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HomeMy WebLinkAbout1741 HardingPHONE: 717-783-1610 TOLL FREE: 1- 800 - 932 -0936 In Re: Matthew Harding, Respondent STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120 -0400 File Docket: X -ref: Date Decided Date Mailed: FACSIMILE: 717- 787 -0806 WEBSITE: W)A .ethies.pa.aov 17 -010 Order No. 1741 10/23/18 10/31/18 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. 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 g., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." 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 Matthew Harding, a public official /public employee in his capacity as the Director of Sugao) rt Services for the Canon - McMillan School District ( "CMSD" , violated (Sections 110 and 1105(b)(5), (8), and (9)] of the State Ethics Act (Act 93 of 1998) when he utilizhis public position for the private pecunia ry enefit of himself, a member of his immediate family, and/or a business with which he is associated, namely Computec Technical Solutions, Inc., when he used the offices and facilities of the CMSD to conduct private business meetings and other business related activities associated with Computec Technical Solutions, Inc., not related to any official CMSD purpose; when he utilized CMSD personnel and facilities to arrange for private repairs of vehicles owned by him and/or his spouse, and/or a business with which he is associated; when he utilized the access, influence, and entree through his public employment with the CMSD to obtain contracts /subcontracts for Computec Technical Solutions, Inc. with CMSD vendors; when he approved invoices /payments to CMSD vendors while his private company, Computec Technical Solutions, Inc., was contracting with these same vendors; when he failed to disclose Computec Technical Solutions, Inc. on Statements of Financial Interests for the 2012 and 2013 calendar years as a direct/indirect source of income; and when he failed to disclose his office, directorship, or employment and any financial interest in Everyday Hero on Statements of Financial Interests filed for the 2012, 2013, 2014, 2015, and 2016 calendar years. II. FINDINGS: Ha rdi, 17 -010 a age 1. Mathew Harding (also referred to herein as "Respondent," "Respondent Harding," and "Harding ") has been employed at CMSD from March 21, 2005, through the present. a. Harding has held the following positions throughout his tenure at CMSD: • Network Administrator March 2005 to August 2009 • Technology Coordinator August 2009 to September 2011 • Director of Support Services September 2011 to the present b. Harding previously interned with the CMSD Technology Department from January 2001 to March 2003 as part of his studies at Penn Commercial Business/Technical School. C. Harding was subsequently contracted as a technician for CMSD from April 2004 to March 2005. 2. Harding's positions were contained in the Technology Department until his promotion to the Director of Support Services in September 2011. a. The Director of Support Services oversees the Technology, Facilities, and Transportation Departments. 3. The Support Services Office is located in the Support Building, 186 Boone Ave., Strabane, Pennsylvania 15363. a. The Support Services staff, buses /vans, and the CMSD mechanics bay are all housed within the Support Building complex. b. The Support Building complex is not located within a CMSD campus /school site. 4. The Technology Department services and supports the planning, development, and M application of computer technology in all CSD departments. a. The Technology Coordinator oversees the Technology Department. 1. Prior to September 2011 the Technology Coordinator reported directly to the Superintendent. 2. Since Harding's appointment as Director of Support Services, the Technology Coordinator reports directly to Harding. 5. Effective September 19, 2011, Harding was appointed Director of Support Services for CMSD. a. Justin Heckman ( "Heckman "), CMSD Technology Department employee, was promoted as the Technology Coordinator following Harding's appointment to Director of Support Services. 6. As the Director of Support Services, Harding is a salaried employee and maintains an office located at the CMSD Support Building. a. Harding works at least eight hours per day, Monday - Friday, between the hours of 6:00 a.m. to 5:00 p.m. 1. Harding's work hours vary due to the nature of his work (overseeing transportation, technology, and facilities). Harding, 17 -010 Page 9 7. Harding, as the Director of Support Services, possesses multiple duties and responsibilities, which include, amongst others, the following: a. Supervising the activities of the CMSD -owned support facility to ensure safe and clean buses for use in transporting students; b. Preparing, reviewing, maintaining and /or submitting all necessary transportation reports, along with all other support and pertinent data on a timely basis as required by the Board, Pennsylvania Department of Education, and other agencies; C. Collaboratively communicating vendor selection, coordination, and implementation; d. Ensuring that all security systems, fire alarms, clock systems, security camera systems, telephone systems, and computer systems are fully operational, and that any changes are properly approved and executed; e. Supervising and inspecting all work performed by outside contractors and verifying that the terms of such contracts have been fulfilled prior to authorizing payment; f. Determining specifications and recommending necessary purchases of all supplies, materials, and equipment pertaining to Building and Grounds, Technology, and Transportation; and g. Overseeing the development and administration of the budget for the Facilities, Technology, and Transportation Departments. THE CMSD PURCHASE ORDERING SYSTEM. 8. CMSD services over 5,000 students from the following municipalities: Canonsburg Borough, Cecil Township, and North Strabane Township. a. All of the municipalities are located within Washington County. 9. The CMSD Board of Directors ( "Board ") holds an agenda meeting on the second Thursday of each month and a regular meeting on the third Thursday of each month. 10. CMSD designates specific employees in each department with the authority to submit electronic purchase requests to the Business Office for final review /approval. a. Designated employees enter requisitions into the CMSD computer -based network. b. The requisitions are forwarded to Michael Daniels, Superintendent, and subsequently to Joni Mansmann, Business Manager, for final reviewlapproval. 1. The requisitions may require the appproval of the employee's department head before being sent to Daniels and Mansmann, depending on the employee's position in the purchase order system hierarchy. C. The Business Office generates a check for payment after final authorization is made by Daniels and Mansmann. Harge din , 17 -010 aP 4 d. The Business Office mails CMSD payment checks to vendors after the Board approves the payment of the monthly expenditures at its regular voting meeting. e. The Board votes to approve payment of the monthly expenditures at the regular monthly meeting. 11. Harding, as the Director of Support Services, initiates and/or approves all purchase order requisitions from the Technology, Facilities, and Transportation Departments. a. Harding receives email notification of requisitions from the Technology, Facilities, and Transportation Departments. b. The Technology Coordinator, Facilities Director, and their designated staffers have the authority to initiate a requisition in the CMSD purchase order system. G. Harding reviews /approves requisitions received and forwards the requisitions to Superintendent Daniels and Business Manager Mansmann for payment. THE FOLLOWING FINDINGS RELATE TO HARDING'S PRIVATE BUSINESS HOLDINGS. 12. In September 2000 Harding created Computec, a technology support/service company. a. The filing date of Computec's incorporation was September 21, 2000. 1. The Department of State Corporation Bureau assigned Computec entity no. 2963783. b. Corporate filings document Harding as the owner of Computec. C. Computec operates from Harding's residence. 13. Harding initially offered various computer /technology services (i.e. computer repair, program installation) through Computec. a. Over the years, Computec expanded its services to include structured cabling, which ultimately became its primary business service. 1. Structured cabling is the design and installation of cabling systems (computer, phone, fiber optics). 14. Harding and his spouse, Melissa "Missy" Harding, were Computec's main operators, with part -time employees being hired as needed. a. Melissa Harding was primarily responsible for Computec's accounts payable /receivable. 15. Harding continued to operate Computec, even after initiating employment with CMSD in March 2005. a. CMSD does not have a formal supplemental employment policy. b. CMSD employees are permitted to have supplemental employment, provided it does not interfere with their duties /responsibilities at CMSD. Harding, 17 -010 aP ge 5 16. On or about February 18, 2010, Harding renamed /restructured Computec as Computec Technical Solutions, Inc. (also referred to herein as "CTS "). a. The Department of State Corporation Bureau assigned CTS entity no. 3935550.1 b. Corporate filings document Melissa Harding, President, and Matthew Harding, Vice President. 17. Harding, as the Vice President of CTS, is responsible for hiring /firing CTS employees. a. Harding has hired family members, friends, CMSD employees, and acquaintances as full /part -time CTS employees. 1. Harding solicited CMSD employees subordinate to him for employment with CTS. b. CTS employed 1 -2 full -time sales representatives /technicians at any given time since at least 2012. 1. Harding has also employed part -- time /as-needed employees at various times since 2012. 18. CTS offers technology support/service including, but not limited to, the following: • Cabling Infrastructure • Security Camera Systems • Access Control Systems • IT Management Services • AudioNideo Installation • Technical Consulting & Design • PC /Server Builds & Repair 19. Full --time CTS employees regularly work eight hours a day, Monday - Friday, from Harding`s home or in the field. a. Routine work responsibilities for CTS employees included attending contractor /client meetings, picking up supplies /equipment/material, and performing CTS projects on -site. b. CTS project locations vary; however, a majority of projects are located in Western Pennsylvania. 20. Full -time CTS sales /technicians are responsible for generating business leads through internet searches, cold calls, existing CTS customers, etc. a. Harding provides CTS sales /technicians with a listing of former CTS clients from which to pursue additional business. 21. Full -time CTS sales /technicians are responsible for preparing /submitting CTS bid proposals to prospective clients. 1 The various names used to refer to Respondent's business — whether under Department of State entity no. 2963783 or entity no. 3935550 —are to be considered interchangeable for purposes of this adjudication and Order, regardless of the timeframe involved. Harding, 17-010 age 66 a. Sales /technicians work collaboratively with Harding and/or Melissa Harding to complete bid proposals. 1. Harding normally receives bid proposals for review through his CTS email account (matt @cts- pgh.com). 2. Harding makes necessary changes (wording, estimates) to the bid proposals prior to final approval. b. Harding prohibited CTS sales /technicians from pursuing CMSD bids due to his employment conflict with CMSD. 22. Prior to 2006, Harding and his friend, Chris Clark, started the music group Everyday Hero as a business partnership. a. Everyday Hero is not incorporated with the Pennsylvania Department of State Corporations Bureau. b. Everyday Hero has had no business activity since at least 2006. THE FOLLOWING FINDINGS ARE RELATED TO HARDING COMINGLING HIS PRIVATE BUSINESS INTERESTS WITH HIS DUTIESIRESPONSIBILITIES AT THE CMSD. 23, Effective February 20, 2007, the Board adopted a Policy Manual setting forth rules and guidelines pertaining to the safe and orderly operation of the CMSD. a. Section 319 of the manual addresses Outside Activities, providing the following mandates to all employees: 1. Do not use school property or school time to solicit or accept customers for private enterprises. 2. Do not use school time for outside activities when there is no valid reason to be excused from assigned duties. b. Section 710 of the manual addresses the use of facilities by CMSD staff, setting forth that school equipment and facilities may not be used by CMSD staff for personal reasons, either on or off school property, without explicit authorization or administrative permission. C. Section 815 of the manual addresses acceptable usage of the internet by CMSD students and staff and strictly prohibits, in part, the following usage of the internet. I . Commercial or for - profit purposes; 2. Non -work or non - school related work; and 3. Product advertisement or political lobbying. 24. CMSD provides Harding, in his position of Director of Support Services, with a desktop and laptop computer to perform the duties /responsibilities related to his position at CMSD, as follows: a. Accessing his CMSD email account; Harding, 17 -010 Page 7 CMSD employees are assigned a CMSD email account. 2. Harding's CMSD email account is hardingm @crosd.kl2.pa.us. b. Accessing the CMSD network, including the purchase order system; and C. Creating /maintaining electronic documents. 25. CMSD provided cellular phones to designated CMSD employees including Harding since at least 2007. a. Designated employees assigned CMSD cell phones are Administrators/ Department heads. b. Section 717, Cellular Telephone, of the CMSD Policy Manual permits employees to utilize the cellular phones for official business use as well as personal use provided the employee pays the agreed -upon fee. 1. CMSD employees were required to pay a $10 monthly fee to cover the personal usage charges of their CMSD- provided cell phone. aa. The employee monthly fee was discontinued in June 2010 upon the verbal direction of (former) Superintendent Helen McCracken due to the change in usage plans to unlimited data, calling, and text. 26. In contravention of CMSD policy, Harding utilized his CMSD computer (desktop /laptop) andlor CMSD smartphone to communicate with CTS employees through Google Hangouts. a. Harding communicated with CTS employees during regular CMSD hours via Google Hangouts, email, text message, phone, and in- person. b. The specific amount of time Harding communicated with CTS employees during CMSD time could not be determined. 27. Harding, on at least one occasion, communicated with a CTS employee while attending a CMSD meeting. a. On January 27, 2016, at 8:56 a.m., Harding utilized Google Hangouts to communicate with Anthony Calderone, CTS sales /technician, regarding a CTS bid proposal while in a CMSD meeting. b. Harding and Calderone exchanged eighty -four messages between 8:56 a.m. and 10:11 a.m. No more than '10 minutes elapsed between messages during this time. 28. Harding utilized his CMSD computer to exchange emails from his CTS email account with CTS employees/clients. a. Harding accessed his CTS email account from his CMSD computer during school hours to review and send CTS - related emails to CTS employees/clients. b. The specific amount of time Harding accessed his CTS email account from his CMSD computer during regular school hours could not be determined. Hardin , 17 -010 age ge 8 29. Harding utilized his CMSD smartphone for non -CMSD business purposes including sending /receiving telephone calls /text messages with CTS employees /clients during and after regular school hours. 30. The main entrance point of the CMSD Support Building is monitored by the Support Services clerical staff. a. Visitors are to sign in /out in the log book upon entry to the building. 1. The clerical staff does not consistently enforce the sign-in/out requirement. 31. Harding arranged to meet with CTS employees at the Support Building during regular school hours (7:00 a.m. to 5:00 p.m.) as needed andlorwhen CTS business could not be completed through Google Hangouts, email, phone. a. None of the meetings between Harding and CTS employees exceeded one hour. 1. The specific number of meetings that occurred could not be determined. b. The visitor log book does not list any other CTS employee visiting Harding and/or the Support Building. 32. In addition to the foregoing, Harding has solicited CMSD subordinates as part - timelas- needed employees for CTS throughout his tenure at CMSD (and at least one CMSD intern as a full -time CTS emplo ee) including Heckman (2006-2008), Casey Thompson (200812009), Carl Nichols 2014), and Anthony Balacastro (2017). a. Harding approached Heckman, Thompson, and Balacastro during regular school hours seeking workers for evening /weekend CTS projects. b. Harding approached Nichols during regular school hours to gauge interest in Nichols as a full -time CTS employee. C. Harding ppaid CMSD employees in the form of cash or check for their services to CTS. THE FOLLOWING FINDINGS RELATE TO THE ALLEGATION THAT HARDING UTILIZED HIS PUBLIC EMPLOYEE POSITION AND CMSD RESOURCES TO OBTAIN CONTRACTS /SUBCONTRACTS FOR CTS WITH DISTRICT VENDOR COMMUNICATIONS CONSULTING INC. 33. Communications Consulting Inc. (hereafter, "CCI ") is an information technology firm that specializes in design, sale and installation of advanced telecommunication systems, including: voice, data, wireless, voice mail and video systems. a. Brooks Roy ( "Roy ") is the owner of CCI. b. CCI is based in Cranberry, Pennsylvania. 34. CMSD has utilized CCI as a technology consultant for services and devices /products (i.e. phones, wireless access boards, antennas, ethernet chassis, etc.) since at least 2004. 35. In or about 2006, Roy learned that Harding had structured cabling experience, that Harding, 17 -010 Page 9 he performed such work in -house at CMSD, and that he owned a private business, CTS (Computec), that performed structured cabling services. a. Roy informed Harding that CCI did not perform structured cabling and that CCI would be interested in subcontracting structured cabling services to CTS. b. Harding informed Roy that he was interested in working as a subcontractor for CCI, and for Roy to seek quotes from CTS on future projects. 36. Harding's interactions regarding CTS /CCI business decreased with CCI after Harding's promotion to the Director of Support Services in September 2011. a. Heckman, Technology Coordinator, has been Roy's primary CMSD point -of- contact after Harding s promotion to the Director of Support Services. b. Heckman, as the Technology Coordinator, reports directly to Harding. C. Heckman consults with and seeks Harding's approval regarding potential technology orders, which include orders from CCI. 37. Heckman, or a designated Support Services staff member, is authorized to input purchase order requests into the CMSD purchase order system for CCI products /services determined to be needed at CMSD. a. Harding reviews /approves the requisitions prior to him forwarding it to the Business Manager for payment consideration. 1. The requisition will not advance from the Support Service Department until Harding approves it. 38. During the same time period that Harding is /was approving CMSD purchase orders with CCI (July 2006 -July 2014), Harding negotiated contracts and directed, supervised, and /or performed structured cabling services between CCI and CTS. a. Harding, as the Vice President of CTS, received emails from Roy/CCI requesting CTS quotes on potential CCI projects. b. Harding, as Vice President of CTS, directed CTS sales/technicians to draft quotes responsive to Roy1CCl's request. C. Harding, as the Vice President of CTS, reviewedlapproved CTS quotes drafted by CTS sales/technicians prior to submission of such to CCI. d. Harding, as Vice President of CTS, oversaw and/or directed CTS employees on projects subcontracted by CCI to CTS. e. Harding, as the Vice President of CTS, was aware of and/or authorized Melissa Harding to generate and subsequently email CTS invoices to Roy/CCI for the services performed by CTS. 39. At the same time Harding's private business interest (CTS) was serving as a subcontractor for CCI (from June 2012 to July 2014), Harding, as the Director of Support Services, reviewed /approved payment of fourteen (14) CCI invoices submitted to CMSD. 40. Harding, as Director of Support Services, approved Technology Department purchase orders with CCI through the CMSD purchase order system that resulted in Hardin , 17 -010 Page 10 the issuance of CMSD checks as payment to CCI. a. Harding reviewed /approved CMSD purchase orders at a time CTS was being considered and/or had existing subcontracting work from CCI. b. Harding reviewed /approved CMSD purchase orders at a time CCI was making payments to CTS for services rendered. THE FOLLOWING FINDINGS DETAIL CTS OBTAINING CONTRACTS/ SUBCONTRACTS WITH TYCO- SIMPLEX GRINNELL. 41. Tyco- SimplexGrinnell (also referred to herein as "Simplex ") is a national provider of active fire protection systems, communication systems, testing, inspection, and maintenance services. a. Simplex maintains a Pittsburgh regional office in Cranberry, Pennsylvania. 42. The CMSD Middle School has utilized Simplex systems since at least 2004. a. A Simplex sales representative works directly with CMSD facilities and technology department representatives to manage the Simplex fire alarm system at the CMSD Middle School. 43. Ben Wise ( "Wise ") was employed as a sales representative for Simplex from approximately 2009 to 2014. a. Wise was responsible for Simplex fire alarm, access control, and security camera sales in eastern Ohio, northern West Virginia, and in Washington and Greene Counties of Pennsylvania. 1. CMSD is located in Washington County, Pennsylvania. b. Wise reported to Emilio Posa, Sales Manager, and Jeff Zichowski, Sales Supervisor. 44. Wise's colleague, John Boyle ( "Boyle "), Simplex Security Sales representative, focused on the sales of access control /door monitoring systems. a. Sales /projects secured by Simplex sales representatives were overseen by David Zimmerman ( "Zimmerman "), Electronics Operations Manager. 1. Zimmerman supervised operation technicians and installations of Simplex projects. 45. Harding's parents are family friends with Wise's in -laws. a. Harding was neighbors with Wise's in -laws from approximately 2006 until October 2015, 46. Wise learned that Harding owned a technology /networking company (CTS) and that Harding was employed in the CMSD Technology Department through conversations with Wise's in -laws and Harding. a. In 2011 Wise was informed that Harding was the CMSD Director of Support Services. 1. Prior to 2011, Wise knew Harding was a CMSD employee but was uncertain of Harding's authority /position at CMSD. Harding, 17 -010 Page fl b. After 2011 Wise inquired of Harding as to the success of CTS. Wise had a prior understanding that CTS was a new business specializing in network/cable installation. 47. Wise informed Harding that he could recommend CTS to Simplex representatives for consideration in future Simplex projects. a. Harding was receptive to Wise recommending CTS to Simplex. 48. Simplex does not specialize in the installation of its systems; as such, Simplex seeks local contractors for network/cable installations. 49. Simplex requires subcontractors to enter into a Subcontractor's Master Agreement (hereafter, 'Subcontractor's Agreement ") prior to performing work on a Simplex project. a. The Subcontractor's Agreement sets forth general terms and conditions between Simplex and the subcontractor. b. The Subcontractor's Agreement is to be executed prior to work being initiated between Simplex and a subcontractor. C. The Subcontractor's Agreement does not specify the scope or compensation for any specific project. 1. The scope of work and compensation are to be detailed in the Simplex purchase order, issued to the respective subcontractor at a later date. 50. Prior to 2011 CMSD only utilized Simplex to service a Simplex system installed in the Middle School building. a. From 2005 to 2011, CMSD business with Simplex was nominal, with CMSD having issued Simplex fourteen (14) check payments totaling $14,040.68 over the respective time period. 51. In July 2011 a Simplex technician notified Wise that the CMSD Middle School utilized an outdated Simplex system and recommended Simplex seek possible upgrades at the Middle School. a. Wise used the potential need to upgrade the Middle School system, and the developing relationship /contact he had with Harding, as an opportunity for him to pursue Simplex sales at CMSD. b. Prior to 2011 Wise did not have a point -of- contact to solicit business opportunities from CMSD. 52, Following ise's discussion with Simplex technicians regarding the CMSD Middle School Simplex system, in the summer of 2011, Wise met with Harding unannounced at the CMSD Support Building to discuss the possibility of upgrading the Simplex system in the Middle School and to explore other potential Simplex opportunities at CMSD. a. Harding informed Wise that CMSD was not interested in pursuing system upgrades in the Middle School at that time. Hardin q, 17 -010 age b. Harding informed Wise that CMSD does most of its network/cable installations in -house but that he would consider Simplex products (cameras, access control devices) in the future. 53. After Harding declined to upgrade the Simplex system at the CMSD Middle School, Wise recommended CTS to Boyle, Simplex sales representative, as a potential subcontractor for structured cabling /wiring projects. a. Wise informed Boyle that CTS was a reputable and cost - effective cabling company. b. Boyle was receptive to Wise's recommendation to utilize CTS. C. At the time Wise recommended HardinglCTS to Boyle, Wise was conscious of Harding's employment with CMSD. 54. Wise and CTS representatives discussed using CTS as a subcontractor specific to school technology bid packages as early as August 2011. a. On August 18, 2011, Wise emailed Harding's CTS email account to inform Harding that Zimmerman, Simplex Operations Manager, was interested in meeting Harding /CTS to discuss potential future work opportunities, by collaborating with Simplex on school technology bid packages. 1. Wise included in his email that CTS would perform work related to networking and sound on technology bids. b. Later that day Harding emailed Wise replying, "Absolutely!" 55. Wise subsequently forwarded Zimmerman his August 18th email exchanges with Harding, and informed Zimmerman that Harding/CTS had been contacted about Vnering on school technology bid packages and requested Zimmerman identify availability for a meeting with Harding/CTS. a. Wise indicated in the email that Simplex's partnership with Harding/CTS on the technology packages "could open some big opportunities for us," as detailed below: David, I spoke with the potential sub - contractor about partnering to bid technology packages with us. Please let me know when you are available to meet with them. This could open some big opportunities for us. Thanks, Ben b. At the time Wise sent the foregoing email to Zimmerman, Wise was referring to access to sales opportunities with CMSD due to Harding's position as Director of Support Services. 1. Wise's primary purpose of recommending Harding /CTS to subcontract with Simplex was to obtain contracts from CMSD. 56. After emailing Zimmerman in August 2011, Wise obtained quotes from CTS for structured cabling. Harding, 17 -010 Page 13 a. Wise and Grant Moss ("Moss"), a CTS employee, exchanged emails on August 15, 2011, pertaining to Simplex subcontracting a structured cabling project to CTS. b. Moss /CTS supplied Wise with a quote for a potential Simplex project. C. Wise emailed Moss a Subcontractor's Agreement advising that Simplex was expected to be awarded the project. d. The executed Subcontractor's Agreement between CTS and Simplex is signed only by Melissa Harding and is not dated. Neither CTS nor Simplex maintains a Subcontractor's Agreement executed by both parties. 57. Harding and Moss met with Simplex representatives Boyle, Wise, and Zimmerman at Simplex's Cranberry Office on November 9, 2011, at 2:30 p.m., to discuss school bid technology packages. a. The purpose of the meeting between Simplex and CTS representatives was to discuss their developing business relationship, specifically CTS serving as a subcontractor on Simplex projects on K -12 technology bid packages. b. Simplex representatives were aware of Harding's position as an employee of CMSD but did not specifically discuss Simplex seeking business with CMSD at this meeting. 58. Harding's meetings with Wise /Simplex in 2011 resulted in Harding /CTS performing subcontracting work for Simplex between December 2011 and March 2013. a. CTS was paid a total of $16,730.00 as a result of subcontract work performed for Simplex. 59. In order to submit a purchase request, Harding, Heckman, or a designated Support Services clerk enters purchase orders into the CMSD electronic purchase order system. a. Harding, as Director of Support Services, reviews and approves the requisition prior to its advancement to the Business Manager for payment. b. Harding reviewed and approved purchase requests from Simplex after his private company, CTS, began contracting with Simplex. 60. From July 2011 to February 2017, Harding, as the Director of Support Services, reviewed and approved payment of fifteen (15) Simplex invoices totaling $28,945.14, while simultaneously serving as a subcontractor for Simplex as detailed in the chart below: Invoice Date Description Check No. Amount 7 -20- Service Call/Hallway Intercom 8 493.00 -07- m rov. vcs -Re acement- ui . replacement 42_2-f-2-3478 40 .2 arm Dia er Re airs- 347 2 -30- B arm etection onitorin 2 7 420.00 02 -03- e air ire arm stem 24538 529.00 4 - ain usto u - entra aint. Fire arms 5 08-01-12 n 4 240 P 2 -- 26752 6 429.96 - 9- ire arm s. Program to 2- 8- 2 128151 65 .0 -28-13 02 6 n 480 2 2 Hardin q, aP 1�4 Invoice Date Description Check Date Check No. Amount –TG--0T--T3— to er 3 2228 55 . 05-07-14 Program c an es B ire arm - 4 3420 5 .00 Repair Boar Magnet 07- - 4 4 5 $2,208.86 0 -09- rou es oot, rep ace atteries, rep ace au io va ves, replace annunciator 07- - 4 859 4,980. 7 11-21-14 e air S ea er ro ems 12-08-14 Ubblb 2 236.00 02-27-17 Re ace mo a etector Sensors U4-28-1 47203 $1,424.1- Total payments from CMSD to Simplex between July 2011 throuigh February 2017 $28,945.14 a. Invoiced sales between CMSD and Simplex more than doubled once Harding began serving as a subcontractor for Simplex. b. There is no evidence ascertainable to establish that purchases were not utilized by the CMSD. THE FOLLOWING FINDINGS EVIDENCE HARDING UTILIZING HIS POSITION AS DIRECTOR OF SUPPORT SERVICES TO SECURE PAYMENT OF A DISPUTED INVOICE BETWEEN SIMPLEX AND CTS. 61. Shortly after the meeting between Harding and Simplex regarding Harding participating in school technology bids, in or about December 2011, Wise assisted Boyle, Simplex Security Sales representative, on a resident security system bid proposal for the Washington County Health Center (also referred to herein as the `County Project "). a. Wise was familiar with the Washington County Health Center as an existing Simplex client. 62. While reviewing the County Project bid proposal, Wise identified the need for structured cabling work. a. Wise identified the County Project as an opportunity for Simplex to utilize Harding /CTS as a subcontractor and recommended that Simplex engage CTS. b. Boyle subsequently directed Wise to obtain a quote from CTS. 63. Per Boyle's direction, Wise contacted Harding to determine CTS's interest in the County Project. a. Harding expressed interest in the County Project and requested that Wise contact Moss, CTS sales /technician, to obtain CTS's quote. 64. Simplex submitted its bid proposal to the County for the County Project on or about December 27, 2011. a. Boyle utilized CTS's quote for the structured cabling portion of Simplex's bid proposal by incorporating it into Simplex's final bid proposal amount. 65. The sealed bids for the County Project were opened by the Washington County Board of Commissioners on December 28, 2011. a. Bids were received from Simplex and Horizon in the amounts of $76,209.00 and $97,220.34 respectively. Harding, 17 -010 Page 1-5 b. At their January 19, 2012, regular meeting, the Washington County Commissioners voted unanimously, to award the County Project bid to Simplex. C. On February 10, 2012, Zimmerman responded by letter to Snyder that Simplex would immediately proceed with the County Protect. 66. 'Immediately following the awarding of the County Project to Simplex (and subcontract to CTS), Wise began soliciting Harding to obtain Simplex business opportunities with C SD. a. CMSD Support Building visitor log -in documents Wise meeting with CMSD representatives at the following times during 2012 and 2013. Date Time Input Vendor 02-TZ- 2 .m.- 0 0 out en Wise 05 --30- 8:50 a.m.-No log out en -se 02_-0B_-_`[_3 8:40 a.m.- o og out en ise b. Harding was the primary CMSD contact with Wise /Simplex until April 2012. 67. In May /June 2012 Wise solicited Harding to purchase DVR equipment for CMSD during the same time CTS was serving as a Simplex subcontractor on the County Project. a. On May 30, 2012, Wise emailed Harding a quote for a 16- channel DVR. b. On June 5, 2012, Harding responded to Wise via email that he would be placing an order. 68. On June 21, 2012, Wise replied to Harding via email stating that he (Wise) was having a slow month of business with Simplex and requesting that CMSD issue a purchase order by the end of June (2012) for the DVRs. a. Wise's email to Harding included, in part, the following: "This has been a stow month for me and I can use the order if it is possible." b. Harding responded to Wise on June 22, 2012, via email, stating that he was unable to place a purchase order since the CMSD purchase system was closed until July 1, 2012. 69. Via letter dated July 9, 2012, Boyle was notified of the County's dissatisfaction with Simplex regarding the wiring performed forthe Resident Security System portion of the County Protect. 70. The July 9, 2012, letter detailed Simplex personnel's concern as to CTS's poor workmanship on the County Project. a. Simplex personnel noted in July 2012 emails that CTS lacked the experience to perform a project comparable to the County Project and that CTS prioritized time to other CTS projects. b. A July 11, 2012, email between Wise and Simplex representatives notes as follows: Harding, 17-010 Page 16 spoke with Grant and James about this project today. After both conversation, I do agree that Computec was not the right choice for us on this job. While they have experience in networking and cameras. Grant does not have enough electrical experience for a project like this. G. "Grant" refers to Moss .... 71. On or about July 11, 2012, Wise directed Harding /CTS to correct and complete CTS's portion of the County Project, after having presented the County's issues with CTS workmanship to Simplex. a. In addition to any corrective action CTS undertook, Simplex personnel performed an additional 48.5 hours of work on the County Project to correct deficiencies in the work previously performed by CTS. 72. The day after Wise notified CTS of the poor - quality work on the County Project, on July 12, 2012, Harding emailed a directive to CMSD Facilities Department Secretary, Karen Dorgan, to order five DVRs from Simplex through Wise. a. Dorgan generated CMSD purchase order no. 12130605, dated July 23, 2012, in the amount of $6,429.96 for the purchase of the DVRs. b. Simplex billed CMSD via invoice dated August 1, 2012, the amount of $6,429.96 for the DVRs. 73. On or by August 9, 2012, Harding, as the CMSD Director of Support Services, approved the payment of the Simplex invoice in the amount of $6,429.96. a. Harding's approval to pa the Simplex invoice resulted in its advancement to the Business Office for final review /payment. b. CMSD ultimately disbursed check no. 126752, dated September 18, 2012, to Simplex in the amount of $6,429.96. 74. Following the payment by CMSD of $6,429.96 to Simplex, on September 10, 2012, Melissa Harding issued invoice no. 12 -038 in the amount of $1,400.00 and invoice no. 12 -037, dated October 11, 2012, in the amount of $8,250.00 to Simplex seeking payment for CTS work on the County Project. a. Harding had reviewed and was aware that Melissa Harding submitted the invoices to Simplex for payment at the same time Harding, as the Director of Support Services, discussed and authorized purchases by CMSD from Simplex. 75. On November 29, 2012, Zimmerman directed Terri Coe, Simplex Administrative Assistant/Customer Care Center, to hold payment of CTS invoices no. 12 -037 and 12 --038. a. Zimmerman considered charging CTS for additional costs incurred by Simplex as a result of Simplex correcting CTS's work on the County Projecf. b. No Simplex representatives contacted Harding or any other CTS representatives to inform CTS of the hold on payment. 76. On December 14, 2012, Missy Harding emailed Simplex inquiring of the status of payment of CTS invoices no. 12 -037 and 12 -038. Harding, 17 -010 aP ge 17 a. Missy Harding's email was forwarded to Zimmerman. 77. After receiving Missy Harding's email, Zimmerman, James Meyers, Boyle, Eric Whiting, and Wise discussed charging CTS for its delays and poor workmanship regarding the County Project. a. In a December 17, 2012, email to Zimmerman, Boyle criticized multiple aspects of CTS's performance, including, in part, the following: 1. Tardiness in beginning of the project; 2. Moss's lack of communication, poor performance, and damage caused at the site; 3. Damage to Simplex's credibility and reputation with the customer. b. In a December 17, 2012, email to Zimmerman, Wise agreed that the scope of the project was beyond CTS's capabilities. 78. On January 29, 2013, Harding emailed Wise questioning if Wise would honor a previous quote provided to Harding in March 2012 for the purchase of technology equipment (DVRs). a. At the time Harding contacted Wise, Harding knew Simplex had not yet paid CTS invoices submitted over four months prior and that Simplex had issues with Harding's /CTS' performance as a Simplex subcontractor. b. Wise replied to Harding that same day via email that he would honor the price quoted in March 2012. 1. Wise's email included an arrangement to meet Harding at the CMSD Support Building on February 6, 2013, to discuss a CMSD order for cameras. 79. On February 13, 2013, after Harding met Wise, Missy Harding emailed Simplex a second time regarding payment of CTS invoices no. 12 -037 and 12 --038. a. Zimmerman responded to Missy Harding's email on February 15, 2013. 1. Zimmerman responded that he intended to issue full payment to CTS for invoice no. 12 -038. ($1,400.00) 2. Zimmerman stated his intent to reduce payment to CTS for invoice no. 12 -037. ($8,250.00) b. Zimmerman justified his decision not to pay CTS invoice no. 12037 in full as due to poor quality of work, numerous issues that were required to be reworked by Simplex, and the County's repair of damage to the building resulting from CTS's work. 1. Zimmerman's email identified Simplex incurring additional labor costs of $4,850.00 (48.5 hours @$100 /hour) which was to be deducted from CTS invoice no. 12. 37, resulting in a payment to CTS of $3,400.00. 80. On February 13, 2013, the exact same date Missy Harding emailed Zimmerman at Simplex regarding the outstanding CTS invoice, Harding authorized Heckman to Harding, 17 -010 Page 18 submit CMSD purchase order no. 12131737, dated February 13, 2013, in the amount of $4,851.08, for the purchase of four DVRs from Simplex. a. Harding's purchase authorization from Simplex followed his meeting with Wise on February 6, 2013. b. The CMSD purchase of four DVRs from Simplex (authorized by Harding) was $1.08 more than the amount Simplex was withholding from CTS. Zimmerman informed Harding that Simplex was withholding payment of $4,850.00 from CTS. 81. Harding responded to Zimmerman's email that same day (February 13, 2013) requesting a list detailing the additional hours Simplex incurred correcting CTS's poor workmanship and the damage CTS caused to the County building. a. Zimmerman did not reply to Harding's email. 82. In /about February 2013, while Simplex was debating a response to the complaints of poor workmanship of CTS's work, Wise made efforts to convince Zimmerman to pay CTS for invoice no. 12 -037 in full. a. Wise believed that if payment in full was made to HardinglCTS, future business opportunities existed for Simplex at CMSD. b. Wise believed that Harding would consider Simplex for future purchases at CMSD provided Simplex and CTS maintained a favorable relationship. G. Wise sought to persuade Zimmerman to pay both CTS invoices in full to ensure Harding did not exclude Simplex from CMSD. 83. As of February 19, 2013, Wise was of the impression that Zimmerman had decided to pay both CTS invoices in full. a. Wise was aware Simplex had secured a $5,000.00 purchase order from CMSD, with the expectations of a $50,000.00 purchase order for cameras, following the approval for payment of the CTS invoices. b. Wise emailed Zimmerman on February 19, 2013, thanking Zimmerman on his decision. Wise's email confirmed Harding having "already" given Wise a purchase order for $5,000.00. aa. The $5,000.00 purchase references the four DVRs purchased on /about February 13, 2013, for $4,851.08. 2. Wise opined that Simplex would be getting "a lot more." 3. Wise informed Zimmerman of CMSD initiating an order from Simplex of approximately $50,000.00 for camera upgrades. 84. Two days after Wise's February 19, 2013, email to Zimmerman, Simplex issued check no. 4046226, dated February 21, 2013, in the amount of $1,400.00, as payment to CTS for invoice no. 12 -038. a. Simplex check no. 4046226 was deposited into CTS's Citizens Bank account on March 7, 2013. Hardin , 17 -010 Page 19 85. On or about February 22, 2013, Harding called Wise directly seeking the payment status of CTS invoice no. 12 -037. a. The same day as his conversation with Harding, Wise emailed Zimmerman regarding payment of CTS invoice no. 12 -037. b. Excerpts of Wise's email to Zimmerman are detailed below: Zimmerman: I didn't make that decision yet. Emilio was going to get back to me after evaluating the reality of the 50k po. I'd like to use this as leverage for the big camera po. When is that coming? Wise_: It will not be if they don't get paid. They have given me 10K in parts in the last couple weeks. But, I can't guarantee anything. All know is that if they don't get paid we have no chance of any work in the future ... Like I have told you in the past, this is the largest school district in my area. They have 11 buildings with security and fire in all of them, 4K seems like a very small sacrifice for the potential work we would be giving up. G. Zimmerman intended to withhold payment from Simplex to CTS until and unless Harding agreed to a $50,000.00 purchase by CMSD. d. Wise stated that Harding, as Director of Support Services for CMSD, would not utilize Simplex for future CMSD purchases unless Simplex paid CTS the disputed amount in full. 86. Zimmerman ultimately emailed Harding on March 11, 2013, that he (Zimmerman) had decided to authorize and issue full payment of invoice no. 12 -037 to CTS. a. The email documented Zimmerman having changed his mind after discussion between Zimmerman and Wise, which included more potential business for Simplex from CMSD, if the Harding /CTS invoice was paid in full. 87. On March 14, 2013, after receiving an email from Zimmerman concerning the outstanding CTS invoice, Harding, as the Director of Support Services, approved the payment of Simplex invoice no. 40537925 (CMSD Purchase Order 12131737) through the CMSD purchase order system. a. Harding approved payment of the Simplex invoice approximately three days after notification from Zimmerman that Simplex woul pay CTS invoice no. 12 -037 in full. b. Harding's approval to pay the Simplex invoice resulted in its advancement to the Business Office for payment. C. CMSD disbursed check no. 129132, dated March 19, 2013, in the amount of $4,851.08 to Simplex in payment of invoice no. 40537925. 88. Simplex issued check no. 4047281, dated March 28, 2013, in the amount of $8,250.00, as payment to CTS for invoice no. 12 -037. a. Simplex check no. 4047281 was deposited into CTS's Citizens Bank account on April 1, 2013. Harding, 17 -010 Page 20 b. There has been no business activity between CTS and Simplex since April 1, 2013. 89. From June 2012 to April 2013, Harding /CTS deposited two check payments from Simplex, totaling $9,650.00, into CTS's Citizens Bank business checking account [account number redacted] as shown in the chart below: CTS Invoice Date of Deposit in CTS Bank Amount Deposited into CTS Account Account _TZ-_038 02-23-13 00.00 12-037 04- 0 Total 9,650.00 90. Between July 2012 and April 2013, Harding authorized CMSD purchases from, and payments to, Simplex totaling $11,937.04, during the same time HardinglCTS was seeking payment from Simplex. a. Harding reviewed /approved CMSD purchase orders at a time CTS was being considered for and/or accepted subcontracting work from CCI. b. Harding reviewed/approved CMSD purchase orders at a time CTS negotiated Simplex check payments. 91. Simplex did not pursue Harding /CTS as a subcontractor after issuing payment of Simplex check no. 4047281 to CTS (12 -037 ). 92. Matthew Harding utilized the authority f his public employment as CMSD Director of Support Services to initiate and authorize CMSD purchases from Simplex, while he /CTS was seeking to secure contracts with Simplex and /or was a subcontractor to Simplex. a. During the same time that a dispute over services and payment between Simplex and CTS existed, Harding used his public position to authorize CMSD purchases from Simplex totaling the amount of the CTS disputed invoice, in an effort to secure payment from Simplex to CTS. b. Harding utilized the authority of his office to secure payment in full from Simplex by authorizing public fund purchases by CMSD from Simplex. C. There is no evidence ascertainable to establish that purchases were not utilized by the CMSD. THE FOLLOWING FINDINGS RELATE TO HARDING UTILIZING CMSD PERSONNEL AND FACILITIES TO REPAIR VEHICLES OWNED BY HARDING, HARDING'S WIFE, AND /OR CTS. 93. Harding and Missy Harding own and utilize various vehicles for personal and/or CTS business purposes. 94. CMSD employs four full -time CMSD mechanics to service /maintain CMSD vehicles /buses /equipment. a. The mechanics work staggered hours, Monday - Friday, between 7:00 a.m. and 5:00 p.m. b. All four - mechanics report directly to Harding. Harding, 17 -010 Page 21 95. The CMSD Support Building houses five mechanics bays and a wash bay for the purpose of servicing /repairing CMSD vehicles/buses/equipment. a. CMSD maintains an inventory of parts (i.e. brake shoes, drums, tires, belt hoses, etc.) and material (oil, grease, etc.) to expediently service its vehicles/buses/equipment. 96. The mechanics bay includes a lift, welding equipment, drill press, grinders, lubeloil, etc. 97. Prior to 2017, CMSD personnel utilized the mechanics bay to service their personal vehicles after their regularly - scheduled shifts. a. No specific policy existed which addressed personal use of the mechanics bay by CMSD personnel. b. The personal use of the mechanics bay by CMSD staff was an informal past practice. C. CMSD personnel were not required to seek authorization for the personal use of the mechanics bay. 98. Since at least 2012 Harding utilized the mechanics bay and floor jack on three occasions to service his van. a. Harding utilized the mechanics bay approximately one hour to replace the brakes on his van. b. Harding utilized his own personal tools and the tools of CMSD mechanic, Malcom Cavalier ( "Cavalier "), to replace the ABS sensor assembly. 99. On or about June 20, 2014, Harding utilized the mechanics bay to replace the alternator in his SUV. a. Harding had no experience in replacing the alternator on his SUV. b. Harding sought assistance from Cavalier to assess the SUV and to ultimately assist Harding in replacing the alternator. C. Cavalier assisted Harding with the SUV from 2:00 -4:00 p.m.; Cavalier regularly works from 7:00 a.m. to 3:00 p.m. 100. On November 21, 2016, Harding utilized the CMSD Support Building to service (oil /grease and maintenance checks) and replace the transmission filter of his RV. a. Harding utilized the mechanics bay for approximately one hour to service his RV. 101. Harding realized a de minimis pecuniary benefit by utilizing the Support Building facility and employees to service /repair his personally owned vehicles, as detailed below: Repair Estimated Rental Fees Duration ($14/hour open bay; $201hour bay wllift; Oil Change Fee in Hours $35; tool kit $10 --Replace brakes on 2.0 20 .0-hour bay w i t Van .Repair on utilffi van 1.0-1.7 .0 to 1.7-hours bay w/lift and too it Harding, 17 -010 2 Page 2 Repair on wi es vehicle 1.5 5 (1.5-hours bay w/lift and too it ervice a air o .0 (1.0-hour bay w t Total Estimated Rental Fees $130.00 102. During an interview with Commission Investigators on December 20, 2017, Harding offered the following: a. Harding admitted to a "handful" of pre- arranged meetings at the Support Building with CTS employees over the years. b. Harding admitted providing his CMSD issued cell -phone number to CTS employees /clients. C. Harding claimed it was convenient to utilize CMSD facilities to service /repair his personal vehicles. THE FOLLOWING FINDINGS RELATE TO HARDING FAILING TO FILE COMPLETE AND ACCURATE STATEMENT OF FINANCIAL INTERESTS FORMS. 103. Statement of Financial Interests ( "SFI ") filing requirements for public officials and public employees are mandated by Section 1104 of the State Ethics Act. a. Harding was required to file an SFI by May 1St annually in his position as the Director of Support Services. 104. Harding's SFIs for calendar years 2012, 2013, 2014, 2015, and 2016 were obtained from CMSD on March 28, 2017. 105. Harding filed SFIs for calendar years 2012 -2016 in compliance with Section 1104(a) of the State Ethics Act as follows: Date Filed For Calendar Year January 6, 20 2 January 8, 20T4— JanuarV 15, 2015 January 5, 2016 2015 January 7 2016 106. Harding failed to disclose [CTS as a direct or indirect source of income] on his calendar year 2012 and 2013 SFIs. III. DISCUSSION: As the Director of Support Services for the Canon - McMillan School District ( "CMSD ") from September 2011 to the present, Respondent Matthew Harding, also referred to herein as "Respondent," "Respondent Harding," and "Harding," has been a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Respondent Hardin violated Sections 1103(a) and 1105(b)(5),(8), and (9) of the Ethics Act, 65 Pa.C.S. §? 1103(a), 1105(b)(5),(8), and (9): (1) When he, as the Director of Support Services for the CMSD, utilized his public position for the private pecuniary benefit of himself, a member of his immediate family, and/or a business with which he is associated, namely Computec Technical Solutions, Inc., when he used the offices and facilities of the CMSD to conduct Harding, 17 -010 Page 23 private business meetings and other business - related activities associated with Computec Technical Solutions, Inc., not related to any official CMSD purpose; (2) When he utilized CMSD personnel and facilities to arrange for private repairs of vehicles owned by him and/or his spouse, and/or a business with which he is associated; (3) When he utilized the access, influence, and entree through his public employment with the CMSD to obtain contracts/subcontracts for Computec Technical Solutions, Inc. with CMSD vendors; (4) When he approved invoices /payments to CMSD vendors while his private company, Computec Technical Solutions, Inc., was contracting with these same vendors; (5) When he failed to disclose Computec Technical Solutions, Inc. on Statements of Financial Interests ( "SFIs ") for the 2012 and 2013 calendar years as a directlindirect source of income; and (6) When he failed to disclose his office, directorship, or employment and any financial interest in a business named "Everyday Hero" on SFIs filed for the 2012, 2013, 2014, 2015, and 2016 calendar years. Per the Consent Agreement of the parties, the Investigative Division has exercised its prosecutorial discretion to nol pros the allegation in the third numbered paragraph above, concerning Respondent's alleged use of access, influence, and entree of public employment to secure contracts/subcontracts for Computec Technical Solutions, Inc. with CMSD vendors, as well as the allegations in the sixth numbered paragraph above concerning alleged violations of Sections 1105(b)(8) and (9) of the Ethics Act. Based upon the no] pros, we need not address the allegations no longer before us. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. Harding, 17 -010 Page 24 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public officelemployment or confidential information received by holding such a public position for the private ecuniar benefit of the public official /public employee himself, an member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. 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. Respondent has held the position of CMSD Director of Support Services from September 2011 to the present. As Director of Support Services, Respondent oversees the CMSD Technology, Facilities, and Transportation Departments. Respondent's duties and responsibilities as CMSD Director of Support Services include, but are not limited to: (1) overseeing the development and administration of the budget for the Facilities, TTechnology, and Transportation Departments; (2) determining specifications and recommending necessary purchases of all supplies, materials, and equipment pertaining to Building and Grounds, Technology, and Transportation; and (3 ) supervising and inspecting all work performed by outside contractors and verifying that the terms of such contracts have been fulfilled prior to authorizing payment. As CMSD Director of Support Services, Respondent initiates and/or approves all purchase order requisitions from the Facilities, Technology, and Transportation Departments. After reviewinglapproving such requisitions, Respondent forwards the requisitions to the CMSD Superintendent and Business Manager for payment. A requisition will not advance from the Support Services Department until Respondent approves it. In a private capacity, Respondent owns a technology sup pport/service company which Respondent initially incorporated in 2000 under the name mputec." The 2000 corporate filings document Respondent as the owner of Computec. On or about February 18, 2010, Respondent renamed /restructured Computec as "Computec Technical Solutions, Inc." (also referred to herein as "CTS" The 2010 corporate filings document Respondent's spouse, Melissa "Missy" Harding, as resident and Respondent as Vice President of CTS. The first and second allegations above involve Respondent's use of CMSD off ices/facilities/employees for private purposes. The parties have stipulated that in contravention of CMSD policy, Respondent utilized his CMSD computer(s) and /or smartphone for private business purposes, sometimes during CMSD school hours. Respondent also arranged to meet with CTS employees at the CMSD Support Building during regular school hours. The parties are in agreement that any pecuniary benefit received as a result of the aforesaid use of CMSD offices and facilities was de minimis. Similarly, the parties are in agreement that Respondent realized a de minimis pecuniary benefit in the total estimated amount of $130.00 by utilizing the Support Building facility and employees to service /repair personal) owned vehicles. We need not further elaborate on Respondent's actions to secure the aforesaid de minimis pecuniary benefits. The material facts pertaining to the remaining allegations are as follows. Tyco- SimplexGrinnell ( "Simplex ") is a national provider of active fire protection Ha 25 17 -010 m ge e 2� a systems, communication systems, and testing, inspection, and maintenance services. Prior to 2011 the only business Simplex did with CMSD involved a Simplex system in the CMSD Middle School. In the summer of 2011 Simplex sales representative Ben Wise ( "Wise ") met with Respondent at the CMSD Support Building to discuss the possibility of upgrading the Simplex system in the Middle School and to explore other potential Simplex opportunities at CMSD. Wise knew of Respondent through a family connection, and he was aware that Respondent was both the CMSD Director of Support Services and the owner of a technology /networking company (CTS). Respondent informed Wise that CMSD was not interested in pursuing system upgrades in the Middle School at that time, but that he would consider Simplex products in the future. Thereafter, Wise recommended CTS to Simplex security sales representative John Boyle ( "Boyle ") and Simplex Electronics Operations Manager David Zimmerman ( "Zimmerman ") as a potential subcontractor for Simplex projects. Wise's primary purpose in recommending Respondent/CTS to subcontract with Simplex was to obtain contracts from CMSD. Subsequently, CTS entered into a Subcontractor's Master Agreement ( "Subcontractor's Agreement ") with Simplex. Respondent/CTS performed subcontracting work for Simplex between December 2019 and March 2013. CTS was paid a total of $16,730.00 as a result of subcontract work performed for Simplex. Meanwhile, Respondent as CMSD Director of Support Services reviewed and approved payment of Simplex invoices to CMSD. See, Fact Finding 60. In or about December 2011, Wise obtained a quote from CTS for subcontract work on a resident security system for the Washington County Health Center (also referred to herein as the "County Project "). On January 19, 2012, the Washington County Commissioners awarded the CountyProject to Simplex. Immediately following the awarding of the County Project to Simplex (and subcontract to CTS), Wise began soliciting Respondent to obtain Simplex business opportunities with CMSD. In May /June 2012, Wise solicited Respondent to purchase DVR equipment for CMSD during the same time CTS was serving as a Simplex subcontractor on the County Project. On May 30, 2012, Wise emailed Respondent a quote for a 16- channel DVR. On June 5, 2012, Respondent responded to Wise via email that he would be placing an order. On June 21, 2012, Wise replied to Respondent via email stating that he (Wise) was having a slow month of business with Simplex and requesting that CMSD issue a purchase order y the end of June (2012) for the DVRs. Respondent responded to Wise on June 22, 2012, via email, stating that he was unable to place a purchase order since the CMSD purchase system was closed until July 1, 2012. On or about July 9, 2012, Boyle was notified of Washington County's dissatisfaction with work that CTS performed for a portion of the County Project. On or about July 11, 2012, Wise directed Respondent/CTS to correct and complete CTS's portion of the County Project. (in addition to any corrective action CTS undertook, Simplex personnel performed an additional 48.5 hours of work on the County Project to correct deficiencies in the work previously performed by CTS.) On July 12, 2012 the day after Wise notified CTS of the poor - quality work on the County Project— Respondent emailed a directive to CMSD Facilities Department Secretary Karen Dorgan ( "Dorgan ") to order five DVRs from Simplex through Wise. Dorgan enerated CMSD purchase order no. 12130605, dated July 23, 2012, in the amount of 6,429.96 for the purchase of the DVRs. Simplex billed CMSD via invoice dated August 1, 2012, the amount of $6,429.96 for the DVRs. On or by August 9, 2012, Respondent, as the CMSD Director of Support Services, approved the payment of the Simplex invoice in Harding, 17 -010 aP ge M the amount of $6,429.96. Respondent's approval to pay the Simplex invoice resulted in its advancement to the Business Office for final reviewlpayment. CMSD ultimately disbursed check no. 126752, dated September 18, 2012, to Simplex in the amount of $6,429.96. On September 10, 2012, Melissa Harding issued invoice no. 12 -038 in the amount of $1,400.00 and invoice no. 12-037, dated October 11, 2012, in the amount of $8,250.00 to Simplex seeking payment for CTS work on the Count yy Project. Respondent was aware that Melissa Harding submitted the aforesaid invoices to Simplex for payment. On November 29, 2012, Zimmerman directed that payment of CTS invoices nos. 12- 037 and 12 -038 be put on hold. Zimmerman considered charging CTS for additional costs incurred by Simplex as a result of Simplex correcting CTS's work on the County Project. No Simplex representatives contacted Respondent or any other CTS representatives to inform CTS of the hold on payment. On December 14, 2012, Melissa Harding emailed Simplex inquiring as to the status of payment of CTS invoices nos. 12 -037 and 12 -038. Melissa Harding's email was forwarded to Zimmerman. After receiving Melissa Harding's email, Zimmerman, Boyle, Wise, and others at Simplex discussed charging CTS for its delays and poorworkmanship regarding the County Project. On January 29, 2013, Respondent emailed Wise questioning if Wise would honor a previous quote provided to Respondent in March 2012 for the purchase of technology equipment (DVRs). At the time Respondent contacted Wise, Respondent knew Simplex had not yet paid the aforesaid CTS invoices and that Simplex had issues with Respondent's /CTS's performance as a Simplex subcontractor. Wise replied to Respondent that same day via email that he would honor the price quoted in March 2012. Wise's email included an arrangement to meet Respondent of the CMSD Support Building on February 6, 2013, to discuss a CMSD order for cameras. On February 13, 2013, after Respondent met Wise, Melissa Harding emailed Simplex a second time regarding payment of CTS invoices nos. 12 -037 and 12 -038. On February 15, 2013, Zimmerman responded to Melissa Harding that he intended to issue full payment to CTS for invoice no. 12 -038 and to reduce payment to CTS for invoice no. 12 -037 by the amount of $4,850.00 due to poor quality of work, numerous issues that required corrective work by Simplex, and the County's repair of damage to the building resulting from CTS's work. On February 13, 2013 - --the same date Melissa Harding emailed Zimmerman at Simplex regarding the outstanding CTS invoice —Respondent authorized the CMSD Technology Coordinator, who reports directly to Respondent, to submit CMSD purchase order no. 12131737, dated February 13, 2013, in the amount of $4,851.08, for the purchase of four DVRs from Simplex. Respondent's purchase authorization from Simplex followed his meeting with Wise on February 6, 20'13. The CMSD purchase of four DVRs from Simplex (authorized by Respondent) was $1.08 more than the amount ($4,850.00) that Simplex was withholding from CTS. Respondent responded to Zimmerman's email requesting a list detailing the additional hours Simplex incurred correcting CTS's poor workmanship and the damage CTS caused to the County building. Zimmerman did not reply to Respondent's email. Inlabout February 2013, Wise made efforts to convince Zimmerman to pay CTS for invoice no. 12037 in full. Wise believed that if payment in full was made to Respondent/CTS, future business opportunities existed for Simplex at CMSD. As of February 19, 2013, Wise was of the impression that Zimmerman had decided to pay both CTS invoices in full. Wise emailed Zimmerman on February 19, 2013, thanking Zimmerman on his decision. Wise's email confirmed Respondent having Harding, 17 -010 Page 27 "already" given Wise a purchase order for $5,000.00 and informed Zimmerman of CMSD initiating an order from Simplex of approximately $50,000.00 for camera upgrades. Two days after Wse's February 19, 2013, email to Zimmerman, Simplex issued check no. 4046226, dated February 21, 2013, in the amount of $1,400.00, as payment to CTS for invoice no. 12 -038. On or about February 22, 2013, Respondent called Wise directly seeking the payment status of CTS invoice no. 12 -037. The same day as his conversation with Respondent, Wise emailed Zimmerman regarding payment of CTS invoice no. 12 -037. Excerpts of Wise's email to Zimmerman are detailed at Fact Finding 85 b. Zimmerman intended to withhold payment from Simplex to CTS until and unless Respondent agreed to a $50,000.00 purchase by CMSD. Wise stated that Respondent, as Director of Support Services for CMSD, would not utilize Simplex for future CMSD purchases unless Simplex paid CTS the disputed amount in full. Zimmerman ultimately emailed Respondent on March 11, 2013, that he C(Zimmerman) had decided to authorize and issue full payment of invoice no. 12 -037 to TS. The email documented Zimmerman having changed his mind after discussion between Zimmerman and Wise, which included more potential business for Simplex from CMSD, if the CTS invoice was paid in full. On March 14, 2013, Respondent, as CMSD Director of Support Services, approved the payment of Simplex invoice no. 40537925 (CMSD Purchase Order 12131737). Respondent approved payment of the Simplex invoice approximately three days after notification from Zimmerman that Simplex would pay CTS invoice no. 12 -037 in full. Respondent's approval to pay the Simplex invoice resulted in its advancement to the Business Office for payment. CMSD disbursed check no. 129132, dated March 19, 2013, in the amount of $4,851.08 to Simplex in payment of invoice no. 40537925. Simplex issued check no. 4047281, dated March 28, 2013, in the amount of $8,250.00, as payyment to CTS for invoice no. 12 -037. Simplex check no. 4047281 was deposited into CTS's bank account on April 1, 2013. There has been no business activity between CTS and Simplex since April 1, 2013. Respondent reviewed/approved CMSD purchase orders at a time CTS negotiated Simplex check payments. Between July 2012 and April 2013, Respondent authorized CMSD purchases from, and payments to, Simplex totaling $11,937.04. In February and March of 2013, Simplex issued two checks totaling $9,650.00 to CTS for CTS invoices nos. 12 -037 and 12-038. The parties have stipulated that Respondent utilized the authority of his public employment as CMSD Director of Support Services to initiate and authorize CMSD purchases from Simplex while he /CTS was seeking to secure contracts with Simplex and/or was a subcontractor to Simplex. Fact Finding 92. During the same time that a dispute over services and payment between Simplex and CTS existed, Respondent used his public position to authorize CMSD purchases from Simplex totaling the amount of the CTS disputed invoice, in an effort to secure payment from Simplex to CTS. Fact Finding 92 a. Respondent utilized the authority of his office to secure payment in full from Simplex by authorizing public fund purchases by CMSD from Simplex. Fact Finding 92 b. As for the remaining allegation regarding Respondent's SFIs, the parties have stipulated that Respondent failed to disclose CTS as a direct or indirect source of income on his SFIs for calendar years 2012 and 2013. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. Harding, 17 -010 Page 28 The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: The Investigative Division will recommend the following in relation to the above allegations: That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Matthew Harding, as the Director of Support Services for the Canon - McMillan School District, approved purchase invoices /payments to Tyco- SimplexGrinnell, a District vendor, while a business with which he is associated, namely Computec Technical Solutions, Inc., was in a contractual dispute with Tyco- SimplexGrinnell. b. That a violation of Section 1105(b)(5) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105 {b)(5), occurred when Matthew Harding, as the DDirector of Support Services for the Canon - McMillan School District, failed to disclose Computec Technical Solutions, Inc. as a direct/indirect source of income on Statements of Financial Interests filed for the 2012 and 2013 calendar years. C. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred as the Investigative Division chooses to nolle pros the allegation concerning any alleged use of access, influence, and entr6e of public employment to secure contracts /subcontracts for Computec Technical Solutions, Inc. with District vendors. That no violation of Section 1103(a) of the Public Official and Employee Ethics Ac {, 65 Pa.C.S. § 1103(a), occurred concerning Computec Technical Solutions, Inc.'s use of offices and facilities of the Canon - McMillan School District, as any pecuniary benefit was de minimis. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1'103(a), occurred concerning the use of District personnel and facilities for private repairs of vehicles, as any pecuniary benefit was de minimis. f. That no violation of Section 1105(b)(8) and (9) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b)(8),(9), occurred regarding a failure to disclose any financial interest in "Everyday Hero" on Statements of Financial Interests filed for the 2012, 2013, 2014, 2015, and 2016 calendar years; as the entity was non- Harding, 17 -010 Page 29 active and as such the Investigative Division chooses to nolle pros the allegation. 4. Harding agrees to make payment in the amount of $9,650.00 in settlement of this matter payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. To the extent he has not already done so, Harding aggees to file complete and accurate amended Statements of Financial Interests with the Canon - McMillan School District, through the Pennsylvania State Ethics Commission, for calendar years 2012 and 2013 within thirty (30) days of the issuance of the final adjudication in this matter. 6. Harding agrees to not accept any reimbursement, compensation or other payment from the Canon - McMillan School District representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authonty to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 2 -3. In considering the Consent Agreement, we agree with the parties that a violation of Section 1103(a of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Respondent, as the Director of Support Services for the CMSD, approved purchase invoices/payments to Tyco - SimplexGrinnell, a CMSD vendor, while a business with which he is associated, namely Computec Technical Solutions, Inc., was in a contractual dispute with Tyco - SimpiexGnnnell. Respondent utilized the authority of his public employment as CMSD Director of Support Services to initiate and authorize CMSD purchases from Simplex while he /CTS was seeking to secure contracts with Simplex and/or was a subcontractor to Simplex. Fact Finding 92. During the same time that a dispute over services and payment between Simplex and CTS existed, Respondent used his public position to authorize CMSD purchases from Simplex totaling the amount . of the CTS disputed invoice, in an effort to secure payment from Simplex to CTS. Fact Finding 92 a. The amount in dispute was not de minimis. Respondent utilized the authority of his office to secure payment in full from Simplex by authorizing public fund purchases by CMSD from Simplex. Fact Finding 92 b. We hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Respondent Harding, as the Director of Support Services for the CMSD, approved purchase invoices/payments to Tyco- SimplexGrinnell, a CMSD vendor, while a business with which he is associated, namely Computec Technical Solutions, Inc., was in a contractual dispute with Tyco - SimplexGrinnell. We further agree with the parties, and we hold, that a violation of Section 1105(b)r) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Respondent Harding, as t e Na_ di0, 17 -010 b r age 30 Director of Support Services for the CMSD, failed to disclose Computec Technical Solutions, Inc. as a direct/indirect source of income on SFIs fled for the 2012 and 2013 calendar years. Based upon the Stipulation of Findins and Consent Agreement of the parties, we hold that no violation of Section 1103(a) of tRe Ethics Act, 65 Pa.C.S. § 1103(a), occurred concerning Computec Technical Solutions, Inc.'s use of offices and facilities of the CMSD, as any pecuniary benefit was de minimis. Based upon the Stipulation of Findings and Consent Agreement of the arties, we hold that no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a�, occurred concerning the use of CMSD personnel and facilities for private repairs of vehicles, as any pecuniary benefit was de minimis. As art of the Consent Agreement, Respondent has agreed to make payment in the amount of p$9,650.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Respondent has agreed to not accept any reimbursement, compensation or other payment from the CMSD representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Respondent has agreed to file complete and accurate amended SFIs with the CMSD, through this Commission, for calendar years 2012 and 2013 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. Per the Consent Agreement of the parties, Respondent Harding is directed to make payment in the amount of $9,650.00 payable to the Commonwealth of Pennsylvania, with such payment 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, Respondent Harding is further directed to not accept an reimbursement, compensation or other payment from the CMSD representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Respondent Harding is directed to file complete and accurate amended SFIs for calendar years 2012 and 2013 with the CMSD, through this Commission, by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: As the Director of Support Services for the Canon - McMillan School District ( "CMSD ") from September 2011 to the present, Respondent Matthew Harding ( "Harding ") has been a public official /public employee sub] the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Harding violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when, as the Director of Support Services for the CMSD, he approved purchase invoices /payments to Tyco- SimplexGrinnell, a CMSD vendor, while a business with Harding, 17 -010 age 31 which he is associated, namely Computec Technical Solutions, Inc., was in a contractual dispute with Tyco- SimplexGrinnell. 3. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Harding, as the DDirector of Support Services for the CMSD, failedd to disclose Computec Technical Solutions, Inc. as a directlindirect source of income on Statements of Financial Interests filed for the 2012 and 2013 calendar years. Based upon the Stipulation of Findings and Consent Agreement of the parties, no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred concerning Computec Technical Solutions, Inc.'s use of offices and facilities of the CMSD, as any pecuniary benefit was de minimis. Based upon the Stipulation of Findings and Consent Agreement of the parties, no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred concerning the use of CMSD personnel and facilities for private repairs of vehicles, as any pecuniary benefit was de minimis. In Re: Matthew Harding, File Docket: 17 -010 Respondent Date Decided: 10/23/18 Date Mailed: 10131118 ORDER NO. 1741 1. Matthew Harding ( "Harding ") violated Section 1103(a ) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), when, as the Director of Support Services for the Canon - McMillan School District ( "CMSD "), he approved purchase invoices /payments to Tyco - SimplexGrinnell, a CMSD vendor, while a business with which he is associated, namely Computec Technical Solutions, Inc., was in a contractual dispute with Tyco - SimplexGrinnell. 2. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Harding, as the irector of Support Services for the CMSD, failed to disclose Computec Technical Solutions, Inc. as a direct/indirect source of income on Statements of Financial Interests filed for the 2012 and 2013 calendar years. 3. Based upon the Stipulation of Findings and Consent Agreement of the parties, no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred concerning Computec Technical Solutions, Inc.'s use of offices and facilities of the CMSD, as any pecuniary benefit was de minimis. 4. Based upon the Stipulation of Findings and Consent Agreement of the parties, no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred concerning the use of CMSD personnel and facilities for private repairs of vehicles, as any pecuniary benefit was de minimis. 5. Per the Consent Agreement of the parties, Harding is directed to make payment in the amount of $9,650.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no laterthan the thirtieth (30th) day after the mailing date of this Order. 6. Per the Consent Agreement of the parties, Harding is directed to not accept any reimbursement, compensation or other payment from the CMSD representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. To the extent he has not already done so, Harding is directed to file complete and accurate amended Statements of Financial Interests for calendar years 2012 and 2013 with the CMSD, through this Commission, by no later than the thirtieth (30«) day after the mailing date of this Order. 8. Compliance with paragraphs 5, 6, and 7 of this Order will result in the closing of this case with no further action by this Commission. a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, zop