HomeMy WebLinkAbout1220 D'InnocenzoIn Re: Donetta D'Innocenzo
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
Michael Healey
01- 001 -C2
Order No. 1220
10/15/01
10/19/01
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
Act, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., as codified by Act 93 of 1998, Chapter 11,
65 Pa.C.S. §1101 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 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Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter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.
D'Innocenzo, 01- 001 -C2
Page 2
I. ALLEGATION:
That Donetta D'Innocenzo, a former public employee in her capacity as Director of
Bureau of Contract Administration and Business Development and Agency Liaison for the
Department of General Services, Commonwealth of Pennsylvania, violated Section
1104(a) of the Ethics Act (Act 93 of 1998) when she failed to file a Statement of Financial
Interests for the 1998 calendar year by May 1, 1999, for the year after leaving state
employment.
II. FINDINGS:
1. The Investigative Division of the State Ethics Commission received a signed, sworn
complaint alleging that Donetta D'Innocenzo 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 January 8, 2001.
3. The preliminary inquiry was completed within sixty days.
4. On March 9, 2001, a letter was forwarded to Donetta D'Innocenzo, by the Executive
Director of the State Ethics Commission informing her that a complaint against her
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 4637 9523.
b. The domestic return receipt bore the signature of Donetta D'Innocenzo, with
a delivery date of March 13, 2001.
5. Periodic notice letters were forwarded to Donetta D'Innocenzo in accordance with
the provisions of the Ethics Law advising her of the general status of the
investigation.
6. The Investigative Complaint was mailed to the Respondent on September 5, 2001.
7 Donetta D'Innocenzo served as Agency Liaison, Department of General Services,
Commonwealth of Pennsylvania, from April 18, 1998, until November 30, 1998.
a. D'Innocenzo's class title was Administrative Officer V.
b. D'Innocenzo reported directly to Gary Crowell, Secretary of General
Services.
8. D'Innocenzo resigned her position of Administrative Officer V, with the Department
of General Services, effective November 30, 1998.
9. In the position of Agency Liaison, D'Innocenzo served as a principle advisor to the
Secretary Crowell on complex and sensitive administrative and technical matters
and as liaison between the Secretary's Office and various deputates, bureaus and
offices of DGS as well as other governmental and public entities.
a. D'Innocenzo served as agency liaison with a coalition of Commonwealth
agencies dealing with minority and women -owned businesses.
D'Innocenzo, 01- 001 -C2
Page 3
10. Donetta M. D'Innocenzo also served as the Director of the Office of Contract
Administration and Business Development, Department of General Services,
Commonwealth of Pennsylvania, from May 30, 1995, to April 18, 1998.
11. D'Innocenzo's duties while serving as Director of the Office of Contract
Administration and Business Development included overseeing the operation of the
Minority and Women Business Enterprise Office which employed approximately 17
to 23 employees.
12. The Minority and Women Business Enterprise Office consisted of the Business
Development Section, Certification Section, and Construction and Grants Review
Section, which in part, were responsible for the following tasks:
a. Conducting investigations to establish prima facia evidence for use in
hearings and arbitration determinations and working with the Department of
General Services General Counsel to facilitate contract suspensions when
violations require such actions.
b. Overseeing the preparation of a current list of certified minority and women
businesses and the preparation of a MBE /WBE Construction Directory.
13. While serving in the position of Director of the Office of Contract Administration and
Business Development and Administrative Officer V acting as liaison with the
coalition of minority and women -owned business, D'Innocenzo prepared and
submitted annual Statements of Financial Interests under the Governor's Code of
Conduct and an annual Statement of Financial Interests under the State Ethics Act.
14. D'Innocenzo filed the following Statements of Financial Interests while employed at
the Department of General Services:
Date of Statement For Calendar Year
04/17/96 1995
04/14/97 1996
04/02/98 1997
15. D'Innocenzo did not file a Statement of Financial Interests by May 1, 1999, for
calendar year 1998 for the year after she left Commonwealth employment.
16. Department of General Services Secretary Gary E. Cowell, in a letter to
D'Innocenzo dated December 8, 1998, advised her of a number of issues affecting
unused annual /personal leave, her retirement account, health coverage, life
insurance coverage and filing of Statements of Financial Interests.
a. Crowell also informed D'Innocenzo that he was enclosing a copy of the
"Requirements for all Former Employees and Public Officials Under Act 170,
Pennsylvania State Ethics Act" which stipulates certain requirements and
restrictions that are applicable to former public employees and public
officials.
17. The document provided D'Innocenzo, by Crowell, contained information concerning
her responsibilities under the Ethics Act, which stated a former public official must
file a Statement of Financial Interests by May 1 of the year after leaving his /her
position, for the previous calendar year.
18. On July 10, 1997, D'Innocenzo formed a company, using the fictitious name
NetGain, to do bookkeeping work for her husband's (James D'Innocenzo) firm, JD
D'Innocenzo, 01- 001 -C2
Page 4
Associates, which was involved in the business of government consulting.
a. D'Innocenzo is the sole employee of NetGain.
b. D'Innocenzo did bookkeeping work under the fictitious name of NetGain
during 1998.
19. On a Statement of Financial Interests dated April 2, 1998, D'Innocenzo listed
NetGain as a source of income (Line No. 10) and as a company in which she had a
financial interest (Line No. 14).
20. On March 9, 2001, the Investigative Division of the State Ethics Commission
notified D'Innocenzo by certified letter that they were undertaking an investigation
regarding allegations that she failed to file a Statement of Financial Interest for the
calendar year 1998, by May 1 St of 1999. (Finding No. 4).
21. D'Innocenzo contacted the Investigative Division of the Ethics Commission,
telephonically, on or about March 14, 2001, and then by letter dated March 27,
2001.
a. D'Innocenzo, in the letter dated March 27, 2001, advised that she did not
recall receiving a Statement of Financial Interests from the Department of
General Services for her preparation and filing concerning information for
the calendar year 1998, but acknowledged receiving a letter from
Department of General Services Secretary Gary E. Crowell, at the time of
her resignation, indicating she should check the rules surrounding the filing
of Statements of Financial Interests by former employees.
22. D'Innocenzo enclosed with the letter of March 27, 2001, a completed statement of
financial interests form which she signed and dated March 15, 2001, for the
calendar year 1998.
a. The statement contains the name " Sytex, Inc., 12/98 — 22 Bailwick Office,
Doylestown, PA 18901" under direct or indirect sources of income.
b. In the section for Office, Directorship or Employment in any Business,
D'Innocenzo lists Sytex, Inc., and the fact she was an employee for 12/98
only.
23. D'Innocenzo did not disclose her interest in NetGain on either Line 14 (Office,
Directorship or Employment in any Business) and Line 15 (Financial Interest in any
Legal Entity in Business for Profit).
a. Information in the Section for Financial Interests in any Legal Entity in
Business for Profit has been crossed out and D'Innocenzo checked the box
for "none."
24. The Statement of Financial Interests prepared and signed by D'Innocenzo on March
15, 2001, did not list the Commonwealth of Pennsylvania as a direct or indirect
source of income for calendar year 1998.
a. D'Innocenzo was employed by the Commonwealth in 1998 and earned in
excess of $1,300.00.
25. D'Innocenzo, also noted in the letter dated March 27, 2001, that she was uncertain
if she was required to list the information concerning NetGain on her Statement for
the calendar year 1998 as she formed the company in 1997 for the sole purpose of
D'Innocenzo, 01- 001 -C2
Page 5
doing bookkeeping work for her husband's company but did not receive any
compensation from his company in 1998.
26. In a statement to investigators from the Investigative Division of the State Ethics
Commission on August 28, 2001, D'Innocenzo acknowledged that the Statement of
Financial Interests dated March 15, 2001, did not list the Commonwealth of
Pennsylvania under the section for direct or indirect sources of income and did not
list her financial interests in NetGain under the Section for financial interests in any
legal entity in business for profit.
a. D'Innocenzo stated she would obtain a new Statement of Financial Interests
and submit the form with the information about the Commonwealth of
Pennsylvania as a direct or indirect source of income and information about
having a financial interest in NetGain.
1. As of September 5, 2001, an amended Statement of Financial
Interests form has not been received by the Ethics Commission.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Donetta D'Innocenzo,
hereinafter D'Innocenzo, was a public employee 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."
The allegation is that D'Innocenzo, a former public employee in her capacity as
Director of Bureau of Contract Administration and Business Development and Agency
Liaison for the Department of General Services, Commonwealth of Pennsylvania, violated
Section 1104(a) of the Ethics Act (Act 93 of 1998) when she failed to file a Statement of
Financial Interests for the 1998 calendar year by May 1, 1999, for the year after leaving
state employment.
Section 1104. Statement of financial interests required to
be filed.
65 Pa.C.S. §1104(a).
(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.
D'Innocenzo, 01- 001 -C2
Page 6
Section 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
D'Innocenzo served as Agency Liaison for the Department of General Services
(DGS) from April 1998 through November 1998. As Agency Liaison, D'Innocenzo reported
directly to Gary Crowell (Crowell), Secretary of General Services.
D'Innocenzo's job duties included serving as a principle advisor to Crowell and the
liaison between Secretary Crowell's office and various deputates, bureaus, DGS offices,
and other governmental and public entities. In addition, D'Innocenzo served as the
Director of the Office of Contract Administration and Business Development of DGS from
May 1995 to April 1998.
While serving as the Director of the Office of Contract Administration, D'Innocenzo
filed Statements of Financial Interests for the 1995, 1996, and 1997 calendar years.
D'Innocenzo did not file a Statement of Financial Interests by May 1 of the year after she
left Commonwealth employment.
In December 1998, Crowell provided information to D'Innocenzo, pertaining to the
Ethics Act's filing requirements for a former public official. The information specifically
stated that a former public official must file a Statement of Financial Interests by May l of
the year after the public official leaves his position, for the previous calendar year.
In July 1997, D'Innocenzo formed a company and in 1998, performed bookkeeping
work for her husband's government consulting firm under the fictitious name NetGain.
D'Innocenzo is the sole employee of NetGain.
In March 2001, the Investigative Division of the State Ethics Commission notified
D'Innocenzo that it was commencing an investigation as to allegations that she failed to file
a Statement of Financial Interests for calendar year 1998 by May 1, 1999. In a letter dated
March 27, 2001, D'Innocenzo enclosed a completed Statement of Financial Interest form
which was signed and dated March 15, 2001. D'Innocenzo did not list NetGain or the
Commonwealth of Pennsylvania anywhere on the Statement even though in 1998, she
held a financial interest in and was employed by NetGain, and she worked for the
Commonwealth earning in excess of $1,300.
D'Innocenzo noted in her letter of March 27th that she was unsure whether she was
required to list NetGain on her Statement of Financial Interests for the 1998 calendar year
given that she had formed the company for the sole purpose of performing bookkeeping
work for her husband's firm and had not received any compensation from his company in
1998.
In a statement to investigators of the State Ethics Commission on August 28, 2001,
D'Innocenzo acknowledged that her Statement of Financial Interests dated March 15, 2001
did not list NetGain or the Commonwealth of Pennsylvania. D'Innocenzo told investigators
that she would file a new Statement of Financial Interests listing NetGain as a business in
which she has a financial interest and the Commonwealth of Pennsylvania as a direct or
indirect source of income. As of September 5, 2001, the State Ethics Commission had not
received a new Statement of Financial Interests from D'Innocenzo.
Having summarized the above relevant facts, we must now determine whether the
actions of D'Innocenzo violated Section 1104(a) of Act 93 of 1998.
D'Innocenzo, 01- 001 -C2
Page 7
The Stipulated Facts reflect that D'Innocenzo left Commonwealth employment in
November 1998, but failed to file a Statement of Financial Interests for calendar year 1998
by May 1, 1999. Section 1104(a) of the Ethics Act provides inter alia, that a public
official /public employee shall file a Statement of Financial Interests no later than May 1 . .
. of the year after he leaves such a position." 65 Pa.C.S. § 1104(a). D'Innocenzo did not
complete a Statement of Financial Interest for calendar year 1998 until March 15, 2001.
The March 15, 2001, Statement filed by D'Innocenzo was deficient in that it did not
disclose that in 1998, she held a financial interest in and had employment with NetGain,
and received direct or indirect income of $1,300 or more from the Commonwealth of
Pennsylvania. Although D'Innocenzo had assured the State Ethics Commission that she
would file an amended Statement containing all the necessary information, as of
September 5, 2001, the State Ethics Commission had not received an amended Statement
of Financial Interest from D'Innocenzo. Accordingly, D'Innocenzo violated Section 1104(a)
when she failed to file a Statement of Financial Interests for the 1998 calendar year by
May 1 of 1999.
We take administrative notice that on September 13, 2001, the State Ethics
Commission did receive D'Innocenzo's amended Statement of Financial Interests which
lists NetGain and the Commonwealth of Pennsylvania in block 10 (direct/indirect source of
income); and NetGain in block 13 (office, directorship or employment in any business) and
block 14 (financial interest in any legal entity in business for profit). Based upon the
totality of facts and circumstances, we shall take no further action in this case which is
closed.
IV. CONCLUSIONS OF LAW:
1. Donetta D'Innocenzo, as a Director of Bureau of Contract Administration and
Business Development and Agency Liaison for the Department of General Services,
was a public employee subject to the provisions of Act 9 of 1989/Act 93 of 1998.
2. Donetta D'Innocenzo violated Section 1104(a) of the Ethics Act when she failed to
file a Statement of Financial Interests for the 1998 calendar year.
In Re: Donetta D'Innocenzo
ORDER NO. 1220
File Docket: 01- 001 -C2
Date Decided: 10/15/01
Date Mailed: 10/19/01
1 Donetta D'Innocenzo, as a Director of Bureau of Contract Administration and
Business Development and Agency Liaison for the Department of General Services,
violated Section 1104(a) of the Ethics Act when she failed to file a Statement of
Financial Interests for the 1998 calendar year.
2. In that the State Ethics Commission did receive D'Innocenzo's amended Statement
of Financial Interests which lists NetGain and the Commonwealth of Pennsylvania
in block 10 (direct /indirect source of income); and NetGain in block 13 (office,
directorship or employment in any business) and block 14 (financial interest in any
legal entity in business for profit), no further action is required in this case and this
case is closed.
BY THE COMMISSION,
DANEEN E. REESE, CHAIR