HomeMy WebLinkAbout1193 UmholtzIn Re: Kenneth Umholtz
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Daneen E. Reese, Chair
Louis W. Fryman, Vice Chair
John J. Bolger
Frank M. Brown
Susan Mosites Bicket
Donald M. McCurdy
00- 042 -C2
Order No.1193
3/12/01
3/16/01
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding a possible violation of the Public Official and Employee Ethics
Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., by the above -named Respondent. At the
commencement of its investigation, the Investigative Division served upon Respondent
written notice of the specific allegation(s). Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an "Investigative Complaint." An Answer in the form of a letter was filed and a hearing was
deemed waived. The record is complete.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. §1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
Umholtz, 00- 042 -C2
Page 2
I. ALLEGATION:
That Kenneth Umholtz, a public official in his capacity as a Supervisor for East
Wheatfield Township, Indiana County, violated the following provisions of the Ethics Act
(Act 93 of 1998) when he failed to file Statements of Financial Interests with the township
for the 1997 and 1998 calendar year by May 1 St of the following years.
Section 4/1104. Statement of financial interests required to
be filed.
(a) Public official or public employee.- -Each public
official of the Commonwealth shall file a statement of financial
interests for the preceding calendar year with the commission
no later than May 1 of each year that he holds such a position
and of the year after he leaves such a position. Each public
employee and public official of the Commonwealth shall file a
statement of financial interests for the preceding calendar year
with the department, agency, body or bureau in which he is
employed or to which he is appointed or elected 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 or public official shall file a statement of financial
interests with the governing authority of the political
subdivision by which he is employed or within which he is
appointed or elected no later than May 1 of each year that he
holds such a position and of the year after he leaves such a
position. Persons who are full -time or part -time solicitors for
political subdivisions are required to file under this section.
65 P.S. §404(a)/65 Pa. C. S. §1104(a).
II. FINDINGS:
1. The Investigative Division of the State Ethics Commission received a signed, sworn
complaint alleging that Kenneth Umholtz violated provisions of the State Ethics Act
(Act 93 of 1998).
2. Upon review of the complaint the Investigative Division initiated a preliminary
inquiry on July 6, 2000.
3. The preliminary inquiry was completed within sixty days.
4. On August 24, 2000, a letter was forwarded to Kenneth Umholtz, by the Executive
Director of the State Ethics Commission informing him that a complaint against him
was received by the Investigative Division and that a full investigation was being
commenced.
a. Said letter was forwarded by certified mail, no. 7099 3400 0012 4638 2332.
b. The domestic return receipt bore the signature of LuAnn M. Umholtz, with a
delivery date of August 26, 2000.
5. Periodic notice letters were forwarded to Kenneth Umholtz in accordance with the
provisions of the Ethics Law advising him of the general status of the investigation.
6. The Investigative Complaint was mailed to the Respondent on February 2, 2001.
Umholtz, 00- 042 -C2
Page 3
7 Kenneth Umholtz has served as a Supervisor for East Wheatfield Township,
Indiana County since January 1998.
a. Umholtz served as Chairman of the Board of Supervisors in 1998 and 1999
and Vice Chairman in 2000.
8. Umholtz is employed by Sithe Mid - Atlantic Power Services, Inc. (formerly
Pennsylvania Electric Company).
9. Roberta Naugle has served as East Wheatfield Township Secretary /Treasurer
since at least 1998.
10. In 1998 and 1999 Naugle distributed blank Statements of Financial Interests to
elected officials and public employees for filing.
a. Naugle provided a blank form to Kenneth Umholtz on February 2, 1998.
11. Umholtz did not file a Statement of Financial Interests by May 1, 1998.
a. The filing was due for financial interests for 1997, the preceding calendar
year.
12. During the May 11, 1998, board of supervisors meeting, Secretary Naugle advised
the board that State Ethics forms were due May 1, 1998, and Umholtz and Napotnik
have not submitted their forms.
a. Napotnik asked why do you need them. Secretary Naugle advised that it is a
requirement that they are filled out. Napotnik advised that you do not get me
to talk about that.
13. On June 8, 1998, during a regular board meeting Supervisor Stiles brought up the
Ethics forms stating they are filled out every year and are due by May 1 .
a. Napotnik questioned why the form had to be filed.
b. Umholtz stated that they filled them out last year.
c. Napotnik refused to file the form based on principal.
d. Stiles advised that they have to be filled out each year due to the position
that was held.
e. Umholtz advised that you do not have to put anything on them as to
monetary /money, it is not necessary, he had checked that out, you do not
have to put down how much money you make or any of that kind of stuff.
f. A lengthy discussion followed.
14. Sometime prior to June 11, 1998, the Investigative Division of the State Ethics
Commission received information that East Wheatfield Township public
officials /employees, including members of the board of supervisors, failed to file
Statements of Financial Interests.
15. A Statement of Financial Interests Compliance Review was conducted by an
investigator for the State Ethics Commission on June 11, 1998, and June 12, 1998.
Umholtz, 00- 042 -C2
Page 4
a. Only supervisors Umholtz and Jacob Napotnik were determined to have
failed to file by May 1, 1998.
16. Umholtz filed a Statement of Financial Interests with the township on June 12,
1998, while the compliance review was being conducted.
a. The Statement of Financial Interests was for calendar year 1997 and was
dated June 12, 1998.
17. On February 5, 1999, Roberta Naugle received blank statements of financial
interests from the Administrative Division of the State Ethics Commission.
a. Naugle provided blank forms to members of the board of supervisors,
including Umholtz, on February 5, 1999.
18. During the February 8, 1999, meeting of the board of supervisors, Naugle advised
the board of supervisors that the township received 12 forms and that more forms
were being mailed. She also advised that forms are due to be filed by May 1, 1999.
19. On July 19, 1999, Naugle advised the board that Ethics forms have been turned in
by everyone except Kenneth A. Umholtz and Jacob Napotnik.
a. Umholtz advised that he and Napotnik will fill out the forms.
20. Umholtz did not file a Statement of Financial Interests for the 1998 calendar year by
May 1, 1999.
21. At the time that he failed to file a Statement of Financial Interests for calendar year
1997 and 1998, Umholtz was aware of the filing requirement and that he had not
complied with such.
22. Kenneth Umholtz filed a Statement of Financial Interests for the 1998 calendar year
with the township on August 7, 2000.
a. Umholtz filed the form for the 1998 calendar year during the preliminary
inquiry of this matter and after he became aware of the fact that he was the
subject of a State Ethics Commission inquiry.
23. Umholtz filed a Statement of Financial Interests for calendar years 1999 on
February 21, 2000.
a. The filing failed to disclose his employment as a source of income for the
1999 calendar year.
b. Umholtz received income in excess of $1,600.00 from Sithe Mid - Atlantic
Power Services in 1999.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Kenneth Umholtz, hereinafter
Umholtz, has been a public official subject to the provisions of the Public Official and
Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq., as codified
by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S.
§1101 et seq., which Acts are referred to herein as the "Ethics Act."
Umholtz, 00- 042 -C2
Page 5
The allegation is that Kenneth Umholtz violated Section 4(a)/1104(a) of the Ethics
Act when he failed to file Statements of Financial Interests with the township for the 1997
and 1998 calendar years by May 1 of the following years.
Section 4(a)/1104(a) of the Ethics Act quoted above requires that each public
official /public employee must file a Statement of Financial Interests for the preceding
calendar year, each year that he holds the position and the year after he leaves it.
facts.
Having noted the issues and applicable law, we shall now summarize the relevant
Umholtz has served as an East Wheatfield Township Supervisor since January
1998, as Board Chairman in 1998 and 1999, and Vice Chairman in 2000.
Both in 1998 and 1999, the township secretary /treasurer distributed blank
Statements of Financial Interest (FIS's) to the elected officials and public employees within
the township. Although a blank FIS form was specifically given to Umholtz, he did not file
his FIS by the May 1, 1998, deadline. During the May 11, 1999, Board meeting, the
secretary advised the Board that the FIS's were due by May 1, 1999 and that Umholtz and
Supervisor Napotnik had not filed their forms. When Napotnik asked why it was necessary
to file FIS's, the secretary advised that it was a legal requirement that the FIS's had to be
completed and filed. At a June 8, 1998, meeting when Napotnik again questioned why
FIS's had to be filed, Supervisor Stiles responded that FIS's had to be filed every year on
or before May 1St
Sometime prior to June 11, 1998, the Investigative Division received information
that the public officials and public employees of East Wheatfield Township failed to file
FIS's. A compliance audit was done by the Commission on June 11 -12, 1998, in the
township. The review reflected that Umholtz and Napotnik were the only individuals who
failed to file FIS's by May 1, 1998. Umholtz filed an FIS with the township on June 12,
1998, while the compliance review was being conducted.
In February 1999, the township secretary again received blank FIS's from the
Administrative Division of this Commission and provided the blank forms to the members of
the Board of Supervisors, including Umholtz. At a February 8, 1999, Board meeting, the
secretary advised the Board members that the township had received the forms which had
to be completed and filed on or before May 1, 1999.
On July 19, 1999, the township secretary advised the board that the FIS forms had
been filed by everyone except Umholtz and Napotnik. Umholtz filed an FIS for the
calendar year 1998 on August 7, 2000, which was at the time when the preliminary inquiry
as to Umholtz was being conducted by the Investigative Division of the Commission.
Umholtz was aware of the filing requirements and of his failure to comply with said
requirements for the calendar years 1997 and 1998. As to the 1999 calendar year FIS,
Umholtz filed that form on February 21, 2000; however, Umholtz failed to disclose all of his
sources of income: his employment and Sithe Mid - Atlantic Power Services.
Having summarized the above relevant facts, we must now determine whether the
actions of Umholtz violated Section 1104 of Act 9 of 1989.
Umholtz, as a Wheatfield Township Supervisor, is a public official required to
annually file an FIS on or before May 1 for the prior calendar year. In this case, Umholtz
failed to file FIS's for the calendar years 1997 and 1998 on or before each May 1St
deadline. Accordingly, Umholtz violated Section 4(a)/1104(a) of the Ethics Act when he
failed to timely file FIS's for the calendar years 1997 and 1998.
Umholtz, 00- 042 -C2
Page 6
In this case, the record reflects that Umholtz was very well aware of the filing
requirements under the Ethics Act. The secretary of the township in both years specifically
handed out the FIS forms to Umholtz. In addition, there were several discussions at the
board regarding FIS filing requirements.
For the 1999 calendar year FIS, although Umholtz timely filed the form, the record
reflects that the FIS was deficient in that he failed to disclose sources of income of $1,300
or more. Specifically, the record reflects that Umholtz failed to disclose income from his
employment as well as income from Sithe Mid - Atlantic Power Services. Accordingly,
Umholtz is directed within 30 days of the date of issuance of this order to file an amended
FIS for the calendar year 1999 including all sources of income of $1,300 or more and to
send one copy of the FIS to this Commission for compliance verification purposes.
Umholtz is reminded that public office is a public trust. Further, Umholtz, as to his
future conduct, must ensure that he timely, completely and accurately files FIS's for each
year that he holds such position and for the year after he leaves such position.
IV. CONCLUSIONS OF LAW:
1. Umholtz, as a Supervisor in Wheatfield Township, is a public official subject to the
provisions of Act 9 of 1989.
2. Umholtz violated Section 4(a)/1104(a) of the Ethics Act when he failed to timely file
FIS's for the calendar years 1997 and 1998.
In Re: Kenneth Umholtz
ORDER NO. 1193
File Docket: 00- 042 -C2
Date Decided: 3/12/01
Date Mailed: 3/16/01
1 Umholtz, as a Supervisor in Wheatfield Township, violated Section 4(a)/1104(a) of
the Ethics Act when he failed to timely file Financial Interest Statement's (FIS's) for
the calendar years 1997 and 1998.
2. Umholtz is directed within 30 days of the date of issuance of this order to file an
amended FIS for the calendar year 1999 including all sources of income of $1,300
or more, with one copy of the FIS forwarded to this Commission for compliance
verification purposes. Non - compliance will result in the institution of an order
enforcement action.
BY THE COMMISSION,
DANEEN E. REESE, CHAIR