HomeMy WebLinkAbout1213 NapotnikIn Re: Jacob Napotnik
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- 043 -C2
Order No. 1213
8/23/01
9/7/01
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 was filed and a hearing was waived. The record
is complete. A Consent Agreement and Stipulation of Findings were submitted by the
parties to the Commission for consideration. The Consent Agreement was subsequently
approved.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter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.
Napotnik, 00- 043 -C2
Page 2
I. ALLEGATION:
That Jacob Napotnik, a public official in his capacity as a Supervisor for East
Wheatfield Township, Indiana County, violated Sections 4(a)/1104(a) and 5(b)(9) and
(10)/1105(b)(9) and (10) of the Ethics Act when he failed to file Statements of Financial
Interests with the township for 1997, 1998 and 1999 calendar years, by May 1 St of the
following calendar years; and when he failed to disclose all businesses in which he had a
financial interest.
II. FINDINGS:
1. Jacob Napotnik served as a Supervisor for East Wheatfield from January 1998
through December 1999.
a. Napotnik served as vice - chairman of the Board of Supervisors in 1998 and
1999.
2. Napotnik is retired and was the former owner of Napotnik Welding, Inc.
3. Roberta Naugle has served as East Wheatfield Township Secretary /Treasurer
since at least 1998.
4. 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 Jacob Napotnik on February 12, 1998.
5. Napotnik 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.
6. 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 the forms were necessary. Secretary Naugle advised
that it is required. Napotnik responded "do not get me to talk about that."
7 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. Napotnik stated that they filled them out last year.
c. Napotnik refused to file the form based on principle.
d. Stiles advised that they have to be filled out each year due to the position
that was held.
e. Napotnik 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.
Napotnik, 00- 043 -C2
Page 3
f. A lengthy discussion followed.
8. 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.
9. 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.
a. Only supervisors Umholtz and Jacob Napotnik were determined to have
failed to file by May 1, 1998.
10. Napotnik filed a Statement of Financial Interests with the township on June 13,
1998, while the compliance review was being conducted.
a. The Statement of Financial Interests was for calendar year 1997 and was
dated June 13, 1998.
b. The form was completed by Napotnik's daughter Susan.
11. 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 Napotnik, on February 5, 1999.
12. 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.
13. 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.
14. Napotnik did not file a Statement of Financial Interests for the 1998 calendar year
by May 1, 1999.
15. At the time that he failed to file a Statement of Financial Interests for calendar year
1997 and 1998, Napotnik was aware of the filing requirement and that he had not
complied with such.
16. Napotnik intentionally failed to file a Statement of Financial Interests for calendar
years 1997 and 1998.
17. Jacob Napotnik filed a Statement of Financial Interests for the 1998 calendar year
with the township on August 7, 2000.
a. Umholtz [sic] 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.
18. Napotnik filed a Statement of Financial Interests for calendar year 1999 on August
7, 2000.
Napotnik, 00- 043 -C2
Page 4
a. Napotnik was given the form by Naugle on January 25, 2000.
b. The form was due to be filed by May 1, 2000, for the year after Napotnik left
office.
19. Napotnik did not disclose ownership of Napotnik Welding, Inc., a welding and
fabricating business, on Statements of Financial Interests filed late for calendar
years 1997, 1998, or 1999.
a. Napotnik had operated Napotnik Welding for some time prior to
incorporating the business.
20. Articles of Incorporation for Napotnik Welding, Inc., on file with the Department of
State Corporation Bureau, identify Napotnik as an officer and incorporator of the
corporation.
a. The business was incorporated June 1, 1988.
b. No Amendments to the original documents have been filed.
c. Napotnik is shown as holding 1,000 shares of Class "A" Common Stock
(voting); and 8,000 shares of Class "B" Common Stock (non- voting).
21. In approximately 1993, two companies owned by Napotnik's son, Norman Napotnik,
were merged with Napotnik Welding, Inc., which continued as the surviving
corporation.
a. Napotnik was listed as 49% owner of the business.
22. Jacob Napotnik received no compensation from Napotnik welding in 1997, 1998
and 1999.
23. Income Tax Returns filed jointly by Jacob and Imelda Napotnik for 1997, 1998 and
1999 confirm that interest income in excess of $1,600 was received by Napotnik.
a. The interest income and the sources were not disclosed on the Statements
of Financial Interests filed by Napotnik for the 1997, 1998 and 1999 calendar
years.
24. Napotnik asserts that he relinquished all rights and he believed that he had no
ownership, management or financial interest in Napotnik Welding, Inc., after 1992.
25. Napotnik asserts that through inadvertence and mistake of counsel specifically
retained to handle same, the corporate records for Napotnik Welding, Inc., were
never amended to remove Napotnik as a stockholder of the company in 1993 -94.
26. Napotnik asserts he never intentionally set out to obstruct or otherwise interfere
with his reporting obligations to the State and has now complied with his reporting
obligations.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Jacob Napotnik, hereinafter
Napotnik, 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
Napotnik, 00- 043 -C2
Page 5
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."
The allegation is that Napotnik violated Section 4(a)/1104(a) of the Ethics Act when
he failed to file Statements of Financial Interests (FIS's) with the township for the 1997,
1998, and 1999 calendar years by May 1 of the following years and violated Section (b)
(9) and (10)/1105(b)(9) and (10) when he failed to disclose all businesses in which he had
financial interests.
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).
Section 5/1105. Statement of financial interests.
(b) Required information. - -The statement shall include the following
information for the prior calendar year with regard to the person required to
file the statement.
profit.
(9) Any financial interest in any legal entity engaged in business for
(10) The identity of any financial interest in a business with which the
reporting person is or has been associated in the preceding calendar year
which has been transferred to a member of the reporting person's immediate
family.
65 P.S. § 405(b)/65 Pa.C.S. §1105(b).
Section 4(a)/1104(a) of the Ethics Act quoted above requires that each public
official /public employee must file an FIS for the preceding calendar year, each year that he
holds the position and the year after he leaves it.
Section 5(b)(9) and (10)/1105(b)(9) and (10) quoted above requires that the
statement shall include any financial interest in any legal entity engaged in business for
profit and the identity of any financial interest in a business with which the reporting person
is or has been associated in the preceding calendar year which has been transferred to a
member of the reporting person's immediate family.
Napotnik, 00- 043 -C2
Page 6
facts.
Having noted the issues and applicable law, we shall now summarize the relevant
Napotnik served as an East Wheatfield Township Supervisor from January 1998
through December 1999 and as Board Vice Chairman in 1998 and 1999.
Both in 1998 and 1999, the township secretary /treasurer distributed blank FIS's to
the elected officials and public employees within the township. The secretary also gave
Napotnik an FIS form on January 25, 2000, for the calendar year 1999; this occurred after
Napotnik had left office. Although blank FIS forms were specifically given to Napotnik, he
did not file his FIS's by the May 1 deadlines.
During the May 11, 1998, Board meeting, the secretary advised the Board that the
FIS's were due by May 1, 1998 and that Napotnik and Supervisor Umholtz 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.
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 review was done in the township by the Commission on June 11 -12,
1998. The review reflected that Umholtz and Napotnik were the only individuals who
failed to file FIS's by May 1, 1998. Napotnik then filed his 1997 calendar year FIS with the
township on June 13, 1998.
In February 1999, the township secretary provided the blank forms to the members
of the Board of Supervisors, including Napotnik. At a February 8, 1999, Board meeting,
the secretary advised the Board members that the FIS forms 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. Thus, Napotnik knew of the FIS
filing requirement but intentionally failed to timely file the FIS's for the calendar years 1997,
1998, and 1999. As to the 1998 and 1999 calendar year FIS's, Napotnik filed these two
forms on August 7, 2000.
Napotnik failed to disclose his ownership in Napotnik Welding, Inc. for the calendar
years 1997, 1998, and 1999. Napotnik asserts that he relinquished all rights in Napotnik
Welding, Inc. in 1992 but, through inadvertence or a mistake of counsel, Napotnik's name
remained on the corporate records.
Having summarized the above relevant facts, we must now determine whether the
actions of Napotnik violated Section 4(a)/1104(a) and 5(b)(9) and (10)/1105(b)(9) and (10)
of Act 9 of 1989/Act 93 of 1998.
For the relevant time period, Napotnik, as an East Wheatfield Township Supervisor,
was a public official required to annually file an FIS on or before May 1 for the prior
calendar year. Further, as a former public official in 2000, Napotnik was required to file an
FIS for the calendar year 1999. In this case, the record reflects that Napotnik was very
well aware of the filing requirements under the Ethics Act. The secretary of the township in
all three years handed out the FIS forms to Napotnik. In addition, there were several
discussions at the board regarding FIS filing requirements. Nevertheless, Napotnik failed
to file FIS's for the calendar years 1997, 1998, and 1999 on or before each May 1St
deadline. Accordingly, Napotnik violated Section 4(a)/1104(a) of the Ethics Act when he
failed to timely file FIS's for the calendar years 1997, 1998, and 1999.
Napotnik, 00- 043 -C2
Page 7
For these three calendar years, Napotnik's FIS's were deficient in that he failed to
disclose his business interests in Napotnik Welding, Inc. Napotnik asserts that his interest
was not completely transferred to his son in 1992 due to a mistake or inadvertence of
counsel. Napotnik technically violated Section 5(b)(9) and (10)/1105(b)(9) and (10) when
he failed to list his business interests in Napotnik Welding, Inc. on his 1997, 1998, and
1999 calendar year FIS's.
The parties' have entered into a Consent Agreement which sets forth a proposed
resolution of the allegations: violations of Section 4(a)/1104(a) of the Ethics Act by
Napotnik as to his failure to timely file FIS's for 1997, 1998 and 1999 calendar years;
technical violations of Section 5(b)(9) and (10)/1105(b)(9) and (10) of the Ethics Act by
Napotnik as to his failure to list business interests on his 1997, 1998, and 1999 calendar
year FIS's; and a payment of $100 by Napotnik through this Commission to the
Commonwealth of Pennsylvania within 30 days of the issuance of this adjudication.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, Napotnik is directed to make
payment in the amount of $100 to the Commonwealth of Pennsylvania through this
Commission within 30 days of the mailing of this order. Compliance with the foregoing will
result in the closing of this case with no further action by this Commission. Noncompliance
will result in the institution of an order enforcement action.
IV. CONCLUSIONS OF LAW:
1. For the relevant time period, Napotnik, as a Supervisor in East Wheatfield
Township, was a public official subject to the provisions of Act 9 of 1989/Act 93 of
1998.
2. Napotnik violated Section 4(a)/1104(a) of the Ethics Act when he failed to timely file
FIS's for the calendar years 1997, 1998, and 1999.
3. Napotnik technically violated Section 5(b)(9) and (10)/1105(b)(9) and (10) for
calendar years 1997, 1998, and 1999 when he failed to list on his FIS's his
business interests in Napotnik Welding, Inc., which interest was not completely
transferred to his son in 1992 due to a mistake or inadvertence of counsel.
In Re: Jacob Napotnik
ORDER NO. 1213
File Docket: 00- 043 -C2
Date Decided: 8/23/01
Date Mailed: 9/7/01
1 Napotnik, as a Supervisor in East 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, 1998, and 1999.
2. Napotnik technically violated Section 5(b)(9) and (10)/1105(b)(9) and (10) for the
calendar years 1997, 1998, and 1999 when he failed to list on his FIS's his
business interests in Napotnik Welding, Inc., which interest was not completely
transferred to his son in 1992 due to a mistake or inadvertence of counsel.
3. As per the Consent Agreement, Napotnik is directed within 30 days of the date of
issuance of this order to make payment of $100 through this Commission to the
Commonwealth of Pennsylvania.
a. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission.
b. Non - compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
DANEEN E. REESE, CHAIR