HomeMy WebLinkAbout991 BellSTATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
In Re: Edward B. Bell File Docket: 91 -018 -C
Date Decided: 12/7/95
Date Mailed: 12/15/95
Before:
Daneen E. Reese, Chair
Austin M. Lee, Vice Chair
Roy W. Wilt
Allan M. Kluger
John R. Showers
Rev. Joseph G. Quinn
Boyd E. Wolff
The Investigative Division of the State Ethics Commission
conducted an investigation regarding a possible violation of the
State Ethics Act, Act 170 of 1978, P.L. 883. Written notice of the
specific allegations was served at the commencement of the
investigation. A consent agreement 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.
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 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. Any person who violates
confidentiality of the Ethics Law 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). Confidentiality does not
preclude discussing this case with an attorney at law.
Bell, 91 -018 -C
Page 2
I. ALLEGATION:
That Edward B. Bell, Director of Marketing for the
Pennsylvania Lottery, violated the following provisions of the
State Ethics Act (Act 170 of 1978), when he received gifts valued
in the aggregate of $200.00 or more in the for of meals and drinks
from Lewis, Gilman & Kynett, British American Bank Note Company and
Control Data Corporation, firms having contracts with the Lottery,
failed to report receipt of these gifts on his Statement of
Financial Interests filed for calendar year 1988, and failed to
file a Statement of Financial Interests for calendar year 1989:
Section 4. Statement of financial interests
required to be filed.
(a) Each public employee employed by the
Commonwealth shall file a statement of
financial interests for the preceding calendar
year with the department, agency or bureau in
which he is employed 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 shall file a statement
of financial interests with the governing
authority of the political subdivision by
which he is employed no later than May 1 of
each year that he holds such a position and of
the year after he leaves such a position. 65
P.S. 5404(a).
Section 5. Statement of financial interests.
(b) The statement 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:
(6) The name and address of any person from
whom a gift or gifts valued in the aggregate
at $200 or more were received, and the value
and the circumstances of each gift. However,
this provision shall not be applicable to
gifts received from the individual's spouse,
parents, parents by marriage, siblings,
children or grandchildren. 65 P.S.
5405(b)(6).
Bell, 91 -018 -C
Page 3
II. FINDINGS:
a. Bell held this position in 1988 and 1989.
1. Edward B. Bell serves as Director of Marketing for the
Pennsylvania Lottery (Lottery).
2. One of Bell's duties as Director of Marketing for the Lottery
was to participate in the approval process of contracts
entered into by the Lottery.
a. Bids were usually obtained through Requests for Proposals
(RFP's) .
b. In his position, Bell was able to recommend approval or
disapproval of proposed contracts to the Executive
Director of the Lottery, who in turn forwarded
recommendations to the Secretary of Revenue.
3. The firm of Lewis, Gilman & Kynett (LG&K) of Philadelphia was
under contract with the Pennsylvania Lottery in 1988 to
provide certain advertising services.
a. This contract was in effect between July 1, 1988, and
June 30, 1991.
b. In exchange for its services, LG&K was to receive a sum
of $12.2 million dollars per year under the contract.
4. The British American Bank Note Company (BABN) was under
contract with the Pennsylvania Lottery during 1988 and 1989.
a. BABN was contracted to provide the Lottery with instant
tickets.
5. Control Data Corporation (CDC) was under contract with the
Lottery during 1988 and 1989.
a. CDC was contracted to operate the Lottery's online
computer system.
6. Corporate Expense Reports indicated that employees of LG&K,
BABN and CDC provided Bell with meals and beverages during
1988 and 1989 calendar years.
a. LG&K
b. BABN
121.11 1989 Total
$565.00 $266.00 $831.00
$ 77.00 $140.00 $217.00
Bell, 91 -018 -C
Page 4
c. CDC $ 84.00 $390.00 $474.00
7. Receiving meals and beverages from vendors was a regular
practice involving Lottery officials.
a. Bell and other lottery officials received meals from
LG&K, BABN and CDC.
8. Bell did not demand meals from vendors but company
representatives offered and paid.
a. Bell asserts that meals provided were a carry over of
business meetings or discussions.
b. It was an industry standard for advertising companies to
take Lottery officials to dinner and /or lunch.
9. Edward B. Bell filed a Statement of Financial Interests for
the 1988 calendar year on March 23, 1989.
a. The form bears the signature of Edward B. Bell.
b. Line 12 of the Statement of Financial Interests titled
"Gifts" discloses "None."
10. Bell did not disclose gifts received from LG&K in excess of
$200.00 in 1988 on his Statement of Financial Interests filed
on March 23, 1989.
11. Bell did not file a Statement of Financial Interests for the
1989 calendar year.
III. DISCUSSION:
As Director of Marketing for the Pennsylvania Lottery, Edward
B. Bell, hereinafter Bell, is a public official /public employee as
defined in the Ethics Act, 65 P.S. §402; 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 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
governed by the prior law, which is continued
in effect for that purpose as if this act were
not in force. For the purposes of this
section, a violation was committed prior to
Bell, 91 -018 -C
Page 5
Since
effective
provisions
Ethics Act
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.
act if any elements
prior thereto.
case transpired prior to
, 1989), we must apply
883, to determine whether
the
the
the
Section 4(a) of the Ethics Act quoted above requires that each
public employee and each public official (Kremer v. State Ethics
Commission, 56 Pa. Commw. 160, 424 A.2d 968 (1981)) must file a
Statement of Financial Interests each year that he holds the
position and the year after he leaves the position.
Section 5(b)(6) of Act 170 of 1978 requires that a public
official /employee list in his Statement of Financial Interests any
gift or gifts valued in the aggregate at $200.00 or more, except
for gifts received from the individual's spouse, parents, parents
by marriage, siblings, children or grandchildren.
Where disclosure of a gift or gifts is required, such
disclosure must include the name and address of the donor and the
value and the circumstances of each gift.
The issues before us are whether Bell violated Section 4(a) of
Act 170 of 1978 regarding the allegation that he failed to file a
Statement of Financial Interests for calendar year 1989, and
whether Bell violated Section 5(b)(6) of Act 170 of 1978 regarding
the allegation that he received gifts valued in the aggregate at
$200.00 or more in the form of meals and drinks from Lewis, Gilman
& Kynett(LG &K), the British American Bank Note Company(BABN), and
Control Data Corporation(CDC), which gifts he failed to report on
his Statement of Financial Interests filed for calendar year 1988.
Factually, the parties have stipulated that receiving meals
and beverages from vendors was a regular practice involving Lottery
officials. Bell, as well as other Lottery officials, received
meals from LG &K, BABN, and CDC. In 1988, LG &K was under contract
with the Pennsylvania Lottery to provide certain advertising
services. During 1988 and 1989, BABN was under contract with the
Pennsylvania Lottery to provide "instant tickets," while CDC was
contracted to operate the Lottery's on -line computer system. In
both years, according to corporate expense reports, employees of
each of these three vendors provided Bell with meals and
beverages.
The values of these gifts are detailed in finding 6. The
meals and beverages provided to Bell by BABN were less than $200.00
for each year. The meals and beverages provided to Bell by CDC
were under the $200.00 threshold in 1988 but they exceeded the
threshold in 1989. LG &K provided Bell with meals and beverages
valued in excess of $200.00 in both years, 1988 and 1989.
Bell, 91 -018 -C
Page 6
It
vendors,
them.
provided
is noted that Bell did not demand the meals from the
but rather, the company representatives offered to provide
Furthermore, according to Bell, the meals which were
were a carryover of business meetings or discussions.
Bell filed a Statement of Financial Interests for calendar
year 1988 which failed to disclose the aforesaid gifts
Specifically, Bell failed to disclose gifts in excess of $200.00
received from LG&K in 1988. Furthermore, Bell failed to file a
Statement of Financial Interests for calendar year 1989.
In applying Section 4(a) of Act 170 of 1978 to Bell's
stipulated failure to file a Statement of Financial Interests for
the 1989 calendar year, we find a technical violation of Section
4(a).
In applying Section 5(b) (6) of Act 170 of 1978 to the above
facts, we find a technical violation as to Bell's failure to
disclose the aforesaid gifts from LG&K in 1988. It is clear that
these gifts exceeded the $200.00 threshold and should have been
disclosed.
In light of the fact that Bell has voluntarily agreed to amend
the Statement of Financial Interests for the 1988 calendar year to
include these gifts from LG&K, and has further agreed to file a
Statement of Financial Interests for calendar year 1989 which is to
include a listing of meals, drinks and gifts received from LG&K and
CDC in calendar year 1989, we shall take no further action. We
approve the consent agreement which we believe to be the proper
disposition for this case given the totality of the facts and
circumstances. We specifically note the fact that Bell's failure
to make the requisite disclosures was unintentional in that he was
unaware that the aggregate value of the meals and drinks from these
companies had exceeded $200.00 for the years in question.
IV. CONCLUSIONS OF LAW:
1.
As Director of Marketing for the Pennsylvania Lottery,
B. Bell is a public official /public employee subject
provisions of Act 170 of 1978.
Edward
to the
2. A technical violation of Section 4(a) of Act 170 of 1978
occurred when Bell failed to file a Statement of Financial
Interests for calendar year 1989.
3. A technical violation of Section 5(b) (6) of Act 170 of 1978
occurred when Bell received gifts valued in the aggregate at
$200.00 or more in the form of meals and drinks from Lewis,
Gilman & Kynett and failed to report receipt of these gifts on
his Statement of Financial Interests filed for calendar year
1988.
Dell, 91 -018 -C
Page 7
4. No violation of Section 5(b)(6) of Act 170 of 1978 occurred as
to gifts in the form of meals and drinks received by'Bell from
British American Bank Note Company and Control Data
Corporation in calendar year 1988 in that such gifts were not
valued in the aggregate at $200.00 or more.
In re: EDWARD B. BELL File Docket: 91 -018 -C
Date Decided: 12/7/95
. Date Mailed: 12/15/95
ORDER NO. 991
BY THE COMMISSION,
1. A technical violation of Section 4(a) of Act 170 of 1978
occurred when Edward B. Bell, Director of Marketing for the
Pennsylvania Lottery, failed to file a Statement of Financial
Interests for calendar year 1989.
2. A technical violation of Section 5(b) (6) of Act 170 of 1978
occurred when Bell received gifts valued in the aggregate at
$200.00 or more in the form of meals and drinks from Lewis,
Gilman & Kynett and failed to report receipt of these gifts on
his Statement of Financial Interests filed for calendar year
1988.
3. Bell did not violate Section 5(b)(6) of Act 170 of 1978 as to
gifts in the form of meals and drinks received by Bell from
British American Bank Note Company and Control Data
Corporation in calendar year 1988 in that such gifts were not
valued in the aggregate at $200.00 or more.
4. Bell is directed within 30 days of issuance of this Order to
file an amended Statement of Financial Interests for calendar
year 1988 to reflect the acceptance of meals and drinks in
excess of $200.00 from Lewis, Gilman & Kynett as to 1988.
5. Bell is directed within 30 days of issuance of this Order to
file a Statement of Financial Interests for calendar year 1989
which Statement is to include a listing of meals, drinks and
gifts received from Lewis, Gilman & Kynett and Control Data
Corporation in calendar year 1989.
6. Compliance with the above will result in the closing of this
case with no further action, while failure to comply with the
above will result in the institution of an order enforcement
action.
OYCIALEPAU6
DANEEN E. REESE, CHAIR