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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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. §1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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