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HomeMy WebLinkAbout425 BeluchMr. Theodore X. Beluch Phoenixville Borough Councilman 245 Hall Street Phoenixville, PA 19460 Re: No. 84 -54 -C Dear Mr. Beluch: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION _ Novemb er 4, 1985 Order No. 425 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 councilperson in Phoenixville Borough, violated Section 5(b)(5) of the Ethics Act, 65 P.S. 405(b), which requires the reporting of sources of income totalling $500 or more by failing to report a gambling operation as a source of income for 1981 and 1982 and "X's Kitchen" as a source of income in 1982. A. Findings: 1. You have served as a councilmember of Phoenixville Borough Council at least from 1980 through March 5, 1985 and, as such, are subject to the requirements of the Ethics Act (Act 170 - 1978). 2. Your Statement of Financial Interests filed for calendar years 1981 and 1982 do not list X's Kitchen or gambling as a source of income. 3. According to a Trustee of the Friendship Fire Company, Phoenixville, PA, you obtained permission to have your daughter operate a sandwich shop in the bar area of the Fire Company Club. a. You state that you obtained permission to operate this kitchen and had a telephone installed in your name because you believed a non - member - your daughter - could not gain approval to operate the kitchen. Mr. Theodore X. Beluch .v-Page 2 b. You state that your daughter was the owner of the kitchen and you received no income or profits from its operation. c. According to the Fire Company Trustee, there was no formal agreement on the operation of the kitchen and no payments were ever made to you during 1981 -1983 from the operation from this kitchen. 4. December, 1982, you were arrested for operating an illegal numbers game in the Friendship Fire Hall. a. You pleaded nolo contendere to the charge of gambling and were sentenced to two years' probation, fined $500 and required to pay the cost of prosecution. 5. You state that your income from the gambling operation was never $500 or more in any calendar year. 6. Neither the Chester County District Attorney's office nor the Phoenixville Police Department have any information indicating that your gambling operation resulted in income in excess of $500 per year. B. Discussion: 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 of $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. November 4, 1985 There is no evidence that you earned $500 or more through your gambling operation and we find no violation of the Ethics Act. Rut, we must make you aware that all sources of income of $500 or more must be reported should you realize income at this level in the future. We also find no evidence that you realized income of $500 or more from the operation of X's Kitchen. However, we must express our concern and disapproval of your knowingly creating the false impression that you were the owner of this operation. Effective public leadership demands honest and open Mr. Theodore X. Beluch Page 3 communications with constituents. In this case, you purposely structured conditions to create a false appearance and raised questions about the accuracy and completeness of your Statements of Financial Interests. While we find no violation of the Ethics Act, we must express our disapproval of your actions because they do not provide the kind of leadership the public has every right to expect. C. Conclusion: You did not violate the State Ethics Act by failing to report your gambling operation and X's Kitchen as sources of income of $500 or more because we find no evidence that you realized income at this level. We will take no further action in this matter. 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 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). JJC /sfb By V he C omr3i s c i o n, erbepi!` B. Conner Chairman November 4, 1985