HomeMy WebLinkAbout1127 SheplerIn Re: David Shepler
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA I7I20
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Daneen E. Reese, Chair
Austin M. Lee, Vice Chair
Julius Uehlein
Louis W. Fryman
John J. Bolger
Frank M. Brown
Susan Mosites Bicket
98- 049 -C2
Order No.1127
6/1/99
6/10/99
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission -
conducted an investigation regarding a possible violation of the Public Official and
Employee Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 el seg., by the above -
named Respondent. At the commencement of its investigation, the Investigative
Division served upon Respondent written notice of the specific allegation(s). Upon
completion of its investigation, the Investigative Division issued and served upon
Respondent a Findings Report identified as an "Investigative Complaint." An Answer
was not filed and a hearing was waived. The record is complete. A Consent
Agreement was submitted by the parties to. the Commission for consideration which
was subsequently approved.
Effective December 15, 1998, Act 9 of 1989 was replaced by the Public Official
and Employee Ethics Act ( "Ethics Act "), Act 93 of 1998, Chapter 11, 65 Pa.C.S.
§1101 g; seq., which essentially repeats Act 9 of 1989 and provides for the
completion of pending matters under that Act.
This adjudication of the State Ethics Commission is issued under Act 93 of
1998 and will be made available as a public document thirty days after the mailing
date noted above. However, reconsideration may be requested. Any reconsideration
request must be received at this Commission within thirty days of the mailing date and
must include a detailed explanation of the reasons as to why reconsideration should
be granted in conformity with 51 Pa. Code §21.29(b). A request for reconsideration
will not affect the finality of this adjudication but will defer its public release pending
action on the request by the Commission.
The files in this case will remain confidential in accordance with the Ethics Act.
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.
Confidentiality does not preclude discussing this case with an attorney at law.
Shepler, 98- 049 -C2
Page 2
I. ALLEGATION:
David Shepler, a public official /public employee, in his capacity as a member of
the Fayette County Conservation District (FCCD) Board of Directors violated the
following provisions of the State Ethics Act (Act 9 of 1989) when he used the
authority of his office for a private pecuniary benefit by making purchases from the
Federal Surplus Property Program administered by the Pennsylvania Department of
General Services for his personal use and when he used FCCD funds to pay for said
purchase; and when he failed to file Statements of Financial interests for the 1994,
1995 and 1997 calendar years; and when he submitted and received reimbursement
for expenses from both the State Conservation Commission and the Northeast Area
Annual Conference; and by submitting and approving expenses for his spouse to
attend conferences.
Section 3. Restricted Activities
(a) No public official or public employee shall
engage in conduct that constitutes a conflict of interest. 65
P.S. §403(a).
Section 2. 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. "Conflict" or
"conflict of interest" does not include an action having a de
minimis economic impact or which affects to the same
degree a class consisting of the general public or a subclass
consisting of an industry, occupation or other group which
includes the public official or public employee, a member of
his immediate family or a business with which he or a
member of his immediate family is associated. 65 P.S.
§402.
Section 4. Statement of financial interests required to be
Meg(
(a) Each public official of the Commonwealth shall
file a statement of financial interests for the preceding
calendar year with the commission no later than May 1 of
each year that he holds such a position and of the year after
he leaves such a position. Each public employee and public
official of the Commonwealth shall file a statement of
financial interests for the preceding calendar year with the
department, agency, body or bureau in which he is
employed or to which he is appointed or elected no later
than May 1 of each year that he holds such a position and
of the year after he leaves such a position. Any other
public employee or public official shall file a statement of
financial interests with the governing authority of the
political subdivision by which he is employed or within
which he is appointed or elected no later than May 1 of
Shepier, 98- 049 -C2
Page 3
II. FINDINGS:
each year that he holds such a position and of the year after
he leaves such a position. Persons who are full -time or
part-time solicitors for political subdivisions are required to
file under this section. 65 P.S. §404(a).
1. David Shepler served as a member of the Fayette County Conservation District
Board (FCCD) from approximately 1957 through September 1998.
a. Shepler is a Charter Member of the Board.
2. The FCCD consists of seven members appointed . by the Fayette County
Commissioners.
3. Conservation Districts were created pursuant to Conservation District law
originally passed on May 15, 1945, and subsequently amended.
4. Section 15 of the Conservation District Law authorizes counties to create
conservation districts to address concerns of water and soil conservation and
related resources.
a. The counties and state provide funding for conservation districts.
5. Section 9 of the Conservation District Law provides the following duties and -
responsibilities of conservation districts:
- Conduct survey and research;
- Employ necessary personnel;
- Carry out preventative and control measures;
- Enter into cooperative agreements;
- Obtain options and acquire property;
- Make available equipment, seeds and seedlings;
- Contract, improve structures
- Assist and advise in land development
- Conduct educational programs
- Accept contributions from any source with consent
- Sponsor projects under the Watershed Protection and Flood Prevention Act
- Establish a program of assistance to environmental advisory councils.
6. Shepler also served as a member of the State Conservation Commission (SCC)
from June 1989 through May 1996.
a. Shepler served on the Executive Committee of the Conservation
Commission.
b. Members of the SCC are appointed to the Commission by the Governor.
7. The FCCD has participated in the Federal Surplus Property Program administered
by the General Services Administration under the Federal Property and
Administrative Services Act of 1949, as amended.
8. The Pennsylvania Department of General Services, Bureau of Supplies and
Surplus Operations, (DGS), is the state agency designated to distribute surplus
federal property, and ensures compliance with Federal Regulations within the
state.
Shepler, 98- 049 -C2
Page 4
9. Eligibility to participate in the program is determined as follows: "non- profit, tax -
exempt organizations that serve the public good in the areas of health or
education, and to government agencies, political subdivisions, and organizations
funded by and under the direction of political subdivisions ".
10. The Federal Surplus Property Program is not open to the general public.
a. Items purchased through this program are not intended for the personal
use of any individual.
11. The Fayette County Conservation District (FCCD) participated in the Federal
Surplus Property Program since at least 1986.
a. Applications for Eligibility to the Commonwealth of Pennsylvania,
Department of General Services Surplus Property Division, were made on
November 13, 1986, and August 21, 1995.
12. Only those individuals registered with the Department of General Services
Federal Surplus Operations, were permitted to sign for property.
13. The two representatives of the FCCD who were authorized to sign for
purchases from the Federal Surplus Property Program are David Shepler and
Donald Stephens.
a. A Representative Certification form for David Shepler was submitted on-
August 21, 1995, by Board Chairman Donald Stephens.
14. The Representative Certification provides that David Shepler is an "authorized
agent of this institution to select, receive and sign for surplus federal property
deemed useable and necessary in the conduct of this institution's approved
program. This authorized signature binds this institution to all terms and
conditions of the donee certification ".
15. Shepler and Stephens were the only board members who made purchases from
the Federal Surplus Property Program Harrisburg Distribution site.
a. Other Board members were unaware of the FCCD's participation in the
Federal Surplus Property Program.
b. No FCCD employees ever made purchases from the program.
16. Purchases made from the surplus property program are recorded on DGS
Distribution Documents.
a. The form contains the following information: FSC number; serial number;
description; acquisition cost by unit and total; total received; and service
charge by unit and total.
b. The donee's name, address, and donee number are included.
17. The Distribution Document includes the following requirements for purchasing
from the program:
a. All items of properties shall be placed in use for the purpose for which
acquired within one year of receipt and shall be continued in use for such
purposes for one year from the date that the property was placed in use.
Sheeler, 98- 049 -C2
Page 5
b. In the event the property is not so placed in use, or contained in use, the
donee shall immediately notify the state agency and, at the donee's
expense, return such property to the state agency, or otherwise make the
property available for transfer or other disposal by the state agency,
provided the property is still useable as determined by the state agency.
18. As a Representative of the Fayette County Conservation District, David Shepler
signed for eighteen receipts for items obtained from the Federal Surplus
Property Program, between January 1994, and July 1997.
a. 1994:
Receipt Fed /Mkt.Basket
Item Cost Number Date Total Cost (= 23.3 %)
Cable Assy $15.00 49965 02/18/94 $96.44 $589.00/$137.24
Twine $ 2.63
Tire iron $ 6.00
Tire iron $ 5.00
Muffler (2) $10.00
Puller $15.00
Pen $ 5.00
A. Brush $ 2.00
Screws $ .75
Wrench $25.00
Hooks $ 5.00
Wing nut $ .38
Markers (6) $ 3.18
Tie down $ 1.50
49969* $ 8.00 Unknown
Hand tools (4) $ 2.00 04011 03/09/94 $51.67 $169.00/$39.38
Hand tools (4) $ 8.00
Socket $ 3.00
Cables $10.00
Hand tools (3) $12.00
Hinge pair $ 5.00
Marker (12) $ 6.36
Dust pan $ 1.00
Dog collar (3) $ .75
Dog leash $ .25
Drill bit (2) $ 1.06
Punch (3) $ 2.25
Stapler (2) $ .50 04611 04/05/94 $31.62 $778.00/$181.27
Utensils (6) $ 2.28
Chapstick $ .75
Dog collar (3) $ .75
Soap (8) $ 1.04
Pens $ .75
Cat food $ 3.00
Markers (20) $ 7.00
Gloves (2) $ 2.00
Jack $ 2.00
Oiler (3) $ 1.05
Hammer $ 2.50
Hooks $ 5.00
Hand tool $ 2.00
Dog item $ 1.00
Shepler, 98- 049 -C2
Page 6
Total 1994:
* Invoice #49969 is unavailable
b. 1995:
Cat chow (4) $40.00 53572 01/04/95 $52.50 $590.00/$137.47
Cap $ 2.50
Guy (2) $10.00
Radiator Hose $15.00 54440 03/13/95 $15.00 $587.00/$136.77
Steel Plate (3) $ 9.00 54726 03/29/95 $29.50 $705.00/$164.27
Cable $10.00
Belts $ 4.00
Punch $ 1.00
Glass Cleaner $ 5.00
Expresso pens (5) $ .90 55571 06/20/95 $38.78 $1,818.00/$423.59
China marking $ 1.50
Battery AA $ 4.00
Pad 8' /z "x11" $ 2.25
Hand tool $ 2.00
Screw Mach. $ .25
Screw tapping $ 1.13
Bolts $ 3.00
Bolts (20) $10.00
Bolts $ 2.00
Light bulbs $10.00
Kitchen utensils $ .75
Shelter $ 3.00 55875 07/19/95 $20.77 $152.00/$35.42
Hand tools (5) $ 5.00
Handle hammer (5) $ 7.50
Shackles (4) $ 1.00
Markers (4) $ 1.50
Pad, paper $ .75
Tools $ 2.02
Mittens $ 5.00 560562 09/26/95 $20.00 $61.00/$14.21
Gear Oil $ 5.00
Nails (2) $30.00 561152 11/14/95 $95.00 $138.00/$32.15
Glass cleaner $ 5.00
Tires (3) $60.00
Total 1995 $271.55 $4,051.00/$943.88
c. 1996:
$187.73 $1,536.00/$357.89
Battery AA (10) $32.85 562371 03/13/96 $32.85 $927.00/$215.99
Hand tool $ 2.00
Hose clamp (2) $ 5.00
Spring (3) $ 5.00
Wire clamps (5) $ 1.75
Bolts (6) $ 3.00
Punch $ .10
Eye bolt $ 2.00
Hinge $ 2.00
Sealing tube $ 1.50
Grass sickle $ 3.75
Shepler, 98- 049 -C2
Page 7
$100.00
$ 5.00
$25.00
$ 6.00
$ 2.50
$25.00
$ 2.00
$ 5.00
$ 7.50
$ 6.00
$140.00
$95.00
$ 1.20
$ 1.00
$ • .25
$ 3.00
$ 8.00
$ 2.50 564767
$ 1.00
Binder load $15.00
Ammo can $ 2.50
Plaster patching (2) $ 3.00
Pens $ 3.75
Brush
Lube oil
Felt pen
Telephone
Thread
Chain (2)
Shovel
Chain
Hand tool (3)
Gas can
Chain
Hand tool
Inner tube
Wrench
Hand tools (6)
Roofing (20)
Oil
Lamps (6)
Misc. Tools
Knife
Hand tool
Hand tool (4)
Strap ties
Twine
Tools
Nails (2)
Gloves (4)
Undershirt
Robe
Battery (3)
Borax
Telephone
$ .75
$ .75
$ 1.88
$ 1.00
$ 1.50
Total 1996 $498.93
d. 1997:
562394 03/14/96
562906 04/08/96 $33.50
563136 05/07/96 $20.50
$130.00 $284.00/$66.17
$57.00/$13.28
$51.00/$11.88
563571 06/10/96 $235.00 $451.00/$105.08
564029 08/02/96 $13.45 $37.00/$8.62
10/09/96 $33.63 $132.00/$30.76
$1,939.00/$451.78
$ 5.00 567970 07/23/97 $40.00 $144.00/$33.55
$15.00
$ 4.00
$ 2.50
$ 2.00
$ 9.00
$ 2.00
$ .50
Total 1997 $40.00 $144.00/$33.55
Total 1990 through 1997 $7,670.00/$1,787.10
19. The market basket cost is computed by the federal government as the fair
market value of the goods being sold through the surplus program.
20. The items obtained by Shepler were not for the use of the FCCD and were not
used for FCCD purposes.
a. Shepler obtained these items by virtue of his public position for his
personal use.
Sher)ler, 98- 049 -C2
Page 8
191
200
204
206
207
208
209
217
b. Shepier would not have been able to purchase these items if he were not
a FCCD member.
c. Shepier purchased items with a market basket value totaling $1,787.10.
21. DGS, Bureau of Supplies and Surplus Operations, Surplus Property Division,
submitted invoices to the Fayette County Conservation District for payment for
items received from the program, including the items purchased by David
Shepier.
22. The DGS invoices for the surplus property were paid from the FCCD's Tree
Account.
a.
b.
Check # Date
187 03/02/94
188 03/31/94
The Tree Account, held at Fayette Bank, Account #43317679, was
funded by the proceeds of the annual tree sale held by the FCCD.
Proceeds were used to pay for seedlings for the following year's sale;
some travel expenses for Board Members; Federal surplus property
purchases; and dinner at the monthly board meetings for the directors
and some attendees.
c. Signature authority on the Tree Account included FCCD Manager Thelma
Adams and Board Chairman Donald Stephens.
d. David Shepier received signature authority on the account beginning in
1997.
23. FCCD Tree Account checks were issued to the Pennsylvania Department of
General Services as payment for items obtained by David Shepier from the
Federal Surplus Property Program.
05/02/94
02/03/95
05/30/95
06/30/95
07/27/95
10/12/95
11/24/95
03/21/96
Amount
$104.44
51.67
31.62
52.50
469.63
38.78
20.77
20.00
95.00
162.85
Invoice
Reference Authorized
Number Signatures
49965 Stephens, Adams
04011 Stephens, Adams
04611 Stephens, Adams
53572 Stephen Adams
54440, Stephens, Adams
54726
55571 Stephens, Adams
55875 Stephens, Adams
560562 Stephens, Adams
561152 Stephens, Adams
562371, Stephens, Adams
562394
Shepler, 98- 049 -C2
Page 9
187 03/02/94 $ 104.44 49965 Stephens, Adams
221 05/03/96 33.50 562906 Stephens, Adams
223 06/05/96 20.50 563136 Stephens, Adams
224 06/14/96 235.00 563571 Stephens, Adams
225 08/16/96 13.40 564029 Stephens, Adams
226 10/26/96 33.63 564767 Stephens, Adams
101 08/15/97 40.00 567970 Stephens, Shepler
24. Shepler co- signed Tree Account check #101, dated 08/15/97, in the amount
of $40.00, in payment of a personal purchase he made from the Federal Surplus
Property Program on 07/23/97.
25. Expenditures from the Tree Account were not voted on by the FCCD Board of
Directors.
a. Payments from the Tree Account were not reported to the Board of
Directors.
26. Individuals with knowledge of Tree Account expenditures included: Chairman
Donald Stephens; Vice - Chairman David Shepler; District Manager Thelma
Adams; and Treasurer /Board Member Thomas Adams (husband of Thelma
Adams).
27. Shepler reimbursed the Tree Account for items he obtained from the Federal
Surplus Property Program by way of checks from his personal account.
Invoice
Reference
Check # Date Amount Number
5721 02/25/94 $104.44 49965, 49969
5732 03/23/94 $ 51.67 04011
5738 04/13/94 $ 31.62 04611
6050 01/11/(94) $ 52.50 53572
6072 03/16/95 $ 15.00 54440
6075 04/03/95 $ 29.00 54726
6168 06/26/95 $ 38.78 55571
6196 07/26/95 $ 20.77 55875
6250 10/06/95 $ 20.00 560562
6284 11/20/95 $ 95.00 561 152
6361 03/15/96 $162.85 562371, 562394
N/a N/a $ 33.50 562906
6414 05/09/96 $ 20.50 563136
6451 06/13/96 $235.00 563571
6515 08/13/96 $ 13.45 564029
6581 10/11/96 $ 33.63 564767
6901 08/15/97 $ 40.00 567970
Sheeler, 98- 049 -C2
Page 10
Total $997.71
a. The face of check #6050 did not reflect the year, only the month and
date. The reverse side of the check shows that it was processed on
01/12/95 and the amount matches invoice #53572 dated 01/04/95.
28. In 1998, an inventory conducted by DGS of the Federal Surplus Property
acquired by the FCCD disclosed the following:
a. None of the property still under restriction was located at the FCCD;
b. The property was being utilized or had been utilized by two Board
Members (Shepler and Stephens) for their personal use.
29. The inventory was conducted by DGS following receipt of information that
purchases from the surplus program were made for personal use.
a. The inventory took into account merchandise from invoices relating to
purchases made within one year of notification of a possible program
violations.
b. The inventory did not review purchases made prior to 1997.
30. On July 20, 1998, the Director of the Bureau of Supplies and Surplus
Operations, Department of General Services, advised the FCCD Board of-
Directors by letter, that the District was immediately suspended from
participation in the Federal Surplus Property Program.
a. Specific conditions cited were Part VI Terms and Conditions on Donable
Property and SubChapter H - Utilization and Disposal, Property
Distributed to Donees.
b. This referral, in part, to purchases made by David Shepler.
31. Shepler received a private pecuniary benefit when he purchased items from
Federal Surplus in his position as a FCCD board member:
a. Market Basket Cost:
Amount Paid:
Total
$1,787.10
$ 997.71
$ 789.39
The following findings related to the allegation that FCCD board members and the
district manager have attended various conferences and conventions relating to the
activities of the FCCD.
32. In 1996, Shepler attended the National Association of Conservation Districts'
(NACD) Annual Conference held in Las Vegas, Nevada, February 4 -7, 1997.
33. Travel arrangements, including airline reservations and hotel accommodations,
were made by the FCCD manager, Thelma Adams, through Holiday Travel
International, 184 Finley road, Belle Vernon, PA 15012, by Donald Stephens on
December 16, 1995.
a. The arrangements were made for four FCCD Board members, the District
Manager, and their spouses.
Shepler, 98- 049 -C2
Page 11
b. District Manager Thelma Adams accompanied her husband Board
Member Thomas Adams.
c. The three other Board Members attending the conference and their
wives were: David and Laura Mae Shepler; Donald and Carlotta Stephens;
and Robert and Evelyn Constantine.
34. FCCD General Fund check #3718, dated December 14, 1995, in the amount of
$3,648.00 was issued to Holiday Travel International in payment of the travel
arrangements.
Hotel accommodations for four couples were booked at the Riviera Hotel
and Casino, for four nights including February 4 -7, 1996.
Rates were $68.50 per night, for a total hotel charge of $1,096.00.
1) Hotel rates did not include an extra charge for double occupancy.
2) Lodging for 2/3, 2/8 and 2/9, was not part of the arrangements
made by Holiday Travel.
c. Airfare for eight persons totaled $2,552.00, or $319.00 each person.
35. The Treasurer's Report attached to the January 15, 1996, FCCD Board Meeting
Minutes, included the payment to the Holiday Travel for the NACD Meeting in
the amount of $3,648.00.
a.
b.
36. A Motion to approve the minutes of a treasurer's report as mailed to directors
was made by Adams and seconded by Shepler.
a. No roll call vote was recorded.
b. Members present included: Stephens, Shepler, Adams, Butler, and
Moyer. Absent were Constantine and Vicites.
37. Board members attending the NACD Annual Conference in 1996 were provided
with advances to cover meals and miscellaneous expenses.
a. Advances were issued from the FCCD Tree Account.
38. An advance check number 212 dated 11/19/96 was issued to David Shepler in
the amount of $1,200.00.
39. Advance checks were also issued to board members Stephens, Adams and
Constantine.
a. Stephens and Adams received checks in the amount of $2,000.00.
b. Constantine received an advance in the amount of $1,200.00.
40. All advance checks issued to the board members attending the 1996 Annual
NACD Conference in Las Vegas, Nevada, were authorized by Chairman Donald
Stephens and Thelma Adams, District Manager.
a. There was no vote of the board to approve the advances.
Shepler, 98- 049 -C2
Page 12
41. No receipts were submitted to the FCCD for meals and miscellaneous expenses
incurred by the attending board members.
42. Shepler did not return any portion of the money advanced to him for his
attendance at the 1996 NACD Conference.
43. The $ 1,200 advance received by Shepler was used for expenses incurred by
him and his wife.
44. Shepler received a private pecuniary benefit of $319.00 when the FCCD paid
for Shepler's wife's air travel to the 1996 NACD Conference in Las Vegas,
Nevada.
45. In August 1994, Shepler attended the Northeast Area Annual Conference in
Waterbury, Connecticut.
a. The conference was held 08/14- 08/17/94.
46. Shepler attended the meeting as a FCCD Board Member and as a State
Conservation Commission Executive Committee member.
47. Shepler submitted Travel Expense Voucher (TEV) #958020 (Commonwealth of
PA Form STD -191 Revised 7 -89) on 10/24/94, to the State Conservation
Commission which included expenses for mileage and subsistence for his
attendance at the NE Area Annual Conference in Waterbury, Connecticut.
a. Total reimbursement claimed was $304.50, $289.50, of which related
to travel to the Northeast Area Annual Conference.
b. Mileage was claimed at .25 /mile for 870 miles totaling $217.50.
c. Subsistence of $24.00 per diem was claimed for three days totaling
$72.00.
d. No lodging reimbursement was submitted.
e. The TEV also included mileage reimbursement for attending a meeting of
the PA State Association of Conservation Districts totaling $15.00.
1) Shepler's lodging was paid with a Hotel Order.
2) Shepler did not claim subsistence reimbursement.
48. Shepler also submitted the expenses he incurred while attending the Northeast
Area Annual Conference, to the FCCD for reimbursement.
49. FCCD made a reimbursement to Shepler for the expenses he submitted for the
Northeast Area Annual Conference.
a. Shepler was reimbursed from the General Fund on 09/14/94, in the
amount of $524.10.
b. The reimbursement included the following expenses:
Lodging for three nights $201.60 receipt provided
Mileage 870 m. @ $.25/m. 217.50
Shepler, 98- 049 -C2
Page 13
III. DISCUSSION:
Meals 8/14 - 24.00
8/15 - 32.00
8/16 - 24.00
8/17 - 25.00
105.00 no receipts
$524.10 - Total
50. The FCCD Treasurer's Report dated December 14, 1994, reflected the receipt
of $304.50 from David Shepler, representing the reimbursement he received
from the State Conservation Commission.
a. The $304.50 was deposited into the FCCD General Fund.
51. The $304.50 represented the entire amount reimbursed to Shepler by the State
Conservation Commission for the expenses he incurred while attending the
Northeast Area Annual Conference in Waterbury, Connecticut in 1994.
The following findings relate to the allegation that David Shepler failed to file
Statements of Financial Interests for the 1994, 1995 and 1997 calendar year.
52. As a member of the FCCD, David Shepler was required to file Statements of
Financial Interests by May 1st of each year for information relating to the
previous calendar years.
53. Shepler filed a deficient Statement of Financial Interests with the Fayette
County Conservation District on June 5, 1997.
a. Financial Interests categories 12, 13, and 14 are marked "none ".
b. Financial Interests categories 11, 15 and 16 are blank.
c. Financial Interests category 9 is incomplete.
54. No other Statements of Financial Interests were filed by Shepler with the FCCD.
a. Shepler did not file Statements of Financial Interests for the 1994 and
1995 calendar years with the FCCD.
55. Shepler filed Statements of Financial Interests with the State Ethics Commission
as a member of the State Conservation Commission:
a. Calendar year 1994 filed on March 27, 1995.
b. Calendar year 1995 filed on February 1, 1996.
At all times relevant to this matter, the Respondent, David Shepler, hereinafter
Shepler, has been a public official subject to the provisions of the Public Official and
Employee Ethics Act ( "Ethics Act "), Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401,
gt ems. /Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101, et seq.
The issue is whether Shepler violated Sections 1103(a) and 1 104(a) as to the
allegations that he used the authority of his office for a private pecuniary benefit by
making purchases paid with Fayette Court Conservation District (FCCD) funds from the
Federal Surplus Property Program for his personal use; by failing to file Statements of
Sheeler, 98- 049 -C2
Page 14
Financial Interests (SFI's) for the 1994, 1995 and 1997 calendar years; by receiving
expense reimbursement from both the State Conservation Commission (SCC) and
FCCD for attending the Northeast Area Annual Conference; and by submitting
expenses for his spouse to travel to a conference.
Section 1 103(a) of the Ethics Act quoted above prohibits a public official /public
employee from using the authority of public office /employment or confidential
information received by holding such a public position for the private pecuniary benefit
of the public official /public employee himself, any member of his immediate family, or
a business with which he or a member of his immediate family is associated.
Section 1104(a) of the Ethics Act requires that each public official /public
employee must file a Statement of Financial Interests for the preceding calendar year,
each year that he holds the position and the year after he leaves it.
Having noted the issues and applicable law, we shall now summarize the
relevant facts.
Shepler served as a member of FCCD from 1957 to 1998 and as a member of
SCC from 1989 to 1996. FCCD participates in the Federal Surplus Property Program
administered by the General Services Administration. In turn, the Pennsylvania
Department of General Services (DGS) is the Commonwealth agency designated to
distribute surplus federal property within federal guidelines. Participation in the
program is open to governmental agencies, political subdivisions and nonprofit tax -
exempt organizations that serve the public good in areas of health or education. The
program is not open to the general public and purchases are not permitted for personal
use. Only individuals registered with DGS are permitted to sign for surplus property.
For FCCD, Board Chairman Donald Stevens and Shepler were the only two individuals
authorized to sign for such purchases. No FCCD em ployees made purchases other
than Shepler and Stevens.
Purchases made of surplus property at DGS are recorded in distribution
documents which set forth requirements that the property purchased be placed in use
within one year of acquisition and continue in use for at least one year after the initial
use.
As the FCCD representative, Shepler signed 18 receipts for items of a federal
surplus property between January, 1994, and July, 1997. All the purchases made by
Shepler are delineated in Fact Finding 18. The total of Shepler's purchases amounted
to $1,787.10 which value is based upon a factor of 23.3% of the federal cost.
Although the property acquired by Shepler should have been for FCCD purposes only,
Shepler through his position obtained the property for his own personal use. The
payments of $1,787.10 for Shepler's purchases were made from the FCCD's Tree
Account which is funded by proceeds from an annual tree sale by FCCD. Such
proceeds are limited inter alia to buying seedlings for subsequent tree sales and
purchases of surplus property. The expenditures from the FCCD Tree Account were
not voted by the Board.
In 1998, an inventory was conducted by DGS of the surplus property acquired
by FCCD. DGS determined that none of the property was located at FCCD and was
being utilized by Board Members Shepler and Stevens for their personal use. On July
20, 1998, DGS advised the FCCD Board that it was immediately suspended from
participation in the Federal Surplus Program. Shepler partially reimbursed the FCCD
Tree Account with two personal checks totaling $997.71. Shepler did not reimburse
the balance of $789.39.
Sher)ler, 98- 049 -C2
Page 15
In, 1996, Shepier attended the National Association of Conservation Districts
(NACD) Annual Conference in Las Vegas, Nevada. Arrangements were made for four
FCCD Board Members, the District Manager who is married to one of the Board
Members and their spouses. The travel arrangements included airfare and hotel
accommodations for four couples for four nights. Airfare was $319.00 per person and
lodging was $68.50 per night with no extra charge for double occupancy. In addition,
FCCD Board Members were provided with advances to cover meals and miscellaneous
expenses. Shepier received an advancement of $ 1,200.00 for expenses incurred by
him and his spouse. Shepier received a pecuniary benefit of $319.00 when FCCD paid
for his spouse's airfare to the NACD Conference.
In August, 1994, Shepier attended the Northeast Area Annual Conference in
Waterbury, Connecticut. Shepier submitted a travel expense voucher to SCC for
mileage and subsistence for his attendance at the conference. The total
reimbursement claim of Shepier was $304.50 based upon mileage of $217.50 and
subsistence of $72.00 for three days. Shepier submitted to FCCD another expense
reimbursement claim for his attendance at that very same conference. Shepier sought
reimbursement from FCCD in the amount of $524.10 based upon $201.60 for three
nights lodging, $217.50 for mileage and $105.00 for which there were no receipts.
Subsequently, Shepier deposited the sum of $304.50 into the FCCD general fund,
which payment equaled the reimbursement he received from SCC.
As an FCCD member, Shepier was required to file SFI's. Shepier filed a
deficient SFI in 1997, apparently for the 1996 calendar year, and did not file for 1994
and 1995 calendar years with FCCD although he did file with this Commission in such
calendar years as a SCC Board Member.
Having summarized the above relevant facts, we must now determine whether
the actions of Shepier violated Section(s) 1103(a) and 1104(a) of the Ethics Act.
As to the purchases that Shepier made from the Federal Surplus Property
Program for his own personal use, such actions by Shepier were uses of authority of
office. But for the fact that Shepier was a member of the FCCD Board, he could not
have been the authorized representative of FCCD to purchase surplus property through
DGS. See, Juliante Order 809. The uses of authority of office by Shepier resulted in
a pecuniary benefit consisting of the property that he received at reduced prices. The
pecuniary benefit was a private one because there was no authorization in law for
Shepier to obtain the federal surplus property for his own personal use. In fact,
Federal Regulations expressly prohibit such action. Lastly, the private pecuniary
benefit inured to Shepier himself. Accordingly, Shepier violated Section 1103(a) of the
Ethics Act when he used the authority of office to obtain a private pecuniary benefit
for himself consisting of federal surplus property that he purchased as an FCCD Board
Member with FCCD funds for his own personal use. Bumiller, Order 1036.
Regarding the 1996 NACD Annual Conference, there was a use of authority of
office by Shepier in opting to take his spouse on that trip at FCCD expense. Such use
of authority of office resulted in a pecuniary benefit consisting of the airfare that
Shepier did not have to personally pay. The pecuniary benefit was private because
there is no authorization in law for the FCCD to pay the travel expense for Shepler's
spouse. Lastly, the private pecuniary benefit inured to Shepler's spouse who is a
member of his immediate family as that term is defined in under the Ethics Act. See,
65 Pa.C.S. §1102. Accordingly, Shepier violated Section 1103(a) of the Ethics Act
when he used the authority of office to take his spouse to a NACD conference in Las
Vegas, Nevada at FCCD expense. See, Savitsky, Order 1017.
Shepler, 98- 049 -C2
Page 16
Regarding the SFI's filed by Shepler, the record reflects that Shepler filed an SFI
in 1997, apparently for the calendar year 1996, which was deficient. Shepler filed
SFI's for the 1994 and 1995 calendar years with this Commission as a SCC Board
Member but did not file such SFI's for those calendar years with the FCCD. Hence,
technical violations of Section 1104(a) of the Ethics Act occurred when Shepler failed
to file SFI's for the calendar years 1994, 1995, 1997.
The parties have submitted a Consent Agreement together with a Stipulation of
Findings wherein it is proposed to resolve this case by finding that Shepler violated
Section 1103(a) of the Ethics Act when he made purchases of federal surplus property
at FCCD expense for his personal use and when he obtained airfare for his spouse to
a convention at FCCD expense; that he committed technical violations of Section
1104(a) of the State Ethics Act when he failed to file SFI's for the 1994, 1995 and
1997 calendar years; and that Shepler will pay $1,008.39 ($789.39 + $319.00)
within 30 days of the issuance of this Order through this Commission to FCCD.
Accordingly, Shepler is directed to make payment of $1,008.39 as per the above
agreement. Compliance with the foregoing will result in the closing of this case with
no further action. Noncompliance will result in the institution of an order enforcement
action.
Lastly, we note that the Consent Agreement which sets forth a proposed
resolution of the allegations is the proper disposition for this case based upon our
review as reflected in the above analysis and the totality of the facts and
circumstances.
IV. CONCLUSIONS OF LAW:
1. David Shepler, as a member of the Fayette County Conservation District
Board of Directors was a public official subject to the provisions of Act
9 of 1989/Act 93 of 1998, Chapter 11:
2. Shepler violated Section 1103(a) of the Ethics Act when he used the
authority of office to obtain a private pecuniary benefit for himself
consisting of federal surplus property purchased with FCCD funds for his
own personal use.
3. Shepler violated Section 1 103(a) of the Ethics Act when he used the
authority of office to obtain airfare for his spouse to a NACD conference
at FCCD expense.
4. Technical violations of Section -1104(a) of the Ethics Act occurred when
Shepler failed to file Statements of Financial Interest for the calendar
years 1994, 1995, 1997 at FCCD.
In Re: David Shepier
Commissioner Julius Uehlein dissents.
ORDER NO. 1127
File Docket: 98- 049 -C2
Date Decided: 6/1/99
Date Mailed: 6/10/99
1. David Shepier, as a member of the Fayette County Conservation District Board
of Directors violated Section 1103(a) of the Ethics Act when he used the
authority of office to obtain a private pecuniary benefit for himself consisting of
federal surplus property purchased with FCCD funds for his own personal use.
2. Shepier violated Section 1103(a) of the Ethics Act when he used the authority
of office to obtain airfare for his spouse to a NACD conference at FCCD
expense.
3. Technical violations of Section 1104(a) of the Ethics Act occurred when
Shepier failed to file Statements of Financial Interest for the calendar years
1994, 1995, 1997 at FCCD.
4. Per the Consent Agreement of the parties, Shepier is directed to make
payment of $ 1,008.39 within 30 days of the issuance of this order through this
Commission to the Fayette County Conservation District.
a. Compliance with the foregoing will result in the closing of this .
case with no further action by the Commission.
b. Non - compliance will result in the institution of an order
enforcement action.
BY THE COMMISSION,
ee� &4
DANEEN E. REESE, CHAIR