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In Re: William Middleton,
Respondent
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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: www.eihics.pa.apv
17 -030
Order No. 1742
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 seg., by the above -named Respondent. A
Stipulation of Findings and a Consent A-g-reement 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 William Middleton, a public official /public employee in his capacity as the
President of the Board of Directors for the Pennsylvania Leadership Charter School
{ "PALCS' ), violated [Sections 1103(a), 1105(b)(1), 1105(b)(5), and 1105(b)(8)] of the State
Ethics Act (Act 93 of 1998) when he utilized the authority of his public position to further a
pecuniary benefit for himself, a member of his immediate family, and/or a business with
which he and/or member(s) of his immediate family are associated, namely Green
Lawnscaping, LLC, when he participated in discussions and decision- making as to services
to be completed by Green Lawnscaping, LLC for the PALCS, beyond those previously
detailed within a pre - existing contract; when he subsequently voted to approve payment of
invoices from Green Lawnscaping, LLC for services provided beyond the pre - existing
contract; and when he filed deficient Statements of Financial Interests by falling to identify
his "Governmental Entity" for calendar years 2014, 2015, and 2016; providing no response
to "Address" as to calendar year 2015; failing to disclose reportable income as to calendar
year 2015; and failing to respond to "Office, Directorship or Employment in any Business"
as to calendar year 2016.
II. FINDINGS:
1. William Middleton ( "Middleton ") has served as a Member of the Board of Directors
( "Board ") of the Pennsylvania Leadership Charter School ( "PALCS ") since
approximately 2004.
a. Middleton has annually held the position of Board President since at least
2008.
2. The PALCS is a Commonwealth of Pennsylvania, Department of Education
Middleton, 17 -030
age
approved public cyber charter school for students in kindergarten through 12th grade
who reside in the Commonwealth of Pennsylvania.
3. As public institutions, cyber charter schools operate within the parameters of the
Public School Code of 1949, specifically 24 P.S. § 17- '1701 -A -- 17-1751 -A, as
administered by the Pennsylvania Department of Education ( "PDE ").
a. Prior to initiating educational services to Commonwealth residents, a cyber
charter school must be granted a charter by PDE.
b. Once a charter has been granted, the Board of Trustees (Directors) for a
cyber charter school is required to operate the school in accordance with the
provisions of 24 P.S. §§ 17- 1741 -A — 17- 1751 -A.
4. The PALCS submitted an application to PDE seeking a charter to operate a cyber
charter school on October , 2003, and submitted revised applications on April 7,
2003, June 26, 2003, and November 23, 2003.
a. PDE approved the PALCS's application in January 2004.
b. The initial PALCS charter granted by PDE contained a term commencing on
July 1, 2004, and ending on June 30, 2007.
5. Upon expiration of the initial charter, PDE notified the PALCS on July 3, 2007, that
the PALCS's charter was renewed for an additional five years.
a. The renewal granted a charter until June 30, 2012.
b. The PALCS has continued to operate under the terms of the July 3, 2007,
charter renewal.
6. As required by applicable law, the PALCS is governed by a five (5) Member Board.
a. Board Members are annually appointed /reappointed by sitting Board
Members.
b. Middleton has been the longest serving PALCS Board Member, serving
consecutive terms since 2004.
G. PALCS Board Members do not receive compensation for their service.
7. James Hanak, Ph.D. ( "Dr. Hanak ") is the founder of the PALCS.
a. Dr. Hanak has continuously served as the Chief Executive Officer ( "CEO ") of
the PALCS since its initial chartering.
b. As CEO, Dr. Hanak is responsible for overseeing the day -to -day operations
of the PALCS.
C. Although Dr. Hanak is responsible for daily operations, the PALCS Board
holds ultimate authority over the PALCS's operations and administration.
d. As CEO, Dr. Hanak negotiates and approves all contracts on behalf of the
PALCS.
e. In instances where a contract exceeds $10,000.00, Dr. Hanak is to notify the
PALCS Board.
Middleton, 17 -030
Page 3
8, The PALCS maintains four physical locations of operation throughout the state.
a. The PALCS houses its main office and administrative operations at 1332
Enterprise Drive, West Chester, PA 19380.
b. The PALCS maintains other locations in the vicinity of West Chester,
specifically: (1) the University Scholars Advanced Ideas Center, 1585 Paoli
Pike, West Chester, PA 19380; and (2) the Center for Performing and Fine
Arts, 211 Carter Drive, Suite C, West Chester, PA 19380.
C. The PALCS also operates a Western Regional Center located at The
Landings, 55 Alpha Drive West, Pittsburgh, PA 15238.
9. Per the terms of its leaselrental agreement(s), the PALCS is responsible for
landscaping /lawn care /snow removal for its 1585 Paoli Pike and 1332 Enterprise
Drive locations.
a. Costs associated with these responsibilities are included as part of the
PALCS's annual operating budget.
10. During the winter of 2010 -2011, snow removal and other lawn care services were
provided by McKenna American, subcontracted to Laurel Gardens.
a. As part of the service contract with Laurel Gardens, Laurel Gardens was to
utilize its own equipment for snow removal and lawn care services.
b. In addition to summer lawn maintenance, Laurel Gardens was responsible
for performing snow removal and deicing measures.
C. Dr. Hanak and Middleton were not satisfied with rates Laurel Gardens was
charging the PALCS for ice checks, snow removal, and winter maintenance
for the 'f 585 Paoli Pike and 1332 Enterprise Drive locations.
d. Dr. Hanak indicated that Laurel Gardens was assessing a fee of
approximately $360.00 per diem to conduct an "ice check" to determine
whether snow removal /deicing was necessary.
1. The PALCS would incur costs of $360.00 per day regardless of
whether any snow /ice removal occurred.
2. Based on what Dr. Hanak believed were excessive charges, he
discussed the matter with then Facilities Manager Ted Creighton
(deceased) and Middleton.
e. Middleton found the fees to be exorbitant and informed Dr. Hanak that he
(Middleton) could conduct an ice check free of charge.
11. Around May 2011, while reviewing fees associated with snow removal and other
lawn care services, Dr. Hanak and Middleton discussed seeking a new
landscaping /snow removal vendor(s).
12. During this discussion, Middleton inquired of Dr. Hanak whether he (Dr. Hanak)
would consider a bid from Christian Middleton for lawn care services for the PALCS
for the 1585 Paoli Pike and 1332 Enterprise Drive locations.
a. Christian Middleton is the son and immediate family member of Middleton.
b. Middleton informed Dr. Hanak that his son was starting a landscaping
Middleton, 17 -030
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business and that the PALCS would be his first client.
C. Dr. Hanak agreed to entertain a bid from Christian Middleton and instructed
Middleton to submit a proposal for landscaping services.
d. Middleton indicated that any bid submitted by Christian Middleton and/or
Middleton would be significantly less than what the PALCS was previously
paying Laurel Gardens.
13. Following the discussion between Dr. Hanak and Middleton, Christian Middleton
filed organizational documents with the Pennsylvania Department of State,
Corporation Bureau, for a business entity identified as "Green Lawnscaping, LLU
( "Green Lawnscaping ").
14. A Certificate of Organization for a Domestic Limited Liability Company for Green
Lawnscaping was filed with the Pennsylvania Department of State on June 9, 2011.
a. Neither Middleton nor Christian Middleton is listed as an organizer for Green
Lawnscaping.
b. The stated address for the entity is [address redacted].
C. The Certificate of Organization was prepared by Rachel Lee of
LegalZoom.com Inc.
1. Rachel Lee is listed as the organizer with an address of 101 North
Brand Boulevard, 11th Floor, Glendale, CA 91203.
d. The Pennsylvania Department of State assigned entity number 4036694 to
Green Lawnscaping.
e. [Address redacted] was the home address of Middleton and Christian
Middleton.
15, On July 5, 2011, Christian Middleton opened a checking account at PNC Bank in
the name of "Green Lawnscaping, LLC.°
a. Green Lawnscaping was assigned account number [account number
redacted].
b. Christian Middleton was the only authorized signatory on the account.
16. On July 15, 2011, one month after the Limited Liability Company documents for
Green Lawnscaping were filed with the Pennsylvania Department of State, Dr.
Hanak executed a contract with Green Lawnscaping that was signed by Christian
Middleton.
a. Contractual terms indicated an effective date of July 15, 2011, and contained
no end date.
b. Terms of the contract called for a monthly payment of $2,000.00,
representing a minimum of sixteen grass cuts per year.
C. Additional work beyond lawn mowing (e.g landscape installation and
fertilizer /weed killer applications) was to be billed at $100.00 per hour and
tree pruning, branch /shrubbery removal at $75.00 per hour.
d. The contract did not specify rates for snow removal or other winter
Middleton, 17 -030
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maintenance.
e. As a term and condition of the contract, the PALCS was to receive a 10%
discount "under current market value on these services."
The contract was signed b James Hanak, CEO of the PALCS and Christian
Middleton, as the owner oYGreen Lawnscaping.
g. At no time either before or following its execution was the contract presented
to the PALCS Board for review or approval.
Middleton was the PALCS Board President at the time the PALCS
entered into the contract with Christian Middleton /Green
Lawnscaping.
17. At the time that Green Lawnscaping was formed, Christian Middleton did not
maintain any clients other than the PALCS.
a. Middleton presented Green Lawnscaping to Dr. Hanak as a means of
initiating a client base for his son.
18. The contract between the PALCS and Green Lawnscaping was a contract for labor
only.
a. At the time of its formation, Green Lawnscaping did not own any landscaping
tools or equipment.
b. The PALCS leased, and ultimately purchased, lawn care equipment for use
by Green Lawnscaping regarding the contract for landscaping services at the
two PALCS locations.
19. Between April 27, 2011, and May 30, 2012, the PALCS purchased fuel and rented
and/or purchased lawn care equipment to be used by Green Lawnscaping, including
but not limited to push and riding lawn mowers, a tractor with attachments, gas
cans, shovels, a wheelbarrow, and a weed whacker.
a. The PALCS rented a 48" cut mower from Knox Equipment Rentals, 421 East
Market Street, West Chester, PA 19382 from August 15, 2011, through
October 10, 2011.
b. During this timeframe, two invoices totaling $1:981.00 ($1,040.50 on
09/06/11 and $940.50 on 10105111) were submitted to the PALCS for
payment.
20. On November 10, 2011, Middleton ordered a subcompact utility tractor with
implements and two Simplicity walk behind snow blowers from Conway Power
Equipment, Inc., 1614 E. Strasburg Road, West Chester, PA 19380.
a. Costs for all the items detailed above that were purchased by the PALCS
totaled $21,952.00.
b. An itemized order confirmation detailed the following:
Walk behind snow blowers:
2 Simp icity Ll 528E 4.5TP, 28" large frame, w /snow cab ($1,616.00 each)
$3,232.00
Tractor & Implements:
Middleton, 17 -030
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Kubota BX2660V 26hp diesel 4WD tractorwlR4 industrial tires and standard
3 -point hitch $11,125.00
LA243 Front Loader wlgrille guard $2,410.00
Land Pride FSP500 3 -point mount, PTO driven spreader $540.00
Curtis hard side deluxe cab wlwindshield wiper and 2 front work lights
$4,645.00
Order Total: $21,952.00.
21. The PALCS issued three separate checks to Conway Power Equipment, Inc. as
payment for the equipment.
a. Middleton's signature appears on two of the three checks issued to Conway
Power Equipment, Inc.
b. Checks were issued as follows:
Date Check No. Amount Signed By
11/10/11 21366 $ 3,000.00 William Middleton, James Hanak
11/23/11 21721 $ 2,900.00 James Hanak, Mary Ann Dunne
12/20/11 22438 116,052.00 William Middleton, James Hanak, Mary Ann Dunne
5
C. Purchase of the equipment listed above allowed Green Lawnscaping to fulfill
its contractual obligations to the PALCS.
22. Green Lawnscaping provided lawn care and related services to the PALCS from
July 2011 until December 2017.
a. Middleton served as a Member and President of the PALCS Board
throughout this entire time.
b. Green Lawnscaping ceased performing labor for the PALCS due to conflict
of interest allegations.
23. While Green Lawnscaping was serving as a vendor to the PALCS from 2011
through 2017, the PALCS/Dr. Hanak received several unsolicited quotes from other
entities regarding lawn care /winter maintenance.
a. The PALCS received unsolicited proposals from Ardent Landscaping, LGSM,
L.P. (Laurel Gardens), Amann Contracting Services, and Barlow
Construction.
b. Dr. Hanak dismissed the proposals without presenting them to the PALCS
Board for consideration.
C. Ardent Landscaping submitted a landscaping proposal for 2011.
1, The bid proposal included landscaping services between spring and
fall for a total of $15,085.00.
d. LGSM, L.P. (Laurel Gardens) submitted two 2011 maintenance contracts to
the PALCS.
LGSM, L.P. (Laurel Gardens) submitted two quotes, one for each of
the PALCS locations.
2. The proposals were specific to lawn care (spring through fall) for a
Middleton, 17 -030
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combined total of $23,280.70.
e. On February 7, 2012, the PALCS received a proposal from Amann
Contracting Services concerning landscape design maintenance and snow
removal services.
The proposal did not include a total contract cost but rather quotes for
specific areas of service.
2. Services included:
Lawn maintenance (avg. 24 cuts) $170.00 /cut
Maintenance of beds included
Leaf removal included
Landscaping {1 application)
$3,475.00
Spring Clean -
$540.00
Snow removal (included walkways)
Salting
$220.00
2 -5"
$270.00
5 -9"
$540.00.
On April 21, 2014, the PALCS received two quotes from Barlow
Construction, detailing combined estimate of $23,682.00 ($13,572.00 for
1585 Paoli Pike and $q1 0,110.00 for 1332 Enterprise Drive).
Barlow Construction's quotes were only for lawn care and did not
provide any quotes for snow removal/winter maintenance.
24. The unsolicited proposals differed from the contractual terms of the contract
between the PALCS and Green Lawnscaping in several areas.
a. The contract with Green Lawnscaping was for labor only.
b. Green Lawnscaping utilized equipment owned by the PALCS, whereas all
other companies were to utilize their own equipment.
C. Green Lawnscaping offered a $500.00 discount on mowing with weekly
cuttings, a minimum of sixteen per year, and an hourly rate for site planning,
landscape design, installation, fertilizer and weed killer application, and tree
removal at a 10% discount.
25. Work to be performed by Green Lawnscaping on behalf of the PALCS was left to
the discretion of Middleton.
a. The amount and scope of proposed work /actual work completed was not
brought before the PALCS Board for any preapproval or consideration.
b. Middleton advised Dr. Hanak of additional work that he (Middleton) believed
was needed or informed Dr. Hanak of work after its completion.
C. Beginning in 2012, Green Lawnscaping initiated snow removal services for
the PALCS at rates ranging between $50.00 and $100.00 per hour.
26. Middleton's duties /responsibilities with Green Lawnscaping included both
administrative and labor - related work, including but not limited to:
a. Performing actual labor (lawn mowing, tractor operation, etc.) at both PALCS
Middleton, 17 -030
agleam
locations;
b. Drafting and generating invoicing submitted to the PALCS for payment; and
C. Arranging /coordinating the time, scope, and volume of work to be completed
by Green Lawnscaping on behalf of the PALCS.
27. Invoices from Green Lawnscaping were hand - delivered to Dr. Hanak by Middleton
for reviewlapproval and payment.
a. Upon receiving the invoice from Middleton, Dr. Hanak signed the invoice and
forwarded it to Eileen Bowers', Director of Business Administration, for
immediate payment.
b. Upon receipt, Bowers prepared a check to Green Lawnscaping, which was
signed by her and included a stamped signature of Dr. Hanak.
C. Once drafted, the check to Green Lawnscaping was handed directly to
Middleton, usually the same day that the invoice was submitted for payment.
d. Payments made to Green Lawnscaping were expedited as a courtesy to
Middleton.
28. The PALCS Board approves the payment of bills through an authorization for the
CEO, Dr. Hanak, to pay bills as funds are available.
a. Bowers, and Mary Ann Dunne before her, were responsible for maintaining
the financial records of payments issued.
29. Middleton, in his official capacity as a Member and President of the PALCS Board,
participated in actions of the PALCS Board to authorize the CEO, Dr. Hanak, to
issue payments as funding was available, and [in actions of the PALCS Board] to
approve the annual PALCS budget(s) which would include funding allocated for
landscaping services.
a. Action undertaken by Middleton enabled payment to be made to Green
Lawnscaping.
b. Although Green Lawnscaping was not specified as a line item within the
PALCS operating budgets, Middleton was nonetheless aware that a
business with which he and/or his son were associated was a
vendor /contractor to the PALCS.
C. Middleton participated in actions of the PALCS Board to approve the PALCS
operating budgets for the 2012 -13 through the 2017 -18 school years.
d. Middleton attended all PALCS Board meetings Feld between January 2013
and January 2018.
1. The PALCS Board did not consistently hold monthly meetings.
2. Six meetinggs were cancelled between December 19, 2013, and
February 19, 2015.
30. At no time did the PALCS Board approve any individual invoices submitted for
payment by Green Lawnscaping, Middleton, or Christian Middleton, as individual
1 Prior to approximately July 2015, this role in the process was performed by Mary Ann Dunne.
Middleton, 17 -030
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invoices are not included as part of the monthly financial reports provided to the
PALCS Board.
a. Financial reports only include information provided to the PALCS Board on
assets and liabilities.
b. Within the assets category are checking and savings account balances,
school assets (such as computers and furniture), and funding due from
serviced school districts.
C. Within the liabilities category are accounts payable, payroll, bonus and lease
liability totals.
d. Middleton voted in the affirmative at each PALCS Board meeting to approve
the financial report and/or bills to be paid list.
e. By participating in the approval of the financial report andlor bills to be paid
list, Middleton approved [authorized all payments issued by the PALCS to
Green Lawnscaping from January 2013 through November 2017.
31. Between January 2013 and December 2017, Green Lawnscaping received 130
payments totaling $209,326.30 from the PALCS for services rendered.
a. Annual payment totals are recorded on IRS 1099 Miscellaneous Income
forms the PALCS issued to Green Lawnscaping.
b. 1099 Miscellaneous Income forms issued from the PALCS to Green
Lawnscaping include the following reported total payments issued covering
calendar years 2013 through 2017:
Year:
Amount:
207
40,981.25
2016
$37,828.75
2015
$41,628.75
2014
$43,684.75
2013
$45,202.80.
32. Payments to Green Lawnscapin from the PALCS totaling $209,326.30 included
payment for grass cutting and additional or "add on" services.
a. Authorization for additional services was granted by the PALCS as a result of
discussions between Dr. Hanak and Middleton.
Dr. Hanak accepted Middleton's assessment of what work, beyond
lawn mowing, was necessary, relying on Middleton's experience in the
landscape /nursery business and the fact that he was a Member of the
PALCS Board.
2. PALCS records do not include any documentation authorizing an
increase in scope of work provided by Green Lawnscaping, beyond
Dr. Hanak's approval of the invoice.
b. Totals for "add on" services per year are detailed in the chart below:
Middleton, 17 -030
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33
34
35
W
WA
Year
Total Amount
Paid to Green
Lawnsca a
Total paid by the
PALCS For
Mowin Only
Total Paid by the PALCS
for Add On Services
Beyond Lawn Mowing
2013
$45,202.80
$18,050.00
$27,152.80
2014
$43,684.75
$16,000.00
$27,684.75
2015
$41,628.75
$18,800.00
$22,828.75
2016
$37,828.75
$20,500.00
$17,328.75
2017
$40,981.25
$17,500.00
$23,481.25
TOTAL
$209,326.30
$90,850.00
$118,476.30
Between January 7, 2013, and December 5, 2017, Middleton's facsimile signature
appeared on approximately 115 of the 130 checks that the PALCS issued to Green
Lawnscaping. Checks containing Middleton's signature are as follows:
a. 2013:
28 checks totaling
$45,202.80
2014:
27 checks totaling
$43,684.75
2015:
26 checks totaling
$41,628.75
2016:
25 checks totaling
$37,828.75
2017:
9 checks totaling
'i5
$13,820.00
$147,999.00.
$182,165.05.
As a Member of the PALCS. Board, Middleton participated in action authorizing all
the aforementioned payments, including an additional fifteen payments which did
not include his facsimile signature.
All checks issued by the PALCS to Green Lawnscaping between 2013 and 2017
were deposited into the Green Lawnscaping checking account held at PNC Bank.
a. Christian Middleton endorsed each PALCS check for deposit into the PNC
account.
Middleton annually received a 1099 Miscellaneous Income statement from Green
Lawnscaping.
a. Christian Middleton was the party responsible for Green Lawnscaping tax
filings.
b. Middleton annually reported income received from Green Lawnscaping on
Income Tax Schedule C underthe source heading of "Green Lawnscaping."
Middleton received gross compensation totaling $147,999.00 from Green
Lawnscaping between 2013 and 2017.
a. Total compensation reported by Middleton is as follows:
2017
$27,600.00
tax returns 2
2016
$18,100.00
tax returns
2015
$32,114.00
tax returns
2014
$33,375.00
tax returns
2013
$36,810.00
account payments)
$147,999.00.
2 For the 2017 tax year Middleton reported income in the amount of $26,100.00 from Green Lawnscaping.
The $1,500.00 difference is the result of a $1,500.00 payment made to a member of Middleton's immediate
family other than Christian Middleton.
Middleton, 17 -030
Page I
38. Federal Income Tax Returns filed by Middleton for 2014 through 20173 report
income from Social Security and Green Lawnscaping.
a. During these filing years, Green Lawnscaping [was the source of]
approximately 49.10% of Middleton's gross income.
b. The percentage of gross income per year is as follows:
Year
Gross
Green
Lawnscaping
Percentage
2017
$81,587.00
$27,600.00
33.83%
2016
$50,619.00
$18,100.00
35.76%
2015
$44,283.00
$32,114.00
72.52%
2014
$49,968.00
$33,375.00
66.79%
Total
$226,457.00
$111,189.00
49.10%
39. Christian Middleton received gross compensation totaling $43,118.00 from Green
Lawnscaping between 2013 and 2017, as follows:
2017
$11,047.00
tax returns
2016
$13,942.00
tax returns
2015
$ 7,889.00
tax returns
2014
$ 8,415.00
tax returns
2013 1,825.00 account payments)
$43,118.00 otal.
a. In addition to the foregoing, Christian Middleton also made 58 loan payments
totaling $17,071.72 to Fifth Third Bank from the PNC account between 2013
and 2017.
40. Between 2013 and 2017, Green Lawnscaping received payments totaling
$209,326.00 from the PALCS, as detailed above.
a. Of that paid to Green Lawnscaping, $147,999.00 was received bylpaid to
Middleton.
b. An additional $43,118.00 was received by /paid to Christian Middleton.
C. Payment totals by year are detailed below:
Year
PALCS 1099
William Middleton
Christian Middleton
2017
$40,981.25
$27,600.00
$11,047.00
2016
$37,828.75
$18,100.00
$13,942.00
2015
$41,628.75
$32,114.00
$7,889.00
2014
$43,684.75
$33,375.00
$8,415.00
2013
$45,202.80
$36,810.90
$1,825.00
$209,326.30
1 $147,999.00
1 $43,118.00
3 The Investigative Division was informed that Tax Returns for years prior to 2013 were not available.
Middleton, 17 -030
7a—
41. On March 6, 2018, the PALCS Board enacted a Resolution relating to work
performed for the PALCS by Green Lawnscaping.
a. Excerpts of the PALCS Board's March 6, 2018, Resolution read, in part, as
follows:
Motion to approve a Resolution addressing approval and
ratification of all prior motions by the Board approving payment
of bills of the Corporation, including the bills submitted by
Green Lawnscaping, LLC, since June 2010. The Contractor is
a limited liability company whose principal member and
manager is the President, Bill Middleton's son, Christian
Middleton. The Contractor has performed landscaping work,
snow removal, and related activities, for PALCS since 2010.
From time to time, the Contractor presented bills for payment
for services rendered to PALCS, which Contractor's bills were
reviewed by the Administration and presented to the Board for
review and approval in the ordinary course of business,
payment of which was subsequently authorized and approved
y the Board...There is neither record nor recollection that a
single bill from the Contractor was presented separately to the
Board for approval... Minutes of the Board Meetings show that
the President voted in favor of these motions to approve the
financial reports and authorize the CEO to make payment as
funds are available, and that these motions often included
Contractor's Bills along with all other bills so approved by the
Board.
Each Director stated that he or she was aware of the
relationship between the Board President and the Contractor
and felt that the relationship had a positive impact and
benefited the Corporation.
b. Middleton did not participate in the ratification of the Resolution.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT MIDDLETON FILED
DEFICIENT STATEMENTS OF FINANCIAL INTERESTS FOR CALENDAR YEARS 2014,
2015, AND 2016.
42. Middleton, in his official capacity as a Member of the PALCS Board, was annually
required to file a Statement of Financial Interests by May 1st, reporting financial
interests for the prior calendar year.
43. Statements of Financial Interests filed by Middleton with the PALCS include the
following filings:
a. Calendar Year: 2017
Dated: 01/19/2018 on form SEC -1 REV. 01118
Position: Board Member
Governmental Entity: PALCS
Creditors: None
Direct/Indirect Income: Green Goods Direct and Green Lawnscaping
Office, Directorship, or Employment in any Business: None
All other financial interests: None.
b. Calendar Year: 2016
Middleton, 17 -030
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Dated: 01/20/17 on form SEC -1 REV. 01117
Position: Board Member
Governmental Entity: No response
Creditors: None
Direct/Indirect Income: Green Goods Direct
Office, Directorship, or Employment in any Business: No response
All other financial interests: None.
G. Calendar Year: 2015
Dated: 02/04/16 on form SEC -1 REV. 01113
Address: No response
Position: Board Member
Governmental Entity: No response
Creditors: Wells Fargo Auto Loan, 10.9%
Direct/Indirect Income: None
All other financial interests: None.
d. Calendar Year: 2014
Dated: 03/18/15 on form SEC -1 REV. 01112
Governmental Entity: No response
Creditors: Wells Fargo Platinum Card, 10%
Direct/Indirect Income: Green Goods Direct; Green Lawnscaping
All other financial interests: None.
e. Calendar Year: 2013
Dated: 04/30/14 on form SEC -1 REV. 01111
Position: School Board
Governmental Entity: No response
Creditors: Wells Fargo Bank, no rate listed
Direct/Indirect Income: Green Lawnscaping, LLC.; Green Goods Direct, LLC.
All other financial interests: None.
Calendar Year: 2012
Dated: 04/25/13 on form SEC -1 REV. 01113
Position: School Board
Creditors: Wells Fargo Bank, 7.99 %; Chase Bank, 9%
Direct/Indirect Income: Green Goods, LLC.; Green Lawnscaping, LLC.
All other financial Interests: None.
g. Calendar Year: 2011
Dated: 04/27/12 on form SEC -1 REV. 01108
Position: Board Member, Auditor
Creditors: Chase Visa Card, 16.99 %; Wells Fargo Visa, 16.99°/x; Chase
Mastercard, 16.99 %; Citi Bank Card, 16.99 %; Bank America Credit Card,
16.99%
Direct/Indirect Income. Green Goods Direct, LLC.; Green Lawnscaping, LLC.
All other financial interests: None.
44. Middleton failed to report Green Lawnscaping as a direct/indirect source of income
on Statement of Financial Interests forms filed for the 2015 and 2016 calendar
years.
a. Middleton received income totaling $32,114.00 from Green Lawnscaping
during 2015.
b. Middleton received income totaling $18,100.00 from Green Lawnscaping
during 2016.
Middleton, 17 -030
ag��-
45. Middleton failed to identify the PALCS as his Governmental Entity for calendar
years 2013, 2014, 2015, and 2016.
46. Middleton failed to provide a response to "Address" on his 2015 calendar year filing.
47. Middleton failed to provide a response to Office, Directorship or Employment on his
2016 calendar year filing.
48. Middleton utilized the authority of his position as a Member and President of the
PALCS Board in furtherance of a pecuniary benefit for himself, Christian Middleton -
a member of his immediate family (son), and a business with which he /an
immediate family member is associated, namely Green Lawnscaping, when he:
a. Participated in discussions with the PALCS CEO, Dr. Hanak, resulting in
Green Lawnscaping's continuous use by the PALCS as a vendor from 2013
through December 2017;
b. Participated in the PALCS Board's approval of annual budgets, monthly
financial reports, and bill payment authorizations which included funds paid
to Green Lawnscaping;
C. Allowed /authorized his facsimile signature to be affixed as a PALCS
signatory on 115 checks issued to Green Lawnscaping; and
d. Participated in action as a PALCS Board Member to purchase equipment for
use by Green Lawnscaping.
49. Green Lawnscaping, a business with which Middleton and/or his son are
associated, received gross payments totaling $209,326.30 from the PALCS
between January 2013 and December 2017.
a. Middleton received direct payments totaling $147,999.00 from Green
Lawnscaping between January 2013 and December 2017.
b. Middleton`s son, Christian Middleton, received direct payments totaling
$43,118.00 from Green Lawnscaping between January 2013 and December
2017.
Christian Middleton also made loan payments totaling $17,071.72
from the PNC account of Green Lawnscaping between February 5,
2013, and November 29, 2017.
III. DISCUSSION:
As a Member of the Board of Directors of the Pennsylvania Leadership Charter
School ( "PALCS ") since approximately 2004, Respondent William Middleton, also referred
to herein as "Respondent,' "Respondent Middleton," and "Middleton," has been a public
official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics
Act "), 65 Pa. C.S. § 1101 et sLq.
The allegations are that Middleton violated Sections 1103(a), 1105(b)(1 , 1105 {b)(5),
and 1105(b)(8) of the Ethics Act: (1) when he utilized the authority of his pulp is position to
further a pecuniary benefit for himself, a member of his immediate family and/or a business
with which he and /or member(s) of his immediate family are associated, namely Green
Lawnscaping, LLC, when he participated in discussions and decision- making as to services
to be completed by Green Lawnscaping, LLC for the PALCS, beyond those previously
detailed within a pre - existing contract; (2 ) when he subsequently voted to approve payment
of invoices from Green Lawnscaping, LLC for services provided beyond the pre - existing
Middleton, 17 -030
Page e 15�
contract; and 3) when he filed deficient Statements of Financial Interests ( "SFIs ") by failing
to identify his'. Governmental Entity" for calendar years 2014, 2015, and 2016; providing no
respoe to "Address" as to calendar year 2015; failing to disclose reportable income as to
calendansr year 2015; and failing to respond to "Office, Directorship or Employment in any
Business as to calendar year 2016.
Per the Consent Agreement of the parties, the Investigative Division has exercised
its prosecutorial discretion to nol pros the allegation under Section 1105(b (8) of the Ethics
Act. Based upon the nol pros, we need not address the Section 1105 {b }8} allegation no
longer before us.
Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a) Conflict of interest. --No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a member
of his immediate family or a business with which he or a
member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official /public employee from
using the authority of public office /employment or confidential information received by
holding such a public position for the private ecuniary benefit of the public official /public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1105(b of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the SFI form must provide.
Section 1105(b)(1) of the Ethics Act requires the filer to disclose on the SFI his
name, address, and pubblic position.
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.
Middleton, 17 -030
Page
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
The PALCS is a Commonwealth - approved public cyber charter school for students
in kindergarten through 12th grade who reside in Pennsylvania. The PALCS is governed by
a five - Member Board of Directors ( "Board ") that holds ultimate authority over the PALCS's
operations and administration. Middleton has served as a Member of the PALCS Board
since approximately 2004 and as President of the PALCS Board since at least 2008.
James Hanak, Ph.D. ( "Dr. Hanak ") is the founder of the PALCS. Dr. Hanak has Ex
served as the Chief ecutive Officer of the PALCS since its initial chartering in 2004. As
the Chief Executive Officer, Dr. Hanak is responsible for overseeing the daily operations of
the PALCS, and he negotiates and approves all contracts on behalf of the PALCS.
The PALCS maintains four physical locations of operation throughout the state. In
pertinent part, the PALCS houses its main office and administrative operations at 1332
Enterprise Drive, West Chester, PA 19380 (the "Enterprise Drive Location "). The PALCS
also operates the University Scholars Advanced Ideas Center, which is located at 1585
Paoli Pike, West Chester, PA 19380 (the "Paoli Pike Location "). Per the terms of the
PALCS's lease /rental agreements, the PALCS is responsible for landscaping, lawn care,
and snow removal for the Enterprise Drive Location and the Paoli Pike Location. Costs
associated with these responsibilities are included as part of the PALCS's annual operating
budget.
During the winter of 2010 -2011, Laurel Gardens was responsible for performing
lawn care and snow removal services for the Enterprise Drive Location and the Paoli Pike
Location. Laurel Gardens was to utilize its own equipment to perform such services.
Dr. Hanak and Middleton were not satisfied with the rates that Laurel Gardens
charged the PALCS for snow removal and winter maintenance for the Enterprise Drive
Location and the Paoli Pike Location, and around May 2011, they discussed seeking a new
vendor for landscaping and snow removal. During their discussion, Middleton asked Dr.
Hanak whether he would consider a bid from Middleton's son, Christian Middleton, for lawn
care services for the Enterprise Drive Location and the Paoli Pike Location. Middleton
informed Dr. Hanak that Christian Middleton was starting a landscaping business and that
the PALCS would be his first client. Dr. Hanak agreed to entertain a bid from Christian
Middleton and instructed Middleton to submit a proposal for landscaping services.
Middleton indicated that any bid submitted by Christian Middleton and/or Middleton would
be significantly less than what the PALCS had been paying to Laurel Gardens.
On June 9, 2011, Christian Middleton filed a Certificate of Organization for a
business entity identified as "Green Lawnscaping, LLC" ( "Green Lawnscaping ") with the
Corporation Bureau of the Pennsylvania Department of State. On July 15, 2011, Dr.
Hanak executed a contract with Green Lawnscaping that was signed b Christian
Middleton as the owner of Green Lawnscaping. The contract was effective July 15, 2011,
and contained no end date. The contract was for labor only and called for a monthly
payment of $2,000.00, representing a minimum of sixteen grass cuts eryear, Additional
work beyond lawn mowing, such as landscape installation and fertilizer /weed killer
applications, was to be billed at $100.00 per hour, and tree pruning and branch /shrubbery
removal were to be billed at $75.00 per hour. The contract did not specify rates for snow
removal ar other winter maintenance. Begrnn�ng in 2012, Green Lawnscaping initiated
snow removal services for the PALCS at rates ranging between $50.00 and $100.00 per
hour.
Green Lawnscaping did not own any landscaping tools or equipment at the time of
its formation. The PALCS rented or purchased lawn care equipment to be used by Green
Lawnscaping, including but not limited to push and riding lawn mowers, a tractor with
Middleton, 17 -030
Page
attachments, gas cans, shovels, a wheelbarrow, and a weed whacker.
Green Lawnscaping provided lawn care and related services to the PALCS from
July 2011 until December 2017, when Green Lawnscaping ceased providing such services
due to conflict of interest allegations. While Green Lawnscaping was servingg as a vendor
to the PALCS, the PALCS /Dr. Hanak received several unsolicited pproposals from other
entities for landscaping, lawn care, or snow removal services. Dr. Hanak dismissed the
proposals without presenting them to the PALCS Board for consideration.
The amount and scope of work to be performed by Green Lawnscaping on behalf of
the PALCS was left to the discretion of Middleton and was not brought before the PALCS
Board for preapproval or consideration. Authorization for additional services was granted
by the PALCS as a result of discussions between Middleton and Dr. Hanak. Middleton
advised Dr. Hanak of additional work that he believed was needed, or he informed Dr.
Hanak of work after it was completed. Dr. Hanak accepted Middleton's assessment of
what work beyond lawn mowing was necessary, relying on Middleton's experience in the
landscape /nursery business and the fact that Middleton was a Member of the PALCS
Board.
Between January 2013 and December 2017, Middleton, who had administrative and
labor- related duties and responsibilities with Green Lawnscapping, received gross
compensation totaling $147,999.00 from Green Lawnscaping. Middleton's duties and
responsibilities with Green Lawnscaping included arranging /coordinating the time, scope,
and volume of work to be completed by Green Lawnscaping on behalf of the PALCS,
performin lawn mowing and other labor at the Enterprise Drive Location and the Paoli
Pike LOCaTion, and drafting and generating invoices submitted to the PALCS for payment.
Middleton hand - delivered invoices from Green Lawnscaping to Dr. Hanak for
review/approval and payment. Upon receiving an invoice from Middleton, Dr. Hanak
signed the invoice and forwarded it to the Director of Business Administration, who then
prepared a check to Green Lawnscaping. The check was handed directly to Middleton,
usually the same day that the invoice was submitted for payment.
Middleton participated in actions of the PALCS Board to approve the PALCS
operating budgets for the 2012 -13 through the 2017 -18 school years, which included
funding allocated for landscaping services. Between January 013 and December 2017,
the PALCS issued 130 checks totaling $209,326.30 to Green Lawnscaping for services
rendered. The total amount paid to Green Lawnscaping by the PALCS consisted of
$90,850.00 for grass cutting and $118.476.30 for additional or "add on" services.
Middleton allowed or authorized his facsimile signature to be affixed as a PALCS signatory
on 115 of the 130 checks that the PALCS issued to Green Lawnscaping. Middleton
participated in votes of the PALCS Board that approved or authorized all of the 130
payments issued to Green Lawnscaping through the approval of the monthly financial
report and/or bills to be paid list.
Asa Member of the PALCS Board, Middleton is required to annually file an SFI by
May 1 containing information for the prior calendar year. Middleton failed to identify the
PALCS as his "Governmental Entity" on SFIs filed for the 2014, 2015, and 2016 calendar
years. Middleton failed to rovide a response to "Address" on his SFI filed for the 2015
calendar Year. Middleton further failed to report Green Lawnscaping as a direct/indirect
source of income on his SFI filed for the 2015 calendar year. (We parenthetically note that
although the Stipulated Findings provide that Middleton also failed to. (1) identify the
PALCS as his °Governmental Entity" on his SFI filed for the 2013 calendar year; and (2)
report Green Lawnscaping as a direct/indirect source of income on his SFi filed for the
2016 calendar year, such failures are not encompassed within the allegations in the instant
matter.)
Middleton, 17 -030
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Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
The Investigative Division will recommend the following in
relation to the above allegations:
That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred when William Middleton, in his
capacity as the President of the Board of
Directors for the Pennsylvania Leadership
Charter School ( "PALCS "), participated in
discussions and decisions as to services to be
completed for the PALCS by Green
Lawnscaping, LLC, a business with which he
and/or his son are associated; and when he
voted to authorize /approve payment to Green
Lawnscaping, LLC from the PALCS.
b. That a violation of Section 1105(b)(1) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(1), occurred when, as a public
official/public employee, Middleton filed deficient
Statements of Financial Interests by failing to
identify his "Governmental Entity" for calendar
years 2014, 2015, and 2016; and when he
provided no response to "Address" as to
calendar year 2015.
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, as a public
official/public employee, Middleton filed a
deficient Statement of Financial Interests by
failing to identify Green Lawnscaping, LLC as a
reportable source of income as to calendar year
2015.
d. That no violation of Section 1105(b)(8) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(8), occurred as the
Investigative Division chooses to nolle pros the
allegation, due to insufficient evidence.
4. Middleton agrees to make payment in the amount of
$10,000.00 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. =tely of this Agreement, Middleton agrees that he will
resign from his position as a Member of the Board
of Directors for the Pennsylvania Leadership Charter School
( "PALCS "). Middleton agrees to neither seek nor hold any
Middleton, 17 -030
fiag�9—
position with the Pennsylvania Leadership Charter School
( "PALCS ") until at least January 2020.
6. To the extent he has not already done so, Middleton agrees to
file complete and accurate amended Statements of Financial
Interests with the Pennsylvania Leadership Charter School
(`PALCS "), through the Pennsylvania State Ethics
Commission, for calendar years 2014, 2015, and 2016 within
thirty (30) days of the issuance of the final adjudication in this
matter.
7. Middleton agrees to not accept any reimbursement,
compensation or other payment from the Pennsylvania
Leadership Charter School ('PALCS "), representing a full or
partial reimbursement of the amount paid in settlement of this
matter.
The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. 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 accept the recommendation of the
parties for a finding that a violation of Section 1103(a) of the Ethics Act occurred when
Middleton, in his capacity as a Member and President of the PALCS Board, participated in
discussions and decisions as to services to be completed for the PALCS byy Green
Lawnscapingg, a business with which he and/or his son are associated; and when he voted
to authorizelapprove payment to Green Lawnscaping from the PALCS.
From July 2011 until December 2017, Green Lawnscaping, a business owned by
Middleton's son, Christian Middleton, provided lawn care and related services to the
PALCS. Middleton had administrative and labor - related duties and responsibilities with
Green Lawnscaping that involved the work performed by Green Lawnscaping for the
PALCS.
The contract between Green Lawnscaping and the PALCS called for a monthly
payment for lawn mowing, and additional work beyond lawn mowing was to be billed at
various hourly rates. Middleton used the authority of his public position as a Member and
President of the PALCS Board when he had discussions with Dr. Hanak, the Chief
Executive Officer of the PALCS, about additional work beyond lawn mowing that he
believed was needed.
Between January 2013 and December 2017, the PALCS issued 130 checks totaling
$209,326.30 to Green Lawnscaping for services rendered. The total amount paid to Green
Lawnscaping included $118,476.30 for additional or "add on" services. Middleton used the
authority of his public position when he participated in votes of the PALCS Board that
approved or authorized all of the 130 payments issued to Green Lawnscaping through the
approval of the monthly financial report and/or bills to be paid list.
With each element of a violation of Section 1103(a) met, we hold that Middleton
violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when, in his capacity as a
Middleton, 17 -030
ag0—
Member and President of the PALCS Board, he participated in discussions and decisions
as to services to be completed for the PALLS by Green Lawnscaping, a business with
which he and/or his son are associated; and when he voted to a uth orizelap prove payment
to Green Lawnscaping from the PALCS.
Turning to the allegations regarding Middleton's SFIs, we hold that: (1) a violation of
Section 1105(%1) of the Ethics Act, 65 Pa.C.S. § 110%b)(1), occurred when Middleton
filed deficient SFIIs by failing to identify his "Governmental) Emity" for calendar years 2014,
2015, and 2016; and when he provided no response to "Address" as to calendar year
2015; and (2) a violation of Section 1105(bg5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5),
occurred when Middleton filed a deficient SFI by failing to identify Green Lawnscaping as a
reportable source of income as to calendar year 2015.
As part of the Consent Agreement, Middleton has agreed to make payment in the
amount of $10,000.00 payable to the Commonwealth of Pennsylvania and forwarded to
this Commission within thirty (30) days of the issuance of the final adjudication in this
matter. Middleton has further agreed to not accept an reimbursement, compensation or
other payment from the PALCS representing a fufl or partial reimbursement of the amount
paid in settlement of this matter.
To the extent he has not already done so, Middleton has agreed to file complete and
accurate amended SFIs with the PALCS, through this Commission, for calendar years
2014, 2015, and 2016 within thirty (30) days of the issuance of the final adjudication to this
matter.
Finally, Middleton has agreed that he will immediately resign from his position as a
Member of the PALCS Board and that he will neither seek nor hold any position with the
PALCS until at least January 2020.
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, Middleton is directed to
make payment in the amount of $10,000.00 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. Middleton is directed to not accept
any reimbursement, compensa ?ion or other payment from the PALCS representing a full or
partial reimbursement of the amount paid in settlement of this matter.
To the extent he has not already done so, Middleton is directed to file complete and
accurate amended SFIs for calendar years 2014, 2015, and 2016 with the PALCS, through
this Commission, by no later than the thirtieth (30th) day after the mailing date of this
adjudication and Order.
Finally, Middleton is ordered to fulfill his agreement that he will immediately resign
from his position as a Member of the PALCS Board and will neither seek nor hold any
position with the PALCS until at least January 2020.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV. CONCLUSIONS OF LAW:
1. As a Member of the Board of Directors of the Pennsylvania Leadership Charter
School ("PALCS") since approximately 2004, Respondent William Middleton
Middleton, 17 -030
agP�I-
( "Middleton ") has been a public official subJject to the provisions of the Public Official
and Employee Ethics Act ( "Ethics Act'), 65 Pa.C.S. § 1101 et seq.
2. Middleton violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when,
in his capacity as a Member and president of the Board of Directors of the PALCS,
he participated in discussions and decisions as to services to be completed for the
PALCS by Green Lawnscaping, LLC, a business with which he and/or his son are
associated; and when he voted to authorize /approve payment to Green
Lawnscaping, LLC from the PALCS.
A violation of Section 1105(b)(1) of the Ethics Act, 65 Pa.C.S. § 110%)(1),
occurred when Middleton file( deficient Statements of Financial Interests by failing
to identify his "Governmental Entity" for calendar years 2014, 2015, and 2016; and
when he provided no response to "Address" as to calendar year 2015.
A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105U.5),
occurred when Middleton file( a deficient Statement of Financial Interests by failing
to identify Green Lawnscaping, LLC as a reportable source of income as to calendar
year 2015.
In Re: William Middleton, File Docket: 17 -030
Respondent Date Decided: 10/23/18
Date Mailed: 10/31/18
ORDER NO. 1 742
William Middleton ( "Middleton ") violated Section 1103(a) of the Public Official and
Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), when, in his capacity as a
Member and President of the Board of Directors of the Pennsylvania Leadership
Charter School ( "PALCS?6r he participated in discussions and decisions as to
services to be completed the PALCS by Green Lawnscaping, LLC, a business
with which he and/or his son are associated; and when he voted to
authorize /approve payment to Green Lawnscaping, LLC from the PALCS.
2. A violation of Section 1105(b)(1) of the Ethics Act, 65 Pa.C.S. § 1105(b)(1),
occurred when Middleton file( deficient Statements of Financial Interests by ailing
to identify his "Governmental Entity" for calendar years 2014, 2015, and 2016; and
when he provided no response to "Address" as to calendar year 2015.
3. A violation of Section 11051b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(_b)(5),
occurred when Middleton file( a deficient Statement of Financial Interests by ailing
to identify Green Lawnscaping, LLC as a reportable source of income as to calendar
year 2015.
4. Per the Consent Agreement of the parties, Middleton is directed to make payment in
the amount of $10,000.00 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth
(30th) day after the mailing date of this Order.
5. Middleton is directed to not accept any reimbursement, compensation or other
payment from the PALCS representing a full or partial reimbursement of the amount
paid in settlement of this matter.
6. To the extent he has not already done so, Middleton is directed to file complete and
accurate amended Statements of Financial Interests for calendaryears 2014, 2015,
and 2016 with the PALCS, through the Pennsylvania State Ethics Commission, by
no later than the thirtieth (30th) day after the mailing date of this Order.
7. Middleton is ordered to fulfill his agreement that he will immediately resign from his
position as a Member of the PALCS Board of Directors and will neither seek nor
hold any position with the PALCS until at least January 2020.
Compliance with paragraphs 4, 5, 6, and 7 of this Order 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.
BY THE COMMISSION,
,04 EMMA. .. a.-