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HomeMy WebLinkAbout422 SrogoncikMr. John R. Srogoncik Townhouse 361 Briarcrest Gardens Hershey, PA 17033 Re: 85 -015 -C "P STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION September 17, 1985 Order No. 422 Dear Mr. Srogoncik: 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, a former public employee of the Department of Revenue, violated Section 5(b)(5) of the Ethics Act -which states that the Statement of Financial Interests shall include the name and address of any person who is the direct or indirect source of income totalling in the aggregate of $500 or more because you failed to list all your sources of income on your Statement of Financial Interests. A. Findings: 1. You were employed by the Pennsylvania Department of Revenue from September, 1970 to November, 1984, when you resigned. You served as a Corporation Tax Officer II, from 1980 to 1984 and, as such, were subject to the filing requirements of the State Ethics Act. 2. You filed Statements of Financial Interests under the terms of the Ethics Act as follows: a. On April 25, 1980 for calendar year 1979. h. On April 8, 1981 for calendar year 1980. c. On April 15, 1982 for calendar year 1981. Mr. John R. Srogoncik - Page 2 September 17, 1985 d. On May 11, 1983 for calendar year 1982. e. On May 7, 1984 for calendar year 1983. 3. You also had a private accounting practice preparing state and federal income tax returns for individuals and businesses. 4. Since 1978, you had income ranging from $1,000 to $2,000 each year from this private practice. 5. You did not report this private practice as a source of income on your Statement of Financial Interests for any of the years in which you had filed statements, including calendar years 1982 and 1983. You state that you listed these earnings as part of your spouse's business to protect yourself although you knew it was improper. a. The sources of income on your Statement of Financial Interests for calendar years 1980, 1981 and 1982 include sources of your wife's income but not an accounting practice. 7. You admit knowingly failing to report this source of income on your Statement of Financial Interests. 8. All of your Statements of Financial Interests were certified by you as containing information that was true and correct. B. Discussion: The Ethics Act provides that: 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 precedi ng 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). Mr. John R. Srogoncik - Page 3 The Ethics Act defines public employee as follows: Section 2. Definitions. "Public employee." Any individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (1) contracting or procurement; (2) administering or monitoring grants or s ubs idi es; (3) planning or zoning; (4) inspecting, licensing, regulating or auditing any person; or (5) any other activity where the official action has an economic impact of greater than a de mi nimus nature on the interests of any person. "Public employee" shall not include individuals who are employed by the State or any political subdivision thereof in teaching as distinguished from administrative duties. 65 P.S. 402. As a Corporation Tax Officer II in the Pennsylvania Department of Revenue, you were a public employee as that term is defined in the State Ethics Act. Nugent, No. 320; Little, No. 317; Psaki, No. 315. As such, you were required to file a Statement of Financial Interests as set forth above. With regard to the specific nature of the interests to be reported, the Ethics Act provides that: Section 5. Statement of financial interests. (a) The statement of financial interests filed pursuant to this act shall be on a form prescribed by the commission and shall be signed under penalty of perjury by the person required to file the statement. 65 P.S. 405(a). (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 immedi ate family: (5) The name and address of any person who is the direct or indirect source of income totalling in the aggregate of $500 or more. However, this September 17, 1985 Mr. John R. Srogoncik Page 4 provision shall not be construed to require the divulgence of confidential information protected by statute or existing professional codes of ethics. You have admitted that you knowingly and intentionally failed to report as a direct or indirect source of i ncone your private accounting services. Although you claim you reported your accounting practice as a source of income under your wife's employment, your Statement of Financial Interests do not support thin claim. During the years 1972 through 1983 you earned income in excess of $500 from that business and were, therefore, required to include such business as a source of income on your Statement of Financial Interests. While you were not required to report the amount of money earned, you were required to report the source of income in excess of $500. The Ethics Commission has the authority to: Section 1. Duties of the commi3sion. (11) Make recommendations to law enforcement officials either for crimi nal prosecution or di smi ssal of charges arising out of violation of this act. 65 P.S. 407(11). September 17, 1985 Your intentional failure to report your private activity as a source of income violated the provisions of the Ethics Act and may have violated other provisions of law. As such, we believe that this matter must be referred to the appropriate law enforcement authority for review and potential action. C. Conclusion: As a Corporation Tax Officer in the Department of Revenue, you violated the State Ethics Act when you failed to report on your Statement of Financial Interests as a source of income private accounting work from which you earned income in excess of $500 for the years 1979 through 1983. This omission was clearly intentional and, as such, the matter will be referred to the appropriate law enforcement authority for review and potential 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. Mr. John R. Srogoncik - Page 5 September 17, 1985 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). JJC /sfb By the Co mission Her 't B. Conner Chairman