscribers as well as potential
members/subscribers.
a. The majorityy of promotional and marketing expenses incurred by HARIE
Board members /representatives occur outside of HARIE - related functions.
1. The promotional and marketing expenses may take the form of
dinners and/or other entertainment- related activities for existing and
potential members/subscribers.
b. HARIE Board member expenses of this type are encouraged by HARIE.
39. During a sworn statement provided by Volpe, Jr., to Commission investigators on
December 22, 2015, Volpe stated the following in relation to HARI E Board member
use of HARIE - issued credit cards during non -HARIE travel:
a. "...When they're at a MARC -NAHRO conference in Fort Lauderdale, that has
nothing whatsoever to do with HARIE, it's true that we absolutely encourage
them to market our company.
Look, they're on very limited budgets, you know, housing authorities,
redevelopment authorities so look we're a pretty good size insurance
company and we want to encourage you to market our membership. Pick up
their dinner tab, take them to dinner, arrange for a golf outing somewhere,
and things they really would have to answer for to their housing authorities,
well HARIE will come in and pick up.
Again that's limited to, you know in the sense that it has to be either, it has to
be a Pennsylvania Housing Director because they're either our direct insured
or people we would like to Insure. We don't insure everybody so I can't say
that it's a, they're, look there's other than their good faith, integrity and
discretion really they're the only limits."
"...And, and look people that travel and a lot as you know, there are a lot of
rural housing authorities and smaller budgeted housing and redevelopment
authorities. When they do get the perrogative [sic] to take these, as they're
required to take certain educational trips, probably not twenty -eight a year
like Perry took, but took some. Look they're on limited budgets. So if a
HARIE board member, I don't need to tell yyou what, what marketing gold that
is for us, to be able to pick up those tabs, to take those people golfing or, or,
or. or. or all that."
THE FOLLOWING FINDINGS RELATE TO THE AUTHORITY'S RELATIONSHIP WITH
HARIE, O'MALLEY'S SERVICE AS AN OFFICER OF HARIE'S BOARD OF DIRECTORS,
AND TRAVEL IN RELATION TO HARIE EVENTS.
40. The Authority has maintained a contractual business relationship with HARIE for the
provision of insurance services since at least August 8, 1990.
O'Malle , 15 -015
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a. The Housing Authority joined HARIE as a member/subscriber on August 8,
1990.
b. The Redevelopment Authority joined HARIE as a member/subscriber on
December 11, 1997.
Multiple policies were written and in effect with HARIE for the
Redevelopment Authority at various times from December 11, 1997,
through at least March 13, 2015.
41. After obtaining employment as the Housing Authority Executive Director in July
1992, O'Malley increased the number of policies written for the Housing Authority
through HARIE.
a. From 1993 to 1995 O'Malley selected HARIE to write policies for the Housing
Authority for Property, General Liability, Worker's Compensation, D &O,
Fidelity, and Auto insurance.
1. The selection of HARIE for the writing of the Housing Authority's
insurance policies was not presented to or approved by the Authority
Board.
2. As the Executive Director, O'Malley was the contracting officer for the
Authority.
b. Policies written by HARIE renewed on an annual basis unless specifically
cancelled by the Housing Authority.
1. As the Authority contracting officer, O'Malley had the authority to
cancel all or some of the Authority policies with HARIE while serving
on the HARIE Board of Directors but did not do so.
42. O'Malley was first elected to a seat on the HARIE Board of Directors during or about
January 1995.
a. O'Malley's service on HARIE's Board of Directors spanned the approximate
timeframe of January 1995 to March 2015.
1. O'Malley was temporarily removed as an active member of the HARIE
Board as of January 23, 2015, as a result of his being put on paid
administrative leave as the Executive Director of the Authority.
2. O'Malley was formally removed as a member of HARIE's Board and
as the Authority member/subscriber representative for HARIE as of
March 13, 2015.
aa. Once terminated from his position of Executive Director,
O'Malley could no longer serve as the Authority
member/subscriber representative for HARIE.
43. O'Malley voluntarily chose to serve as a member of HARIE's Board of Directors.
a. O'Malley was not required, obligated, or otherwise mandated by any agency,
entity, organization, etc., to serve on HARIE's Board of Directors as a duty
related to his position as Executive Director for the Authority.
44. O'Malley held various officer positions during his tenure on HARIE's Board of
Directors including the following:
O'Maile , 15 -015
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a. Secretary: 1995 -2001;
b. Vice - President: 2001 -2012;
C. Acting President: 2012 -2013; and
d. President: 2013 -2015 (January 15th).
45. As a member of HARIE's Board of Directors, O'Malley traveled to multiple HARIE -
related functions on an annual basis, including HARIE Board meetings, marketing
events, training /work sessions, and Board retreats.
a. O'Malley did not formally inform the Authority Board of his travel to HARIE -
related functions prior to attending.
b. O'Malley did not seek or receive formal approval from the Authority Board to
participate in the HARIE - related functions prior to attending.
46. O'Malley did not utilize leave of any type to account for work hours missed in his
public position as the Authority Executive Director while attending functions for
HARIE.
a. O'Malley attended the HARIE functions as a member of the Board of
Directors of HARIE and as the Executive Director of the Authority.
b. O'Malley received his complete Authority salary for days traveling to /from
and attending functions relating to HARIE.
1. O'Malley received no formal approval from the Authority Board of
Directors at any point in time to attend HARIE - related functions while
on Authority time.
c. [When participating in HARIE - related conferences, events and training,
O'Malley] was available to the Authority staff by telephone and e-mail, and
he regularly took and responded to telephone calls and a -mails from
Authority staff and conducted Authority business.
47. All expenses associated with O'Malley's travel for HARIE - related functions, with the
exception of various expenses associated with O'Malley's attendance at HARIE
Board meetings, were paid by HARIE.
a. O'Malley routinely attended HARIE Board meetings which were held in
conjunction with the Pennsylvania Association of Housing & Redevelopment
Agencies ( "PAHRA ") conferences.
1. O'Malley routinely attended the PAHRA conferences in association
with his position as the Authority Executive Director.
aa. Expenses (including lodging, per diems, etc.) for the PAHRA
conferences attened by O'Malley in his capacity as the
Executive Director were paid by the Authority.
b. HARIE's Board of Directors chose to have meetings in conjunction with
PAHRA conferences due to the fact that HARIE Board members were
members of PAHRA and routinely attended the PAHRA conferences.
O'Malle 15-015
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48. As the Authority Executive Director, O'Malley was required to maintain weekly work
sheets to account for his hours worked, leave utilized, etc.
a. Although subordinate to the Authority Board of Directors in relation to the
Authority chain -of- command, O'Malley did not submit his weekly work sheets
to the Board Chairman, any Board committee, or the Board as a whole for
review or approval.
b. O'Malley approved his own time sheets in his position of Executive Director.
49. Although required to maintain weekly work sheets, O'Malley did not physically
complete his own weekly work sheets.
a. O'Malley utilized Druschel to physically complete his weekly work sheets.
1. Druschel completed O'Malley's weekly work sheets daily or every
other day as a general practice.
b. O'Malley reviewed and approved his weekly work sheets in his position as
Executive Director.
50. O'Malley gave Druschel specific direction in relation to the completion of his weekly
work sheets.
a. Per O'Malley's direction, Druschel consistently documented on O'Malley's
weekly work sheets O'Malley having worked seven hours of regular time on
regular Authority workdays unless otherwise instructed by O'Malley.
1. O'Malley specifically identified dates to Druschel for which he claimed
leave as well as the specific leave type (vacation, sick, or personal) to
be entered on his weekly work sheets.
51. Druschel routinely documented on O'Malley's weekly work sheets O'Malley having
worked full seven (7) hour days for the Authority on the same dates that O'Malley
was traveling for the Authority and/or HARIE.
a. Per O'Malley's direction, Druschel documented O'Malley as having worked
full seven (7) hour work days while O'Malley was in travel status.
b. Druschel often documented the name of the conference O'Malley was
attending or "HARIE" next to the actual travel days /dates on O'Malley's
weekly work sheets.
52. Between December 2010 and December 2014, O'Malley did not utilize any type of
leave when attending and /or participating in nineteen (19) HARIE meetings and
fu notions.
a. HARIE Board meetings were held on ten (10) occasions in conjunction with
PAHRA meetings which O'Malley attended as Authority Executive Director.
b. O'Malley participated in six (6) meetings by telephone.
C. O'Malley attended three (3) meetings in Philadelphia not connected to any
other event.
53. O'Malley attended Board of Directors meetings for HARIE during regular Authority
work days and hours for which O'Malley did not utilize leave of any type resulting in
O'Malley's receipt of wages from the Authority for 52.5 hours.
Off, 15 -015
age 17
a. O'Malley utilized at least three and one -half work hours for each HARIE
Board of Directors meeting attended (including travel time when applicable).
1. These hours are calculated based on testimony of Volpe, Jr., who
determined that HARIE Board meetings lasted 3 1/2 to 4 hours.
b. O'Malley received his regular Authority wages at all times during his
attendance and/or other participation in HARIE Board of Directors meetings
while on Authority time.
1. O'Malley's Authority leave records document no leave utilized for
Authority time lost while participating in meetings of HARIE's Board of
Directors.
C. O'Malley did not seek or receive prior apppproval from the Authority Board of
Directors to attend meetings of the HARIE Board of Directors on Authority
time without utilizing leave of some type.
54. Each December from at least 2011 through 2014, O'Malley attended "marketing"
meetings as a representative of HARIE, for which O'Malley did not utilize leave of
any type to account for his absence at the Authority on regular work days and
hours.
a. The marketing meetings were held in New York, New York.
1. HARIE's marketing meetings in 2011, 2012, 2013, and 2014
coincided with the PA Society event held in New York for those
respective years.
b. HARIE Board meeting minutes refer to an evening "party" in connection with
these marketing meetings.
C. O'Malley did not attend these meetings as a representative of the Authority.
55. O'Malley's attendance at marketing meetings organized by HARIE during regular
Authority work days and hours far which no leave of any type was utilized resulted in
O'Malley's receipt of wages from the Authority for 42 hours.
a. O'Malley's travel to and from the marketing events was confirmed via
documentation associated with O'Malley's use of his HARIE - issued credit
card.
1. Hours were based on an analysis of O'Malley's HARIE credit card use
documenting arrival and departure days, O'Malley's time and
attendance reports, and O'Malley's schedules.
56. O'Malley received his regular Authority wages for all instances documenting his
attendance and/or other participation in marketing events for HARIE, which
occurred during regular Authority work hours.
a. O'Malley's work calendar for the time period of December 9, 2011, through
December 11, 2011, documented the following:
Date
ecem er
9 Decem erI0,201.1 December 11,
December 12
2011
2011
mi
Desc
HARIEEW
HARIE -
HARIE, NY
O'Malle , 15 -015
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1. O'Malley's weekly work reports for calendar year 2011 could not be
located by Authority personnel.
2. O'Malley's leave records document no leave utilized on the noted
travel dates.
b. O'Malley's work calendar /weekly work reports for the time period of
December 7, 2012, through December 10, 2012, documented the following:
Date
December 7
-December 8, 2012
December
9, December 10,
2012
2U13
2012
M2
Desc
HARIE/HARIE
HARIE /-
HARIE /-
HARIE /HARIE
1. O'Malley's leave records document no leave utilized on the noted
travel dates.
C. O'Malley's work calendarlweekly work reports for the time period of
December 13, 2013, through December 16, 2013, documented the following:
Date
December 13,
December
14, December
15, December
2U13
2013
M3
Desc
HARIE, NY /HARIE
NY /-
NY-
HARIE, NY/HARIE
1. O'Malley's leave records document no leave utilized on the noted
travel dates.
d. O'Malley's work calendar/weekly work reports for the time period of
December 10, 2014, through December 15, 2014, documented the following:
Date December December Decem er ecem er ecem er ecem er
�- � T 0m T �
Desc To Hb IHARIE HARIEIHARIE HARIE, NYIHARIE - !HARIE -IHARIE HARIE, NY/HARIE
1. O'Malley's leave records document no leave utilized on the noted
travel dates.
e. O'Malley did not seek or receive prior approval from the Authority Board to
attend marketing events or other meetings regarding HARIE on Authority
time without utilizing leave of some type.
57. Since at least 2010, HARIE has scheduled and sponsored training
sessions /workshops within the continental United States and abroad to conduct
meetings for the purpose of addressing various insurance - related topics and
updates.
a. Education and training are to be provided at the training sessions /workshops.
b. Updates from HARIE's General Counsel and AIF are to be provided at the
training sessions/workshops.
58. HARIE- sponsored training sessions /workshops are held at locations that require
travel.
a. The training sessions/workshops are held at such locations as a perk for
individuals to serve on HARIE's Board of Directors.
b. O'Malley attended HARIE training workshops as a HARIE Board Member.
O'Malley. 15 -015
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59. From October 2010 through November 2014, HARIE conducted training
sessions/workshops attended by O'Malley on eleven (11) separate occasions.
60. O'Malley attended some, but not all, of the trips scheduled between October 2010
and November 2014 as a member and officer of the Board of Directors for HARIE.
a. O'Malley did not seek or receive formal approval from the Authority Board to
attend the HARIE training sessions/workshops prior to attending such.
61. O'Malley never used vacation time or any other leave from his public position to
attend the private HARIE events.
a. O'Malley did not seek or receive formal approval from the Authority Board to
travel to HARIE training sessions/workshops without using leave of some
type to account for his absence from the Authority during normal work days
and hours.
b. O'Malley, as the Authority Executive Director, approved his own travel to the
HARIE training sessions/workshops without utilizing leave of some type to
account for his absence from the Authority during normal work days and
hours.
62. O'Malley occasionally extended the amount of time spent at the HARIE locations
beyond the scheduled dates of the sessions.
a. O'Malley's extension of time in traveling to and from the HARIE events
resultedyin additional absences from Authority business without using leave.
63. O'Malley received his normal Authority wages for all time spent while traveling to
and from the HARIE events.
a. O'Malley did not utilize leave of any type to account for his absence /work
hours missed at the Authority while traveling to events hosted by HARIE.
64. O'Malley's attendance at events hosted by HARIE during regular Authority work
days and hours for which no leave of any type was utilized resulted in O'Malley's
receipt of wages from the Authority.
a. O'Malley's weekly work sheets consistently document O'Malley working 7.0
hours per day on O'Malley's HARIE travel dates with the exception of dates
falling on weekends.
1. O'Malley's 2011 worksheets could not be located by Authority
personnel.
2. O'Malley's work calendar documented "Out" for the days of March 9,
2011, through March 16, 2011.
3. O'Malley's work calendar documented "Out ", "HARIE", "X ", or a
combination of such for the days of October 18, 2011, through
October 25, 2011.
b. O'Malley's leave records document no leave utilized on the noted travel
dates.
O'Malle ,15 -015
age
65. In addition to the training sessions /workshops, HARIE has scheduled and
sponsored Board retreats within the continental United States since at least 2010
for the purpose of rewarding the HARIE Board of Directors for its service.
a. No continuing education, updates, etc., are presented at the Board retreats,
although HARIE's business and the business of public and affordable
housing was the subject of informal discussions.
66. HARIE- sponsored Board retreats are frequently held at locations requiring travel,
including, but not limited to, Caesars Atlantic City Hotel & Casino.
a. The Board retreats are held at such locations as a perk for individuals to
serve on HARIE's Board of Directors.
67. Expenses for attendees charged to HARIE credit cards in association with travel to
and from the Board retreats, lodging, meals, etc., are paid by and through funds
received by HARIE.
68. O'Malley attended all of the Board retreats held between March 2011 and August
2014 as a member and officer of the Board of Directors for HARIE.
a. O'Malley, as the Authority Executive Director, approved his own travel to the
HARIE events without utilizing leave to account for his absence from the
Authority during normal work days and hours.
b. O'Malley did not present his HARIE travel plans to the Authority Board prior
to or after his HARIE travel.
C. O'Malley did not seek or receive approval from the Authority Board to attend
the HARIE Board retreats prior to attending such.
d. O'Malley did not seek or receive approval from the Authority Board to attend
HARIE Board retreats without using leave.
69. O'Malley received his Authority compensation for all time spent while traveling to
and from and attending HARIE Board retreats.
70. HARIE Board retreats attended by O'Malley and days utilized by O'Malley for which
he was compensated in relation to such are detailed in the chart below.
Scheduled
O'Malley Travel
Normal Work
O'Malley Travel Days 1
Leave
-
tart — End Date
Start - End Date
Uays Includiid
or c Days
)tea ss
Used
04/12/11 —
04/12/11 --
4: Tues, Wed,
Thur,
4: Tues, Wed, Thur, Fri
0.0
04/15/11
04/15/11
Fri
04/17/12 —
04/17/12 —
4: Tues, Wed,
Thur,
4: Tues, Wed, Thur, Fri
0.0
04/20/12
04/20/12
Fri
08/14/12 --
08/15/12 —
4: Tues, Wed,
Thur,
3: Wed, Thur, Fri
0.0
08117/12
08/19/12
Fri
04/16/13 --
04/16/13 --
4: Tues, Wed,
Thur,
4: Tues, Wed, Thur, Fri
0.0
04/19/13
04/19/13
Fri
03/25/14 —
03/25/14 --
4: Tues, Wed,
Thur,
4: Tues, Wed, Thur, Fri
0.0
03/28/14
03/28/14
Fri
08/25/14 --
08125/14 —
3: Mon, Tues, Wed
2: Mon, Tues
0.0
08/27/14
08/26/14
O,'_Ma[le , 15-015
aP ge 21
Scheduled O'Malle Travel
Normal Work
O'Mallev Travel Da s 1
Leave
tam- E—na Date Start - End Date
DaVs included
Work Days
Days
Used
Total
23 Work Days
21 Actual Work Days
0.0
a. O'Malley's attendance at Board retreats organized by HARIE during regular
Authority work days and hours for which no leave of any type was utilized
resulted in O'Malley's receipt of wages from the Authority as shown below:
Session
Location
O'Malley Travel
Hour:
Start —d
9tart - End
Los
04/12/11 --
Trump Plaza, Atlantic
04/12/11 –
28.0
04/15/11
City, NJ
04/15/11
04/17/12 --
Caesar's, Atlantic City,
04/17/12 –
28.0
04/20/12
NJ
04/20/12
08/14/12
– Greenbriar Resort,
08/15/12 –
21.0
08/17/12
White Sulphur, WV
08/19/12
04/16/13
– Caesar's Atlantic City,
04/16/13 –
28.0
04/19/13
NJ
04/19/13
03/25/14
– Caesar's, Atlantic City,
03/25/14 –
28.0
03/28/14
NJ
03/28/14
08/25/14 --
Greenbrier, WV
08/25/14 –
14.0
08/27/14
08/26/14
Total
ur
71. O'Malley's attendance at Board retreats organized by HARIE during regular
Authority work days and hours for which no leave of any type was utilized resulted in
O'Malley's receipt of wages from the Authority for 147 hours.
a. O'Malley's weekly work sheets consistently document O'Malley working 7.0
hours per day on the noted travel dates with the exception of dates falling on
weekends.
1. O'Malley's 2011 worksheets could not be located by Authority
personnel.
b. O'Malley's work calendar documented "HARIE" for the days of April 12, 2011,
through April 15, 2011,
C. O'Malley's leave records document no leave utilized on the noted travel
dates.
72. On November 17, 2015, O'Malley provided sworn testimony at his Civil Service
Hearing (docketed under Appeal No (s). 28595 and 28596) regarding his dismissal
as the Authority Executive Director; Malley admitted as follows:
a. The Executive Director reports to the Board and the Board Chairman serves
as the liaison between the Executive Director and the Board;
O�Maliey, 15 -015
age 22
b. To serve on the HARIE Board an individual must be a member of the
Exchange (alkla HARIE) and must be an Executive Director of a housing
authority;
G. A housing authority Executive Director does not have to be a HARIE Board
member in order for the housing authority to purchase HARIE insurance;
d. A responsibility of serving as a HARIE Board member is to entertain clients
at conferences attended, and it was typical to entertain HARIE clients while
on housing authority trips if HARIE clients were on the same trips;
e. O'Malley traveled in 2013 and 2014 for HARIE events for educational
knowledge regarding the expansion and maintaining the rules and
regulations of the insurance industry as it applied to property. and casualty
and Workers' Compensation law for not only his but other housing authorities
as well;
1. Educational "training" sessions consisted of one formal meeting per
each training sessionlworkshop;
2. No education or training was conducted at the HARIE Board retreats;
f. O'Malley had been President of the HARIE Board for the past three (3)
years;
g. O'Malley approved his own time via signature on his weekly work reports;
h. O'Malley testified [he] had no supervisor that signed off on his weekly work
sheets and that his weekly work sheets were not submitted to the Authority
Board of Directors;
i. O'Malley was not required to go to the Authority Board and ask/seek
permission to travel, did not do so, and such held true for all of his travel
(HARIE and Authority); adding:
"Travel and training was at the Executive Director's discretion for
myself and my staff."
j. The Authority Board never gave O'Malley permission to entertain HARIE
clients while on Authority trips; adding:
`7 don't require the Board's permission to do that."
73. O'Malle 's travel to HARIE training sessions, Board retreats, and marketing events
resulted in O'Malley eing absent from the Authority for at least 241.5 hours without
utilizing leave. O'Malley received his wages ... from the Authority for each of those
hours although he was absent from the Authority, attending HARIE events.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT O'MALLEY FAILED
TO SUBMIT LEAVE AND /OR OTHERWISE SEEK PRE - APPROVAL TO ENGAGE IN
TRAVEL BEYOND WHAT WAS NECESSARY FOR OFFICIAL BUSINESS AND THAT
O'MALLEY UTILIZED THE CREDIT CARD OF THE AUTHORITY TO PAY FOR
EXPENSES OF A PERSONAL NATURE DURING THE EXTENDED TRAVEL.
74. Between September 2010 and December 2014, O'Malley attended a minimum of
fifty -seven (57) different conferences in his position as the Authority's Executive
Director.
O'Malle y, 15015
age 33
a. O'Malley traveled to the following locations:
Las Vegas:
10 trips
New Orleans:
4 trips
Miami:
3 trips
Pittsburgh:
6 trips
Washington, DC:
2 trips
Harrisburg:
12 trips
Orlando:
2 trips
West Palm Beach:
1 trip
Fort Myers:
1 trip
Palm Beach:
1 trip
Atlantic City:
1 trip
Ft. Lauderdale:
1 trip
Bonita Springs:
1 trip
Plymouth Meeting:
1 trip
Philadelphia:
2 trips
Champion:
4 trips
Chicago:
1 trip
Boston:
1 trip
Bedford:
1 trip
Erie:
1 trip
Hershey:
1 trip
b. The Authority paid for O'Malley's transportation, lodging, most meals and
compensation while in travel status.
C. Conferences attended by O'Malley included the following:
Multi - family Executive Conference 2010 to 2014;
Casterline Associates;
PA Economic Development Conference;
RAD Key Changes Meeting;
Novogradac Tax Credit Conferences 2013 and 2014;
Affordable and Rural Housing;
Pittsburgh Community Reinvestment Group, Community Development
Summit;
National Weatherization Training Conference.
d. While attending these conferences, at the Authority's expense, as the
Authority Executive Director, O'Malley conducted business on behalf of
HARIE and incurred expenses on behalf of HARIE; such business was
conducted after hours, and HARIE paid the expenses O'Malley incurred, not
the Authority.
75. O'Malley independently determined the need for Authority - related travel and
approved Authority - related travel for himself and all other subordinate employees at
the Authority.
a. O'Malley approved attendance for himself and all other subordinate Authority
employees at conferences, seminars, trainings, etc.
b. O'Malley approved the number of and the actual days of travel for himself
and all other subordinate Authority employees as related to Authority travel.
1. O'Malley etermined departure times, return times, the number of
days to be in travel status, etc.
O'Mafle , 15 -015
Page
76. O'Malley did not present or receive approval from the Authority Board for anticipated
travel prior to the travel occurring.
a. Board Member knowledge of O'Malley's travel or other Authority employee
travel was limited to documentation present on Authority check registers leper
diem checks, registration checks, etc.) presented at meetings for approval.
1. Check registers approved by the Authority Board identified only those
checks issued for the prior month.
2. The travel documented on the check registers had routinely occurred
prior to the check register having been presented at the monthly
meetings for approval.
77. O'Malley's additional travel expenses (hotel, airfare, etc.) were frequently paid via
use of O'Malley's Authority - issued credit cards.
a. O'Malley was the only Authority employee issued an American Express card.
b. Check registers presented to the Board documented only the payment due
for the respective credit card.
1. The specific charges incurred on the credit card for the payment
period were not identified on the check register presented for
approval.
78. Upon O'Malley's approval of travel for himself or other Authority employees,
O Malley provided specifics of the travel to Druschel for scheduling.
a. Druschel registered the individuals who were selected to travel for the event.
1. O'Malley either personally informed Druschel of those attending or
instructed those identified as potential attendees to inform Druschel of
such.
b. Druschel booked the hotel accommodations for the individuals traveling.
1. O'Malley selected the hotel for lodging and the number of nights for
which rooms were needed and informed Druschel of such for booking
purposes.
C. O'Malley selected the departure day and time and return day and time in
relation to airline tickets when applicable.
79. After receiving notice of the travel, the individuals attending, and the travel dates,
Druschel generated per diem travel advance requests for all Authority employees
scheduled to travel.
a. Druschel based the number and amount of per diems on the travel dates
O'Malley identified.
1. Per diem checks issued to Authority employees other than O'Malley
also included the cost of the employee's hotel accommodations for
the length of the travel.
aa. O'Malley's per diem advance did not include hotel fees.
O'Malle 15-015
age
b. Druschel provided the per diem travel advance requests to O'Malley for
approval upon completion.
1. O'Malley signified his approval of the per diem travel advance
requests via signing the documents.
C. After O'Malley signed the documents, Druschel presented the per diem travel
advance requests to the Authority accounting department for generation of
the advance checks.
1. The accounting department typically generated the checks upon
receiving the documentation; however, the checks were not provided
to Druschel for distribution until approximately one week prior to the
travel.
d. Upon receipt of the advance checks, Druschel provided each Authority
traveler a packet which included the advance check, a blank expense report,
a copy of the actual per diem request form, the event agenda, and any other
applicable supporting documentation.
80. After returning from Authority travel, employees were required to complete an
Authority training expense form documenting expenses incurred while in travel
status.
a. The training expense form takes into account all applicable expenses
incurred while in travel status including subsistence per diems, gratuities,
hotel expenses, and other expenses (cab fare, etc.); miles traveled;
advances received; and the amount due the employee or due the Authority.
b. All Authority employees with the exception of O'Malley completed their own
training expense form.
1. Druschel completed O'Malley's expense form upon O'Malley's return.
81. Once completed, the training expense reports were provided to O'Malley through
Druschel for review and approval.
a. O'Malley signified his approval of the training expenses via signing the
documents.
O'Malley signed and approved his own travel expense documents.
b. The training expense reports were forwarded to the accounting department
for processing after O'Malley signed the documents.
THE FOLLOWING FINDINGS SPECIFICALLY RELATE TO O'MALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS ATTENDANCE AT THE 2010 TO 2014 MULTIFAMILY
EXECUTIVE CONFERENCE,
82. Hanley Wood is a business entity serving the information, media, and marketing
needs of the residential, commercial design and construction agency.
83. Hanley Wood sponsors an annual Multifamily Executive Conference for the purpose
of providing information on issues central to the multifamily housing marketplace.
a. The Multifamily Executive Conference includes sessions, discussion groups,
and networking opportunities regarding various topics including capital
O'Malle 15-015
age
investment and leadership; property management and operations; and
design and development.
1. Attendance at the event is reserved for multifamil industry property
executives, developers, architects, builders, andy other real estate
executives.
84. The Multifamily Executive Conferences were held in Las Vegas, Nevada, from 2010
through 2014.
85. O'Malley, in his position of Executive Director for the Authority, authorized his own
travel to annual Multifamily Executive Conferences multiple days prior to and after
the official conference start and conclusion dates, authorized his receipt of per diem
expenses for excess travel days beyond the official start and conclusion dates,
charged excess hotel nights for himself andlor his spouse beyond the official start
and conclusion dates, authorized his receipt of reimbursements for travel days
beyond the official start and conclusion dates beyond that to which he was entitled,
failed to reimburse the Authority for charges incurred on his Authority American
Express related to the purchase of airfare for his spouse, although there were other
occasions where he did reimburse the Authority for the purchase of airfare for his
spouse, and failed to utilize leave to account for regular work days lost in
association of extension of travel dates beyond the official conclusion of the
conferences as detailed [in the chart below (with the abbreviation "MEC" referring to
"Multifamily Executive Conference ")]:
Description
2010 MEC
2011 MEC
2012 MEC
2013 MEC
2014 MEC
Airtare Fees
NO
— Yes
— elm
ffo-—
No
Per Diem
Yes
Yes
Yes
Yes
Yes
Reimbursement*
No
No
No
Yes
Yes
Hotel Fees
Yes
Yes
Yes
Yes
Yes
Lost Waaes
Yes
Yes
Yes
No
No
ncludes-63dra gratuities reim arse an excess taxi reimbursement
86. Although O'Malley was registered at the 2010 through 2014 Multifamily Executive
Conferences as the Authority Executive Director, O'Malley marketed and promoted
HARIE at the Multifamily Executive Conference(s) before or after Authority business
hours.
THE FOLLOWING FINDINGS SPECIFICALLY RELATE TO O'MALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS ATTENDANCE AT THE 2011 CASTERLINE
ASSOCIATES ADVANCED PUBLIC HOUSING AUTHORITY BUDGETING,
ACCOUNTING, AND REPORTING SEMINAR.
87. Casterline Associates is a certified public accounting and consulting firm which
specializes in providing a variety of services to the affordable housing industry.
a. Areas of focus include financial consulting, strategic planning, accounting
services, information technology, energy management, and development/
construction.
Casterline Associates assists public housing authorities with a variety of
accounting, auditing, and consulting needs.
88. Casterline Associates offers seminars to meet the needs of experienced housing
professionals as well as those new to the industry.
89. In 2011, Casterline Associates presented its Advanced PHA Budgeting, Accounting,
and Reporting seminarlworkshop at the Golden Nugget Hotel and Casino in Las
Vegas, Nevada; and at Disney's Boardwalk Resort in Orlando, Florida.
o�Maile 15-015
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a. O'Malley registered for and traveled to the June 8th -9th, 2011, Advanced PHA
Budgetin Accounting, and Reporting seminar /workshop ( "Casterline
Seminar }g at the Golden Nugget, Las Vegas, Nevada.
90. O'Malley's travel to the 2011 Casterline Seminar one day in advance of the
scheduled start date and return two days after the scheduled close date resulted in
O'Malley charging one extra night of hotel accommodations to the Authority, as well
has his receipt of extra per diem and his failure to issue reimbursement due to
the Authority.
THE FOLLOWING FINDINGS SPECIFICALLY RELATE TO OWALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS ATTENDANCE AT THE 2011 NATIONAL
WEATHERIZATION TRAINING CONFERENCE.
91. The United States Department of Energy sponsors a National Weatherization
Training Conference to address national training needs, provide networking
opportunities, and share best practices among peers.
a. The National Weatherization Training Conference is held every two (2) years.
92. In 2011, the National Weatherization Training Conference was held at [a]
Convention Center in New Orleans, Louisiana, from December 13, 2011, to
December 15, 2011.
a. Pre - conference sessions were available on December 12, 2011.
b. O'Malley registered for and traveled to the 2011 National Weatherization
Training Conference in his position as Authority Board Director.
1. O'Malley did not register for any pre- conference workshop associated
with the 2011 National Weatherization Training Conference.
93. O'Malley's travel to the 2011 National Weatherization Training Conference one day
in advance of the scheduled start date and return two days after the scheduled
close date resulted in O'Malley's receipt of a partial per diem for one day of excess
travel and charging one excess night of hotel accommodations.
THE FOLLOWING FINDINGS SPECIFICALLY RELATE TO OWALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS ATTENDANCE AT THE 2013 AND 2014 NOVOGRADAC
TAX CREDIT DEVELOPERS CONFERENCE.
94. Novogradac & Company, LLP ( "Novogradac ") is a national certified public
accounting and consulting firm with clients representing a broad range of industries
with an emphasis to the real estate sector.
a. Novogradac works extensively in the affordable housing, community
development, and renewable energy fields.
b. Novogradac sponsors affordable housing, renewable energy, and real
estate - related conferences as well as workshops and webinars.
95. The 2013 Novogradac Tax Credit Developers Conference ( "Novogradac
Conference ") was held at the Ritz Carlton South Beach in Miami, Florida, from
January 10, 2013, to January 11, 2013, with pre - conference workshop sessions
available on January 9, 2013.
a. O'Malley registered for and traveled to the Novogradac Conference held in
Miami, Florida, in 2013 in his position as Authority Board Director.
ONalfe , 15 -015
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O'Malley did not register for any pre - conference workshops
associated with the 2013 Novogradac Conference.
96. The 2014 Novogradic Tax Credit Housing Finance Conference ( "Novogradac
Finance Conference ") was held at the Mandarin Oriental Hotel in Las Vegas,
Nevada, from December 4, 2014, to December 5, 2014, with pre - conference
workshop sessions available on December 3, 2014.
a. O'Malley registered for and traveled to the Novogradac Finance Conference
held in Las Vegas, Nevada, in 2014 in his position as Authority Board
Director.
1. O'Malley did not register for any pre - conference workshops
associated with the 2014 Novogradac Finance Conference.
97. O'Malley's travel to the 2013 Novogradac Conference two days in advance of the
scheduled conference start date and return two days after the scheduled
conference close date resulted in O'Malley charging two excess nights of hotel
accommodations to the Authority, O'Malley's receipt of two excess per diems,
O'Malley's receipt of gratuities claimed for two excess days, and O'Malley being
absent from the Authority on a scheduled work day without utilizing leave of any
type.
98. O'Malley's travel to the 2014 Novogradac Finance Conference one (1) day in
advance of the scheduled conference start date and return two (2) days after the
scheduled conference conclusion date resulted in O'Malley charging one excess
night of hotel accommodations to the Authority and O'Malley s receipt of one excess
per diem.
99. Although O'Malley was registered at the 2013 and 2014 Novogradac conferences
as the Authority Executive Director, O'Malley marketed and promoted HARI Eat the
Novogradac conference before or after Authority business hours.
THE FOLOWING FINDINGS SPECIFICALLY RELATE TO O'MALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS ATTENDANCE AT THE PITTSBURGH COMMUNITY
REINVESTMENT GROUP 2013 COMMUNITY DEVELOPMENT SUMMIT.
100. The Pittsburgh Community Reinvestment Group ( "PCRG ") is a membership
organization for community development corporations, community -based
organizations, and related nonprofits that represent low and moderate - income
communities throughout Allegheny County.
101. The PCRG has participated in sponsoring a Community Development Summit
( "CDS ") for the purpose of exploring new ideas and emerging themes in
organizational development, community planning, land recycling, affordable
housing, transit - oriented development, and neighborhood revitalization since 2011.
a. The CDS includes keynote speakers, workshops and panels, and built -in
networking time.
102. The 2013 CDS was held in Pittsburgh, Pennsylvania, from May 21, 2013, to May
22, 2013, at the Omni William Penn Hotel in Pittsburgh, Pennsylvania.
a. O'Malley registered for and traveled to the 2013 CDS in his position as
Authority Board Director.
O'Malle , 15 -015
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103. O'Malley's return from the 2013 CDS one day after the scheduled close date
resulted in O'Malley charging one extra night of hotel accommodations to the
Authority, receipt of one partial extra per diem, and being absent from the Authority
on a scheduled work day without utilizing leave of any type.
104. O'Malley was registered at the 2013 CDS conference as the Authority Executive
Director; O'Malley marketed and promoted HARIE at the CDS conference before or
after Authority business hours.
THE FOLOWING FINDINGS SPECIFICALLY RELATE TO O'MALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS ATTENDANCE AT THE JULY 11, 2013, RENTAL
ASSISTANCE DEMONSTRATION ( "RAD ") KEY CHANGES MEETING IN
WASHINGTON, DC.
105. O'Malley attended the RAD Key Changes Meeting in Washington, DC, held on July
11, 2013.
106. RAD is a voluntary HUD program that seeks to preserve public housing by providing
public housing authorities with access to more stable funding to make necessary
improvements to properties.
107. The 2013 RAD key changes meeting was held in Washington, DC, on July 11,
2013.
108. O'Malley attended the 2013 RAD meeting and stayed at the Mandarin Oriental in
Washington, DC.
109. O'Malley tilized his Authority - provided vehicle for transportation purposes to the
July 2013 RAD meeting held in Washington, DC.
a. At the time of the July 2013 RAD meeting, O'Malley had been provided an
Authority -owned 2009 Bunk Lucerne, for use associated with Authority
business.
110. O'Malley utilized an Authority provided E -ZPass in relation to his use of his
Authority - provided vehicle.
a. Replenishment charges for the E -ZPass account were assigned to
O'Malley's Authority- issued American Express.
111. O'Malley's travel dates and approximate travel times to the July 2013 RAD meeting
in Washington, DC, were captured via his use of the Authority 2009 Buick Lucerne
and the Authority E- ZPass.
a. E -ZPass records documented the activity spanning the dates of July 10,
2013, through July 13, 2013.
112. O'Malley's return from the July 2013 RAD meeting two (2) days after the scheduled
conference close date resulted in O'Malley's receipt OT one extra partial per diem
and being absent from the Authority on a scheduled work day without utilizing leave
of any type as detailed below:
a. O'Malley received his wages for a full seven (7) hour day from the Authority
for Friday, July 121 2013, a regular workday, although he was absent from
the Authority without using leave of any type.
O'Malle , 15-015
age
113. O'Malley attended the July 2013 RAID conference as the Authority Executive
Director; O'Malley marketed and promoted HARIE at the RAD conference before or
after Authority business hours.
THE FOLLOWING FINDINGS SPECIFICALLY RELATE TO O'MALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS TRAVEL TO THE 2013 PENNSYLVANIA ECONOMIC
DEVELOPMENT ASSOCIATION FALL CONFERENCE,
114. The Pennsylvania Economic Development Association ( "PEDA ") is a statewide
association of local, state, corporate, and non - profit economic development
professionals.
a. PEDA's mission is to promote sound economic development policies,
provide economic development education, and nurture a statewide economic
development network to foster the economic growth of the Commonwealth.
115. PEDA presents two (2) annual conferences (spring and fall) for economic
development professionals and organizations in Pennsylvania to share best
practices and experiences that enhance professional dialogue.
116. O'Malley attended PEDA conferences in his capacity as the Authority Board
Director.
117. The 2013 PEDA fall conference was held in Pittsburgh, Pennsylvania, from October
21, 2013, until October 23, 2013.
a. No PEDA membership committee meetings were scheduled prior to October
21, 2013.
118. A pre - conference Pennsylvania Economic Development Institute ( "PEDI" ) session
was also offered for the morning of October 21, 2013, in addition to the three (3)-
day 2013 PEDA fall conference.
a. Attendance at the PEDI pre - conference session required a separate
registration from that of the 2013 PEDA fall conference.
b. O'Malley registered for the pre - conference session titled "Economic
Development Financing — Deal Structuring."
119. O'Malley changed his check -in date at the conference accommodations from
October 20, 2013, to October 19, 2013, resulting in the Authority incurring
O'Malley's personal expenses.
120. O'Malley incurred room, parking, and meal /beverage fees at the hotel as a result of
O'Malley traveling to Pittsburgh, Pennsylvania, to attend the Pitt vs. Old Dominion
college football game held at Heinz Field on October 19, 2013, at 7:00 p.m.
121. Although it is generally accepted that travel days are provided for one (1) day prior
to and one (1) day after conferences begin and end, O'Ma11ley's hotel
accommodations for the night of October 19, 2013, were scheduled for two (2) days
prior to the official 2013 PEDA fall conference start date.
122. O'Malley's travel to the 2013 PEDA fall conference two (2) days prior to the
scheduled start date resulted in O'Malley charggingg one excess night of hotel
accommodations and subsistence charges to the Authority, charging of subsistence
to the Authority for one day for which a per diem had previously been provided, and
receipt of one extra per diem when not in actual travel status.
O'Malle , 15 -015
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123. O'Malley was registered at the 2013 PEDA fall conference as the Authority
Executive Director; O'Malley marketed and promoted HARIE at the PER
conference before or after Authority business hours.
THE FOLLOWING FINDINGS SPECIFICALLY RELATE TO O'MALLEY'S EXTENDED
TRAVEL IN RELATION TO HIS TRAVEL TO THE 2014 COUNCIL FOR AFFORDABLE
AND RURAL HOUSING MID -YEAR CONFERENCE.
124. The Council for Affordable and Rural Housing ( "CARH ") is a national non- profit
trade organization.
a. CARH serves as an association for participants in the affordable rural
housing profession including builders, owners, developers, managers, non -
profits, housing authorities, syndicators, accountants, architects, attorneys,
bankers, and companies that supply goods and services to the industry.
b. CARH routinely presents a national annual meeting and legislative
conferences as well as a national midyear conference.
125. The 2014 CARH midyear conference ( "2014 CARH ") was held in Las Vegas,
Nevada, from January 26, 2014, until January 28, 2014, at the Four Seasons, Las
Vegas, Nevada.
a. O'Malley registered for and traveled to the 2014 CARH held at the Four
Seasons, Las Vegas, Nevada, in his capacity as the Authority Board
Director.
126. O'Malley's return from the 2014 CARH two days after the scheduled conference
conclusion date resulted in O'Malley receiving one extra per diem and gratuity
reimbursement, receiving excess reimbursement from the Authority for expenses
which were not personally incurred, and being absent from the Authority on one
scheduled work day without utilizing leave of any type.
127. O'Malley attended the 2014 CARH conference as the Authority Executive Director;
O'Malley marketed and promoted HARIE at the CARH conference before or after
Authority business hours.
THE FOLLOWING FINDINGS RELATE TO EXPENSES O'MALLEY INCURRED ON
BEHALF OF HARIE WHILE TRAVELING AND BEING COMPENSATED AS THE
AUTHORITY EXECUTIVE DIRECTOR.
128. [During] the timeframe of 2010 through 2014, O'Malley consistently utilized his
HHARIE- issued credit cards to promote HARIE- related business while in travel status
for the Authority.
129. On November 17, 2015, O'Malley provided sworn testimony at his Civil Service
Hearing (docketed under Appeal No(s). 28595 and 28596) regarding his dismissal
as the Authority Executive Director.
a. O'Malley provided testimony related to his travel to Authority - related events
in his position of Executive Director of the Authority, in part, as follows:
A responsibility of serving as a HARIE Board member is to entertain
clients at conferences attended, and it was typical to entertain HARIE
clients while on housing authority trips if HARIE clients were on the
same trips;
O'MaII�, 15 -015
age 3322
2. O'Malley approved his own time via signature on his weekly work
reports;
3. O'Malley testified that he had no supervisor that signed off on his
weekly work sheets and that his weekly work sheets were not
submitted to the Authority Board of Directors;
4. O'Malley was not required to go to the Authority Board and ask/seek
ermission to travel, did not do so, and such held true for all of his
ravel (HARIE and Authority); adding:
"Travel and training was at the Executive Director's discretion for
myself and my staff. "and;
5. The Authority Board was not required to approve travel expenses for
O'Malley or his staff, and O'Malley's travel was not specifically
approved by the Board; adding:
"It's my job. "
130. [While traveling on behalf of the Authority, O'Malley] represented HARIE from at
least late 2010 through 2014.
a. O'Malley did not seek or receive formal approval of any type from the
Authority Board of Directors to act as a representative of HARIE while on
Authorit time and/or while in Authority travel status, although the Authority
incurredyno out -of- packet expense in connection with O'Malley's activities on
behalf of HARIE, and O'Malley did not conduct HARIE business during
customary Authority business hours.
b. [When traveling (whether on behalf of the Authority, HARIE or on personal
time), O'Malley/ was available to the Authority staff by telephone and e-mail,
and he regularly took and responded to telephone calls and a -mails from
Authority staff and conducted Authority business.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT O'MALLEY WAS
ABSENT FROM THE AUTHORITY ON REGULAR WORKDAYS FOR WHICH NO LEAVE
WAS UTILIZED BUT COLLECTED HIS FULL WAGES,
131. The Authority utilizes an Employee Handbook which identifies procedures and
policies to be followed in relation to multiple subjects.
a. The subjects of hours of work and absenteeism are addressed within the
Employee Handbook.
b. The subjects of sick pay and vacation are addressed within the Employee
Handbook.
132. Established procedures existed at the Authority during O'Malley's tenure in relation
to the utilization of sick time as well as vacation and /or personal time.
a. Use of unanticipated sick time was completed as detailed below:
Calling in to the Authority office by the employee and speaking to an
Authority representative or leaving a message on the Authority
answering machine regarding the call -off;
O�MaII�, 15-015
age 3333
2. Completion of an absence report form for the employee by the
Authority representative answering the telephone or obtaining the
recorded message;
3. Placement of the absence report into O'Malley's "In" box for
subsequent presentation to O'Malley for review and approval; and
4. Retrieval of the absence report from O'Malley's "Out" box and
provision of the absence report to Personnel /Human Resources for
processing.
b. Scheduling of pre - planned vacation and/or personal time was completed as
detailed below:
1. Completion of a vacation schedule request by Authority employees at
or near the beginning of each calendar year documenting desired
vacation dates;
2. Submission of the completed vacation schedulesto Personnel /Human
Resources for recording of the specific vacation dates;
3. Forwarding the completed vacation schedules to O'Malley's "In" box
for subsequent presentation to O'Malley for review and approval; and
4. Retrieval of the vacation schedules from O'Malley's "Out" box and
return of the vacation schedules to Personnel /Human Resources.
C. Use of vacation and /or personal time not pre - scheduled was completed as
detailed below:
1. Completion of a request for leave by the employee and submission of
the request to his /her immediate supervisor for review;
2. Placement of the request for leave into O'Malley's "In" box for
subsequent presentation to O'Malley for review and approval; and
4. Retrieval of the absence report from O'Malley's "Out" box and
provision of the absence report to Personnel /Human Resources for
processing.
133. O'Malley, as the Authority Executive Director, had no immediate supervisor at the
Authority office on a day -to -day basis.
b. O'Malley approved his own sick, vacation, and personal time use.
134. O'Malley informed Druschel of sick, vacation, and /or personal time utilized for
Druschel to document on O'Malley's weekly work sheets.
a. O'Malley directed Druschel to document seven regular work hours for each
regular workday on his weekly work sheets unless specifically informed by
O'Malley of sick leave, vacation leave, or personal leave taken on specific
days /dates.
1. Druschel entered O'Malley's time on his weekly work sheets daily or
every other day as a general practice.
b. O'Malley was responsible for the review and approval of his weekly work
sheets.
O'Malle 15-015
age
135. Authority employees are paid on or about the 10t' and 25th of each month.
a. Authority employees may receive their applicable salaries via direct deposit
to a financial institution or institutions of their choice.
Authority employees may split the direct deposit of their wages into
multiple financial institutions if desired.
b. Authority employees may receive their wages in the form of a paper check if
desired.
136. O'Malley maintained personal and business accounts at multiple financial
institutions during his overall tenure as the Authority Executive Director.
a. O'Malley held signature authority over multiple accounts maintained at PNC
Bank.
b. O'Malley held signature authority over an account maintained at Butler
Armco Federal Credit Union.
137. O'Malley consistently received his Authority wages due in his position as Executive
Director of the Authority via direct deposit to financial institutions of O'Malley's
choice.
a. O'Malley consistently received wages for thirty -five (35) hours worked per
week.
O'Malley was required to work a minimum of thirty -five (35) hours per
week in his position as Executive Director for the Authority.
138. As of at least 2010, O'Malley accrued vacation leave, sick leave, and personal leave
on an annual basis in the amounts as shown below:
Vacation Leave Sick Leave Personal Leave
20 days 140 ours) 15 days 105 hours) 2 days .0 hours)
a. O'Malley accrued leave in the amount prescribed within the Authority
Employee Handbook.
139. Although O'Malley was required to use leave of some type to account for absences
during normal workdays and hours, O'Malley failed to utilize leave to account for his
absence from the Authority on eight (8) work days between July 2010 and May
2013 beyond those previously identified as follows:
a. July 16, 2010.
b. February 27, 2012, through February 29, 2012.
C. July 23, 2012, through July 24, 2012.
d. May 30, 2013, through May 31, 2013.
140. O'Malley utilized vacation leave to account for his absence from the Authority on
regular workdays of Monday, July 19, 2010, through Friday, July 23, 2010, as well
as Monday, July 26, 2010, through Tuesday, July 27, 2010.
a. O'Malley traveled for vacation over the referenced timeframe.
Page 5 15 -015
Page 35
141. On Friday, July 16, 2010, a regular workday for Authority employees, O'Malley
utilized an Authority vehicle, a 2009 Buick Lucerne, to travel to vacation in the
Delaware area.
a. O'Malley's Authority weekly work sheet documented O'Malley as having
worked 7.0 regular hours on Friday, July 16, 2010.
b. O'Malley was absent from the Authority for the normal workday on July 16,
2010, although O'Malley's Authority worksheets identify O'Malley as working
seven regular hours on July 16, 2010,
C. O'Malley's Authority calendar documented only "VAC" for Friday, July 16,
2010.
142. The Authority maintained an E -ZPass account and Transponder for use in
O'Malley's vehicle.
a. The Authority Account Number was [account number redacted].
b. The Transponder Number assigned to the Authority account was 640031.
C. Tolls paid via use of the Authority E -ZPass and subsequent replenishment of
the account balance was automatically processed through O'Malley's
Authority American Express [account number redacted] when necessary.
143. O'Malley utilized his Authority - provided 2009 Buick Lucerne for transportation
purposes to, during, and from vacation in the Delaware area spanning the dates of
July 16, 2010, through July 27, 2010.
a. E -ZPass records associated with the Authority's E -ZPass account as tied to
the Transponder in the Authority 2009 Buick Lucerne documented O'Malley's
absence from the Authority on July 16, 2010.
1. E -ZPass records document O'Malley having entered the Pennsylvania
Turnpike at the Warrendale interchange at approximately 10:05 a.m.
and exiting at the Allegheny Valley interchange at approximately
10:22 a.m.
2. E -ZPass records document O'Malley having re- entered the
Pennsylvania Turnpike at the Pittsburgh interchange at approximately
11:05 a.m. and exiting at the Breezewood interchange at
approximately 1.03 p.m.
3. E -ZPass records document O'Malley having paid a toil via E-ZPass
for the William Preston Lane, Jr., memorial bridge in Maryland at
approximately 3:32 p.m.
144. O'Malley traveled for vacation from July 16, 2010, through July 27, 2010, without
utilizing leave to account for work hours absent from the Authority during regular
work hours on Friday, July 16, 2010.
a. O'Malley was absent from the Authority without using leave for approximately
7.0 hours over the applicable time frame.
b. O'Malley's hourly wage equivalent was $61.17 per hour in 2010.
C. O'Malley received his full normal wages for regular work hours missed during
his absence from the Authority for which no leave was utilized.
O'Malle , 15 -015
Page
1. O'Malley had an existing balance of at least fifteen and one --half
vacation days and eight and three - quarters personal hours as of July
16, 2010, not including vacation and personal time accrued during the
third quarter of the 2010 calendar year to that point.
145. O'Malley was registeredlscheduled to attend the 2012 National Housing &
Rehabilitation Association ( "NH &RA ") annual meeting in West Palm Beach, Florida,
from February 21, 2012, through February 26, 2012.
a. The scheduled meeting encompassed workdays of Tuesday, February 21,
2012, through Friday, February 24, 2012.
146. O'Malley did not return from the 2012 NH &RA annual meeting until Wednesday,
February 29, 2012.
a. Days encompassing the timeframe of Monday, February 27, 2012, through
Wednesday, February 29, 2012, were regular workdays for Authority
employees.
147. Financial records from accounts at PNC Bank and Butler Armco Credit Union over
which O'Malley holds signature authority as well as O'Malley's use of his HARIE-
provided credit card documented O'Malley's geographical location via the following
activity on February 27, 2012, through February 29, 2012:
Account
Date
Description
Location
[redacted]
Monday, February 2716
ATM Withdrawal Seminole Hard Rock
Hollywood, FL
[redacted]
Tuesday, February 28'
ATM Seminole Hard Rock
Hollywood, FL
f redacted]
Wednesday, February
291'
2818 Check Card Purchase Tatu
Ft. Lauderdale, FL
12:17pm
Wednesday, February
02/28/12
2:31 pm
148. Cellular telephone records associated with O'Malley's Authority - issued cellular
telephone also confirm O'Malley's geographic location in Florida from February 27,
2012, to February 29, 2012, as shown below:
Date
Time
Ori ination*
0272-7/12
3:25pm
ollywood, FL
02/27/12
3:28pm
Hollywood, FL
02/27/12
3:32pm
Hollywood, FL
02/27/12
6:14pm
Davie, FL
02/28/12
12:17pm
Davie, FL.
02/28/12
2:31 pm
Davie, FL
02/28/12
2:58pm
Hollywood, FL
02/28/12
3:00pm
Hollywood, FL
02/28/12
3:13pm
Hollywood, FL
02/28/12
3:57pm
Hollywood, FL
02/28/12
5:02pm
Hollywood, FL
02/29/12
9:14am
Davie, FL
02/29/12
6:14pm
Imperial, PA
02/29/12
6:17pm
Imperial PA
epresents a ey s approximate geographic location at
times calls were made or received.
a. The Authority maintained a cellular telephone account through Verizon
Wireless.
b. The cellular number assigned to O'Malley's cellular telephone was 724 -xxx-
xxxx.
0�-Malley, 15 -015
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149. O'Malley's 2012 leave records document no leave of any type utilized by O'Malley
from February 27, 2012, through February 29, 2012.
a. O'Malley's week] work sheets documented no hours worked by O'Malley
from February 27, 2012, through February 29, 2012.
b. O'Malley's Authority calendar documented only "OUT" for the dates of
February 27, 2012, through February 29, 2012.
150. O'Malley traveled to Florida over the timeframe of February 21, 2012, through
February 29, 2012, in association with Authority - related travel to the 2012 NH &RA
annual meeting, without utilizing leave to account for work hours absent from the
Authority during regular work days on February 27, 2012, through February 29,
2012.
a. O'Malley was absent from the Authority without using leave for approximately
21.0 hours over the applicable timeframe.
b. O'Malley's hourly wage equivalent was $64.90 per hour in 2012.
C. O'Malley received his full normal wages for regularwork hours missed during
his absence from the Authority for which no leave was utilized.
1. O'Malley had an existing balance of at least twelve vacation days and
19.75 personal hours as of February 28, 2012, not including vacation
and personal time accrued during the first quarter of the 2012
calendar year to that point.
151. O'Malley was on vacation from the Authority from Thursday, July 19, 2012, through
Sunday, July 22, 2012, as well as Wednesday, July 25, 2012, through Monday, July
30, 2012.
a. O'Malley was not listed as utilizing leave from the Authority on either Monday
July 23, 2012, or Thursday July 24, 2012.
152. O'Malley was absent from the Authority office on July 23, 2012, and July 24, 2012,
while performing services in his role as a Board member for HARIE.
a. On July 23, 2012, O'Malley departed his vacation site and traveled to Wilkes -
Barre, Pennsylvania, pursuant to a subpoena, for the purpose of appearing
as a witness on July 24, 2012, for HARIE in the Middle District of
Pennsylvania in the matter of Carol Tokash v. HARIE, et. al (3;10 -CV -872).
1. O'Malley returned to his vacation location on July 24, 2012, for the
remainder of his vacation.
b. Days encompassing the timeframe of Monday, July 23, 2012, and Tuesday,
July 24, 2012, were regular workdays for Authority employees, including
O'Malley.
153. O'Malley's 2012 leave records document no leave of any type utilized by O'Malley
on July 23, 2012, or July 24, 2012.
a. O'Malley's weekly work sheets documented seven hours worked by O'Malley
each day on July 23, 2012, and July 24, 2012, in relation to "HARIE."
1. O'Malley's service on HARIE's Board of Directors is voluntary.
O'Malley, 15 -015
Page 38
b. O'Malley's Authority calendar documented "VAC" for July 23, 2012, and July
24, 2012.
Additionally, noted for July 23, 2012, was Marcellus Shale Conf Call.
154. Financial records from accounts at PNC Bank and Butler Armco Credit Union over
which O'Malley holds signature authority as well as O'Malley's use of his HARIE-
provided credit card documented O'Malleyy's geographical location via the following
activity from July 20, 2012, through July 30, 2012, including activity specifically on
July 23, 2012, and July 24, 2012, as follows:
Account
Date
Description
Location
[redacted]
Friday, July 20, 2012
POS Purchase
Exxon Mobile, Georgeto, DE
[redacted]
Friday, July 20, 2012
HARIE Visa Purchase
Charlie's Bayside, DE
[redacted]
Monday, July 23, 2012
POS Purchase
Harris Teeter, Selbyville, DE
2818 Check Card
[redacted]
Monday, July 23, 2012
Purchase
°td, Fen�wicklIssland,
18 Check Card
Charlie's Baysid
[redacted]
Monday, July 23, 2012
Purchase
DE
[redacted]
Tuesday, July 24,
2092
HARIE Visa Purchase
Nantuckets, Fenwick Island, DE
[redacted]
Thursday, July 26,
2012
HARIE Visa Purchase
Ruths Chris Steakhouse, Berlin, MD
2818 Check Card
Harborwatch Restaurant, Ocean City,
[redacted]
Friday, July 27, 2012
Purchase
2818 Check Card
MD
Fenwick Crab House, Fenwick Island,
[redacted]
Monday, July 30 2012
Purchase
DE
155. O'Malley failed to utilize leave to account for work hours absent from the Authority
during regular work days on July 23, 2012, and July 24, 2012.
a. O'Malley was absent from the Authority without using leave for approximately
14.0 hours over the applicable timeframe.
b. O'Malley's hourly wage equivalent was $64.90 per hour in 2012.
C. O'Malley received his full normal wages for regularwork hours missed during
his absence from the Authority for which no leave was utilized.
1. O'Malley had an existing balance of at least nine (9) vacation days
and sixteen (16) and on personal hours as of July 23, 2012,
not including vacation and personal time accrued during the third
quarter of the 2012 calendar year to that point.
156. O'Malley was absent from Authority offices during the timeframe of at least May 30,
2013, through May 31, 2013.
a. Days encompassing the timeframe of Thursday, May 30, 2013, and Friday,
May 31, 2013, were regular workdays for Authority employees.
1. O'Malley was not registered /scheduled to attend any Authority-related
conference over the dates of May 30, 2013, through May 31, 2013.
157. O'Malley's 2013 leave records document no leave of any type utilized by O'Malley
for the time frame of May 30, 2013, and May 31, 2013.
a. O'Malley's weekly work sheets documented seven hours worked by O'Malley
each day from Wednesday, May 29, 2013, through Friday, May 31, 2013, in
relation to "HARIE."
No HARIE- related business, conferences, meetings, etc., were
scheduled for May 29, 2013, through May 31, 2013.
O_ lylalley, 15 -015
Page 39
b. O'Malley's Authority calendar documented no activity for May 29, 2013, and
"Off" for May 30, 2013, and May 31, 2013.
HARIE was not specifically identified in O'Malley's calendar for any
dates spanning May 29, 2013, through May 31, 2013.
2. Other Authority- related entries were documented for Friday, May 31,
2013.
155. O'Malley was absent from the Authority from May 30, 2013, through May 31, 2013,
without utilizing leave to account for work hours missed during regular workdays.
a. O'Malley was absent from the Authority without using leave for a minimum of
14.0 hours over the applicable timeframe.
b. O'Malley's hourly wage equivalent was $66.84 per hour in 2013.
C. O'Malley received his full normal wages for regular work hours missed during
his absence from the Authority for which no leave was utilized.
1. O'Malley had an existing balance of at least 3.5 vacation hours and
12.75 personal hours as of May 30, 2013, not including vacation and
personal time accrued during the second quarter of the 2013 calendar
year to that point.
THE FOLLOWING FINDINGS RELATE TO OWALLEY'S USE OF AUTHORITY -OWNED
VEHICLES FOR USE BEYOND INCIDENTAL PERSONAL USE AS WELL AS THE
AUTHORITY PNC VISA CREDIT CARD TO PURCHASE GASOLINE FOR THE
VEHICLES IN ASSOCIATION WITH HIS PERSONAL USE.
159, The Authorit maintains various vehicles to assist in the overall, day -to -day
operations Ythe Authority.
160. O'Malley routinely had access to and utilized a take -home Authority vehicle in
association with his position as Authority Executive Director.
a. From approximately July 2009 to September 2013 O'Malley utilized an
Authority -owned 2009 Bunk Lucerne.
b. From approximately September 2013 into March 2015 O'Malley had access
to an Authority -owned 2013 Chrysler 300.
161. The Authority maintains a fleet account regarding fuel purchases for Authority
vehicles.
a. All Authority vehicles have a fleet card assigned to the vehicle.
b. The fleet account was in place at least during the last five years of O'Malley's
tenure as the Authority Executive Director.
162. O'Malley did not utilize an Authority fleet card for fuel purchases.
a. O'Malley chose to utilize his Authority - provided PNC Bank Visa [account
number redacted] to purchase fuel for his Authority - provided vehicle(s).
163. The Authority also maintained an E -ZPass account and Transponder for use in
O'Malley's vehicle.
O'Malle , 15 -015
age 4
a. No other E-ZPass Transponders were assigned to any other Authority
vehicles during O'Malley's tenure.
b. No vehicles other than the 2009 Buick Lucerne and subsequently the 2013
Chrysler 300 were assigned to the Transponder.
164. O'Malley utilized his Authority - provided 2009 Buick Lucerne for transportation
purposes to, during, and from vacation spanning the dates of July 16, 2010, through
July 27, 2010.
a. E -ZPass records tied to the Transponder associated with the Authority 2009
Buick Lucerne documented O'Malley's use of the Authority vehicle and E-
ZPass account.
1. O'Malley incurred tolls while traveling for vacation totaling $44.20
which were charged to and paid through the Authority E -ZPass
account.
b. Financial records from accounts at PNC Bank and ButierArmco Credit Union
over which O'Malley holds signature authority documented O'Malley's
geographical location via the following activity:
Account
Date
DescrF Lion
Location
eCh ck Carci'Purchase
[redacted]
Monday, July 19, 2010
#2818
Charlie's Bayside Ltd, Fenwick Island, DE
[redacted]
Monday, July 19, 2010
POS Purchase
Montego Bay Su, Ocean City, MD
[redacted]
Monday, July 19, 2010
POS Purchase
Food Lion, Ocean City, MO
Wednesday, July 21,
2818 Check Card
[redacted]
2010
Purchase
Ponzetti's Pizza, Ocean City, MD
2818 Check Card
[redacted]
Thursday, July 22, 2010
818
Charlie's Bayside Ltd, Fenwick Island, DE
Check Card
[redacted]
Thursday, July 22, 2010
8rc Check
Shamrock Shanty, Fenwick Island, DE
Card
[redacted]
Friday, July 23, 2010
ATM
Harbor Watch Restaurant, Ocean City, MD
PNC Bank
[redacted]
Sunday, July 25, 2010
Boardwalk
Atlantic City, NJ
Check Card
[redacted]
Monday, July 26, 2010
Purchase
House of Welsh, Fenwick Island, DE
2818 Check Card
Ocean Side Sub Shop & Pizzeria, Fenwick
[redacted]
Monday Jul 26 2010
Purchase
Island DE
C. Authority PNC Bank Visa statements documenting O'Malley's sub - account
[account number redacted] identified O'Malley's use of his Authority Visa at
Sunoco in Newburg, Pennsylvania, for a purchase on July 27, 2010, in the
amount of $27.43.
1. O'Malley utilized his Authority Visa card for personal use while on
vacation.
2. Payment of O'Malley's personal charge on July 27, 2010, in the
amount of $27.43 on his Authority Visa was included within the
$794.96 automatic withdrawal by PNC on August 26, 2010, from the
Authority General Fund Account [account number redacted].
d. O'Malley's leave records specifically document O'Malley's use of vacation
leave for all work days encompassed within the dates of July 19, 2010,
through July 27, 2010.
1. O'Malley initiated his travel for vacation on Friday, July 16, 2010,
without utilizing leave to account for his absence from the Authority
during a normal workday.
OO''Malle , 15 -015
aP ge 41
165. O'Malley utilized his Authority - provided 2009 Buick Lucerne for transportation
purposes to, during, and from vacation spanning the dates of August 25, 2010,
through August 29, 2010.
a. E -ZPass records tied to the Transponder associated with the Authority 2009
Buick Lucerne documented O'Malley's use of the Authority vehicle and E-
ZPass account.
1. O'Malley incurred tolls while traveling for vacation totaling $60.22
which were charged to and paid through the Authority E -ZPass
account.
b. Financial records from the account at Butler Armco Credit Union over which
O'Malley holds signature authority further documented O'Malley's
geographical location via the following activity on August 27, 2010, and
August 28, 2010:
Account
Date
Description
Location
[redactedl
Friday, August 27, 2010
Saturday, August 28,
ATM Harrah's Blvd
Atlantic City, NJ
redacted
2010
ATM Harrah's Blvd
Atlantic City, NJ
C. PNC Bank Visa statements documenting O'Malley's sub - account [account
number redacted] identified O'Malley's use of his Authorlt Visa at Sunoco in
Somerset, Pennsylvania, for a purchase in the amount of $37.07 and a
purchase at Sunoco in Pleasantville, New Jersey, for a purchase in the
amount of $32.00 on August 25, 2010, and August 29, 2010, respectively.
O'Malley utilized his Authority Visa card for personal use while on
vacation.
2. Payment of O'Malley's personal charge on August 25, 2010, in the
amount of $37.07 and on August 29, 2010, in the amount of $32.00
on his Authority Visa was included within the $794.96 and $411.63
automatic withdrawals by PNC from the Authority General Fund
Account [account number redacted] on August 26, 2010, and
September 27, 2010, respectively.
d. O'Malley's leave records document O'Malley's use of vacation leave for all
work days encompassed within the dates of August 25, 2010, through
August 29, 2090.
166. O'Malley chose to utilize the Authority 2009 Buick Lucerne for transportation
purposes in association with his August 2010 vacation instead of utilizing his
privately -owned vehicle or renting a vehicle for transportation purposes.
a. O'Malley had received no specific permission or approval from the Authority
Board to utilize the Authority vehicle for personal transportation for vacation
purposes in August 2010.
167. O'Malley utilized his Authority - provided 2009 Buick Lucerne for transportation
purposes to, during, and from vacation spanning the dates of July 23, 2011, through
August 1, 2011.
a. E -ZPass records tied to the Transponder associated with the Authority 2009
Buick Lucerne documented O'Malley's use of the Authority vehicle and E-
ZPass account.
O�Malle r, 15 -015
awe 42
O'Malley incurred tolls while traveling for vacation totaling $46.16
which were charged to and paid through the Authority E -ZPass
account.
168. Financial records from the account at Butler Armco Credit Union over which
O'Malley holds signature authority further documented O'Malley's geographical
location via the following activity:
Account
Date
Descri tiontlon
Location
2 &18 Check Card
[redacted]
Tuesday, July 26, 2011
Purchase
Ponzetti's Pizza, Ocean City, MD
[redacted]
Friday, July 29, 2011
Blue Fish
Ocean City, MD
2818 Check Card
Fenwick Crab House, Fenwick Island,
[redacted]
Friday, July 29, 2011
Purc Ch
DE
eck Gard
[redacted]
Friday, July 29, 2011
Monday, August 01,
Purchase
Cape May -Lewes Ferry, Lewes, DE
[redacted]
2011
ATM Withdrawal
Ta' Mahal Casino, Atlantic City, NJ
a. O'Malley's leave records document O'Malley's use of vacation leave for all
work days encompassed within the dates of July 23, 2011, through August 1,
2011.
169. O'Malley utilized his Authority- provided 2009 Buick Lucerne for transportation
purposes for a personal weekend trip to the Atlantic City, New Jersey, area
spanning the dates of March 24, 2012, and March 25, 2012.
a. E -ZPass records tied to the Transponder associated with the Authority 2009
Buick Lucerne documented O'Malley's use of the Authority vehicle and E-
ZPass account.
1. O'Malley incurred tolls while utilizing the Authority vehicle for personal
travel to the Atlantic City, New Jersey, area totaling $26.30 which
were charged to and paid through the Authority E -ZPass account.
b. O'Malley departed the Atlantic City, New Jersey, area on Monday, March 26,
2012, and traveled to Norristown, Pennsylvania, for a 1:30 p.m. PHFA-
related meeting.
1. O'Malley was not assessed a day's wages or tolls incurred in relation
to the trip from the Atlantic City, New Jersey, area to Norristown.
170. O'Malley utilized his Authority - provided 2013 Chrysler 300 for transportation
purposes for personal PAHC business spanning the dates of September 24, 2013,
through September 26, 2013.
a. E -ZPass records tied to the Transponder associated with the Authority 2013
Chrysler 300 documented O'Malley's use of the Authority vehicle and E-
ZPass account.
b. O'Malley's leave records document O'Malley's use of vacation leave for
September 25, 2013, and September 26, 2013.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS INVOLVING O'MALLEY'S
STATEMENTS OF FINANCIAL INTERESTS FOR CALENDAR YEARS 2010 THROUGH
2014.
171. On May 15, 2015, a Statement of Financial Interests ( °SFl ") compliance review was
conducted at the Housing /Redevelopment Authority office located at 114 Woody
Drive, Butler, PA 16002.
O'Malley, 15 -015
Page 43
a. O'Malley's SFIs for calendar years 2010 through 2014 were subsequently
obtained from Housing Authority personnel on May 21, 2015.
172. O'Malley filed SFIs for calendar years 2010 through 2014 in compliance with
Section 1104(a) of the State Ethics Act as follows:
Date Filed
January 7, 2011
January 24, 2012
May 13, 2013
January 21, 2014
January 15, 2015
For Calendar Year
20T0_
2011
2012
2013
2014
173. O'Malley failed to disclose the Housing Authority as a direct or indirect source of
income on his SFIs filed for calendar years 2011 through 2014 as well as the
Pennsylvania Affordable Housing Corporation ( "PAHC ") as a direct or indirect
source of income on his SFI filed for calendar year 2014 as mandated per Section
1105(b)([5]) of the State Ethics Act.
a. O'Malley earned income from the Housing Authority totaling in excess of
$1,300.00 annually from the 2011 calendar year through the 2014 calendar
year as documented on IRS Form W -2s received as detailed below:
2011 2012 2013 2014
$12 0.50 $124,367.54 $125,775.92 $129, $.08
b. O'Malley earned income from PAHC totaling approximately $13,300.00 in
calendar year 2014.
G. O'Malley's 2011 through 2014 calendaryear SFIs noted onlythe following ...
direct or indirect sources of income for O'Malley:
1. 2011: Janet O'Malley, Spouse
2. 2012: None
3. 2013: None
4. 2014: None
174. O'Malley failed to disclose transportation, lodgin , and hospitality received from
HARIE in connection with his position as the Authority Executive Director on his
SFIs filed for calendar years 2010 through 2014.
a. O'Malley's use of his HARIE - issued credit cards for expenses incurred
spanning the 2010 through 2014 calendar years documented O'Malley acting
as an agent of HARIE promoting HARIE business while in travel status for
the Authority at Authority - related events.
1. Use of credit cards provided to HARIE Board members is limited to
use in furtherance of HARIE business.
b. O'Malley's service on the HARIE Board of Directors was connected to his
public employment as the Housing Authority Executive Director.
1. Absent O'Malley's authorization of HARIE to provide insurance for the
Authority, the Authority could not have been a member of HARIE.
O'Niafle , 15 -015
Page 44
2. Absent the Authority being a member of HARIE, O'Malley could not
have been appointed to the HARIE Board of Directors.
3. Absent O'Malley voluntarily serving on the HARIE Board of Directors,
O'Malley would not have had access to HARIE - issued credit cards.
4. Absent O'Malley's access to HARIE - issued credit cards, O'Malley
would not have had the resources to entertain existing HARIE clients,
including himself, or potential HARIE clients.
C. O'Malley expensed HARIE funds totaling in excess of $650.00 per year in
the aggregate on HARIE's behalf for transportation, lodging, and hospitalit
while in travel status forthe Authority on Authority - related events during each
of the 2010 through 2014 calendar years.
175. O'Malley failed to disclose the free annual use of beachfront property owned by
Volpe, Jr., for vacation purposes for O'Malley and his family at the Delaware shore
encompassing the 2010 through 2014 calendar years on his SFIs filed for calendar
years 2010 through 2014 in connection with his position as the Authority Executive
Director.
a. Absent the Authority being a member of HARIE, O'Malley could not have
been appointed to the HARIE Board of Directors.
b. The value associated with O'Malley's use of Volpe, Jr.'s, beachfront property
in the Delaware area for calendar years 2010 through 2014 exceeded the
$650.00 threshold for SFI disclosure for each of the calendar years from
2010 through 2014.
1. During a sworn statement provided to Commission representatives on
December 22, 2015, Volpe, Jr., verified O'Malley's use of Volpe, Jr.'s,
Delaware beachfront property for summer vacation purposes on an
annual basis.
C. O'Malley's 2010 through 2014 calendar year SFIs all documented "none" in
relation to transportation, lodging, and hospitality received.
176. O'Malley failed to disclose his office, directorship, and/or employment on his SFIs
filed for calendar years 2010 through 2014 for the following business entities as
mandated per Section 1105(b)(8) of the State Ethics Act as shown below:
Entity
Position
Tenure*
Disclosed on SFI For Calendar
Year
2010
2011
2012
2013
2014
HARIE
Board Member 1 Vice - President
2010-
No
Yes
No
-
-
2012
Board Member 1 Acting President
2012-
-
-
No
No
-
2013
Board Member/ President
2012-
-
-
No
No
Yes
2014
PAHC
President
2010-
Yes
No
Yes
No
No
2014
Butler Area Housing &
Board Member 1 Secretary-
2010-
No
No
No
No
No
Community Dev Corp
Treasurer
2014
Historic LaFayette, Inc
Board Member 1 Secretary —
2010-
No
No
No
No
No
Treasurer
2014
O'Malle , 15 -015
aP ge �€5
Entity
Position
Tenure"
Disclosed on SFI For Calendar
Year
2010
2011
2012
2013
2014
Butler Area Housing
Board Member, Secretary —
2010—
No
No
No
Na
No
Rehabilitation, Inc
Treasurer
2014
Butler County
Board Member, Secretary --
2010—
No
No
No
No
No
Homeownership Corp
Treasurer
2014
PAHRA
Board Member
2010 -2014
No
No
No
No
No
onsi eration given on y to t e
t raug ca en ar years
III. DISCUSSION:
In each of his capacities as the Executive Director for the Housing Authority of the
County of Butler from July 13, 1992, until March 13, 2010, and as the Executive Director for
the Redevelopment Authority of the County of Butler from November 1, 1995, until March
13, 2015, Respondent Pearse O'Malley, also referred to herein as "Respondent,"
Respondent O'Malley," Mr. O'Malley," and "O'Malley," 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.
The allegations are that O'Malley violated Sections 1103(a), 1105(b)(5 , 1105(b)(7),
and 1105(b)(8) of the Ethics Act, 65 Pa.C.S. §§ 1103(a), 1105(b)(5), 1105(b)(7), and
1105(b)(8):
(1) When he utilized the authority of his public employment to realize a private
pecuniary benefit for himself and/or a business with which he is associated,
namely the Pennsylvania Affordable Housing Corporation ( "PAHC "), when he
utilized the physical assets of the Butler County Housing Authority/Butler
County Redevelopment Authority, including but not limited to: office space,
vehicle, EZ PASS, email, staff, internet, etc., in an effort to further the
interests of PAHC;
(2) When he failed to submit leave and/or otherwise seek pre - approval to
engage in extended travel beyond what was necessary for official business,
when a portion of such travel was personal and/or related to the Housing and
Redevelopment Insurance Exchange ( "HARIE "), a business with which he
was associated;
(3) When he utilized the credit card of the Butler County Housing
Authority/Butler County Redevelopment Authority to pay for personal
expenses not related to official business;
(4) When he failed to disclose the name and address of any direct or indirect
source of income totaling in the aggre ate $1,300 or more, including but not
limited to income received from the Butler County Housing Authority for
calendar years 2011 through and including 2014;
(5) When he failed to disclose the name and address of the source and the
amount of any payment for or reimbursement of actual expenses for
transportation and lodging or hospitality received in connection with public
office or employment where such actual expenses for transportation and
lodging or hospitality exceeded $650 in an aggregate amount per year for
calendar years 2010 through and including 2014, including but not limited to
expenses paid by HARIE; and
(6) When he failed to disclose his holding of any office, directorship or
employment of any nature whatsoever in any business entity, for calendar
years 2010 through and including 2014, namely the office(s) he held with
OO''Malle , 15 -015
aP ge 46
HARIE, the Butler Area Housing & Community Development Corporation,
Historic LaFayette, Inc., the Butler County Homeownership Corporation, and
PA Affordable Housing Corp.
Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a) Conflict of interest. --No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employyee of the authority of his office or
employment or any confidential information received through
his hold] ng public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a member
of his immediate family or a business with which he or a
member of his immediate family is associated.
65 Pa.C.S. § 1102
Section 1103(a) of the Ethics Act prohibits a public official /public employee from
using the authority of public office /employment or confidential information received by
holding such a public position for the private 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 Statement of Financial Interests ( "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.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(b)(7) of the Ethics Act requires the filer to disclose on the SFI the name and address
of the source and the amount of any payment for or reimbursement of actual expenses for
transportation and lodging or hospitality received in connection with public office or
employment where such actual expenses exceed $650 in an aggregate amount per year.
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.
O'Malley, 15 -015
age 4
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Background.
Respondent O'Malley was employed as the Executive Director for the Housing
Authority of the County of Butler from July 13, 1992, until March 13, 2015. O'Malley also
served as the Executive Director for the Redevelopment Authority of the County of Butler
from November 1, 1995, until March 13, 2015. Although the aforesaid Housing Authority
and Redevelopment Authority (also collectively referred to herein as the "Authority" or
"Authorities ") are separate and independent entities, each entity is governed by the same
persons who serve on a five- Member Board of Directors. Each Board Member is
specifically appointed to each entity's Board of Directors by the Butler County
Commissioners. As the Executive Director for each of the Authorities, O'Malley reported to
the Authority Board of Directors in the Authority's overall chain -of- command. As Authority
Executive Director, O'Malley also served as Secretary of the Authority Board of Directors.
O'Malley's duties and responsibilities as Authority Executive Director and Authority
Board Secretary were as set forth at Fact Findings 2 -3 b. As Authority Executive Director,
O'Malley's duties included, inter alia, exercising general supervision over the administration
of Authority business anU affairs, managing housing projects, developing and
recommending administrative policies, procedures, and regulations, and participating in the
development of operational policies. As Authority Board Secretary, O'Malley's duties
included, inter alia, having the care and custody of Authority funds, signing checks as an
authorizecT_s gnatory for the Authority, and keeping regular books of accounts showing
receipts and expenditures.
O'Malley routinely approved bills for payment by the Authority by signing his name
or initials to the bill /invoice received. The bills /invoices were then directed to a Comptroller
for signature and to the Finance Department for check generation. At monthly legislative
meetin gs, the Authority Board approved a check register representing all checks previously
issued for the prior calendar month.
The regular working hours for Authority administrative personnel are Monday
through Friday, 8:30 a.m. to 4:30 p.m. with a one -hour unpaid lunch period. Full time
administrative personnel work seven hours per day, 35 hours per week. O'Malley was
required to use leave to account for his absences during normal work days and hours.
As Authority Executive Director, O'Malley was required to maintain weekly work
sheets to account for his hours worked, leave utilized, and the like. Housing Authority
Executive Secretary Karen Druschel ( "Druschel ") coinpleted O'Malley's weekly work sheets
in accordance with O'Malley's direction to document seven regular work hours for each
regular workday on his weekly work sheets unless specifically informed by O'Malley of sick
leave, vacation leave, or personal leave taken on specific days /dates. O'Malley did not
submit his weekly work sheets to the Authority Board Chairman, any Board committee, or
the Board as a whole for review or approval. O'Malley reviewed and approved his own
weekly work sheets in his position as Executive Director. O'Malley approved his own sick,
vacation, and personal time use.
As Authority Executive Director, O'Malley independently determined the need for
Authority - related travel and approved Authority- related travel for himself and all
subordinate Authority employees. O'Malley did not seek and/or receive prior approval from
the Authority Board for his own travel or the travel of other Authority representatives.
Although not specifically enumerated in a travel policy, Authority officials and employees
were permitted a travel day before the start of a conference and a travel day at the
conclusion of a conference. Authority representatives received their regular salaries for
O'Mafie , 15 -015
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days in travel status which related to Authority business. O'Malley signed and approved
his own travel expense documents.
All expenses submitted to the Authority for reimbursement were to relate to
expenses incurred while on work - related business only, and personal use of Authority
property, supplies, and equipment was unauthorized.
Re ardin O'Malle 's Activities Relating to HARIE:
As the Executive Director and contracting officer for the Authority, O'Malley was
responsible for the procurement of certain insurance for the Authority.
Since the 1990's the Authorities procured insurance through HARIE. HARIE is a
domestic non - profit reciprocal insurance exchange that provides insurance to public
housing authorities, redevelopment authorities, and municipalities. HARIE is not a
governmental entity, a political subdivision of a governmental entity, or a body corporate
and politic.
Entities desiring to obtain insurance through HARIE must become a subscribing
member of HARIE to utilize its services. The Executive Director or Executive of each
member /subscriber serves as the member's/subscriber's designated representative to
HARIE in association with the transaction of any HARIE business. HARIE has no funding
source outside its members/subscribers.
HARIE is governed by a Board of Directors. Only individuals serving as
representatives of HARIE members/subscribers are permitted to serve on the Board of
Directors. HARIE Board members receive no salary for such service; however, they do
receive various perks related to their service on the HARIE Board, which include: (1) two
or three training/work sessions plus at least one Board retreat held each year at HARIE's
expense at desirable locations within the United States; (2) use of a HARIE - backed credit
card for HARIE - related business; and (3) use of a beachfront property in Fenwick Island,
Delaware, owned by an individual referred to herein as "Volpe, Jr.," and "Volpe," for
vacation purposes as well as a double condominium located in Chatham Towers in
Pittsburgh, Pennsylvania, at no cost to Board Members.
HARIE Board Members /representatives are issued credit cards from HARIE for
purposes that include promoting /marketing HARIE to existing and potential HARIE
members/subscribers. The majority of such promotional and marketing expenses are
incurred outside of HARIE- related functions.
O'Malley served on HARI E's Board of Directors from approximately January 1995 to
March 2015. O'Malley voluntarily chose to serve as a member of HARIE's Board of
Directors; he was not required to do so as Authority Executive Director. O'Malley held
various officer positions during his tenure on HARIE s Board of Directors, including Vice -
President from 2001 -2012, Acting President from 2012 -2013, and President from 2013 to
January 15, 2015.
While attending conferences at the Authority's expense, as the Authority Executive
Director, O'Malley conducted business on behalf of HARIE after Authority business hours.
O'Malley did not seek or receive formal approval from the Authority Board of Directors to
act as a representative of HARIE while on Authority time and/or while in Authority travel
status, although the Authority incurred no out -of- pocket expense in connection with
O'Malley's activities on behalf of HARIE, and O'Malley did not conduct HARIE business
during customary Authority business hours.
As a member of HARIE's Board of Directors, O'Malley traveled to multiple HARIE -
related functions on an annual basis. O'Malley received no formal approval from the
Authority Board of Directors at any point in time to attend HARIE - related functions while on
O'Malle , 15 -015
age 4
Authority time. However, O'Malley did not utilize leave to account for work hours missed in
his public position as Authority Executive Director while attending functions for HARIE.
O'Malley received his complete Authority salary for days traveling tolfrom and attending
functions relating to HARIE. During the time period under review, O'Malley's travel to
HARIE Board meetings, marketing meetings, and Board retreats resulted in O'Malley being
absent from the Authority for at least 241.5 work hours without utilizing leave, as follows:
O'Malley's attendance at HARIE Board of Directors meetings during regular
Authority work days and hours for which O'Malley did not utilize leave resulted in
O'Malley's receipt of wages from the Authority for 52.5 hours;
O'Malley's attendance at marketing meetings organized by HARIE during regular
Authority work days and hours for which O'Malley did not utilize leave resulted in
O'Malley's receipt of wages from the Authority for 42 hours; and
O O'Malley's attendance at HARIE Board retreats between March 2011 and August
2014, in his capacity as a member and officer of the HARIE Board of Directors,
during regular Authorityy work days and hours for which O'Malley did not utilize
leave, resulted in O'Malley's receipt of wages from the Authority for 147 hours.
O'Malley did not seek or receive prior approval from the Authority Board of Directors
to attend HARIE Board meetings, marketing events, or Board retreats on Authority time
without utilizing leave.
Additionally, from October 2010 through November 2014, O'Malley attended HARIE
training sessions /workshops as a member and officer of the HARIE Board of Directors.
O'Malley, as Authority Executive Director, approved his own travel to the HARIE training
sessions /workshops without utilizing leave to account for his absence from the Authority
during normal work days and hours.
O'Malley was absent from the Authority office on July 23, 2012, and July 24, 2012,
while performing services in his capacity as a member of the HARIE Board of Directors.
O'Malley failed to utilize leave to account for approximately 14.0 work hours absent from
the Authority during regular work days on July 23, 2012, and July 24, 2012. O'Malley's
hourly wage equivalent was $64.90 per hour in 2012.
O'Malley was absent from the Authority from May 30, 2013, through May 31, 2013,
without utilizing leave to account for work hours missed during regular workdays.
O'Malley's weekly work sheets documented seven hours worked by O'Malley each day
from Wednesday, May 29, 2013, through Friday, May 31, 2013, in relation to "HARIE.'
O'Malley's Authority calendar documented no activity for May 29, 2013, and "Off" for May
30, 2013, and May 31, 2013. O'Malley was absent from the Authority without using leave
for a minimum of 14.0 hours over the applicable timeframe. O'Malley's hourly wage
equivalent was $66.84 per hour in 2013.
Regarding O'Malley's Extended Travel:
Between September 2010 and December 2014, O'Malley attended a minimum of
fifty -seven (57) different conferences in his position as Authority Executive Director. These
conferences were held in locations detailed in Fact Finding 74 a. The Authority paid for
O'Malley's transportation, lodging, most meals and compensation while in travel status.
For some travel expenses, O'Malley received from the Authority "per diem" expense
payments.
From 2010 through 2014 O'Malley, as Authority Executive Director, authorized his
own travel to annual "Multifamily Executive Conferences" held in Las Vegas, Nevada. As
Authority Executive Director, O'Malley: (1) authorized his travel to such conferences to
include multiple days prior to and after the official conference start and conclusion dates;
O''Malle , 15 -015
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(2) authorized his receipt of per diem expenses for excess travel days beyond the official
start and conclusion dates; (3) charged excess hotel nights for himself andlor his spouse
beyond the official start and conclusion dates; (4) authorized his receipt of reimbursements
for excess travel days; (5) failed to reimburse the Authority for charges incurred on his
Authority credit card related to airfare for his spouse; and (6 failed to utilize leave to
account for regular work days lost as a result of extension of travel dates beyond the
official conclusion of the conferences, as detailed at Fact Finding 85.
In his capacity with the Authority, O'Malley attended a June 2011 "Advanced PHA
Budgeting, Accounting, and Reportingg' seminar /workshop held atthe Golden Nugget Hotel
and Casino in Las Vegas, Nevada. Walley's travel to this seminar /workshop one day in
advance of the scheduled start date and return two days after the scheduled close date
resulted in O'Malley charging one extra night of hotel accommodations to the Authority and
receiving one extra per diem.
In his capacity with the Authority, O'Malley attended a December 2011 National
Weatherization Training Conference held in New Orleans, Louisiana. O'Malley's travel to
this conference one day in advance of the scheduled start date and return two days after
the scheduled close date resulted in O'Malley charging one extra night of hotel
accommodations to the Authority and receiving an extra partial per diem.
In his capacity with the Authority, O'Malley was registered to attend the 2012
National Housing & Rehabilitation Association ( "NH &RA ") annual meeting in West Palm
Beach, Florida, from February 21, 2012, through February 26, 2012. O Malley did not
return from the 2012 NH &RA annual meeting until Wednesday, February 29, 2012.
O'Malley was absent from the Authority without using leave for approximately 21.0 hours
over the applicable timeframe. O'Malley's hourly wage equivalent was $64.90 per hour in
2012.
In his capacity with the Authority, O'Malley attended the 2013 "Novogradac Tax
Credit Developers Conference" held at the Ritz Carlton South Beach in Miami, Florida.
O'Malley's travel to this conference two days in advance of the scheduled conference start
date and return two days after the scheduled conference close date resulted in O'Malley
charging two excess nights of hotel accommodations to the Authority, receiving two excess
per diems, receiving gratuities claimed for two excess days, and being absent from the
Authority on a scheduled work day without utilizing leave.
In his capacity with the Authority, O'Malley attended the 2014 "Novogradac Tax
Credit Housing Finance Conference" held at the Mandarin Oriental Hotel in Las Vegas,
Nevada. O'Malley's travel to this conference one day in advance of the scheduled
conference start date and return two days after the scheduled conference conclusion date
resulted in O'Malley charging one excess night of hotel accommodations to the Authority
and receiving one excess per diem.
In his capacity with the Authority, O'Malley attended the 2013 Community
Development Summit held in Pittsburgh, Pennsylvania, at the Omni William Penn Hotel.
O'Malley's return from the 2013 Community Development Summit one day after the
scheduled close date resulted in O'Malley charging one extra night of hotel
accommodations to the Authority, receiving an extra partial per diem, and being absent
from the Authority on a scheduled work day without utilizing leave.
In his capacity with the Authority, O'Malley attended the July 2013 RAD Key
Changes Meeting ( "RAD Meeting" held in Washington, DC. O'Malley's return from the July
2013 RAD meeting two days after the scheduled conference close date resulted in
O'Malley receiving an extra partial per diem and being absent from the Authority on a
scheduled work day without utilizing leave.
O'Malle , 15-015
age
In his capacity with the Authority, O'Malley attended the 2013 Pennsylvania
Economic Development Association ("PEDA" ) fall conference held in Pittsburgh,
Pennsylvania. O'Malley's travel to the 2013 PEDA fall conference two days prior to the
scheduled start date resulted in O'Malle charging one excess night of hotel
accommodations and subsistence charges to L Authority, charging of subsistence to the
Authority for one day for which a per diem had previously been provided, and receiving one
extra per diem.
In his capacity ith the Authority, O'Malley attended the 2014 Council forAffordable
and Rural Housing ("CARH ") midyear conference held at the Four Seasons, Las Vegas,
Nevada. O'Malley's return ?from the 2014 CARH midyear conference two days after the
scheduled conference conclusion date resulted in O'Malley receiving one extra per diem
and gratuity reimbursement as well as excess reimbursement from the Authority for
expenses, and being absent from the Authority on one scheduled work day without utilizing
leave.
Use of Authoritv Vehicles, E -ZPass Account, and
O'Malley utilized his Authority- provided vehicle and E -ZPass for transportation to,
during, and from vacation spanning the dates of July 16, 2010 through July 27, 2010.
While traveling for vacation, O'Malley incurred tolls totaling $44.20, which were charged to
and paid through the Authority E -ZPass account. O'Malley utilized his Authority credit card
for a personal charge on July 27, 2010, in the amount of $27.43. O'Malley was absent
from the Authority for the normal workday on July 16, 2010, without using leave.
O'Malley's hourly wage equivalent was $61.17 per hour in 2010.
O'Malley utilized his Authority - provided vehicle and E -Z ass for transportation to,
during, and from vacation spanning the dates of August 25, 2010, through August 29,
2010. While traveling for vacation, O'Malley incurred tolls totaling $60.22, which were
charged to and paid through the Authority E -ZPass account. O'Malley utilized his Authority
credit card for personal charges in the amount of $37.07 on August 25, 2010, and $32.00
on August 29, 2010, which personal charges were paid by the Authority through automatic
bank withdrawals.
O'Malley utilized his Authority - provided vehicle and E-ZPass for transportation to,
during, and from vacation spanning the dates of July 23, 2011, through August 1, 2011.
While traveling for vacation, O'Malley incurred tolls totaling $46.16, which were charged to
and paid through the Authority E -ZPass account.
O'Malley utilized his Authority- provided vehicle and E -ZPass for transportation for a
personal weekend trip to the Atlantic City, New Jersey, area spanning the dates of March
24, 2012, and March 25, 2012. While utilizing the Authority vehicle for personal travel to
the Atlantic City, New Jersey, area, O'Malley incurred tolls totaling $26.30, which were
charged to and paid through the Authority E -ZPass account. O'Malley departed the
Atlantic City, New Jersey, area on Monday, March 26, 2012, and traveled to Norristown,
Pennsylvania, for a PHFA - related meeting. O'Malley was not assessed a day's wages or
tolls incurred in relation to the trip from the Atlantic City, New Jersey, area to Norristown.
O'Malley utilized his Authority - provided vehicle and E -ZPass account for
transportation purposes for personal PAHC business spanning the dates of September 24,
2013, through September 26, 2013.
Regarding O'Malley's SFIs:
O'Malleyy failed to disclose the Housing Authority as a direct or indirect source of
income on his SFIs filed for calendar years 2011 through 2014. As detailed in Fact Finding
O�Malle , 15 -015
aP ge 52
173 a, O'Malley earned income from the Housing Authority totaling in excess of $1,300.00
annually from the 2011 calendar year through the 2014 calendar year.
O'Malley failed to disclose the PAHC as a direct or indirect source of income on his
SF1 filed for calendar year 2014. O'Malley earned income from PAHC totaling
approximately $13,300.00 in calendar year 2014.
O'Malley failed to disclose reportable transportation, lodging, and hospitality
received from HARIE in connection with his position as Authority Executive Director on his
SFIs filed for calendar years 2010 through 2014. O'Malley also failed to disclose on his
SFIs filed for calendar years 2010 through 2014 the free annual use of beachfront property
owned by. Volpe, Jr., for vacation purposes for O'Malley and his family, which O'Malley
received in connection with his position as Authority Executive Director. The value
associated with O'Malley's use of Volpe, Jr.'s, beachfront property for calendar years 2010
through 2014 exceeded the $650.00 threshold for SFI disclosure for each of the calendar
years from 2010 through 2014.
O'Malley failed to disclose on his SFIs filed for calendar years 2010 through 2014
his office, directorship, andlor employment with various business entities including HARIE,
PAHC, Butler Area Housing & Community Development Corporation, Historic LaFayette,
Inc., Butler Area Housing Rehabilitation, Inc., Butler County Homeownership Corporation,
and PAHRA, as detailed at Fact Finding 176.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
As part of a negotiated settlement agreement, the Investigative
Division will recommend the following in relation to the above
allegations:
That a violation of Section 1103(a) of the Public Official
and Employee Ethics Act, 65 Pa-C.S. § 1103(x),
occurred when Mr. O'Malley, while serving as the
Executive Director for the Butler County Housing
Authority (Pennsylvania) and the Executive Director of
the Redevelopment Authority of Butler County
(Pennsylvania), used the authority of his office by
extending Authority travel for reasons not associated
with Authority business, and received wages, and
expenses or charges were paid by the Authority
resulting in private pecuniary benefit; when he used the
authority of his office by receiving wages while absent
from the Authority on certain occasions relating to
HARIE resulting in a private pecuniary benefit; when he
used Authority E -ZPass and credit card for personal use
resulting in a private pecuniary benefit.
That a violation of Section 1105(b)(5) occurred when
Mr. O'Malley, while serving as the Executive Director for
the Butler County Housing Authority (Pennsylvania) and
the Executive Director of the Redevelopment Authority
of Butler County (Pennsylvania), failed to disclose the
name and address of any direct or indirect source of
income totaling in the aggregate $1,300 or more,
including but not limited to income received from the
O'Malley, 15 -015
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Butler County Housing Authority for calendar years
2011 through and including 2014.
C. That a violation of Section 1105(b)(7) occurred when
Mr. O'Malley, while serving as the Executive Director for
the Butler County Housing Authority (Pennsylvania) and
the Executive Director of the Redevelopment Authority
of Butler County (Pennsylvania), failed to disclose the
name and address of the source and the amount of any
payment for or reimbursement of actual expenses for
transportation and lodging or hospitality received in
connection with public office or employment where such
actual expenses for transportation and lodging or
hospitality exceed $650 in an aggregate amount per
year for calendar years 2010 through and including
2014, including but not limited to expenses paid by
HARIE.
That a violation of Section 1105(b)(8) occurred when
Mr. O'Malley, while serving as the Executive Director for
the Butler County Housing Authority (Pennsylvania) and
the Executive Director of the Redevelopment Authority
of Butler County (Pennsylvania), failed to disclose his
holding of any office, directorship or employment of any
nature whatsoever in any business entity, for calendar
years 2010 through and including 2014, namely the
office(s) he held with HARIE, the Butler Area Housing &
Community Development Corporation, Historic
LaFayette, Inc., the Butler County Homeownership
Corporation, and PA Affordable Housing Corp.
The Investigative Division has conducted a
comprehensive investigation and review of the
allegations as contained in above paragraph two (2).
After said investigation and review, the Investigative
Division has elected to not pursue the remaining
allegations. The Investigative Division and Respondent
have agreed to submit the instant Consent Agreement
and Stipulation of Findings in settlement of the matter.
4. In full and final settlement of the alleged violations, Mr.
O'Malley agrees to make payment in the total sum of
$16,131.04 (the "Settlement Amount ") as provided in this
paragraph.
a. $1,250.00 payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State
Ethics Commission within thirty (30) days of issuance of
the final adjudication in this matter representing
payment of the violations contained in paragraph 3(b
through (d) of this Consent Agreement.
$12,381.04 payable to the Housing Authority of Butler
County and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of
the final adjudication in this matter representing
payment of the violations contained in paragraph 3(a) of
his Consent Agreement.
O'Malley, 15 -015
aP ge 54
C. $2,500.00 payable to the Pennsylvania State Ethics
Commission and forwarded to the same within thirty
(30) days of the issuance of the final adjudication in this
matter representing a portion of the costs incurred by
the Commission in the investigation and enforcement of
this matter.
Mr. O'Malley agrees to file complete and accurate Statements
of Financial Interests with the Housing Authority of Butler
County and the Redevelopment Authority of Butler County
through the Pennsylvania State Ethics Commission, for the
2010 through 2014 calendar years within thirty (30) days of the
issuance of the final adjudication in this matter.
Mr. O'Malley agrees to not accept any reimbursement,
compensation or other payment from the Housing Authority of
the County of Butler representing a full or partial
reimbursement of the amount paid in settlement of this matter.
The Investigative Division shall recommend that the State
Ethics Commission take no further action in this matter; and
shall make no specific recommendations to any law
enforcement or other authority to take action in this matter.
Such, however, does not prohibit the Commission from
initiating appropriate enforcement actions in the event of
Respondents failure to comply with this agreement or the
Commission's order or cooperating with any other authority
who may so choose to review this matter further.
Consent Agreement, at 2 -4.
We accept the recommendation of the parties for a finding that a violation of Section
1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when O'Malley, while serving as
the Executive Director for the Butler County Housing Authority (Pennsylvania) and the
Executive Director of the Redevelopment Authority of Butler County (Pennsylvania), used
the authority of his office by extending Authority travel for reasons not associated with
Authority business, and received wages, and expenses or charges were paid by the
Authority resulting in private pecuniary benefit; when he used the authority of his office byy
receiving wages while absent from the Authority on certain occasions relating to HARIE
resulting in a private pecuniary benefit; and when he used an Authority E -ZPass and credit
card for personal use resulting in a private pecuniary benefit.
As detailed above, O'Malley used the authority of his public position as Authority
Executive Director when he extended Authority travel at Authority expense for reasons not
associated with Authority business. The resulting private pecuniary benefit to O'Malley
consisted of excess lodging costs, per diems, and other expenses paid by the Authority for
O'Malley's personal travel, as well as wages paid to O'Malley for days he was absent from
the Authority but did not take leave.
Likewise, O'Malley used the authority of his public position as Authority Executive
Director when he attended HARIE Board meetings, marketing meetings, and Board
retreats during at least 241.5 Authority work hours without utilizing leave. HARIE was not a
governmental entity, but rather, it was a business with which O'Malley was associated in
his capacities as a HARIE Board member and officer. O'Malley did not seek or receive
prior approval from the Authority Board of Directors to attend HARIE Board meetings,
marketing events, or Board retreats on Authority time without utilizing leave. O'Malley
O'Malley, 15 -015
age 5
received his complete Authority salary for days traveling to /from and attending functions
relating to HARIE.
O'Malley was absent from the Authority office on July 23, 2012, and July 24, 2012,
while performing services in his capacity as a member of the HARIE Board of Directors.
O'Malley failed to utilize leave to account for approximately 14.0 work hours absent from
the Authority during regular work days on July 23, 2012, and July 24, 2012. O'Malley's
hourly wage equivalent was $64.90 per hour in 2012.
O'Malley was absent from the Authority from May 30, 2013, through May 31, 2013,
without utilizing leave to account for work hours missed during regular workdays.
O'Malley's weekly work sheets documented seven hours worked by O'Malley each day
from Wednesday: May 29, 2013, through Friday, May 31, 2013, in relation to "HARIE.'
O'Malley's Authority calendar documented no activity for May 29, 2013, and "Off" for May
30, 2013, and May 31, 2013. O'Malley was absent from the Authority without using leave
for a minimum of 14.0 hours over the applicable timeframe. O'Malley's hourly wage
equivalent was $66.84 per hour in 2013.
O'Malley utilized his Authority- provided vehicle and E -ZPass for transportation to,
during, and from multiple vacations as well as a personal weekend trip to the Atlantic City,
New Jersey, area. While engaging in such personal travel, O'Malley incurred tolls which
were charged to and paid through the Authority E -ZPass account. O'Malley utilized his
Authority credit card for certain personal charges that were paid by the Authority.
O'Malley utilized his Authority-provided vehicle and E -ZPass account for
transportation purposes for personal PAHC business spanning the dates of September 24,
2013, through September 26, 2013.
With each element of the recommended violation of Section 1103(a) established,
we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa. S § 1103(a),
occurred when O'Malley, while serving as the Executive Director for the Butler County
Housing Authority (Pennsylvania) and the Executive Director of the Redevelopment
Author i y of Butler County (Pennsylvania), used the authority of his office by extending
Authority travel for reasons not associated with Authority business, and received wages,
and expenses or charges were paid by the Authority resulting in private pecuniary benefit;
when he used the authority of his office by receiving wages while absent from the Authority
on certain occasions relating to HARIE resulting in a private pecuniary benefit; and when
he used an Authority E -ZPass and credit card for personal use resulting in a private
ppecuniary benefit. Cf., KKarpaa, Order 1552; Maritz, Order 1525; Regola, Order 1517;
Melenia, Order 151 , Hopkin, Order 15'15; Matta, _rder 1439; Tancredi, Order 1434.
We agree with the parties, and we hold, that a violation of Section 1105(b)(5) of the
Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when O'Malley, while serving as the
Executive Director for the Butler County Housing Authority (Pennsylvania) and the
Executive Director of the Redevelopment Authority of Butler County (Pennsylvania), failed
to disclose on his SFIs for calendar years 2011 through and including 2014 the name(s)
and address(es) of direct or indirect source(s) of income totaling in the aggregate $1,300 or
more, including but not limited to income received from the Butler County Housing
Authority.
We hold that a violation of Section 1105(b)(7) of the Ethics Act, 65 Pa-C.S. §
1105 b)(7), occurred when O'Malley, while serving as the Executive Director for the Butler
Coun�y Housing Authority (Pennsylvania) and the Executive Director of the Redevelopment
Authority of Butler County (Pennsylvania), failed to disclose on his SFIs for calendar years
2010 through and including 2014 the name(s) and address(es) of the source(s) and the
amount(s) of any payment for or reimbursement of actual expenses for transportation and
lodging or hospitality received in connection with public office or employment where such
O'Malle , 15 -015
aP ge 56
actual expenses for transportation and lodging or hospitality exceeded $650 in an
aggregate amount per year, including but not limited to expenses paid by HARIE.
We hold that a violation of Section 1'105(b)(8) of the Ethics Act, 65 Pa.C.S. §
1105 b) {8), occurred when O'Malley, while serving as the Executive Director for the Butler
Coun y Housing Authority Pennsylvania) and the Executive Director of the Redevelopment
Authority of Butler County ({Pennsylvania), failed to disclose on his SFIs for calendar years
2010 through and including 2014 his holding of any office, directorship or employment of
any nature whatsoever in any business entity, namely the office(s) he held with HARIE, the
Butler Area Housing & Community Development Corporation, Historic LaFayette, Inc., the
Butler County Homeownership Corporation, and Pennsylvania Affordable Housing
Corporation.
We note that the Investigative Division has elected to not pursue the remaining
allegations.
As part of the Consent Agreement, O'Malley has agreed to make payment in the
total amount of $16,131.04 in settlement of this matter as follows. O'Malley has agreed to
make payment in the amount of $1,250.00 payable to the Commonwealth of Pennsylvania
and forwarded to this Commission within thirty (30) days of issuance of the final
adjudication in this matter, representing payment with respect to the violations contained in
paragraph 3(b) through (d) of the parties' Consent Agreement. O'Malley has agreed to
make payment in the amount of $12,381.04 payable to the Housing Authority of Butler
County and forwarded to this Commission within thirty (30) days of the issuance of the final
adjudicatlon in this matter, representing payment with respect to the violations contained in
paragraph 3 (a) of the parties' Consent Agreement. O'Malley has agreed to make payment
in the amount of $2,500.00 payable to the Pennsylvania State Ethics Commission and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter, representing a portion of the costs incurred by this Commission
in the investigation and enforcement of this matter. O'Malley has further agreed to not
accept any reimbursement, compensation or other payment from the Housing Authority of
the County of Butler representing a full or partial reimbursement of the amount paid in
settlement of this matter.
In addition, O'Malley has agreed to file complete and accurate SFIs for calendar
years 2010 through 2014 with the Housing Authority of Butler County and the
Redevelopment Authority of Butler County, through this Commission, within thirty (30) days
of the issuance of the final adjudication in this matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, O'Malley is directed to make
payment in the amount of $1,250.00 payable to the Commonwealth of Pennsylvania and
forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date
of this adjudication and Order.
Per the Consent Agreement of the parties, O'Malley is directed to make payment in
the amount of $12,381.04 ayyable to the Housin Authority f Butler County and forwarded
to this Commission by no later than the thirtieth (30th) day after the mailing date of this
adjudication and Order.
Per the Consent Agreement of the parties, O'Malley is directed to make payment in
the amount of $2,500.00 payable to the Pennsylvania State Ethics Commission,
representing a portion of the costs incurred by this Commission in the investigation and
enforcement of this matter, with such payment forwarded to this Commission by no later
than the thirtieth (30th) day after the mailing date of this adjudication and Order.
O'Malley, 15 -015
Page 57
Per the Consent Agreement of the parties, O'Malley is further directed to not accept
any reimbursement, compensation or other payment from the Housing Authority of the
County of Butler representing a full or partial reimbursement of the amount paid in
settlement of this matter.
To the extent he has not already done so, O'Malley is directed to file complete and
accurate SFIs for calendar years 2010 through 2014 with the Housing Authority of Butler
County and the Redevelopment Authority of Butler County, through this Commission, by no
later than the thirtieth (301h) day after the mailing date of this adjudication and Order.
Compliance with the foreggoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV, CONCLUSIONS OF LAW:
In each of his capacities as the Executive Director for the Housing Authority of the
County of Butler from July 13, 1992, until March 13, 2015, and as the Executive
Director for the Redevelopment Authority of the County of Butler from November 1,
1995, until March 13, 2015, Respondent Pearse O'Malley ( "O'Malley ") 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. O'Malley violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when
O'Malley, while serving as the Executive Director for the Butler County Housing
Authority (Pennsylvania) and the Executive Director of the Redevelopment Authority
of Butler County (Pennsylvania), used the authority of his office by extending
Authority travel for reasons not associated with Authority business, and received
wages, and expenses or charges were paid by the Authority resulting in private
pecuniary benefit; when he used the authority of his office by receiving w ages while
absent from the Authority on certain occasions relating to the Housing and
Redevelopment Insurance Exchange ( "HARIE ") resulting in a private pecuniary
benefit, and when he used an Authority E -ZPass and credit card for personal use
resulting in a private pecuniary benefit.
3. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5),
occurred when O'Malley, while serving as the Executive Director for the BButtler
County Housing Authority (Pennsylvania) and the Executive Director of the
Redevelopment Authority of Butler County (Pennsylvania), failed to disclose on his
Statements of Financial Interests for calendar years 2011 through and including
2014 the name(s) and address(es) of direct or indirect source(s) of income totaling
in the aggregate $1,300 or more, including but not limited to income received from
the Butler County Housing Authority.
4. A violation of Section 1105(b)(7) of the Ethics Act, 65 Pa.C.S. § 1105(b)(7),
occurred when O'Malley, while serving as the Executive Director for the Bbuttler
County Housing Authority (Pennsylvania) and the Executive Director of the
Redevelopment Authority of Butler County (Pennsylvania), failed to disclose on his
Statements of Financial Interests for calendar years 2010 through and including
2014 the name(s) and address(es) of the source(s) and the amount(s) of any
ppayment for or reimbursement of actual expenses for transportation and lodging or
hospitality received in connection with public office or employment where such
actual expenses for transportation and lodging or hospitality exceeded $650 in an
aggregate amount per year, including but not limited to expenses paid by HARIE.
5. A violation of Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b %),
occurred when O'Malley, while serving as the Executive Director for the Bu ler
O'Malle , 15 -015
aP ge 58
County Housing Authority Pennsylvania and the Executive Director of the
Redevelopment Authority of Butler County Pennsylvania), failed to disclose on his
Statements of Financial Interests for calendar years 2010 through and including
2014 his holding of any office, directorship or employment of any nature whatsoever
in any business entity, namely the office(s) he held with HARIE, the Butler Area
Housing & Community Development Corporation, Historic LaFayette, Inc., the Butler
County Homeownership Corporation, and Pennsylvania Affordable Housing
Corporation.
In Re: Pearce [Pearse] (Perry) O'Malley, File Docket: 15 -015
Respondent : Date Decided: 6127118
Date Mailed: 716118
ORDER NO. 1737
1. Pearse O'Malley ( "O'Malley ") violated Section 1103(a) of the Public Official and
Employee Ethics Act, 65 Pa.C.S. § 1103(a), when O'Malley, while serving as the
Executive Director for the Butler County Housing Authority (Pennsylvania) and the
Executive Director of the Redevelopment Authority of Butler County (Pennsylvania),
used the authority of his office by extending Authority travel for reasons not
associated with Authority business, and received wages, and expenses or charges
were paid by the Authority resulting in private pecuniary benefit; when he used the
authority of his office by receiving wages while absent from the Authority on certain
occasions relating to the Housing and Redevelopment Insurance Exchange
("HARIE ") resulting in a private pecuniary benefit; and when he used an Authority E-
ZPass and credit card for personal use resulting in a private pecuniary benefit.
A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5),
occurred when O'Malley, while serving as the Executive Director for the BButtler
County Housing Authority Cler nnsylvania and the Executive Director of the
Redevelopment Authority of County Pennsylvania), failed to disclose on his
Statements of Financial Interests for calendar years 2011 through and including
2014 the name(s) and address(es) of direct or indirect source(s) of income totaling
in the aggregate $1,300 or more, including but not limited to income received from
the Butler County Housing Authority.
3. A violation of Section 1105(b)(7) of the Ethics Act, 65 Pa.C.S. § 1105(BBb %),
occurred when O'Malley, while serving as the Executive Director or the uttler
County Housing Authority (Pennsylvania and the Executive Director of the
Redevelopment Authority of Butler County Pennsylvania), failed to disclose on his
Statements of Financial Interests for calendar years 2010 through and including
2014 the name(s) and address(es) of the source(s) and the amount(s) of any
payment for or reimbursement of actual expenses for transportation and (lodging or
hospitality received in connection with public office or employment where such
actual expenses for transportation and lodging or hospitality exceeded $650 in an
aggregate amount per year, including but not limited to expenses paid by HARIE.
4. A violation of Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8),
occurred when O'Malley, while serving as the Executive Director for the BBu {tler
County Housing Authority (Pennsylvania and the Executive Director of the
Redevelopment Authority of Butler County Pennsylvania), failed to disclose on his
Statements of Financial Interests for calendar years 2010 through and including
2014 his holding of any office, directorship or employment of any nature whatsoever
in any business entity, namely the office(s) he head with HARIE, the Butler Area
Housing & Community Development Corporation, Historic LaFayette, Inc., the Butler
County Homeownership Corporation, and Pennsylvania Affordable Housing
Corporation.
5. Per the Consent Agreement of the parties, O'Malley is directed to make payment in
the amount of $1,250.00 payable to the Commonwealth of Pennsylvania and
O.,_._Malley, 15 -015
Page 6�
forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth
(30th) day after the mailing date of this Order.
6. Per the Consent Agreement of the parties, O'Malley is directed to make payment in
the amount of $12,38'1.04 payable to the Housing Authority of Butler County and
forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth
(30th) day after the mailing date of this Order.
7. Per the Consent Agreement oft e parties, O'Malley is directed to make payment in
the amount of $2,500.00 payable to the Pennsylvania State Ethics Commission,
representing a portion of the costs incurred by this Commission in the investigation
and enforcement of this matter, with such payment forwarded to this Commission by
no later than the thirtieth (30th) day after the mailing date of this Order.
8. Per the Consent Agreement of the parties, O'Malley is further directed to not accept
any reimbursement, compensation or other payment from the Housing Authority of
the County of Butler representing a full or partial reimbursement of the amount paid
in settlement of this matter.
9. To the extent he has not already done so, O'Malley is directed to file complete and
accurate Statements of Financial Interests for calendar years 2010 through 2014
with the Housing Authority of Butler County and the Redevelopment Authority of
Butler County, through this Commission, by no later than the thirtieth (30th) day after
the mailing date of this Order.
10. Compliance with paragraphs 5, 6, 7, 8 and 9 of this Order will result in the closing of
this case with no further action by this Commission.
Non - compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
PIA
I % 11�
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