Loading...
HomeMy WebLinkAbout987 ScrogginsIn re: JAMES R. SCROGGINS STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: Date Decided: Date Mailed: 91 -016 -C 10/26/95 11/8/95 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 Law, Act 170 of 1978, P.L. 883. Written notice of the specific allegation 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. Scroggins, 91 -016 -C page 2 I. ALLEGATIONt: That James R. Scroggins, former Executive Director of 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 form of meals and drinks from Lewis, Gilman & Kynett, British American Bank Note Company and Control Data Corporation, and failed to report receipt of these gifts on Statements of Financial Interests filed for the 1988 and 1989 calendar year. 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. §405 (b) (6) . II. FINDINGS: 1. James Scroggins served as Executive Director of the Pennsylvania Lottery (Lottery). a. Scroggins held this position in 1988 and 1989. 2. One of Scroggins' duties as Executive Director of 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, Scroggins would either recommend approval or disapproval of proposed contracts 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. Scroggins, 91 -016 -C page 3 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 on -line computer system. 6. Corporate Expense Reports indicate that employees of LG &K, BABN and CDC provided Scroggins with meals and beverages during 1988 and 1989 calendar years. 1988 1989 Total a. LG &K $728.00 $365.00 $1,093.00 b. BABN $124.00 $344.00 $ 468.00 c. CDC $106.00 $182.00 $ 288.00 7. Receiving meals and beverages from vendors was a regular practice involving Lottery officials. a. Scroggins and other Lottery officials received meals from LG &K, BARN and CDC. 8. Scroggins did not demand meals from vendors but company representatives offered and paid. a. Scroggins 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. James Scroggins filed a Statement of Financial Interests for the 1988 calendar year on March 23, 1989. a. The form bears the signature of James R. Scroggins. b. Line 12 of the Statement of Financial Interests titled Scroggins, 91 -016 -C page 4 "Gifts" discloses "None." 10. James Scroggins filed a Statement of Financial the 1989 calendar year on March 28, 1990. a. The form bears the signature of James R. Interests for Scroggins. b. Line 12 of the Statement of Financial Interests titled "Gifts" discloses "None." 11. Scroggins did not disclose gifts received from LG&K in excess of $200.00 in 1988 and 1989 on Statements of Financial Interests filed on March 23, 1989, and March 28, 1990. 12. Scroggins did not disclose gifts received from BABN in excess of $200.00 in 1989 on the SFI filed on March 28, 1990. 13. Scroggins voluntarily agrees to amend the Statements of Financial Interests for the 1988 and 1989 calendar years to include gifts received from LG &K and BABN in 1988 and 1989. III. DISCUSSION: In his former capacity as the Executive Director of the Pennsylvania Lottery, James R. Scroggins, hereinafter "Scroggins," would be a public official /public employee as defined in the Ethics Act, 65 P.S. §402; 51 Pa. Code §1.1. As such, his conduct would be subject to the provisions of the Ethics Act and the restrictions therein would be 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 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 the effective date of this act if any elements of the violation occurred prior thereto. Since the occurrences in this case transpired prior to the effective date of Act 9 (June 26, 1989), we must apply the provisions of Act 170 of 1978, P.L. 883, to determine whether the Ethics Act was violated. 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 Scroggins, 91 -016 -C page 5 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 issue before us is whether Scroggins 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 Statements of Financial Interests filed for calendar years 1988 and 1989. Factually, the parties have stipulated that receiving meals and beverages from vendors was a regular practice involving Lottery officials. Scroggins 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 Scroggins with meals and beverages. The values of these gifts are detailed in finding 6. The meals and beverages provided to Scroggins by CDC were less than $200.00 for each year. The meals and beverages provided to Scroggins by BABN were under the $200.00 threshold in 1988 but they exceeded the threshold in 1989. LG&K provided Scroggins with meals and beverages valued in excess of $200.00 in both years, 1988 and 1989. It is noted that Scroggins did not demand the meals from the vendors, but rather, the company representatives offered to provide them. Furthermore, according to Scroggins, the meals which were provided were a carryover of business meetings or discussions. Scroggins filed Statements of Financial Interests for calendar years 1988 and 1989 which failed to disclose the aforesaid gifts. Specifically, Scroggins failed to disclose gifts in excess of $200.00 received from LG &K in both 1988 and 1989 and from BABN in 1989. In applying Section 5(b) (6) of Act 170 of 1978 to the above facts, we find technical violations as to Scroggins's failure to disclose the aforesaid gifts from LG &K in 1988 and 1989 and from BABN in 1989. It is clear that these gifts exceeded the $200.00 threshold and should have been disclosed. In light of the fact that Scroggins has voluntarily agreed to amend the Statements of Scroggins, 91 -016 -C page 6 Financial Interests for the 1988 and 1989 calendar years to include these gifts, 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 Scroggins' 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. In his former capacity as Executive Director of the Pennsylvania Lottery, James R. Scroggins would be a public official /public employee subject to the provisions of Act 170 of 1978. 2. A technical violation of Section 5(b) (6) of Act 170 of 1978 occurred when Scroggins 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 Statements of Financial Interests filed for calendar years 1988 and 1989. 3. A technical violation of Section 5(b) (6) of Act 170 of 1978 occurred when Scroggins received gifts valued in the aggregate at $200.00 or more in the form of meals and drinks from British American Bank Note Company and failed to report receipt of these gifts on a Statement of Financial Interests filed for calendar year 1989. 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 Scroggins from Control Data Corporation in calendar years 1988 and 1989 in that such gifts were not valued in the aggregate at $200.00 or more. In re: JAMES R. SCROGGINS File Docket: 91 -016 -C Date Decided: 10/26/ 5 Date Mailed: 11 /8/95 ORDER NO. 987 1. A technical violation of Section 5(b) (6) of Act 170 of 1978 occurred when James R. Scroggins, in his former capacity as Executive Director of the Pennsylvania Lottery, 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 Statements of Financial Interests filed for calendar years 1988 and 1989. 2. A technical violation of Section 5(b)(6) of Act 170 of 1978 occurred when Scroggins received gifts valued in the aggregate at $200.00 or more in the form of meals and drinks from British American Bank Note Company and failed to report receipt of these gifts on a Statement of Financial Interests filed for calendar year 1989. 3. Scroggins did not violate Section 5(b) (6) of Act 170 of 1978 as to gifts in the form of meals and drinks received by Scroggins from Control Data Corporation in calendar years 1988 and 1989 in that such gifts were not valued in the aggregate at $200.00 or more. 4. Scroggins is directed within 30 days of issuance of this Order to file amended Statements of Financial Interests for calendar years 1988 and 1989 to reflect the acceptance of meals and drinks in excess of $200.00 from Lewis, Gilman & Kynett as to 1988 and 1989 and from British American Bank Note Company as to 1989. a. Compliance with the above will result in the closing of this case with no further action. b. Failure to comply with the above will result in the institution of an order enforcement action. BY THE COMMISSION, j a AtisAu6 Pus, DANEEN E. REESE, CHAIR