HomeMy WebLinkAbout657 KlarRe: 85 -082 -C
Dear Ms. Klar:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
ORDER OF THE COMMISSION
Order No. 657
Ms. Antonie Klar
c/o Michael A. Schalk
Frumkin, Shralow & Cerullo
Second Street and Laurel Boulevard
Post Office Box 500
Pottsville, Pennsylvania 17901
Date Decided: in, 1 988
Date Mailed: June 24, 1_9$8
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 member of the State Board of
Cosmetology, violated Section 3(a) of the Ethics Act which
prohibits a public employee's or public official's use of office
or confidential information gained through that office to obtain
financial gain; Sections 5.7(a) of State Ethics Commission
regulations which require that the name and address of the
person, including employers, who is the direct or indirect source
of income totaling in the aggregate of $500 or more for the
person required to file, his spouse, minor dependent children
shall be listed unless otherwise limited as set forth in this
section; and, Section 5.14 of State Ethics Commission regulations
which require that a public official, public employe or
candidate shall disclose the name and address of the business
entity and the position held where the person required to
disclose, his spouse, or minor dependent child is an officer,
director, fiduciary, or partner - limited or general, in that
while Chairperson of the State Board of Cosmetology you
participated in the inspection of a new Empire'Beauty School in
Reading, Pennsylvania while also being employed by said school;
and you failed to list income and directorship in Empire Beauty
Schools and Continental Hair Stylers Incorporated on an annual
Statements of Financial Interests.
Antonie Klar
Page 2
A. Findings:
1. You served on the State Board of Cosmetology from at 14i!ast
1980 until December 30, 1984. As an appointed public official
you are subject to the provisions of the State Ethics Act.
2. The State Board of Cosmetology created by Act 86 of 1933
was empowered to examine, license and grant permits to those who
desire to engage in the profession of cosmetology. This includes
the licensing and regulating of cosmetology shops, schools,
students, apprentices, teachers, managers, manicurists and
cosmetologists.
3. You were employed as a Regional Director for Renee: Beauty
Salons from December 3, 1973 to August 31, 1986.
a. Your duties included responsibility for twenty -two
salons in the Harrisburg -York- Lancaster areas operating
under the names of Renee, Continental and Hairforce.
b. Your duties also included public relations for the
salons recruiting hair stylists
The Rules and Regulations of the State Board of Cosmetology
provide the following procedures regarding the inspection of a
new beauty school:
a. §7.112. Preliminary inspection.
Upon initial application for licensure,
each proposed school will be inspected by a
representative of the Board for the purpose
of determining the suitability of proposed
room's physical layout. All buildings used
as beauty schools shall be approved by the
Department of Labor and Industry.
b. §7.113. Final inspection.
After completion of the physical
installation, a representative of the Board
will inspect the proposed school and submit a
written report with the Board. Final
approval must be given by the Board before
the school will he permitted to begin
operation. This approval will also include
the following items:
Antonie Klar
Page 3
(1)
all proposed forms and
contracts intended for
use at the school such as
attendance records, sign
in sheets, student
contracts, releases and
all other forms for
advertising and
brochures.
(2) All proposed items of
equipment.
(3) Satisfactory evidence of
provisions for duly
licensed teachers.
5. Information provided by personnel of the Cosmetology Board
and investigators of the Bureau of Professional and Occupational
Affairs, disclosed the following regarding the application and
inspection of a new beauty school:
a. A cosmetology school license application is filed with
the State Board of Cosmetology
(1) The applicant lists name, address and telephone
number of the school, owner name, address and telephone
number, school supervisor, teachers and date school
would be ready for final inspection.
b. The cosmetology board will then request that the Law
Enforcement Bureau conduct an inspection of the school.
The request includes the following information:
(1) location of school
(2) date of inspection
(3) Telephone number of school contact person
(4) School supervisor
(5) Board member who would accompany the inspector.
c. An inspection is conducted and any violations and
deficiencies are identified.
d. A thirty -day letter bearing the signature of the
Chairman of the Board of Cosmetology is sent to school
identifying any violations or deficiencies.
Antonie Klar
Page 4
e. The investigator is then directed to conduct a follow -
up inspection.
f. If the violations /deficiencies are corrected a license
is granted by the board.
6. Frank Schoeneman, Vice - President of Schoeneman Corporation,
provided the following information regarding the variov'
holdings of the corporation:
a. Renee reauty Salons - includes Renee, ConLinent.Pl,
Hairfo:'ce and Outlooks for Hair beauty salons.
k.. Empire Beauty Schools - includes (18) beauty schools,
Allied Health School and Franklin Academy.
c. Schoeneman Beauty Supply - a wholesale outlet fo
°eauty supplies and includes Salon Concepts and
gpldwell of Pennsylvania.
7. Records obtained from tie Bureau of Professional rind
Occupational Affairs, Law Enforcement Division disclosed tie
following information regarding an inspection of an Empire
Beauty School located at 2302 North Fifth Street, Reading, PA:
a. June 10, 1983: Memo from the Cosmetology Board to
Law Enforcement requesting beauty school inspection on
June 16, 1983. Phone number of school contact person -
Antonie Klar's office 622 - 3092. School supervisor-
Brenda King. Board member accompanying inspects : -
Florence Baals.
b. June 10, 1983: Memorandum from William Zinn, Chief of
Law Enforcement to the Philadelphia Office directing a:,
inspection of the Empire Beauty School, Reading, PA.
c. June 16, 1983: School Inspection Report for Empire
Beauty School, license No. CS000275. Discrepancieo
noted: Lack of footrests on facial chairs, signs not
in place, no renewal for one teacher license.
Report signed by School Superviuor Brenda King,
Investigator Patrick McElroy and Cosmetology Board
Member Florence Baals.
d. July 7, 1983: Memo from Patrick McElroy to 7illiam
Pinn re: Empire Beauty School Inspection. McElroy's
memo noted that during the inspection he encountered
Antonie Klar
Page 5
hostility and adversity from board member Florence
Baals. He also noted a discrepancy on the number of
facial chairs and Baals statement that "She would feel
better if other chairs were considered facial chairs ".
He stated that there was a discussion between himself,
Baals and Mr. Schoeneman and that Baals said he had a
bad attitude. He further related that he felt berated
and belittled.
e. July 15, 1983: Unsigned memorandum from Law Enforcement
to the Philadelphia Office requesting an investigation
of the Empire School, #3384 no later than August 15,
1983.
f. September 16, 1983: Memo from Patrick McElroy
to Paul Lewis, Eastern Regional Director noting that
all violations cited in the letter of July 13, 1983
have been corrected.
8. Patrick McElroy, investigator for Bureau of Professional and
Occupational Affairs advised as follows:
a. June 10, 1983: He was assigned to conduct a
new school inspection of the Empire Beauty School,
Reading, PA.
b. The memo he received from the Cosmetology Board listed
Antonie Klar's office telephone number as a contact.
c. The inspection occurred on June 16, 1983. He was met
at the school by Board member Florence Baals, Antonie
Klar and Frank Schoeneman, the school owner.
d. During the inspection he encountered hostility from
Baals and Schoeneman regarding the number of facial
chairs. Both attempted to influence his decision
regarding their number of facial chairs.
e. Klar was somewhat of a moderating influence on Baals
and Schoeneman.
f. He thought it unusual that two board members would be
present for an inspection. This was not done in the
past.
g�
He stated that part of the standard procedures for
inspections for new schools require that a (30) day
Antonie Klar
Page 6
letter be sent to the school identifying all
violations. The school has (30) days to correct these
violations.
h. A (30) day letter dated July 13, 1983 was sent to
Empire beaming the signature of Board Chairman Toni
Klar. That letter did not address the facial chair
violation.
i. Following this incident, the policy of a board member
accompanying an inspector was changed. Inspectors now
conduct inspections alone.
9. Request was made of the State Board of Cosmetology to
provide copies of the application for the Empire School and the
thirty day letter. Board personnel advised that following a
search of records, those documents could not be located.
10. Florence Baals, former member of the State Board of
Cosmetology advised as follows:
a. She was a member of the Cosmetology Board in 1983 and
recalled the Empire School inspection because the
inspector was arrogant and picky.
b. At that time members of the board would accompany an
inspector when checking a school. The member was
chosen by who lived closest to the school.
c. On the day of the inspection, she met Antonie Klar at
the turnpike exit. Klar was familiar with Reading and
showed her how to get to the school.
d. At the school, Klar went inside with her but went
someplace, and she did not accompany the inspector
during the inspection. Frank Schoeneman, school owner,
was the only other one who accompanied her.
e. There was a discussion between the inspector,
Schoeneman and she, regarding facial chairs. She did
not recall Klar being involved in the discussion.
f. After the inspection Klar lead her back to the turnpike
and that they might have stopped for lunch,
In her opinion, inspections were the mutual
responsibility of the board member and inspector. She
g.
Antonie Klar
Page 7
wasn't aware who made the final determination, but both
had to sign the temporary license. A temporary license
was signed for the Empire School.
11. Frank Schoeneman, Vice - President of Schoeneman Corporation
advised as follows:
a. Antonie Klar was hired in 1973 by his father and was
working when he and his brother took over the company
in 1980.
b. Klar served as Regional Manager for the Renee Salons
in the Harrisburg, York and Lancaster areas. These
included (22) salons operating under the names of
Continental, Renee and Hairforce.
c. Klar had no corporate responsibilities in her capacity
as regional manager. Her duties were to supervise the
operations of the salons in her market area.
d. Klar had no duties regarding Empire Beauty Salons. As
regional manager for Renee she would recruit stylists
from the Empire schools.
e. Klar did not serve as a Vice- President of any
Schoeneman entity.
f. He recalled the inspection of the Empire School in June
of 1983. He was responsible for filing the application
with the Cosmetology Board.
g. He had no idea why Klar's name and telephone number
were listed as contact points for the inspection. He
did not put that information on the application. He
believes that it was probably a clerical error.
(1) Telephone call to 622 -3092 on 4 -26 -85 disclosed
that you were an employee. Other calls made in
June, 1985 disclosed that you could be reached at
that number.
h. Klar did check in at the Empire School and would
receive messages at that number.
i. On the day of the inspection, he met Florence Baals at
the school. Toni Klar brought Baals to the school.
An argument ensued between the inspector, Baals and
himself over the number of facial chairs. The
inspector was highly critical and did not want to
Antonie Klar
Page 8
apniove the school, but after much discussion, the
;,spector reluctantly approved the facility.
Toni Klar was not present during the inspection, but
afterwards she did pick -up Baals at the school.
k. Klar never had the authority to act as an Empire
representative on any school inspection. If she did,
it was without his approval. Her duties were solely
related to the beauty salons in her region.
i•
12. Robert Kilgore, Director of Administration for Empire Beauty
Schools provided the following sworn statement:
I have been employed by Empire Beauty Schools, Inc. for
the past 911 years. I currently hold the position of
Director of Administration and Finance.
b. I am familiar with the records of Empire including the
employee pay records and general administrative
records.
c. At no time has Ms. Antonie Klar received any
compensation whatsoever from Empire Beauty School, Inc.
At all times that I am aware, she received a
compensation from one of Empire's sister corporations,
Renee Beauty Salons, Inc.
d. To the best of my knowledge, Ms. Klar never exercised
any authority whatsoever over the operations and
business of Empire.
e. At all times it was the policy of Empire to list as
contact persons on applications for new schools either
myself, Dale Schoeneman or Frank Schoeneman. Any
listing of Ms. Klar as a contact person on such form
would have been a clerical error as it was never
Empire's intention to have Ms. Klar serve as a contact
person for the inspection of Empire's Schools. In
fact, Frank Schoeneman served as contact person,
accompanying the inspector during the inspection of
the Reading school.
f. I am aware that Ms. Klar as a Regional Director of
Renee Beauty Salons would sometimes be present at the
Empire Beauty School site in Reading, Pennsylvania.
Antonie Klar
Page 9
At no time that I am aware, Ms. Klar exercised any
control or authority over the operations of Empire.
Had she done so, I would not have tolerated it.
13. Harrisburg Patriot News article dated April 20, 1980 written
by staff writer Constance Y. Bramson disclosed as follows:
a. ...Now, in addition to being district manager
supervising 23 salons in Central Pennsylvania and
employing 200 persons she is on the advisory of Empire
Beauty Schools and the International Center for Hair
Design.
14. Minutes of meetings of the State Board of Cosmetology
disclosed the following information in regard to actions taken
regarding the holdings of the Schoeneman Corporation:
a. February 15, 1983, page 7: Chairperson Toni Klar
questions why her beauty salons had been inspected so
many times in recent months, while other shop owners
have not been inspected for a period of five years.
Deputy Commissioner Jan Rhoades states that similar
complaints have been received and that the board should
meet with William Pinn, Chief of Law Enforcement,
regarding this potential problem.
page 11: Pinn provided the following information that
no evidence of excessive number of inspections could be
determined by him. Ms. Klar stated that she intended
to check with her salon managers and the central office
to determine exactly how many inspections have
previously been conducted.
g.
Her presence at such site would be consistent with her
duties as Regional Director of Renee Beauty Salons in
that:
(1) she would have an opportunity to interview
beauty school students for perspective
employment with Renee.
(2) There is a beauty supply distribution center
on that same site that was not part of
Empire.
(3)
The school had certain facilities such as an
auditorium that could be utilized by Ms. Klar
in her duties as Regional Director of Renee.
Antoni Klar
Page 10
b. Marc:, 7, 1983, p ce 29: Chairperson Klar reads the
following information regarding routine inspections:
Klar reads a list of inspections conducted on various
Renee Beauty,Salon sites and Empire schools during 1982
and 1983. She noted that the information represented
only a small percentage of reports available. Klar
presented a letter addressed to Governor Thornburgh,
dated 4/1/81 from George W. Schaub, Vice President,
Empire Beauty Schools. That letter states that Empire
Beauty Schools resents having licenses fees wasted on
nonsense and harassment. The requests looking into the
matter of such frequent inspections.
Page 37: Inspections. Klar stated that she would like
to see all inspection reports for one month so that the
board may review them and take necessary action. Ms.
Weber explain procedures for handling inspection
reports to the board at that time. Following further
discussion, the board requested that Weber obtain a
moist of pending cases for the month of April and
indicate the status of each pending violation.
c. April 11, 1983, page 18: Discussion with Pinn
relevant to matter of inspections conducted
of Continental and Renee Salons. Klar requested an
explanation as to why those shops had been inspected so
frequently. Pinn provides explanation that inspectors
are only conducting routine inspections. Klar stated
she accepted Pinn's explanation and indicated that sh
would contact him should the situation arise ac?- in.
Pinn sated that inspectors were not ordered, in e.nyway
from anybody within the Bureau; the inspectors
conducted inspections on their own.
d. May 1983, page 23: Upon questioning by Chairperson
Klar, Commissioner Miller stated that schoo ?s are
exempt from the memo in regard to inspections by board
members. He added that he was referring only to
inspections of businesses excluding the schools.
Miller agreed that it is a requirement of law that any
new cosmetology school be visited and inspected by a
member of the board.
e. July 11, 1983, page 8: Review of inspection report.
Empire, Reading, PA. Board reviewed an inspection
report from the Empire School in Reading,
Pennsylvania. Discussion ensued regarding violations
noted in the inspection report. Klar indicated that
Empire would not receive a permanent licen3e if `.he
Antonie Klar
Page 11
j
violations were not corrected. Additional violations
were discussed such as no sign in the window, no
renewal for instructor, and lack of facial chairs.
Klar noted the sign for the school is now placed. At
that point, Klar retired from the meeting and Baals
assumed the chair. Klar returned to the meeting and
resumed the chair and indicated that she had just
spoken to the school and that the teacher in question
is not working any longer. Matter continued for
approval until the full board is in attendance.
Page 57: Inspection of new school. Eastman question
advisability of board members accompanying inspectors
on new school inspections. Klar stated as a matter of
law, according § 7.112. Eastman request clarification.
f. July 12, 1983, page : Inspections. Board informs
Attorney Grossi of previous discussions of necessity
for board members to accompany inspectors on new school
inspections. Eastman states that it's not necessary
for a board member to attend. Grossi advises a legal
opinion would be rendered on the matter.
g. August 15, 1983, page 28: Board Counsel Grossi
advises that he does not see any legal problems with
having inspectors being a representative of the board
for these inspections.
h. October 12, 1983, page 14: 82 -CO -824 Renee Beauty
Salons, Inc. Kahoe recommended to cite Renee Beauty
Salons for operating with an unlicensed person working
in shop. Motion, Eastman second, Sciatica and passed
unanimously to proceed on recommendation of counsel.
i. February 6, 1984, page 15: Discussion regarding
inspections. Eastman leads discussion regarding
whether it is necessary for board members to accompany
inspectors on school inspections. It was decided that
it was not necessary for board members to attend and
that only inspectors would be assigned.
July 17, 1984, page 18: Enforcement. Klar steps down
from the chair position, which is then assumed by
Sciatica. Enforcement No. 82 -CO -1108 following
discussion. Motion Banner, second Butler, passed by
majority vote to close case; no violation.
Klar resumes chair at this time.
Antonie Klar
Page 12
B. Discussion: As a memker of. the State Board of Cosmetology,
you were a "public official" as that term is defined under the
Ethics Act. 65 P.S. §402; 51 Pa. Code §1.1. As such, your
conduct is subject to the provision of the Ethics Act.
Section 3(a) of the Ethics Act provides:
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).
Section 3(a) specifically provides in part that a public
official may not use public office to obtain a financial gain for
a business with which he is associated other than compensation
provided for by law.
The term "Business with which he is associated" is defined
under the Ethics Act as follows:
"Business with which he is associated." Any
business in which the person or a member of
the person's immediate family is a director
officer, owner, employee or holder of stock.
65 P.S. §402.
Regarding the Statement of Financial Interests which a
public official must file, Section 5.7(a) of the Regulations of
the State Ethics Commission provide:
§5.7. Income disclosure.
(a) The name and address of the person,
including employers, who is the direct Dr
indirect source of income totaling in the
aggregate of $500 or more for the person
required to file, his spouse, minor dependent
children shall be J.isted unless otherwise
limited as set forth in this section. 51
Pa. Code §5.7(a).
Antonie Klar
Page 13
It is further provided in Regulation S5.14 of the State
Ethics Commission as follows:
55.14. Directorship.
A public official, public employe or
candidate shall disclose the name and address
of the business entity and the position held
where the person required to disclose, his
spouse, or minor dependent child is an
officer, director, fiduciary, or partner-- -
limited or general. 51 Pa. Code S5.14.
The above Regulations require that a public official must
list sources of income totaling in the aggregate of $500 or more
and must also list the name and address of a business entity in
which he is an officer, director, fiduciary or partner.
In this case, the allegation charges that your activity in
participating in an inspection of the new Empire Beauty School
while you were a member of the State Board of Cosmetology
transgress the provisions of Section 3(a) of the Ethics Act. In
order to determine whether Section 3(a) of the Ethics Act was
implicated, it is necessary to determine what interest, if any,
you had in the facility that was being inspected and then
secondly whether your participation in that inspection was of a
character which related to a possible private interest that you
might have as opposed to the public interest of inspecting the
facility as a member of the Cosmetology Board. As to your
financial interest, it is noted that you were employed as the
Regional Director of Renee Beauty Salons from 1973 to 1986. It
is further noted that Renee Beauty Salons is owned by the
Schoeneman Corporation which also has holdings in Empire Beauty
Schools and Schoeneman Beauty Supplies. However, it does not
appear that you had any financial interest in Empire Beauty
Schools. This is confirmed by Mr. Robert Kilgore who is the
Director of Administration of Empire Beauty Schools who advised
that you did not receive any compensation from Empire Beauty
Schools, Inc., and that you never exercised any authority over
the operations or business of Empire. In light of the above, it
does not appear that Empire Beauty Schools, Inc., was a business
with which you were associated as that term is defined under the
Ethics Act. Accordingly, since you did not receive any income
and had no interest in Empire, it follows that there is no
violation of Regulations 5.7(a) or 5.14 of •the Ethics Act.
Further, regarding the June 10, 1983 new school inspection of the
Antonie Klar
Page 14
Empire Beauty School in Reading, Pennsylvania, the evidence
elicited does not establish that you violated Section 3(a) of the
Ethics Act since Empire was not a business with which you were
associated as that term is defined in the Ethics Act.
This Commission must however note its concern regarding
certain circumstances in this case. When the Empire School was
inspected and Investigator Patrick McElroy noted a potential
problem with the number of facial chairs, the 30 -day letter which
was sent to Empire School under your signature did not include
the facial chair violation. When the foregoing is coupled with
the fact that Empire's application and the 30 -day letter could
not be located by the Cosmetology Board, a question arises as to
whether this was merely a mistake of omission or a misfiling.
Further, during the inspection of Empire School, of which
your office telephone was listed as a contact point, the
statements of Mr. McElroy appear to conflict with that of Board
member Florence Baals regarding whether you were merely at the
School during the inspection or whether you actually accompanied
McElroy and the School owner Frank Schoeneman on the inspection.
Turning to another matter, it is noted in the minutes of the
Cosmetology Board that you raised a question as to the frequency
of inspections of your beauty salons. This Commission must
wonder whether you were as a public official advocating your own
private interest in that instance. The Preamble of the Ethics
Act states that public office is a public trust and that public
officials /employees should act in a fashion whereby the faith and
confidence of the people in their government will be
,;t.rengthened. Your actions in this case have fallen short of
that level.
C. Conclusion and Order:
1. As a member of the Cosmetology Board you were a public
official subject to the provisions of the Ethics Act.
2. You did not violate Section 3(a) of the Ethics Act
regarding an inspection of an Empire Beauty School in
Reading, Pennsylvania, since Empire Beauty Schools,
Inc., is not a business with which you are associated
under the Ethics Act.
3. You did not violate either Sections E.7(c) 'v 514 of
the Ethics Act regarding listing Empire Beauty Schoo
as a source of income or as a business in which you were
Antonie Klar
Page 15
an officer, director, fiduciary or partner since you did
not have any interest and did not receive any income
from Empire.
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).
By the Commission,
■
Joseph W. Marshall, III
Chairman