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HomeMy WebLinkAbout493 WatersMr. Thomas E. Waters, Jr, District Attorney Montgomery County Courthouse Norristown, PA 194C4 Re: 85 -110 -C Dear Mr. Waters: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION June 20, 1986 Order No. 493 The State Ethics Commission has received a complaint regarding you and a possible violation of Act 170 of 1978. The Commission has now completed its investigation. The individual allegations, conclusions, and findings on which those conclusions are based are as follows: I. Allegation: That you, a District Attorney in Montgomery County Pennsylvania, violated Section 5(b)(8) and or (9) which requires the reporting of any office, directorship, or employment in any business entity and any financial interest in any legal entity engaged in business for profit when you failed to report your interests in Deep -Run Design, Incorporated. A. Findings: 1. You have served as District Attorney of Montgomery County since Novemher 2.1, 1984, The court appointed you to this position. 2. You filed Statements of Financial Interests dated November 3, 1984 and March 6, 1985. 3. On hoth statements, Item 18 of the statement "office or directorship in any business" and Item 19, "financial interests in any husiness for profit" were completed with the word "none ". 4. Upon leaving the law firm of Waters, Gallager and Trachtman, Norristown, Pennsylvania, in Novemher of 1984, you received 5% of the stock in Deep -Run Design, Incorporated: Mr. Thomas E. Waters, Jr. June 20, 1986 Page 2 5. You provided the following information: a. Deep -Run Design is a Sole Proprietorship. b. The corporation has been seeking financial support but has not received funds to date. c. No stock certificates have been issued by this corporation. 6. You are neither an officer, director, or employee of Deep -Run Design, Incorporated. 7. You state that you were riot aware that you were required to report your interest in this corporation. B. Discussion: As the District Attorney for Montgomery County, you are a public official as that term is defined in the State Ethics Act, 65 P.S. §402. As such, you must comply with the requirements of the State Ethics Act. The State Ethics Act provides that all public employees must file a Statement of Financial Interests by May 1 of each year with the governing authority of the political subdivision in which he serves. This requirement is equally applicable to public officials. See, Kremer v. State Ethics Commission, 56 Pa. Commw. 160, 424 A.2d 968, (1981) At 969. The State Ethics Act further provides that said Statements of Financial Interests must include any office, directorship or employment of any nature whatsoever in any business entity and any financial interest in any legal entity engaged in business for profit. 65 P.,S. §405(b)(8) and (9). In relation to the above, the regulations of the Commission further provide that: §5.15.Financial interests to be disclosed. A public official, public employe )r candidate shall disclose his financial interest and that of his spouse, and minor dependent children in any legal entity engaged in business for profit where such interest exceeds 5.0% of the equity of the business or, if such financial interest is indebtness, equals or exceeds 5.0% of the assets of the business. 51 Pa. Code 5.15. In the instant situation, you have not listed Deep -Run Design as a business entity in which you have a financial interests. You do not, however, hold any office, director, or employment position with that corporation and, therefore, such would not be required to be filed pursuant to Section 5(b)(8) above. In addition to the foregoing, we note that while the State Ethics Act would require the identity of any financial interests in any legal entity engaged in business for profit, the regulations of the Commission have limited that Mr. Thomas E. Waters, Jr. June 20, 1986 Page 3 disclosure requirement to those interests which exceed 5% of the equity of the business entity at fair market value. In the instant situation, our investigation reveals that you do not hold more than 5% of the stock of Deep -Run Design. As such, you would not have been required to file that corporation as an entity in which you hold a financial interests on your statement. In light of the foregoing, we do not believe that there was any violation of the State Ethics Act. C. Conclusion: There was no violation of the State Ethics Act when you failed to list Deep -Run Design as a business entity in which you have an interest in light of the fact that your interest therein does not exceed 5% of the common stock at fair market value of the company. Also, you are not an officer, director, or employee of that corporation, therefore, you would only need list this corporation as a source of income, if in fact, you received an income in excess of $500 from that entity. There is no evidence to indicate that such has occurred. We do note that the Commission may accept and file any information voluntarily supplied that exceeds the requirements of this Act. 65 P.S. §407(4). Our files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 408(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 rel easi ng, di scussi ng or ci rcul ati ng thi s Order. 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. 409(e). By the Commission, 2J. R� ham. )00..+w0tt G. Sieber Pancoast Chai rman