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HomeMy WebLinkAbout761 GilchristIn re: William S. Gilchrist STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: 89 -061 -C : Date Decided: August 16, 1990 Date Mailed: ¢ng isr 74, 1990 Before: Helena G. Hughes, Chair Robert W. Brown, Vice Chair G. Sieber Pancoast Dennis C. Harrington James M. Howley Daneen E. Reese 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 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 §2.38. 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 art -3aw:- - -- 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). ADJDDICATION 1. ALLEGATION: That you, a member of the Lackawanna County Multi - Purpose Stadium Authority, violated the following provisions of the Ethics Act, (Act 170 of 1978), when you failed to file statements of financial interest for the 1985, 1986, 1987, 1988 calendar years by May 1, of each year; and when you failed to fully disclose sources of income, financial interest in any legal entity and business for profit and office or directorship for employment in any business. 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. §404(a). §4.4.Incumbent and former public officials. (b) Incumbent public officials in governmental bodies other than those specified in subsection (a) who are not candidates shall file their Statement of Financial Interests only with their governmental body. 51 Pa. Code §4.4(b). 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 members of his immediate family: (5) The name and address of any person who is the direct or indirect source of -1Treom "$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. (8) Any office, directorship, or employment of any nature whatsoever in any business entity. Mr. William S. Gilchrist Page 2 (9) Any financial interest in any legal entity engaged in business for profit. 65 P.S. §405(b). II. FINDINGS: 1. You are presently a member of the Lackawanna County Multi - Purpose Stadium Authority. a. You were appointed to this position by the Lackawanna County Commissioners. b. You have served in this position for approximately 5 years. c. Your position with the Stadium Authority is a non - compensated position. 2. The Stadium Authority was created by the Lackawanna County Commissioners in April 1985 to finance the construction of a multi - million dollar baseball stadium. a. The Stadium Authority continues to exist today as it oversees the operations of the Stadium. 3. A review of the Statements of Financial Interest on file at the administrative offices of Lackawanna County found one statement on file for you. It indicated as follows: a. It was dated July 7, 1989. b. You did not list what calendar year it was for. c. You listed N/A as a source of income in excess of $500.00. You listed "yes" for having any financial interest in any legal entity in business for profit. 4. You are presently the president of Northeast Delivery Incorporated. a. On August 26, 1986, you entered into an agreement to convey land between Northeast Delivery Incorporated and the Stadium Authority for the consideration of $1.00. b. An important element of this consideration was the transfer of approximately 50 acres for the construction of a road linking Montage Mountain Road to Route 502. Mr. William S. Gilchrist Page 3 c. In consideration of this agreement the Stadium Authority agreed to pay you (Northeast Delivery Incorporated) eight hundred thousand dollars road together with site the of the sitepreparation for this construction. d. The road could provide a vital link between your property and Route 502 and Montage Road. It could greatly increase the value of your subdivided land parcels. (1) You assert that any increase in value of the subdivided land parcels is speculative and that the purpose of the roadway was to address certain exigencies as to necessary approvals and permits for the stadium. 5. Your attorney Brigid Carey forwarded the State Ethics Commission a Statement dated September 13, 1989 which disclosed the following information: a. The Borough of Moosic had placed the entire area where the Stadium and road were situated in a planned development zone which would require approval work or concurrence of the Borough of Moosic. b. As a Stadium Authority Member you did not participate in the decision to contribute to the cost of the construction of a road or placement of the Stadium near your property. c. As the owner of Northeast Delivery Incorporated the cost of the construction of the Road exceeded the amount of money contributed by the Stadium Authority. d No utilization of your property can occur without approval of the specific use or development proposal by the Borough of Moosic. e. Because of the inaccuracy and availability of sewage disposal it has forestalled sales on your land for commercial and residential use near the Stadium. Mr. William S. Gilchrist Page 4 f. The stadium authority was aware of your interest in the real estate where the stadium is situated as well as the surrounding real estate. 6. You provided the following information in the presence of your attorney Brigid Carey on January 8, 1990: a. You stated that it was not your intention not to disclose information on your statement of financial interests. b. Your reasoning for not disclosing information on your statement of financial interests was that you were involved in so many businesses and there was not enough room on the form to disclose all the information. c. You stated that you completed the Statement of Financial Interests without the benefit of counsel or other assistance and misunderstood the extent to which disclosure was required. 7. On January 18, 1990 you were instructed to file amended statements of financial interest for the calendar year 1985 through 1988 as soon as possible. 8. On February 20, 1990 the State Ethics Commission received through mail correspondence copies of your statements for the calendar years 1985, 1987, and 1988. a. Your 1986 statement was not included due to the fact that your Attorney Brigid Carey noticed there was an omission regarding a real estate transaction or gift with the Stadium Authority regarding the area of the Stadium at the Montage property. b. Your attorney Brigid Carey stated in a letter dated February 16, 1990 after the revisions were made a copy of your 1986 statement would be sent td the . State Ethics ... Commission. c. As of May 25, 1990 the State Ethics Commission had not received your amended form for the Calendar year 1986. (1) You state that your counsel directed you to deliver the 1986 statement to Lackawanna County so that office would forward the statement to the Commission. Mr. William S. Gilchrist Page 5 (2) By letter dated June 26, 1990, the Administrative Director of Lackawanna County forwarded your undated 1986 statement which was received at the Commission on July 2, 1990. 9. Your statement of financial interest for the calendar year 1985 indicate your sources of income as follows: NAME SOURCES Northeast Delivery Inc. 105 North Keyser Avenue Old Forge, Pennsylvania Montage Construction Co 105 North Keyser Avenue Old Forge, Pennsylvania 18518 . Inc. 18518 First National Bank of Jermyn 645 North Washington Avenue Jermyn, Pennsylvania 18433 First National Bank of Jermyn 645 North Washington Avenue Jermyn, Pennsylvania 18433 Penn Security Corner of North Washington & Spruce Streets Scranton, Pennsylvania 18503 Lake Winola Cottage Lake Winola, Pennsylvania 850 Third Avenue Partnership 8700 West Bryn Mawr Chicago, Illinois 60631 Lanai" roper ies 210 Collins Avenue Apartment 201 Bal Harbor, Florida 33154 Northeast Delivery Incorporated 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Wages Wages Interest Income Dividend Income Dividend Income Capital Gain Income Partnership Income Partnership Income S. Corp Income Mr. William S. Gilchrist Page 6 Terminal 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Cool Springs Complex 107 North Keyser Avenue Old Forge, Pennsylvania 18518 Barbara Apartments Main and Oaks Street Old Forge, Pennsylvania 18518 Lanai Apartments 10210 Collins Avenue Apartment 201 Bal Harbor, Florida 33154 Terminal 5 South Keyser Avenue Old Forge, Pennsylvania 18518 10. Your statement of financial interest for the calendar year 1985 indicating office, directorship, employment in any business entity and financial interest is as follows: PERCENT NAME TITLE OWNERSHIP Northeast Delivery Inc. Rental Income Rental Income Rental Income Rental Income Rental Income President 100% Gilchrist Trucking Inc. 105 N. Keyser Avenue Old Forge, PA 18518 President 70% Montage Construction Co., Incorporated 105 N. Keyser Avenue Old Forge, PA 18518 President 100% A & B Delivery Inc. 105 -N. Keyser_Avenue Old Forge, PA 18518 President 100% Northeast Dispatch Inc. 105 N. Keyser Avenue Old Forge, PA 18518 President 100% Alfa Northeast Motors, Inc. 425 Poplar Street Scranton, PA 18508 Vice President 50% Mr. William S. Gilchrist Page 7 First National Bank of Jermyn 645 N. Washington Ave. Jermyn, PA 18433 Share Holder N/A Penn Security Bank Corner of N. Washington and Spruce Streets Scranton, PA 18503 Share Holder N/A 11. Your statement of financial interest for the calendar year 1985 indicates your creditors as follows: CREDITOR 1st Eastern Bank, N.A. 1st National Bank of Jermyn 1st National Bank of Jermyn TYPE OF NOTE INTEREST RATE Mortgage Prime + 1 Mortgage 10% Mortgage 10% 12. Your statement of financial interest for the calendar year 1987 indicate your sources of income as follows: NAME SOURCE Northeast Delivery Incorporated 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Wages First National Bank of Jermyn 645 North Washington Avenue Jermyn, Pennsylvania 18433 Interest Income Old Forge Bank 216 South Main Street Old ForgeI 18518 Interest Income Northeast Delivery Incorporated 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Interest Income First National Bank of Jermyn 645 North Washington Avenue Jermyn, Pennsylvania 18433 Dividend Income Mr. William S. Gilchrist Page 8 Penn Security Corner of North Washington and Spruce Streets Scranton, Pennsylvania 18503 Dividend Income Dean Witter Reynolds 5 World Trade Center New York, New York 10048 Penn Enterprises Inc. Dean Witter Reynolds 5 World Trade Center New York, New York 10048 Meritor Savings 850 Third Avenue Partnership 8700 West Bryn Mawr Chicago, Illinois 60631 Lanai Properties 10210 Collins Avenue Apartment 201 Ball Harbor, Florida 33154 Northeast Delivery Incorporated 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Long Fellow Associates Inc. 600 Linden Street Scranton, Pennsylvania 18503 Terminal 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Cool Springs Complex 107 North Keyser Avenue Old Forge, Pennsylvania 18518 Barbara Apartments Main and Oaks Streets Old Forge, Pennsylvania 18518 Lanai Apartments 10210 Collins Avenue Apartment 201 Bal Harbor, Florida 33154 Dividend Income Capital Gains Capital Gains Partnership Income S Corporation Income S Corporation Income Rental Income Rental Income Rental Income Rental Income Mr. William S. Gilchrist Page 9 Lot #9 Oakview Development Lake Wallenpaupack, PA 18751 Residential Rental 238 Hoover Street Old Forge, Pennsylvania 18518 Terminal 5 South Keyser Avenue Old Forge, Pennsylvania 18518 NAME TITLE 105 N. Keyser Avenue Old Forge, PA 18518 N. E. Dispatch Inc. 105 N. Keyser Avenue Old Forge, PA 18518 Alfa N. E. Motors 425 Poplar Street Scranton, PA 18508 President President Vice President Rental Income Rental Income Rental Income 13. Your statement of financial interest for the calendar year 1987 indicating office, directorship, employment in any business, entity at financial interest is as follows: PERCENT OWNERSHIP Northeast Delivery Inc. 105 N. Keyser Avenue 100% Old Forge, PA 18518 President Gilchrist Trucking Corp. 105 N. Keyser Avenue 70% Old Forge, PA 18518 President Montage Construction Company Inc. 105 N. Keyser Avenue Old Forge, PA 18518 President 100% Long Fellow Associates Incorporated 600 Linden Street P. 0. Box 1108 Scranton, PA 18503 President 33.3% 100% 100% 50% Mr. William S. Gilchrist Page 10 Pioneer American Bank 41 N. Main Street Carbondale, PA 18407 1st National Bank of Jermyn 645 N. Washington Ave. Jermyn, PA 18433 Penn Security Bank Corner of N. Washington and Spruce Street Scranton, PA 18503 Share Holder Share Holder Share Holder N/A N/A N/A 14. Your Statement of Financial Interest for the 1987 calendar year indicates your creditors as follows: CREDITOR TYPE OF NOTE INTEREST RATE 1st Eastern Bank, N.A. Equipment Prime + 1 1st National Bank of Jermyn Mortgage 10% 1st Eastern Bank N.A. Mortgage Prime + 1 1st National Bank of Jermyn Mortgage 10% 15. Your statement of financial interest for the calendar year 1988 indicates your sources of income as follows: NAME SOURCE Northeast Delivery Inc. 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Wages 1st National Bank of Jermyn 645 North Washington Avenue Jermyn, Pennsylvania 18433 Interest Income Old Forge Bank 216 South Main Street Old Forge, Pennsylvania 18518 Interest Income Mr. William S. Gilchrist Page 11 Northeast Delivery Inc. 105 North Keyser Avenue Old Forge, Pennsylvania 18518 1st National Bank of Jermyn 645 North Washington Avenue Jermyn, Pennsylvania 18433 Penn Security Corner of North Washington and Spruce Streets Scranton, Pennsylvania 18503 Dean Witter Reynolds 5 World Trade Center New York, New York 10048 Penn Enterprises Incorporated Dean Witter Reynolds 5 World Trade Center New York, New York 10048 Pioneer American Holdings 41 N. Main Street Carbondale, PA 18407 850 Third Avenue Partnership 8700 West Bryn Mawr Chicago, Illinois 60631 Lanai Properties 10210 Collins Avenue Apartment 201 Bal Harbor, Florida 33154 Lanai Condo - Unit 308 10210 Collins Avenue Bal Harbor, FL 33154 Northeast Delivery Inc. 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Long Fellow Associates Inc. 600 Linden Street Scranton, Pennsylvania 18503 Interest Income Dividend Income Dividend Income Dividend Income Capital Gains Income Dividend Income Partnership Income Partnership Income Capital Gains Income S Corporation Income S Corporation Income Mr. William S. Gilchrist Page 12 Terminal 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Cool Springs Complex 107 North Keyser Avenue Old Forge, Pennsylvania 18518 C.G. Realty 155 Third Street Old Forge, PA 18518 Cable T.V. Fund 96 -97 East Monroe Avenue Englewood, Colorado 80112 Northeast Delivery Inc. 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Longfellow Associates Inc. 600 Linden Street Scranton, Pennsylvania 18503 Terminal 105 North Keyser Avenue Old Forge, Pennsylvania 18518 Cool Springs Complex 107 North Keyser Avenue Old Forge, Pennsylvania 18518 Barbara Apartments Main and Oak Streets Old Forge, Pennsylvania 18518 Lanai Apartments 10210 Collins Avenue Apartment 201 Bal Harbor, Florida 33154 Rental Income Lot #9 Oakview Development Lake Wallenpaupak, PA Residential Rental 238 Hoover Street Old Forge, Pennsylvania 18518 Rental Income Rental Income Partnership Income Partnership Income S Corporation Income S Corporation Income Rental Income Rental Income Rental Income Rental Income Rental Income Mr. William S. Gilchrist Page 13 Terminal 480 Wilson Avenue Rental Income Newark, New Jersey 07105 Terminal 5 South Keyser Avenue Rental Income Old Forge, Pennsylvania 18518 16. Your statement of financial interest for the calendar year 1988 indicating office, directorship, employment in any business entity and financial interest is as follows: NAME Northeast Delivery Incorporated 105 N. Keyser Ave. President Old Forge, PA 18518 Gilchrist Trucking Incorporated 105 N. Keyser Ave. president Old Forge, PA 18518 Penn Security Bank Corner of N. Washington and Spruce Streets Share Holder Scranton, PA 18503 Montage Construction Co., Inc. 105 North Keyser Avenue president Old Forge, PA 18518 Longfellow Associates Incorporated 600 Linden Street P. 0. Box 1108 Sc ranton, PA 18503 President A & B Delivery Inc. 105 North Keyser Avenue Old Forge, PA 18518 PERCENT TITLE OWNERSHIP 100% 70% N/A 100% 33.3% President 100% Northeast Dispatch, Inc 105 North Keyser Avenue President 100% Old Forge, PA 18518 Mr. William S. Gilchrist Page 14 WSG, LTD 238 Hoover Street Old Forge, PA 18518 President C.G. Realty 155 Third Street Old Forge, PA 18518 Partner Alfa Northeast Motors 425 Poplar Street Scranton, PA 18508 Vice President Pioneer American Bank 41 North Main Street Carbondale, PA 18407 Shareholder First National Bank of Jermyn 645 N. Washington Ave. Jermyn, PA 18433 Shareholder N/A Penn Security Bank Corner of N. Washington and Spruce Streets Scranton, PA 18503 Shareholder N/A 17. Your statement of financial interest for the calendar year 1988 indicates your creditors as follows: CREDITOR 1st Eastern Bank N.A. 1st Eastern Bank N.A. 1st Eastern Bank N.A. 1st National Bank of Jermyn 1st Eastern Bank N.A. 1st National Bank of Jermyn INTEREST TYPE OF NOTE RATE Equipment Prime + 1 Mortgage Prime + 1 Mortgage Prime + 1 Mortgage 10% Mortgage Prime + 1 Mortgage 10% 100% 50% 50% NIA Mr. William S. Gilchrist Page 15 III. DISCUSSION: As a member of the Lackawanna County, Multi - Purpose Stadium Authority, hereinafter Authority, William S. Gilchrist, hereinafter Gilchrist is a public official as that term is defined under the Public Official and Employee Ethics Law. 65 P.S. Section 402; 51 Pa. Code Section 1.1. As such, Gilchrist's conduct is subject to the provisions of the Ethics Law and the restrictions therein are applicable to him. 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. Under Section 4(a), of the Ethics Law quoted above, this provision of law requires that each public employee and public official (Kremer vs. SEC, 56 Pa. Commonwealth 160, 425 A.2d, 968 (1981), affirmed 503 Pa. 358, 469 A.2d 593 (1983)), must file a Statement of Financial Interests for the preceding calendar year of each year that he holds a public position as well as for the year after he leaves such a position. Sections 5b(5), (8) and (9) of the Ethics Law require disclosure of the name and address of any person who is a direct or indirect source of income of $500 or more in aggregate; of any office, directorship or employment in any business entity and any financial interest in any legal entity engaged in business for profit. In the instant matter, Gilchrist was required but failed to file the Statement of Financial Interests for the 1985 through 1988 calendar years. The only statement filed by Gilchrist at the administrative offices of Lackawanna County was dated July 7, 1990 and did not specify a calender year. That statement listed "N /A" in the category of sources of income and "Yes" for the category of financial interest in any legal entity in business for profit. After Gilchrist was directed to file in January 1990, he filed statements for the calendar years 1985, 1987 and 1988 copies of which Mr. William S. Gilchrist Page 16 were received by the Commission on February 20, 1990. The 1986 calendar year statement was not received by the Commission until July 2, 1990 which delay was attributed to an omission in the completion of the statement as to a real estate matter between Gilchrist and the Stadium Attorney which was "noticed" by Gilchrist's attorney. In reviewing the totality of circumstances in the case, we find a violation of Section 4(a) and 5(b) of the Ethics Law. The violation of Section 4(a) of the Ethics Law results from the failure to timely file the statements. The violation of Section 5(b) relates to the failure to list his sources of income and his position or financial interest in business entities as to the statement dated July 7, 1990. We are concerned about the cavalier manner in which his one and only statement was filed. Gilchrist argues that he completed the statement without the benefit of counsel and he misunderstood the extent to which disclosure was required. Although we might accept that argument as to the sources of income, absent any other circumstances, it is difficult to comprehend how the category of financial interest in business entities could be completed in good faith by merely inserting the word "yes ". A review of the form reflects that line 15 specifies "Name and Address of Business" and secondly "Interest Held ". The foregoing are not only in the instructions but are actually set forth within line 15 in the category of financial interest in any legal entity in business for profit. It is rudimentary that when the statement directs a listing of the name, address and interest, that financial information is obviously required to be included. Based upon the above, we can not accept the argument of Gilchrist that he did not understand the extent to which the disclosure was required. This matter will be referred to the appropriate law enforcement authority for review and appropriate action. IV. CONCLUSIONS OF LAW 1. William S. Gilchrist, as a member of the Lackawanna County Multi - Purpose Stadium Authority, is a public official subject to the provisions of the Ethics Law. 2. Gilchrist violated Section 4(a) of the Ethics Law by failing to timely file Statements of Financial Interests for the calendar years 1985 through 1988: 3. Gilchrist violated Section 5(b) of the Ethics Law by failing to list sources of income and financial interests and positions in business entities as to the statement dated July 7, 1990. In re: William S. Gilchrist : File Docket: 89 -011 -C : Date Decided: August 16, 1990 : Date Mailed: Aug 24.199D ORDER NO. 761 1. Gilchrist, as a member of the Lackawanna County Multi - Purpose Stadium Authority, violated Section 4(a) of the Ethics Law by failing timely r file 1985 Statements l9g . Financial calendar Interests for the years 2. Gilchrist violated Section 5(b) of the Ethics Law by failing to list sources of income and financial interests and positions in business entities as to the statement dated July 7, 1990. 3. This matter will be referred to the appropriate law enforcement authority for review and appropriate action. BY THE COMMISSION, 'HELENA G. HUGHES, CHAIR Commissioner James M. Howley did not participate in the consideration of this matter.