HomeMy WebLinkAbout328 MelmanMr. Milton Melman
1571 NW 20th Avenue
Pines of Delray N. Apt. 201
Delray Beach, FL 33445
RE: No. 84 -42 -C
Dear Mr. Melman:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
ORDER OF COMMISSION
November 28, 1984
Order No. 328
The State Ethics Commission has reviewed the possibility that you have
violated the State Ethics Act, Act 170 -1978. The nature of the alleged
violation is as follows:
1. Allegation: That as a public official, you failed to file a Statement of
Financial Interests by May 1, 1983, for calendar year 1982, as required by the
State Ethics Act and regulations.
A. Findings:
1. An audit of the Statement of Financial Interests for calendar year
1982 required to be filed by May 1, 1983, was conducted by the State
Ethics Commission. Your statement was not on file.
2. You served as a compensated member of the State Employees Retirement
Board during calendar year 1982.
a. The law applicable to this entity specifies that its members are
authorzied to receive compensation other than reimbursement for
expenses.
b. You resigned or left this office in April, 1983.
c. The powers and duties of this Board as set forth in the laws of
this Commonwealth include the power to:
1) establish rules and regulations for the administration of
the fund and ledger accounts created by this act and for the
transaction of its business.
2) Adopt for the retirement system one or more mortality
tables, and such other tables as shall be deemed necessary.
Mr. Milton Mel man
Page 2
November 28, 1984
3) Certify the rates of deduction from salary necessary to pay
the annuities authorized under the provisions of this act;
4) Certify biennially the amount of appropriation, which shall
be made by the Commonwealth and other agencies to the State
Employes' Retirement Fund, which amounts shall be based on
estimates furnished by the actuary, and shall be credited to
the proper accounts created by this act.
5) prepare and have published, annually, a financial statement
showing the condition of the fund and various accounts
created by this act, and setting forth such other facts,
recommendations and data as may be of use in the advancement
of knowledge concerning State employes' pensions and
annuities, and said retirement board shall submit said
financial statment to the Governor of the Commonwealth of
Pennsylvania, and shall file copies in the offices of the
Secretary of the Commonwealth, of the State Insurance
Department, and of the head of each department, for use of
the State employes and the public.
3. You were a public official as that term is used in the Ethics Act
and upon leaving office as set forth above became a former public
official.
4. You had not filed a Statement of Financial Interests for calendar
year 1982 according to our records, so the following steps were
undertaken to secure your filing.
5. A letter was addressed to you by the Executive Director of the State
Ethics Commission, Edward M. Seladones.
a. This letter was dated August 8, 1983.
b. This letter was addressed to you at 4074 Fawn Drive, Harrisburg,
PA, 17112.
c. This letter was mailed regular first class mail.
d. We received no response to this letter.
6. Another letter was addressed to you by the Executive Director of the
State Ethics Commission, Edward M. Seladones.
a. This letter was dated November 4, 1983.
b. This letter was addressed to you at 4074 Fawn Drive, Harrisburg,
PA, 17112.
Mr. Milton Melman
Page 3
November 28, 1984
c. This letter was mailed certified, return receipt requested, No.
5254754. This letter was accepted by Milton Melman on November
23, 1983.
7. You responded to our letter on November 29, 1983, stating that
because we returned your form and since you were no longer a resident
of Pennsylvania, that you felt you didn't have to file.
8. A letter was addressed to you by the Executive Director of the State
Ethics Commission, Edward M. Seladones, February 7, 1984, stating
that you are required to file statements with the State Ethics
Commission for 1982 and 1983, and enclosing blank forms for your
use.
9. We had not received your Statement of Financial Interests for 1982
as of September 6, 1984.
a. Based on the above, we issued an Order on September 6, 1984.
b. On September 18, 1984, we received your Statement of Financial
Interests for calendar year 1982.
B. Discussion:
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).
The State Ethics Commission has ruled that all "public officials" are
also "public employees" and, thus, subject to Section 4(a)'s requirements.
See Carter, 79 -066. Also, the regulations of the State Ethics Commission,
which have the force and effect of law specify that "public officials" shall
file a Statement of Financial Interests for each year they hold office. 51
Pa. Code 4.4(a). The Commonwealth Court has also agreed that "public
officials" are subject to the filing requirements of Section 4(a) of the
Ethics Act. See Kremer v. State Ethics Commission, 56 Pa. Cmwlth. 160, 424
A.2d 968 (1981).
Mr. Milton Melman November 28, 1984
Page 4
Sections 4.4(a) and 4.4(d) of the State Ethics Commission regulations
state:
(a) Incumbent officials of the Commonwealth's executive,
legislative, and judicial branches and other statewide
offices who are not candidates shall file their Statement
of Financial Interests with the Commission and a copy with
the agency in which they hold office by May 1 of each year
in which they hold office. 51 Pa. Code 4.4(a).
(d) Former public officials shall file a Statement of
Financial Interests for their last year of service by May
1 of the succeeding year. This statement shall be filed
at the same offices they filed when they were incumbent
officials. 51 Pa. Code 4.4(d).
The powers and duties of this Board indicate this body has either the
authority to expend public funds or to otherwise exercise the power of the
State or any political subdivision. In addition, you were authorized to
receive compensation for your services. You are subject to the Ethics Act
because of the Board's authority and the compensation provided by law. You
have failed to file the Statement of Financial Interests required by the law
and State Ethics Commission regulations despite being advised of this
requirement.
For purposes of the Act, accurate and complete Statements of Financial
Interests must be available to the public served by the public official or
public employee. We realize that errors caused by oversight or
misunderstanding may need to be corrected.
You received our letters informing you about your obligation to file a
Statement of Financial Interests. You held a responsible position with the
Commonwealth and must be presumed to have an understanding of forms and
administrative and legal requirements. We believe you understood your filing
obligation.
In addition, Section 9(b) states:
Section 9. Penalties.
(b) Any person who violates the provisions of Section 4 is
guilty of a misdemeanor and shall be fined not more than
$1,000 or imprisoned for not more than one year, or be
both fined and imprisoned. 65 P.S. 409(b).
Mr. Milton Melman November 28, 1984
Page 5
However, we have now reviewed this matter and your late fiing of your
Statement and we find no evidence that your failure to file was willful or
intended to conceal personal financial gain realized through your office or
confidential information gained through that office. Therefore, we will take
no further action.
C. Conclusion: You violated the Ethics Act and State Ethics Commission
regulations by not filing a Statement of Financial Interests with the State
Ethics Commission as set forth above despite official notification of your
obligations. However, we find no evidence that your failure to file was
willful, you have now filed, and we, therefore, decline to refer this to a law
enforcement agency for review or take any further action.
Our files in this case will remain confidential in accordance with Section
8(a) of the Ethics Act, 65 P.S. 408(a). However, this Order is final and will
be made available as a public document 15 days after service (defined as
mailing) unless you file documentation with the Commission which justifies
reconsideration and /or challenges pertinent factual findings. See 51 Pa. Code
2.38. During this 15 -day period, no one, including the Respondent unless he
waives his right to challenge this Order, may violate this confidentiality by
releasing, discussing or circulating this Order.
Any person who violates the confidentiality of a Commission proceeding is
guilty of a misdemeanor and shall be fined not more than $1,000 or imprisoned
for not more than one year or both, see 65 P.S. 409(e).
RED /na
B
cc: Governor's Office of Boards & Commissions
Robert Bowers, Personnel Officer
State Employees Retirement Board
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Herb-rt B. Conner
Cha rman