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STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120-0400
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In Re: Dean Gindlesperger, File Docket: 18-018
Respondent X-ref: Order No. 1759
Date Decided: 9/25/19
Date Mailed: 1017/19
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
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"), �5 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the
commencement of its investigation, 6e_ Fnvestigative 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 Nentified 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 Dean Gindlesperger a public official/public employee in his capacity as a
Member and/or Chairman of the 6ambria County War Memorial Authority Board, violated
Sections 1103(a), 1103 1105(b(1), 1105�,�(2),1105(b��5),1105,�lb)(8), and 110 b (9 of
the State Ethics Act k1t 93 o 1998), 1103(f), 11 1),
1105(b)(2)� 1105(b�(,,5), 1105(b)(8), and 11105(b�(9, when he utilized the authority 0 is
b i o himself, a member of his immediate
5,
r �b 1
c 1 a e '6cuniary benefit
sr v idecisions
t h pecuniary
'c' himself/immediate
n �e p with
t w
la and/or a for
' business family is/are associated, when he
u rt I position
s us ' 5io ns, declsio n s a nd/or actions
t 'o r
p mily, d in I
a ici ae Iicu s ions of the Authority Board to award/modify
a 0 r ct with
rArena
rn�
contract a h SMG, the contracted
acted Ar manager, at a time when Gindlesperger,
members
m rs of s immediate
- f ly d1or a business
e be h!mme late family
an ness with which himself/immediate family
is/ r a 'ad in b us i ne�s dealings
is are associated were en ealings with SMG; when contracts valued
o I tw indlesl
over $500.00 were entered into between Gindlesperger, members of his immediate family
and/or a business with which he/immediate family is/are associated and SMG absent an
open and Public process; when Gindlesperger took action as a Member/Chairman of the
Authop't Board to enter into a contract with Amphype, a business with which his son is
associated, for the purchase/installation of a scoreboard for the Arena; when
Gindles er%er, as Member/Chairman of the Authority Board, entered into a contract valued
over $T00., 0 with Amphype, a business with which his son is associated, for the
purchase/installation of a scoreboard for the Arena absent an open and public process; and
when he filed deficient Statement[s] of Financial Interests by failing to disclose his
governmental entity, occu �ation/p rofess ion, and all sources of direct/indirect income in
excess of $1,300.00 on Statements] of Financial Interests filed for the 2013 and 2014
calendar years, and failed to disclose all reportable office/directorship/employment and
fondles e'o'
18-018
aa
financial interest in an legal entities engaged in business for profit, on Statement[s] of
Financial Interests filed for the 2013, 2014, 2015, and 2016 calendar years.
11. FINDINGS:
Dean Gindlesperger (also referred to herein as "Respondent" "Respondent
Gindlesperger," and "Gindlesperger") served as a Member of the Cambria County
Arena Authority ("Authority") goard of Directors ("Board") from January 1, 2006, to
August 14, 2018.
a. Gindlesperger served as the Chairman of the Authority Board from at least
July 23, 2012, until August 14, 2018.
b. Gindlesoeraer resigned his position on the Authority Board effective August
14, 2018,
-
C. During his over twelve years of service on the Authority Board, Gindlesperger
received no compensation, as Authority Board Members are unpaid
volunteers.
d During his over twelve years on the Authority Board, neither the County nor
the Authority provided any formal Ethics Act training to Gindlesperger or his
colleagues on the Authority Board. Neither the County nor the Authority
availed itself of the free educational materials or in -person Ethics Act training
provided for by the Pennsylvania State Ethics Commission.
e. At the time Gindlesperger became Chairman of the Authority Board, the
Authority was in financial distress and heavily dependent on the provision of
public funds from the County in order to operate and pay daily operational
expenses for the Arena,
f. At the time Gindlesperger resigned from the Authority Board, the Authority
was financially self-sufficient with regard to the Arena being able to operate
and pay daily operational expenses without public financial support from the
County.
9 During the time Gindlesperger served as Chairman of the Authority Board,
the Authority/Authority Board employed a solicitor to provide legal advice and
guidance when requested or required.
2. The Authority Board is composed of seven voting Members and one non -voting
Member.
a. The seven voting Authority Board Members are appointed by the Cambria
County Commissioners.
b. The non -voting Member is appointed by the main tenant of 1 st Summit Arena
at the Cambria County Arena (formerly known as the Cambria County
Arena).
C. Authority Board Members receive no compensation for their service.
3. The Authority Board is currently responsible for the guidance, support, and overall
oversight of 1 6t Summit Arena @ the Cambria County Arena.
a. Day-to-day operations and decision -making at the Arena are currently
performed- by a contracted privately -owned facilities management company.
Gindlesper-ger 18'-018
page ;3
1 The current contracted facilities management company is SMG.
4, The Authority holds one regularly scheduled legislative meeting on the fourth
Monday of each month.
a. The Authority does not hold workshop meetings.
b. The Authority holds special meetings as needed.
C. The Authority Solicitor typically attends Authority Board meetings.
5. Voting at Authority meetings occurs in group aye/nay fashion.
a. Objections or abstentions cast regarding votes taken are documented within
the meeting minutes.
b. Minutes generated forAuthority Board meetings are approved for accuracy at
subsequent meetings of the Authority Board.
c. Matters discussed during executive sessions at a meeting are not recorded in
the minutes.
6. [Three to four days prior to the legislative meeting, Authority Board Members receive
an email from the Authority Secretary with a draft version of the prior month's
meeting minutes and the upcoming meeting agenda for review.]
a. Additional documentation received includes Support documents distributed
during committee reports and/or SMG management reports presented at the
meeting.
7. The Arena currently maintains two separate accounts at 1 6t Summit Bank [(referred
to herein as Account Number I and Account Number 2)] in relation to Arena viability
and operations.
a. The Authority maintains complete control over Account Number 1.
Account Number 1 is a NOW checking account utilized for payment of
wages to Authority employees, capital improvements/purchases, and
debt reduction.
aa. Authority employees are limited to the Authority Secretary, the
Authority Solicitor, and the Authority Accountant.
b. SMG maintains complete control over Account Number 2.
1. Account Number 2 is utilized for Arena operational expenses such as
payment to/for utilities, entertainers, vendors, insurance, management
tees, etc.
8. Signature authority over Account Number 1 is maintained by the Authority Board
Chairman, Vice -Chairman, Secretary, and Treasurer.
a. Checks from Account Number 1 require the live signature of two authorized
signatories.
9. Signature authority over Account Number 2 is maintained by SMG's Senior Vice -
President of Business Development, as well as SMG's on -site General Manager,
Operations Director, and Finance Director.
Gindlesperger 18-018
Page 4
a. Checks from Account Number 2 require the live signatures of two authorized
signatories.
10. Bills/ex enses paid by SMG for Arena operations through the SMG-controlled
account Number 2) are not presented, reviewed, approved, or otherwise
ratified by the Authority Board.
a. SMG maintains sole autonomy in relation to payment of Arena operational
expenses and can make such payments without Authority or Authority Board
approval.
11. Capital improvements to be implemented at the Arena require presentation to, and
approval of, the Authority Board,
a. As a municipal entity, the Authority ' required to follow bidding mandates as
delineated by the &nnsylvaniaLi'unicipality Authorities Act ("Municipality
Authorities Act"), 53 Pa.C.S. § 5601 et seg.
b. In addition to bidding requirements, the Municipality Authorities Act states the
following concerning conflicts of interests:
(e) Conflict of interest. —No member of the authority or officer
or employee of the authority may directly or indirectly be a
party to or be interested in any contract or agreement with the
authority if the contract or agreement establishes liability
against or indebtedness of the authority. Any contract or
agreement made in violation of this subsection is void, and no
action may be maintained on the agreement against the
authority.
53 Pa.C,S, § 5614(e).
12. The Authority currently receives funding allocations from Cambria County in the total
amount of $180, OK 00 annually via quarterly payments of $45,000.00 to assist with
Authority/Arena financial obligations.
a. Funds allocated to the Authority are deposited directly into Account No. 1 via
electronic fund transfer.
13. The Authority maintains Bylaws by which the Authority is to operate, conduct
business, etc.
a. The Authority Bylaws were most recently approved, for amendment at the
Authority Board's November 23, 2015, regular meeting.
1 The amended Bylaws were approved via a unanimous 6-0 vote, with
one Authority Board Member absent.
aa. Gindlesperger was present and participated in the unanimous
vote.
b. Gindlesperger signed the amended Bylaws in his capacity as Chairman of
the Authority Board on Der -ember 21, 2015.
14. Among other Articles s ecified within the Bylaws enacted on December 21, 2015,
Article XI II, Conflicts oMterest, reads, in part, as follows:
Gindleweraer, 18-018
Page 5
a. Section 1: Disclosure of Potential Conflicts of Interest, Each member/director,
prior to taking seat on the Roar d and all current members/directors as soon
as practicalafter adoption of the By -Laws, is to submit in writing to the Board
Chairperson and Vice -Chairperson a list of all businesses or other
organizations (absent the Authority or its subsidiaries) of which he is an
officer, director, trustee, member, owner, either as a sole proprietor or
partner, shareholder with a five percent or greater interest in aloutstanding
voting shares, employee and/or agent, with which the Authority has or might
reasonably in the future enter into a relationship or a transaction in which the
member/director would have conflicting interests.
1. Each written statement is to be resubmitted with any required changes
each year.
2. The Chairperson is to become familiar with the statements filed in
order to guide conduct should a conflict arise with the Vice -
Chairperson to be familiar with the Chairperson's statements,
b. Section 2: Withdrawal of Director in Event of Actual Conflict: At such time as
any matter comes before the oar d which may give rise to a conflict of
interest, the affected member/director is to make the potential conflict known,
whether disclosed by written statement or not, and after answering any
questions, withdraw from the meeting for as long as the matter is discussed.
1 If the matter is brought to a vote, the affected member/director is
prohibited from voting.
Z If the affected member/director does not voluntarily withdrawal [sic],
the Chairperson has the authority to and is to require that the affected
member/director remove himself from the room during both the
discussion and vote on the matter.
3. If the conflict affects the Chairperson, the Vice -Chairperson has the
authority as previously noted and is to preside over the meeting for
the duration of discussion and action on the matter,
c. Section 4: Compensation of Directors for Service Performed: Nothing
contained in this section sha prec u e any Director from receiving
compensation from the Authority for services actually rendered, other than
services rendered in the capacity as a Director, or for expenses incurred for
servicing the Authority. Services must be requested by the Authority, and
written documentation that such services were performed be submitted to the
Authority.
THE FOLLOWING FINDINGS RELATE TO THE HISTORY OF THE CAMBRIA COUNTY
ARENA, INC.; THE AUTHORITY; THE ARENA; AND THE CONTRACT TO OPERATE
THE ARENA.
15. The Arena of Greater Johnstown was originally created on April 9, 1943, under
Entity Number 53737, via application for registration of a proposed corporate name
filing through the Pennsylvania Department of State.
The Arena of Greater Johnstown (hereafter "Corporation") filed and obtained
status as a non-profit corporation through the Cambria County Court of
Common Pleas on May 10, 1943.
The Corporation's name was changed to the Arena of Cambria County, Inc.,
effective April 15, 1946, and later changed to Cambria County Arena, Inc.,
Gindlespair gleir 18,-018
Page 6
effective June 30, 1947.
C. The Corporation ultimately filed Articles of Dissolution with the Pennsylvania
Department of State on June 25, 2001.
1 The Pennsylvania Department of State currently identifies the
Corporation s status as "Withdrawn — CONSOLIDATED INACTIVE,"
16. The Corporation was created to honor veterans of the Greater Johnstown area via
establishment or erection of a suitable memorial.
a. A determination was made to erect an arena as a venue for sporting events
and other activities while serving as a living memorial to veterans in the
Cambria County area.
1 The arena is currently known as 1s` Summit Arena @ the Cambria
County Arena (hereafter "Arena").
2. Prior to its current name, the Arena was most recently known as the
Cambria County Arena.
17. Individuals associated with the Corporation solicited contributions from community
members, businesses, etc., to fund the memorial.
a. Contributors to the project became shareholders in the Corporation.
Corporation shareholders elected a Board of Directors to be
responsible for management and operation of the Arena.
18. The County Commissioners created the Authority. via Resolution presented and
approved at the December 5, 1949, regular Commissioners meeting.
a. The County Commissioners created the Authority pursuant to the power
granted through the Municipality Authorities Act.
b. The Authority was incorporated with the Pennsylvania Department of State,
Corporation Bureau, as a Municipal Authority under Entity Number 53736 on
December 21, 1949.
19. Rights to the property on which the Arena was constructed were held by the City of
Johnstown (hereafter "City"), the Corporation, and/or the Authority individually
and/or jointly from at least August 1950 until October 20, 1982,
a. The City, the Corporation, and the Authority deeded the Arena and its
accompanying property to the County effective August 20, 1982.
20. The Authority was informally discontinued in the 1980's but was re -activated in or
about October 1996.
a. The Authority was re -activated in order to provide oversight to the Arena on
an ongoing basis.
21. Although the Authority had been formed for the purpose of acquiring,holding,
constructing, improving, maintaining, operating, and owning or leasing he Arena,
the Arena was managed and operated the Corporation from at least October
1982 until or about June 2001.
a. The Corporation and the County maintained an agreement which specified,
Gindlespeger r, 18-018
Page 7
in part, the following:
The Corporation was to act as the manager for the Arena and the
agent for the County;
aa. The Corporation was to report to the County Commissioners
regarding all Arena matters,
2. The Corporation was responsible for the daily management and
operation of the Arena building with the full right and responsibility of:
aa. Maintenance of sufficient staff and personnel to operate the
building as a public arena;
bb. Scheduling all events and determining the use of the building
including authorization to enter into any and all contracts and to
set fees and schedules for costs of the Arena and its facilities;
CC. Hiring and firing all employees and personnel;
dd. Sale of concession items, advertising, and other items in the
Arena which arise from use of the building; and
ee. Capital improvements to the Arena subject to final
determination by the County; and
3. The Corporation was to revise its internal structure in order for the
responsibilities outlined to be completed by an operating committee
appointed by the Corporation Board of Directors.
lb. The agreement was not formalized in writing until July 25, 198&
C. The agreement was amended and again formalized in writing effective March
25, 1999.
22. As a result of the County questioning the Corporation's management of the daily
operations of the Arena, the County terminated its Agreement with the Corporation
and executed an Agreement directly with the Authority regarding the Arena.
a. The County Commissioners approved the Agreement between the County
and the Authority at the July 3r, 2009, regularly scheduled Commissioner
meeting.
The Authority had taken over daily operations and overall oversight of
the Arena in or about June 2001.
23. The Jul 31, 2009, Agreement between the County and the Authority authorized the
Authority to:
a. Enter into a County -approved third -party contracted management
Agreement;
b. Provide administrative policy and fiscal oversight to the contracted
management entity of the Arena;
C. Exert responsibility for any and all capital improvements to the Arena subject
to final determination by the County; and
d. Act as the agent for the County and report to the County Commissioners
regarding all Arena matters.
24. In addition to the approval of the Agreement with the Authority at the July 31, 2009,
meeting, the County Commissioners also approved the execution of an A reement
between the Authority and SMG regarding management and operation of CArena.
a. SMG is a private company which provides operational and management
services to stadiums, arenas, convention and conference centers, and other
like venues throughout the nation.
1. SMG's activities include a full range of facility management,
operations, marketing, and event booking services.
2. SMG also offers/provides pre -development, pre -opening, and
operations consulting services.
25. The Authority entered into an initial Agreement/contract with SMG dated August 5,
2009, for SMG to provide management services, including operations and marketing
foir the Arenia.
26, The initial Agreement between the Authority and SMG set forth, in part, the following
in relation to SMG's management/operation of the Arena:
a. An initial term from August 15, 2009, through June 30, 2014, with an
automatic extension of five years, unless either party provided written notice
to the other of its intent not to renew at least 180 days prior to expiration;
b. SMG's compensation/management fees and additional incentives over the
term of the Agreement;
C. SMG's responsibility to establish and maintain one or more operating
payroll, and other bank accounts for the promotion, operation, ana
management of the Arena in the name of the Authority;
1. SMG was to act as the agent over the Arena account(s);
2. SMG representatives were to maintain signature authority over the
Arena account(s);
3. SMG was to deposit all operating revenue for the Arena into the Arena
account(s);
4. SMG was to pay all Arena operating expenses from the Arena
account(s) in e ordinary course of business as the agent for the
Authority;
d. SMG's exclusion of responsibilities associated with capital improvements to
the Arena;
1 All capital improvement responsibilities for the Arena continued to rest
with the Authority;
2. Expenses associated with capital improvements were not considered
operational expenses;
e. SMG's responsibility to provide the Authority a monthly written report
identifying the Arena's anticipated activities and financial condition for the
Gindles,DeEger, 18-018
P —ag-e�_
upcoming month and reporting on the prior month's activities and finances;
f. SMG's responsibilities regarding the selection, training, and employment of
the number of employees SMG deemed necessary, including assignment of
a competent General Manager to the Arena;
1 SMG was to consult with the Authority with respect to qualifications of
its proposed General Manager;
9 SMG's right and authority to subcontract any Portion of any required
management and operational services when SMG believed it to be in the
best financial interest of the Authority with SMG responsible for supervision
of all such contractors;
1 SMG's right and authority regarding subcontracting was subject to
prior written approval of the Authority in relation to the subcontracting;
and
h, SMG's exclusive authority over the day-to-day operation of the Arena and all
activities therein.
27. The initial Agreement between the Authority and SMG also identified specific
examples of rights retained by the Authority under the Agreement.
a. Included under rights retained by the Authority, among others, were:
The right to approve any license, agreement, or other contract which
had a term extending beyond the term of the Agreement;
2. The right to enter all portions of the Arena to install, repair, and
otherwise handle any equipment in, on, or about the Arena;
3. The right to elect whether or not to renew the term of the Management
Agreement for the Arena beyond the Management Term; an�
4. The right to approve the annual operating budgets, annual cash flow
budgets, and annual plans for the Arena prepared by SMG for each
fiscal year including planned operating maintenance activities,
requested capital improvements and capital equipment purchases,
and anticipated events, advertising, and promotional activities.
28. [At the June 25, 2012, regular meetin of the Authority Board, Gindlesperger
appointed a Contract Review Committee?consisting of himself and Authority Board
Members Marty Kuhar and George Arcurio.
a. Members of the Authority Contract Review Committee began meeting as of
at least March 2013 to review the existing SMG contract, as well as any new
SMG contracts proposed for consideration.
29. During the approximate time period of March 2013 throughJune 2014, multiple
meetings were held between the Contract Review committee and SMG
representatives regarding negotiation of a new contract for Arena management
services.
a. Gindlesperger was present and participated in multiple meetings relating to
contract negotiations between the Authority and SMG.
b. Gindlesperger consistently presented information/updates regarding SMG
Gindiesiperger, 18-018
Page 10
contract negotiations to the Authority Board in public sessions as well as
executive sessions.
C. Gindlesperger was the primary Authority representative involved in the
contract discussions/negotiations.
30, [As a result of the meetings held between March 2013 and June 2014,1 an
amendment to the August 5, 2009, Management Agreement was executed on July
10, 2014, by the Authority, the County, and SMG.
a. The amendment [included], in part, the following:
1 Establishment of compensation payable to SMG at an annual fixed
fee paid via monthly installments o $7,000,00 plus CPI Adjustment
overhe term;
2. Acknowledgement that the Authority was in arrears to SMG in the
amount of $445,844.00 in management fees and other amounts due
for the time period of July 1, 2011, through June 30, 2014;
aa. The balance due was to be paid via one lump sum payment of
$150,000.00 from the Count to SMG and ten annual
payments of $21,863.00 from the Authority by or before May
1st commencing on May 1, 2015;
3. Establishment of a capital investment to be made by SMG in the
amount of $135,000.00 for payment of the Arena's entire unpaid
Johnstown amusement tax, funding of OSHA regulatory compliance
programs, and other improvements, which capital investment
substantivel reduced the amount of money owed by the Arena to
SMG by $U5,000; and
4. Extension of SMG's management term to begin on July 1, 2014, and
continue through June 30, 2019.
31, The amendment was signed on July 10 2014 by the three Count Commissioners
on behalf of the County, John Burns ief'Financial Officer -Si on behalf of
SMG, and Gindlesperger on behalf of t�C�e Authority,
a. The County Commissioners formally approved the amendment via
unanimous vote at the July 10, 2014, Commissioners meeting.
b. The Authority Board formally, approved the amendment via unanimous vote
at the July 28, 2014, Authority Board meeting.
1 Gindlesperger was present at the July 28, 2014, Authority Board
meeting and voted in favor of approving the first amendment to the
SMG contract.
32. Representatives of the Authority Contract Review Committee began meeting at least
as early as January 2017 to review the existing SMG contract, as well as any new
SMG contracts proposed for consideration.
a, The Authority Contract Review Committee was composed of Gindlesperger,
Arcurio, and Kuhar.
33. During the approximate time period of January 2017 through May 2017, multiple
meetings were held between the members of the Contract Review Committee and
Gindlesvercier, 18-018
2ge 11
SMG representatives regarding negotiation of a new contract for Arena
management services.
a, Gindlesperger, along with other members of the Contract Review Committee,
was present and participated in multiple meetings in relation to contract
negotiations between the Authority and SMG.
b. Gindlesperger and other members of the Contract Review Committee
consistently presented inform atio n/u pd ates regarding SMG contract
negotiations to the Authority Board in executive session.
C. Gindlesperger was one of the primary Authority representatives involved in
the contract discussions/negotiations.
d. Representatives attending the meetings on behalf of SMG included SMG
General Manager Stephen St. John (8t. John") and SMG Regional Vice -
President Robert Cavaliers.
34, [As a result of the meetings held between January 2017 and May 2017, a second
amendment to the originalAugust 5, 2009, Management Agreement was executed
on July 1, 2017, by the Authority, the County, and SMG.
a. The amendment documented, in part, the following:
1 Establishment of compensation payable to SMG at an annual fixed
fee paid via monthly installments of $8,000.00 plus CPI Adjustment
over he term;
2. Acknowledgement, pursuant to Section 3 ii) of the First Amendment,
of the existence of a remaining amount and unpaid to SMG for
previously unpaid management fees in the amount of $174,094.00
and agreement of all parties that the remaining unpaid installment
payments were due immediately for payment9;
3. Establishment of an additional capital investment to be made by SMG
in the amount of $175,000.00 to be used at the Authority's discretion,
which capital investment substantively reducing the amount of money
owed by the Arena to SMG by $175,000; and
4. Extension of SMG's management term to begin on July 1, 2017, and
continue through June 30, 2022.
35. The amendment was signed on July 1 2017 by County Commissioner Tom
Chernisky on behalf of the County, Burns �Chief Itinancial 0 icer-SMG) on behalf of
SMG, and Gindlesperger on behalf of the Authority.
a. The Authority Board formally approved the amendment via unanimous vote
at the May 22, 2017, Authority Woard meeting.
Gindlesperger was present at the May 22, 2017, Authority Board
meeting and voted in favor of approving the second amendment to the
SMG contract.
b. The County Commissioners formally approved the amendment via
unanimous vote at the July 12, 2017, Commissioners meeting.
36. At the time the 2017 amendment was executed, SMG had turned the financial
situation of the Arena around so that Arena operations and management were fully
Gindlesi)ercier, 18-018
Page 12
funded without taxpayer money from the County.
37. SMG's overall operational budget for the Arena in 2016 and 2017 exceeded
$1'10001'1000.
THE FOLLOWING FINDINGS RELATE TO THE SECURING OF FUNDS FOR
RENOVATIONS TO THE ARENA THE CITY'S AWARD OF THE TITLE OF
HOCKEYVILLE IN 2015, AND T[IE EFFECT OF THE AWARD ON ARENA
RENOVATIONS.
38. The Authority Board was cognizant of the need to renovate the existing floor and
accompanying ice refrigeration system at the Arena for a significant period of time.
a. Discussion at Authority Board meetings regarding the replacement/
renovation of the Arena floor date back to at least December 17, 2012,
b. Discussion regarding the replacement/renovations included the possibility of
obtaining grants to assist in funding the project.
39. On March 21, 2013, James Vizzini, P.E., Managing Partner of CJL Engineering,
submitted Proposal P1 3-0313-J to John Dubnansky, County Grants Facilitator, to
engineer the rink floor rebuild at the Arena.
a. Vizzini's proposal included an estimate for design work to begin in the
fall/early winter of 2013 with construction to commence in spring 14.
40, On March 27, 2013, Dubnansky submitted an application for a $300,000,00 rant
through the Department of Conservation and Natural Resources ("DCNR") CTP2-
Community Recreation and Conservation Program in relation to renovations needed
,at the Arena.
a. The County was identified as the grant applicant.
President Commissioner Doug Lengenfelder signed the Grant
Agreement signature page on March 14, 2013, on behalf of the
County.
b. The grant budget identified a total project cost of $600,000.00 with the
$300,000.00 grant request to be matched by $300,000.00 in local cash/non-
cash match.
41 Although the contract for the DCNR grant 4,Ageement/Project No. BRC-PRD-1 9-65)
was not fully executed until August 4, 201 e County was informed of its receipt of
the award via correspondence from DCNR dated December 5, 2013.
a. The rant agreement period relating to Project No. BRC-PRD-19-65 was
noted g to begin on January 1, 2014, and end on December 31, 2017.
42, On January 16, 2014, Dubnansky submitted an additional application for a
$300,000.00 arant through the Department of Community and Economic
Development CDCED") Keystone Communities/Community Improvement Program
in relation to renovations needed at the Arena.
a. The County was identified as the grant applicant under Application No.
201401167047.
The DCED grant application was submitted after the County had been
informed of its award of the DCNR grant.
bindles e, �ie,, 18-018
C'
a
age
b. The project budget identified a total project cost of $605,000.00 with the
$300,000.00 grant re uest from DCED to be matched by $300,000,00 in
grant funds from DCNIand $5,000.00 from the County General Fund.
C. DCED approved the County's grant application on February 27, 2014.
43, AlthouTh the DCED grant was approved on February 27, 2014, the contract for the
grant ( ontract Number C000057258) was not fully executed until May 21, 2014.
a. Lengenfelder and County Commissioner Mark Wissinger signed the grant
contract on behalf of the County on May 8, 2014.
44, The DCED grant documented an initial effective date period to begin on July 1,
2013, and end on June 30, 2016.
a. The effective period was later extended until June 30, 2017, through an
amendment to the contract.
45. Although CJL's proposal estimated construction to begin in spring 2014, the project
was ultimately postponed for completion until the 2015 calendar year.
a. Factors influencing the delay of the project included the period of time
between grant approval and full execution, existing events scheduled at the
Arena for 2014, and the upcoming hockey season for the Johnstown
Tomahawks.
1. The Arena was to be closed to the public during the project.
46. In association with ongoing preparation for the project, the County entered into an
Agreement dated December 19, 2014, with the Cambria County Redevelopment
Authority ("Redevelopment Authority") for the administration, management, and
operation of the granFprograms and construction of the project.
a, The Agreement between the County and the Redevelopment Authority
identified Redevelopment Authority responsibilities, in part, as follows:
Administration, operation, and management of all expenditures, rant
programs, and grant activities as outlined in the contracts with DTNR
and DCED;
2. Performance and/or provision of all planning, engineering,
environmental review, legal, permitting, bidding, construction,
hazardous material abatement and removal, inspection and
monitoring, wage compliance, auditing and accounting, consulting and
administrative services as may be required and as may be necessary
and incidental to the fulfilment of program activities;
3. Payment of costs incurred through the administration and construction
of the program activities;
aa. The County remained responsible for transfer of Program
Grant Funds to the Redevelopment Authority for payment of
the costs; and
4. Care and maintenance of the Arena in accordance with the Grant
Programs.
Gindles Pjai d' e, u, 18-018
a�age
b. Lengenfelder signed the Agreement on behalf of the County.
C. Ronald Johnson, Redevelopment Authority Vice -Chairman, signed the
Agreement on behalf of the Kdevelopment Authority.
47. The Agreement between the County and the Redevelopment Authority was formally
ratified by the County Commissioners and the Redevelopment Authority Board at
their December 8, 2014, and January 15, 2015, regular meetings respectively.
a. At the January 15, 2015, regular meeting, the Redevelopment Authority
into
Board also ratified entering to an Agreement with CJL Engineering in the
amount of $40,000.00 for t� e design and construction of the Arena's Ice Rink
Replacement Project.
PLJ Engineering had developed the initial bid set documents for site
improvements/ice rink replacement at the Arena as of May 4, 2015.
aa. Bid set documents are equivalent to bid requirement
packages/construction documents which incorporate both
bidding and tech nical/construction specifications.
48. The Authority Board continued to discuss and plan for the renovation of the Arena
floor into spring 2015 while at the same time attempting to develop support for
Johnstown to compete in a contest for award of the title of Hockeyville USA 2015."
a. Hockeyville USA is a contest in which communities nominate their hockey
arena for the opportunity to host a National Hockey League pre -season game
and to receive $150,000.00 to be used for Arena upgrades.
Hockeyville is sponsored by Kraft Foods, the National Hockey
League, and the National Hockey League Players association.
2. Hockeyville was first presented in the United States in 2015.
49, The Authority Board began discussions in about January 2015 regarding efforts to
promote "Hockeyville" and gain community support for the Arena to compete in the
contest.
a Johnstown was ultimately selected and announced as the winner of the
"2015 Hockeyville USA" contest on May 2, 2015.
50. At its May 18, 2015,regular meeting, the Authority Board discussed the topic of
improvements/renovations
delaying the Arena and obtaining extensions on the
grants obtained as a result of winning the "Hockeyville" contest.
a. The Authority Board formally delayed the Arena improvements/rink
replacement r *ect until the summer of 2016 via unanimous roll call vote at
its May 18, 2M�, regular meetingdue to the National Hockey League pre-
season game to be played at the Arena in association with winning the
"Hockeyville" contest.
Multiple upgrades to the Arena were required to bring the facility up to
National Hockey League Standards.
2. Concern existed that the planned Arena improvements/renovations
might not be completed in time for the National Hockey League pre-
season game scheduled for September 29, 2015.
Gin6esverqer, 18-018
age 15
51. Progress regarding the commencement of the Arena improvement/rink replacement
project began again by March 2016.
The Redevelopment Authority advertised an invitation to bid in the Tribune -
Democrat on Cch 5, March 9, and March 14, 2016, regarding the Arena
improvement/rink replacement project.
b. Bids for the project were to be received at the Redevelopment Authority
office by 11:15 a,m, on April 7, 2016, for opening at 11,30 a.m. that day.
52. The invitation to bid documented the site improvement activities as involvingthe
I' removal of the existingrink slab, c , an
ice cooling piping, and associated controls, the
installation of,,: completely new ice rink with new ice slab cooling piping, hot
water sub -soil piping, and associated controls.
a. The construction period associated with the prot!ect bore a tentative start date
of June 20, 2016, and a tentative completion date of September 20, 2016.
53. The bid package developed for the Arena project (Project No. 15-0008) included a
table of contents for technical specifications regarding general requirements,
mechanical specifications, and electrical specifications.
a. Included within the mechanical specifications portion was Section 230511 --
Restoration and Retrofit — HVAC.
54. Mechanical Division, Section 230511 — Restoration and Retrofit — HVAC, identified
demolition and salvage specifications under Part 1, General, Sub -part 1.8.
a. Sub -part 1.8, Item J specified that, to the greatest extent possible, the
existing glycol solution was to be removed from the sub -soil heating system
piping prior to start of the ice rink floor demolition.
Glycol solutions in ice rinks are routinely composed of glycol and
water at a 40:60 percent ratio which serves as a secondary
refrigerant.
b. Sub part-1.8,ltem K specified that the contractor was to remove and dispose
of the I col solution with the material to be moved in trucks to an appropriate
licensed facility.
55. On April 4, 2016, CJL En ineering generated Addendum/Bulletin #1 to provide
I clarification of various faceys of the existing bid package developed for the Arena
project.
a. Clarification No. 3 on the Addend um/Bulletin specified the following.
The rink contractor was to provide a supervisor to assist the owner
with glycol removal and to assure the piping system was completely
drained before cutting the floor.
aa. The bid package identified the Redevelopment Authority as the
owner.
2. The Redevelopment Authority (owner} was responsible for glycol
storage and reuse including filtering.
3. The contractor was responsible for inserting and filling prior to start
up.
Gindles er, er, 18-018
Nge
b. Clarification No, 11 on the Addend um/Bulletin deleted Section 230511 — 1.8
Items J and K in their entirety.
The solution in the system was to be removed and stored by
the Redevelopment Authority (owner),
2. No glycol removal, storage, or disposal was to be included in the
contract.
C. The bid opening date was extended to April 14, 2016, in order to provide
contractors an opportunity to review the Addendum/Bulletin and bid
accordingly.
56. Due to the deletion of the glycol removal/disposal portion from the project contract, a
separate, individual contract the Redevelo mentAuthority and 32 Degrees,
LLC, dated April 9,
2015, was re -visited regarding glycol removal/storage/etc.
services to be performed during the Arena renovations.
a. A contract between Bruce Graham, owner of 32 Degrees, LLC (also referred
to herein as "32 Degrees") had been negotiated in 2015 regarding services to
be performed in association with glycol removal, storage, and [reinstallation]
as associated with the Arena project.
1. The Arena project was initially planned for completion in 2015 prior to
Johnstown s award of "Hockeyville" that year.
57. On March 23, 2016, St. John, who as General Manager ran the Arena for SMG
starting in December 2015 emailed Graham regarding Graham's interest in
removing, storing, and re -installing the glycol in relation to the Arena renovations.
a. St. John noted that he previously had seen a quote from Graham in relation
to the glycol.
b. Graham agreed to honor the terms of the original quote submitted in 2015.
58. The contract between 32 Degrees and the Redevelopment Authority addressed,
among other subjects, the scope of work to be performed by 32 Degrees in relation
to the Arena project.
a. Included within the scope of work was the removal, storage, and assistance
in the re -loading reinstallation of glycol to the refurbished system.
The term "storage" was not specifically delineated/defined within the
contract.
59. Tom Grenell was employed as SMG's General Manager of the Arena at the time
that the 2015 quote from 32 Degrees was initially Submitted to the Redevelopment
Authority.
a. Discussions between Graham and Grenell resulted in the understandingthat
Graham was to place (i.e. store) the glycol solution in containers, with the
containers to be placed in the Arena concourse until re -introduced into the
renovated system.
1. 32 Degrees does not own or otherwise maintain locations for storage
of the containers which were used to contain the Arena's glycol
solution.
Gindlesperger, 18-018
Page 17
60. Graham began removal of the glycol solution from the existing system on or about
May 9, 2016, and completed the removal on or about May 16, 2016.
a. The removal and containerization of the glycol solution required the use of 19
- 20 storage containers.
1. Each storage container measured 40" x 40" x 40".
b. The containers were initially placed in the Arena concourse for storage
purposes.
61. St. John subsequently approached Graham on -site at the Arena and informed
Graham that the containers needed to be moved to an off -site location.
a. St, John asserted that events were ongoing at the time and the containers
created obstacles for Arena patrons and contractors alike.
b. St. John asserted that off -site storage of the containers was Graham's
responsibility.
1. Graham emphasized that his responsibility was limited to ensuring
that the glycol solution was safely contained.
2. Graham explained the pre-existing understanding that the containers
were to be stored in the Arena's concourse.
aa. St John did not begin as the on -site SIVIG General Manager
until December 201-5.
3. Graham declined responsibility for off -site stora8e of the containers
per the understanding reachedwith Grenell in 2015.
4. Gindlesperger was not involved in the discussions involving St. John
and Graham.
62. In an effort to clear the Arena concourse, Graham and various SMG employees
moved the glycol containers, at St. John's direction, from the Arena concourse into
an area of the Arena known as the "Party Pit."
a. The "Party Pit" is a section of the Arena consisting of a stage/platform instead
of seating.
b. Gindlesperger was not involved in the discussions involving St. John and
Graham regarding moving the containers to the Party Pit.
63. St. John was unable to locate any contractor and/or subcontractor working at the
Arena to take responsibility for and/or store the containers.
a. St. John indegndently made the decision to move the containers from the
Arena Party t to an area outside of the Arena building.
b. Gindlesperger was not involved in the decision to move the containers
outside.
64. Shortly after moving the containers outside of the building, St. John received
information that glycol is not to be stored in an area which is exposed to sunlight.
Gindlesperger, 18-018
Page 18
a. Ultra -violet rays present within sunlight can cause glycol to degrade.
65. St. John subsequently contacted and informed Gindles erger, as the Chairman of
the Authority Board, of the situation regarding the glycol and the need for a storage
location.
a. Gindlesperger, as the Authority Board Chairman, was St. John's primary
Authority contact.
b. St. John viewed the need to find storage for the glycol as an emergency.
C. The glycol had a value of between $80,000490,000 that would be absorbed
by the Authority if the removed glycol could not be reused.
66. St. John sought guidance from Gindles erger as an Authority Member for contacts
in the Greater Johnstown area at which the glycol containers could potentially be
stored.
a. As part of St. John's conversation with Gindlesperger, St. John expressed
concern over the potential cost of storage.
b. Gindlesperger, in response to St. John's question, offered the use of a
warehouse at 619 Elder Street Johnstown, PA ("619 Elder Street"), which
was owned by a business ("AFC") that he partially owned, to store the glycol
containers.
C. St. John did not seek any other storage space once Gindlesperger offered
use of 619 Elder Street.
67, Gindlesperger and St. John agreed to a fee of $1,200.00 er month for use of the
property/warehouse at 619 Elder Street as a storage location for the glycol,
a. Gindlesperger presented the $1,200.00 per month figure for consideration.
1. Use of AFS's forklift and flatbed truck to transport the glycol at no
additional cost was included within the $1,200.00 fee.
2. St. John took no independent measures at that time to research
storage rental costs in or about the Johnstown area.
3. In addition to the glycol, St. John wanted to store other Arena
equipment including two Zambonis at the warehouse.
b. No written contract was executed for the rental of the warehouse space.
C. St. John knew Gindlesperger through his service as an Authority Board
Member and Chairman, as well as Gindlesperger's presence on the Contract
Review Committee.
68. Gindlesperger is currently self-employed throughhis association with Allegheny
Electrical Service, Inc,; Alleghenield Services Holdings, U; and
Johnstown Electric Motor Service, LLC (a/k/a Allegheny Field Services).
a. Allegheny Mechanical & Electrical Service, Inc. ("AMES") is a Johnstown -
based corporation which provides electrical and mechanical products and
services to industrial and utility clients across the region.
AMES was incorporated through the Pennsylvania Department of
111910 r-114ONKON
11M
State on September 8, 1997, under Entity Number 2774051.
2. AMES maintains current corporate officers as detailed below:
0
AMES's operational address is 107 Station Street, Johnstown, PA,
15905.
aa. The deed for 107 Station Street, Johnstown, PA 1905,5
documents AMES as the property owner.
b. Allegheny Field Services Holdings, LLC ("AFS Holdings") is a holding
company formed for the purpose of owning and controlling Allegheny Field
Service & Consulting, LLC, and its assets.
AFS Holdings was organized as a limited liability com anythroughthe
Pennsylvania Department of State on November 2012, under
Entity Number 4147939.
2. The organizers and current interested parties of/in AFS Holdings are
detailed below:
Name Ownership
Percenta-pie
Andrew Stager 50%
Dean Gindlesperger 50%
3. AFS Holdings' business address is 617 Elder Street, Johnstown, PA,
15905,
aa. The deed for 617 Elder Street, Johnstown, PA 15905,
documents AFS Holdings as the property owner.
C. Johnstown Electric Motor Service, LLC, ("Johnstown Electric Motor Service")
is a Johnstown -based, independent third -party organization that. performs
electrical engineering, preventative maintenance, testing, and repair services
on various types of electrical equipment.
Johnstown Electric Motor Service was organized as a limited liability
company throuV the Pennsylvania Department of State on February
5, 2 (02, under Intity Number 3051421.
aa. Johnstown Electric Motor Service, LLC, has conducted
business under the name Allegheny,Field Service and
Consulting, LLC (a/k/a Allegheny Field Services) since
approximately August 2009.
Allegheny
Field Service & Consulting, LLC, was
organize through the Pennsylvania Department of
State on August-27, 2009, under entity No, 3902142.
2. The organizers and current interested parties of/in Johnstown Electric
Motor gervice/Allegheny Field Services are detailed below:
Gindlespe[ger, 18-018
Flage 2u
Name Ownership
Percentgge
Andrew Stager 51%
Dean Gindlesperger 49%
3. Johnstown Electric Motor Service's/Allegheny Field Service's
operational address is 629 Elder Street, Johnstown, PA 15902.
aa, The deed for 619 Elder Street and 629 Elder Street,
Johnstown, PA 15905, documents Johnstown Electric Motor
Service as the property owner.
% The warehouse at 619 Elder Street was not a source of income forAFS atthat tune.
a. At that time, the warehouse was being utilized for storage of equipment
owned by AFS.
b. Alleqheny Field Services does not offer the leasing of its propert0arehouse
at 69 Elder Street as a function of the business services whic it provides,
70. Using equipment provided by AFS at no additional cost, St. John transported the
glycol containers rom the Arena to 619 Elder Street at least four days prior to the
renovations beginning on June 20, 2016.
a. St. John informed Custer via email on June 16, 2016, that he had arranged
the transportation and storage of the glycol containers and questioned how to
address the storage fee to ensure it was funded through the project and not
the Arena operations account.
I St, John did not disclose to Custer that storage arrangements had
been made throwh Authority Chairman Gindlesperger for the use of
property that AFS owned.
2. Gindlesperger did not speak to Custer about the warehousing or how
it would be paid for.
b. Custer informed St. John via email that same day that the County
Redevelopment Authority would pay the costs of removal and storage.
C. St. John, using equipment provided by AFS at no additional cost, also
ultimately transported ice re -surfacers to the warehouse at 619 Elder
Street for storage while renovations to the Arena were ongoing.
71. Graham indicated in an interview with the Commission that the AFS warehouse was
an ideal location for storing the glycol because it was cool and dark.
72. The glycol containers remained in storage at 619 Elder Street from approximately
mid -June 2016 through approximately early/mid-September 2016 until the renovated
system was re -charged.
a. Graham re -introduced usable portions of the existing glycol solution and
supplemental newly purchased glycol into the codin%system on or about the
dates of September 6, 2016, to September 15, 201 .
The Arena re -opened on September 27, 2016.
73. Neither Gindlesperger nor St. John presented any information contemporaneously
Dandies e, 18-018
a.....ge .2..
to the Authority Board Members regarding the need for storage based on the 2015
discussions between Graham anef Grenell, the cause for concern, or the use of
property owned by AFS to house the glycol.
a. The Authority Board held reg ularly scheduled meetings on June 27, 2016,
July 25, 2016, and August 22, 2016, during which the glycol was at all times
stored at 619 Elder Street.
Gindlespperger and St. John were present at the June, July, and
August 2016 Authority Board meetings.
2. Gindlesperger and St. John presented Chairman's reports and
General Manager's reports respectively at the June, July, and August
2016 Authority Board meetings.
aa. Neither Gindlesperger's nor St. John's monthly reports made
any reference to the glycol the need for its storage, or the
agreement made with AFS for its storage.
74. AFS submitted three separate invoices totaling $3,600.00 directly to the Arena at
326 Napoleon Street, Johnstown, PA 15901, for payment due in relation to the
rental of warehouse space at 619 Elder Street.
a. AFS was ultimately issued ppayyment from the Count Redevelopment
Authority via Check Number 4297, dated September 7, 2016, in the amount
of $3,600.00 responsive to the invoices submitted.
The County Redevelopment Authority issued payment to AFS in
accordance with the email thread dated June 16, 2016, between St.
John and Custer.
2. Payment of the $3,600.00 originated from $30,000.00 received by the
County Redevelopment Authority in grant administrative fees.
75. AFS maintains a business checking account with 1st Summit Bank [referred to
herein as Account Number 3] for operational purposes.
a. Account Number 3 was opened as a new, permanent checking account on
October 30, 2009.
b. Gindlesperger and Stager are the only authorized signatories on the account.
76, County Redevelopment Authority Check Number 4297 was deposited into AFS
Account Number 3 on September 14, 2016.
a. Check Number 4297 was endorsed via stamp documenting:
"Credited to the account of the within named payee in accordance with
payees instructions absence of endorsement guaranteed."
b. Check Number 4297 was included in a September 14, 2016, deposit of
multiple checks into Account Number 3 totaling $14,574.64.
77. The warehouse located at 619 Elder Street provided approximately 10,000-12,000
square feet of available storage space over the two floors of the structure.
a. The 19 — 20 glycol containers required a footprint of 361 square feet to 380
square feet for storage.
Gindlesper.ger 18-018
Page 22
1 The total minimum footprint for each container of glycol was
approximately 19 square feet (18.77 square feet rounded up).
aa. The 19 square foot area accounts for the 3' 4" x 3' 4"
dimensions of each container as well as calculations for 12" of
spacing on each side of each container.
78. After the usable glycol had been returned to the Arena, St. John sought to continue
the rental of warehouse space at 619 Elder Street.
a. St. John intended to use the space for storage of various Arena materials,
fixtures, equipment, etc.
79. The extra storage space available forArena materials and equipment through use of
the warehouse at 619 Elder Street was according to St. John a convenience to the
Arena/SM1G staff.
80. St. John and Gindlesperger discussed the Arena continuing to rent warehouse
space at 619 Elder Street on a month -to -month basis.
a. Gindlesperger informed Stager via telephone that they may have an
opportunity to rent 619 Elder Street to the Arena for storage.
b. Stager informed Gindlesperger that he was in favor of doing such as the
warehouse at 619 Elder Street was not being actively used Nthat time.
81. St. John informed Gindlesperger during the negotiation that the Arena could not
afford the previously established rental rate of $1,200.00 per month,
a. St. John and Gindlesperger ultimately negotiated/agreed upon a rate of
$600,00 per month for the Arena's rental of storage space at 619 Elder
Street.
1 St. John did not independently research or seek out additional rental
rates for storage of Arena materials and equipment.
b. The property at 619 Elder Street was not a source of income for AFS at that
time.
82. The lease agreement between AFS and St. John for use of the warehouse space at
619 Elder Street was effective as of September 2016.
a. No written contract existed regarding the lease agreement.
b. As an operational expense for the Arena, SMG had authority to enter into the
lease with AFS without Authority Board authorization.
83. No information regarding the lease agreement between AFS and St. John (on behalf
of the Arena) was shared with the Tihority Board as a whole at any Authority Board
meetings held from September 26, 2016, through June 26, 2017.
a, The Authority Board held a minimum of eight meetings during the time frame
of September 26, 2016, through June 26, 2017.
1. Both Gindlesperger and St. John were present at all eight Authority
Board meetings.
2. Gindlesperger and St. John presented Chairman's reports and
Generarmanager's reports respectively at each of the eight Authority
Board meetings.
aa. Neither Gindlesperger's nor St. John's monthly reports made
any reference to the lease agreement made between AFS and
St. John for storage space at 619 Elder Street.
84. AFS maintained a business relationship with the Arena regarding the Arena's rental
of storage space at 619 Elder Street at all times during which the Authority (through
its Contract Review Committee), SMG, and the County were actively negotiatin
and ultimately approved a second amendment to the existing SMG contract, whicE
Amendment saved the Authority, at least, $175,000.
a. The second amendment to the SMG contract was negotiated from January
2017 through June 2017.
Gindlesperger and St. John were active participants in the
negotiations for the Authority and SMG respectively.
b. The second amendment to the SMG contract was discussed and
subse uentl�%roved by the Authority Board via unanimous vote at the
May 2T 201,Authority Board meeting.
Gindlesperger was present at the May 22, 2017, meeting.
2. Gindlesperger participated in the discussion of the amendment and
subsequently voted in favor of the amendment.
85. The subject of leasing of storage space at 619 Elder Street was not disclosed to the
Authority Board as a whole until the Authority's July 24, 2017, meeting.
a. Gindlesperger presented information about the leasing to the Authority Board
during
the "Old Business" portion of the meeting and purported, in part, the
fol10 wi ng:
1 St. John had approached him months ago regarding the need for
warehouse space and questioned if Gindlesperger knew of any.
2. Gindlesperger had informed St. John that AFS had a warehouse.
aa. Gindlesperger added that the warehouse had been full but AFS
had moved its contents out.
3. St. John had the space and never really did anything with it but was
putting more and more items in the warehouse.
4. St. John ran it through operations.
5. Due to the fact that it was AFS's warehouse, Gindlesperger would feel
better if it went through "here" and everyone knew what was occurring
with it.
6. St. John had access to aTproximately 12000 square feet overthe two
floors of the building an also had use o?AFS's trucks and forklifts to
load, unload, and transport.
7. AFS was charging $600.00 per month and St. John was welcome to
Gindlespergeir, 18-018
Fage 24
move the items out whenever he wanted.
8. No contract existed because he wanted St. John to have the ability to
go elsewhere if St. John found something closer or better.
9. Gindlesperger did not know if it should be voted on and approved by
the Authority Board or if it was an operations issue.
% Gindlesperger then asked the Authority Solicitor what they should do
and the Solicitor advised St. John to obtain other warehousing quotes
for comparison and as long as Gindlesperger was the lowest
reasonable price it was fine.
aa. The Solicitor did not advise that the contract might be void
under 53 Pa.C.S. § 5614.
b. Gindlesperger made no express disclosure to the Authority Board of the
agreement entered into with St. John to store the glycol solution for the Arena
during the 2016 renovations.
1 Gindles erger did not disclose AFS's receipt of $3,600.00 from the
Redevelopment Authority for storing the glycol solution at 619 Elder
Street in June, July, and August 2016.
C. Gindlesperger did not remove himself from the discussion or turn control of
the meetingover to the Authori Board Vice -Chairman after the disclosure
as required the Authority ByCaws in effect at that time regarding conflicts
of interest.
d. Nothing in the meeting minutes or other information related to the meeting
indicates that the Authority's Solicitor advised Gindlesperger that he should
remove himself from the discussion or turn control of the meeting over to the
Authority Board Vice -Chairman.
e. The Authority Solicitor did not advise the Authority Board that the
warehousing relationship should be terminated.
f. Gindlesper er maintains that he believed his disclosure of his interest in the
warehouse lease agreement negated any future conflict of interest,
86. Gindlesperger made the disclosure to the Authority Board approximately four
months after the Authority had been presented with a Right -To -Know request dated
March 24, 2017, from Our Town reporter, Bruce Siwy.
a. Siwy's Right -To -Know request called for the production of various
documents, including, in part, contract or agreements in effect between 2015
and present between the Authority and third -party company/companies for
use of storage space.
b. Siwy further identified in an October 31, 2017, email to multiple Authority
representatives, including Gindlesperger, a request for multiple documents,
including, in part, records of payment made to Allegheny FielTService and/or
Gindlesperger by either the Authority or SMG from 2012 to the present.
87. Authority Solicitor Jim Walsh, in response to a question from Gindlesperger,
subsequently recommended at the July 24, 2017, Authority Board meeting that St.
John contact two or three other warehouses and shop the price for the same terms
and conditions received from Gindlesperger to ensure that Gindlesperger's was the
lowest reasonable price. Walsh indicated, if the price was the lowest, "it was fine."
a. Board Member George Arcurio subsequently motioned, seconded by Board
Member Tom Callihan, that St. John obtain at least three quotes for storage
of Arena materials with the same terms and conditions as currently held.
The motion passed via 4-0-1 vote with two Board Members absent.
aa. Gindlesperger abstained from the vote.
88. At the Authority Board's October 23, 2017, regular meeting, St. John presented
information to the Authority Board regarding warehouse �asing/pricing in the
Johnstown area.
a. Although directed to obtain two to three quotes for comparative purposes, St.
John presented only one price quote to the Board for consideration but has
indicated in interviews that he obtained others,
1 St. John presented information regarding rental of 10,000 scl uare feet
of warehouse space based on an email string dated October 23,
2017,
between him and Jim Vasilko (owner of Johnstown
Construction) in which Vasilko asserted the following:
aa. Price ranges of $4.50-$5.75/sf plus common area maintenance
("CAM"), real estate tax, and insurance.
Typical CAM fees of $0.25-$0.60/sf.
Typical real estate tax of $0.70-$1.80/sf with the City of
Johnstown being the highest.
2. Insurance $0.15-$0.25/sf with the rate tripled forflood plain insurance.
89. Discussion ensued at the October 23, 2017, Authority Board meeting following St.
John's presentation of the comparison of prices between Gindlesperger's rate and
Vasilko s rate.
a. Arcurio and Board Member Martin Kuhar acknowledged that the monthly fee
for Gindlesperger's warehouse was significantly less than Vasilko's fee.
b. Gindlesperger was present in the Authority Board meeting room while the
discussion ensued.
C. Gindlesperger did not remove himself from the discussion or turn control of
the meeting over to the Authority Board Vice -Chairman for the discussion as
required per the Authority Bylaws in effect at that time regarding conflicts of
interest.
d. The Authority Solicitor did not advise Gindlesperger to remove himself from
the discussion or turn control of the meeting over to the Authority Board Vice -
Chairman.
90. While multiple Authority Board Members expressed support for continued use/lease
of Gindlesperger's warehouse, meeting minutes do not reflect that a specific vote
was ever conducted to formally approve use of Gindle%ergers warehouse at 619
Elder Street for storage of Arena materials at any monthly rate.
a. Arcurio stated at the meeting that he would make the motion and that
Gindlesperqer, 18-018
age 26
Gindlesperger would have to abstain.
The need for Gindlesperger to abstain on any such vote was repeated
by Walsh.
91. Although Arcurio verbalized his desire to make a motion to approve the leasing of
Gindlesperger's warehouse, based on the meetingg minutes, no such motion was
made, seconded, or voted on at the October 23, 2017, Authority Board meeting.
a. The audio -recording of the October 23, 2017, Authority Board meeting is
devoid of any vote approving the leasiof Gindlesperger's warehouse for
Arena materials/equipment at any rate/fee.
b. Under the Authority Bylaws, given his relationship with AFS, Gindlesperger
could not move for an Authority Board vote on the issue.
92. Gindlesperger revisited the topic of his renting warehouse space to the Arena during
his Chairman's report presented at the December 18, 2017, regular Authority Board
meeting during which Gindlesperger asserted, in part and among other things, that:
a. The media was reorting on the warehouse agreement between his company
and SMG, as wellas his having participatedin the Authority Board vote to
approve SMG's contract amendment;
b. The use of his company's warehouse for storage started during the Arena
renovations/floor project;
c. The contractor was to remove and store the glycol from the existing system
for re -use in the renovated system, but the contractor's definition of storage
was placing the solution into totes;
d. According to St. John, the contractors/subcontractors couldn't get around and
couldn't do their jobs due to the presence of the totes;
e. St. John could not move the glycol solution outside as sunlight would
degrade the gl col and render it unusable, ultimately costing the Authority
$89,000.00 to 00,000.00 to replace;
St. John contacted him, he had the warehouse, he rented the warehouse for
"next to nothing," and gave St. John his trucks and forklift at no cost to
transport the glycol; an
9. He knew what the financial situation at the Arena was, that the Authority was
not in the position to pa the going rate for warehousing, and that he thought
he was doing a "good t, ing.
h. St John was present at the meeting and did not correct or add to the
information provided by Gindlesperger.
93. Gindlesperger's full comments at the meeting can be found in the Authority meeting
minutes for the December 18, 2017, meeting.
94. AFS continued to lease warehouse space at 619 Elder Street to the Arena for
material and equipment storage at the rate of $600.00 per month with no formal
Board vote into August 2018.
a. The Arena ceased use of the warehouse at 619 Elder Street for storage
purposes as of September 2018.
G ndlles er, er, 18-018
1
The termination of the warehouse use coincided with Gindlesperger's
resignation from the Authority.
95. After terminating the arrangement with AFS, the Authority (via. SMG) entered into a
lease for warehouse/storage space with the Johnstown Area Heritage Association
("JAHA" ).
Pursuant to the lease with JAHA, the Authority leases 5,000 square feet at a
cost of $1,000 per month.
96. During the time frame of September 2016 through August 2018, AFS submitted a
total of twenty-four invoices to the Arena for payment in association with the rental of
warehouse storage space at 619 Elder Street.
97. From approximately September 2016 through August 2018, AFS, a business with
which Gindlesperger is associated, received twenty-three checks from the SMG
controlled Arena Operating Account at 1 st Summit Bank (Account Number 2) totaling
$14,400,00 for the storage of Arena materials and equipment.
Each of the twenty-three checks which Gindlesperger/AFS received were
deposited into AFS's business checking account (Account Number 3) at 1st
Summit Bank.
Gindlesperger, along with all the other Members of the Board, voted in favor
of approving the overall SMG operating budget for the Arena, which
exceeded $1,000,000, at the Authority Board's July 24, 2017, regularly
scheduled meeting at a time when AFS had been receivin monthly
payments from the SMG-controlled operating account since Lptember
2016.
98. Gindlesperger asserts that the arrangement with AFS saved the Arena, the Authority
and the taxpayers money. Had he received ethics training indicating that the
agreement was improper or would be void under 53 Pa.C.S. 5614, he would not
have offered to lease the AFS space to the Arena. However, he acknowledges that
he did not review the Ethics Actor www.ethics. a. ov at anytime during his time at
the Authority. He also did not avail imse tFre educational materials or
educational classes provided by the Commission. Similarly, when the arrangement
with AFS was presented to the Authority Beard in July 2017, had the Authority
Solicitor indicated that the arrangement was improper, Gindlesperger would have
taken steps to immediately terminate the lease.
THE FOLLOWING FINDINGS ADDRESS ALLEGATIONS THAT GINDLESPERGER
DISPUTES AND DOES NOT ADMIT TO, BUT GINDLESPERGER AGREES THAT IF
THIS MATTER WENT TO HEARING, THE INVESTIGATIVE DIVISION COULD MEET
THE REQUISITE EVIDENTIARY STANDARD TO CONVINCE A FACT FINDER THAT
GINDLESPERGER, IN HIS CAPACITY AS A MEMBER/CHAIRMAN OF THE
AUTHORITY BOARD, ENTERED INTO A CONTRACT FOR THE PURCHASE AND
INSTALLATION OF A SCOREBOARD FOR THE ARENA FROM AMPHYPE SIGNS,
LLC A BUSINESS WITH WHICH HIS SON IS ASSOCIATED, AND WHEN THE
CONTRACT WAS AWARDED TO AMPHYPE SIGNS, LLC, WITHOUT AN OPEN AND
PUBLIC PROCESS.
99. The Arena is the current home of the Johnstown Tomahawks Hockey Club
(hereafter "Tomahawks").
The Tomahawks is a junior hockey organization affiliated with the North
American Hockey League ("NAHL").
Gindlespercier,, 18-018
Page 28
The NAHL is a Tier 11 junior league consisting of 24 teams in thirteen
states.
100. The Authority entered into a contract with the Tomahawks on or about March 29,
2012, as the Arena's main tenant.
a. The Authority Board approved an amendment to the original contract with the
Tomahawks at its June 27, 2016, regular meeting, extending the term of the
contract for an additional three years,
101. A scoreboard existed at the Arena at the time the Tomahawks became the main
Arena tenant.
a. The scoreboard had been in service at the Arena since approximately 1990.
1 The scoreboard was an antiquated piece of equipment which utilized
"screw -in'" miniature light bulls for display purposes.
102. The existing scoreboard was in poor condition and frequently required maintenance
and/or repairs due to its age.
a. Only a limited number of companies/entities were willing to work on the
existing scoreboard due to its age and limited availability of parts.
103. The Authority Board had discussed replacing the existing scoreboard at the Arena
since at least mid-2012.
a. Representatives of the Tomahawks encouraged the purchase of a newer,
modern scoreboard as a means by which to generate excitement at the
Arena.
Representatives of the Tomahawks presented a pro osal to the
Authority Board consisting of three funding sources (the City, the
County, and the Tomahawks) to facilitate the potential purchase of a
new scoreboard.
aa. The Tomahawks' proposal ultimately was not pursued.
bb. The purchase of a new scoreboard was placed on hold about
December 2012.
104. Although delayed, the Authority Board intermittently discussed the need for a new
scoreboard for the Arena in 2013 and 2014.
a. No formal action was taken in 2013 or 2014 to purchase a new scoreboard.
105. The Authority Board again considered the ossibilityofobtainin a new scoreboard
for the Arena in 2015 in association with possibility
award op"Hockeyville."
a. Hockeyville representatives had expressed concerns with the existing
scoreboard and its hoist system after conducting an assessment of the Arena
in preparation for the N H L pre -season game.
106. Jean Derochers, Tomahawks Director of Business Operations, subsequently
contacted three separate companies in or about mid-2015 to obtain quotes
concerning the potential cost of a new scoreboard and to educate himself on the
industry in order to better discuss the subject.
GindlespeEger, 18-018
Page 29
107, At its June 22, 2015, regular meeting, the Authority Board discussed, in both
executive session and public session, a quote obtained and the purchase of a new
scoreboard.
a. Upon reconvening from executive session, Board Member Mike Barletta
motioned, seconded by Arcurio, to purchase a scoreboard and transport cart
in an amount not to exceed $130,000.00.
The $130,000 quote did not include installation charges or costs.
b. The motion to purchase the scoreboard and transport cart passed via
unanimous 5-0 vote with two Board Members absent.
Gindlesperger was present and voted in favor of the motion.
C. The quote that was voted upon and approved was not the result of a public
bidding process.
d. Meeting minutes of the June 22, 2015, meeting do not contain any reference
to the Authority Solicitor informing the Authority Board that the scoreboard
quote needed to be subject to a public bidding process.
108. Although the Authority Board approved the purchase of the scoreboard, questions
arose regarding the hoist system, load capabilities, pick points on the scoreboard,
etc.
a. The original scoreboard voted on at the June 22, 2015, meeting (with
accompaniments) was estimated to weigh considerably more than the
existing scoreboard.
109. CJL Enqineering completed an analysis of the Arena hoist beams as of at least
August 1, 2015, and determined that the hoist beams required plating to support
the estimated weight of the new scoreboard.
a. CJL Engineering evaluated the hoist beams for a scoreboard weighing 4,200
pounds.
b. CJL Engineering determined that the existing hoist beams could support a
new scoreboard weight of only 1,500 pounds (approximately) without
additional bracing.
Althou h a different scoreboard was considered as of at least August
12, 20Y5, the estimated weight of the second scoreboard considered
was almost 500 pounds above the 1,500 pound threshold.
110. Ins ection of the existing hoist system at the Arena was completed as of August 17,
2015.
a. The hoists were determined to have the capability of supporting the weight of
a new scoreboard providing the roof could structurally supportthe weight.
I The inspection of the hoists revealed only minor electrical items
requiring repair.
111. In an email dated August 19, 2015, Chris Glessner, President of the Cambria
County Student Hockey League, questioned Gindlesperger, CJL Engineering
Gindlesperger 18-018
page 3U
representatives, Tomahawks representatives, and Arena representatives on the
following:
a. If the window for purchasing a new scoreboard had closed or if sufficient lead
time still existed;
b. The release of a purchase order for the scoreboard if one of two hoist options
was acceptable including:
1. The ability to repair/recondition the existing hoists and the cost; or
2. The purchase of a new hoist to be managed by the installing company
as a turnkey solution;
C. The ability to bring the existing scoreboard to fully functional operations if
necessary; and
d. Who was able to make the decision.
112. Gindlesperger responded to the group via email on August 19, 2015, stating that:
a. Gindlesperger had instructed Derochers not to order the scoreboard until the
Authority Board had a signed document from CJL Engineering that the hoist
beams were structurally, sound to withstand the load of the scoreboard,
rigging, and snow; and
b. A company had been contacted to examine the existing scoreboard circuitry
as a contingency plan if the window closed on ordering the new scoreboard.
113. At the August 23, 2015, regularAuthority Board meeting, Jim Carthew, CJL
Engineering, explained that, for various reasons, the Authority had fallen short of the
window of opportunity to obtain and install a new scoreboard prior to the Arena NHL
pre -season game.
a. Carthew recommended renovating the existing scoreboard and considering
the new scoreboard and hoist system at a later time.
b. Gindlesperger affirmed his support of Carthew's recommendation and
proposed continuing
the process to order a new scoreboard for possible
installation prior e Tomahawks' home opener.
Gindlesperger specified that the scoreboard the Authority was
consideringat that time was considerably less mane than the original
scoreboard approved for purchase, which was too heavy.
114. Adlink Communications, LLC, (hereafter "Adlink") is a Johnstown -based entity
involved in constructing electronic signage solutions, as well as digital and vinyl
billboard advertising, e ectronic sign sales, billboard location brokerage, camera
installation, graphic design, etc.
a. Daniel Kennedy has served as the sole interested member/owner of Adlink
since inception.
b. Adlink has maintained a registered office address of 219 Ohio Street,
Johnstown, PA 1902,5since July 24, 2013.
219 Ohio Street, Johnstown, PA, is the address of Moskal & Kennedy
Funeral Home ....
Gindlesperger, 18-018
Page 31
aa. Kennedy's primary occupation is that of a licensed funeral
director.
115. Eigght One Four Holdings, LLC (hereafter "Eight One Four") is a Johnstown -based
holdingcompany through which 1sTeam, Advertising, LLC, and Whiteridge
Properties, LP, are organized, managed, and controlled,
a. Ryan Gindlesperger has served as the sole interested member/owner of
Eight One Four since inception.
1. Ryan Gindlesperger is Dean Gindlesperger's son.
116. Amphype Signs, LLC, (hereafter "Amp hype' is a Johnstown -based company that
provides/supplies LED signs, billboards, scoreboards to businesses, sporting
arenas, stadiums, etc.
a. Amphype was organized as a limited liability c, I
m an through the
Pennsylvania Department of State on September 11, under Entity
Number 6296505.
1. Amphype did not exist prior to September 11, 2015,
b. The organizers of, and current interested parties in, Amphype are Adlink
Communications, LLC, (Kennedy) 50% owner) and Eight One Four
Holdings, LLC (Ryan Gindlesperger)0% owner),
117. Amphype has no internal manufacturing or installation components related to its
j
opera ions.
a. Amphype obtains its LED signs, billboards, etc., through a company located
in Fremont, California.
b. Amphype utilizes the services of SKE Designs, Signs, and Graphics
(hereafter "SKE Designs") located in Everett, Pennsylvania, for installation
services.
118. Amphype has no employees or interested individuals with the exception of Kennedy
and Ryan Gindlesperger.
a. Kennedy is primarily responsible for Amphype's day-to-day operations as
needed.
b. Ryan Gindlesperger primarily serves as an advisor and marketer for
Amphype.
119. Amphype utilizes no specific marketing medium to attract potential customers.
a. Amphype does not advertise in newspapers or magazines, on social media,
etc.
b. Amphype's advertising efforts are limited to its website, cold call sales efforts,
an word of mouth.
120. Amphype has leased office space at 227 Franklin Street, Suite 302A, Johnstown,
PA 15901 from Zinn Realty Corporation since approximately February 1, 2016.
a, Amphype's office at 227 Franklin Street, Suite 302A, is not a manned office.
Ltme - 0 - 0 - 's
Amphype's office space consists of a single, 156 square foot room.
b. Amphype's office at 227 Franklin Street is primarily utilized as a location at
which to receive mail for the business.
Kennedy travels to Amphype's current office location an average of
once every two weeks.
2. Amphype did not begin utilizing or receiving mail at the 227 Franklin
Street, Suite 302A, Tohnstown, PA address until approximately July
2016,
121. Amphype maintained an original registered office address of 617 Elder Street,
Johnstown, PA 15902 (hereafter '617 Elder Street") with the Pennsylvania
Department of State from September 11, 2015, to September 16, 2016.
a. AFS Holdings (a business in which Gindlesperger has an ownership interest)
is the property owner of record for 617 Elder Rtreet.
1. AFS Holdings purchased 617 Elder Street from McClure & McClure,
Inc., on December 18, 2012.
aa. McClure & McClure was a flooring/carpetino business which
maintained a warehouse and showroom at 17 Elder Street.
2. Gindlesperger and Ryan Gindlesperger ultimately renovated the
showroom space at 617 Elder Street into office space.
aa. Gindlesperger has operated his AFS office from the 617 Elder
Street location since at least September 2015.
L Gindles erger maintains a business telephone number
of 8141315-2566.
bb. Ryan Gindlesperger maintained and operated IsTeam
Advertising, LLCs, office at 617 Elder Street from at least
September 2015 to August 2017,
Although located at 617 Elder Street, Ryan
Gindlesperger maintained a separate business
telephone number of 814-410-3018 for ls' Team
Advertising.
CC. Ryan Gindlesperger also worked for and received phone calls
at AFS in 2015 and 2016.
b. Kennedy filed a Change of Registered Office form with the Pennsylvania
Department of State on September 16, 2016, chang%Amphype's rE.'Listered
office address to 227 Franklin Street, Suite 302A, Johnstown, PA 15901.
1. Although the Change of Registered Office form was not filed until
September 16, 2016, Amphype's physical office location changed as
of approximately July 2016.
122. Amphype maintained no physical office space and/or rooms at 617 Elder Street
during the time frame of September 2015 to June 2016.
Gindlespemer 18-018
Page 3,3
a. Amphype had no employees during the time frame that Kennedy and Ryan
Gindlesperger identified Amphype's office address as 617 Elder Street.
Kennedy had no key to access 617 Elder Street at his discretion.
2. ass
lr)rer officeElderStreet was maintained inociation with f5t Team Advertising, LLC.
3. Ryan Gindlesperger was also an AFS employee during this time
period and received phone calls at AFS.
123. The telephone number associated with Amphype is 814-659-6689.
a. Telephone number 814-659-6689 is an AT&T Wireless number assigned to
Kennedy.
Kennedy been assigned telephone number 814-659-6689 since
at least December 14, 2007.
2. Telephone number 814-659-6689 is the same telephone contact
number associated with Adlink.
b. Amphype's use of Dean Gindlesperger's 617 Elder Street property as a
business address served only as a physical location/address at which
Amphype received mail for the business.
Amphype received mail at the 617 Elder Street address anti
approximately June 2016.
124. At the October 26, 2015„ regular Authority Board meeting, AuthoritBoard Member
f
Jim Brazil questioned those in attendance if any ate exis ed regarding a
scoreboard.
a. Gindlesperger responded to Brazil's question, in part, as follows:
There had not been enough time to get the tests done and I get the
scoreboard built, specifically there was not enough time to fabricate
the steel for the scoreboard frame;
2. The Authority needed to decide what they wanted in a scoreboard;
3. Nothing was in place to obtain a scoreboard at that time; and
4. The Authority needed to ensure its "house" was in order financially
before moving on irresponsibly and spending more money.
b. Amphype had been created approximately one and one-half months prior to
the October 26, 2015, Authority Board meeting.
No additional discussion of obtaining a new scoreboard occurred at
the Authority's November 2015 or December 2015 regular Authority
Board meetings.
125. From January 19, 2016, through January 25, 2016, telephone contact was made
between mulfile individuals involved in the eventual purchase of a scoreboard for
t
the Arena, including Gindlesperger, as detailed in the chart below:
Gindlesperger, 18-018
Page 34
IM
01119/16
01/19116
01/19/16
01/19/16
01/19/16
01/20/16
01/21/16
01/21/16
01/21/16
01/21/16
01/21/16
01/21/16
01121/16
01/21/16
01121/16
01121116
01/21/16
01/21/16
01/21/16
01/21/16
01/22/16
01/22/16
01122/16
01122/16
01/23/16
01123/16
01/24/16
01/24/16
01/26/16
01/25116
01/25/16
01/25116
01/25/16
01/25116
01/25/16
Local
Elapsed
Originating
Terminating
Time
Time
Number
Number
11:08
AM
2
1814341 XXXX1
18145250237
11:47
AM
19
18146596689
1814341 XXXX
11:50
AM
1
18145250237
1814341XXXX
12:48
PM
5
18146596689
1814341 XXXX
4:49
PM
2
18146596689
1814341XXXX
5:13
PM
3
1814341XXXX
18145250237
9:16 AM
1
18145250237
1814341XXXX
11:45
AM
1
18146596689
1814341XXXX
12:01
PM
6
18146596689
18145352566
12:09
PM
1
18146596689
18146237500
1:17
PM
4
18146596689
18146237500
1:28
PM
1
18146596689
18145352566
2:03
PIVI
23
18146696689
15104380588
2:40
PM
9
18146596689
18146237500
3:01
PM
1
18146596689
1814341 XXXX
3:04
PM
2
18146596689
15104380588
3:12
PM
14
15104380588
18146596689
3:28
PM
2
18146596689
18146237600
4:09
PM
1
18145250237
1814341 XXXX
9:06
PM
7
1814341 XXXX
18145250237
10:35
AM
2
18145250237
1208571XXXX2
2:11
PM
3
18145250237
1208571 XXXX
3:15
PM
1
18146596689
15104380688
5:44
PM
6
1814341 XXXX
18145250237
9:56
AM
1
18145250237
1814341 XXXX
11:25
AM
3
1814341 XXXX
18145250237
12:09
PM
1
18145250237
1814 341 XXXX
12:17
PM
1
18146250237
1814341XXXX
9:03
AM
2
18146596689
18146237500
3:09
PM
1
18146596689
1814341XXXX
3:21
PM
9
1814341XXXX
18146596689
3:31
PM
3
18146596689
18146237500
4:18
PM
2
18146596689
18146237500
4:23
PM
13
18146596689
15104380588
6:56
PM
I
1814341XXXX
18146250237
From
R. Gindlesperger
D.Kennedy
D. Gindlesperger
D. Kennedy
D. Kennedy
R. Gindlesperger
D. Gindlesperger
D. Kennedy
D. Kennedy
D. Kennedy
D, Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
Liantronics
D. Kennedy
D. Gindlesperger
R, Gindlesperger
D, Gindlesperger
D. Gindlesperger
D. Kennedy
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
D. Kennedy
D. Kennedy
R. Gindlesperger
D. Kennedy
D. Kennedy
D. Kennedy
R. Gindlesperger
M
D. Gindlesperger
R Gindlesperger
R. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
AFS
SKE Designs
SKE Designs
AFS
Liantronics,
SKE Designs
R. Gindlesperger
Liantronics
D. Kennedy
SKE Designs
R, Gindlesperger
D. Gindlesperger
S.StJohn
S.StJahn
LiantroniGs
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
SKE Designs
R. Gindlesperger
D. Kennedy
SKE Designs
SKE Designs
Liantronics.
D. Gindles er er
1 The last four digits of this cellular telephone number are redacted as the Stipulated Findings do not indicate
whether it is a business number. See, Finding 125 b(l)(aa)(i).
2 The last four digits of this cellular telephone number are redacted as the Stipulated Findings do not indicate
whether it is a business number. See, Finding 125 f(l)(aa)(i).
Gindlesperger, 18-018
a. Kennedy called AFS on January 21, 2016, approximately four days prior to
the January 2016 Authority Board meeting,
Kennedy initiated contact with AFS's business telephone number of
814-535-2566 on two occasions on January 21, 2016.
aa. Gindlesperger also maintained a cellular telephone number
with an assigned number of 814-525-0237 in the name of AFS
during the time frame of August 10, 2015, through March 28,
2018,
Z Neither Gindlesper er nor Kennedy had any on -going or scheduled
business with the olyher during that time.
b. Gindlesperger and Ryan Gindlesperger initiated contact with one another on
at least twelve occasions between January 19, 2016, and January 25, 2016.
Gindlesperger and Ryan Gindlesperger initiated contact with one
another on at least four occasions prior to Kennedy's initial January
21, 2016, call to AFS.
aa. The contact between Gindlesperger and Ryan Gindlesperger
occurred via cellular phones.
Ryan Gindlesperger maintained a cellular telephone
with an assigned number of 814-341 -XXXX at that time,
C. Kennedy and Ryan Gindlesperger initiated contact with one another on at
least eight occasions between January 19, 2016, and January 25, 2016.
Kennedy and Ryan Gindlesperqer initiated contact with one another
on at least four occasions prior to Kennedy's initial January 21, 2016,
call to AFS.
aa. The contact between Kennedy and Ryan Gindlesperger
occurred via cellular phones.
Kennedy maintained a cellular telephone with an
assigned number of 814-659-6689at that time.
2. Kennedy initiated contact with Ryan Gindles erger approximately
fifteen minutes prior to his initial January 21, : �1 6, call to AFS.
d. Kennedy and SKE Designs initiated contact with one another on at least
seven occasions between January 21, 2016, and January 25, 2016.
Kennedy, first initiated contact with SKE Designs only three minutes
after his initial January 21, 2016„ call to AFS.
aa. SKE's business telephone number is 814-623-7500.
2. Kennedy initiated contact with SKE Designs a second time
approximately one hour after the initial January 21, 2016, contact to
AFS.
3. Kennedy initiated contact with AFS a second time only seven minutes
after concluding his second January 21, 2016, contact with SKE
Gindlesperger, 18-018
Page 36
Designs.
e. Kennedy and his California supplier initiated contact with one another on at
least five occasions between January 21, 2016, and January 25, 2016,
1 Kennedy and his California supplier initiated contact with one another
on at least five occasions between January 21, 2016, and January 25,
2016.
aa. The California sup lier's US -based California office's business
telephone number is 510-438-0588.
2. Kennedy's initial contact with his California supplier occurred
approximately one-half hour after his second January 21, 2016,
contact with AFS.
f. Gindlesperger initiated contact with St. John on at least two occasions on
January 22, 2016.
1 Gindlesperger initiated contact with St. John approximately three days
before Te January 2016 Authority Board meeting.
aa. The contact between Gindlesperger and St. John occurred via
cellular phones.
i. St. John maintained a cellular telephone with an
assigned number of 208-571 -XXXX at that time.
2. It was not uncommon for Gindlesperger and St. John to communicate
via cell phone.
9- The Investigative Division of the Commission was unable to confirm the
content of the above conversations, however, Gindlesperger asserts that
any that involved him and his son were unrelated to the Scoreboard and/or
Amphype.
h. Kennedy denies that he told Gindlesperger that Ryan Gindlesperger was his
partner in Amphype.
i. Kennedy testified under oath that his discussions with the Arena about
Amphype providing a new scoreboard were the result of an initial contract
where he was trying to obtain a contract to place an LED billboard outside the
arena.
1. The new scoreboard at the Arena is essentially four LED billboards
that operate together.
j, Ryan Gindlesperger denies that his father knew of his association with
Amphype.
126. Discussion regarding the Authority's potential purchase of a new or replacement
scoreboard subsequently occurred at the Authority Board's January 25, 2016,
regular meeting.
a. The uestion was posed to Barletta as the Vice -Chairman of the Authority
Boajr� ,
1. Barletta presided over the January 25, 2016, meeting due to
Gindlescerger, 1 8-01 8
Page:31
Gindlesperger's absence,
b. The question was posed as a result of operational problems encountered
with the existing scoreboard during a college basketball game held at the
Arena on December 12, 2015.
127. Although posed to Barletta, St. John initially responded to the query, in part, that:
a. Gindlesperger had made contact with someone;
b. St. John believed the entity was a local company which likely wanted to work
with the Arena to show its product;
C. St. John believed the contact person was supposed to reach out to him but
had not yet done so;
St. John had taken no specific steps to research potential scoreboard
options, companies, etc., at that time;
d. St. John believed that the individual's name may be "Kennedy"; and
e. Ryan Gindlesperger was not mentioned at the meeting.
128. Barletta subsequently added to the information that St. John had provided, stating,
in part, that:
b. Barletta believed that eventually the Authoritymay be/wasg ngtobeableto
get a new scoreboard, but it was a matter ogetting the correct one; and
C. Authority representatives had spoken to some organizations, community
foundations, 1 sl Summit Bank, that were interested in providing the Authority
a very low interest loan; and
1 The potential of obtaining a low interest loan was said to be
dependent on the Authority enerating income from advertisements
appearing on the scoreboard.
129. Kennedy contacted St. John on February 18, 2016, in relation to providing a new
scoreboard to the Arena through Amphype.
a. St. John was not actively pursuing or soliciting quotes/bids for a new
scoreboard at the time of Kennedy's contact.
1 The Authority had not issued any public notice regarding a requestfor
bids to purchase a new scoreboard for the arena.
aa. No decision had been made nor was any vote taken by the
Authority Board at that time to purchase a new scoreboard.
The only formal vote taken by the Authority Board
regarding urchase of a new scoreboard occurred on
June 22, 2915, to purchase a scoreboard from NEVCO.
2. NEVCO was not re -contacted in 2016 regarding supplying a new
scoreboard for the Arena.
oRindles encier, 18-018
_ "es _ g e4
aa. No contact occurred between NEVCO representatives and
Arena/Authority representatives after approximately August
2015.
b. St. John did not initiate any contact with Kennedy regarding the scoreboard.
C. St. John denies that he was aware that Ryan Gindlesperger was a partner in
Amphype with Kennedy.
130. St. John had no familiarity with/knowledge of Kennedy and/or Amphype in any
professional or personal capacity prior to Kennedy's contact.
a. St. John had not been placed into the position of SMG General Manager at
the Arena until December 2015.
131. On February 18, 2016, St, John requested information via email from multiple
sources, including Gindlesperger, and forwarded/supplied the information to
E
Kennedy as detailed below:
0211 B11 6 St. John Gindlesperger Scoreboard St. John questions what is on file regarding
J. Desrochc rs new scoreboard and asks if information is
present to assist him in answering questions. St.
John requested anything that the recipients had.
02/18116 Gindlesperger St. John Fw; War Memorial Gindlesperger forwarded a prior email received
Scoreboard dated !3Uene 30, 2015, which included an
Installation additional email and drawings as well as weight
information attached
02/18/16 Gindlesperger St. Jahn
Fw: War Memorial —
Gindlesperger forwarded a prior email received
scoring and display
dated June 19, 2015, which included additional
enhancements
emalls as well as an attachment re grding the
proposal from Nevco received in 20 5.
02/19116 Gindlesperger Gregorchik
St. John
Scoreboard test
report
Gindlesperger requests Gregorchik to contact the
vendor who performed the Pcoad tests for a copy
the the information
of results as would e
needed to move forward with specifications for
the new board.
02/19116 St. John Gindlesperger
Scoreboard test
St. John reported that Gregorchik informed him
Gregorchik
report
that the lifts had been serviced not long ago and
some information may be in the file.
a. St. John distributed the email requestin� the information after his telephonic
contact with Kennedy on February 18, 016.
132. From February 18, 2016, through February 22, 2016, contact was made among
multiple individuals involved in the potential purchase of a scoreboard fortheArena,
including Gindlesperger, as detailed in the chart below:
Date
Local
Elapsed
Originating
Terminating
From
To
Time
Time
Number
Number
02/18/16
930 AM
1
18146596689
18146237500
D. Kennedy
SKE Designs
02/18/16
12:36 PM
2
18146596689
18146237500
D, Kennedy
SKE Designs
02118/16
12:45 PM
5
18146596689
1814341XXXX
D, Kennedy
R. Gindlesperger
02118/16
12:53 PM
2
18146596689
1208571 XXXX
D. Kennedy
S.StJohn
02118/16
2:26 PM
1
18146596689
1208571XXXX
D. Kennedy
S.StJohn
02/18/16
3:31 PM
1
18146596689
1814341 XXXX
D. Kennedy
R. Gindlesperger
Gindlesperger3, 18-018
Page 9
Date
02/18116
02118/16
02118/16
02/19/16
02120/16
02120/16
02/20/16
02/20/16
02/22/16
02122/16
02/22/16
Local
Time
3:33 PM
4:06 PM
4:11 PM
3:21 PM
9:59 AM
11:08 AM
11:25 AM
5:10 PM
9:55 AM
6:13 PM
8:24 PM
Elapsed
Time
1
4
1
12
2
1
2
1
2
7
1
Originating
Number
18146596689
18146596689
18146596689
18146596689
1814341 XXXX
18146250237
1814341XXXX
1814341XXXX
18146596689
18145250237
18145250237
Terminating
Number
18145352566
18146237500
15104380588
15104380588
18145250237
1814341XXXX
18145250237
18145250237
18146237500
1814341XXXX
1814341XXXX
From
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Kennedy
D. Gindlesperger
D. Gindlespager
To
AFS
SKE Designs
Liantronics
Liantronics
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D, Gindlesperger
SKE Designs
R. Gindlesperger
R.GindlespeTger
a. Kennedy initiated contact with AFS's business telephone number
ap roximately one hour after Kennedy's second contact with St. John on
February 18, 2016, concluded.
b. The Investigative Division of the Commission was unable to confirm the
content of the above conversations, however, Gindlesperger asserts that any
that involved him and his son were unrelated to the Rcoreboard and/or
Amphype.
133. At the Authority Board's February 22 2016 legislative meeting, Gindlesperger
initiated discussion reciarding the need for a kew scoreboard at the Arena during
which Gindlesperger slated, in part:
a
R
A new scoreboard was needed;
The question was no longer if but when;
It needed to be done and the Authority had no choice;
Gindlesperger did not see how the Authority could "even consider" putting the
existing scoreboard back up next year; and
Doing so would be a "total embarrassment."
Tom Callihan brought up PC Scoreboards and, during the ensuing
discussion, Gindlesperger stated that it was definitely something to look at as
it was much less expensive.
St. John confirmed that he would look into PC Scoreboards.
134. Gindlesperger initiated the contact between Kennedy and the Authority/St. John,
regarding the sale of the scoreboard, which began based on an inquiry by Kennedy
about the billboard outside the Arena.
135. During the discussion at the February 22, 2016, meeting, St. John announced that
he had a group coming to the Arena that weekend to provide a quote for a
scoreboard -and' address potential challenges.
a. St. John did not identify the name of the group,
Gindlesperger, 18�-018
Page 40
I Kennedy (Am hype) and SKE Representative Randy Eberhart was
the "group" referenced by St. John.
2. Gindlesperger initiated contact with Ryan Gindlesperger via cell phone
approximately forty-five minutes after the rEbruary 22, 2016,
legislative meeting of the Authority Board concluded.
L The Investigative Division of the Commission was unable to
confirm the content of the above conversation, however,
Gindles erger asserts that it was unrelated to the Scoreboard
and/or Xmphype.
136. On February 23, 2016, St. John forwarded to Kennedy the emails and attachments
he had received from Gindlesperger on February 18, 2016,
137. Kennedy's receipt of the emailed information from St. John resulted in contact
between the following individuals directly related to the purchase of a new
scoreboard for the Arena:
Date
Local
Elapsed
Originating
---- T . erminat . i n cl
From
TO
Time
Time
Number
Number
02/23/16
12:03 PM
1
18146596689
1814341XXXX
D. Kennedy
R. Gindlesperger
02/23/16
1:02 PM
2
18146596689
18145352566
D. Kennedy
AFS-Jerns
02/23/16
1:34 PM
3
18146596689
18146237500
D. Kennedy
SKE Designs
02123/16
4:34 PM
8
18146596689
15104380588
D. Kennedy
Liantronics
02/23/16
5:24 PM
5
1814341 XXXX
18146596689
R. Gindlesperger
D. Kennedy
02/23/16
5:29 PM
13
18146596689
1814341 XXXX
D, Kennedy
R. Gindlesperger
a. St. John sent the information to Kennedy via two separate emails at 11:55
a.m. and 11.56 a.m.
1 Kennedy initiated contact with Ryan Gindlesperger within ten minutes
after receipt of the emails.
2, The Investigative Division of the Commission was unable to confirm
the content of the above conversations, however, Gindlesper er
asserts that any that involved him and his son were unrelated to Te
Scoreboard and/or Amphype.
138. The topic of anew scoreboard was not discussed at the Authority Board meetings in
March, April or May of 2016.
139. The topic of a new scoreboard for the Arena was again specifically
referenced/presented by Gindlesperger at the Authority Board's June 27, 201,
regular meeting.
a. Gindlesperger expressed possible concerns regarding the operational
condition of the old/original scoreboard due fo dust from the floor
renovations.
140. Subsequent to Gindlesperger's statements, a question was posed regarding the
Authority's receipt of a study on the type and price of the scoreboard needed.
a. Gindlesperger expressed his understanding that there was a study, but he
had not seen anything in writing and the Authority did not yet have a price for
the scoreboard.
b. St. John commented that "Kennedy" had been working on the scoreboard,
but St. John had not heard from Kennedy in a while.
1 Gindlesperger verbally identified Kennedy as "Dan Kennedy" during
St. John's explanation,
2. Gindlesperger verbalized that it was unusual for Kennedy not to be
communicative.
141. During the scoreboard discussion Gindlesperger ultimately directed St. John to get
in touch with Kennedy, "or whoever else," Eecause the Authority had to get moving
to have the scoreboard built and installed at the Arena,
a. St. John expressed his belief that the weight capacity was one of the last
things Kennedy had requested regarding the scoreboard.
b. Gindlesperger affirmed St. John's response, and also expressed his belief
that Kennedy was waiting for the weight capacity information.
142. One day after the June 27, 2016, regular meeting of the Authority Board
Gindlespergerand Ryan Gindles erger initiated contact with one another a total of
five separate times as shown bellow:
Date
Local
Elapsed
Originatin
Terminating
From
TO
Time
Time
Number
Number
06/28/16
9:02 AM
I
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
06/28/16
9:05 AM
I
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
06128/16
12:02 PM
4
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
06/28/16
538 PM
4
18145250237
1814341XXXX
D. Gindlesperger
R. Gindlesperger
06/28/16
9; 16 PM
22
1814341XXXX
18145250237
R. Gindlesperger
D. Gind[!�erq
a. The Investigative Division of the Commission was unable to confirm the
content Of the above conversations, however, Gindlesperger asserts that
they were unrelated to the Scoreboard and/or Amphype.
143. At Gindlesperger's direction, St. John scheduled a meeting with Kennedy (Ryan
Gindlesperger s business partner in Amphype) to occur at 0:00 a.m. on July 15,
2016, in St. John's office at the Arena.
a. St. John emailed Gindlesperger at 11:15 a.m. on July 13, 2016, informing
Gindlesperger that Kennedy was bringing "what he had so far" to a 10:00
a,irn. meeting on July 151, 20116.
b. Gindlesperger subsequently initiated contact with Ryan Gindlesperger via
telephone within forty minutes of St. John's initial email.
1. The Investigative Division of the Commission was unable to confirm
the contentof the above conversation, however, Gindlesperger
asserts that it was unrelated to the Scoreboard and/or Amphype.
144. St, John and Kennedy met on July 15, 2016, in St. John's office at the Arena to
discuss the purchase of the scoreboard.
a. St. John and Kennedy were the only participants in the meeting.
Gindlesperger, 18-018
Page 42
b. During the meeting with St. John, Kennedy verbally identified himself as a
friend of the Gindlesperger family.
1. Kennedy stated that he knew Gindlesperger and had gone to school
with Ryan Gindlesperger.
2. Kennedy did not disclose Ryan Gindlesperger's financial interest in
Amphype during the meeting.
C, Ryan Gindlesperger had been in contact with Gindlesperger via telephone
the evening prior to the meeting,
1. The Investi ative Division of the Commission was unable to confirm
the contenof the above conversation, however, Gindlesperger
asserts that it was unrelated to the Scoreboard and/or Amphype.
145. Kennedy arrived at the meeting with two prepared scoreboard quotes, detailing the
cost of a new scoreboard and accompanying expenses.
146. Immediately after the July 15, 2016, meeting between Kennedy and St. John,
contacts were made between the Respondent, St. John and Kennedy regarding a
new scoreboard for the Arena.
147. On July 18 2016, multiple emails were exchanged between Kennedy, St. John,
and/or Gindlesperger in relation to the potential purchase of a new scoreboard for
c
the Arena from Amphype as shown below:
Date From To subject
Description
07/18/16 Kennedy St. John Scoreboard Video
Scoreboard video attached to email — no
email body
07/18116 St. John Gindlesperger FW: Scoreboard Video
St. John forwarded Gindles r' er the
three
email from Kennedy with video
attachments.
07/18/16 St. John Kennedy Quote
St. John confirmed receipt of Kennedy's
email and the video of the board running.
St. John subsequently questioned
Kennedy if Kennedy had sent a quote.
07/18/16 Kennedy St. John Scoreboard Quotes
Kennedy noted that the requested quotes
were attached and Xcinted out that prior to
"we"
acceptance � mlhype) would need
the results e lateral load study
performed b� a registered engineer and
hoist
the results o the study.
Kennedy additionally requested a date and
time to schedule an appointment for the
lighting effects specialist to organize a time
when
everyone was available.
07/18/16 St. John Gindlesperger FW Scoreboard Quotes
St. John forwarded Gindlesperger the
email from Kennedy with the attached
quotes for scoreboards. St. John's email
to Gindlesperger documented only
.--, 0I
148. Gindlesperger ultimately reviewed the quotes received and selected Amphype
Quote No. q60320.
Page Gindlesperger, 18-018
43
a. Gindlesperger did not present any information for consideration to the
Authority Board as a whole at any public meeting regarding the quotes
received from Amphype,
b. The Purchase of a scoreboard from Amphype was never presented to the
Aut
hority Board as a whole at any public meeting for approval via formal
vote.
C. Gindlesperger contacted the Authority Solicitor on September 9, 2016, about
the scoreboard and was told, in substance, that since the Authority Board
had previously authorized a purchase back in 2015 and this authorization
had not been rescinded, it was ok to order the new scoreboard and get
ratification at the next Authority Board meeting.
d. It is Gindlesperger's recollection that the Authority Solicitor arproved the
gurchase of the new scoreboard in an executive session of the Authority
oard in the summer of 2016.
1. The Authority Solicitor never advised Gindlesperger or the Authority
Board that the purchase of the new scoreboard needed to be publicly
bid,
149. Efforts to secure funding for the purchase of the new scoreboard included meeting
with State Representative Bryan Barbin regarding eligibility for funding via state
monies (e.g. grants).
a. On July 22, 2016, Arcurio sent an email to St. John identifying a meeting with
Representative Barbin scheduled for July 26 at 12: 00 p.m. to be attended by
Gindlesperger, Arcurio, St. John, and Authority Board Member Tom Callihan.
Date
07/20/16
07/20116
07/20/16
07/21/16
07/21/16
07/22/16
07122/16
07/22116
07/24/16
07/26/16
07/25/16
07/25/16
07/25/16
07/25/16
07/26/16
1, Telephone activity between Gindlesperger and other individuals
involved with the purchase of the scoreboard in days
contemporaneous to Arcurio's email and the meeting date included
the following
Local
Time
3:23 PM
6:09 PM
6:14 PM
11:45 AM
7.02 PM
1:47 PM
2.34 PM
5:54 PM
6:10 PM
9:55 AM
9:56 AM
3:25 PM
5:44 PM
7:02 PM
9:23 AM
Elapsed
Time
2
2
1
1
5
2
1
9
8
1
2
1
Originating
Number
1814341 XXXX
1814341 XXXX
1814341 XXXX
18145250237
18145250237
1814341 XXXX
18146596689
1814341 XXXX
1814 341 XXXX
1814341 XXXX
18145250237
18145250237
18145250237
1814341 XXXX
1814341 XXXX
Terminating
Number
18145250237
18145250237
18145250237
1208571 XXXX
1814341 XXXX
18146596689
1814341 XXXX
18146596689
18145250237
18145250237
1814341 XXXX
1814341 XXXX
1814341 XXXX
18145250237
18145250237
Er-0—M
R. Gindlesperger
R. Gindlesperger
R, Gindlesperger
D. Gindlesperger
D, Gindlesperger
R. Gindlesperger
D, Kennedy
R. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
W
D. Gindlesperger
D. Gindlesperger
D. Gindlesperger
S.StJahn
R. Gindlesperger
D. Kennedy
R. Gindlesperger
D. Kennedy
D. Gindlesperger
D, Gindlesperger
R. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
Date —
Local ---—Elapsed
Originating
Terminating
From
To
Time
Time
Number
Number
07/26/16
9:31 AM
2
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
07126/16
9:39 AM
4
18145250237
1208571XXXX
D. Gindlesperger
S.StJohn
07/26116
10:21 AM
1
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
150
Date
2. The Investigative Division of the Commission was unable to confirm
the content of the above conversations, however, Gindlesperger
asserts that any that involved him and his son were unrelated to Te
Scoreboard and/or Amphype.
b. No funding was received as a result of the meeting.
Funding efforts continued into September 2016, until Arcurio verbally brokered a
loan agreement with 1 'It Summit Bank on September 13, 2016.
a. Arcurio emailed St. John and Gindlesperger on September 13, 2016, to
inform them that he had secured funds in the amount of $250,000.00 through
1 st Summit Bank to purchase the scoreboard and to address some additional
Arena -related issues.
1. Arcurio's email also informed St. John that Arcurio and Gindlesperger
were meeting with the bank at 9:00 a.m. on September 15, 2016.
2. Arcurio requested that St. John attend the meeting and bring any
information he had on the scoreboard.
b. Kennedy subsequently entered into a purchase agreement between
Amphype and his California supplier on September 13, 20160
1 The purchase agreement was executed following St. John informing
Kennedy that funding for the scoreboard was in place.
G. Respondent Gindlesperger participated in telephone activit with individuals
involved with the purchase of the scoreboard on days conzemporaneous to
Arcurio's email, and the meeting date, including the following:
09/12/16
09/12116
09/12/16
09/12/16
09/12/16
09/12/16
09/12/16
09/12/16
09113/16
09/13/16
09114116
09/14116
09114/16
Local
Time
9:06 AM
9:20 AM
1:30 PM
1:57 PM
1:58 PM
2:09 PM
2:31 PM
3:04 PM
2:48 PM
3:19 PM
9: 18 AM
10: 18 AM
1:52 PM
Elapsed
Time
2
1
1
2
1
2
1
8
2
Orlainatina
Number
18146596689
18146596689
18146596689
18146596689
18146696689
18146596689
1208571XXXX
18146596689
18146596689
18145260237
18145250237
1814341XXXX
18146596689
Terminating
Number
18146237500
1814341XXXX
15104380588
18145365156
18145365156
1208571XXXX
18146596689
1208571XXXX
15104380588
1208571XXXX
1208571XXXX
18146596689
15104380588
From
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
S.StJohn
D. Kennedy
D. Kennedy
D. Gindlesperger
D. Gindlesperger
R. Gindlesperger
D. Kennedy
To
SKE Designs
R. Gindlesperger
Liantronics
War Memorial
War Memorial
S.StJohn
D. Kennedy
S.StJohn
Liantronics
S.StJohn
S.StJohn
D. Kennedy
Liantronics
Gindlespemer, 18-018
Page 45
9M
09/14/16
09114/16
09/15/16
09/15/16
09/15/16
09/16/16
09/16/16
09/16/16
09/16/16
09/17/16
W
152
Local
Time
2:25 PM
2:31 PM
1:29 PM
2:13 PM
2:44 PM
10:26 AM
1U0 AM
10:37 AM
10:00 PM
1042 PM
Elapsed
Time
1
2
2
6
18
Originating
Number
18146596689
18146596689
18145250237
18146596689
18146596689
18146596689
18146596689
18146596689
1814341)(XXX
1814341XXXX
Terminating
Number
15104380588
18146237500
1814341XXXX
18146237500
15104380588
18145365156
1208571XXXX
18146237500
18145250237
18145250237
From
D. Kennedy
D. Kennedy
D. Gindlesperger
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
D. Kennedy
R. Gindlesperger
R. Gindlesperger
To
Liantronics
SKIS Designs
R. Gindlesperger
SKIS Designs
Liantronics
War Memorial
S.StJohn
SKL Designs
D. Gindlesperger
D. Gindlesperger
11. The Investigative Division of the Commission was unable to confirm
the contentof the above conversations, however, Gindlesperger
asserts that any that involved him and his son were unrelated?Ih e
Scoreboard and/or Amphype.
Funding for the purchase of the scoreboard from Amphype was made possible by
the Authority securing a loan from 1"t Summit Bank.
a. The loan was obtained for the purpose of paying off an existing commercial
loan debt, the purchase and installation of the new digital scoreboard, and
the purchase and installation of a fabric DuctSox.
b. The Authority submitted the application to 1st Summit Bank on or about
September 19, 2016, requesting a loan.
C. Gindlesperger signed the commercial loan application as the Chairman of the
Authority Board.
d. On September 23, 2016, St. John emailed Gindlesperger and Arcurio
informing them that Kennedy wanted a check on September 27, 2016, for the
initial payment regarding the scoreboard,
1st Summit Bank approved the Authority's loan application on or about September
26, 2016, subject to and under various terms and conditions,
a. The Authority received correspondence dated September 26, 2016, from 1 st
Summit documenting the loan approval,
b. Gindlesperger signed a document accompanying the loan approval letter as
the Chairman of the Authority Board affirming understanding of the terms and
conditions of the loan.
1 The commercial loan was not scheduled for closing until December
20,2016.
G. Telephone activity between Gindlesperger and other individuals involved with
the purchase of the scoreboard in days contemporaneous to 18t Summit's
approval of the commercial loan application included the following:
Ghdiesperger 18-018
Page 46
Date
--io-C ...
—Elapsed
--brigina . ti . nq —.
Terminating
From
To
Time
Time
Number
Number
09/26/16
12:43 PM
6
18146596689
1814341XXXX
D. Kennedy
R. Gindlesperger
09/26/16
4:15 PM
1
18146596689
18146237500
D. Kennedy
SKE Designs
09/26/16
4:16 PM
1
18146596689
18146237500
D. Kennedy
SKE Designs
09/26/16
4:45 PM
21
18146596689
1814341XXXX
D. Kennedy
R. Gindlesperger
09/26/16
7:22 PM
2
18145250237
1814341XXXX
D. Gindlesperger R. Gindlesperger
1 The Investigative Division of the Commission was unable to confirm
the content of the above conversations, however, Gindlesper er
asserts that any that involved him and his son were unrelated to the
Scoreboard and/or Amphype.
153. On or about September 27, 2016, Kennedy traveled to St. John's office in the Arena
and provided St. John with Invoice/Quote No. 160320 for execution regarding the
purchase and installation of an LED scoreboard.
154. Upon delivery of Invoice/Quote No. 160320, St. John rovided Kennedy with
Authority Check Number 1275, dated September 27, 2019, payable to Amphype.
a. Check Number 1275 was written by Arcurio from Authority Account Number
1.,
b. Gindlesperger signed Check Number 1275 on behalf of the Authority as one
of two required authorized signatories.
155. Issuance of Authority Check Number 1275 was identified in the Treasurer's Report
presented for approval at the Authority Board's October 24, 2016, regular meeting.
a. Kuhar made a motion, seconded by Callihan, to accept the Treasurer's
Report which passed via unanimous 5-0 vote.
1. Authority Board Members Roger Renninger and Barletta were absent
from the meeting.
b. Gindlesperger was present and voted in favor of the motion.
156. Amphype maintains a checking account at InFirst Bank (previously Indiana First
Saving Bank) [referred to herein as Account Number 4].
a. The account was opened under the name Amphype Signs, LLC on October
15,2015.
b. Kennedy and Ryan Gindlesperger are the only two authorized signatories on
the account.
C. Amphype's address is identified as 617 Elder Street on the account
application/signature card.
1 An InFirst Bank Change of Add ress/Telephone/Email form attached to
the account application/signature card documented Amphype's
change of permanent address to 227 Franklin St., Suite 502A,
Johnstown, PA 15901 filed by Ryan Gindlesperger effective July 22,
2016.
Gindlesperger 18-1018
Page 41
d. Correspondence attached to the account application/signature card from the
Department of Treasury, Internal Revenue Service, acknowledged
assignment of an Employer Identification Number to Amphype.
1. Amphype's address on the document was:
Am p hrggSinnn� LLC
Da
niel Kennedy
y IVIBR
617 Elder St
Johnstown, PA 15902
aa. Amphype had no physical office at 617 Elder Street.
bb. Kennedy had no business affiliation with any
businesses/entities physically located at 617 Elder Street.
CC. 617 Elder Street was owned by AFS Holdings, a business with
which Dean Gindlesperger is associated,
e. Email correspondence from Ryan Gindlesperger to Koontz attached to the
account/signature card noted the following,
1. "Attached is the IRS EIN filing for Eight One Four Holdinws; LLC. I
personally own 100%of Eight One Four Holdings LLC, and fight One
our Holdings LLC owns 60% of Amphype Signs LLC,"
2. 1 st Team Advertising
617 Elder Street
Johnstown, PA 15902
157. On September 28, 2016, St. John authored an email to Gindlesperger and Arcurio
documenting, "Kennedy has the check."
a. Telephone activity among Gindlesper er and other individuals involved with
the purchase of the scoreboard in Tays contemporaneous to Kennedy's
receipt of Check Number 1275 included the following:
09127/16
9:14 AM
3
18146596680
18146237500
09/27/16
11:54AM
3
18146596689
18145365156
09/27/16
4:50 PM
10
18146596689
18146237500
09/28/16
9:18 AM
1
18145250237
1814341 XXXX
09/28/16
9:48 AM
1
18145250237
1208571 XXXX
09/28116
9:49 AM
1
18145250237
1208571 XXXX
09/28/16
10:40 AM
4
18145250237
1208571 XXXX
09/28/16
12:28 PM
1
18146596689
18146237500
09128/16
1:47 PM
3
18146596689
18146237500
09/28/16
4:04 PM
3
18146237500
18146596689
09128/16
6:52 PM
1
18146596689
15104380588
09/28/16
6:53 PM
1
18146596689
15104380588
09128/16
6:53 PM
1
18146596689
15104380588
09128/16
7:12 PM
1
18145250237
1814341 XXXX
D. Kennedy
D. Kennedy
D. Kennedy
D. Gindlesperger
D. Gindlesperger
D. Gindlesperger
D. Gindlesperger
D. Kennedy
D. Kennedy
SKE Designs
D. Kennedy
D. Kennedy
D. Kennedy
D. Gindlesperger
SKE Designs
War Mernoria]A
SKE Designs
R. Gindlesperger
S.StJohn
S.StJohn
S.StJohn
SKE Designs
SKE Designs
D, Kennedy
Liantronics
Liantronics
Liantronics
R. Gindlesperger
Gindlesperger, 18-018
Page 4
ate
Local
—"-'F
-1-' d
Originating
Terminatin q
From
To
7iffi —e
ygge
m
Numper
NUMber
09129/16
6:02 PM
15
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
09129/16
6:17 PM
3
18145250237
1814341XXXX
D. Gindlesperger
R. Gindlesperger
09130/16
123 AM
2
18146250237
1814341XXXX
D. Gindlesperger
R. Gindlesperger
09130/16
12:26 PM
8
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
09130/16
3:49 PM
1
18146250237
1814341XXXX
D. Gindlesoercier
R, indles er er
AGalls to War Memorial represent calls to St. John at the War Memorial
1. The Investigative Division of the Commission was unable to confirm
the content of the above conversations, however,
Gindlesper er
asserts that any that involved him and his son were unrelated to Te
Scoreboard and/or Amphype.
158. Kennedy deposited Authority Check Number 1275 into Amphype's checking account
at InFirst Bank (Account Number 4) on October 5, 2016,
a. With the exception of the initial start-up deposit on October 15, 2015,
Amphype had only one deposit into Account Number 4 prior to the deposit of
Aut ority Check Number 1275.
159. Althouqh Kennedy received Authority Check Number 1275 on or about September
27, 2016, Gindlesperger did not execute the contract between the Authority and
Amphype until October 8, 2016.
a. St. John emailed Gindlesperger on September 28, 2016, informing
Gindlesperger that the contract ?c r the scoreboard was on St. John's desk for
signature.
b. Gindlesperger signed the contract as the "Authorized Buyer" on October 8,
2016, after St.
John sent Gindlesperger an additional email on that day
reiterating that the scoreboard contract was still on his (St. John's) desk for
signature.
G. Kennedy formally placed the order with Liantronics on October 7, 2016.
d. Telephone activity between individuals involved with the purchase of the
scoreboard in days contemporaneous to Gindlesperger's execution of the
contract with Amphype included the following:
Date
Local
Elapse
Clriainatiqq
Terminatin
l rom
10
7—ime
—Timck
Nu , tuber " "
Number
10107/16
10:02 AM
1
18146596689
18145352566
D. Kennedy
AFS
10/07116
12:21 PM
3
18146596689
1814341XXXX
D. Kennedy
R. Gindlesperger
10/07116
1: 14 PM
4
18146596689
15104380588
D. Kennedy
Liantronics
10/07116
1:20 PM
3
18146596689
15104380588
D. Kennedy
Liantronics
10/07/16
3:58 PM
1
18146596689
18146237500
D. Kennedy
SKE Designs
10/07116
4:30 PM
2
1814341XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
1 The Investigative Division of the Commission was unable to confirm
the conten? of the above conversations, however, Gindlesperger
asserts that any that involved him and his son were unrelated to ?he
scoreboard and/or Amphype.
Gindlespleir.gleir, 18-018
Page 49
160. The Authority and the Arena closed on Commercial Loan Number [9073525], which
included funding for the new scoreboard, on December 20, 2016,
a. The Authority Board passed a Resolution on December 20, 2016, authorizing
the loan from 1s' Summit Bank.
1 Gindlesperger signed the Resolution as the Chairman of the Authority
Board.
b. Gindlesperger signed the Loan Agreement, the Note, and the General
Security Agreement associated with Commercial Loan Number 9073525 as
the Chairman of the Authority Board,
161. The scoreboard was transported to the Arena by SKE Designs on December 27,
2016, for installation,
a. The LED display screens and cabinetry making up the scoreboard were
delivered directly to SKE Designs for assembly and installation at the Arena.
1 SKE Desig
ns transported the equipment/materials to the Arena on
December
27, 2016.
b. Installation of the scoreboard occurred overnight from December 27, 2016, to
December 28, 2016.
C. Telephone activity between individuals involved with the purchase of the
scoreboard contemporaneous to the installation date of the scoreboard
included the following:
Date
Local
Elapsed
Originating
Terminating
--
. Frorn
To-
ITM-0
I Ime
NUMber
Number
12127/16
12:36 PM
2
18146596689
18145365156
D. Kennedy
War Memoria [A
12/27/16
12:39 PM
8
1208571XXXX
18146596689
S.StJohn
D. Kennedy
12/27/16
12:47 PM
7
18146596689
18146237500
D. Kennedy
SKE Designs
12/27/16
12:54 PM
2
18146596689
1208571XXXX
D. Kennedy
S.StJohn
12/27116
12:56 PM
3
18146596689
18145362566
D. Kennedy
AFS
12/27/16
1:06 PM
1
18145352566
18146596689
AFS
D. Kennedy
12127/16
9A3 PM
2
18146596689
1208571XXXX
D. Kennedy
S.StJohn
12/27/16
11:41 PM
2
18146596689
1814341XXXX
D. Kennedy
R. Gindlesperger
12/28/16
11:13 AM
12
18145250237
1208571XXXX
D. Gindlesperger
S.StJahn
ACalls to War Memorial represent calls to St. John at the War Memorial
162. On December 28, 2016, St. John emailed Ryan Gindlesperger and relayed that the
new scoreboard had been installed.
a. St. John referenced a 5:00 p.m. training session to be held on December 29,
2016.
b. St. John questioned if Ryan Gindlesperger had any opportunity to sell an of
Ryan Gindlesperger s clients advertisements pace on the scoreboard and an
internet digital ad package.
1 St. John had previously discussed with Ryan Gindlesperger the
possibility [of] 1 gt Team clients [being interested] in advertising on the
Arena scoreboard.
Gindlesperger, 18-018
Page bU
C.
107
K
9
Discussed was the possibility of paid advertising being used to
fund/repay the scoreboard purchase.
Ryan Gindlesperger/1 Sr Team was ultimately compensated in the form
of free advertising for Ryan Gindlesperger's wife s optical practice in
exchange for client referrals.
St. John requested any available advertising/client content for use in the
training session.
Telephone activity between individuals involved with the purchase of the
scoreboard including Respondent Gindlesperger contemporaneous to the
date of the training session included the following;
PRI—I
12/29/16
9:59 AM
7
1814341XXXX
18146250237
12/29/16
10: 15 AM
2
18145250237
1208571 XXXX
12/29/16
10:62 AM
2
1208571 XXXX
18145250237
12/29/16
10:53 AM
2
1208571 XXXX
18145250237
12/29/16
11:67 AM
2
18145250237
1814341XXXX
12/29/16
3:23 PM
37
18146596689
1814341XXXX
12/29/16
4:01 PM
9
1814341XXXX
18145250237
12129116
419 PM
4
18146596689
1814341XXXX
12/29/16
4A3 PM
1
1814341XXXX
18146596689
12/30/16
4:13 PM
1
18145250237
1814341XXXX
12130/16
413 PM
1
18145250237
1814341XXXX
12/30116
4:16 PM
5
1814341XXXX
18145250237
12/30/16
4:25 PM
10
18145250237
1814341XXXX
12130/16
4:35 PM
1
1814341XXXX
18145250237
12/30/16
4:44 PM
1
1814341 XXXX
18145250237
12/30/16
4:51 PM
1
18'145250237
1814341XXXX
12/30116
4:56 PM
1
18145250237
1814341XXXX
12130/16
6:50 PM
2
1208571 XXXX
18145250237
12/28/16
11: 13 AM
12
18145250237
1208571 XXXX
12/29/16
9:59 AM
7
1814341 XXXX
18145250237
12/29/16
1016 AM
2
18145250237
1208571 XXXX
12/29116
10:52 AM
2
1208571 XXXX
18145250237
12/29116
10:53 AM
2
1208571 XXXX
18145250237
12/30/16
4:13 PM
1
18145250237
1814341XXXX
12/30116
4:13 PM
1
18145250237
1814341XXXX
12/30/16
4:16 PM
5
1814341XXXX
18145250237
12/30/16
4:25 PM
10
18145250237
1814341XXXX
12/30/16
4:35 PM
1
1814341 XXXX
18145250237
12/30/16
4:44 PM
1
1814341XXXX
18145250237
12/301,16
4:51 PM
1
18145250237
1814341XXXX
R. Gindlesperger
D. Gindlesperger
S.StJohn
S.StJohn
D. Gindlesperger
D. Kennedy
R. Gindlesperger
D. Kennedy
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
S,StJahn
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
S.StJohn
S.StJohn
D, Gindlesperger
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R, Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
S,StJohn
D. Gindlesperger
D, Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
D, Kennedy
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
S,StJohn
D. Gindlesperger
S.StJohn
D. Gindlesperger
D. Gindlesperger
R. Gindlesperger
R. Gindlesperger
D. Gindlesperger
R. Gindlesperger
D. Gindlesperger
D. Gindlesperger
R. Gindlesperger
Gindlesper g.er, 18-018
Hage bi
Date
ocal
lapsed
r gina filil
erminating
From
To
I ime
t imp
NUMber
NUMber
12130/16
4:56 PM
1
18145250237
1814341XXXX
D. Gindlesperger
R. Gindlesperger
12/30/16
6:50 PM
2
1208571 XXXX
18145260237
S.StJohn
D. Gindlesperger
12/31/16
2:59 PM
6
18145250237
18146596689
D. Gindlesperger
D. Kennedy
12/31/16
6:12 PM
2
1814341 XXXX
18145250237
R. Gindlesperger
D. Gindlesperger
12/31116
7:58 PM
1
18145250237
18146596689
D. Gindlesperger_
D. Kennedy____
1 The Investigative Division of the Commission was unable to confirm
the content of the above conversations, however, Gindlesper er
asserts that an that involved him and his son were unrelated to Te
scoreboard and/or Amphype,
163. Training regarding the operation of the scoreboard occurred in the Arena press box
on December 29, 2016�
a. Multiple SMG representatives attended the training session.
1. St. John was present for a portion of the training.
b. Gindlesperger was in the press box for a portion of the training session.
164. Both Kennedy and Ryan Gindlesperger provided training on the operationalaspects
of the scoreboard to those in attendance at the December 29, 2016, session.
a. Gindlesperger was present in the press box while Ryan Gindlesperger
actively participated in the training session for the operation of the
scoreboard.
1 Ryan Gindlesperger primarily trained Arena staff on the
advertising/graphic design element of the scoreboard.
2. Ryan Gindlesperger subsequently ran and/or provided live training on
the scoreboard to Arena representatives during Tomahawks games
for a limited period of time after the scoreboardl installation.
aa. Gindlesperger was witnessed in the Arena press box while
Ryan Gindlesperger was actively operating the scoreboard,
b. Gindlesperger and Ryan Gindlesperger spoke briefly to one another during
the training session.
165. On or after December 31, 2016, Kennedy delivered an updated copy of
Invoice/Quote Number 160320 directly to Dean Gindlesperger outlining the
remaining balance due for the scoreboard.
a. The I nvoice/Quote dated December 31, 2016, noted changes to the original,
executed Invoice/Quote.
166. No action was taken re�ardin� payment of the balance due to Amphype until
approximately January 19, 2017.
a. St. John requested the final bill for the scoreboard in conversation with
Kennedy on January 19, 2017,
1. Kennedy informed St. John that he had supplied the final bill to
Gindlesperger, 18-1018
15-a-g-e 2
Gindlesperger.
b. St. John subsequently emailed Respondent Dean Gindlesperger on January
19, 2017, and requested a copy of the final bill from Gindlesperger.
167. Upon receipt of the final bill from Dean Gindlesperger, St. John emailed the final
Amphype Invoice/Quote to Arcurio on January 20, 2017, for generation of final
payment due.
a. Arcuric, sent correspondence to 18t Summit Bank dated January 20, 2017,
requesting the release of funds for the scoreboard.
1. Arcurio copied the correspondence to Gindlesperger among other
individuals.
168, 16t Summit Bank subsequently enerated Treasurer's Check Number 453885, dated
January 23, 2017, payable to Cphype.
a. 1st Summit Bank Treasurer's Check Number 453885 was issued in
association with the Authority's Commercial Loan Number 9073525.
b. 1st Summit Bank issued Check Number 453885 directly to Amphype at 227
Franklin Street, Suite 302A, Johnstown, PA 15901.
169. Issuance of 1st Summit Bank Treasurer's Check Number 453885 to Amphypewas
identified in the Treasurer's Report presented for approval at the Authority loard's
January 23, 2017, regular meeting.
a. Barletta made a motion, seconded by Renninger, to accept the Treasurer's
Report, which passed via unanimous 5-0 vote.
1. Authority Board Members Jim Brazil and Callihan were absent from
the meeting.
b. Gindlesperger was present and voted in favor of the motion which resulted in
the payment to Amphype.
170. Arcurio subsequent[ sent correspondence to Gindlesperger and other individuals
dated January 25, M7, documenting that Treasurer's Check Number 453885
represented the final payment due Amphype for the scoreboard.
a. Kennedy subsequently deposited Check Number 453885 into an Amphype
checking account on January 31, 2017.
171. Amphype was created near in time to the Authority's decision to delay its purchase
of a scoreboard in 2015.
a. The Arena did not advertise or otherwise publicly acknowledge its decision to
purchase a new scoreboard in 2016.
b. AmphXpe's project at the Arena constituted approximateltwenty-five percent
of all mphype's projects from September 2015 throughSeptember 2018.
C. Amphype:s project at the Arena accounted for approximately 81,5% of all of
Amphype s income from September 2015 through September 2018.
172. The total paid to Amphype for the provision and installation of the scoreboard was
$131,040. This was only $1,040 more than the $130,000 that had been authorized
Gindlespeimer 18-018
Page 53
to purchase a scoreboard in 2015 and the quotes issued in 2015 did not include
installation.
b. Between the cost of the scoreboard and the installation, the scoreboard
provided by Amphype was less cost than the option that had been
approved by the Authority Board in 2011K.
The cost of the actual scoreboard provided by Amphype was $94,500.
The cost of the scoreboard related to the approval in 2015 was
$114,746.
173. SMG, the Tomahawks and patrons at the Arena have been pleased with the new
scoreboard.
a. Other arenas and hockey clubs have been so impressed by the new
scoreboard that they have contacted SMG for information about the
scoreboard.
174. Questions regarding Gindlesperger's business relationship with SMG through the
Arena, as well as Ryan Gindlesperger's partnership with Amphype, ultimately
resulted in multiple articles appearing in local news media regarding the situation.
a. The majority of the County Commissioners authorized correspondence dated
August 3, 2018, to be sent to Gindlesperger as a result of the discovery and
exposure of Gindlesperger's and Ryan Gindlesperger's business relationship
with
igosun
the Arena and Authority respectively, which included, in part, the
following:
1 Condemnation of Gindlesperger's actions as a Member of the
Authority Board for, in part, the following',
aa. The Authorit s purchase of a scoreboard from Amphype of
which Ryan 6ndlesperger was a fifty percent owner;
bb. The Authority's failure to follow public bidding requirements in
making the purchase; and
cc. The rental of storage space for coolant fluid (e.g. glycol) during
the Arena floor renovations.
2. A request for Gindlesperger's immediate resignation from the
Authority Board.
aa. The County Commissioners concluded that without immediate
definitive action, Gindlesperger would continue to abuse his
position as Chairman of the Authority Board.
bb. The County Commissioners determined that the need existed
for Gindlesperger to be removed from his position of trust and
responsibility with the Authority immediately.
3. Notification that a replacement for Gindlesperger was to be named at
the County Commissioner's August 16, 2018, regular meeting
regardless of whether Gindlesperger resigned.
b. The correspondence was signed by County Commissioners Tom Chernisky
and William Smith.
Gindlesperger, 18-018
Page 54
County Commissioner Mark Wissinger did not sign the document.
175. Gindlesperger submitted a letter dated August 14, 2018, to the Authority Board
effectively resigning his position as a Member and Chairman of the Authority Board.
a. Gindlesperger's letter referenced the August 3, 2018, correspondence he
had received from the County Commissioners.
b. Gindlesperger's letter documented his choice to resign without commenting
on the statements contained within the County Commissioner's August 3,
2018, correspondence.
THE FOLLOWING FINDINGS RELATE TO GINDLESPERGER'S FAILURE TO
DISCLOSE HIS GOVERNMENTAL ENTITY, OCCUPATIONIPROFESSION, AND
SOURCES OF DIRECT/INDIRECT INCOME IN EXCESS OF $1,300.00 ON HIS 2013
AND 2014 CALENDAR YEAR STATEMENTS OF FINANCIAL INTERESTS AND
FAILURE TO DISCLOSE ALL REPORTABLE OFFICEIDIRECTORSHIPIEMPLOYMENT
AND FINANCIAL INTEREST IN ANY LEGAL ENTITIES ENGAGED IN BUSINESS FOR
PROFIT ON HIS STATEMENTS OF FINANCIAL INTERESTS FILED FOR THE 2013
THROUGH 2O16 CALENDAR YEARS.
176. Gindlesperger was required to file Statements of Financial Interests ("SFIs") by May
1 st annually in hV
osition as a Member of the Authority Board for calendar years
2013 through 20
177, Information to be disclosed on SFIs filed by public officials and public employees is
mandated by Section 1105 of the Ethics Act.
a. Section 1105(b), Subsections 1-10 identify specific information to be
disclosed as well as exceptions to disclosure requirements when applicable.
Section 1105(b)(1) mandates disclosure of the following on
Statements of inancial Interests filed:
"Name, address, and public position."
2. Section 1105(b)(2) mandates disclosure of the following on
Statements of Financial Interests filed:
"Occupation or profession."
3. Section 1105(b)(5) mandates disclosure of the following on
Statements of Financial Interests filed.
"The name and address of any direct or indirect source
of income totaling in the aggregate $1,300 or more."
4. Section 112b)(8) mandates disclosure of the following on
Statements of inancial Interests filed:
"Any office, directorship or employment of any nature
whatsoever in any business entity."
5. Section 1105(b)(9mandates disclosure of the following
on Statements of inancial interests filed.
"Any financial interest in any legal entity engaged in
business for profit."
Gindiesperger, 18-018
Page 55
178. On April 17, 2018, an SH compliance review was conducted for the Authority at the
Arena.
a. Gindlesperger's SFIs for calendar years 2013 through 2016 were obtained
from the Arena General Manager on April 17, 2018.
b. A review of Gindlesperger's SFIs identified that Gindlesperger had filed
amended SFIs for calendar years 2015 and 2016 on February 20, 2018.
179. Gindlesperger filed SFIs for calendar years 2013 through 2016 as follows:
Form Date
For Calendar Year
March 24, 2014
2013
April 22, 2015
2014
February 20,
2015
2018*
February 20,
2016
2018*
*Represents Gindlesperger's amended forms filed.
180. Gindlesperger failed to disclose or otherwise identify the Authority as his specific
governmenlial entity on his SFIs filed for calendar years 2013 and 2014.
a. Gindlesperger's 2013 and 2014 calendar year SFIs document only
"Authority" as Gindlesperger's governmental entity.
181. Gindlesperger failed to disclose or otherwise identify his self-employment as his
occupation or profession on his SFIs filed for calendar years 2013.
a. Gindlesperger's 2013 and 2014 calendar year SFIs document only "Member'
as Gindlesperger's occupation or profession.
182. Gindlesperger failed to disclose Allehenpi Field Services ("AFS") and/or Allegheny
p
Manufacturini& Electrical Service ('AM S") as direct/indirect sources of income on
his SFIs filed or calendar years 2013 and 2014.
a. Gindlepeers 2013 and 2014 calendar year SFIs each are checked "None"
regarding direct or indirect sources of income.
b. Gindlesper er received income in excess of $1,300,00 in calendar years
2013 1 114 from AFS.
C. Gindles erger received income in excess of $1,300.00 in calendar year 2013
from AMES.
183. Gindlesperger failed to disclose his position as the Vice -President of AMES on his
SFIs i Ie forcalendar year 2013 an 2014 under office, directorship, or employment
in any business.
a. Gindlesper er held the office of Vice -President for AMES in calendar years
2013 It, 14.
Gindlesperger's role at AMES is passive
b. Gindlesperger's 2013 and 2014 calendar year SFIs noted only AFS under
office, directorship, or employment in any business.
Gindles�pg eer, 18-018
P —ag-e--M
1. Gindlesperger's role was active as to AFS.
184. Gindlesperger failed to disclose his financial interest in AMES and 1st Team
Advertising (1 'It Team) on his SFIs for calendar years 2013 and 2014 as well as AFS
Holdings on his SF'ls filed for calendar years 2013 through 2016 as legal entities in
business for profit.
a. Gindlesperger maintained a 20% interest in AMES and a 44% interest in 1st
Team in calendar years 2013 and 2014.
1 Gindlesperger's 2013 and 2014 calendar year SFIs noted only AFS
regarding his financial interest in any legal entity in business for profit.
aa. AFS was Gindlesperger's source of W2 income in 2013 and
2014.
b. Gindlesperger maintained a 50% interest in AFS Holdings in calendar years
2013 through 2016.
Gindlesperger's 2013 and 2014 calendar year SFIs noted only AFS
regarding his financial interest in any legal entity in business for profit.
2. Gindlesperger's 2015 and 2016 calendar year SFIs noted only AFS
and AMES regarding his financial interest in any legal entity in
business for profit.
185. Gindlesperger has agreed to file amended SFIs to remedy any issues raised herein.
Ill. DISCUSSION:
As a Member of the Cambria County Arena Authority ("Authority") Board of Directors
("Board") from January 1, 2006, to August 14, 2018, Respondent Dean Gindlesperger, also
referred to herein as "despondent,'" "Responde-i-it Gindlesperger,"' and "Gindlesper er," was
a public official subject to the visions of the Public Official and Employee Ethics Act
("�thics Act'), 65 Pa'.C.S. § 1101 et §Leg.
The alleyations are that Gindles erger violated Sections 1103(a), 1103(
1105(b)(1), 110(b�(2�,1105�b�(r,)11 05(b)�8), and 11 05(b)%of the Ethics Act, 65 Pa.C.91
§§1103(a),110"' , 105(b)1 4i05(b)(2),1105(b)(,5),110 (b)(8), and 1105(b)(9):
(1) When he utilized the authorit of his public position for the
private pecuniary benefit or himself, a member of his
immediate family, and/or a business with which he/immediate
family is/are associated, when he participated in discussions,
decisions and/or actions of the Authority Board to award/modify
a contract with SMG, the contracted manager of the arena now
known as "1st Summit Arena the Cambria County Arena"
also referred to herein as Ne "Arena"), at a time when
Gindlesperger, members of his immediate family and/or a
business with which he/immediate fami is/are associated
were engaged in business dealings with SMG;
(2) When contracts valued over $500.00 were entered into
between Gindlesperger, members of his immediate family
and/or a business with which he/immediate family is/are
associated and SMG absent an open and public process;
Gindlies egrger, 18-018
P — 2ge
(3) When Gindlesper er took action as a Member/Chairman of the
Authority Board ?Co enter into a contract with Amphype, a
business with which his son is associated, for the
purchase/installation of a scoreboard for the Arena;
(4) When Gindlesperger, as Member/Chairman of the Authority
Board, entered into a contract valued over $500.00 wit
Amphype, a business with which his son is associated, for the
purchase/installation of a scoreboard for the Arena absent an
open and public process; and
(5) When he filed deficient Statements of Financial Interests
("SFIs") by failinq to disclose his governmental entity,
occupation/profession, and all sources ofdirect/indirect income
in excess of $1,300.00 on SFIs filed for the 2013 and 2014
calendar years, and failed to disclose all reportable
office/directorship/employment and financial interest in any
legal entities engaged in business for profit, on SFIs filed for
the 2013, 2014, 2015 , and 2016 calendar years.
Pursuant to Section 11 03(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 following terms relevant to Section 11 03(a) are defined in the Ethics Act as
follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public
u b lic 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.
"Authority of office or employment." The actual
power provided by law, the exercise of which is necessary to
the performance of duties and responsibilities unique to a
particular public office or position of public employment.
"Immediate family." A parent, spouse, child, brother or
sister.
Gindles er er, 1 8-01 8
P—ag—e
"Business." Any corporation, partnership, sole
proprietorship, firm, enterprise, franchise, association,
organization, self-employed individual, holding company, joint
stock company, receivership, trust or any legal entity organized
for profit.
"Business with which he is associated." Any
business in which the person or a member of the person's
immediate family is a director, officer, owner, employee or has
a financial interest.
"Financial interest." Any financial interestin a legal
entity engaged in business for profit which comprises more
than 5% of he equity of the business or more than 5% of the
assets of the economic interest in indebtedness.
Section 1103(a) of the Ethics Act prohibits a public official, ublic,employee from
in the authority or confidential information received by
le ecuniary benefit of the public official/public
us u ��ic f the private ut 0 nt ofp
holding 'in h a
fisimm P tfamil , or a business with which he or a
u s public
licposition
beroor h ed a e employee g himself, member y
f immediate il it member
ber 0 his family
isassoc a ed
Section 11 03(f of the Ethics Act imposes certain restrictions as to contracting:
§ 1103. Restricted activities
(f) Contract. —No public official or public employee or
his spouse or child or any business in which the person or his
spouse or child is associated shall enter into any contract
valued at $500 or more with the governmental body with which
the public official or public employee is associated or any
subcontract valued at $500 or more with any person who has
been awarded a contract with the governmental body with
which the public official or public employee is associated,
unless the contract has been awarded through an open and
public process, including prior public notice and subsequent
public disclosure of all proposals considered and contracts
awarded. In such a case, public official or public employee
shall not have any supervisory or overall responsibility for the
implementation or administration of the contract. Any contract
or subcontract made in violation of this subsection shall be
voidable by a court of competent jurisdiction if the suit is
commenced within 90 days of the making of the contract or
subcontract.
65 Pa.C.S. § 11 03ft
The term "contract" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Contract" An agreement or arrangement for the
acquisition, use or disposal the Commonwealth or a political
subdivision of. consulting n or other services or of supplies,
s, e i gd material ui�ment, Ian or other personal or real property.
The term I not mean an agreement or arrangement
Gindlesperger 18-018
Page 69
between the State or political subdivision as one party and a
pu
blic official or public employee as the other party, concerning
is expense, reimbursement, salary, wa 5 le I retirement or other
benefit, tenure or other matters in consideration of his current
public employment with the Commonwealth or a political
subdivision.
65 Pa.C.S § 1102. An authority created by a county is a "political subdivision" as the
Ethics Act defines that term. Id.
Section 1103(f) of the Ethics Act provides in part that no public official/public
employee or his louse or child or business with which the public official/public employee
or his spouse or child is associated may enter into a contract with his governmental body
valued at five hundred dollars or more or any subcontract valued at five hundred dollars or
more with any person who has been awarded a contract with the overnmental body with
which the public official/ ublic employee is associated unless contract is awarded
through an open and public process including prior public notice and subsequent public
disclosure of all proposals considered and contracts awarded.
Section 11 05(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 pu lic position.
Section 1105(b)(2) of the Ethics Act requires the filer to disclose on the SFI his
occupation or profession.
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.
Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any
office, directorship or employment in any business entity.
Section 1105(b)(9 of the Ethics Act requires the filer to disclose on the SFI any
financial interest in any ieal entity engaged in business for profit. The term "financial
interest" is defined in the Ethics Act as set forth above.
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.
Back -ground:
The Authority was created by the Cambria CountK ("County") Commissioners in
1949. Respondent Gindles ergerservedasaMemberoft eAuthonty Board from January
1, 2006, to August 14, 2019. indlesper er served as Chairman of the Authority Board
from at least July 23, 2012, until August 1T 2018. The Authority Board consists of seven
voting Members and one non -voting Member.
The Authority Board is currently responsible for the guidance, support, and overall
oversight of the Arena. Day-to-day operations and decision -making at the Arena are
current, performed by a contracted privately -owned facilities management company
named 'SG,"
The Arena currently maintains two separate accounts at Ist Summit Bank, referred to
herein as Account Number 1 and Account Cber 2. The Authority maintains complete
Gindlescemer, 18-018
Page 60
control over Account Number 1, which is utilized for payment of wages to Authority
employees, capital improvements/purchases, and debt reduction. Checks from Account
Number I require the live signature of two authorized signatories. Signature authority over
Account Number 1 is maintained by the Authority Roard Chairman, Vice -Chairman,
Secretary, and Treasurer. SMG maintains complete control over Account Number 2, which
is utilized for Arena operational expenses such as payment to/for utilities, entertainers,
in
surance, nsurance, management fees, and the like. Signature authority over Account
Number 2 is maintained by various SMG representatives. -Bills/expenses paid b SMG for
Arena operations through the SMG-controlled account (Account Number 21� are not
presented, reviewed, approved, or otherwise ratified by the Authority Board. SMG
maintains sole autonomy in relation to payment of Arena operational expenses and can
make such payments without Authorityor Authority Board approval. Capital improvements
to be implemented at the Arena require presentation to,
and approval of, the Authority
Board.
The Authority is required to follow the bidding requirements of the Pennsylvania
Municipality Authorities Act ("Municipality Authorities Act"), 53 Pa.C.& § 5601 et 7o seq. In
addition to bidding requirements, the Municipality Authorities Act states the To — wing
concerning conflicts of interests:
(e) Conflict of interest. — No member of the authority or officer
or employee of the authority may directly or indirectly be a
party to or be interested in any contract or agreement with the
authority if the contract or agreement establishes liability
against or indebtedness of the authority. Any contract or
agreement made in violation of this subsection is void, and no
action may be maintained on the agreement against the
authority.
53 Pa.C.S. § 5614(e). The Authority maintains Bylaws which also address conflicts of
interest.
The Authority's Contract with, SMG:
The Authority entered into an initial Agreement/contract with SMG dated August 5,
2009, for SMG to provide management services including operations and marketing for the
Arena. The initiaA greement between the Authority an SMG provided for an initial term
from August 15, 20 9, through June 30, 2014, with an automatic extension of five years,
unless either party provided written notice to the other of its intent not to renew at least 180
days prior to expiration.
At the June 25, 2012, regular meeting of the Authority Board, Gindlesperger
appointed a Contract Review Committee con i ti of himself and Authority Board
(embers Marty Kuhar ("Kuhar") and George Arcurio 'Arcurio"), During the approximate
time period of March 2013 through June 2014, Gindlespergerwas present and participated
in multiple meetings between the Contract Review Committee and SMG representatives
relating to contractnegotiations between the Authority and SMG. Gindlesperger was the
primary Authority representative involved in the contract discussions/negotiations. As a
result of the meetings held between March 2013 and June 2014, an amendment to the
Augusts, 2009, Management Agreement was executed on July 10, 2014, bythe Authority,
the C County, and SMG. The amendment extended SMG's management term throat June
30, 2019. The amendment was signed by Gindlesperger on behalf of the Authority. y. The
County Commissioners formally approved the amendment via unanimous vote at the July
10, 2014, Commissioners meeting. The Authority Board formally approved the amendment
via unanimous vote at the July 28, 2014, Authority Board meeting, Gindlesperger was
present at the July 28, 2014, Authority Board meeting and voted in favor of approving the
first amendment to the SMG contract.
Gindlesper er, 18-018
Page 61
A second amendment to the SMG contract was negotiated from January 2017
through June 2017. The Authority Contract Review Committee consisted of Gindlesperger,
Arcurio, and Kuhar. Gindlesperger was present and participated in multiple meetings in
relation to contract negotiations between the Authority and SMG. Gindlesperger was one
of the primary. otiations,
Representatives Authority representatives involved in the contract discussions/neg
If of SMG included SMG General Mana er
Stephen St. John (`"St. John"}. A second amendment to the original August 5, 2099,
Management Agreement was executed on July 1, 2017, by the Authority, the County, and
SMG. The amendment was signed by Gindlesperger on behalf of the Authority. The
Authority Board formally approved the amendment via unanimous vote at the May 22,
2017, Authority Board meeting. Gindlesperger as present at the May 22, 2017, Authority
Board meetingand voted in favor of approving the second amendment to the SM
contract. The County Commissioners formally approved the amendment via unanimous
vote at the July 12, 2017, Commissioners meeting.
Re: Storage of Glycol Solution and Arena Equipment at an Alleq_heny Field Services
Warehouse:
In 2013-2014 the County was awarded government grants for renovations at the
Arena, The County entered into an agreement dated December 18, 2014, with the
Cambria County Redevelopment Authont ("Redevelopment Authority") for the
administration, management, and operation o?the grant programs and construction of the
project.
On January 15, 2015, the Redevelopment Authority Board ratified entering into an
agreement with a business named "CJL Engineering" for the design and construction of the
Arena's Ice Rink Replacement Project.
In 2016 the Redevelopment Authority entered into a contract with a business named
"32 Degrees, LLC" ("32 Degrees") owned by Bruce Graham ("Graham"), for work that
included removing a refrigerant named "glycol solution" from the existing system piping,
storing the glycol solution during the work on the ice rink, and assisting in the reinstallation
of the glycol solution to the refurbished system. Although the term "storage" was not
defined within the Redevelopment Authority's contract with 32 Degrees, pre -contract
discussions in 2015 between Graham and an SMG representative (who at that time was
the General Manager of the Arena) had resulted in the understanding that Graham was to
place the glycol solution in containers and the containers were to be placed in the Arena
concourse until re -introduced into the renovated system.
Graham removed the glycol solution from the Arena's system in May 2016. The
glycol solution was placed in 19 - 20 storage containers, and the storage containers were
initially placed in the Arena concourse.
St John, who became the on -site SMG General Manager in December 2015,
informed Graham that the containers needed to be moved to an off -site location. Graham
declined responsibility for off -site storage of the containers per the understanding reached
with SMG's prior General Manager in 2015.
At St. John's direction, the ycol containers were moved from the Arena concourse
into another area of the Arena. Sull'sequently, St. John independent made the decision to
move the containers to an area outside of the Arena building. Xwever, shortly after
moving the containers outside of the building, St. John received information that plycol is
not to e stored in an area exposed to suni ht as sunlight can cause glycol to grade.
With the glycol having a value of between $T( eO,000-$90, 00, St. John viewed the need to
find storage for the glycol as an emergency.
St. John subsequently contacted and informed Gindlesperger, as Chairman of the
Authority Board, of the situation regarding the glycol and the need for a storage location.
Gindlesperger 18-1018
Page 62
As the Authority Board Chairman, Gindlesperger was St. John's primary Authority contact.
St. John sought guidance from Gindlesperger as an Authority Board Member for contacts in
the Greater Johnstown area at which t9e glycol containers could potentially be stored. In
response to St. John's question, Gindlesperger offered the use of a warehouse at 619
Elder Street, Johnstown, Pennsylvania ('619 Elder Street") to store the glycol containers.
The warehouse at 619 Elder Street was owned by Allegheny Field Services ("AFS"),
a business that Gindlesperger partially owned. The warehouse located at 619 Elder Street
provided approximately- 12,000 square feet of available storage space. The 19 —
20 glycol containers required a footprint of less than 400 square feet for storage. However,
in addition to the glycol, St. John wanted to store other Arena equipment at the warehouse.
Once Gindlesperger offered use of 619 Elder Street, St. John did not seek any other
storage space. Gindlesperger and St. John agreed to a fee of $1,200.00 per month for use
of theproperly/warehouse at 619 Elder Street as a storage location for the I Col. Use of
AFS's forklift and flatbed truck to transport the glycol was included within the F,200.00 fee.
No written contract was executed for the rental of the warehouse space.
The glycol containers remained in storage at 619 Elder Street from aNproximately
mid -June 2 16 through approximately early/mi%eptember2016. Neither ndlesperger
nor St. John informed the Authority Board Members at that time of the need for such
storage or the arrangement to store the glycol solution at the AFS warehouse.
AFS submitted three separate invoices totaling $3,600.00 directly to the Arena for
payment e n relation t the rental of warehouse space at 619 Elder Street. The County
*d he aforesaid
three AFS invoices via check number 4297,
u i io m t 0 �3 '600 YmAuthor, paid
Redevelopment t
dated Se te ber 76201 i n the amount f .00, which check was deposited into an
AFS ban account n September 14,
4,201 6
After the usable glycol had been returned to the Arena, St. John sought to continue
the rental of warehouse space at 619 Elder Street for storage of various Arena materials,
fixtures' equipment, and the like. St. John and Gindlesperger discussed the Arena
u
contin o rent warehouse space at 619 Elder Street on a month -to -month basis. St.
John informed Gindlesperger Turing the negotiation that the Arena could not afford the
previously established rental rate of $1,200.00 per month. St. John and Gindlesperger
ultimately negotiated/agreed upon a rate of $600.00 per month for the Arena's rent Of
storage space at 619 der Street. St. John did not independently research or seek out
additionalrental rates for storage of Arena materials and equipment. This lease agreement
between AFS and St. John for use of the warehouse space at 619 Elder Street was
effective as of September 2016. No written contract existed regarding the lease
agreement. As an operational expense for the Arena, SMG had authority to enter into the
lease with AFS without Authority Board authorization.
AFS maintained a business relationship with the Arena regarding the Arena's rental
of stora e space at 619 Elder Street at all times during which the Authority through its
Contracy Review Committee), SMG, and the County actively negotiated and ultimate[
approved the second amendment to the existing SMG contract, Gindles erger and S�
John were active participants in the negotiations for the Authority and SMG respectively.
The subject of leasing of storage space at 619 Elder Street was not disclosed to the
Authority Board as a whole until the Authority Board's July 24, 2017, meeting when
Gindlesperger disclosed the then -existing rental arrangement for $600.00 per month but did
not mention the prior lease for storage of glycol solution. Gindlesperger indicated that he
did not know if the rental arrangement should be voted on and approved by the Authority
Board or if it was an operations issue. Gindlesperger asked the Authority Solicitor what
should be done, and the Solicitor advised St. John to obtain other warehousing quotes for
comparison and as long as Gindlesperger's rate was the lowest reasonable price it was
fine. The Authority Board subsequently voted that St. John obtain at least three quotes for
Gindlesperger, 18-018
Page
storage of Arena materials with the same terms and conditions as currently held.
Gindlesperger abstained from the vote.
At the Authority Board's October 23, 2017, regular meeting, St. John presented only
one price quote to the Board for consideration, which quote was hi her than the monthly
fee for the AFS warehouse. Gindlesperger did not remove himself from the discussion.
Although multiple Authority Board Members expressed support for continued usellease of
the AFS warehouse the Authority Board never voted to approve use of the AFS warehouse
at 619 Elder Street for storage of Arena materials at any monthly rate.
At the December 18, 2017, Authority Board meeting, Gindlesperger disclosed the
prior agreement entered into with St. John to store the glycol solution for the Arena during
the 2016 renovations,
AFS continued to lease warehouse space at 61 Elder Street to the Arena for
material and equipment storage at the rate of $600.00 per month into August 2018, with no
formal Board vote. The Arena ceased use of the warehouse at 619 Elder Street for storage
purposes as of September 2018 at or about the time Gindlesperger resigned from the
Authority.
After terminating the lease arrangement with AFS, the Authority (via SMG) entered
into a lease for warehouse/storage space with another entity whereby the Authority leases
5,000 square feet at a cost of $1 „000 per month.
During the time frame of September 2016 through August 2018, AFS submitted a
total of twenty-four invoices to the Arena for payment in association with the rental of
warehouse storage space at 619 Elder Street. From approximately September 2016
through August 2018, AFS, a business with which Gindlesperger is associated, received
twenty-three checks from the SMG-controlled Arena (Operating Account at 1 st Summit Bank
(Account Number 2) totalingg $14,400.00 for the storage of Arena materials and equipment.
Each of the twenty-three cF�ecks which Gindlesperger/AFS received were deposited into
AFS s business checking account at 1 Summit Bank.
Gindlesperger voted in favor of approving the overall SMG operatingg budget for the
Arena, which exceeded $1,000,000, at the Authority Beard's July 24, 2017, regularly
scheduled meeting at a time when AFS had been receiving monthly payments from the
SMG-controlled operating account since September 2016.
Re: Purchase of a Scoreboard for the Arena from Amphype Si ns LLC:
In 2015 the Authority Board considered obtaining a new scoreboard for the Arena in
association with Johnstown winning the "2015 Hockeyville USA"' contest. As the contest
winner, Johnstown had the opportunity to host a National Hockey League ("NHL") pre-
season game and to receive $150,000.00 for Arena upgrades.
At its June 22, 2015, regular meeting, the Authority Board approved the purchase of
a scoreboard and transport cart in an amount not to exceed $130,000,00 excluding
installation charges or costs. Gindlesperger was present and voted in favor of the motion.
Subsequent concerns reggarding the scoreboard's hoist system and load capabilities
led to CJL Engineerin completingg an analysis/inspection of the existing hoistsyystem at
the Arena on or aboutAugust 17, 2015. CJL Engineering determined that the existing hoist
beams could support a new scoreboard weight of approximately 1,500 pounds without
additional bracing. The estimated weight of the new scoreboard under consideration at that
time was almost 500 pounds above the 1,500 pound limit. However, the hoists were
determined to have the capability of supporting the weight of a new scoreboard provided
the roof could structurally support the weight. The inspection also revealed that minor
electrical repairs were needed.
Gindlesperger, 18-018
Page fj4
In an August 19, 2015, email to the President of the Cambria County Student
Hockey League, representatives of the Johnstown Tomahawks, Hockey Club
UTomahawks ), CJL Engineering representatives, and Arena representatives,
dlesperger stated that: 1) Gindlesperger had instructed that a new scoreboard not be
ordered until the Authority Board had a signed document from CJL Engineering that the
hoist beams were structurally sound to withstand the load of the scoreboard, rigging, and
snow; and (2) a company had been contacted to examine the existing scoreboard circuitry
as a contingency plan if the window closed on ordering the new scoreboard.
At the August 23, 2015, regular Authority Board meeting, Jim Carthew ("Carthew") of
CJL Engineering explained that the Authority had missed the window of opportunity to
obtain and install a new scoreboard prior to the Arena NHL pre -season game. Carthew
recommended renovating the existing scoreboard and considering the new scoreboard and
hoist system at a later time. Gindlesperger affirmed his support of Carthew's
recommendation and proposed continuing the process to order a new scoreboard for
possible installation prior to the Tomahawks' home opener. Gindlesperger specified that
the scoreboard the Authority was considering at that time was considerably less money
than the original scoreboard app roved for purchase, which was too heavy.
On September 11, 2015, two businesses named "Adlink Communications, LLC"
("Adlink") an "Eight One Four Holdings, LLC" ("Eight One Four") organized a third
business named "Amphype Signs, LLC" (`Amphy�e) through the Pennsylvania Department
of State. Amphype did not exist prior to Septem er 11, 2015. Adlink and Eight One Four
each own 50 Yo of Amphype.
Adlink is a Johnstown -based business involved in electronic sign sales and digital
and vinyl billboard advertising. Daniel Kennedy ("Kennedy") has been he sole interested
member/owner of Adlink since inception.
Eight One Four is a Johnstown -based holding company through which IsTearn
Advertising, LLC, and Whiteridye Properties, LP, are organized, managed, and controlled.
Respondent's son, Ryan Gindlesperger, has been the sole interested member/owner of
Eight One Four since inception. Ryan Gindlesperger denies that his father knew of his
association with Amphype.
However, from September 11, 2015, to September 16, 2016, Amph e maintained a
registered office address and received mail at a propert owned XrS Holdings, a
e I business ipn which Gindlesperger has an ownershipinferrest. Amphype had no physical
office space at the AFS Holdings property.
Amphype has no internal manufacturing or installation components related to its
operations�h Amphype obtains its LED signs, billboards, and the like through a company
located in California. Amphye utilizes the services of SKE Designs, Signs, and Graphics
(hereafter "S E Designs"') located in Everett, Pennsylvania, lor installation services.
Amphype has no employees or interested individuals with the exception of Kennedy and
Ryan Gindlesperger.
At the October 26, 2015, regular Authority Board meeting, in response to an
Authority Board Member's request for an update regarding a scoreboard, Gindlesperger
indicated as follows: (1) there had not been enough Ce to get the tests done and get the
scoreboard built; (2) the Authority needed to decide what it wanted in a scoreboard; (3)
nothing was in place to obtain a scoreboard at that time; ando) the Authority needed to
ensure its "house" was in order financiall before moving on irresponsibly and spending
more money. Amphype had been create7approximately one and one-half months prior to
the October 26, 2015, Authority Board imeeting.
There was no discussion regarding a new scoreboard at Authority Board meetings in
Gindles er er, 18-018
1�a§fflgmg-1
November and December 201 V
Gindlesperger was absent from the Authority Board's January 25, 2016, regular
meeting. During that meeting, both St. John and the Vice Chairman of the Authority
indicated that Gindlespercler had made contact with someone re ardingascoreboard. St.
John also indicated that he believed the entity was a loca?company and that the
individual's name might be "Kennedy."
Gindlesperger initiated contact between Kennedy and the Authority/St. John
regarding anew scoreboard for the Arena. On February 118, 2016, Kennedy contacted St.
John in relation to providing a new scoreboard to the Arena through Amphype. St. John
requested information regarding the scoreboard via email from multiple sources, including
Gindlesperger, as detailed in the chart at Fact Finding 131.
At the Authority Board's February 22, 2016, legislativei scoreboard
meeting, Gindlesperger
initiated discussion re arding the need for a new at the Arena during which
Gindlesperger stated t�iat a new scoreboard was needed, Gindlesperger did not see how
the Authority could "even consider" putting the existing scoreboard back uthe next year,
and doing so would be a "total embarrassment." Another individual brought up PC
scoreboards, and Gindlesperger stated that it was definitelysomething to look at as It was
much less expensive. St. John confirmed that he would ook into PC scoreboards. St.
John announced that he had a group coming to the Arena that weekend to provide a quote
for a scoreboard and address potential challenges. Kennedy (Amphype) and an SKE
representative was the "group" referenced by St. John.
On February 23, 2016, St. John forwarded to Kennedy the emails and attachments
he had received from Gindlesperger on February 18, 2016, Kennedy's receipt of the
emailed information from St. John resulted in contact between individuals directly related to
the purchase of a new scoreboard for the Arena as detailed in Fact Finding 137.
The topic of a new scoreboard for the Arena was again specifically
referenced/presented by Gindlesperger at the Authority's June 27, 2016, regular meeting.
Gindlesperger expressed possible concerns regarding the operational condition of the
original scoreboard. Subsequent to Gindlesperger's statements, a question was posed
regarding the Authority's receipt f a study on the type and price of the scoreboard needed.
Gindlesperger expressed his understanding t �here was a study, but he had not seen
anything In writing and the Authority did not yet have a for the scoreboard. St. John
commented that Kennedy had been working on the scoreboard, but St. John had not heard
from Kennedy in a while. Gindlesperger verbally identified Kennedy as "Dan Kennedy"
during St. John's explanation. During the board discussion, Gindlesperger directed
St. John to get in touch with Kennedy "or whoever else" because the Authority had to get
movin have the scoreboard built and installed at the Arena. St. John expressed is
belief g t weightatthe capacity was one of the last things s Kennedy had requested regarding
the scoreboard. indlesperger affirmed St. John's
response, and also expressed his belief
that Kennedy was waiting for the weight capacity information.
At Gindlesperger's. direction, St. John scheduled a meeting with Kennedy. The
meeting took place on July 15, 2016. St. John and Kennedywere the only participants in
the meeting. Kennedy arrived at the meeting with two quotes detailing the cost of a new
scoreboard and accompanying expenses.
Immediately after the July 15, 2016, meeting between Kennedy and St. John,
3 Commencing January 19, 2016, there was telephone activity at various significant points in time arnon
individuals involved in the purchase of a new scoreboard for the Arena. These individuals included
g
Gindlese rerand Ryan Gindlesperger. The Investigative Division of the Commission was unable to confirm
the content of these conversations. Gindlesperger asserts that any that involved him and his son were
unrelated to the scoreboard and/or Amphype.
Gindleswr, 18-018
eggg
contacts were made among GindlesTerger, St. John and Kennedy regarding a new
scoreboard for the Arena. n July 18, 2016, multiple emails were exchanged between
Kennedy, St. John, and/or Gindlesperger in relation to the potential purchase of a new
scoreboard for the Arena from Amphype as shown in Fact Finding 147.
Gindlesperger ultimately reviewed the quotes received and selected Amphype
Quote No. 160320. Gindlesperger did not present any information for consideration to the
Authority Board as a whole at any public meetin regrding the quotes received from
Amphype.
The purchase of a scoreboard from Vp .Amphype was never presented to the
Aut ority Board as a whole at any public meeting for approval via formal vote.
Gindlesperger contacted the Authority Solicitor on September 9, 2016, and was told that
since the Authority Board had previously authorized a purchase in 2015 and this
authorization had not been rescinded, it was okay to order the new scoreboard and get
ratification at the next Authority Board meeting. The Authority Solicitor never advised
Gindlesperger or the Authority Board that the purchase of the new scoreboard needed to
be publicly bid.
On September 13, 2016, Arcurio emailed St. John and Gindlesperger to inform them
that he had secured funds through 1st Summit Bank to purchase the scoreboard and to
address some additional issues. Arcurio's email also inormed St. John that Arcurio and
Gindlesperger were meeting with the bank on September 15, 2016. Arcurio requested that
St. John attend the meeting and bringany information he had on the scoreboard. St. John
subsequently informed Kennedy thalfunding for the scoreboard was in place, and Kennedy
en into a purchase agreement between Amphype and his California supplier later that
same day, September 13, 2016.
On or about September 19, 2016, the Authority submitted a commercial loan
application to 1st Summit Bank. Gindlesperger signed the commercial loan application as
Chairman of the Authority Board. V Summit Bank approved the Authority's loan
application on or about September 26, 2016. As Chairman of the Authority Board,
Gindlesperger signed a document accompanying the loan approval, letter affirming
understanding of the terms and conditions of the loan. The commercial loan was not
scheduled for closing until December 20, 2016.
On or about September 27, 2016, Kennedy provided St. John with Invoice/Quote
No. 160320 for execution, and St. John provided Kennedy with Authority Check Number
1275, dated September 27, 2016, payable to Amphype. Gindlesperger signed Check
Number 1275 on behalf of the Authority as one of two required authorized signatories.
Kennedy de osited Authority Check Number 1275 into an Amphype bank account on
October 5, 2E1 6. Kennedy and Ryan Gindlesperger are the only two authorized signatories
on the account.
On October 8, 2016, Gindlesperger signed the contract between the Authority and
Amphype as the "Authorized Buyer."
At the Authority Board's October 24, 2016, regular meeting, Gindlesperger
participated in the unanimous vote of the Authority Board to accept the Treasurer's Report,
which identified issuance of Authority Check Number 1275.
On December 20, 2016, the Authority and the Arena closed on the commercial loan
with I s' Summit Bank which included funding for the new scoreboard. The Authority Board
d a Resolution on December 20, 2016, authorizing the loan. As Chairman of the
Authority Board, Gindlesperger signed the Resolution as well as the Loan Agreement, the
Note, and the General Security Agreement associated with the commercialoan.
The LED display screens and cabinetry ma in k' g up the scoreboard were delivered
directly to SKE Designs for assembI and installation at the Arena. SKE Designs
transported the equipment/materials rco the Arena on December 27, 2016, and the
Gindlespemer, 18-018
Vage (it
scoreboard was installed from December 27, 2016, to December 28, 2016.
On December 29, 2016, Kennedy and Ryan Gindlesperger provided training in the
Arena press box on the operational aspects of the scoreboard.McIlesperger was present
in the press box while Pyan Gindlesperger actively participated in the training session.
Ryan ndlesperger subsequently ran and/or provided live training on the scoreboard to
Arena representatives during Tomahawks games. Gindlesperger was witnessed in the
Arena press box while Ryan Gindlesperger was actively operating the scoreboard.
Gindlesperger and Ryan Gindlesperger spoke briefly to one another d-uring the training.
On or after December 31, 2016, Kennedy delivered an updated copy of
Invoice/Quote Number 160320 to Gindlesperger outlining the remaining balance due forthe
scoreboard. St. John emailed the final Amphype Invoice/Quote to Arcurio, who contacted
1 st Summit Bank requesting the release o funds for the scoreboard.
1st Summit Bank subsequently generated Treasurer's Check Number 453885, dated
January 23, 2017, �ayable to Amphype in association with the Authority's commercial loan
used to purchase he scoreboard. t the Authority Board's January 23, 2017, meeting,
Gindlesperger participated in the unanimous vote nn roving the Treasurer's Report that
included issuance of 1st Summit Bank Treasurer's Check umber 453885 to AmphMe.
Kennedy deposited Check Number 453885 into an Amphype account on January 31, 2017.
Amphype was created near in time to the Authority's decision to delay its purchase
of a scoreboard in 2015. The Arena did not advertise or otherwise publicly acknowledge its
decision to purchase a new scoreboard in 2016. The total paid to Arrighype for the
provision and installation of the new scoreboard at the Arena was $131,04 . Amphype's
project at the Arena accounted for approximately 81.5% of all of Amphype's income from
September 2015 through September 2018.
Questions regarding Gindlesperger's business relationship with SMG through the
Arena, as well as Ryan Gindlesperger's partnership with Amphype, ultimately resulted in
Gindlesperger,s resignation from the Authority Board by letter dated August 14, 2018.
On April 17, 2018, an SFI compliance review was conducted for the Authority.
Gindlesperger's SFIs for calendar years 2013 and 2014 failed to: (1) fully identify the
Authority as his specific governmental entity; �2) disclose his self-employment as his
occupation or profession;�3) disclose AFS and or Allegheny Manufacturing & Electrical
Service("AMES' as direct indirect sources of income; (4) disclose hisvosition as the Vice -
President of ) ES; and (5) disclose his financial interest in A ES and 1st Team
Advertising (1st Team). Gindlesperger also failed to disclose his financial interest in AFS
Holdings on his SFIs filed for calendar years 2013 through 2016. Gindlesperger has
agree to file amended SFIs to remedy issues raised herein regarding his SFIs For calendar
years 2013 through 2016.
Having highli kited the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to defermine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows,
3. The Investigative Division will recommend the following in
relation to the above allegations:
That a violation of Section 11 03(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a) occurred in relation to Gindlesperger,
while a Member of the Authority Board, having
entered into negotiations with SMG to lease
inc" erg18-018
in c " _f
ge
warehouse property owned by a company of
which Gindlesperger is an owner resulting in a
private, pecuniary benefit to that company.
That a violation of Section 1103(f) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
11 03(f occurred Zen a contract (the storage as
delineated above in Paragraph 3a) valued over
$500.00 was entered into between a business
with which he is associated and SMG/the
Authority.
C. Respondent denies having committed a violation
of the Ethics Act concerning the new scoreboard
at I st Summit Arena a, the Cambria County War
Memorial and denies having knowledge that his
son was a part owner in Amphype Signs, LLC.
Nevertheless and without admitting any violation,
for purposes of resolution given the terms of this
settlement, he agrees tha if this matter went to
hearing, the Investigative Division could, by
circumstantial evidence, meet the requisite
evidentiary standard and convince a fact finder
that he violated Section 1103(a of the Public
Official and Employee Ethics M, 615 Pa.C.S. §
11 03(a) in relation to Gindlesperger's
participation in the Authority Board's discussion
and official action to effectuate the
purchase/installation of a new -scoreboard,
resulting in a rrivate pecuniary benefit to
Amphype Signs, LC, a business partially owned
by his son.
d. Given the commitment in Paragraph 5 below, no
further action is sought regarding Mr.
Gindlesperger's Statement[s] of Financial
Interests filed for the 2013, 2014, 2015, and
2016 calendar years.
4. Gindlesperger agrees to make payment in the amount of
$20,00T in settlement of this matter.
Gindlesperger agrees to make a payment of
$18,000 payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania
State Ethics Commission after the issuance of
the final adjudication in this matter, which
payments relate to Paragraphs 3a and 3b above
since the contract for warehouse space is void
under 53 Pa.C.S. § 5614. Gindlespergerwill pay
this amount by payin9 $1,000 per month for a
period of eighteen (18 months.
Gindlesperger agrees to make a payment of
$2,000, representing a portion o the Costs
incurred by the Commission in the investigation
and enforcement of this matter, which shall be
made payable to the Pennsylvania State Ethics
I
Commission within sixty (60) days of the
issuance of the final adjudication in this matter,
Gindlesperger agrees to file complete and accurate amended
Statements of Financial Interests with the [Authority], through
the Pennsylvania State Ethics Commission, for calendar years
2013, 2014, 2015, and 2016 within thirty (30) days of the
issuance of the final adjudication in this matter,
Gindlesperger agrees to not accept any reimbursement,
compensation or other payment from the Cambria County War
Memorial Authority Board 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 Respon( e
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 Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to
Gindlesperger, while a Member of the Authority Board, havin entered into negotiations
with SMG to lease warehouse property owned by a company Which Gindlesperger is an
owner, resulting in a private pecuniary benefit to that company.
Factually, when St. John viewed the need to find storage for the glycol as an
emergency, he contacted and informed Gindlesperger, as Chairman of the Authority Board,
of the situation regarding the glycol and the need Pcor a storage location, As the Authority
Board Chairman, Gindlespergerwas St. John's primary Authority contact. St. John sought
guidance from Gindlesperger as an Authority Board Member for contacts in the Greater
Johnstown area at which the glycol containers could potentia I be stored. In response to
St. John's question, Gindlesperger offered the use of the AX-C warehouse at 619 Elder
Street to store the olgol containers. AFS, a business that Gindlesperger partially owned,
received $3,600.0 or the stora e of the glycol in its warehouse during the time period
from approximately mid -June 20?6 through approximately early/mid-September 2016.
After the usable glycol had been returned to the Arena, St. John and Gindlesperger
negotiated/agreed upon a rate of $600.00 per month for the Arena's continued rental
storage space at 619 Elder Street. Under this lease agreement, AFS continued to lease.
warehouse space at 619 Elder Street to the Arena for material and e en.t storage at
the rate of $600.00 per month from September 2016 into August 2 1 , with no formal
Board vote. AFS maintained a business relationship with the Arena regarding the Arena's
rental of storage� space at 619 Elder Street at all times during which the Authority through
its Contract Review Committee), SMG, and the Count actively negotiated and utimatel
M�
Mapproved the second amendment to the existing S contract. Gindlesperger and S�
n were active participants in the negotiations for the Authority and SMG respectively.
The Subject of leasing of storage space at 619 Elder Street was not disclosed to the
Authority Board as a whole until the Authority Board's July 24, 2017, meeting when
Gindlesperger disclosed the then -existing rental arrangement for $600.00 per month but did
not mention the prior lease for storage of glycol solution. At the December 18, 2017,
Gindlesperger, 18-1018
a Pge to
Authority Board meeting, Gindlesperger disclosed the prior acireement entered into with St.
John to store the glycol solution for the Arena during the 20T6 renovations.
From approximately September 2016 through August 2018, AFS, a business with
which Gindlesperger is associated, received twenty-three checks from the SMG-controlled
Arena Operating Rccountat 1st Summit Bank Account Number 2) totaling $14,400.00 for
the storage of Arena materials and equipment.
Gindlesperger voted in favor of approving the overall SMG %eratin? budget for the
Arena, which exceeded $1,000,000, at the Authority Board's July
24, 017, regularly
scheduled meeting at a time when AFS, had been receiving monthly payments from the
SMG-controlled operating account since September 2016.
Given Gindlesperger's repeated uses of the authority of his office as Chairman of the
Authority Board with respect to leasing stora e space at the AFS warehouse for the
storage of Arena materials and equipment, resuiting in a private ecuniary benefit to AFS,
we hold that Gindlesperger violated Section 110-3(a) 11thics Act, 65 Pa.C.S. §
1103(a), when he, while a Member of the Authority Board, entered into negotiations with
SMG to lease warehouse property owned by a company of which Gindlesperger is an
owner, resulting in a private pecuniary benefit to that company.
We further accet the parties' recommendation for a finding that a violation of
Section 1102 of the Ethics Act, 65 Pa.C.S. § 11 03ft occurred when a contract (for
storage as cle ineated above) valued over $500,00 was entered into between a business i with which Gindlesperger s associated and SMG/the Authority. The aforesaid leasing of
the AFS warehouse occurred without any open and public process. To the extent the lease
was with the Authority, Gindlesperger's behind -the -scenes dealings b which he unilaterally
reached leasing arrangements with St. John, and his belated, after44e-fact disclosures of
such leasing arrangements, failed to satisfy the requirements of Section 1103(f) of the
Ethics, Act.
We hold that perthe Consent Agreement of the parties, a violation of Section 11 03(f)
of the Ethics Act, 65 Pa.C.S. § 11 03(f), occurred when a contract for storage, valued at
over $500.00, was entered into between a business with which Gindlesperger is associated
and SMG/the Authority.
Per the Consent Agreement, Respondent denies having committed a violation of the
Ethics Act concerning the new scoreboard at the Arena and denies having knowledge that
his son was a part owner in Amphype. Nevertheless, and without admitting any violation,
for purposes of resolution given the terms of the parties' settlement, Respondent agrees
that if this matter went to hearing, the Investigative Division could, by circumstantial
evidence meet the requisite evidentiarystandard and convince a fact finder that he
violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his
participation in the Authority Board's discussion and official action to effectuate the
purchase/installation of a new scoreboard, resulting in a private pecuniary benefit to
Amphype, a business partially owned by his son.
The Investigative Division is not further pursuing findings of violations as to those
portions of the allegations involving Respondent Gindlesperger's SFIs, based upon
Respondent's commitment to file complete and accurate amended SFIs with the Authority,
through this Commission, for calendar years 2013, 2014, 2015, and 2016 within thirty (3�)
days of the issuance of the final adjudication in this matter.
As part of the Consent Agreement, Gindlesperger has also agreed to make pa ment
in the amount of $20,000 in settlement of this matter, with $18,000 payable ro the
Commonwealth of Pennsylvania and $2,000 payable to this Commission, as detailed
herein,
Gindlespenger, 18-018
Page 71
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 oftheparties, Gindlesperger is directed to
make payment of $18,000 payable to Commonwealth of Pennsylvania and forwarded to
this Commission after the issuance of this adjudication and Order, by paying $1,000 per
month for a period of eighteen (18) months.
Additionally, er the Consent Agreement of the parties, Gindlespergerisdirectedto
make a payment of 92,000, representingportion f the costs incurred by is Commission
0a po ion o
in the investigation and enforcement this matter, which shall be made payable to the
Pennsylvania State Ethics Commission and forwarded to this Commission by no later than
the sixtieth (60th ) day after the mailing date of this adjudication and Order.
Perthe Consent Agreement of the parties, Respondent Gindlesperger isdirected to
not accept any reimbursement, compensation or other payment from the Authority Board
representing a full or partial reimbursement of the amount paid in settlement of this matter.
Finally, to the extent he has not already done so, Gindles erger is directed to file
complete and accurate amended SFIs for calendar years:2013 T,142015, and 2016 with
the Authority, through this Commission, by no later than the thirtieth (30th) day after the
mailing date of this adjudication and Order.
Compliance with the forming will result in the closing of this case with no further
i
action by s Commission. oncompliance will result in the institution of an order
enforcement action.
IV. CONCLUSIONS OF LAW:
1 Asa Member of the Cambria County Arena Authority ("Authority' Board of Directors
Board') from January 1, 200 , to August 14, 2018, ("Authority'
Dean
Gindlesperger, ("Gindlesperger" was a public official subject to the provisions of the
Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq.
Z Gindlesperger violated Section 1103) of the Ethics Act, 65 Pa.C.S. § 1103(a),
when he, while a Member of the Aut ority Board, entered into negotiations with
SMG to lease warehouse property owned by a company of which Gindlesperger is
an owner, resulting in a private pecuniary benefit to that company.
3. Per the Consent Agreement of the parties, a violation of Section 1103(f) of the
Ethics Act, 65 Pa.C.S. § 11 03(f), occurred when a contract for stora e, valued at
over $500,00, was entered into between a business with which Gindlesperger is
associated and SMG/the Authority.
4. Gindlesperger denies having committed a violation of the Ethics Act concerning the
new scoreboard at the arena now known as "11-It Summit Arena @ the Cambria
County Arena," and denies having knowledge that his son was a part owner in
Amphype Signs, LLC, Nevertheless, and without admitting any violation, for
purposes of resolution given the terms of the parties' settlement, Gindlesperger
agrees that if this matter went to hearing, the Investigative Division could, by
circumstantial evidence, meet the requisite evidentiary standard and convince a fact
finder that he violated Section 11 03(a) of the Ethics Act, 65 Pa.C.S. § 11 03(a), in
relation to his participation in the Authority Board's discussion and official action to
effectuate the purchase/installation of a new scoreboard, resulting in a private
pecuniary benefit to Amphype Signs, LLC, a business partially owned by his son.
In Re: Dean Gindlesperger, File Docket: 18-018
Respondent Date Decided: 9/25/19
Date Mailed: 10/7/19
101:111 W 9•
As a Member of the Cambria County Arena Authority ("Authority") Board of Directors
Board") Dean Gindlesperger (Gindlesperger") violated Section 1103(a) of the
(`"Board")
Official and Employee Ethics Act ('Ethics Act"), 65 Pa.C.S. § 1103(a when
he, while a Member of the Authority Board, entered into ne otiations with IMG to
lease warehouse property ownedby a company of whic9 Gindlesperger is an
owner, resulting in a private pecuniary benefit to that company.
2. Per the Consent Agreement of the parties, a violation of Section 1103(f) of the
Ethics Act, 65 Pa.C.S. § 11 03(f), occurred when a contract for stora e, valued at
over $500.00, was entered into between a business with which Gindlesperger is
associated and SMG/the Authority.
Gindlesperger denies having committed a violation of the Ethics Act concerning the
new scoreboard at the arena now known as 1st Summit Arena @ the Cambria
County Arena," and denies having knowledge that his son was a part owner in
Arnphype Signs, LLC. Nevertheless, and without admitting any violation, for
purposes of resolution given the terms of the parties' settlement, Gindlesperger
agrees that if this matter went to hearing, the Investigative Division could, by
circumstantial evidence, meet the requisite evidentiary standard and convince a fact
finder that he violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1 103(a), in
relation to his participation in the Authhority Board's discussion and official action to
effectuate the purchase/installation of a new scoreboard, resulting in a private
pecuniary benefit to Amphype Signs, LLC, a business partially owned by his son.
4. Per the Consent Agreement of the parties, Gindlesperger is directed to make
pa ment of $18,000 payable to the Commonwealth of Pennsylvania and forwarded
to the Pennsylvania State Ethics Commission after the issuance of this Order, by
paying $ 1,000 per month for a period of eighteen (18) months.
5. Per the Consent Agreement of the parties, Gindlesperger is directed to make a
payment of $2,000, representing a portion of the costs incurred by this Commission
in the investigation and enforcement of this matter, which shall be made payable to
the Pennsylvania State Ethics Commission and forwarded to this Commission by no
later than the sixtieth (601h ) day after the mailing date of this Order.
6. Per the Consent Agreement of the parties, Gindlesperger is directed to not accept
any reimbursement, compensation or other payment from the Authority Board
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, Gindlesperger is directed to file complete
and accurate amended Statements of Financial Interests for calendar years 2013,
2014, 2015, and 2016 with the Authority through this Commission, by no later than
the thirtieth (30th) day after the mailingthis Order.
GindlesTerger, 18-101118
P-a�-e 7
8. 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.
a. Noncompliance will result in the institution of an order enforcement action,
BY THE COMMISSION,
A—.ColaRe-fl`a, Chair