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HomeMy WebLinkAbout345 CookMr. Edward H. Cook Schuylkill County Commissioner 26 S. White Street Shenandoah, PA 17976 Re: No. 83 -17 -C STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION October 15, 1984 Order No. 345 Dear Mr. Cook: The State Ethics Commission has received a complaint regarding you and a possible violation of Act 170 of 1978. The Commission has now completed its investigation. The individual allegations, conclusions, and findings on which those conclusions are based are as follows: I. Allegation: That you participated in actions by the County Commissioners to have County funds placed into accounts and to have a loan of $100,000 for the County from the Merchants National Bank of Shenandoah where you are a Vice - President and that this is a violation of Section 3(a) in that it is use of your office or confidential informtion for personal, financial gain. A. Findings: 1. You served as Schuylkill County Commissioner from 1976 at least through 1983 and as such are subject to the requirements of the Ethics Act. 2. You served as Vice - President of the Merchants National Bank of Shenandoah, Pennsylvania from June 13, 1980 to June 1, 1983. 3. On June 12, 1980 the County Commissioners gave Solicitor Frederick H. Hobbs authority to borrow funds necessary to meet cash -flow commitments for a project at the Zerbe Airport. Edward H. Cook Page 2 a. The County owed the contractor approximately $168,000 and was being pressed for payment. b. Upon payment to the contractor, the County would submit a request for reimbursement to the federal government and repay the loans with the reimbursement. 4. Mr. Hobbs stated that he solicited eight to ten banks for loans to pay the contractor. a. He borrowed $100,000 from the Merchants National Bank of Shenandoah and $200,000 from a bank in Minersville. These banks were selected because they offered the best interest rates. b. The Solicitor did not consult the Commissioners ,in his selection of these banks. 5. You state that you were not involved in this transaction as a Vice - President of the Merchants National Bank. 6. The County had numerous investments in corporate bonds, treasury notes and bills, equities, and certificates of deposit. a. Certificates of deposits, bank notes, money market certificates, etc. were on deposit in more than 15 banks and savings and loan associations in over ten cities and towns surrounding Pottsville. b. Of sixty -eight such deposits as of July, 1983, the Merchants National Bank of Shenandoah held nine. c. The interest rates paid by the Merchants National Bank were comparable to the rates of these other financial institutions. 8. Discussion: Section 3(a) of the Ethics Act states: Section 3. Restricted Activities. (a) No public official or public employee shall use his public office or any confidential information received through his holding public office to obtain financial gain other than compensation provided by law for himself, a member of his immediate family, or a business with which he is associated. 65 P.S. 403(a). Edward H. Cook Page 3 You were Vice - President of the Merchants National Bank at the time the loan of $100,000 was made with the County. However, at a meeting of the Commissioners on June 12, 1980, the Commissioners gave the Solicitor authority to borrow the funds necessari for payment due on the airport project. The Solicitor did not contact you in arranging for these loans and there is no evidence that you benefitted from this transaction. The deposits of the County in the Merchants National Bank received interest payments comparable to those paid by other financial institutions and there is no evidence that Merchants National Bank received favorable treatment from the County investment plan. Under these circumstGnces, particularly where the other banks were asked to provide quotations on this loan, we find that you did not violate Section 3(a) of the Ethics Act, we find no basis to question this arrangement under Section 3(c) of the Act, and, therefore, we will take no further action on this matter. C. Conclusion: You did not violate Section 3(a) of the Ethics Act when you acted to give the Solicitor authority to borrow funds from the Merchants Bank to pay the contractor who was working at the Zerbe Airport. 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). HBC /jc By the /Commis erbe't% B': Conner Chai