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Home My WebLink About847 AbbottIn re: Elias (Phil) Abbott STATE ETHICS COMMISSION 309 FINANCE BUILDING P.O. BOX 11470 HARRISBURG. PA 1 71 08 -1 470 TELEPHONE (717) 783 -1610 : File Docket: : Date Decided: : Date Mailed: 91 -019 -C April 23. 1992 April 27, 1992 Before: Dennis C. Harrington, James M. Howley, Vice Daneen E. Reese Roy W. Wilt Austin M. Lee Allan M. Kluger The State Ethics Commission received a complaint regarding a possible violation of the State Ethics Act, No. 170 of 1978, P.L. 883. Written notice, of the specific allegation(s) was served at the commencement of the investigation. A Findings Report was issued and served, upon completion of the investigation, which constituted the Complaint by the Investigation Division. An Answer was not filed and a hearing was waived. A Consent Order was submitted by the parties to the Commission for consideration which was subsequently-approved. This adjudication of the Commission is hereby issued which sets forth the individual Allegations, Findings of Fact, Discussion, Conclusions of Law and Order. Chair Chair This adjudication is final and will be made available as a public document fifteen days after issuance. However, reconsideration may be requested which will defer public release of this adjudication pending action on the request by the Commission. A request for reconsideration, however, does not affect the finality of this adjudication. A reconsideration request must be received at this Commission within fifteen days of issuance and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §2.38. The files in this case will remain confidential in accordance with Section 8(a) of Act 170 of 1978 during the fifteen day period and no one unless the right to challenge this Order is waived, may violate confidentiality by releasing, discussing or circulating this Order. However, confidentiality does not preclude discussing this case with an attorney at law. Any person who violates confidentiality of the Ethics Act is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year, 65 P.S. 409(e). Elias (Phil) Abbott April 27, 1992 Page 2 I. ALLEGATION: That Elias (Phil) Abbott violated the following section of the Public Official & Employees Ethics Act, (Act 170 of 1978), when he, a Commissioner for North Huntingdon Township, Westmoreland County, failed to disclose income received in access of $500.00 from Keystone Medical Services and Keystone Medical Management on Statements of Financial Interest filed for the 1986, 1987, 1988, 1989, and 1990 calendar years; and when he failed to disclose his directorship in Monsour Medical Center on Statements of Financial Interest filed for the 1988 -1989 calendar years. Section 5. Statements of Financial Interest (b) The statements shall include the following information for the prior calendar year with regard to the person required to file the statement and the members of his immediate family: (5) The name and address of any person who is the direct or indirect source of income totalling in the aggregate $500.00 or more. However, this provision shall not be construed to require the divulgence of confidential information protected by statute or existing professional codes of Ethics. (8) Any office, directorship, or employment of any nature whatsoever in any business entity. 65 P.S. 405(b)(5),(b)(8). II. FINDINGS: 1. Elias (Phil) Abbott serves as a Township Commissioner in North Huntingdon Township hereinafter NHT. a. He has served in this capacity since at least 1985. 2. Elias (Phil) Abbott serves as a member of the North Huntingdon Township Municipal Authority, hereinafter NHTMA. a. He has served on the Municipal Authority since January 1, 1986. 3. Monsour Medical Center is a hospital in Westmoreland County. Elias (Phil) Abbott April 27, 1992 Page 3 4. Minutes of the Monsour Medical Center Board of Directors reflect the following in regards to the appointment of Phil Abbott to the Board: April 16, 1984: "Upon a motion by Phil Roy, seconded by Ted Kindrad, the Board accepted the Monsour Medical Foundation request to expand the Board's membership to (7) and appoint Phil Abbott as a new Monsour Medical Center Board member. Motion carried." Present: George Duke, Jr., Esq., Philip Roy, Ray Albert, Theodore Kindrad, PHD., Ray C. Monsour, MD. 5. Keystone Medical Management Services is a subsidiary of the Monsour Medical Foundation. a. The Keystone Medical Management Company was formed in 1984. b. Keystone Medical Management Services became a separate entity in 1987. c. Keystone Medical Management Company is involved in providing home health care services and preferred provider services. d. Keystone Medical Management Services is a preferred provider organization and offers health service to Monsour Health Center Hospital employees and some other businesses. 6. The Monsour Medical Foundation and related subsidiaries utilized community volunteers for public relation /consultant work. a. Elias (Phil) Abbott, Joseph Bucciero and Serafino Maliberti were all utilized for this purpose. b. Each of the three had a geographic area which they were responsible for. 1. Abbott: North Huntingdon Township area. 2. Bucciero: Delmont area. 3. Maliberti: Penn Hills area. c. No job descriptions exist for people utilized for public Elias (Phil) Abbott April 27, 1992 Page 4 relations and /or consultations. d. Dr. William Monsour, MD had supervisory responsibilities over all volunteers. e. Although initially Abbott, Bucciero and Maliberti acted as volunteers they were subsequently all compensated $200.00 per month. 7. Financial records of Keystone Medical Services, 63 Lincoln Way, East, Jeannette, PA. 15644, reflect disbursements made to Elias (Phil) Abbott for consultant /public relation work: a. Payments were made to Abbott from Irwin Bank & Trust Account #043316256. b. Payments included: Check Date Amount 1271 5/16/86 $ 200.00 1357 6/3/86 200.00 1461 7/7/86 400.00 1554 8/1/86 200.00 1652 9/2/86 200.00 1771 10/3/86 200.00 1881 11/3/86 200.00 2008 12/10/86 200.00 1986 Total $ 1800.00 2114 1/5/87 200.00 2259 2/4/87 200.00 2456 3/3/87 200.00 2671 4/6/87 200.00 2887 5/4/87 200.00 3120 5/27/87 200.00 3389 7/6/87 200.00 3546 7/31/87 200.00 4352 9/1/87 200.00 4628 10/1/87 200.00 4820 11/2/87 200.00 4934 12/1/87 200.00 1987 Total $2400.00 5127 1/4/88 200.00 5342 - 2/1/88 200.00 5603 3/1/88 200.00 5812 3/31/88 200.00 Elias (Phil) Abbott April 27, 1992 Page 5 6101 6210 5038 5/2/88 5/31/88 6/30/88 200.00 200.00 200.00 1988 Total as per records $1400.00 c. All of the checks listed in Finding #7b were endorsed either by Phil Abbott or Elias Abbott. a . b. 1. Phil Abbott and Elias Abbott are one in the same. 8. Financial records of the Monsour Medical Center include three payments to Elias (Phil) Abbott for attending Board meetings. Payments were made from the Monsour Medical Center's Operating Account. Individual disbursements referenced in Finding 8a are: 1. Check #36604, attendance at 2. Check #37071, attendance at 3. Check #37527, attendance at dated 6/25/90, $100.00, for Abbott's the Board's June 13, 1990 meeting. dated 7/31/90, $100.00, for Abbott's the Board's July, 1990 meeting. dated 8/30/90, $100.00, for Abbott's the Board's August 1, 1990 meeting. 9. Statements of Financial Interest on file with North Huntingdon Township include the following filings for Elias (Phil) Abbott: a. Calendar year: 1990 Filed: February 20, 1991 on SEC Form 1/91 Position: Commissioner NHT Creditors: None Direct /Indirect Income: NHT, NHTMA Office /Directorship: Westmoreland County Motor Club; Norwin Charities, Monsour Medical Center. Abbott's notation indicates all were unpaid positions. All other Financial Interest: None b. Calendar year: Unlisted Filed: Undated on SEC Form 1/90 Position: Commissioner NHT Creditors: None Elias (Phil) Abbott April 27, 1992 Page 6 Direct /Indirect Income: NHT, NHTMA Office /Directorship: Westmoreland County Motor Club, Norwin Charities, Monsour Medical Center. Abbott's notation indicates all were unpaid. Ail other Financial Interest: None c. Calendar year: Undated Filed: 2/19/88 on SEC Form 1/87 Position: Commissioner NHT Creditors: None Direct /Indirect Income: Social Security, NHT, NHTMA Office /Directorship: Westmoreland County Motor Club, Monsour Medical Center. Abbott's notation indicates both were unpaid. d. Calendar year: 1986, Candidates Form Filed: 1/30/87 on SEC Form 7/84 Position: Commissioner NHT Creditors: None Direct /Indirect Income: Social Security Office /Directorship: Westmoreland County Motor Club, Monsour Medical Center. Abbott's notation indicates both were unpaid. e. Calendar year: 1985 Filed: 2/20/86 on SEC Form 7/84 Position: Commissioner NHT Creditors: None Direct /Indirect Income: Social Security Office /Directorship: Westmoreland County Motor Club, Monsour Medical Center 10. Statements of Financial Interest on file with North Huntingdon Township Municipal Authority include the following filings for Elias (Phil) .Abbott: a. Calendar Year: 1985 Filed: 4/24/86 on SEC Form 1/86 Position: Treasurer NHTMA Creditors: Union National Bank of Pittsburgh 11% Direct /Indirect Income: NHT, NHTMA All other Financial Interest: None b. Calendar year: 1986 Filed: 3/23/87 on SEC Form 1/87 Position: Treasurer NHTMA Elias (Phil) Abbott April 27, 1992 Page 7 Creditors: None Direct /Indirect Income: NHT, NHTMA All other Financial Interest: None c. Calendar year: 1987 Filed: 4/25/87 on SEC Form 1/88 Position: Treasurer NHTMA Creditors: Union National Bank of Pittsburgh 11% Direct /Indirect Income: NHT, NHTMA All other Financial Interests: None d. Calendar year: 1989 Filed: 4/26/89 on SEC Form 1/89 Position: Treasurer NHTMA Creditors: Union National Bank, Pittsburgh 11% Direct /Indirect Income: NHT, NHTMA All other Financial Interest: None e. Calendar year: 1990 Filed: 4/20/90 on SEC Form 1/90 Position: Treasurer NHTMA Creditors: Union National Bank, Pittsburgh 11% Direct /Indirect Income: NHT, NHTMA All other Financial Interests: None 11. Deficiencies in Statements of Financial Interest filed by Abbott with North Huntingdon Township include: a. Calendar year: 1990 (See Finding 9a) 1. Failure to list Union National Bank 11 %, as a creditor, as listed on his 1990 SFI filed with NHTMA.(See 10e). 2. Listing directorship of the Monsour Medical Center as an unpaid position, when records indicate he received at least $300.00 for meeting attendance during 1990. (See 8b). b. Calendar year: Undated on SEC Form 1/90 (See 9b). 1. Failure to list Union National Bank, 11 %, as a creditor, as listed on his 1989 SFI Form filed with NHTMA. (See #10d). c. Calendar year: 1988 No Statements of Financial Interest on file d. Calendar year: 1988 (See Finding #9c). Elias (Phil) Abbott April 27, 1992 Page 8 1. Failure to list Union National Bank, 11% as a creditor, as listed on his 1987 SFI form filed with NHTMA. (See 10c). 2. Failure to list income from Keystone Medical Services. (See #7). e. Calendar year: 1986 (See Finding #9d) 1. Failure to list Union National Bank, 11% as a creditor, as listed on all other SFI's filed. 2. Failure to list income from Keystone Medical Services. (See #7). f. Calendar year: 1985 (See Finding 9e). 1. Failure to list Union National Bank as a creditor as listed on his 1985 SFI form filed with NHTMA. (See #10a). 12. Deficiencies in Statements of Financial Interest filed by Abbott with the North Huntingdon Township Municipal Authority include: a. Calendar year: 1985 (See Finding #10a). 1. Failure to list directorship of the Westmoreland County Motor Club, and Monsour Medical Center as listed on his 1985 SFI filed with NHT. (See #9e). b. Calendar Year: 1986 (See Finding #10b). 1. Failure to list Union National Bank as a creditor, as listed on his 1985, 1987, 1989 and 1990 SFI's filed with NHTMA. (See #10a, c, d, e). 2. Failure to list income from Keystone Medical Services (See #7). 3. Failure to list directorship of the Westmoreland County Motor Club, and Monsour Medical Center as listed on his 1986 SFI filed with NHT. (See #9d). c. Calendar Year: 1987 (See Finding #10c). 1. Failure to list income from Keystone Medical Services (See #7). 2. Failure to list directorship of the Monsour Medical Elias (Phil) Abbott April 27, 1992 Page 9 d. Calendar year: 1988 e. Calendar year: 1989 (See Finding 10d) 1. Failure to list income from Keystone Medical Services. (See #7) 2. Failure to list directorship of the Monsour Medical Center, and Westmoreland County Motor Club as listed on his SFI filed with NHT. (See Finding #9b). f. Calendar year: 1990 (See Finding l0e) 1. Failure to list directorship of Norwin Charities, Monsour Medical Center and Westmoreland County Motor Club as listed on his SFI filed with NHT. (See #9b). 2. This form contains the wrong date. It is listed as being for calendar year 1990, filed on 4/20/90, on SEC Form 1/90. III. DISCUSSION: Center and Westmoreland County Motor Club as listed on his SFI filed with NHT. (See Finding #9c). No Statements of Financial Interest are on file with NHTMA. Statements of Financial Interest are to be filed for the prior calendar year. If this form was for calendar year 1990, the year should have been listed as 1991. As a North Huntingdon Township Commissioner, Elias (Phil) Abbott, hereinafter Abbott, is a public official as that term is defined in the Ethics Act, 65 P.S. 5402; 51 Pa. Code 1.1. As such, his conduct is subject to the provisions of the Ethics Act and the restrictions therein are applicable to him. Initially, it is noted that Section 9 of Act 9 of June 26, 1989, P.L. 26, provides, in part, as follows: "This amendatory act shall not apply to violations committed prior to the effective date of this act, and causes of action initiated for such violations shall be Elias (Phil) Abbott April 27, 1992 Page 10 Since effective provisions Ethics Act governed by the prior law, in effect for that purpose not in force. For the section, a violation was the effective date of this of the violation occurred the occurrences in this date of Act 9 (June 26 of Act 170 of 1978, P.L. was violated. which is continued as if this act were purposes of this committed prior to act if any elements prior thereto." case transpired prior to the , 1989), we must apply the 883, to determine whether the Sections 5(b)(5) and 5(b)(8) of Act 170 of 1978 quoted above require that each public official /employee on their Statement of Financial Interests (FIS) must list the name and address of any person who is a direct or indirect source of income totalling $500 or more and also list any office, directorship or employment of any nature whatsoever in a business entity. The allegation before us is that Abbott failed to disclose income received from Keystone Medical Services and Keystone Medical Management on his 1986 through 1990 calendar year FIS's and secondly he failed to disclose his directorship in the Monsour Medical Center on his 1988 and 1989 calendar year FIS's. Abbott has served as the Commissioner for North Huntingdon Township since 1985 and as a Member of the North Huntingdon Township Municipal Authority since 1986. In a private capacity, Abbott was appointed on April 16, 1984 to the Board of Monsour Medical Center, the Monsour Medical Foundation, and its subsidiaries, Keystone Medical Management Services and Keystone Medical Management Company, which utilized community volunteers for public relations /consulting work. Abbott and others initially acted as unpaid volunteers but were subsequently compensated at $200 per month. Abbott received $1800.00 in 1986, $2400 in 1987 and $1400 in 1989 from Keystone Medical Services (Fact Finding 7). In addition, Abbott received $300 from Monsour Medical Center for attending board meetings in 1990 (Fact Finding 8). The FIS's which Abbott filed as a member of the North Huntingdon Township Board and North Huntingdon Township Municipal Authority failed to list the payments Abbott received from Keystone Medical Services in 1986 through 1988 even though that income exceeded the $500 threshold reporting requirement of Section 5(b)(5). In addition, Abbott failed to list his directorship in the Monsour Medical Center on his 1988 and 1989 FIS's for North Huntingdon Township Municipal Authority. Accordingly, we find that Abbott violated Section 5(b)(5) of Act 170 of 1978 by failing to disclose interest income from Keystone Medical Services as to his 1986 through 1988 FIS's which Elias (Phil) Abbott April 27, 1992 Page 11 he filed as a Commissioner for North Huntingdon Township and as a Board Member for North Huntingdon Township Municipal Authority. In addition, Abbott violated Section 5(b)(8) of Act 170 of 1978 by failing to list his directorship on the Monsour Medical Center for the 1988 and 1989 calendar year FIS's for the North Huntingdon Township Municipal Authority. However, since there is no evidence of record to indicate that there was any intent on the part of Abbott to conceal financial interests, this Commission will take no further action provided Abbott files amended FIS's which will list his income from Keystone Medical Services and his directorship in Monsour Medical Center as well as amended FIS's to correct certain other deficiencies noted in Fact Findings 11 and 12 within thirty days of the issuance of this Order. Failure to comply with this Order, however, will result in a directive of this Commission to institute an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Elias (Phil) Abbott as a Commissioner for the North Huntingdon Township and as Board Member of the North Huntingdon Township Municipal Authority is a public official subject to the provisions of Act 170 of 1978. 2. Abbott violated Section 5(b)(5) of Act 170 of 1978 when he failed to list income from Keystone Medical Services for the calendar years 1986 through 1988 on his Statements of Financial Interests. 3. Abbott violated Section 5(b)(8) of Act 170 of 1978 when he failed to list on his 1988 and 1989 Statements of Financial Interests his directorship in Monsour Medical Center. In re: Elias (Phil) Abbott ORDER NO. 847 : File Docket: 91 -019 -C : Date Decided: April 23, 1992 : Date Mailed: April 27, 1992 1. Elias (Phil) Abbott as a Commissioner for the North Huntingdon Township and as Board Member of the North Huntingdon Township Municipal Authority violated Section 5(b)(5) of Act 170 of 1978 when he failed to list income from Keystone Medical Services for the calendar years 1986 through 1988 on his Statements of Financial Interests. 2. Abbott violated Section 5(b)(8) of Act 170 of 1978 when he failed to list on his 1988 and 1989 Statements of Financial Interests his directorship in Monsour Medical Center. 3. Abbott is directed within thirty (30) days of issuance of this Order to file amended FIS's correcting the deficiencies noted in Paragraphs 1 and 2. 4. Abbott is directed within thirty (30) days of issuance of this Order to correct other FIS deficiencies noted in Fact Findings 11 and 12. 5. Failure by Abbott to comply with this Order regarding filing amended Statements of Financial Interests to correct the above deficiencies within thirty days of issuance will result in a directive of this Commission to institute an order enforcement action. BY TH COMMISSION, DENNIS C. HARRINGTON, CHAIR