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HomeMy WebLinkAbout681 ForbesMr. Stephen Forbes P.O. Box 21781 Philadelphia, PA 19146 Re: 88 -018 -C Dear Mr. Forbes: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION ORDER NO. 681 DATE DECIDED: September 28, 1988 DATE MAILED: October 13, 1988 The State Ethics Commission has reviewed the allegation(s) that you have violated the Ethics Act, Act 170 of 1978. The nature of the alleged violation(s) is as follows: I. Allegation: That you, a former Boiler Inspector with the Department of Labor and Industry, violated the following provisions of the State Ethics Act (Act 170 of 1978), when you were employed at the Philadelphia Nursing Home while on Commonwealth time; and when you failed to disclose the Philadelphia Nursing Home as a source of income on Statements of Financial Interests for the 1985, 1986 and 1987 calendar years. 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. Code §403(a). 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: Mr. Stephen Forbes Page 2 (5) The name and address of any person who is the direct or indirect source of income totalling in the aggregate $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. 65 P.S. §405(b)(5). A. Findings: 1. You were an employee of the State of Pennsylvania, working as a Boiler Inspector for the Department of Labor and Industry from December 11, 1985 to August 12, 1987. a. As an employee you were required to file a Statement of Financial Interest with the Bureau of Personnel, Department of Labor and Industry. 2. Records of the Commonwealth of Pennsylvania, Department of Labor and Industry disclosed as follows regarding your hiring: a. September 19, 1985 - As a prospective employee, you signed Labor and Industry informational sheets acknowledging that you did not have supplemental employment. b. December 11, 1985 - You were notified by letter from Richard Himler, Director of Personnel, of your appointment to the position of Boiler Inspector in the Bureau of Occupational and Industrial Safety at a salary of $659.25 biweekly or $17,193 annually. Step 35B. That letter also informed you that you were covered by Act 170, the Pennsylvania Ethics Act and that you were required to file a Statement of Financial Interests. c. All documents you signed in relation to your employment listed a home address at 2226 Spruce Street, Philadelphia, Pennsylvania. 3. Department of Labor and Industry personnel disclosed that Boiler Inspectors in the Bureau of Occupational and Industrial Safety work out of their homes with little on -site supervision. Inspectors are required to submit daily and weekly time records which document hours worked and sites worked. These records are submitted to a supervisor who reviews and forwards the records to the Personnel Office. Labor & Industry•officials disclose that strict adherence to this policy is required. Mr. Stephen Forbes Page 3 a. As a Boiler Inspector, you were required to submit daily and weekly time records. 4. The Department of Labor and Industry compared your time sheets of hours worked for the Bureau of Occupational and Industrial Safety and hours worked at the Philadelphia Nursing Home. A review of those documents disclosed that you were claiming hours worked as a Boiler Inspector for BIOS while also working at the Philadelphia Nursing Home (PNH). a. Those records from February, 1986 through May 5, 1987 reflect that you were paid by the Commonwealth for 59.3 hours while you were also being paid by PNH. A comparison of hours worked disclosed: YEAR MONTH 1986 FEBRUARY 13 MARCH 6 13 20 27 APRIL 3 10 17 24 29 MAY 5 6 13 27 JUNE 2 3 10 24 30 JULY 22 28 29 AUGUST 5 19 25 26 SEPTEMBER 2 9 16 22 23 24 30 DAY BOIS SHIFT PNH SHIFT DUPLICATE TIME (Minutes) 8 -4:30 3 -11 90 8 -4:30 3 -11 30 8 -4 :15 3 -11 75 8 -4:00 3 -11 60 8 -4:00 3 -11 60 8 -3:30 3 -11 30 8 -4:30 3 -11 90 8 -4:00 3 -11 60 8 -3:30 3 -11 30 8 -4:00 3 -11 60 8 -3:30 3 -11 30 8 -3:30 3 -11 30 8 -4:30 3 -11 90 8 -3:30 3 -11 30 8 -4:00 3 -11 60 8 -3:30 3 -11 30 8 -3:30 3 -11 30 8 -3:45 3 -11 45 8 -4:00 3 -11 60 8 -3:30 3 -11 30 8 -3:30 3 -11 30 8 -3:30 3 -11 30 8 -3:30 3 -11 30 8 -3 :30 3 -11 30 8 -3:45 3 -11 45 8 -3:30 3 -11 30 8 -3:50 3 -11 50 8 -3:30 3 -11 30 8 -3:00 3 -11 50 8 -3:50 3 -11 50 8 -3:00 3 -11 0 8 -3:30 3 -11 30 8 -3:20 3 -11 20 Mr. Stephen Forbes Page 4 OCTOBER 14 8 -3:55 3 -11 55 16 8 -3:20 3 -11 20 20 8 -4:15 3 -11 75 21 8 -3:40 3 -11 40 27 8 -3 :00 3 -11 0 28 8 -3:40 3 -11 40 NOVEMBER 3 8 -4:15 3 -11 75 4 8 -3:40 3 -11 40 10 8 -3:30 3 -11 30 17 8 -3:45 3 -11 45 18 8 -3:50 3 -11 50 24 8 -3:30 3 -11 30 25 8 -4:00 3 -11 60 DECEMBER 1 8 -3:00 3 -11 0 2 8 -3:00 3 -11 0 8 8 -3:45 3 -11 45 9 8 -3:15 3 -11 15 15 8 -3:30 3 -11 30 16 8 -3 :20 3 -11 20 22 8 -3:25 3 -11 25 23 8 -3:50 3 -11 50 29 8 -3:30 3 -11 30 30 8 -3:30 3 -11 30 1987 JANUARY 5 8 -3:30 3 -11 30 6 8 -3:30 3 -11 30 12 8 -3:30 3 -11 30 13 8 -4:00 3 -11 60 20 8 -3:30 3 -11 30 27 8 -4:30 3 -11 90 FEBRUARY 2 8 -3:45 3 -11 45 3 8 -3:30 3 -11 30 9 8 -4:30 3 -11 90 10 8 -3:30 3 -11 3C 17 8 -3:50 3 -11 50 24 8 -3:30 3 -11 30 MARCH 2 8 -4:00 3 -11 60 3 8 -3:30 3 -11 30 4 8 -3:30 3 -11 30 9 8 -3:55 3 -11 55 10 8 -3:50 3 -11 50 16 8 -3:45 3 -11 45 17 8 -3:45 3 -11 45 23 8 -3:30 3 -11 30 24 8 -3:50 3 -11 50 30 8 -3:30 3 -11 30 31 8 -3:45 3 -11 45 APRIL 6 8 -3:30 3 -11 30 7 8 -3:20 3 -11 20 13 8 -3:30 3 -11 30 14 8 -3:00 3 -11 0 Mr. Stephen Forbes Page 5 MAY (1) (3) (1) 20 21 27 28 4 5 8 -3:55 8 -3:20 8 -3:35 8 -3:30 8 -3:45 8 -3:30 3 -11 3 -11 3 -11 3 -11 3 -11 3 -11 55 20 35 30 45 30 Total disputed time (minutes) 3,560 Total disputed hours 59.3 5. Department of Labor and Industry records disclosed the following: a. July 16 1987: You were notified by letter from Charles Sludden, Jr., Acting Administrator for Technical Services, of a fact finding meeting scheduling for July 28, 1987. The purpose of the meeting was to discuss as follows: Completion of a Labor and Industry informational sheet stating you had no supplemental employment. (2) Completion of a Statement of Financial Interests (SEC - 1) stating your only "DIRECT OR INDIRECT SOURCE OF INCOME" was Labor and Industry, BOIS -Blr. Div. Possible theft of Commonwealth services in that you completed BOIS time recording forms which indicate you were performing BOIS boiler inspection functions while at the same time you were working at the Philadelphia Nursing Home. b. July 28, 1987: Fact finding Arnold Mack, AFSCME District Wildeman, Labor and Industry BOIS Administrator. hearing attended by you, Representative, James Relations, Charles Sludden, Summary of comments by you as compiled by James Wildeman: (a) Mr. Forbes loves his job with the Department or wants to continue working with the Commonwealth. (b) Mr. Forbes will cease work with PNH. c. August 11, 1987 - Correspondence from Otto Eleuteri, Assistant Personnel Director to you which advised in part: This is to inform you that effective Wednesday, August 12, 1987, close of business, you are terminated from your position as a regular Boiler Inspector in the Bureau of Occupational and Industrial Safety. This action is in Mr. Stephen Forbes Page 6 7. James Industry, a . accordance with Section 807 of the Civil Service Act and Article 29, Section 1, of the Master Agreement with AFSCME. During a meeting held on July 28, 1987, for the purpose of presenting you with an opportunity to address these issues, you admitted that you knew the supplemental employment and financial disclosure forms and B.O.I.S. time recording forms were inaccurate when you completed them. The reasons given by you on July 28, 1987, regarding your actions outlined above, are determined to be unacceptable. Accordingly, and in light of the very serious nature of your actions, it is felt that no alternative exists but to terminate your services. d. December 1, 1987 - Civil Service Hearing, Appeal of your dismissal. During this hearing, your attorney withdrew your appeal. 6. Information developed by the Department of Labor and Industry disclosed that while employed by Labor and Industry, you reported your earnings under Social Security No. 152 -36 -2586. You also used a Social Security No. 156 -56 -2475 for reporting earnings while employed at the Philadelphia Nursing Home. a. At a Civil Service hearing held on December 1, 1987, James Coleman testified that he spoke with you in June, 1987 regarding your working two jobs and that you admitted working for both the State and PNH. Coleman further testified that you admitted to using two social security numbers, that the number you were using with the state was your brother's and that you needed the money. That's wily you were working for the state. Wildeman, Labor Relations Office, Department of Labor and stated the following: You were employed as a Boiler Inspector, for the Department of Labor and Industry, from December 11, 1985 until August 12, 1987. b. You submitted Statements of Financial Interests forms, SEC - 1, to the Bureau of Personnel, Department of Labor and Industry on May 12, 1986 and May 9, 1987, which indicated that you had no other, direct or indirect sources of income : for the years 1985 and 1986. c. He attended a fact finding meeting, on July 28, 1987, held to investigate the allegations made against you. Also present at the meeting were Arnold Mack, AFSCME District Mr. Stephen Forbes Page 7 Representative, Charles Sludden, BOIS Administrator and yourself. d. During the course of that meeting, you admitted knowing the information you supplied, on the Statements of Financial Interests' forms was incorrect when you completed and submitted the forms. 8. James A. Coleman, Personnel Officer, City of Philadelphia Nursing Home, stated the following: a. You were employed by the Philadelphia Nursing Home, as a Stationary Engineer from July 15, 1985 to November 9, 1987. You transferred to the City of Bureau of Prisons at that time. b. You were a full -time employee earning in excess of $500 a year, for the years of 1985, 1986 and 1987. 9. Records of the Department of Labor and Industry disclosed the following: a. The Bureau of Personnel, Department of Labor and Industry, received from you, on May 12, 1986 and May 9, 1987 Statements of Financial Interests on forms, SEC -1, bearing your signature and dated May 12, 1986 and May 9, 1987, respectively, for the position of Boiler Inspector, Department of Labor and Industry. b. The form dated May 12, 1986, disclosed, on Line 11, the box for direct or indirect sources of income was checked "none ". The form dated May 9, 1987 disclosed, on Line 11 the box for direct or indirect sources of income was checked "none ". The section immediately below contained the name "Labor and Industry, BOIS, Blr. Div., Harrisburg, PA 17120, Labor and Industry Building." c. The form dated May 12, 1986, line 2 listed your address as P.O. Box 21781, Philadelphia, Pennsylvania, 19146. Telephone No. (215)- 696 -4263. The form dated May 9, 1987, line 2 listed your address as 2226 Spruce Street, Philadelphia, 19103, telephone No. (215)- 696 -4263. 10. A Statement of Financial Interests dated December 23, 1985 lists your address as 2226 Spruce Street, Philadelphia, Pennsylvania. a. • Your phone number is listed as 215 - 696 -4263. b. You list none in all categories of financial interests including direct or indirect sources of income. Mr.. Stephen Forbes Page 8 11. June Abel, an employee of Julius Katz Real Estate, 700 South 18th Street, Philadelphia, Pennsylvania, stated her agency is the rental agent for the apartment house at 2226 Spruce Street. This is the street address that you list on your Statements of Financial Interests. A check of the Real Estate firm's records disclosed no record of you presently or previously living at that address. 12. A check with Bell Telephone of Pennsylvania disclosed the telephone No. 215 - 696 -4263 you list on your Statements of Financial Interests, is registered to a person in West Chester, Pennsylvania. 13. A check with New Jersey Bell Telephone disclosed that telephone No. 848 -1806 is listed to Stephen Forbes at 18 Cooper Drive, Woodbury, New Jersey. You were contacted at that number on April 21, 1988. 14. On April 6, 1988, two motor vehicles were observed parked in the driveway of 18 Cooper Drive, Woodbury, New Jersey. The vehicles had New Jersey license tags CMJ93B and BAE28E. Both tags are registered to Stephen Forbes, 18 Cooper Drive, Woodbury, New Jersey. A check with the New Jersey Bureau of Motor Vehicles disclosed that you maintain a current New Jersey driver's license. a. Records of the Pennsylvania Department of Motor Vehicles indicate ' that - you also hold a current operator's license in the State of Pennsylvania. 15. You are not a resident of the Commonwealth of Pennsylvania. 16. Your salary in December 1985 when you started with the Department of Labor and Industry was $17,193 /annually, or $8.79/hr. 17, Your salary when you were terminated was $18,602 /annually or $9.51 /hr. B. Discussion: As a former boiler inspector with the Department of Labor and Industry, you were a "public employee" as that term is defined under the State Ethics Act. As such, you are subject to the provisions of the Ethics Act and the restrictions therein are applicable to you. 65 P.S. 402; 51 Pa. Code Section 1.1. Section 3(a) of the Ethics Act quoted above, specifically provides, in part, that no public employee may use public office to obtain a financial gain for himself other than compensation provided for by law. In determining whether your actions have violated Section 3(a) of the Ethics Act supra, a review of the facts set forth in the findings above is in order. You were hired as a boiler inspector for the Department of Labor and Industry commencing December 11, 1985 in the Mr. Stephen Forbes Page 9 Bureau of Occupational and Industrial Safety (BOIS) which position entailed working out of your home with little on -site supervision. As part of your duties, you were required to submit daily and weekly time records which documented the hours you worked and the locations where you worked. A review of these work records beginning as early as February of 1986 reflect an impossibility that you were working as a Commonwealth employee on various specified dates while simultaneously working as an employee of the Philadelphia Nursing Home (PNH). Simply stated, the records of BOIS and PNH show that you were working on certain specified dates and times at both jobs at the same time. The foregoing facts are incontrovertible since your work records both at BOIS and PNH establish that you submitted false time records to the Department of Labor and Industry; you claimed time for non - existent work when you were in fact working at PNH. The discovery of your actions by Labor and Industry resulted in your termination. It is further noted that although you initially considered challenging this by appealing to the Civil Service Commission, you withdrew your appeal. It is clear that you withdrew your appeal because you had no basis for challenging your termination. You have been incriminated by your own time records which you prepared. Further, you made false statements on the Labor and Industry informational sheets of September 19, 1985 wherein you indicated that you did not have any supplemental employment. It even appears that you have made misrepresentations as to your residency in that you are not, in fact, a Pennsylvania . resident but are a New Jersey resident. The foregoing has been verified through the New Jersey Bureau of Motor Vehicles which has a record of your New Jersey driver's license and your two vehicles which are registered in your name at the location of 18 Cooper Drive, Woodbury, New Jersey. Aside from your deceit in gaining employment with the Commonwealth when you were /are not a Pennsylvania resident and in stating that you had no outside employment when, in fact, you were employed by PNH, the base conclusion in this case is that you have violated Section 3(a) of the Ethics Act by obtaining a payment from the Commonwealth for work which you did not perform. In this instance, all of elements necessary to establish a violation of 3(a) of the Ethics Act have been established. You were a public employee, you used public office through the submission of the false time records, you obtained a financial gain consisting of the payment for the time that you did not work, you received the gain individually and lastly, the gain was not compensation provided for by law because there is no provision in law which would allow you to be paid for work which you did not perform. The above conclusion is consonant with this Commission's decision in Cohen, Order 610 -R. In the cited case, the determined that a Commonwealth attorney with the Pennsylvania Securities Commission violated Section 3(a) of the Ethics Act when he received payment for "working" in the state office while he was at the same time serving on arbitration panels in state and federal court for which he also received compensation. In this case, you completed Mr. Stephen Forbes Pege 10 time records indicating that you were working for BOIS for which you received payment when, in fact, you were working for PNH. Such action on your part constitutes a flagrant violation of the Ethics Act. In an attempt to conceal your activities it is noted that you failed to list PNH as a source of income on your Financial Interest Statements for the calendar years 1985 and 1986. The personnel officer of PNH verifies that you were an employee during that period of time and that you did receive a salary in excess of $500. The foregoing failur:. f to list your outside income coupled with the fact that you used two social security numbers conclusively establishes your intent to conceal financial information in this instance. The foregoing establishes that you have also violated Section 5(b)(5) of the Ethics Act quoted above as to your failure to list your outside source of income; this was done for the sole purpose of concealing that information so that you could continue to bilk the Commonwealth for time that you did not work. Additionally, you violated Section 4 of the Ethics Act when you failed to file a Statement of Financial Interests for the calendar year 1987. You are hereby directed to file amended Statements of Financial Interests for the 1985 and 1986 .calendar year which will include listing your employment with PNH and you will further file a complete Statement of Financial Interests for the calender year 1987. The State Ethics Act authorizes this Commission to require restitution of any financial gain obtained in violation of the Act. See, Yocabet v. State Ethics Commission, Pa. Commw. Ct., 531 A.2d 536, (1987). The Act further provides as follows: Section 9. Penalties. (a) Any person who violates the provisions of Section 3(a) and 3(b) is guilty of a felony and shall be fined not more than $10,000 or imprisoned for not more than five years, or be both fined and imprisoned. 65 P.S. §409(a). (b) Any person who violates the provisions of section 3(c) and (h) or section 4 is guilty of a 1+ 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). Since you have received $546.00 from violating the Ethics Act by being paid for the time for which you did not work, you are hereby dir4cted'to make restitution to the Department of Labor and Industry in that amount. The power of this Commission to order restitution of an unlawful financial gain has been sustained by the courts. See Yocabet v. State Ethics Commission, Pa. Commw. Ct. , 531 A.2d Mr. Stephen Forbes Page 11 536 (1987). Therefore, you must, within 30 days of the date of this order, forward a check to the State Ethics Commission payable to the Department of Labor and Industry in the amount of $546.00. It is further provided in Section 9(c) of the Ethics Act: Section 9. Penalties. (c) Any person who obtains financial gain from violating any provision of this act, in addition to any other penalty provided by law, shall pay into the State Treasury a sum of money equal to three times the financial gain resulting from such violation. 65 P.S. §409(c). Pursuant to the above provision, since you have received a financial gain of $546.00, you are hereby ordered to make restitution in that amount to your former governmental Agency and to also pay treble that amount or $1,638.00 into the State Treasury. Therefore, you must, within 30 days of the date of this order, forward checks to the State Ethics Commission payable to the State Treasury in the amount of $1,638.00 and to the Department of Labor and Industry in the amount of $546.00. Additionally, it is noted that you have a driver's license for both Pennsylvania & New Jersey. This is in direct contravention to 75 Pa. C.S.A. §1501(c) which provides: (c) Limitation on number of licenses -No person shall receive a driver's license unless and until the person surrenders to the department all valid licenses in the person's possession issued by this or any other state. All surrendered licenses issued by another state shall be returned to that state, together with information that the person is licensed in this Commonwealth. No person shall be permitted to have more than one valid driver's license at any time. In light of the above quoted statute, this Order will be referred to the Pennsylvania Department of Transportation, PennDot. Finally, based upon your flagrant violation of the various provisions of the Ethics Act, this Commission will refer this case to the appropriate law enforcement authority with a recommendation for prosecution and for a review to determine whether other state or federal laws have been violated which would warrant either a civil or criminal prosecution. Mr. Stephen Forbes Page 12 C. Conclusion and Order: 1. As a former boiler inspector in the Department of Labor and Industry, you were a public employee subject to the provisions of the State Ethics Act. 2. You violated Section 3(a) of the Ethics Act when ycu submitted false time records and were paid for work which you did not perform. 3. You violated Section 5(b)(5) of the Ethics Act when you failed to disclose your private employment in the 1985 and 1986 calendar year Statements of Financial Interests. 4. You violated Section 4 of the Ethics Act when you failed to file a Statement of Financial Interests for the 1987 calendar year. 5. You must, within 30 days of the date of this Order, file amended Statements of Financial Interests for the calendar years 1985 and 1986 wherein you will list your outside employment as a source of income and further, you must file a complete Statement of Financial Interests for the calendar year 1987. 6. You are hereby directed, within 30 days of the date of this order to make restitution of your financial gain by forwarding a check to the State Ethics Commission payable to the Department of Labor and Industry in the amount of $546.00. 7. You are further directed, within 30 days of the date of this order, to pay a treble penalty for your financial gain by forwarding a check to the State Ethics Commission payable to the State Treasury in the amount of $1,638.00. 8. This matter will be referred to PennDot and to the appropriate law enforcement authority with a recommendation for prosecution and for a review to determine whether other state or federal laws have been violated which would warrant either civil or criminal prosecution. Our files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 5408(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. Stephen Forbes Page 13 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. S409(e). Enclosures (SFr - 3) By the Commission, 4. \%*At (X)44k,k Joseph W. Marshall, 1I1 Chairman