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HomeMy WebLinkAbout777 ReganIn re: Bernard J. Regan STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 : File Docket: 89 -049 -C : Date Decided: December 6, 1990 : Date Mailed: December 7_ 1990 Before: Robert W. Brown, Vice Chair G. Sieber Pancoast Dennis C. Harrington James M. Howley The State Ethics Commission received a complaint regarding a possible violation of the State Ethics Act, No. 170 of 1978, 65 P.S. 401 et. seq. 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 filed and a hearing was waived. The record is complete. 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, 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 S2.38. The files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 408(a) 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). II. Findings: ADJUDICATION I. Allegation: That you, a Candidate for Pittsburgh City Council, violated the State Ethics Act (Act 170 of 1978), when you failed to list income received from rental properties on a Statement of Financial Interests dated March 6, 1989: 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: (5) The name and address of any person who is the direct or indirect source of income totalling in the aggregate $500 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. 65 P.S. S405(b)(5). S5.7. Income disclosure. (a) The name and address of the person, including employers, who is the direct or indirect source of income totaling in the aggregate of $500 or more for the person required to file, his spouse, minor dependent children shall be listed unless otherwise limited as set forth in this section. 51 Pa. Code §5.7(a). 1. Bernard Regan serves as a member of the city council for the City of Pittsburgh, Allegheny County, Pennsylvania. a. He has served in this position since January, 1990. 2. Bernard Regan was a candidate for the Office of Pittsburgh City Council, (District I), during the primary and general elections of 1989. 3. The records of the city of Pittsburgh and of Bellview Borough indicate that Bernard J. Regan either individually or jointly with others has an interests in the following properties: 516 Lockhart Street, Pittsburgh, Pennsylvania. 518 Lockhart Street, Pittsburgh, Pennsylvania. 912 Middle Street, Pittsburgh, Pennsylvania. 914 Middle Street, Pittsburgh, Pennsylvania. 525 Avery Street, Pittsburgh, Pennsylvania. Mr. Bernard J. Regan Page 3 527 Avery Street, Pittsburgh, Pennsylvania. 532 Avery Street, Pittsburgh, Pennsylvania. 2628 Leland Street, Pittsburgh, Pennsylvania. 3854 Baytree Street, Pittsburgh, Pennsylvania. 3856 Baytree Street, Pittsburgh, Pennsylvania. 139 Van Buren Street, Pittsburgh, Pennsylvania. 141 Van Buren Street, Pittsburgh, Pennsylvania. 4451 High Ridge Street, Pittsburgh, Pennsylvania. 4455 High Ridge Street, Pittsburgh, Pennsylvania. 4461 High Ridge Street, Pittsburgh, Pennsylvania. 562 Maryland Street, Bellview, Pennsylvania. 601 Middle Street, Pittsburgh, Pennsylvania. 4. Monument Hill Associates is a partnership in which Bernard Regan has an interest. 5. Records of Atchmont Realty indicate that various properties are managed for Bernard Regan or Monument Hill Associates from which rent is received as follows: a. 518 Lockhart Street, first floor $250 monthly, second $285 monthly, third floor $242 monthly. b. 525 Avery Street, Pittsburgh, Pennsylvania, first floor $285 monthly, second floor $325 monthly. c. 527 Avery Street, Coach House $325 monthly, first floor $200 monthly, second floor $285 monthly. d. 532 Avery Street, first floor $310 monthly, second floor $266 monthly. 6. There has been some turnover of tenants in the above rental units however, all of the apartments have been rented during the period from 1987 through 1989. 7. The property at 601 Middle Street is a vacant lot. 8. The property at 139 -141 Van Buren Street, Pittsburgh, Pennsylvania, produced income as follows: a. Gross income 1988, $6,100. b. Gross income 1989, $7,215. 9. The property at 562 Maryland Avenue, Bellview, Pennsylvania, is a three story apartment building containing 22 units. Units rent Mr. Bernard J. Regan Page 4 for the following costs: One bedroom, $340, (with balcony $355); one bedroom split level, $380; two bedroom split level, $450. a. Gross income for 1988 totalled $47,500. b. Gross income for 1989 totalled $49,500. 10. The property at 2628 Leland Street, Pittsburgh, Pennsylvania, was sold approximately two years ago and is currently the subject of a land agreement. 11. The property at 4451 High Ridge Street, Pittsburgh, Pennsylvania, is a five unit complex, and produced income as follows: a. Gross income 1988, $14,535. b. Gross income 1989, $17,945. 12. The property at 4461 High Ridge Street, Pittsburgh, Pennsylvania, is a two unit complex, and produced income as follows: a. Gross income 1988, $6,135. b. Gross income 1989, $6,960. 13. The property at 912 Middle Street, Pittsburgh, Pennsylvania, is a four unit complex in which units rent for $150 monthly. 14. The property at 516 Lockhart Street, Pennsylvania, is a vacant building with boards on the windows. 15. Records of the State Ethics Commission indicate a Statement of Financial Interests on file for Bernard J. Regan, 3856 Baytree Street, Pittsburgh, Pennsylvania. a. The Statement is filed in his position as a candidate for the position of Pittsburgh City Council member. b. Real estate interests: none. Creditors: Slovak Savings and Loan; Community Savings and Loan; GBW. c. Direct or indirect sources of income: Pittsburgh Limo Service; Pittsburgh Flower Incorporated; Stealer Basketball Team; Monument Hill Associates; Northside Deposit Bank. d. Office or directorship or employment in any business: Pittsburgh Limo Incorporated (President); Pittsburgh Mr. Bernard J. Regan Page 5 Flowers Incorporated (President); Regan and Shay T/A Monument Hill Associates (Partner). e. Financial interests in any legal entity and business for profit same entities as #14 above. 16. The above Statement of Financial Interests was dated March 6, 1989, regarding Bernard Regan's financial interests for calendar 1988 and was received at the offices of the State Ethics Commission on March 7, 1989. 17. By way of letter dated September 28, 1989 (received October 5, 1989) Bernard J. Regan filed an amendment to his 1989 Statement of Financial Interests. a. That amendment indicates that in relation to category #9 (real estate interests) he has no interests in any real estate that was subject to condemnation . proceedings or that was purchased or leased from, sold or leased to the Commonwealth of Pennsylvania any of its agencies or political subdivisions. The letter further indicated that it was Regan's requests to amend box 9 to show not applicable in light of the fact that he owns other real estate in addition to his primary residence. 18. By way of letter dated January 15, 1990 (received January 24, 1990) Bernard J. Regan further amended his 1989 Statement of Financial Interests to show the following real estate interests: 912 and 914 Middle Street, Pittsburgh, Pennsylvania (source of income from rental properties). 525 and 532 Avery Street; 601 Middle Street. 527 Avery Street (indirect source of income from Monument Hill Associates). 516 Lockhart Street, Pittsburgh, Pennsylvania (indirect source of income from Monument Hill Associates). 518 Lockhart Street, Pittsburgh, Pennsylvania (indirect source of income from Monument Hill Associates). 3856 and 3854 Baytree Street, Pittsburgh, Pennsylvania (source of income from rental property). 139 Van Buren Street, Pittsburgh, Pennsylvania (source of income from rental property). Mr. Bernard J. Regan Page 6 4451 High Ridge Street (source of income from rental property). 4461 High Ridge Street (source of income from rental property). 562 Maryland Avenue, from rental property 2628 Leland Street, of real property). Bellview, Pennsylvania (source of income ). Pittsburgh, Pennsylvania (income from a sale Note: 4455 High Ridge Street is crossed off the list appended by Mr. Regan. 19. Records of the City of Pittsburgh, City Clerks Office indicate that a copy of the Statement of Financial Interests identified in Findings 15 -16 above was filed at that location on March 7, 1989. III. Discussion: As a candidate for the Office of Pittsburgh City Council, Bernard Regan, hereinafter Regan, is subject to the filing requirements as to the Financial Interests Statements under the Ethics Law. Section 5(b)(5) of the Ethics Law quoted above requires that the Statement of Financial Interests shall contain financial disclosure for the prior calendar year which must include inter alia the name and address of any person who is a direct or indirect source of income totalling five hundred dollars or more in aggregate. Initially, it is noted that Section 5 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 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 October 4, 1978, P.L. 883 to determine whether the Ethics Act was violated. The issue before us is whether Regan as a candidate for Pittsburgh City Counsel violated Section 5(b)(5) of the Ethics Act by failing to Mr. Bernard J. Regan Page 7 disclose various real estate interests which generated income to him in the 1988 calendar year which exceeded the five hundred dollar reporting amount set forth in Section 5(b)(5). The real estate listed in Fact Finding 3 is either owned outright by Regan individually or jointly with others. In addition, Regan or Monument Hill Associates, a partnership in which Regan has an interest, has some of these properties managed from which rent is received. The properties in the latter category are listed in Fact Finding 5. When Regan filed his Statement of Financial Interests as a candidate, he listed under the category of direct or indirect sources of income: Pittsburgh Limo Service, Pittsburgh Flower Incorporated, Steeler Basketball Team, Monument Hill Associates and North West Deposit Bank. There was no listing of income from real estate interests. Thereafter by letter dated September 28, 1989, Regan filed an amended 1989 Statement of Financial Interests reflecting that he had no real estate interests which were subject to condemnation or leased to the Commonwealth or a political subdivision. Thereafter, by letter dated January 15, 1990, Regan filed a second amendment to his 1989 Statement of Financial Interests which contained the listing of real interests set forth in Fact Finding 18 wherein he had received income totalling $500 or more in aggregate as to each of those properties. In applying the provisions of Section 5(b)(5) quoted above to the facts of this matter, we find a violation of Section 5(b)(5) in light of the failure by Regan to list the real estate interests set forth in Fact Finding 18 on his Statement of Financial Interests for the calendar year 1988. However, in light of the fact that there is no evidence to indicate an intent to conceal any financial interests and since Regan has filed an amended Statement of Financial Interests which now reflects those property interests as sources of income, we will take no further action. IV. Conclusions of Law: 1. Bernard J. Regan as a candidate for Pittsburgh City Council was subject to the filing requirements of the State Ethics Law. 2. A violation of Section 5(b) of the Ethics Act occurred when Regan failed to list realty from which he received income of $500 or more in aggregate. In re: Bernard J. Regan : File Docket: 89 -049 -C : Date Decided: December 6, 1990 : Date Mailed: ORDER No. 777 1. As a candidate for Pittsburgh City Council, Bernard J. Regan violated Section 5(b)(5) of the Ethics Law when he failed to list various real estate interests from which he received income of $500 or more in aggregate. 2. Since there is no evidence to indicate an intention to conceal financial interests for the 1988 calendar year and since an amended Statement of Financial Interests has been filed which includes the sources of income from the real estate, this Commission will take no further action. BY THE COMMISSION, ROBERT W. BROWN, VICE CHAIR Commissioner Dennis C. Harrington did not participate in the consideration of this matter.