HomeMy WebLinkAbout1062 ZwickIn Re: James Zwick
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
Before: Daneen E. Reese,. Chair
Austin M. Lee, Vice Chair
Rev. Joseph G. Quinn
Boyd E. Wolff
Julius Uehlein
File Docket: 96- 071 -C2; 96-088 -
C2 & 97- 024 -C2
X -ref: Order No. 1062
Date Decided: 9/10/97
Date Mailed: 9/15/97
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 not filed and a hearing was deemed waived. The record is complete.
This adjudication of the State Ethics Commission will be made available as sa
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 Act 9 of 1989,
65 P.S. §408(h). Any person who violates confidentiality of the Ethics Law is guilty
of a misdemeanor subject to a fine of not more than $ 1,000 or imprisonment for not
more than one year, 65 P.S. §409(e). Confidentiality does not preclude discussing this
case with an attorney at law.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 2
I. ALLEGATION:
A.
B.
C.
That James Zwick, a public official /public employee, in his capacity as a
Commissioner for Ross Township, Allegheny County, violated the following
provisions of the State Ethics Act (Act 9 of 1989) when he used the authority
of his office for a private pecuniary benefit of himself by accepting items of
monetary value from individual(s) who had matters pending before the Board of
Commissioners; and when he solicited and accepted items of monetary value,
including a loan, contribution(s) to sponsor a sports team and cash payments
from an individual(s) who had matters pending before the Board of
Commissioners and /or individuals or vendors of the Township and /or when such
was based on an understanding that his official action, vote and /or judgement
would be influenced thereby.
And that James Zwick, a public official in his capacity as a Commissioner
for Ross Township, Allegheny County, violated the following provisions of the
Public Official and Employee Ethics Law (Act 9 of 1989) when he used the
authority of his office for a private pecuniary benefit of himself and /or a
business with which he is associated by soliciting persons (as defined in Act p)
who have matters before the Board of Commissioners to purchase telephorte
systems from him; and /or when he solicited something of monetary value from
persons (as defined in Act 9) having projects pending before the Board of
Commissioners based on his understanding that his vote, official action br
judgment would be influenced thereby.
And that James Zwick, a public official /public employee in his capacity
as a Commissioner for Ross Township, Allegheny County, violated the following
provisions of the State Ethics Act (Act 9 of 1989) when he used the authority
of his office for a private pecuniary benefit by using his position as a Township
Commissioner to obtain funds issued by the Lowries Run Joint Committee, on
which he serves as part of his public position, and converted said funds to his
personal use.
Section 3. Restricted Activities
(a) No public official or public employee shall
engage in conduct that constitutes a conflict of interest. 65
P.S. §403(a).
Section 3. Restricted activities
(c) No public official, public employee or nominee or
candidate for public office shall solicit or accept, anything
of monetary value, including a gift, loan, political
contribution, reward, or promise of future employment
based on any understanding of that public official, public
employee or nominee that the vote, official action, or
judgment of the public official or public employee or
nominee or candidate for public office would be influenced
thereby. 65 P.S. §403(c).
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 3
Section 2. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received
through his holding public office or employment for the
private pecuniary benefit of himself, a member of his
immediate family or a business with which he or a member
of his immediate family is associated. "Conflict" or
"conflict of interest" does not include an action having a de
minimis economic impact or which affects to the same
degree a class consisting of the general public or a subclass
consisting of an industry, occupation or other group which
includes the public official or public employee, a member of
his immediate family or a business with which he or a
member of his immediate family is associated. 65 P.S.
§402.
II. FINDINGS: ,
1. The Investigative Division of the State Ethics Commission received information
regarding James Zwick and a possible violation of the Public Official and
Employee Ethics Law (Act 9 of 1989).
2. Upon review of the said information the Investigative Division initiated a
preliminary inquiry on September 17, 1996, docketed at 96- 071 -C2.
3. The preliminary inquiry regarding 96- 071 -C2 was completed within sixty days.
4. On November 15, 1996, a letter was forwarded to James Zwick by the
Executive Director of the State Ethics Commission informing him that a full:
investigation was being commenced in relation to the allegation delineated in A
above, and docketed at 96- 071 -C2.
a. Said letter was forwarded by certified mail, no. P 281 102 771.
b. The domestic return receipt bore an illegible signature with a delivery
date of November 20, 1996.
5. On February 4, 1997, the Executive Director of the State Ethics Commission
filed an application for a ninety day extension of time to complete the
investigation docketed at 96- 071 -C2.
6. The Commission issued an order on February 20, 1997, granting the ninety day
extension regarding 96- 071 -C2.
7. Periodic notice letters regarding 96- 071 -C2 were forwarded to James Zwick in
accordance with the provisions of the Ethics Law advising him of the general
status of the investigation.
8. On December 2, 1996, the Investigative Division of the State Ethics
Commission initiated a preliminary inquiry into a second allegation (B above) that
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 4
James Zwick had violated provisions of the Public Official and Employee Ethics
Law, docketed at 96- 088 -C2.
9. Said preliminary inquiry regarding 96- 088 -C2 was completed within sixty days.
10. On January 30, 1997, a letter was forwarded to James Zwick by the Executive
Director of the State Ethics Commission informing him that a full investigation
was being commenced in relation to the allegation delineated in allegation B
above, docketed at 96- 088 -C2:
a. Said letter was forwarded by certified mail, no. P 487 031 695.
b. The domestic return receipt bore the signature of J. Zwick, with a
delivery date of February 1, 1997.
11. May 6, 1997, the Executive Director of the State Ethics Commission filed an
application for a ninety day extension of time to complete the investigation
docketed at 96- 088 -C2.
12. The Commission issued an order on May 29, 1997, granting the ninety day
extension regarding 96- 088 -C2.
T3. Periodic notice letters regarding 96- 088 -C2 were forwarded to James Zwick in
accordance with the provisions of the Ethics Law advising him of the general
status of the investigation.
14. On April 10, 1997, the Investigative Division of the State Ethics Commission
initiated a preliminary inquiry into a third allegation (C above) that James Zwick
had violated the provisions of the Public Official. and Employee Ethics Law,
docketed at 97- 024 -C2.
15. Said preliminary inquiry was completed within sixty days regarding 97- 024 -C2.
16. On May 7, 1997, a letter was forwarded to James Zwick by the Executive
Director of the State Ethics Commission informing him that a full investigation
was being commenced in relation to the allegation delineated in C above,
docketed at 97- 024 -C2.
a. Said letter was forwarded by certified mail no. P 487 031 804.
b. The domestic return receipt bore no signature and a delivery date of May
14, 1997.
c. James Zwick authorized the post office to deliver this letter to his
address without signature.
17. Periodic notice letters regarding 97- 024-C2 were forwarded to James Zwick in
accordance with the provisions of the Ethics Law advising him of the general
status of the investigation.
18. The full investigations regarding the three allegations were commenced at the
direction of the Executive Director of the State Ethics Commission.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 5
19. The Investigative Complaint was mailed to the Respondent on July 25, 1997.
20. James Zwick serves as a Ross Township (Allegheny County) Commissioner.
a. He has served in this position since January 1988.
b. Zwick further serves as a Ross Township Representative on the Lowries
Run Operating Committee, which oversees the operation of the Lowries
Run Trunk Line, a sanitary sewage system. (Further information on the
Lowries Run Operating Committee is delineated in Finding # 155 et seq.
infra).
21. James Zwick owns and operates CSC Communication Systems and Cabling.
a. CSC Communication Systems and Cabling was located at 202 Connie
Drive, Pittsburgh, Pennsylvania.
b. This location was also James Zwick's residence.
22. James Zwick previously served as a commissioned sales representative for BC
Communications for approximately one year. BC Communications sells AT&T
telephone equipment.
23. During his one year of employment with BC Communications, Zwick had only
five accounts, four of which had matters considered by the Ross Township
Board of Commissioners.
a. These accounts included:
The Fosnights' Retirement Home (See Findings 25 to 107).
The Greater Pittsburgh Masonic Center. (See Finding 328).
Donatelli's Cemetery Memorials.
The Hampton Inn (See Findings 308 to 326).
24. James Zwick maintains or was responsible for the opening of or has signature
authority for the following bank accounts:
Date Opened Account No. Bank Signator Name of Account
03/16/95 109 -9553 Mellon James J. Zwick Democratic Party of Ross Limited
10/25/95 1661427964 Dollar James J. Zwick James Zwick
11/17/95 1010331369 PNC James J. Zwick James J. Zwick
11/17/95 1010381008 PNC James J. Zwick James J. Zwick
09/06/96 05- 23- 70291 West View James J. Zwick Jim Zwick CSC or
Saving Bethany L. Zwick Beth Zwick
10/25/96 1002833414 PNC Bethany L. Zwick Bethany L. Zwick
James Zwick James Zwick
01/10/97 26862589 National Kimberly J. Weis Buchan Horn Inc.
City James J. Zwick
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 6
Date Opened Account No. Bank Signator
01/31/97 080 -14378 North Side Kim Weis
Jim Zwick
Name of Account
Kim Weis /Jim Zwick
03/05/97 10 0476 7801 PNC Kim Weis Kim Weis D /B /A
Communications and Cabling
The following Findings relate to the Fosnight Retirement Home.
25. The Fosnight Retirement Home located on Gibsonia Road, Gibsonia, Allegheny
County, Pennsylvania, is operated by Timothy and Lynn Fosnight.
a. That home has been in operation since 1986 and has expanded during
the course of the ensuing years.
26. The Fosnights were interested in a further expansion of this business and
proceeded to locate a property at Babcock Boulevard and Cemetery Lane in
Ross Township.
27. The Fosnights entered into an agreement of sale for the property which wOs
contingent upon receiving the approval for a conditional use from the Ross
Township Planning. Commission and Ross Township Board of Commissioners.
a. The Fosnights paid $10,000 as part of the agreement of sale.
b. The expanded business was intended to be an assisted living facility.
c. Also involved in the project were Aaron Fosnight (Timothy's brother) and
Sandra Harvey (Lynn's sister).
28. The Fosnights proceeded to the Ross Township Building Inspector's Office and
received a copy of the Ross Township Regulations so that they could initiate
their application for conditional use.
29. The Fosnights officially submitted their application for a conditional use app'rov aI
during the summer of 1996.
30. The conditional use approval request for the Fosnight Retirement Home was
considered by the Ross Township Planning Commission at the public meeting
on August 22, 1996.
a. A number of questions were raised by Planning Commission . members
during this meeting after which the conditional use approval was
recommended by the commission by a vote of 8 - 0.
31. On September 9, 1996, the Ross Township Board of Commissioners considered
the Fosnight Retirement Home conditional use approval request.
a. The minutes of said meeting indicate that Mr. Buskirk read a letter from
the Planning Commission which recommended approval of the request.
He also reminded the board that this request was strictly for a conditional
use permission to use the property for the purpose of erecting a nursing
home. He indicated that all technical drawings will follow with the site
plan application.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 7
b. Township Commissioner James Zwick posted vigorous opposition to the
board's approval of the conditional use request for the Fosnights.
32. The minutes reflect the following in respect to Zwick's opposition:
a. "Commissioner Zwick expressed numerous concerns and reservations
regarding this request -"
* "The board did not have the proper information from the Planning
Commission regarding this request.
* The township is currently involved in a trilateral agreement with
the county and state to widen Cemetery Lane.
* Funding has been designated to put a traffic signal at the
intersection of Cemetery Lane and Babcock Blvd.
* Meetings have taken place and are continuing with Girty's Run
Sewer Authority, who are potentially looking at the implementatign
of an 8,000 gallon per day retention tank in and around this
particular area.
* Traffic patterns for ingress /egress to this property are at issue.'
* Safety concerns.
* Information regarding this request (a white binder) was distributed
this evening right before the meeting began and did not allow time
for the board's review."
"Commissioner Zwick felt it would be in the best interest of all parties
involved to table this request until the board has time to review all the
necessary information and discuss the issues enumerated this evening
prior to listening to the applicants presentation."
*
"Commissioner Zwick insisted his concerns were valid and felt they
should be addressed before any decisions regarding this property would
be made. He stated that the board, within the process of permitting a
conditional use for a particular piece of property, has the authority to
mandate certain conditions relative to that particular parcel, for that
specific use. He insisted his preference would be to make no rash
decisions /judgments until he has had an opportunity to review the
minutes of the last Planning Commission Meeting which will give specific
detail on exactly what was asked for by the applicant and all comments,
if any, from the Planning Commission."
b. Commissioner Kinross subsequently made a motion to table the
Fosnights' request which motion was seconded by Mr. Zwick. The
motion failed by a vote of 5 - 4 with Commissioner Zwick voting to table
the request.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 8
c. Further discussion ensued regarding the Fosnights' conditional use
approval request.
d. During that discussion, Commissioner Zwick again stated his concerns
as follows:
"Commissioner Zwick once again stated his concerns. He reminded the
board and the applicant that a conditional use goes along with the
property permanently. Conditional use is basically a rezoning of the
property. If that property is sold, the conditional use goes along with the
property. Commissioner Zwick also stated that historically conditional
use and site plan applications are made concurrently and discussed
together at one meeting. The conditional use ordinance itself stipulates
traffic flow as one of the requirements. The applicant has not addressed
this issue under conditional use and has not obtained sign -off from the
county for a curb cut as well. He insisted that numerous issues need to
be resolved /addressed prior to granting conditional use and urged the
board to table this request. He felt this would benefit both parties - give
the board time to gather the necessary information /detail and instruct the
applicant as to exactly what information they would be required to bring
to the table. This will allow for a more fair and equitable decision."
e. Upon a motion by Commissioner Purcell, seconded by Commissioner
Zwick, the board voted to table the request by a vote of 9 - 0.
33. Prior to the September 9, 1996, meeting, the Fosnights' had never met James
Zwick.
34. After the September 9, 1996, meeting, the Fosnights' were invited to attend
a committee meeting of the Board of Commissioners to be held on September
16, 1996.
35. On or about September 12th or 13th prior to the committee meeting, James
Zwick contacted Tim Fosnight and indicated that he would like to meet with
him and his brother Aaron Fosnight at the location of the in question property.
a. The meeting was fixed for September 12th or 13th, 1996, at 10:00 a.m.
36. At the noted time, Aaron Fosnight met Jim Zwick at the location of the
property.
a. Aaron Fosnight and Zwick began walking the property.
b. During this site review, Jim Zwick advised Aaron Fosnight that he could
require them to conduct an involved traffic study which might cost them
as much as $10,000. Zwick also told Aaron Fosnight that he could
require them to pay for the remaining portion of the cost of a traffic Tight
at Babcock Boulevard and Cemetery Lane. Zwick told Fosnight that the
traffic light would probably cost at least $50,000 of which they would
be required to pay one half.
c. Zwick advised Aaron Fosnight that he could tie up their plans requiring
them to expend a substantial amount of funds.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 9
d. Zwick then told Aaron Fosnight that he was interested in several personal
projects and that they (the Fosnights) could help him with the projects.
Zwick stated that he sat on the North Hills Affordable Housing and that
they were putting in a playground at the Benedictine Place. Zwick noted
that he could not force the Fosnights to make a donation to this cause
but he could cause them substantial problems with their development
project.
e. Zwick told Aaron Fosnight that he should not tell anyone about their
conversation.
37. After Zwick's conversation with Aaron Fosnight, he was of the definite opinion
that unless he complied with Zwick's request, the project would be tabled.
a. Zwick made it clear to Fosnight that he would require them to expend
thousands of dollars or he could help them get the project through easily
if they cooperated.
b. Zwick advised Fosnight that he would be able to obtain the votes on tie
board because he had influence through party lines and would be able to
ensure that they would have their project passed.
38. Approximately twenty minutes after Aaron Fosnight and James Zwick began
their conversation, Timothy Fosnight arrived at the site location.
39. Aaron Fosnight asked Mr. Zwick to reiterate what he had already told Aaron
Fosnight.
40. Zwick in substance made the same comments to Timothy Fosnight as he had
to Aaron Fosnight and as delineated in finding no.36 above.
a. Zwick further told Timothy Fosnight that it would be very natural for him
(Zwick) to request a traffic study. He indicated that such would not be'
unusual and no one would question why he was doing such.
b. Zwick advised Timothy Fosnight that he could save him $ 15,000 by
simply requesting that the township use one of the other traffic studies
that had already been completed for the same intersection.
c. Zwick advised Timothy Fosnight that he would be willing to help him
work through the township requirements.
d. Zwick indicated that he could assure the Fosnights that the conditional
use approval request and final site plan would be approved.
41. At the conclusion of the conversation, the Fosnights specifically requested of
Mr. Zwick as to the amount of money that he was seeking for the "donation."
a. Zwick advised that the Masons (another development applicant) had
supplied $ 15,000 for a traffic light and he indicated that it would be fair
to have the Fosnights supply the same amount of money for the project
in which he was interested.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 10
b. The Fosnights agreed to the donation so long as it was openly done.
42. The North Hills Affordable Housing project of which Zwick had advised the
Fosnights ostensibly related to a playground project at Benedictine Place.
a. The Benedictine Sisters are partners with North Hills Affordable Housing
in the Benedictine Place Corporation which provides housing for single
mothers.
b. Jim Zwick sat on the Benedictine Place Corporation Board from its
inception.
c. Jim Zwick also sat on the North Hills Affordable Housing Board of
Directors when that board was merged with the Benedictine Place
Corporation Board.
43. The Fosnights were concerned that if they did not comply with Mr. Zwick's
request their development would not be allowed and they would lose $ 10,000
in deposit money that had been given to the seller of the in question property.
44. The Fosnights proceeded to the committee meeting of the Township Board of
Commissioners on September 16, 1996.
45. During the week of September 16, 1996, the Fosnights also met with the
officials of the Girty's Run Sewer Authority to review the property and to see
if the Authority felt that there were any problems that could develop regarding
sewer taps.
a. The officials of that Authority indicated that they did not foresee any
problems but they would have to apply for sewer taps.
46. Jim Zwick was in attendance at that meeting and indicated that he was on the
board of the Girty's Run Sewer Authority and that the Fosnights should not
about the taps as he would help them through that process.
a. Although Zwick indicated he was a member of the Girty's Run Sewer
Authority Board, such was not true.
47. Zwick indicated that he had reserved twenty sewer taps and that the Fosnights
would not have to worry about that part of the process.
48. The Fosnights believed that James Zwick could have a negative or positive
effect upon their ability to carry out their project depending upon whether or not
they complied with his request for funds.
49. On September 23, 1996, the Ross Township Board of Commissioners, during
a public meeting, again considered the Fosnight Retirement Home request for
conditional use approval.
a. A motion was made by Jim Zwick, seconded by Commissioner Purcell to
remove the item from the table. Said motion passed by a vote of 8 - 0.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 11
b. During the course of this meeting, Commissioner Zwick made the
following statement:
"Commissioner Zwick indicated he met with the applicants at the site
and was comfortable at this point with their request for conditional use.
However, he asked that the applicants state into the record their request
that if for any reason the site plan fails, the conditional use, which may
be granted this evening, be then become void."
c. A motion was made by Commissioner Zwick to approve the request for
a conditional use approval with the condition that if the site plan is
denied, such approval would be void. The motion was seconded by Mr.
Kinross and passed by a vote of 8 - 0 with Jim Zwick voting in the
majority.
50. On or about October 7, 1996, shortly after the township commissioners'
meeting, James Zwick contacted Timothy Fosnight and requested that they
meet at the corner of Babcock Boulevard and Cemetery Lane. Zwick indicated
that he needed a payment at that time.
a. Zwick requested $3,000.
51 As a result, Timothy Fosnight prepared check no. 140 from an account at PNC
Bank, Pittsburgh, Pennsylvania in the name of Timothy D. and Lynn H. Fosnight
in the amount of $3,000.
a. The check was made payable to "CSC" and the memo portion of the
check indicates "donation - rewrite playground fund."
b. The check was dated October 7, 1996.
52. James Zwick advised Timothy Fosnight to make the check payable to CSC.
a. Fosnight was unaware of what CSC was but believed it was part of
North Hills Affordable Housing.
b. Fosnight did not know that CSC was a business owned and operated by
James Zwick.
53. Mr. Zwick advised Mr. Fosnight that the money was going to be used to buy
playground equipment.
54. When the check was returned from the bank to the Fosnights after having been
negotiated, the name "Jim Zwick" had been written beside the letters "CSC"
on the "pay to the order of line."
a. Tim Fosnight did not write Jim Zwick's name on this check.
55. This check was deposited into account no. 05 -23- 70291, at the West View
Savings Bank, in the name of Jim Zwick CSC, or Beth Zwick on October 8,
1996.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 12
a. This account was a personal account unrelated to North Hills Affordable
Housing.
b. This account was used to pay personal debts of Jim Zwick including but
not limited to utilities, mortgages, auto loans, insurance and cable
television.
c. Jim Zwick received checks totaling $14,300 from this account.
d. Checks totaling $9,254.50 from this account were cashed.
e. No checks were written from this account to the Benedictine Place or
North Hills Affordable Housing.
56. At a meeting of the Ross Township Planning Commission on October 24, 1996,
the final site plan approval for the Fosnight Retirement Home was considered.
a. During the course of the October 24th public meeting, the members of
the Planning Commission asked a number of in -depth questions regarding
the final site plan. These questions were delineated in the minutes of the
commission's meeting for that date.
b. After completion of the consideration by the Planning Commission
members, a final site plan approval was recommended pending and
subject to compliance by the Fosnights with the list of conditions as
developed at a site visit scheduled for October 26, 1996, by the Planning
Commission members.
c. The vote passed unanimously, 7 - 0.
57. The site visit by the Planning Commission members resulted in a number ;o
conditions which included the following:
a. Submittal of architect drawings.
b. Lighting plan.
c. Plans showing tie -in of gutters to storm drains.
d. Plan showing fireplugs.
e. Plan showing handicapped spaces.
f. Revision of landscaping regarding screening of detention ponds.
g. Agreement to use existing driveway during construction only.
h. Agreement to cooperate with the township on the Rails to Trails
Harmony Short line Development.
I. Final drawings to be reviewed by five Planning Commission members
prior to November 12, 1996, Board of Township Commissioner's
meeting.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 13
58. On or about October 24, 1996, the same day of the Planning Commission's
review of the final site plan for the Fosnight Development, Zwick again
contacted Timothy Fosnight and indicated that he needed additional funds in the
amount of $ 1,500 regarding the project.
a. Zwick advised that he had to go pick up some equipment quickly to do
some work for the center.
59. Timothy Fosnight issued check no. 10514 from the Fosnight Retirement Home,
Incorporated account at the Mars National Bank in the amount of $1,500.
a. Said check was made payable to cash.
b. The check was endorsed by J. Zwick.
c. The check was made payable to cash at the request of James Zwick.
d. The memo portion of the check reads, donation Benedictine Sisters c/o
Night of the Races.
e. Timothy Fosnight did not make the notation "c /o Night of the Races."/
f. This notation was made subsequent to Fosnights' issuance of the check.
g. Under the endorsement of J. Zwick on the reverse side of the check is
an account no. 523070291 [sic].
60. That account is a personal account in the name of Jim Zwick CSC, or Beth
Zwick.
a. The check was deposited on October 25, 1996.
61. This check was deposited into account no. 05 -23- 70291, at the West View'.
Savings Bank, in the name of Jim Zwick CSC, or Beth Zwick on October 25,
1996.
a. This account was a personal account unrelated to North Hills Affordable
Housing.
b. This account was used to pay personal debts of Jim Zwick including but
not limited to utilities, mortgages, auto loans, insurance and cable
television.
c. Jim Zwick received checks totaling $14,300 from this account.
d. Checks totaling $9,254.50 from this account were cashed.
e. No checks were written from this account to the Benedictine Place or
North Hills Affordable Housing.
62. On November 12, 1996, the Ross Township Board of Commissioners, during
a public meeting, considered the final site plan approval for the Fosnight
Retirement Home.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 14
a. A letter from the Planning Commission recommending the approval of the
request subject to certain conditions was read.
b. Confirmation was noted that all the conditions have been met.
c. After a presentation by Tim Fosnight, a motion was made by
Commissioner Zwick and seconded by Commissioner Lawlor to approve
the final site plan. The motion passed by a vote of 5 - 3 with Jim Zwick
not voting.
63. After return of the cancelled checks to the Fosnights, Timothy Fosnight became
concerned that the payments he was making were not going to North Hills
Affordable Housing. As such, he requested to have a meeting with the
Executive Director of that entity.
64. On December 9, 1996, Tim Fosnight, Lynn Fosnight, Sandy Harvey and Aaron
Fosnight met with the Executive Director, Judy Eakin, of North Hills Affordable
Housing.
65. The Fosnights were advised that Zwick was affiliated with that organization but
that their funds were not going for the use of a playground facility but rather for
telephone equipment.
a. The Fosnights were advised that the center had problems with their
telephone and computer systems and they needed to tie all of these
systems together. In order to do that, they were going to obtain new
equipment and run new cable lines.
66. The Fosnights were advised that their money was going to be used to buy the
telephone equipment.
67. Subsequent to the Fosnights` meeting with the Director of North Hills Affordable
Housing, Timothy Fosnight issued check, no. 10760 from the Fosnight,
Retirement Home, Incorporated account at the Mars National Bank in the
amount of $2,500 to North Hills Affordable Housing.
a. The check is endorsed on the back for deposit only to the North Hills
Affordable Housing Task Force Incorporated account at the Northside
Deposit Bank.
68. On December 23, 1996, Judy Eakin, Executive Director of North Hills
Affordable Housing, issued a receipt and thank you for the donation of $2,500
by Timothy Fosnight.
a. The Fosnights never received a thank you note or receipt for the prior
donations that were supposedly given to North Hills Affordable Housing.
69. Jim Zwick had specifically contacted Timothy Fosnight and requested the
$2,500 so that they could continue the work on the cable and phone system.
70. Jim Zwick regularly called the Fosnights in order to remind them that they had
agreed to make contributions to projects in which he had an interest, and that
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 15
he had agreed to assist them in making sure that their proposals were approved
by the township.
a. Zwick, during these conversations, advised the Fosnights that he was
keeping his part of the bargain and that they must continue to do their
part.
71. On January 3, 1997, Lynn Fosnight issued check no. 226 from the account of
Timothy D. and Lynn H. Fosnight's special account, the Mars National Bank in
the amount of $3,500 to the North Hills Affordable Housing. The memo portion
of the check indicates donation.
a. The reverse side of the check bears an endorsement for deposit only to
the North Hills Affordable Housing Task Force Incorporated account at
the Northside Deposit Bank.
72. By way of letter of January 7, 1997, Judy Eakin, Executive Director of North
Hills Affordable Housing, forwarded a thank you and receipt to the Fosnights for
the donation of $3,500. ,
73. Jim Zwick had contacted Timothy Fosnight prior to the issuance of this check
and specifically requested funds in the amount of $3,500.
a. Zwick indicated to Fosnight that he needed the funds to pick up
equipment.
b. Zwick proceeded to Fosnight's house where he picked up this check.
74. James Zwick has continued to contact the Fosnights requesting that additional
funds be paid by them.
a. The Fosnights have to date, not paid any additional funds.
75. The North Hills Affordable Housing Board, prior to November 1996, had
discussed the acquisition of a telephone system.
76. Jim Zwick had advised Judy Eakin that the Fosnights were going to donate a
telephone system for North Hills Affordable Housing.
a. She was of the understanding from Zwick that the Fosnights would
actually supply the equipment and that North Hills Affordable Housing
would have to pay for the cabling and installation.
b. She was advised that the donation would be worth about $11,000.
c. Eakin was not aware of the fact that the donation was made by the
Fosnights only after Jim Zwick had made such donation a condition of
obtaining township approval of the retirement home.
77. North Hills Affordable Housing was interested in obtaining additional funding
from a corporate benefactor in order to cover the costs of the cabling and
installation for the telephone system.
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Page 16
a. North Hills Affordable Housing believed that the Fosnights would be
donating the actual equipment.
78. As a result, North Hills Affordable Housing initiated the preparation of a grant
application to be submitted to a corporate benefactor for the noted purposes.
79. As part of the grant application, North Hills Affordable Housing found it
necessary to provide information regarding the costs to complete the telephone
system acquisition and installation.
a. As such, North Hills Affordable Housing needed to obtain a proposal that
outlined and delineated the costs of the equipment, cabling and
installation.
80. In light of the fact that Jim Zwick was coordinating the purported donation of
the telephone equipment from the Fosnights, the board requested that Judy
Eakin obtain a proposal from Zwick delineating the necessary information.
81. As such, Jim Zwick submitted a proposal to North Hills Affordable Housing to
complete the cabling and installation work for the telephone system.
a. This proposal was submitted around November 30, 1996.
b. The proposal was for $13,810.50 [sic) with $2,655.50 for the cabling
and installation and $12,155.00 for the purchase of the equipment.
82. Judy Eakin subsequently met with the Fosnights and, in fact, later received two
donations from them in the form of checks totalling $6,000 (See Findings 67
and 71)
a. Eakin was going to approach the Fosnights for the remainder of the
funds.
83. Eakin was unaware that the Fosnights had paid an additional $4,500 to Jim
Zwick under the guise of being a donation to North Hills Affordable Housing.
a. North Hills Affordable Housing never received these funds.
84. Based upon the representations made by Zwick to North Hills Affordable
Housing and his purported role as intermediary between the Fosnights, North
Hills Affordable Housing and the various vendors that would provide the
telephone equipment and perform the cabling and installation, Jim Zwick was
given funds in order to secure and complete the installation of the telephone
system.
85. Zwick was issued checks as follows by the North Hills Affordable Housing.
CHECK TO CHECK # AMOUNT DAT
Jim Zwick 3817 $2,500.00 12/17/96
Jim Zwick 3839 $3,500.00 01/03/97
Jim Zwick 3893 $5,410.50 02/12/97
Jim Zwick 3902 $2,330.00 02/26/97
Zwick. 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 17
CHECK TO
Jim Zwick Communication
Systems
Jim Zwick Communication
Systems
CHECK # AMOUNT
3922 $5,410.50
3923 $2,330.00
ATE
03/10/97
03/10/97
86. The total amount of checks issued to Jim Zwick by North Hills Affordable
Housing for the telephone system was $21,480.
87. The Fosnights had donated funds pursuant to Jim Zwick's solicitation for the
North Hills Affordable Housing telephone system as previously noted in the
following amounts:
NAME CHECK #
Fosnight Retirement 10760
Tim Fosnight
DONATION
AMOUNT DATE NOTES
$2,500.00 12/ 17/96 Telecommunications
226 $3,500.00 01/03/97 Telecommunications
r
a. James Zwick had personally received these checks and delivered then
to Eakin.
88. Upon delivery by Zwick, the funds donated by the Fosnights on December 17,
1996, and January 3, 1997, were immediately turned over to him by North Hills
Affordable Housing, specifically upon his request.
a. These funds were needed according to Zwick in order to purchase
equipment for the telephone system.
89. On or about March 10, 1997, Jim Zwick contacted Judy Eakin and advised her
that he was unable to utilize the last two payments made by North Hills
Affordable Housing on February 12, 1996, and February 26, 1996 (See Finding',
No. 851 because they were made out to him personally rather than fo Jim
Zwick's Communications Systems.
90. Zwick advised Eakin that he would return the funds to her and specifically
requested that a check be issued to him in the amount of $7,741.00 made
payable to Jim Zwick Communication systems.
91. As a result of his specific request, North Hills Affordable Housing issued two
checks to Zwick on March 10, 1997 (checks no. 3922 and 3923 totalling
$7,741.00 (sic]). See Finding No. 85 above.
92. At that same time, Jim Zwick issued a check to North Hills Affordable Housing
in an equal amount from an account at PNC Bank, account no. 1004767801
dated March 10, 1997. The check bore the signature of Kim Weis.
93. The account from which this check was issued was opened by Kimberly Weis,
a friend of Jim Zwick, at the specific instruction and direction of Jim Zwick.
a. Zwick advised Weis as to the name of the account.
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Page 18
b. The address for this account was a post office box leased by Weis.
94. Although Kim Weis' name appears as the signatory on the check that was
issued to North Hills Affordable Housing, she did not sign this check.
a. Her name was signed by some one else.
b. Weis gave no one authorization to sign her name on this account.
95. The check made payable to North Hills Affordable Housing and issued by Jim
Zwick was refused payment by the bank due to an irregular signature.
96. As a result, North Hills Affordable Housing did not receive its funds. North Hills
Affordable Housing paid a total amount of $21,481.00 for a phone system for
which they were only supposed to pay $14,810.50.
a. $6,000 of these funds originated from the Fosnights as a result of
Zwick's solicitation.
97. Two of the checks issued by North Hills Affordable Housing, Incorporated io
Jim Zwick Communication Systems, were deposited into the account opened
by Kimberly Weis. These checks were check no. 3922 in the amount of
$5,410.50 dated March 10, 1997, and check no. 3923 in the amount of
$2,330.00 dated March 10, 1997.
a. These were the replacement checks requested by Zwick as delineated in
finding no. 91 above.
98. The handwriting on a majority of the checks issued from this account is the
handwriting of Jim Zwick.
99. In addition to the foregoing, James Zwick sold telephone equipment to the
Fosnights for use in their business enterprise.
100 Sometime after the commissioners meetings on September 9, 1996 and
October 22, 1996, Timothy Fosnight had contacted Zwick regarding the
potential purchase of a cordless telephone.
a. Fosnight had learned that Zwick dealt in telephone systems during the
site review meeting that took place on or about September 12th or 13th.
b. The Fosnights needed an additional cordless telephone that would adapt
to their system at the retirement facility.
101. As a result of this contact, James Zwick sold the Fosnight Retirement Home a
cordless telephone and accessories for a total cost of $549.92.
a. Zwick sold this phone through BC Communications with whom he was
employed at that time.
102. At the time that Zwick sold this telephone to the Fosnight Retirement Home, he
had actively participated in the Township Board of Commissioners Review of
the Fosnights conditional use approval request.
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Page 19
103. James Zwick further advised the Fosnights that he was interested in submitting
a proposal to sell the Fosnights a telephone system for the nursing home that
they were seeking to build in Ross Township.
a. Zwick originally told ; Fosnight of this interest sometime after the
November vote on the final site plan approval.
b. Zwick subsequently contacted the Fosnights during the week of February
10, 1997, and inquired further as to whether they had received the plans
for the completion of their nursing home as he was interested in bidding
on the installation of the telephone system.
104. Zwick continued to contact the Fosnights on a regular basis thereafter regarding
this matter.
105. The funds James Zwick solicited from Timothy and Aaron Fosnight and
deposited into his West View Savings Bank account (account no. 05 -023-
70291) totaling $4,500 were used for personal purposes.
106. James Zwick solicited an additional $6,000 from the Fosnights that was
deposited into the North Hills Affordable Housing bank account.
a. These funds were subsequently given to Jim Zwick.
107. The $10,500 that James Zwick solicited from the Fosnights was solicited and
received based upon James Zwick's specific understanding that his official
action, judgement and decision, regarding the township's consideration of the
Fosnight Retirement Home, would be influenced thereby.
The following Findings relate to the Coppola Day Care Center.
108. In early 1996, Dr. Matthew Coppola and his wife, Carmela, initiated the process
to open a day care center out of their residence.
a. Their residence was located at 7760 Rochester Road, Ross Township,
Allegheny County.
109. On March 14, 1996, as part of the process to initiate the Coppola Day Care
Center, the Ross Township Zoning Hearing Board approved a variance
recommending approval for Dr. Coppola to operate the day care facility with
fifty child care spaces plus additional room for administrative personnel.
1 10. On April 25, 1996, the Ross Township Planning Commission considered the
application of Matthew and Carmela Coppola requesting a conditional use to
operate the day care facility on the above noted property.
a. Dr. Coppola and his Counsel, William Milnes, made presentations to the
members of the Planning Commission regarding the proposed day care
facility.
b. The Planning Commission thereafter voted upon a motion to approve the
request for the conditional use approval to operate the day care facility
on the noted property. The vote passed unanimously by a vote of 8 - 0.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 20
111. On May 13, 1996, at a public meeting, the Ross Township Board of
Commissioners considered the request of Matthew and Carmela Coppola for a
conditional use approval regarding the day care facility.
a. The background of ; the Coppola request was outlined for the
commissioners to consider.
b. Dr. Coppola outlined the nature of the facility that he was intending to
establish.
c. Commissioner Zwick questioned whether or not the Coppolas would
require additional taps from the Sewer Authority.
d. Commissioners Weigand and Purcell expressed concern over ingress and
egress to the property.
e. Commissioner Purcell moved to table the request to allow for additional
time so that the concerns expressed could be investigated. The motion
included a final vote date of May 28, 1996, and was seconded by
Commissioner Weigand. The motion passed 8 - 1 with Commissioner
Raida voting no.
1 12. After the request for conditional use approval was tabled by the Board of
Commissioners, Dr. Coppola contacted his associate, Don Pohl, in order to
discuss the situation.
a. Pohl advised Coppola to contact Commissioner Zwick to see if Coppola
could get a better understanding of exactly what the Board of
Commissioners needed in order for the proposal to be successfully
considered.
113. Shortly thereafter on May 17, 1996 and May 20, 1996, Dr. Coppola and Jim
Zwick were in contact and Coppola suggested that they meet to further discuss
what the Board of Commissioners needed in order to consider the day care
facility.
a. Coppola suggested that he buy Mr. Zwick lunch, during which they could
discuss the issues.
b. Coppola was to meet Zwick at the Rose Valley Personal Care Home, a
facility owned by Coppola.
1 14. On May 22, 1996, Zwick met Coppola at Rose Valley where Zwick had been
given a tour by an employee of that facility.
a. Zwick and Coppola then left in separate vehicles and drove to Coppola's
office.
b. Zwick and Coppola then drove to a local restaurant for lunch.
1 15. During the course of lunch, Zwick and Coppola discussed various aspects of the
day care facility.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 21
a. Zwick advised Coppola that he believed the day care facility was a good
project and much needed.
b. Zwick advised Coppola that the main opponent to his project was Kim
Weigand.
116. Jim Zwick paid for lunch.
117. During the drive back from the restaurant, Jim Zwick asked Dr. Coppola if he
would be interested in sponsoring a basketball team for a summer league that
was operated by Zwick.
a. Dr. Coppola indicated that he would be interested in doing such.
1 18. Zwick and Coppola again stopped at the Rose Valley facility.
119. Zwick and Coppola proceeded to drive back to Coppola's office.
a. While there they continued to discuss the day care project arid
Commissioner Zwick gave advice to Coppola regarding the issues that
needed to be addressed for the Board of Commissioners to successfully
consider the proposal.
b. Zwick stressed the ingress /egress, visibility and sewer taps.
120. Dr. Coppola believed that Jim Zwick was involved with the Sewer Authority and
would be important for him in getting the sewer taps approved if necessary.
121. After the conversation at Dr. Coppola's office, Jim Zwick was preparing to
leave when the issue of the basketball league arose.
a. Coppola instructed his office manager, Dana Sandrus, to prepare a check
for Mr. Zwick as a sponsorship fee for a basketball team in Jim Zwick's',
league.
122. Coppola then proceeded back into his inner - office while his office manager
prepared the check.
a. Dana Sandrus asked Mr. Zwick the amount of money for which the check
should be prepared and he indicated that it was for $3,500.
123. As a result of Mr. Zwick's request, Sandrus prepared and issued check no.
1203 in the amount of $3,500, payable to Jim Zwick.
a. The check was written from the account of Matthew J. Coppola, M.D.
at the Brentwood Savings Bank, Pittsburgh, Pennsylvania.
b. The check was dated May 21, 1996.
c. The notation at the bottom of the check indicates "summer basketball
league."
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 22
124. The check in the amount of $3,500 was endorsed by Jim Zwick and cashed
two days after it was issued.
125. Dr. Coppola was unaware that Jim Zwick was requesting $3,500.
a. Coppola believed that Zwick was going to request approximately two or
three hundred dollars for sponsoring a basketball team.
b. Coppola's expectation was based upon his past experiences in
sponsoring other types of sporting teams.
c. Coppola learned of the actual amount of the check that had been issued
from Dana Sandrus that evening sometime after Zwick had left the office.
126. Zwick and Coppola had never met prior to the date of their luncheon
engagement.
127. Jim Zwick solicited the $3,500 donation from Coppola eight days after Zwick
had voted to table Coppola's day care facility conditional use approval request.
128. After the meeting with Zwick, Coppola met with his attorney and architect in
order to prepare for the next scheduled Ross Township Board of
Commissioners' Meeting.
129. On May 28, 1996, the day of the Ross Township Commissioners meeting,
James Zwick contacted Commissioner Kimberly Weigand at her place of
employment.
a. Zwick called on behalf of the Coppola Day Care Center and to seek her
support therefore.
b. Zwick expressed concern that Weigand would sway others to vote
against Coppola.
130. During the day of May 28, 1996, Zwick also contacted Coppola.
a. Zwick wanted a medical appointment for the next day.
131. On May 28, 1996, at a public meeting of the Ross Township Board of
Commissioners, the conditional use request of Dr. Coppola was considered by
the Board of Commissioners.
a. Upon a motion by Commissioner Ferraro, seconded by Commissioner
Purcell and a vote of 8 - 0, the issue was removed from the table.
b. Commissioner Zwick was not present at this time.
132. During the meeting, Commissioner Weigand reported upon her review of the
proposed day care facility location.
a. Her report included measurements as well as a traffic survey of the area.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 23
133. Dr. Coppola advised that he had learned he would need an additional sewer tap
for the proposed day care facility and indicated he had contacted the proper
authorities to initiate the approval thereof.
134. Commissioner Zwick arrived during the course of the commission's
consideration of the day care facility proposal. Comments attributed to
Commissioner Zwick as per the minutes of the May 28, 1996, Ross Township
Board of Commissioner meeting are as follows:
"Commissioner Zwick commented on a recent visit he made to Dr. Coppola's
existing facility, an old age home, located on Rochester Road. He was very
impressed with the manor in which the facility was run, the staff and the
comfort level expressed by the elderly residing there. The setting is very scenic
and serene. If this was any indication of how Dr. Coppola operates a facility,
the Board can rest comfortably."
135. On a motion made by Jim Zwick, seconded by Commissioner Raida, the board
approved the conditional use application for the Coppola Day Care Facility.
a. The vote was 8 - 1 with Commissioner Weigand voting in the negative.
b. Zwick voted in favor of the motion.
136. The meeting of the Ross Township Board of Commissioners during which the
Coppola Day Care facility was considered and approved occurred six days after
Commissioner Jim Zwick solicited the $3,500 donation from Dr. Coppola.
137. On May 28, 1996, Jim Zwick had contacted Dr. Coppola in order to make an
appointment for a treatment of a pulled groin muscle.
a. The appointment was made for the next day, May 29, 1996.
b. Zwick had never been a patient of Dr. Coppola prior to May 1996.,
c. This contact was on the same day as the Ross Township Commission
Meeting during which Coppola's proposal was considered.
138. After the completion of the examination on May 29th, Zwick commented to
Coppola that his sister was getting married and that he needed money because
his father could not afford to give her a wedding.
a. Zwick advised Coppola that he had an annuity that was maturing and
valued at $20,000.
b. Zwick specifically requested that Coppola loan him funds in order to help
him with his sister's wedding and Zwick would repay Coppola within
thirty days as soon as his annuity matured.
c. Coppola initially advised Zwick that he could not provide that kind of
money to Zwick. After Zwick persisted, Coppola agreed to provide him
funds in the amount of $10,000 for use in relation to Zwick's sister's
wedding.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 24
139. As a result of Zwick's request, a check was issued on May 29, 1996, by Dana
R. Sandrus, Coppola's office manager, to Jim Zwick in the amount of $5,000.
a. That check, no. 1209 was drawn on the account of Matthew J. Coppola,
M.D. at the Brentwood Savings Bank.
b. The memo portion of the check indicates "advance."
c. Check no. 1209 identified above, was cashed on May 30, 1996, at the
Perry Office of Mellon Bank in Pittsburgh, Pennsylvania. That check was
endorsed by Jim Zwick and Carl Zotter.
140. Jim Zwick solicited these funds from Dr. Coppola, and the first check was
issued, one day after Zwick, in his position as a Ross Township Commissioner,
made the motion to approve Coppola's day care facility and voted in favor
thereof.
141. Records of Dr. Coppola indicate a telephone call from Jim Zwick on May 31,
1996.
142. On June 1, 1996, a second check in the amount of $5,000 was issued to Jim
Zwick from the same account as identified in the previous Finding.
a. That check, no. 1213 was signed by Dana R. Sandrus, the office
manager for Dr. Coppola, and also indicated in the memo portion "loan."
b. Check no. 1213 was cashed on June 3, 1996, at the same location of
Mellon Bank as previously identified.
c. That check was also endorsed by Jim Zwick and Carl Zotter.
143. This check was issued four days after Zwick made the motion and cast his vote
in favor of Dr. Coppola's day care facility as previously noted.
144. Dr. Coppola and James Zwick executed a document evidencing the loan dated
May 29, 1996.
a. Pursuant to this document which consisted of two sentences, Coppola
agreed to advance Zwick an amount of $10,000 with an initial
installment of $5,000 provided on the date of the document, May 29,
1996.
b. The document indicates that the advance is to be paid back in a timely
fashion (6 -10 weeks).
c. The document is executed by Coppola, Zwick and Dana Sandrus,
Coppola's office manager.
145. The loan agreement between Coppola and Zwick did not provide for the
payment of any interest or other fee in consideration thereof by Zwick.
146. Jim Zwick and Dr. Coppola had no previous social or business relationship.
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Page 25
a. Dr. Coppola had never lent Jim Zwick any funds prior to the request for
$ 10,000.
b. Jim Zwick had not been a patient of Dr. Coppola prior to the solicitation
and receipt of funds or after such.
c. Jim Zwick has never paid for any of the services rendered by Coppola.
147. Although the loan agreement indicated that Zwick would pay Coppola within six
to ten weeks, Zwick failed to comply with the time frame noted therein.
a. On August 11, 1996, following a softball game, Coppola confided in one
of his softball teammates that he had been approached by Zwick and, in
fact, provided a $10,000 loan as noted above. Coppola further advised
that he had not received the return payment as agreed.
b. Coppola had called Zwick several times prior to August 11, 1996, in an
attempt to obtain his funds.
148. On September 23, 1996, a representative of the State Ethics Commission
contacted Dr. Coppola to arrange to interview Coppola in relation to his dealings
with Ross Township Commissioner, Jim Zwick.
a. The interview was scheduled for October 2, 1996.
149. On October 2, 1996, the day of the scheduled interview, Jim Zwick issued a
check in the amount of $5,000 payable to Dr. Matthew Coppola.
a. That check, no. 134, was written on the account of Jim Zwick, CSC "at
the West View Savings Bank.
b. The check indicated in the memo section, payment 'A.
150. On October 14, 1996, (after the interview with representatives of the State
Ethics Commission) James Zwick issued a check in the amount of $5,000
payable to Dr. Matthew Coppola.
a. The check was written from the account of Jim Zwick, CSC at West
View Savings Bank.
b. The check no. 174 was in the amount of $5,000.
c. The memo section of the check indicated payment 2 of 2.
d. This check could not be negotiated as the account did not have sufficient
funds.
151. James Zwick eventually paid Dr. Coppola the remaining funds in cash on three
occasions between October 22 -29, 1996.
a. The $10,000 was repaid by Jim Zwick to Dr. Coppola after he learned
of the State Ethics Commission investigation.
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Page 26
152. James Zwick solicited funds from Dr. Coppola at a time when James Zwick was
actively participating in the township's consideration of a project for which Dr.
Coppola needed township approval.
153. James Zwick solicited funds from Dr. Coppola on days and at times that were
close in proximity to the dates that James Zwick participated in the Township's
review of Dr. Coppola's project.
154. The $13,500 that James Zwick solicited from Dr. Coppola was solicited and
received based upon James Zwick's specific understanding that his official
action, judgement, and decision regarding the Township's consideration of the
Coppola Day Care Facility would be influenced thereby.
The following Findings relate to the Lowries Run Joint Operating Committee.
155. The Lowries Run Joint Operating Committee is comprised of representatives
from the McCandless Township Sanitary Authority and Ross Township.
a. The Operating Committee was formed by written agreement in July,
1995, for the purpose of operating the section of the Lowries Run
Sewage Trunk Line located from manhole no. 1 through manhole no. 74.
b. This section of the trunk line is approximately 2,800 feet in length and
is owned jointly by Ross and McCandless Townships.
156. The Operating Committee is comprised of representatives from both Ross
Township and the McCandless Township Sanitary Authority.
a. In 1996 and 1997, Ross Township representatives to the Joint Operating
Committee were James Zwick and Kim Weigand.
b. Ross Township manager, Thomas Lavorini, and solicitor, William Gates,
also attended the Operating Committee meetings.
157. James Zwick specifically served on the Operating Committee as part of his
official position as a Ross Township commissioner.
158. Each of the governing municipalities approves the operating budget for the
Lowries Run Joint Operating Committee.
a. The committee can spend money which is approved in the budget but
may not expend additional funds without the approval of each appointing
authority.
159. The operating committee maintains a checking account at the Pittsburgh
National Bank.
a. The account is titled "Ross Township, McCandless Township Sanitary
Authority, Lowries Run Joint Sewer Fund."
160. All checks issued by the Lowries Run Joint Operating Committee representing
the expenditure of funds by the committee allowed for four signatures.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 27
a. Prior to November, 1996, Ross Township Manager, Thomas Lavorini,
regularly signed checks on behalf of Ross Township.
b. James Zwick and Kimberly Weigand did not regularly sign checks.
161 In November, 1996, James" Zwick advised MTSA Business Manager, John
Flaherty, that from that time forward, checks issued from the Lowries Run Joint
Sewer Fund account, required the signatures of the four committee members.
a. James Zwick and Kimberly Weigand were the Ross Township
Representatives.
b. Thomas Lavorini was not officially appointed to the committee as a Ross
Representative.
162. Flaherty believed that the decision to have all four committee members sign
checks had been decided by the committee and thus acted on Zwick's direction.
a. Flaherty did not attend committee meetings.
b. Flaherty received no direction about the change in the check signing
procedure from the other committee members.
163. The other three members of the Lowries Run Joint Operating Committee were
unaware of the change in the check signing procedure that had been initiated
by Zwick.
164. After the formation of the Lowries Run Joint Operating Committee, the process
was initiated for the selection of a consulting engineer.
a. Each appointing authority made three recommendations for consulting
engineering firms.
165. One of the applicants for the consulting engineering position was Buchart-Dorn,
Incorporated.
166. Buchart-Horn, Incorporated was the recommendation of the Ross Township
representatives to the Operating Committee.
a. James Zwick was adamantly in favor of the selection of Buchart-Horn as
the Operating Committee's consulting engineer.
b. The other committee members deferred to Zwick's choice even though
they wanted another engineering company.
167. On October 30, 1995, Buchart-Horn, Incorporated was selected as the
consulting engineer for the Lowries Run Operating Committee.
168. Payments to Buchart-Horn, Incorporated for services rendered were made in
accordance with the check issuing policies established by the Joint Operating
Committee as previously noted herein.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 28
169. In January of 1997, Zwick contacted Diane Vesley, an engineer project manager
for Buchart-Horn, Incorporated, and advised her that the operating committee
had set up new procedures for making payments to Buchart-Horn.
a. Zwick advised her that there were questions as to expenses and the
sharing of expenses by the two townships. As a result the members of
the committee were going to take a more active role in reviewing and
approving payments.
b. Zwick advised Vesley that she should no longer send her progress reports
and invoices directly to the operating committee as she had done in the
past. Zwick advised her that all progress reports, letters and invoices
should be mailed to Zwick before being presented at the meeting.
c. Zwick would then obtain the check for payment to Buchart-Horn and
deliver it to Al Kozel in Buchart- Horn's Pittsburgh office.
170. Although Zwick advised Vesley that this policy had been implemented by the
operating committee, such in fact never occurred.
a. The operating committee never authorized a change in payment
procedures for Buchart-Horn.
b. The operating committee members were unaware that Zwick was
obtaining invoices from Buchart-Horn prior to being presented at the
operating committee's meetings for payment.
c. Zwick used his official position to redirect the billing process.
171. Kim Weigand, Ross Township representative, failed to attend several meetings
because [of] her work schedule.
172. James Zwick offered to take checks that required Weigand's signature to her
after the other committee members had signed such checks.
a. Zwick was required to return a duplicate of the check at the next
committee meeting.
b. This process was utilized during meetings when Kim Weigand was unable
to attend and thus unable to sign checks that had to be issued.
c. This process was initiated subsequent to Zwick's insistence that only
committee members sign checks (see Findings 160 -163).
d. Zwick had used his official position to change the committee's check
issuance procedures.
173. On January 7, 1997, the Operating Committee issued a check to Buchart-Horn,
Incorporated in the amount of $4,595.00.
a. That check was written from the account in the name of Ross Township,
McCandless Township Sanitary Authority, Lowries Run Joint Sewer Fund
at the Pittsburgh National Bank in the above referenced amount.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 29
b. The check bears the signatures of Operating Committee Members, James
Zwick, Kim Weigand (representing Ross Township) and John Murphy and
William Youngblood (representing MTSA).
174. The check is endorsed on the back by Buchart-Horn, Incorporated, Robert Weis
and Kimberly J. Weis.
175. James Zwick had taken the check identified in Finding No.173 above from the
Lowries Run Joint Operating Committee in order to obtain the signature of Kim
Weigand thereon. Jim Zwick was to deliver the check to Buchart-Horn,
Incorporated for work performed for the Lowries Run Joint Operating
Committee.
176. Although the check issued by the Operating Committee to Buchart-Horn
identified in Finding No.173 above bears a signature for Kimberly Weigand,
Weigand, in fact, never signed this check.
177. Kimberly Weigand did not sign check no. 147.
a. Someone other than Weigand signed her name on that check so the
check would have the required four signatures.
b. James Zwick was the only individual who had possession of this check
prior to the insertion of a signature for Kimberly Weigand.
178. The check from the Lowries Run Joint Operating fund identified in Finding
No.173 above was deposited into a bank account in the name of Buchart-Horn,
Incorporated, account no. 268262589 at the National City Bank of
Pennsylvania.
a. The check was deposited into said account in its entirety on January 10,
1997.
179. The account identified in Finding No. 178 above in the name of Buchart- l4orn,
Incorporated is not an official bank account of the consulting engineering film
of Buchart-Horn, Incorporated.
180. The account in the name of Buchart-Horn, Incorporated no. 268262589 at the
National City Bank of Pennsylvania was opened on January 10, 1997.
a. The account was opened in the name of Buchart-Horn, Incorporated and
identifies Kimberly Weis, President, and James J. Zwick as signer.
181. The $4,595.00 check from the Lowries Run Joint Operating Sewer fund was
utilized to open up the above identified account.
a. Said account did not exist prior to the deposit of that check.
182. This account was opened by Kim Weis, a friend of Jim Zwick.
a. Weis opened the account specifically at the direction of Jim Zwick.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 30
183. Zwick had advised Weis that because of certain financial problems he was
having, he was unable to personally open up this bank account.
a. Zwick therefore asked Weis to go to the bank and to open up an account
for him.
184. Zwick provided Weis with the name to be used; Buchart-Horn, Incorporated.
185. Zwick specifically advised Weis that she was to open the account in the name
of Buchart-Horn, Incorporated with her having signature authority.
a. Zwick specifically advised Weis that he did not want his name to show
or be associated with this account. Zwick proceeded to take Weis to the
bank and waited in the car while she opened the account.
186. Although Zwick had specifically instructed Weis not to associate his name with
this account, she disregarded that instruction and listed his name as a signer.
187. At the time that she opened this account, Zwick provided Weis with the
Lowries Run Joint Operating Sewer Fund check in the amount of $4,595.
a. At the time that this check was given to her, the signature of Kimberly
Weigand was already on the check.
188. Zwick advised Weis to use this check to open up the Buchart-Horn account.
189. Weis endorsed the check on the back with her signature, Kimberly J. Weis.
a. The name of Robert Weis was already signed on the back of the check.
b. Kimberly Weis was unaware of who Robert Weis was and was also
unaware of who signed this name.
190. After the account was opened, Weis provided Zwick with the starter checks
which he had asked her to sign in blank.
a. Weis complied with Zwick's request and signed the checks in blank.
191. Kimberly Weis had no further dealings with this account, made no deposits into
said account and received no funds therefrom.
192. A review of records of National City Bank for the above identified account
indicate that James Zwick wrote out and signed checks disbursing funds from
that account.
193. A review of records of the above referenced bank account in the name of
Buchart-Horn and for which Jim Zwick was indicated as a signer, reveals that
James Zwick received four checks in the amount of $2,500 from that account.
a. Zwick used the funds in this account to in part pay his bills.
b. Checks totalling $2,950 were written to cash and ostensibly
subsequently cashed by Kimberly J. Weis.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 31
c. Kimberly Weis did not receive these funds and her signature on said
checks was forged.
d. Weis did not give anyone authorization to endorse her name.
194. The funds in the amount of $4,595 paid by the Lowries Run Joint Operating
Committee were funds in payment of an invoice submitted by Buchart-Horn,
Incorporated on January 6, 1997, for services rendered.
a. Buchart-Horn, Incorporated, the consulting /engineering firm, never
received these funds.
195. On April 2, 1997, Vesley received a sixty -day overdue notice from Buchart -
Horn's accounting department and subsequently attempted to reach Jim Zwick.
a. The overdue notice related to Buchart- Horn's invoice in the amount of
$4,595 for which they had not yet been paid.
196. When Vesiey finally reached Zwick, he advised her that the check had been
mailed and that several invoices for two months were combined into one chedk
for approximately $9,000.
i97. Vesiey subsequently checked with the accounting department and learned that
a $9,000 check had actually been received but such was for February invoices
unrelated to the $4,595 invoice that was still outstanding.
198. Vesley subsequently attempted to contact Zwick on a number of occasions over
several days but was unable to reach him.
a. Eventually Vesley left a voice mail message with Zwick threatening to go
to the Operating Committee to get a copy of the cancelled check to
Buchart-Horn.
199. Zwick subsequently called her back and advised her that the check had, in'fact,
been cancelled and she should not call the Operating Committee.
a. Later on the same day, Zwick contacted Vesiey and explained that the
payment had been returned to him in the mail and that he had sent a new
check the day before.
200. Zwick told Vesley several different stories regarding the issuance of the check
to Buchart-Horn, none of which were true.
201. The above identified account in the name of Buchart-Horn, Incorporated was
opened by or at the direction of James J. Zwick, Ross Township Commissioner
and Member of the Lowries Run Joint Operating Committee, for the purpose of
diverting funds from the Joint Operating Committee to his personal custody and
control. The above referenced account has no connection with the
consulting /engineering firm of Buchart-Horn, Incorporated.
a. Officials of Buchart-Horn, Incorporated were unaware of this account.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 32
b. Officials of Buchart-Horn, Incorporated were not familiar with Kimberly
Weis.
202. The officials of Buchart-Horn, Incorporated first became aware that Jim Zwick
was using the name of their company for his own personal purposes when they
were contacted by representatives of Graybar Company, an electrical contractor
supply house in Pittsburgh, Pennsylvania.
a. Graybar had sold certain items to Jim Zwick. Zwick subsequently paid
for these items in the amount of $96 with a check from the previously
identified Buchart-Horn bank account for which Zwick had signature
authority and which he opened.
b. The check from Zwick's Buchart-Horn account was returned for
insufficient funds and Graybar subsequently contacted the real Buchart-
Horn officials seeking payment.
c. Both Graybar and the bank were subsequently notified that the account
in question was not authorized to be opened in the name of Buchar-
Horn, Incorporated.
203. By way of letter dated February 27, 1997, from Gloriana Noreika from the law
firm of Stetler and Gribbon, Jim Zwick was advised that Buchart-Horn had
learned of his unauthorized use of the Buchart-Horn name and related bank
accounts.
a. Zwick was directed to immediately close the account at the National City
Bank in Pittsburgh.
204. James Zwick, in his official capacity and as a result of the authority of his
office, obtained funds from the Lowries Run Joint Operating Committee and
diverted them to his own personal use.
205. In addition to the foregoing, Jim Zwick also solicited funds from Buchart-Norn
at a time when they served as the engineer for the Lowries Run Joint Operating
Committee.
206. Buchart-Horn served as a consulting engineer for Ross Township in 1994 and
1995.
a. Buchart-Horn was first hired by Ross Township on July 11, 1994.
b. James Zwick participated in township actions relating to Buchart-Horn.
207. Zwick solicited political contributions from Buchart-Horn, Incorporated
ostensibly for the purpose of being used as campaign contributions.
208. As a result of Jim Zwick's solicitation of Buchart-Horn employees at a time
when they were serving as the Lowries Run Joint Operating Committee
Engineer or as a consulting engineer for Ross Township, Buchart-Horn issued
checks for political contributions as follows from the White Rose Pac, Buchart-
Horn's Political Action Committee:
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 33
a. Check no. 434 dated March 14, 1995, in the amount of $500 payable
to Democrats for Ross Township Limited.
b. September 5, 1995, check no. 448 in the amount of $300 made payable
to Committee to Elect Ross Democrats.
c. December 17, 1996, no. 482 in the amount of $300 payable to the
Commissioner's Fund.
209. All of the above identified checks were written from the White Rose Pac
account at the Dauphin Deposit Bank and Trust Company in York, Pennsylvania.
a. Checks identified in sub - findings a and b above were deposited into a
bank account at Mellon Bank, North American, in the name of Democratic
Party of Ross Limited, account no. 1097553.
b. That account is a private account opened by James J. Zwick on March
16, 1995, two days after the issuance of the check identified in "a"
above and for which he had sole signature authority.
c. Zwick was identified as the Chairman/Treasurer of the Democratic Party
of Ross Limited.
d. The address of the Democratic Party of Ross Limited as provided to
Mellon Bank for the opening of the account was 202 Connie Drive,
Pittsburgh, Pennsylvania, then the residence of James Zwick.
210. At the time that the account was opened, Zwick provided the bank with a
statement entitled Democratic Party of Ross Limited which identified the entity
as a committee to assist Democratic candidates who were seeking election in
1995. The document indicates that all required forms would be filed with the
state of Pennsylvania including the political committee registration statement as
well as the candidate authorization form.
a. The statement was ostensibly signed by Ross Township Commissioners
Dan Kinross, Jim Zwick and an individual named Angelo Martino.
211. Although documents provided to Mellon Bank at the time of the account
opening indicates that it was a registered political committee in the
Commonwealth of Pennsylvania, records of the Pennsylvania Department of
State, Bureau of Elections and Commissions, as well as records of Allegheny
County Board of Elections indicate no filings for the Democratic Party of Ross
Limited.
a. The Democratic Party of Ross Limited was not an authorized political
committee in the Commonwealth of Pennsylvania.
212. The signature of Dan Kinross, on the statement provided to the bank was not
that of Kinross.
a. Kinross did not sign the statement, gave no one permission to sign his
name and had no knowledge of this committee.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 34
213. A review of the deposits made into this account reflect a total of $ 12,796.05
was deposited therein from March 16, 1995, through October 10, 1995.
a. The source of deposits included individuals, political action committees
and campaign committees of various organizations.
b. Deposits were made into this account which emanated from the White
Rose Pac, the Political Action Committee of the engineering firm of
Buchart-Horn, Incorporated who performed various services for the
Lowries Run Joint Committee. (See Finding Nos. 115 - 204 regarding
Buchart-Horn, Incorporated).
214. A review of the cancelled checks disseminated from the account indicates that
a total of $ 13,617.70 in checks were written on the account during a seven (7)
month period.
a. Twenty -five of thirty -four checks issued from this account were written
to James Zwick.
b. Payments made to James Zwick or made to cash and subsequentry
endorsed and cashed by James Zwick totalled $10,309.00.
c. None of the checks written and paid to James Zwick were reported on
campaign contribution forms required to be filed by candidates running
for public office.
215. No checks were written from this account to any candidate running for public
office in Ross Township.
216. The Democratic Party of Ross Limited, the depository account for the funds, is
not an authorized political action committee or registered campaign committee.
(See Findings 209 -214 for further information regarding this account).
a. Although the „ Committee to Elect Ross Democrats” (the payee on check
no. 448, Finding 208b) is a registered political committee, the funds
were never turned over to that entity.
b. Jim Zwick converted said funds to his own use.
217. The check identified in Finding No. 208c above, was cashed at Myers AMOCO
Service Station in Ross Township, Pennsylvania. None of the foregoing checks
were reported as political contributions on campaign finance reports for any
candidate in Ross Township.
218. In addition to soliciting political contributions, James Zwick also solicited the
sponsorship of a basketball team in 1994 and 1995 by Buchart-Horn,
Incorporated.
a. Said solicitation was made to Albert W. Kozel, Jr., the Pittsburgh
representative of Buchart-Horn, Incorporated.
219. Buchart-Horn authorized contributions to the Jim Zwick summer basketball
league as follows:
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 35
a. August 5, 1994, in the amount of $300.
(1) This payment was Tess than one month after Buchart-Horn was
first hired by Ross Township. (See Finding No. 206).
b. December 12, 1995, in the amount of $250.
220. Both checks were cashed by Jim Zwick and were not deposited into any bank
accounts.
221. The funds solicited by Zwick from Buchart-Horn, Incorporated, at a time when
that entity served as the operating engineer for the Lowries Run Joint Operating
Committee or as the consulting engineer for Ross Township, were utilized for
personal purposes by Zwick.
The following Findings relate to the Admiral Lawn Maintenance Service.
222. Admiral Lawn Maintenance Service, located in Wexford, Pennsylvania, engages
in lawn maintenance and landscape contracting work.
a. Admiral Lawn Maintenance Service is owned by T. Justin Ruff.
23. Admiral Lawn Maintenance Service performed work in Ross Township as`a
subcontractor for another lawn maintenance company, Lawn Control Center,
Incorporated, which company had a contract with the township in 1995.
a. While subcontracting for Lawn Control
James Zwick.
224. During the spring or early summer of 1996, T.
James Zwick.
Services, T. Justin Ruff met
Justin Ruff was contacted 13y
a. Zwick inquired as to whether Ruff could perform lawn maintenance work';
at Denny Park in preparation for an upcoming event at that location.
b. Ruff advised Zwick that he probably could do the job and Zwick
requested that Ruff meet him at the park on the next day.
225. When Ruff and Zwick met, Zwick advised Ruff that he was required to post a
performance bond in the amount of $2,500.
a. Ruff inquired of Zwick as to whom the check should be made payable to,
and Zwick indicated that he was uncertain.
b. Zwick advised Ruff to leave the payee portion of the check blank.
226. Ruff issued two checks in payment of the performance bond as requested by
Zwick.
227. Records of Integra Bank indicate the two checks were issued from the account
of T. Justin Ruff on July 10, 1996.
Zwi k, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 36
a. Check no. 149 issued from the above account was in the amount of
$1,000.
b. Check no. 150 from the above referenced account was in the amount of
$1,500.
c. Both checks had written in the pay to the order of line, "Jim Zwick."
d. Both checks were endorsed on the reverse side by "Jim Zwick."
228. Jim Zwick provided Ruff with two receipts indicating the payment of said funds.
a. Both receipts indicated deposit Denny Park.
b. Neither receipt indicated that the checks related to a performance bond
for work at the township park.
229. After Ruff performed the work at Denny Park, he was anticipating the return Of
his $2,500 performance bond.
230. Ruff received payment for the work that he had performed, also in the amount
of $2,500, but no return on the performance bond.
a. When Ruff contacted Zwick regarding the bond he was advised that the
performance bond check had not yet been issued.
231. Ross Township never received the performance bond.
a. Said funds were retained personally by Jim Zwick.
232. Zwick eventually began repaying the funds to Ruff in small increments over a ;
period of time.
a. All of the funds were repaid to Ruff by October of 1996.
233. In addition to the foregoing, Zwick would often advise Ruff that other township
jobs were being placed out for bid proposals.
a. Zwick indicated that Ruff would need to put up a bond in order to be
considered for these jobs.
b. Zwick would often call and indicated that he needed a performance bond
for an upcoming job by a certain time on the same day of the call.
c. Zwick called the Ruffs' office as many as fifteen to twenty times a day
requesting funds.
d. Ruff never paid any of the requested funds.
234. Zwick also suggested that Ruff should make donations to him in the form of
ticket purchases.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 37
a. Zwick implied that if Ruff did not make the donations or purchases as
indicated, he would not receive township work.
b. On one such occasion, Zwick continually attempted to receive fund
raising donations from Ruff.
c. Ruff refused to buy any fund raising tickets but Zwick persistently called
him and Ruff eventually relented.
d. As a result, Ruff issued check no. 201 payable to Zwick dated October
2, 1996, from his account in the amount of $250.
e. Zwick advised Ruff that these funds would be a donation to raise money
for the election.
235. Ross Township does not require bids for purchases or services under $4,000.
a. Although not required, such bids on these purchases is encouraged.
236. The Township requires performance bonds only in circumstances where the
services rendered will be in excess of $10,000.
a. Performance bonds are also required by the township when sealed bids
are requested.
b. Bid bonds are required to be in the amount of 10% of the total amount
of the job.
c. Performance bonds are never required to be paid to the township before
sealed bids are submitted.
d. Township commissioners have never been required to or, in fact, handled
performance bonds on projects performed for the township.
237. The township required no performance bond for the work in Denny Park
performed by T. Justin Ruff.
a. Even if said bond had been required, such would have been in the amount
of 10% of the project or $250.
b. Ruff was not aware of the correct procedures for submitting performance
bonds at the time that he gave Zwick the two checks.
238. The funds collected by Zwick from T. Justin Ruff were not turned over to the
township.
239. Jim Zwick used the authority of his official position as township commissioner
to obtain funds classified as a performance bond from a contractor doing work
for the township and failed to turn said funds over to the township.
a. Zwick converted said funds to his personal use.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 38
b. Zwick solicited funds from T. Justin Ruff in the form of donations and
fund raising ticket purchases based upon Zwick's understanding that Ruff
would receive township work based upon said payment.
The following Findings relate to Greenfield Lawn Care Company.
240. Greenfield Lawn Care Company is owned and operated by Craig and Rebecca
Mergenthaler.
a. Greenfield Lawn Care Company is located in Sewickley, Pennsylvania.
241. Craig Mergenthaler and James Zwick became acquainted as a result of a local
basketball league in which both played.
242. Zwick was aware that Mergenthaler was involved in lawn care work and
suggested that he bid on work for Ross Township.
a. Mergenthaler questioned Zwick about when the township advertised
work and learned that such generally occurred in April, according to
Zwick.
b. Zwick further advised Mergenthaler that the township requested bids
through advertisements in the newspaper.
243. Zwick provided Mergenthaler with a list of ballfields in Ross Township that
would require landscaping and lawn care work.
a. Mergenthaler visited the various fields and also obtained an aerial map of
the township that contained the location of the fields.
244. Mergenthaler bid on a project in Ross Township for 1996.
a. That project related to landscaping and lawn care for the ballfields and'_
the common areas around said fields.
245. In December 1995, prior to bidding on the Ross Township ballfield project,
Zwick contacted Mergenthaler and indicated that he needed money right away
for a performance bond so that Mergenthaler could bid on the 1996 township
work.
a. Zwick was very insistent that the money was needed immediately.
246. Mergenthaler provided Zwick with a post dated check, #1426, from the account
of Greenfield Lawn Care at PNC Bank, in the amount of $3,500.
a. Said check indicates in the memo section, bid bond 96 -003.
b. The check was issued to Zwick by Mergenthaler with the payee section
of the check left blank.
c. Mergenthaler wrote in the memo portion of the check, bid bond.
Someone other than Mergenthaler inserted the number 96 -003.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 39
d. The check was dated December 21, 1996.
247. Although the payee portion of the check was left blank by Mergenthaler, when
the cancelled check was returned to Mergenthaler, the name Jim Zwick had
been inserted therein.
248. The check was endorsed on the reverse side by Jim Zwick and cashed at PNC
Bank.
249. Several months later, Zwick re- contacted the Mergenthalers and requested an
additional $1,500 check.
a. Zwick indicated that the township had changed its policies regarding bid
bonds and the $3,500 check issued previously would be returned to
them
250. Zwick had advised the Mergenthalers that the township could not issue them
a check for the difference between the $3,500 and the $1,500 which was now
needed.
a. Zwick had advised them that they would get a new check in the amount
of $3,500 but that the Mergenthalers would have to supply an additional
$1,500 during the interim period.
251. Rebecca Mergenthaler thereafter, upon Zwick's request, issued check no. 131
from an account in the name of Craig J. and Rebecca A. Mergenthaler dated
March 13, 1996, in the amount of $1,500.
a. The check was made payable to Ross Township.
b. When the cancelled check was returned to the Mergenthalers, the worsts
"Comm Jim Zwick" had been inserted after the words Ross Township.
c. As a result, the check appeared to have been made payable to Ross
Township Commissioner Jim Zwick.
d. The check was cashed at Mellon Bank and endorsed on the reserve side
by Jim Zwick and Carl Zotter, a former Chief of Police for Ross
Township.
252. Rebecca Mergenthaler became suspicious of the issuance of the check to Jim
Zwick and contacted the township regarding their policies on bid bonds.
253. When Rebecca Mergenthaler had contacted the township regarding the bid bond
policies, Zwick was present at the township building.
a. Zwick got on the telephone and told Mergenthaler not to call the
township anymore. He advised her that the township manager wanted
his own people, (referring to certain political allies), to cut the grass for
the township and that they should not talk to him because he would not
help them.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024-C2
Page 40
b. Zwick subsequently contacted Craig Mergenthaler and advised him to tell
his wife not to call the township anymore.
254. Subsequent to providing Zwick with the $5,000 noted above, the Mergenthalers
bid on another project in Ross Township.
a. At that time, they learned of the true bid bond requirements and were
thus required to post actual performance bond money with the township
in order to submit their bid.
255. After persistent contacts to Zwick, the Mergenthalers eventually received a
return of their funds from him.
a. Zwick paid the money to them in cash over a period of time.
256. The township required no performance bond for the work in Ross Township
performed by Craig Mergenthaler.
a. Even if said bond had been required, such would have been in the amount
of 10% of the project.
257. The funds collected by Zwick from Mergenthaler were not turned over to the
township.
258. Jim Zwick used the authority of his official position as township commissioner
to obtain funds classified as a performance bond from a contractor doing work
for the township and failed to turn said funds over to the township.
a. Zwick converted said funds to his personal use.
The following Findings relate to Owens Motor Coach, Incorporated.
259. In 1995, the Ross Township Board of Commissioners issued requests` for-'_
proposals regarding the Township Senior Citizen's Bus Transportation Program
contract.
260. James Zwick was the Ross Township Commissioner in charge of reviewing and
processing the Senior Citizens Bus Renewal Contract proposals.
261. On October 23, 1995, at a regularly scheduled meeting of the Ross Township
Board of Commissioners, Zwick commented as follows:
Commissioner Zwick -- reported specifications are being prepared for the Senior
Citizen's Bus Renewal, which will include leasing and /or purchasing a new bus.
Some time in late November, a new model bus will be brought on site for the
Boards review. Some of the Seniors have made requests and recommendations
which include air conditioning, a rack above the seats for their packages after
shopping trips, and a rear exit door. It was recommended by the Owens' to get
rid of the natural gas vehicle, which caused a great deal of problems especially
in maintenance, and consider a diesel.
262. The opening of the bids for the Senior Citizens Bus Transportation Contract was
scheduled for the next commissioners meeting, November 13, 1995.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 41
263. At the November 13, 1995, meeting of the Ross Township Board of
Commissioners, township minutes reflect that Commissioner Zwick made a
motion to table the opening of the bids for the Senior Citizens Bus
Transportation Contract. The minutes of the meeting reflect as follows
regarding the actions of the township commissioners and in particular, James
Zwick at that time:
a. Commissioner Zwick made a motion to table the opening of bids for the
Contracted Services to Operate Senior Citizens Transportation because
he felt further discussion was needed to determine whether to lease or
purchase the vehicle, seconded by Mr. Kinross. Commissioner Zwick
indicated this will not affect the current service provided to the Senior
Citizens. The Solicitor advised the Board that the bids which were
received must be opened this evening and referred to the appropriate
Committee. However, the Board does not have to accept any of these
bids and could rebid with different specifications. Commissioners Zwick
and Kinross rescinded their motion.
Chairman Lawlor opened the bids for Contracted Services to Operai;e
Senior Citizens Transportation in the order in which they were received.
1. Owens Motor Coach, Inc.
a. $48,000.00 per year, does not include fuel.
b. $68,760.00 per year, does not include fuel.
2. A & E Transportation, New York.
a. $211.00 to furnish a 1995 luxury bus, including fuel, .
driver, insurance.
b. $168.00 annual lease price for 26 passenger bus.
Chairman Lawlor referred the bids to the appropriate Committee for
review and recommendation.
264. One of the bidders on the Senior Citizens Bus Transportation Contract was the
Owens Motor Coach Company, Incorporated.
265. The Owens Motor Coach Company, Incorporated is owned by Diana Owens and
is also operated by her husband, Richard Owens.
266. On December 11, 1995, Zwick contacted Richard Owens and asked if he
(Owens) was going to be at his office for a few minutes.
a. Zwick told Owens that he needed to discuss something with him.
267. When Zwick arrived at the office of Owens Motor Coach, Incorporated, he told
Owens that he needed a donation for uniforms for his basketball league.
a. Owens asked Zwick how much he was requesting and Zwick advised him
that $2,500 was needed.
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Page 42
b. Owens was surprised at the amount of money requested by Zwick.
c. Owens had donated money to other local teams for uniforms and other
items and generally recalled that the amount was approximately between
$200 and $400.
268. Zwick requested that Owens leave the check blank in the payee portion.
a. Zwick indicated that he would fill out the payee on the check at a later
time.
269. As a result of the request by Zwick, Owens issued check no. 1383 from the
Owens Motor Coach, Incorporated bank account at Mellon Bank on December
11, 1995, in the amount of $2,500.
a. The check was deposited into the personal account of Jim Zwick at PNIC
Bank on that same date, account no. 1010331369.
270. James Zwick had requested and received the $2,500 from the Owens Motgr
Coach Company, and deposited these funds into his personal bank accourit
immediately prior to the township's consideration of the Owens Motor Coach
Company bid on the Senior Citizens Shuttle Bus Program contract.
a. The deposit of the above funds into Zwick's account occurred at 3:03
p.m. on December 11, 1995.
271. On December 11, 1995, the same day that Zwick had requested funds from the
owners of Owens Motor Coach Company, Incorporated, the Ross Township
Board of Commissioners again considered the award of the Ross Township
Senior Citizens Bus Transportation Contract.
272. The township meeting began at 7:30 p.m., 4 '/2 hours after Zwick deposited the
funds he received from the Owens Motor Coach Company into his personal'_
account.
273. During the meeting of December 11, 1995, Zwick opened the session on the
Senior Citizens Bus award proposals by clarifying the proposals for the purchase
of a new bus or a lease program.
a. Zwick specifically recommended the acceptance of one of the two
proposals offered by the Owens Motor Coach Company.
b. Zwick then made a motion to accept proposal B from the Owens Motor
Coach Company, Incorporated which was seconded by Commissioner
Purcell.
c. Further discussion took place between Zwick and other commission
members regarding the possibility of trading -in the bus currently owned
by the township.
d. Zwick then agreed to amend his motion to accept the Owens Motor
Coach Proposal so as to include a commitment letter from Owens
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 43
regarding a trade -in of the currently owned bus. Mr. Purcell seconded the
motion again.
e. Zwick stated the urgency of obtaining a new vehicle as soon as possible
so it could be available for January 1, which is when the new program
is scheduled to begin.
f. The motion passed unanimously.
274. Diana and Richard Owens generally have no need to contact township
commissioners and most of their dealings are with the Township Manager,
Thomas Lavorini.
a. The township commissioners are not involved in the day -to -day activities
of the Senior Citizens Shuttle Bus Program.
275. Neither Diana or Richard Owens had any previous social or business contact
with James Zwick other than as bidders on the Township Senior Citizens
Shuttle Program contract.
a. James Zwick had communicated with the Owens' on approximately four
or five occasions prior to this time over a nine year period.
276. The bank account into which the funds requested and received by James Zwick
from Owens Motor Coach, Incorporated were deposited, was a personal
account in the name of James J. Zwick for which Zwick had sole signature
authority.
277. A review of the checks written from the referenced bank account no.
1010331369 indicate that no checks were issued or made payable to any
basketball league or any sporting goods store from which basketball supplies
and equipment was purchased.
The following Findings relate to Christopher J. Kaclik, Incorporated.
278. Christopher J. Kaclik, Incorporated is involved in general contracting and home
building.
a. This entity has been incorporated since 1987 and has been operational
since 1985.
279. Christopher J. Kaclik, Incorporated is owned and operated by Christopher J.
Kaclik.
280. Christopher Kaclik was familiar with James Zwick for a number of years. In
1994, Christopher J. Kaclik was developing an office building in Ohio Township
known as Shannopin Square Phase I.
a. Kaclik was interested in building two office buildings in that location,
Phase I and Phase II.
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Page 44
281. Although the building was located in Ohio Township, the sewer line that ran in
front of the building and which would service the building was owned by Ross
Township rather than Ohio Township.
a. As a result of the foregoing, Kaclik had to receive approval for sewer taps
from both Ohio and Ross Townships for the Shannopin Square Phase I
building.
b. Records of Ross Township indicate the following regarding activities
relating to Shannopin Square I.
06/13/94 - Zwick volunteered to sit on the committee to
negotiate the Kaclik Planning Module.
06/27/94 - The Kaclik Planning Module was discussed and
approved by vote later in the meeting.
08/08/94 Ross Township was authorized to enter into an
agreement with Ohio Township regarding the Kaclwk
development.
282. Several months after the sewer lines for Shannopin Square I were approved,
James Zwick, Ross Township Commissioner, contacted Christopher Kaclik and
advised him that if he ever needed help with anything in Ross Township in the
future he should contact Zwick.
a. Zwick advised Kaclik that he could help him out and he could get things
done in securing the sewer taps for the next building that he was
planning.
b. This contact occurred sometime before the fall of 1994.
283. During the beginning of 1996, Kaclik initiated the process for the developrrient'_
of Shannopin Square Phase II.
a. In order to accomplish the development of this building, he initiated
contact with Ohio Township wherein the building would be located.
284. Sometime during June of 1996, Jim Zwick contacted Kaclik and once again
advised him that he could be of assistance to Kaclik in obtaining sewer taps for
him.
During this conversation, Zwick also advised Kaclik that in order to help
insure he gets his sewer taps, it would be helpful for Kaclik to make a
donation to the Men's Summer Basketball League or some other Ross
Township Association.
b. During this conversation, Zwick made reference to other developers in
the area and how they were having problems getting sewer taps.
285. Kaclik advised Zwick that if a donation was required he would prefer to make
it to some type of youth or children's league.
a.
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Page 45
a. Zwick insisted that the donation be made to the Men's Summer
Basketball League because Zwick was in charge of that league for the
township.
286. Kaclik was under the impression from Jim Zwick that the summer basketball
league was operated by Ross Township.
287. Zwick did not mention a specific amount that he was requesting during the
initial telephone conversation.
a. He did indicate to Kaclik that he needed the money quickly.
288. Subsequent to the initial telephone call, Zwick constantly contacted Kaclik until
Kaclik agreed to personally meet with him.
289. Kaclik and Zwick met on approximately one week prior to July 9, 1996.
a. This meeting took place at Shannopin Square Phase I.
290. At the time of this meeting, Zwick had documents regarding the sewer modulds
of other developers in the area.
a. Zwick advised Kaclik that he had to move very quickly because these
other developers would be able to get taps before him and then all of the
sewer taps would be eliminated.
b. Zwick advised Kaclik that he had to pay for his taps immediately or they
would not be available.
c. Zwick advised Kaclik that once he paid for the taps they would be good
for two or three years.
291. Sewer taps from this particular area of the sewer line were limited. During the ..
course of the conversation with Kaclik, Zwick indicated to Kaclik that he could
ensure that Kaclik got the appropriate number of votes on the Ross Township
Board of Commissioners to ensure that his sewer modules would be approved
and that he would obtain the sewer taps he needed.
292. During the course of these several conversations, Zwick advised Kaclik that the
total amount of funds that he would need to come up with in order to reserve
the sewer taps was $17,500.
a. Zwick further advised Kaclik that the donation to the basketball league
in the amount of $5,000 was in addition to what was necessary to
reserve the sewer taps.
b. As such, Zwick was requesting that Kaclik provide him with $22,500 in
order to ensure that he would have sewer taps for the development of
Shannopin Square II.
293. Approximately one week after the meeting, Zwick contacted Kaclik and
specifically requested that he provide the funds for the donation to the
basketball league.
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Page 46
294. As a result, Kaclik issued a check in the amount of $5,000 payable to James
Zwick from the accounts of Christopher J. Kaclik, Incorporated.
a. That check was issued on July 9, 1996.
b. A notation on the check indicates Summer League 1996 Basketball.
c. Records of Kaclik indicate that he met with Zwick on July 9, 1996, at
8:30 a.m.
295. The check was cashed by Zwick on July 9, 1996, at 3:56 p.m.
296. Subsequent to the issuance of this check, Zwick continued to call Kaclik and
advised him that he needed to come up with the rest of the funds in order to
ensure his sewer taps.
a. Zwick attempted to impress upon Kaclik the urgency of providing the
funds so that he would have the taps available for his development.
297. As a result of Zwick's constant pressure and comments to Kaclik that funds
were necessary in order to ensure his sewer taps, Kaclik issued a check in the
amount of $7,500 in partial payment of the sewer taps.
a. That check was issued from the same account of previously noted and
was dated July 18, 1996.
b. Kaclik's records indicate that he met Zwick at 2:00 p.m. on this date.
298. At the time that Kaclik issued this check, Zwick advised him not to fill out the
portion of the check regarding the payee.
a. Zwick advised Kaclik that it would be made out to a special fund and he
would fill in that portion of the check for Kaclik.
b. The funds provided by Kaclik on this date were ostensibly a partial
payment by Kaclik for the sewer taps.
299. Kaclik was of the impression that he would have to provide another $10,000
to Zwick in order for Zwick to reserve sewer taps with the township for his
development.
300. Zwick cashed the check in the amount of $7,500 on the same day that it was
received by him, July 18, 1996, at 3:40 p.m. None of the funds provided by
Kaclik to Zwick, were deposited into any township bank accounts.
301. None of the funds were utilized by James Zwick in order to reserve sewer taps.
a. The funds that Zwick obtained from Kaclik, through the use of his public
position, were converted to Zwick's personal use.
302. When Kaclik received the negotiated checks back from his bank, he realized that
Zwick had made the checks payable to himself and he further realized that
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 47
Zwick had immediately cashed the checks rather than deposit them into any
accounts.
303. Kaclik approached Zwick at this point and asked him why the checks had been
cashed rather than deposited into the Ross Township accounts.
304. Zwick advised Kaclik that this is the only way the township would accept the
funds. He indicated that the township wanted cash and that he had to cash the
checks in order to give the township the money.
305. Kaclik then began to pressure Zwick to return the funds that he had given him.
a. On August 12, 1996, Kaclik began calling Zwick to request the return of
the $7,500.
b. This was after Kaclik received the cancelled checks from his bank and
saw that they were payable to Zwick.
306. As a result of constant pressure by Kaclik, Zwick issued a check to Kaclik in the
amount of $2,500 on May 16, 1997.
a. This check was issued from account no. 10- 0476 -7801 at PNC Bank
b. This account was in the name of Kim Weis d /b /a Communications &
Cabling.
307. James Zwick solicited funds from Christopher J. Kaclik in the form of a
donation to a basketball league and for a down payment for sewer taps for the
development of a building, based upon Zwick's specific understanding that his
action, judgement or vote would be influenced thereby.
The following Findings relate to Bernard Creedon, Jr. and the Hampton Inn.
308. Bernard Creedon, Jr. is the developer of the Hampton Inn which was being
constructed at 4575 McKnight Road, Ross Township, Pittsburgh, Pennsylvania.
309. In April of 1994, Creedon first submitted his plans to the Ross Township
Planning Commission in relation to the development of this project.
a. It took four or five months for Creedon to receive the Planning
Commission's approval for this project.
310. In January of 1995, Creedon received approval for his plans from the Ross
Township Board of Commissioners.
311. Creedon did not break ground on his building until the spring of 1996 due to his
inability to obtain funding until that point in time.
312. During the course of his dealings with the Ross Township Board of
Commissioners, Creedon met with James Zwick on several occasions both at
the building site and also spoke with him via telephone.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 48
a. Zwick would explain to Creedon different things that the township
wanted to see in the development of his building such as certain
requirements on landscaping.
313. Shortly after Creedon's plans were approved by the Township Board of
Commissioners but prior to breaking ground, James Zwick contacted Bernard
Creedon and requested a $5,000 donation for a basketball league.
314. Creedon advised Zwick that he was not interested in donating this money to the
league and Zwick then dropped the price he was requesting to $2,500.
315. Creedon flatly refused to pay Zwick any money as he felt it was not
appropriate.
a. Creedon believed that it was inappropriate for Zwick to be requesting
donations of such amounts of money from him at a time when he had
just received his approval from the Board of Commissioners and prior 1;0
his breaking ground and having his building completed in accordance with
his development plans.
316. Shortly after Creedon broke ground on the building and prior to the completion
of the building, he received a telephone call from Zwick who was inquiring -
about the telephone system that Creedon was going to place in his building.
a. Creedon told Zwick he had already chosen another manufacturer to
supply the telephone equipment.
b. Zwick asked if he could bid on the cabling and installation of the system.
317. Zwick was permitted to submit prices for the equipment in addition to the
cabling and installation.
318. Creedon eventually made the decision to obtain his telephone system thro'ugh'_
BC Communications, Jim Zwick's employer.
a. The fact that Zwick was a township commissioner played some role in
Creedon's decision.
319. Immediately after the contracts were signed for the provision of the telephone
equipment and installation, Zwick continually called Creedon wanting payment
for the equipment up -front and immediately.
320. After continued pressure, Creedon paid Zwick approximately $6,355.80 from
his own construction accounts with the understanding that as soon as the
financing of $45,000 came through for Zwick, he would pay Creedon his
$6,355.80 back.
a. Financing was being obtained via a leasing company.
321. Zwick eventually received the $45,000 for the telephone system and after
constant pressure from Creedon, Zwick paid Creedon $6,355.80 as a refund of
the original payment.
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Page 49
322. BC Communications, Incorporated, as Zwick's employer, then began installation
of the cabling system.
323. Approximately six or seven weeks after the cabling was finished, another
employee of BC Communications came to the construction site and indicated
that BC Communications was seeking to have a down payment on the system
paid at this time.
a. BC Communications was unaware of the fact that James Zwick had
already been paid $45,000 representing payment in full for the job.
324. James Zwick failed to turn the $45,000 over to BC Communications and BC
Communications in return refused to install the phone system in the Hampton
Inn.
325. James Zwick solicited donations from Bernard Creedon, ostensibly to be used
in his basketball league, at a time when Creedon had just received approval frorp
the Township Board of Commissioners, where Zwick participated as a township
commissioner in actions relating to Creedon.
326. Zwick solicited Bernard Creedon for the purpose of obtaining a contract to
install a telephone system in 'a development project being constructed by
Creedon (which required Ross Township Commissioners' approval), at a time
in close proximity to when Zwick was participating in actions relating to this
same project as a township commissioner.
327. As previously noted, James Zwick solicited funds in the form of donations to
a Men's Basketball League from the following individuals who had matters
pending before the Township Board of Commissioners at a time in close
proximity to when said donations were solicited by Zwick: Dr. Matthew
Coppola, Buchart-Horn, Incorporated, Christopher J. Kaclik and Bernard
Creedon.
328. Zwick also solicited and received a $1,500 donation towards the basketball
league from the National Development Company, a consulting firm hired by the
Masonic Fund Society to handle the development of the Greater Pittsburgh
Masonic Lodge on Cemetery Lane in Ross Township.
a. The solicitation by Zwick was made shortly after the Masonic Society
had received approval from the Township Board of Commissioners on
their final site plan relating to the Greater Pittsburgh Masonic Center.
b. Zwick had actively participated in the Township Commissioners' review
of the Masonic Center Development Plan.
329. The Jim Zwick Basketball League was not affiliated in any way with Ross
Township.
330. The Jim Zwick. Basketball League was a private endeavor.
331. All funds solicited and received by Jim Zwick as noted herein regarding the Jim
Zwick Basketball League were personally obtained by Jim Zwick.
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Page 50
332. Zwick maintained custody and control of all funds received in relation to the
basketball league.
a. Zwick utilized said funds for his own personal purposes.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, James Zwick, hereinafter
Zwick, has been a public official subject to the provisions of the Public Official and
Employee Ethics Law ( "Ethics Law "), Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401,
The allegations are that Zwick violated Sections 3(a) and 3(c) of the Ethics Law
when he: (a) used the authority of his office for the private pecuniary benefit of himself
by accepting items of monetary value from individual(s) who had matters pending
before the Board of Commissioners; and when he solicited and accepted items of
monetary value, including a loan, contribution(s) to sponsor a sports team and cash
payments from an individual(s) who had matters pending before the Board of
Commissioners and /or individuals or vendors of the Township and /or when such wOs
based on an understanding that his official action, vote and /or judgement would he
influenced thereby; (b) used the authority of his office for the private pecuniary beneft
of himself and /or a business with which he is associated by soliciting persons (as
defined in Act 9) who have matters before the Board of Commissioners to purchase
telephone systems from him; and /or when he solicited something of monetary value
from persons (as defined in Act 9) having projects pending before the Board of
Commissioners based on his understanding that his vote, official action or judgment
would be influenced thereby; and (c) when he used the authority of his office for a
private pecuniary benefit by using his position as a Township Commissioner to obtain
funds issued by the Lowries Run Joint Committee, on which he serves as part of his
public position, and converted said funds to his personal use.
Pursuant to Section 3(a) of the Ethics Law quoted above, a public official /public
employee is prohibited from engaging in conduct that constitutes a conflict of interest,'
defined under Act 9 of 1989 as quoted above.
Section 3(c) of Act 9 of 1989 quoted above provides in part that a public
official /public employee shall not solicit or accept anything of monetary value based
upon any understanding that his vote, official action or judgment would be influenced
thereby. In this case, the Investigative Division has presented the novel argument that
violations of Section 3(c) have occurred even where the solicitations were made after
the governmental body had completed its review of all matters involving the
person /firm to whom the solicitations were directed. For example, in one such
instance, the Investigative Division seeks a 3(c) violation based upon "the implication
that the funds were a reward for prior favorable action and /or for future favorable
action." (Motion for Specific Relief, at 17 -18). We recognize the possibility that there
may be some factual circumstances in some cases which would support a finding of
a violation of Section 3(c) based upon prior /future actions. However, we believe that
such a scenario does not exist as to the facts before us in this case.
We shall now summarize the material facts. We would note that since Zwick
did not file any Answer to the Investigative Division's Investigative Complaint, the
Findings of the Investigative Complaint are deemed admitted by Zwick and constitute
the facts which are before us.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 51
Zwick is a Ross Township Commissioner, having served in this position since
January, 1988. Zwick also serves as Ross Township's representative on the Lowries
Run Operating Committee which oversees the operation of the Lowries Run Trunk
Line, a sanitary sewage system.
In his private capacity, Zwick owns and operates CSC Communications Systems
and Cabling (CSC), which is located at his residence address.
For approximately one year, Zwick also served as a commissioned sales
representative for BC Communications, which sells AT &T telephone equipment.
The facts which are pertinent to our review of this case are complex and
voluminous, and they involve the conduct of Zwick with respect to various individuals,
governmental bodies, and business entities. Zwick's actions are most easily
understood in the context of separate factual scenarios, and so they are set forth in
that manner.
The first factual scenario involves the Fosnight Retirement Home (Findings 2
through 107).
The Fosnight Retirement Home is operated by Timothy and Lynn Fosnight. Th,e
Fosnights entered into an agreement to purchase a property in Ross Township ("the
Property ") in order to expand their business. The agreement was contingent upon their
receiving approval for a conditional use from the Ross Township Planning Commission
and the Ross Township Board of Commissioners.
The Fosnights' conditional use approval request was recommended by the Ross
Township Planning Commission by a vote of 8 -0 at its meeting on August 22, 1996.:
On September 9, 1996, the Ross Township Board of Commissioners considered
the conditional use approval request. At the meeting, Zwick vigorously opposed the
Board's approval of the conditional use request for the Fosnights, raising numerous
concerns which included funding designated for a traffic signal at the intersection
where the property was located, and traffic patterns for ingress and egress to. the
property. Zwick stated that it would be in the best interests of all parties involved "to
table the request until the Board would have time to review all the necessary
information and discuss the issues prior to listening to the applicants' presentation.
An initial motion to table the Fosnights' request, seconded by Zwick, failed by a vote
of 5 -4 with Zwick voting to table the request. Further discussion then ensued. During
that discussion, Zwick again stated his concerns and reminded the Board that a
conditional use goes along with the property permanently. Zwick insisted that
numerous issues needed to be addressed and resolved prior to granting conditional use
and he urged the Board to table the request. Another motion was made to table the
request, which motion was seconded by Zwick and approved by a vote of 9 -0.
Thereafter, the Fosnights were invited to attend a committee meeting of the
Board of Commissioners to be held on September 16, 1996. On or about September
12 or 13, approximately 3 -4 days before the scheduled committee meeting, Zwick
contacted Timothy Fosnight and arranged to meet with him and his brother Aaron at
the Property (Aaron Fosnight and Sandra Harvey (Lynn's sister) were also involved
with the Fosnights in the project). Aaron Fosnight met Zwick at the agreed -upon time.
Timothy Fosnight arrived later.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 52
Zwick advised Aaron Fosnight that he (Zwick) could require them (the Fosnights)
to conduct an involved traffic study which might cost them as much as $ 10,000; that
he could require them to pay for the remaining portion of the cost of the traffic light
at the intersection; that the traffic Tight would probably cost at least $50,000 of which
the Fosnights would be required to pay one half; and that he (Zwick) could tie up their
plans requiring them to expend a substantial amount of funds.
Zwick then told Aaron Fosnight that he was interested in several personal
projects and that they (the Fosnights) could help him with those projects. Zwick
stated that he sat on "North Hills Affordable Housing" which was putting in a
playground. Zwick noted that he could not force the Fosnights to make a donation to
this cause but that he could cause them substantial problems with their development
project. Zwick told Aaron Fosnight that he should not tell anyone about their
conservation.
Zwick made it clear to Fosnight that he (Zwick) could require them (the
Fosnights) to expend thousands of dollars or he could help them get the project
through easily if they cooperated. Zwick advised Fosnight that he would be able to
obtain the votes on the Board because he had influence through party lines and woad
be able to insure that they would have their project passed.
When Timothy Fosnight arrived at the Property, Zwick reiterated what he hid
already told Aaron Fosnight. Zwick further told Timothy Fosnight that it would be very
natural for him (Zwick) to request a traffic study, that such would not be unusual, and
that no one would question why he was doing such. Zwick advised Timothy Fosnight
that he could save him $15,000 by simply requesting that the Township use one of
the other traffic studies that had already been completed for the same intersection.
Zwick advised Timothy Fosnight that he would be willing to help him work through the
Township requirements. Zwick indicated that he could assure the Fosnights that the
conditional use approval request and final site plan would be approved.
At the conclusion of the conversation, the Fosnights asked Zwick how much .
money he was seeking for the "donation." Zwick advised that the Masons (angther
development applicant) had supplied $15,000 for a traffic Tight and he indicated that
it would be fair to have the Fosnights supply the same amount of money for the
project in which he was interested. The Fosnights agreed to the donation so long as
it was openly done. The Fosnights were concerned that if they did not comply with
Zwick's request, their development would not be allowed and they would lose the
$10,000 in deposit money that they had given to the seller for the Property.
At this juncture, it should be noted that Zwick really was associated with North
Hills Affordable Housing. Specifically, the Benedictine Sisters are partners with North
Hills Affordable Housing in the Benedictine Place Corporation which provides housing
for single mothers. Zwick did in fact sit on the Benedictine Place Corporation Board
as well as on the Board of Directors of North Hills Affordable Housing.
On September 16, 1996, a few days after Zwick's meeting with Timothy and
Aaron Fosnight, the Fosnights attended the committee meeting of the Ross Township
Board of Commissioners. During that same week, the Fosnights also met with the
officials of the Girty's Run Sewer Authority. The Authority officials indicated that they
did not foresee any problems but that the Fosnights would have to apply for sewer
taps.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 53
Zwick was present at the Sewer Authority meeting. Zwick indicated that he
was on the Board of the Authority and that the Fosnights should not worry about the
taps as he would help them through that process. Zwick indicated that he had
reserved 20 sewer taps and that the Fosnights would not have to worry about that
part of the process.
In fact, Zwick was really not a member of the Genie's Run Sewer Authority
Board. But the Fosnights believed that Zwick could have a negative or positive effect
upon their ability to carry out their project depending upon whether or not they
complied with his request for funds.
The Ross Township Board of Commissioners again considered the Fosnight
Retirement Home request for conditional use approval at its September 23, 1996
meeting. Zwick made a motion which passed by a vote of 8 -0 to remove the item
from the table. Zwick stated that he had met with the applicants at the site and was
comfortable at that point with their request for conditional use. However, he asked
the applicants to state into the record their request that if for any reason the site plan
would fail, the conditional use which might be granted that evening would then
become void. Zwick made a motion to approve the request for a conditional use
approval with the condition that if the site plan would be denied, such approval would
be void. The motion was seconded and passed by a vote of 8 -0 with Zwick voting in
favor of the motion.
Approximately two weeks later, on October 7, 1996, Zwick contacted Timothy
Fosnight and asked to meet him at the Property. Zwick indicated that he needed a
payment at that time, and he requested $3,000. Zwick told Fosnight that the money
was going to be used to buy playground equipment. Fosnight prepared a check in the .
amount of $3,000. The memo portion of the check indicates "donation rewrite .
playground fund." Zwick told Fosnight to make the check payable to "CSC." Fosnight
did not know what CSC was, but he believed that it was part of North Hills Affordable
Housing. Fosnight did not know that CSC was Zwick's business.
At the October 24, 1996 meeting of the Ross Township Planning Commission,'
the final site plan approval for the Fosnight Retirement Home was recommended
pending and subject to compliance by the Fosnights with the list of conditions that
was to be developed at a site visit scheduled for October 26, 1996.
Also, on October 24, 1996, Zwick again contacted Timothy Fosnight and
indicated that he needed additional funds in the amount of $1,500 regarding the
project. Zwick told Fosnight that he had to go pick up some equipment quickly to do
some work for the Center. Fosnight issued a check payable to cash in the amount of
$1,500. The check was made payable to cash at the request of Zwick.
On November 12, 1996, the Ross Township Board of Commissioners
considered the final site plan approval for the Fosnight Retirement Home. The motion
was made by Zwick to approve the final site plan. The motion passed by a vote of 5-
3. Zwick did not participate in the vote.
After Timothy Fosnight's checks were returned from the bank as canceled
checks, he became concerned that the payments he was making were not going to
North Hills Affordable Housing. The first check had been altered such that the name
"Jim Zwick" had been written beside the letters "CSC" on the "pay to the order of"
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 54
line. The second check had been altered on the notation line, and the check had been
endorsed by Zwick.
In fact, both the $3,000 check and the $1,500 check were deposited into an
account bearing the number 05-23-70291. That account is one of Zwick's personal
bank accounts, completely unrelated to North Hills Affordable Housing. No checks
were written from this account to the Benedictine Place or to North Hills Affordable
Housing. The $4,500 paid by the Fosnights was not given to North Hills Affordable
Housing, but rather was used for personal purposes.
As a result of the concerns generated by the canceled checks, Timothy and
Lynn Fosnight, Sandy Harvey, and Aaron Fosnight met with the Executive Director of
North Hills Affordable Housing, Judy Eakin, on December 9, 1996. The Fosnights
were advised that Zwick was affiliated with the organization, but that the Fosnights'
funds were going to be used for telephone equipment rather than a playground facility.
By way of background, the North Hills Affordable Housing Board had discussed
the acquisition of a telephone system prior to November, 1996. Zwick had advised
Judy Eakin that the Fosnights were going to donate a telephone system for North Hills
Affordable Housing. Eakin understood from Zwick that the Fosnights would actually
supply the equipment and that North Hills Affordable Housing would have to pay for
the cabling and installation. Eakin was advised that the donation would be worth
about $11,000. Eakin was not aware that the donation was made by the Fosnights
only after Zwick had made such donation a condition of obtaining Township approval
for the Retirement Home.
Furthermore, at the time she met with the Fosnights, Eakin was also not aware
that the Fosnights had already paid $4,500 to Zwick under the guise of being
donation to North Hills Affordable Housing. North Hills Affordable Housing never
received those funds.
After the meeting with Judy Eakin, Timothy Fosnight issued a check in the
amount of $2,500 to North Hills Affordable Housing. This was in response ,to a'_
specific request from Zwick for the $2,500 so that the work on the cable and phone
system could be continued. Zwick regularly called the Fosnights in order to remind
them that they had agreed to make contributions to projects in which he had an
interest and that he had agreed to assist them in making sure that their proposals were
approved by the Township. Zwick advised the Fosnights that he was keeping his part
of the bargain and that they must continue to do their part.
On January 3, 1997, one more payment was made by the Fosnights. The
check was in the amount of $3,500 to North Hills Affordable Housing. In this case
as well, Zwick had contacted Fosnight and specifically requested funds in the amount
of $3,500. Zwick indicated that he needed the funds to pick up equipment and Zwick
picked up the check at Fosnight's house. After the January 3, 1997 payment, Zwick
continued to contact the Fosnights requesting that additional funds be paid by them.
To date, the Fosnights have not paid any additional funds.
The $6,000 which North Hills Affordable Housing received from the Fosnights
was immediately turned over to Zwick at his specific request. According to Zwick,
these funds were needed to purchase equipment for the telephone system.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 55
Additional funds were also turned over to Zwick by North Hills Affordable
Housing based upon Zwick's representations in his purported role as intermediary
between the Fosnights, North Hills Affordable Housing, and the various vendors that
would provide the telephone equipme t and perform the cabling and installation. The
total amount of checks issued to Z ick by North Hills Affordable Housing for the
telephone system was $21,480.
The final two checks that were issued to Zwick by North Hills Affordable
Housing (totaling $7,740.50, and included in the above amount) were issued because
Zwick told Eakin that two other checks that had been issued to him could not be used
because they were made out to him personally rather than to Jim Zwick's
Communications Systems. Zwick told Eakin that he would return the funds to her and
he specifically asked that a new check be issued to him payable to "Jim Zwick
Communications Systems." As a result of his specific request, North Hills Affordable
Housing issued two more checks in amounts equal to those of the prior checks. At
the same time, Zwick issued a check to North Hills Affordable Housing in an equal
amount. The account from which this check was issued had been opened by Kimberly
Weis (Weis), a friend of Zwick, at Zwick's specific instruction and direction. Although
Weis' name appeared as the signatory on the check issued to North Hills Affordablle
Housing, she did not sign the check and she did not give anyone authorization to sign
her name on the account. Thus, the check was ultimately refused payment by the
bank due to the irregular signature, and North Hills Affordable Housing did not receive
the funds. Consequently, North Hills Affordable Housing paid a total of $21,481 for
a telephone system for which they were only supposed to pay $14,810.50. The
difference calculates to be $6,670.50 — an amount well in excess of the $6,000 sum
that had been paid to North Hills Affordable Housing by the Fosnights and immediately
turned over to Zwick.
The Findings of the Investigative Complaint as they are deemed admitted by
Zwick include that the $10,500 that Zwick solicited from the Fosnights was solicited
and received based upon Zwick's specific understanding that his official action, •
judgment and decision regarding the Township's consideration of the Fosnight
Retirement Home would be influenced thereby (See, Finding 107).
In addition to the above, Zwick sold telephone equipment to the Fosnights for
use in their business enterprise. Sometime after the Commissioners' meetings on
September 9, 1996 and October 22, 1996, Fosnight had contacted Zwick regarding
the potential purchase of a cordless telephone. Fosnight had learned that Zwick dealt
in telephone systems during the site review meeting that took place on or about
September 12 or 13. The Fosnights needed an additional cordless telephone that
would adapt to their system at the retirement facility. As a result of this contact,
Zwick sold the Fosnight Retirement Home a cordless telephone and accessories for a
total cost of $549.92. The transaction occurred through BC Communications with
whom Zwick was employed at the time. At the time that Zwick sold this telephone
to the Fosnight Retirement Home, he had actively participated in the Township Board
of Commissioners' review of the Fosnights' conditional use approval request.
Sometime after the November vote on the final site plan approval, Zwick told
Fosnight that he was interested in submitting a proposal to sell the Fosnights a
telephone system for the nursing . home that they were seeking to build in Ross
Township. Zwick subsequently contacted the Fosnights during the week of February
10, 1997 and inquired further as to whether they had received the plans for the
completion of their nursing home as he was interested in bidding on the installation of
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 56
the telephone system. Zwick continued to contact the Fosnights on a regular basis
thereafter regarding this matter.
The second factual scenario involves the Coppola Day Care Center (Findings
108 - 154).
In early 1996, Dr. Matthew Coppola and his wife, Carmella, initiated the process
to open a day care center out of their residence in Ross Township. On March 14,
1996, the Ross Township Zoning Hearing Board approved a related variance
recommending approval for Dr. Coppola to operate the day care facility with 50 child
care spaces and additional room for administrative personnel.
On April 25, 1996, the Ross Township Planning Commission voted unanimously
to approve a related request for conditional use.
On May 13, 1996, the Ross Township Board of Commissioners considered the
Coppolas' request for a conditional use approval regarding the day care facility. In that
meeting, Zwick questioned whether the Coppolas would require additional taps from
the sewer authority. Other Commissioners expressed concern over ingress and egress
to the property. The Board voted to table the request to allow additional time so that
the expressed concerns could be investigated. A final vote was scheduled for May 28,
1996. The motion passed by a vote of 8 -1, with Commissioner Raida voting no.
After the request for conditional use approval had been tabled, Dr. Coppola
contacted an associate to discuss the situation. The associate advised Coppola to
contact Zwick to see if Coppola could get a better understanding of exactly what the
Board would need in order for the proposal to be successfully considered.
Shortly thereafter, Coppola contacted Zwick and at Coppola's suggestion,
Coppola and Zwick agreed to meet. Zwick was given a tour of the Rose Valley
Personal Care Home, a facility owned by Coppola. Zwick and Coppola then had lunch.
During the course of lunch, Zwick and Coppola discussed various aspects of the day
care facility. Zwick advised Coppola that he believed the day care facility was a good'-
project and much needed. Zwick advised Coppola that the main opponent to kris
project was Kim Weigand. Zwick paid for lunch.
During the drive back from the restaurant, Zwick asked Coppola if he would be
interested in sponsoring a basketball team for a summer league that was operated by
Zwick. Coppola indicated that he would be interested in doing such.
Back at Coppola's office, Zwick gave Coppola advice regarding the issues that
needed to be addressed for the Board of Commissioners to successfully consider the
proposal. Zwick stressed the ingress /egress, visibility, and sewer tap issues. Coppola
believed that Zwick was involved with the sewer authority and would be important for
him in getting the sewer taps approved if necessary.
As Zwick was preparing to leave, the issue of the basketball league arose.
Coppola instructed his office manager to prepare a check for Zwick as a sponsorship
fee for a basketball team in Zwick's league. Coppola believed that Zwick would
request approximately $200 or $300 to sponsor a basketball team, based upon
Coppola's past experiences in sponsoring other types of sporting teams. Coppola
proceeded into his inner officer while the office manager prepared the check. The
office manager asked Zwick the amount of money for which the check was to be
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 57
prepared and Zwick indicated that it was $3,500. The office manager prepared the
check, dated May 21, 1996, payable to Zwick in the amount of $3,500. The notation
at the bottom of the check indicates "Summer basketball league." Coppola learned of
the actual amount of the check later that evening after Zwick had left the office.
Zwick solicited the $3,500 donation from Coppola eight days after he had voted to
table the Coppola day care facility conditional use approval request.
Coppola's check in the amount of $3,500 was endorsed by Zwick and cashed
two days after it had been issued.
A few days later, on May 28, 1996 — the day of the Ross Township
Commissioners meeting — Zwick contacted Commissioner Weigand at her place of
employment. Zwick called on behalf of the Coppola Day Care Center to seek
Weigand's support for that project. Zwick expressed concern that Weigand would
sway others to vote against Coppola. That same day, Zwick contacted Coppola and
arranged for a medical appointment for the next day.
At the May 28, 1996 public meeting of the Ross Township Board of
Commissioners, Coppola's conditional use request was considered by the Board of
Commissioners. Initially, the issue was removed from the table by a unanimous vote.
Zwick was not present at the time. During the meeting, Weigand reported upon her
review of the proposed day care facility location. Coppola advised that he had learned
he would need an additional sewer tap for the proposed day care facility and he
indicated that he had contacted the proper authorities to initiate the approval of same.
Zwick arrived during the course of the Commission's consideration of the day
care facility proposal. Zwick's comments as reflected in the minutes of the meeting that he was very impressed with the manner in which Dr. Coppola's existing
facility (the old age home) was run and that if it was any indication of how Dr.
Coppola operates a facility, the Board could "rest comfortably." Zwick made the
motion to approve the conditional use application for the Coppola Day Care Facility.
The motion was approved 8 -1 with Commissioner Weigand voting in the negative and
Zwick voting in favor of the motion. The vote occurred Tess than a week after Zvvick'.
solicited the $3,500 donation from Coppola.
The following day, May 29, 1996, during Zwick's scheduled appointment at Dr.
Coppola's office, Zwick commented to Coppola that his sister was getting married and
that he needed money because his father could not afford to give her a wedding. He
told Coppola that he had an annuity that was maturing and valued at $20,000, and
Zwick specifically requested that Coppola loan him funds in order to help him with his
sister's wedding. Zwick indicated that he would repay Coppola within thirty days as
soon as his annuity matured. Although Coppola initially advised Zwick that he could
not provide that kind of money to Zwick, after Zwick persisted, Coppola agreed to
provide him with funds in the amount of $10,000 for use in relation to Zwick's sister's
wedding. As a result, Coppola provided Zwick with funds totaling $10,000 within
four days of Zwick making the motion and casting his vote in favor of Coppola's day
care facility as noted above.
Dr. Coppola and Zwick executed a document evidencing the loan which
document is dated May 29, 1996. Zwick was to repay the $10,000 to Coppola
within 6 -10 weeks. There was no provision for any interest or other fee for the loan.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 58
Zwick and Dr. Coppola had no prior social or business relationship. Dr. Coppola
had never loaned Zwick any funds prior to his request for the $10,000. Zwick had not
been a patient of Dr. Coppola prior to the solicitation or receipt of such funds or after
same. Furthermore, Zwick never paid for any of the services rendered by Coppola.
Although the loan agreement required Zwick to repay Coppola within 6 -10
weeks, Zwick failed to do so. Coppola called Zwick several times in an attempt to
obtain his funds. Thereafter, on September 23, 1996, a representative of the State
Ethics Commission contacted Dr. Coppola to arrange to interview Coppola with regard
to his dealings with Zwick. The interview was scheduled for October 2, 1996. On
that very day, Zwick issued a check in the amount of $5,000 payable to Dr. Matthew
Coppola. Thereafter, on October 14, 1996 (after the interview with the representative
of the State Ethics Commission), Zwick issued a second check in the amount of
$5,000 payable to Dr. Matthew Coppola. That check was not negotiated based upon
an insufficiency of funds. Zwick did eventually pay Dr. Coppola the remaining funds
in cash on three occasions between October 22 -29, 1996. The $10,000 was repaid
by Zwick to Dr. Coppola after he learned of the State Ethics Commission investigation.
The Findings of the Investigative Complaint as they are deemed admitted Icy
Zwick include the following. Zwick solicited funds from Dr. Coppola at a time when
Zwick was actively participating in the Township's consideration of a project for which
Qr. Coppola needed Township approval. Zwick solicited funds from Dr. Coppola on
days and at times that were close in proximity to the dates that Zwick participated in
the Township's review of Dr. Coppola's project.
Finally, the Findings of the Investigative Complaint as deemed admitted by
Zwick include that the $13,500 that Zwick solicited from Dr. Coppola was solicited .
and received based upon Zwick's specific understanding that his official action,
judgment, and decision regarding the Township's consideration of the Coppola Day
Care facility would be influenced thereby.
As for the basketball league, the Jim Zwick Basketball League was not affiliated
in any way with Ross Township. The Jim Zwick Basketball League was a private'-
endeavor. All funds solicited and received by Jim Zwick as noted above and below
herein regarding the Jim Zwick Basketball League were personally obtained by Jim
Zwick. Zwick maintained custody and control of all funds received in relation to the
basketball league. Zwick utilized said funds for his own personal purposes.
The third factual scenario relates to the Lowries Run Joint Operating Committee
and Buchart-Horn, Inc. (Findings 155 -221).
The Lowries Run Joint Operating Committee (Joint Operating Committee) is
comprised of representatives from the McCandless Township Sanitary Authority and
Ross Township. The Operating Committee was formed by written agreement in July,
1995 for the purpose of operating a section of the Lowries Run Sewage Trunk Line
which is owned jointly by Ross and McCandless Townships. In 1996 and 1997,
Zwick was one of the two Ross Township representatives to the Joint Operating.
Committee. He specifically served on the Joint Operating Committee as part of his
official position as a Ross Township Commissioner.
After the Lowries Run Joint Operating Committee had been formed, a consulting
engineer was to be selected. One of the applicants for the consulting engineer position
was Buchart-Horn, Inc. Zwick was adamantly in favor of selecting Buchart-Horn as
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 59
the Operating Committee's consulting engineer. The other Committee Members
deferred to Zwick's choice even though they wanted another engineering company.
On October 30, 1995, Buchart-Horn, Inc. was selected as the consulting engineer for
the Lowries Run Operating Committee. Payments made to Buchart-Horn, Inc. for
services rendered were made in accordance with the check issuing policies established
by the Joint Operating Committee. See, Finding 160.
The Joint Operating Committee maintains a checking account at the Pittsburgh
National Bank. All of the checks issued by the Joint Operating Committee representing
the expenditure of funds by it allowed for four signatures. Prior to November, 1996,
Ross Township Manager Thomas Lavorini regularly signed such checks on behalf of
Ross Township. Zwick and Kimberly Weigand, the other Ross Township
Commissioner serving on the Joint Operating Committee, did not regularly sign checks.
In November, 1996, Zwick advised the McCandless Township Sanitary
Authority Business Manager, John Flaherty, that from that time forward, checks issued
from the Lowries Run Joint Sewer Fund account required the signatures of the four
Committee Members. Flaherty did not attend Committee meetings. Flaherty believed
that the decision to have all four Committee Members sign checks had been decided
by the Committee and accordingly, he acted on Zwick's direction. Flaherty received
no direction about any such change in the check signing procedure from the other
Committee Members, and in fact, the other three Members of the Joint Operating
Committee were not aware that the change in the check signing procedures had been
initiated by Zwick.
Then, in January of 1997, Zwick used his official position to redirect the billing
process for the Joint Operating Committee. Zwick contacted Diane Vesley, an
Engineer Project Manager for Buchart-Horn, Inc., and advised her that the Operating
Committee had set up new procedures for making payments to Buchart-Horn. Zwick
informed Vesley that there were questions as to expenses and the sharing of expenses
by the two Townships, and that as a result, the Members of the Joint Operating
Committee were going to take a more active role in reviewing and approving
payments. Zwick told Vesley that she should no longer send her progress reports and'-
invoices directly to the Joint Operating Committee as she had done in the past. Zwick
told her that all progress reports, letters and invoices should be mailed to Zwick before
being presented at the meeting. Zwick would then obtain the check for payment to
Buchart-Horn and deliver it to Al Kozel in Buchart- Horn's Pittsburgh office.
Although Zwick advised Vesley that this policy had been implemented by the
Joint Operating Committee, such in fact never occurred. The Joint Operating
Committee never authorized a change in payment procedures for Buchart-Horn and the
Joint Operating Committee Members were not aware that Zwick was obtaining
invoices from Buchart-Horn prior to their being presented at the meetings for payment.
As noted above, Zwick had used his official position to change the Joint
Operating Committee's check issuance procedures (See, Findings 161 -163). As a
result of that change, and based upon Zwick's insistence, only Committee Members
were to sign checks. Kim Weigand was unable to attend various meetings because
of her work schedule. Zwick offered to take checks that required Weigand's signature
to her after the other Committee Members had signed them. Zwick was required to
return a duplicate of the check at the next Committee meeting. This process was
used when Kim Weigand was unable to attend and thus unable to sign checks that had
to be issued.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 60
On January 7, 1997, the Joint Operating Committee issued a check to Buchart-
Horn, Inc. in the amount of $4,595. Zwick was to obtain Weigand's signature and
deliver the check to Buchart-Horn, Inc. for work performed for the Joint Operating
Committee. Although the check bears a signature for Kimberly Weigand, Weigand, in
fact, did not sign the check. Furthermore, the check was deposited into a bank
account in the name of Buchart-Horn, Inc. which Zwick had his friend (Kim Weis) open
at the National City Bank of Pennsylvania. The check is endorsed on the back by
Buchart-Horn, Inc., Robert Weis, and Kimberly J. Weis. The $4,595 check was used
to open up the account. In directing Weis to open the account, Zwick specifically
instructed Weis not to associate his name with this account. However, Weis
disregarded Zwick's instruction and did in fact list his name as a signer on the account.
Weis endorsed the check with her signature. The name of Robert Weis was already
on the back of the check, and Kimberly Weis was not aware of who he was or of who
had signed that name.
After the account had been opened, Weis provided Zwick with the starter
checks which Zwick asked her to sign in blank. Weis complied. Weis had no further
dealings with the account, made no deposits into it, and received no funds from it.
Zwick wrote out and signed checks disbursing funds from the account. He used
the funds in the account to in part pay his bills. Weis' signature was forged on some
checks issued from this account.
The funds in the amount of $4,595 paid by the Lowries Run Joint Operating
Committee were in payment of an invoice that had been submitted by Buchart-Horn,
Inc. on January 6, 1997 for services rendered. Obviously, Buchart-Horn, Inc. did not
receive the Joint Operating Committee's payment for the invoice. On April 2, 1997,
Vesley received a 60 day overdue notice from Buchart- Horn's accounting department
and subsequently contacted Zwick. Zwick provided Vesley with various different
explanations for the situation. Vesley eventually left a voice mail message with Zwick
threatening to go to the Joint Operating Committee to get a copy of the canceled
check to Buchart-Horn. Zwick subsequently called her back and advised her that the
check had in fact been canceled and she should not call the Operating Committee. 's
Later on the same day, Zwick contacted Vesley and explained that the payment had
been returned to him in the mail and that he had sent a new check the day before.
Zwick told Vesley several different stories regarding the issuance of the check to
Buchart-Horn, none of which were true.
The Findings of the Investigative Complaint as deemed admitted by Zwick
include the following.
James Zwick, in his official capacity and as a result of the authority of his
office, obtained funds from the Lowries Run Joint Operating Committee and diverted
them to his own personal use. The bank account in the name of Buchart-Horn, Inc.
which was opened by or at the direction of Zwick was opened for the purpose of
diverting funds from the Joint Operating Committee to Zwick's personal custody and
control. That account has no connection with the firm of Buchart-Horn, Inc., and
indeed, officials of that firm were unaware of the account and were not familiar with
Kimberly Weis.
Moreover, Zwick solicited funds from Buchart-Horn, Inc. — ostensibly for the
purpose of being used as campaign contributions — at a time when that entity served
as the Lowries Run Joint Operating Committee engineer or as a consulting engineer for
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 61
Ross Township itself. As a result of Zwick's said solicitation, Buchart-Horn issued
three checks totaling $1,100 from its political action committee between March 14,
1995 and December 17, 1996. One of the checks was cashed at a gas station. The
other two checks were deposited into a bank account in the name of Democratic Party
of Ross Limited, a private account opened by Zwick.
Democratic Party of Ross Limited was not an authorized political committee in
the Commonwealth of Pennsylvania. Democratic Party of Ross Limited is not an
authorized political action committee or registered campaign committee. Although the
Committee to Elect Ross Democrats is a registered political committee, the funds were
never turned over to that entity. Zwick converted the funds to his own use.
In addition to soliciting political contributions, Zwick also solicited the
sponsorship of a basketball team in 1994 and 1995 by Buchart-Horn, Inc. Buchart-
Horn authorized contributions to the Jim Zwick summer basketball league as follows.
Payment in the amount of $300 was made by Buchart-Horn, Inc. for this purpose on
August 5, 1994, less than one month after Buchart-Horn was first hired by Ross
Township. Another payment in the amount of $250 was made December 12, 1995.
Both checks were cashed by Zwick and were not deposited into any bank accounts.
The funds solicited by Zwick from Buchart-Horn, Inc., at a time when that entity
served as the operating engineer for the Lowries Run Joint Operating Committee or s
the consulting engineer for Ross Township, were utilized for personal purposes by
Zwick.
The fourth factual scenario relates to the Admiral Lawn Maintenance Service
(see, Findings 222 -239).
During the spring or early summer of 1996, T. Justin Ruff (Ruff), who is the
owner of Admiral Lawn Maintenance Service in Wexford, Pennsylvania, was contacted
by Zwick. Zwick inquired as to whether Ruff could perform lawn maintenance work;
at Denny Park. Ruff advised Zwick that he probably could do the job and Zwick asked
to meet Ruff at the park the following day. When they met, Zwick advised Ruff, that
he was required to post a performance bond in the amount of $2,500. Ruff asked
Zwick to whom the check should be made payable and Zwick indicated that he was
uncertain. Zwick told Ruff to leave the payee portion of the check blank. Ruff issued
two checks in payment of the performance bond requested by Zwick. The first check
was in the amount of $1,000 and the second check was in the amount of $1,500.
Bank records show that both checks were endorsed by "Jim Zwick" and that both
checks had written in the "pay to the order of" line, "Jim Zwick."
The funds collected by Zwick from Ruff were not turned over to the Township.
The funds were retained personally by Jim Zwick.
In fact, the Township did not require any performance bond for the work in
Denny Park performed by Ruff. The Township requires performance bonds only in
circumstances where the services rendered will be in excess of $10,000. Even where
a bond is required, it is in the amount of 10% of the project, which in this case, would
have been only $250 since the work involved was in the amount of $2,500. Ruff was
not aware of the correct procedures for submitting performance bonds at the time that
he gave Zwick the two checks.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 62
After Ruff performed the work at Denny Park, he anticipated the return of his
$2,500 performance bond. Ruff received payment for the work he performed (also in
the amount of $2,500), but he did not receive a return on the performance bond.
Ultimately, Zwick repaid the funds to Ruff in small increments over a period of
time. All of the funds were repaid to Ruff by October, 1996.
In addition to the above, Zwick would often advise Ruff that other Township
jobs were being placed out for bid proposals. Zwick indicated that Ruff would need
to put up a bond in order to be considered for these jobs. Ruff never paid any of the
requested funds.
Zwick also suggested that Ruff should make donations to him in the form of
ticket purchases. Zwick implied that if Ruff did not make the donations or purchases
as indicated, he would not receive Township work. On one such occasion, after Zwick
continually and persistently called him, Ruff relented and issued a check in the amount
of $250 payable to Zwick which funds Zwick advised Ruff would be a donation to
raise money for the election.
The Findings of the Investigative Complaint as deemed admitted by Zwick
include the following. Zwick used the authority of his official position as Township
Commissioner to obtain funds classified as a performance bond from a contractor
doing work for the Township and failed to turn said funds over to the Township.
Zwick converted said funds for his personal use. Zwick solicited funds from T. Justin
Ruff in the form of donations and fund raising ticket purchases based upon Zwick's
understanding that Ruff would receive Township work based upon said payment.
The fifth factual scenario relates to Greenfield Lawn Care Company (Findings
240 -258).
Greenfield Lawn Care Company of Sewickley, Pennsylvania is owned and
operated by Craig and Rebecca Mergenthaler. Zwick was aware that Mergenthaler
was involved in lawn care work and suggested that he bid on work for Ross Township.'-
Zwick provided Mergenthaler with information related to bidding for such work:
In December, 1995, Zwick contacted. Mergenthaler and indicated that he needed
money right away for a performance bond so that Mergenthaler could bid on the 1996
Township work. Zwick insisted that the money was needed immediately.
Mergenthaler provided Zwick with a post -dated check in the amount of $3,500. The
check was issued to Zwick with the payee section of the check left blank, and with
a designation in the memo portion of the check of "bid bond." The check was
endorsed by Zwick and cashed at PNC Bank. When the canceled check was returned,
the name Jim Zwick had been inserted as the payee and the memo portion of the
check had been altered.
Several months later, Zwick contacted the Mergenthalers again and informed
them that the Township had changed its policies regarding bid bonds and that the
$3,500 check which they had previously issued would be returned to them. Zwick
indicated that a $1,500 check would be required, but that the Township could not
issue them a check for the difference between the two amounts. Zwick advised the
Mergenthalers that they would get a new check in the amount of $3,500 but that they
would have to supply the additional $1,500 in the interim.
wi k, 96- 071 -C2, 96- 088 -C2, 97 -024-C2
Page 63
Thereafter, at Zwick's request, Rebecca Mergenthaler issued a check in the
amount of $1,500 payable to Ross Township. When the canceled check was
returned, the words "Comm. Jim Zwick" had been inserted on the payee line after the
words "Ross Township." Consequently, the check appeared to have been made
payable to Ross Township Commissioner Jim Zwick. The check was endorsed by Jim
Zwick and by a former Chief of Police for Ross Township.
Rebecca Mergenthaler became suspicious and contacted the Township regarding
the bid bond policies. Zwick was present and got on the telephone. He told Rebecca
Mergenthaler not to call the Township anymore. He advised her that the Township
Manager wanted his own people (referring to certain political allies) to cut the grass
for the Township, and that they should not talk to him because he would not help
them. Zwick also contacted Craig Mergenthaler and told him to tell his wife not to call
the Township any more.
Subsequently, the Mergenthalers bid on another project in Ross Township at
which time they learned of the true bid bond requirements. The Township did nqt
require any performance bond for the work performed by Craig Mergenthaler.
The Findings of the Investigative Complaint as deemed admitted by Zwidk
include that Jim Zwick used the authority of his official position as a Township
Commissioner to obtain funds classified as a performance bond from a contractor
doing work for the Township and failed to turn said funds over to the Township.
Zwick converted said funds to his personal use.
After persistent contacts to Zwick, the Mergenthalers eventually received a
return of their funds from him. Zwick paid the money in cash over a period of time.
The sixth factual scenario relates to Owens Motor Coach, Inc. (Findings 259
277).
In 1995, the Ross Township Board of Commissioners issued a request, for
proposals regarding the Township Senior Citizen's bus transportation program'
contract. Zwick was the Ross Township Commissioner in charge of reviewing and
processing the proposals.
On October 23, 1995, at a regularly scheduled meeting of the Township Board
of Commissioners, Zwick commented that specifications were being prepared for the
bus renewal. The opening of the bids was scheduled for November 13, 1995.
At the November 13, 1995 meeting, Zwick unsuccessfully attempted to have
the opening of the bids tabled. The bids were opened and referred to the appropriate
committee for review and recommendation.
One of the bidders was the Owens Motor Coach Company, Inc., owned by
Diana Owens and also operated by her husband, Richard Owens.
On December 11, 1995, Zwick contacted Richard Owens and stated that he
needed to discuss something with him. When Zwick arrived at the office of Owens
Motor Coach, Inc., he told Owens that he needed a donation for uniforms for his
basketball league. Owens asked Zwick how much he was requesting and Zwick
advised that $2,500 was needed. Owens was surprised by the amount requested, but
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 64
he did prepare a check in the amount of $2,500. Zwick asked Owens to leave the
check blank in the payee portion and indicated that he would fill it out at a later time.
The check was deposited into the personal account of Jim Zwick at 3:03 p.m.
on December 11, 1995. Later that same day, the Township meeting began at 7:30
p.m. (4 hours after Zwick had deposited the funds from the Owens Motor Coach
Company into his personal account). During the meeting, Zwick specifically
recommended the acceptance of one of the two proposals offered by the Owens
Motor Coach Company. Zwick then made a motion to accept the proposal, which
motion was seconded by another Commissioner. Following discussion, Zwick agreed
to amend the motion to include a requirement for a commitment letter from Owens
regarding a trade -in of the currently owned bus. Zwick's motion was again seconded.
Zwick stated the urgency of obtaining a new vehicle as soon as possible so that it
could be available for January 1, which was when the new program was scheduled
to begin. The motion passed unanimously.
The bank account into which the check from Owens was deposited was ,a
personal account in the name of James J. Zwick for which Zwick had sole signature
authority. None of the checks written from that account were issued or made payable
to any basketball league or any sporting goods store from which basketball supplies
or equipment was purchased.
307).
The seventh factual scenario relates to Christopher J. Kaclik, Inc. (Findings 278-
Christopher J. Kaclik, Inc., owned and operated by Christopher J. Kaclik
(Kaclik), is involved in general contracting and home building. In 1994, Kaclik was .
developing an office building in Ohio Township known as Shannopin Square Phase. I.
Kaclik was interested in building two office buildings in that location, Phase I and
Phase II. Although the building was located in Ohio Township, the sewer line that ran
in front of the building and which would service the building was owned by Ross ;
Township. Consequently, Kaclik had to receive approval for sewer taps from both
Ohio and Ross Townships for the building. ,
Records of Ross Township indicate that on June 13, 1994, Zwick volunteered
to sit on the committee to negotiate the Kaclik planning module. On June 27, 1994,
the Kaclik planning module was discussed and approved by vote. On August 8, 1994,
Ross Township was authorized to enter into an agreement with Ohio Township
regarding the Kaclik development. Several months after the sewer lines for Shannopin
Square I were approved, Zwick contacted Kaclik and advised him that if he ever
needed help with anything in Ross Township in the future he should contact Zwick.
Zwick advised Kaclik that he could help him out and he could get things done in
securing the sewer taps for the next building that he was planning. This contact
occurred sometime before the fall of 1994.
Subsequently, during the beginning of 1996, Kaclik initiated the process for the
development of Shannopin Square Phase II. In June of 1996, Zwick again contacted
Kaclik and again advised him that he could be of assistance to Kaclik in obtaining
sewer taps for him. During this conversation, Zwick advised Kaclik that in order to
help insure that he would get his sewer taps, it would be helpful for Kaclik to make a
donation to the Men's Summer Basketball League or some other Ross Township
Association. During this conversation, Zwick made reference to other developers in
the area and how they were having problems getting sewer taps.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 65
Kaclik indicated that if a donation were required, he would prefer to make it to
some type of youth or children's league, but Zwick insisted that the donation be made
to the Men's Summer Basketball League because Zwick was in charge of that league
for the Township. Kaclik was under the impression from Zwick that the Summer
Basketball League was operated by Ross Township. In that conversation, Zwick did
not mention the specific amount that he was requesting but did indicate to Kaclik that
he needed the money quickly.
Subsequently, Zwick constantly contacted Kaclik until Kaclik agreed to
personally meet with him. Kaclik and Zwick met approximately one week prior to July
9, 1996. The meeting took place at Shannopin Square Phase I. At the meeting,
Zwick had documents regarding the sewer modules of other developers in the area.
Zwick advised Kaclik that he had to move very quickly because these other developers
would be able to get taps before him and all of the sewer taps would be eliminated.
Zwick advised Kaclik that he had to pay for his taps immediately or they would not be
available. Zwick advised Kaclik that once he paid for the taps they would be good for
two or three years. Sewer taps from that particular area of the sewer line were indeed
limited.
During the course of the conversation with Kaclik, Zwick indicated to Kaclik that
he could insure that Kaclik got the appropriate number of votes on the Ross Township
Board of Commissioners to insure that his sewer modules would be approved and thpt
he would obtain the sewer taps he needed.
During the course of their several conversations, Zwick advised Kaclik that the
total amount of funds Kaclik would need to come up with in order to reserve the sewer
taps was $17,500, which amount would be in addition to a "donation" in the amount
of $5,000 to the basketball league which Kaclik was to make. Thus, Zwick was
requesting that Kaclik provide him with $22,500 in order to insure that he would have
sewer taps for the development of Shannopin Square II. Approximately one week
after the meeting, Zwick contacted Kaclik and specifically requested that he provide
the funds for the donation to the basketball league. As a result, Kaclik issued a check
in the amount of $5,000 payable to James Zwick. The check bore a notation's
indicating Summer League 1996 basketball. Kaclik's records indicate that he met with
Zwick on July 9, 1996 at 8:30 a.m. The check was cashed by Zwick on that same
day at 3:56 p.m.
Subsequently, Zwick continued to call Kaclik and to advise Kaclik that he needed
to come up with the rest of the funds in order to insure his sewer taps. Zwick
attempted to impress upon Kaclik the urgency of providing the funds so that he would
have the taps available for his development. As a result of Zwick's constant pressure
and comments to Kaclik that funds were necessary in order to insure his sewer taps,
Kaclik issued a check in the amount of $7,500 in partial payment of the sewer taps.
That check was issued dated July 18, 1996. Kaclik's records indicate that he met
Zwick at 2:00 p.m. on that date. At the time that Kaclik issued the check, Zwick
advised him not to fill out the portion of the check regarding the payee. Zwick advised
Kaclik that it would be made out to a special fund and he would fill out that portion
of the check for Kaclik. The funds provided by Kaclik on that date were ostensibly a
partial payment by Kaclik for the sewer taps. Kaclik was under the impression that he
would have to provide another $10,000 to Zwick in order for Zwick to reserve sewer
taps with the Township for his development.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 66
None of the funds provided by Kaclik to Zwick were deposited into any
Township bank accounts. None of the funds were utilized by Zwick in order to reserve
sewer taps. The funds that Zwick obtained from Kaclik through the use of his public
position, were converted to Zwick's personal use. When Kaclik received the
negotiated checks back from the bank, he realized that Zwick had made the checks
payable to himself and that Zwick had cashed the checks rather than deposit them into
any accounts.
Subsequently, Kaclik pressured Zwick to return the funds that he had given him.
As a result of constant pressure by Kaclik, Zwick issued a check to Kaclik in the
amount of $2,500 on May 16, 1997.
The Findings as deemed admitted by Zwick include that James Zwick solicited
funds from Christopher J. Kaclik in the form of a donation to a basketball league and
for a down payment for sewer taps for the development of a building, based upon
Zwick's specific understanding that his action, judgment or vote would be influenced
thereby.
The eighth factual scenario relates to Bernard Creedon, Jr., and the Hampton
Inn (Findings 308 -327).
Bernard Creedon, Jr. (Creedon) was the developer of the Hampton Ir)n
constructed on McKnight Road in Ross Township.
The Ross Township Planning Commission approved the Hampton Inn project in
1994. In January of 1995, Creedon received approval for his plans from the Ross
Township Board of Commissioners. During the course of his dealings with the Ross.
Township Board of Commissioners, Creedon met with Zwick on several occasions and
also spoke with him via telephone. Zwick explained to Creedon different things the
Township wanted as to the development of the building.
Shortly after Creedon's plans were approved by the Ross Township Board of
Commissioners but prior to his breaking ground, Zwick contacted Creedon, and'
requested a $5,000 donation for a basketball league. Creedon advised Zwick that :he
was not interested in donating this money to the league and Zwick then dropped the
price he was requesting to $2,500. Creedon flatly refused to pay Zwick any money
as he felt it was not appropriate.
Shortly after Creedon broke ground on the building, and prior to the completion
of the building, he received a telephone call from Zwick who was inquiring about the
telephone system that Creedon would be using in his building. Creedon told Zwick
that he had already chosen another manufacturer to supply the telephone equipment.
Zwick asked if he could bid on the cabling and installation of the system. Zwick was
permitted to submit prices for the equipment in addition to the cabling and installation.
Creedon eventually decided to obtain his telephone system through BC
Communications, Jim Zwick's employer. The Findings of the Investigative Complaint
as deemed admitted by Zwick include that the fact that Zwick was a Township
Commissioner played some role in Creedon's decision.
Immediately after the contracts were signed for the provision of the telephone
equipment and installation, Zwick continually called Creedon wanting payment for the
equipment up front and immediately. After continued pressure, Creedon paid Zwick
Zwi k, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 67
approximately $6,355.80 from his own construction accounts based upon . the
understanding that as soon as the financing of $45,000 came through for Zwick, he
would pay Creedon his money back. Financing was to be obtained through a leasing
company.
Zwick eventually received the $45,000 for the telephone system and after
constant pressure from Creedon, repaid Creedon the $6,355.80.
BC Communications, Inc. then installed the cabling system. Six or seven weeks
after the cabling was finished, BC Communications sought a down payment on the
system. BC Communications was unaware of the fact that Zwick had already been
paid $45,000 representing payment in full for the job.
Zwick failed to turn the $45,000 over to BC Communications and BC
Communications refused to install the phone system in the Hampton Inn.
The Findings of the Investigative Complaint as deemed admitted by Zwick
include the following.
James Zwick solicited donations from Bernard Creedon, ostensibly to be used
in his basketball league, at a time when Creedon had just received approval from the
Township Board of Commissioners, where Zwick participated as a Township"
Commissioner in actions relating to Creedon.
Zwick solicited Bernard Creedon for the purpose of obtaining a contract to install
a telephone system in a development project being constructed by Creedon (which
required the Ross Township Commissioners' approval), at a time in close proximity to
when Zwick was participating in actions relating to this same project as a Township.
Commissioner.
As previously noted, James Zwick solicited funds in the form of donations to
a Men's Basketball League from the following individuals who had matters pending,
before the Township Board of Commissioners at a time in close proximity to when, said"
donations were solicited by Zwick: Dr. Matthew Coppola, Buchart-Horn, Incorporated,
Christopher J. Kaclik and Bernard Creedon.
The ninth factual scenario relates to the Masonic Fund Society (Finding 328).
Zwick solicited and received a $1,500 donation towards the basketball league
from the National Development Company, a consulting firm hired by the Masonic Fund
Society to handle the development of the Greater Pittsburgh Masonic Lodge on
Cemetery Lane in Ross Township.
The solicitation by Zwick was made shortly after the Masonic Society had
received approval from the Township Board of Commissioners on their final site plan
relating to the Greater Pittsburgh Masonic Center.
Zwick had actively participated in the Township Commissioners' review of the
Masonic Center Development Plan.
Having summarized the above relevant facts, we must now determine whether
the actions of Zwick violated Sections 3(a) and 3(c) of Act 9 of 1989. We find
numerous such violations.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 68
With regard to the first factual scenario, involving the Fosnight Retirement
Home, we find violations of both Section 3(a) and Section 3(c) of the Ethics Law.
With regard to Section 3(c), it is clear that Zwick solicited $15,000 — of which
he ultimately received $10,500 — from the Fosnights based upon Zwick's specific
understanding that his official action, judgment and decision regarding the Township's
consideration of the Fosnight Retirement Home would be influenced thereby. Zwick's
solicitations were made in no uncertain terms. Zwick made it abundantly clear to the
Fosnights that he would either tie up their plans and require them to expend thousands
of dollars, or he could help them get their project through easily if they would
cooperate with his request for "donations" to the "personal projects" in which he was
interested. For example, as to the traffic study, Zwick indicated that he could request
a traffic study and that such would not be unusual and no one would question why he
was doing it. On the other hand, he could save the Fosnights $15,000 by simply
requesting that the Township use one of the other traffic studies that had already been
completed for the same intersection. Zwick assured the Fosnights that if they
cooperated with his "requests," he would obtain the necessary votes on the Board to
approve their project, and he could assure the Fosnights that the conditional us,e
approval request and final site plan would be approved. Such constitutes clear and
convincing evidence that Zwick violated Section 3(c) as to the aforesaid solicitations
of funds from the Fosnights. Kasaback, Order No. 993; Yezzi, Order No. 825. ,
We also find a violation of Section 3(a) as to the above solicited funds. Rankin,
Order No. 806. Zwick repeatedly used his authority as a Township Commissioner to
advance his prospects in obtaining the solicited funds. By vehemently opposing the
project when it was initially presented to the Ross Township Board of Commissioners
on September 9, 1996, and by seconding the motions and voting in favor of tabling
the Fosnights' request, Zwick set the stage for his subsequent solicitations. Zwick .
effectively demonstrated to the Fosnights his ability to affect the success of their
project. He also delayed approval of the conditional use which gave him time to
approach the Fosnights with his demands before the Board would take any meaningful
action as to their project.
Zwick used the authority of his office in arranging the meeting with the
Fosnights. Zwick set the price to be extracted from the Fosnights at $15,000.
Thereafter, at the September 23, 1996 meeting of the Board of Commissioners,
Zwick again used the authority of his office by: (1) making a motion and voting to
remove the matter of the Fosnight Retirement Home request for a conditional use
approval from the table; (2) commenting that he had met with the applicants and was
now comfortable with their request; (3) requesting that the Fosnights state into the
record as their request that if for any reason the site plan would fail, the grant of the
conditional use would be void; and (4) making a motion and voting to approve the
Fosnights' request for conditional use approval with the condition that if the site plan
would be denied, such approval would be void. These actions further demonstrated
to the Fosnights Zwick's ability to affect the success of their project.
Zwick extracted from the Fosnights their first two payments totaling $4,500.
He received these payments prior to the Ross Township Board of Commissioners'
consideration of the final site plan approval for the Fosnight Retirement Home. The
Fosnights having partially complied with Zwick's demands, at the November 12, 1996
meeting, Zwick made the motion to approve the final site plan. Zwick's abstention
from the actual vote is of no legal consequence in Tight of his repeated uses of
Zwick, 96- 071 -C2, 96- 088 -C2, 97 -024-C2
Page 69
authority of office as set forth above. Use of authority of office is more than the mere
mechanics of voting and encompasses all of the tasks needed to perform the functions .
of a given position. See, Juliante, Order No. 809. Use of authority of office includes,
for example, discussing, conferring with others, and lobbying for a particular result.
After the Board had approved the Fosnights' final site plan, Zwick repeatedly
contacted the Fosnights demanding more money and reminding them to complete
"their part of the bargain."
The element of a private pecuniary benefit consists of the solicited funds, of
which $10,500 was ultimately received by Zwick. The first $4,500 was provided to
Zwick directly. It was in fact used for personal purposes, and North Hills Affordable
Housing neither received it nor was even aware that it had been paid.
The final two payments which the Fosnights tendered and which totaled $6,000
were made payable to North Hills Affordable Housing but were immediately turned
over to Zwick.
As to the telephone system for North Hills Affordable Housing, Zwick cheated
North Hills Affordable Housing itself out of more than $6,000. Consequently, North
Hills Affordable Housing never benefitted from any of the Fosnights' donations.
Each element of a Section 3(a) violation is clearly established. Zwick repeatedly
used the authority of his office for the private pecuniary benefit of himself, as to his
solicitations to the Fosnights for "donations." To the extent one could argue that
North Hills Affordable Housing received any benefit from the $6,000 paid directly to
it by the Fosnights, given Zwick's status as a Board Director, North Hills Affordable
Housing would appear to be a "business with which he is associated," such that the
Section 3(a) violation is established in any event.
With regard to Zwick's sale of a cordless telephone to the Fosnights (see,
Findings 100 -102), we find no violation of Section 3(c) in that there was no element .
of any improper understanding as to that particular transaction. Likewise, we find no's
violation of Section 3(a). We do not have any time frame to enable us to effectively
determine when Zwick's contacts as to this transaction and the subsequent sale
occurred in relation to the Ross Township Board of Commissioners' review of the
conditional use approval request. Finding 100 indicates that Fosnight contacted Zwick
as to the purchase of a cordless telephone sometime after October 22, 1996. Finding
102 reveals that at the time Zwick sold the telephone to the Fosnights he had actively
participated in the Township Board of Commissioners' review of the conditional use
approval request. This transaction may have occurred when there were no further
matters related to the Fosnights pending before the Board of Commissioners.
Moreover, it would appear that the telephone was for the Fosnights' existina facility,
rather than for the proposed new facility. Therefore, based upon the evidence before
us, we find no violation of Section 3(a) as to the sale of the cordless telephone by
Zwick to the Fosnights, because a related use of authority of office has not been
established.
As for Zwick's attempt to sell the Fosnights a telephone system for the new
nursing home (see, Findings 103 -104), we find no violation of Section 3(c) since there
was no element of any improper understanding. However, we do find a violation of
Section 3(a). Zwick's repeated uses of the authority of his office as to the Township's
review of the nursing home, which included ultimately making the motion and voting
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024-C2
Page 70
in favor of approval of the final site plan, advanced Zwick's prospects for a later sale
to the Fosnights of a telephone system for that facility. But for the approval of the
project, there would have been no new nursing home for which such a sale could be
made. It is clear that the first contact made by Zwick as to the prospective sale of the
telephone system was made within the first few months after the November vote
approving the final site plan. Based upon the facts in this case, we have no doubt that
such a future sale to the Fosnights was part of Zwick's scheme all along. The facts
do not reveal whether the sale actually occurred, but either way, the violation of
Section 3(a) is established. A use of the authority of office in an attempt to obtain a
prohibited private pecuniary benefit is all that is required. Taylor, Order No. 983.
Turning to the second factual scenario involving the Coppola Day Care Center,
we find violations of both Section 3(a) and Section 3(c).
•
With regard to Section 3(a), Zwick repeatedly used the authority of his office
as to the Coppola Day Care Center. The most significant uses of authority of office
occurred on and after the day that Zwick solicited the $3,500 "donation" to the so-
called "basketball league." On that day, Zwick met with Coppola, discussed various
aspects of the day care project, and advised Coppola regarding the issues that needejd
to be addressed in order for the Board to successfully consider the proposal. It wa's
at that meeting that Zwick requested and received a donation to the "summer
basketball league," which donation was in the amount of $3,500 and was utilized by
Zwick for his own personal purposes.
On May 28, 1996 — less than one week after Zwick received the $3,500 check
from Dr. Coppola — the Board was scheduled to meet. On that day, Zwick used the
authority of his office in contacting Commissioner Weigand, another Commissioner on
the Board, to seek her support for the Coppola project.
Later that same evening, at the public meeting of the Ross Township Board bf
Commissioners, Zwick again used the authority of his office by commenting favorably
as to the Coppolas' project; making the motion to approve their conditional use
application; and voting in favor of that motion.
Zwick's advocacy of the Coppola's project, and his motion and vote in favorfof
that project occurred less than one week after Zwick solicited and received a private
pecuniary benefit in the amount of $3,500 from Dr. Coppola. Each element of a
Section 3(a) violation is met as to the $3,500 payment.
Furthermore, it is clear that Zwick's solicitation of the $3,500 donation to the
"basketball league" was based upon Zwick's specific understanding that his official
action, judgment, and decision regarding the Township's consideration of the Coppola
Day Care Facility would be influenced thereby. Consequently, we find a violation of
Section 3(c) as to that particular payment. However, as to the $10,000 loan solicited
and received by Zwick after the Ross Township Board of Commissioners had already
approved the conditional use application, we find no violation of Section 3(a) or
Section 3(c). As we noted above, although there may be some factual circumstances
in some cases which would support violations for "after- the -fact" solicitations, we
believe that these particular facts before us do not.
With regard to the third factual scenario involving the Lowries Run Joint
Operating Committee and Buchart- Horn, Inc., we find two violations of Section 3(a)
of the Ethics Law. We find no violations as to Section 3(c) under this scenario in that
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024-C2
Page 71
there is no indication that there was any solicitation based upon any improper
understanding.
Zwick clearly violated Section 3(a) with regard to his use of the authority of his
office in his capacity as Ross Township's representative to the Joint Operating
Committee to change its check signing process and to redirect the billing by Buchart -
Horn, Inc. Zwick put himself in a position to retain control of the Joint Operating
Committee's $4,595 check to Buchart-Horn, Inc. so that he could deposit it into his
own bogus "Buchart-Horn, Inc." account and use the money for his own purposes.
The private pecuniary benefit to Zwick was the $4,595 that he diverted from the Joint
Operating Committee to his personal custody and control. Lagana, Order No. 903.
With regard to Zwick's solicitation of funds from Buchart-Horn which were
ostensibly for political contributions, we likewise find a violation of Section 3(a).
Buchart- Horn's three payments as reflected in Finding 208 were as follows:
$500 by check dated March 14, 1995; $300 by check dated September 5, 1995; and
$300 by check dated December 17, 1996. In light of all of Zwick's other activitiqs
as reflected above and below, it comes as no surprise that these funds did not go to
any political committee or for any political contribution but, rather, went to Zwick
himself who used the money for personal purposes.
1 f•
The element of use of authority of office is met by Zwick's adamant advocacy
for Buchart-Horn, Inc. to be the Joint Operating Committee's consulting engineer.
Indeed, Buchart-Horn, Inc. was selected as the consulting engineer despite the fact
that other Committee members wanted a different engineering company. The
selection of Buchart-Horn, Inc. was made on October 30, 1995. The element of a
private pecuniary benefit consists of the two payments to Zwick which were tendered .
before that action.
As for Zwick's solicitations for basketball contributions from Buchart-Horn, Inc.,
we do not find a violation of Section 3(a) as to these payments based upon the time
frame in which they occurred. The first contribution in the amount of $300 was rpade' -
on August 5, 1994, which was after Buchart-Horn had already been hired by 'Ross
Township. We do not have any factual basis to establish at what point in 1994 the
solicitation for the contribution was made, and so we cannot conclusively determine
that the solicitation occurred before, rather than after, the hiring. Furthermore, the
payment was solicited and received well before the Lowries Run Joint Operating
Committee was even formed.
The second payment in the amount of $250 was paid December 12, 1995,
after Buchart-Horn had been selected as the operating engineer for the Joint Operating
Committee. Again, we have no time reference as to when the solicitation may have
occurred and cannot conclusively establish whether it occurred before or after the
decision was made by the Joint Operating Committee to hire that firm. Consequently,
we find no Section 3(a) violation as to the solicitations from Buchart-Horn, Inc. for
contributions to the "Jim Zwick Summer Basketball League."
With regard to the fourth factual scenario, relating to the Admiral Lawn
Maintenance Service, we find violations of both Section 3(a) and Section 3(c).
With regard to Section 3(a), Zwick used the authority of his office as a Ross
Township Commissioner in asking Ruff to perform lawn maintenance work at Denny
Zwi , 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 72
Park; meeting with Ruff as a Township Commissioner with regard to that work;
requiring Ruff to post a so- called "performance bond" for the Township; and accepting
that payment. The element of a private pecuniary benefit consists of the use of the
so- called performance bond. Zwick never turned the money over to the Township but
rather converted it to his own use_ We find that Zwick's ability to use the $2,500
during the period of time between Ruff turning it over to him and October, 1996 when
it was finally repaid by Zwick to Ruff constituted a private pecuniary benefit to Zwick.
These facts clearly establish a violation of Section 3(a).
With regard to the donations and fundraising ticket purchases which Zwick
solicited from Ruff, we find a violation of Section 3(c). Clearly, these solicitations
were based upon Zwick's understanding that Ruff would receive Township work based
upon such payments. Indeed, Zwick implied that if Ruff did nQt make the donations
or purchases as indicated, he would not receive Township work. These facts clearly
establish a violation of Section 3(c).
We do not find a violation of Section 3(a) as to the solicited donations and fund
raising ticket purchases based upon an insufficiency of evidence as to the time franle
in which the solicitations were made. We do not know whether we have a basis to
relate these solicitations to any of Zwick's uses of the authority of office.
With regard to the fifth factual scenario, relating to Greenfield Lawn Care
Company, we find no violation of Section 3(c) in that the facts before us do not reflect
any solicitations based upon an improper understanding. However, we do find a
violation of Section 3(a). Gorman, Order No. 1041.
Once again, Zwick repeatedly used the authority of his office under this
scenario. He suggested that Mergenthaler bid on work for Ross Township, and he .
provided him with information related to bidding for such work. In December, 1995,
he contacted Mergenthaler and indicated that he needed money immediately for a
performance bond so that Mergenthaler could bid on the 1996 Township work. He
accepted the so- called "performance bond" in the amount of $3,500 from
Mergenthaler. He subsequently contacted the Mergenthalers again and stated that he
would need an additional $1,500 check based upon a change in policy at the
Township. Again, Zwick accepted the $1,500 check acting in his capacity as a
Township Commissioner, even though the Township would not have required any
performance bond from the Mergenthalers.
Furthermore, when Rebecca Mergenthaler became suspicious and contacted the
Township, Zwick took the phone call, again acting in his official capacity as a
Township Commissioner, and instructed Ms. Mergenthaler not to call the Township
anymore since the Township Manager wanted his own people to cut the grass.
Furthermore, Zwick contacted Craig Mergenthaler and told him to tell his wife not to
call the Township anymore.
The element of a private pecuniary benefit, as in scenario four above, is met by
Zwick's ability to use the Mergenthaler funds over time through his conversion of
those funds totaling $5,000 to his personal use. Each element of a Section . 3(a)
violation has been met as to this scenario.
With regard to the sixth factual scenario, relating to Owens Motor Coach, Inc.,
we do not find a violation of Section 3(c) in that based upon the facts which are
before us, there is not clear and convincing evidence to establish a solicitation based
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 73
upon an improper understanding. However, we do find a violation of Section 3(a).
Foster, Order No. 749.
Zwick repeatedly used the authority of his office as a Ross Township
Commissioner in this matter. Specifically, Zwick was in charge of reviewing and
processing the proposals regarding the Township Senior Citizens' Bus Transportation
Program contract. Zwick provided commentary on the matter at the October 23,
1995 Township meeting. At the November 13, 1995 meeting, Zwick unsuccessfully
attempted to have the opening of the bids tabled. The bids were in fact opened at the
November 13, 1995 meeting and one of the bidders was Owens Motor Coach, Inc.
On December 11, 1995, the very day of the Township meeting where the
Commissioners would vote to accept a bid, Zwick extracted a $2,500 donation to his
basketball league from Richard Owens. Then, later that same day, Zwick attended the
Township meeting, and repeatedly used the authority of his office in favor of Owens
Motor Coach, Inc. Specifically, Zwick recommended the acceptance of one of the two
proposals offered by Owens Motor Coach, Inc.; made a motion to accept the proposal;
amended the motion following some discussion; stated the urgency of obtaining a new
vehicle as soon as possible so that it could be available for. January 1; and voted in
favor of the motion.
The element of a private pecuniary benefit consists of the $2,500 "donation''
which was deposited into Zwick's personal account for which he had sole signature
authority, which funds were not used to purchase any basketball league or sporting
goods equipment but rather were used by Zwick for his own personal purposes. Each
element of a Section 3(a) violation has been met as to this scenario.
Turning to the seventh factual scenario, relating to Christopher J. Kaclik, Inc.,
we find violations of both Section 3(a) and Section 3(c).
With regard to Section 3(c), Zwick solicited funds from Christopher J. Kaclik
the form of a donation to a basketball league and for a down payment ostensibly, for
sewer taps for the development of a building, based upon Zwick's specific'
understanding that his action, judgment, or vote would be influenced thereby. Zwick
told Kaclik in no uncertain terms to pay Zwick the money if he wanted to insure that
he would have sewer taps for his building. Consequently, each element of a Section
3(c) violation has been established.
Zwick also violated Section 3(a) by using the authority of his office to "set the
stage" to advance his prospects for success in soliciting these funds from Kaclik.
Initially, Zwick used the authority of his office when, in June of 1994, he volunteered
to sit on the Committee to negotiate the Kaclik Planning Module. The Planning Module
was discussed and approved by a vote on June 27, 1994, and approximately two
weeks later, Ross Township was authorized to enter into an agreement with Ohio
Township regarding the Kaclik development. It was several months after the sewer
lines were approved, that Zwick first contacted Kaclik and told him that if he (Kaclik)
ever needed help with anything in Ross Township in the future, he should contact
Zwick. Zwick told Kaclik that he could help him out and he could get things done in
securing the sewer taps for the next building that he was planning. These actions
constituted uses of the authority of office which set the stage for Zwick's future
solicitations of Kaclik.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 74
Zwick followed through in June of 1996, after Kaclik had initiated the process
for the development of Shannopin Square Phase II. Zwick again contacted Kaclik and
again advised him that he could be of assistance to Kaclik in obtaining the sewer taps
for him. This contact was where the first solicitation occurred by Zwick, who
indicated that it would be "helpful" for Kaclik to make a donation to the basketball
league or some other Ross Township Association to "insure" that he would get his
sewer taps. Zwick again used the authority of his office when he contacted Kaclik
subsequently and arranged to meet with him at Shannopin Square Phase I. Acting as
a Township Commissioner, Zwick took documents regarding other developers' sewer
modules to the meeting and told Kaclik that he had to move quickly because these
other developers would be able to get taps before him and there would be no sewer
taps left. Zwick used the authority of his office when he told Kaclik that he had to pay
for his taps immediately or they would not be available.
Ultimately, Zwick set the price for the "basketball league donation" at $5,000
and the cost for reserving sewer taps at $17,500. Kaclik paid the $5,000 for the
basketball league, which funds Zwick converted to his own use.
Zwick continued to call Kaclik and to impress upon him the urgency f9r
providing funds to insure the sewer taps. When Kaclik provided $7,500 for that
purpose, Zwick accepted those funds as a Township Commissioner. However, those
funds were not deposited in any Township bank accounts, but were converted to
Zwick's personal use.
Thus, under this scenario, there are violations of both Section 3(c) and Section
3(a) because, not only did Zwick solicit the funds from Kaclik based upon Zwick's
specific understanding that his action, judgment, or vote would be influenced thereby, .
but he also used the authority of his office, as noted above, to set the stage for those .
solicitations and to essentially coerce Kaclik into complying with his demands.
Livingston, Order No. 1030.
With regard to the eighth factual scenario, relating to Bernard Creedon, Jr., And
the Hampton Inn, we find no violations of either Section 3(a) or Section 3(c) of the
Ethics Law. As for Section 3(c), there is not clear and convincing evidence to support
any improper understanding. As for Section 3(a), based upon the facts before us,
Zwick's initial contact whereby he requested the $5,000 donation for the basketball
league occurred after Creedon's plans were approved by the Ross Township Board of
Commissioners. The facts which are before us do not establish by clear and
convincing evidence that there was any use of authority of office that occurred relative
to the basketball league donation request.
Similarly, based upon the facts which are before us, Zwick's dealings with
Creedon relating to the telephone system for Hampton Inn also occurred after the plans
had been approved by the Ross Township Board of Commissioners. There is no
evidence that at that time, any matters involving Creedon /Hampton Inn were either
pending before the Township or expected. Thus, these were incidents which occurred
"after the fact" when Zwick was acting in his capacity as a private person.
With regard to the ninth factual scenario, relating to the Masonic Fund Society,
based upon the facts which are before us, we find no violations of either Section 3(a)
or Section 3(c) of the Ethics Law. There is not clear and convincing evidence of any
improper understanding. Furthermore, based upon the facts which are before us,
Zwick's solicitation of a $1,500 donation for his "basketball league" was made shortly
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 75
after the Masonic Society had received approval from the Township Board of
Commissioners on their final site plan related to the Greater Pittsburgh Masonic Center.
Although Zwick had actively participated in the Board's review of that plan, there is
no indication in the facts which are before us that at the time the solicitation was
made, there was anything further pending before the Board.
Having analyzed each of the nine factual scenarios above, we are appalled by
the apparently boundless depths of deceit to which this individual has stooped for his
own ill -gotten gain. Zwick cheated an organization dedicated to the housing of single
mothers, as well as private individuals and a governmental body, all the while lying,
altering checks, forging signatures, and using bogus bank accounts to accomplish his
purposes. We have reviewed vile conduct before, but this case is unprecedented in
the history of this Commission. Never before have we had a case involving such an
unscrupulous public official. We shall now decide what is to be his fate, at least
insofar as this Commission is concerned.
Section 7(13) of Act 9 of 1989, 65 P.S. §407(13), provides, in pertinent part,
as follows:
... Any order resulting from a finding that a public official
or public employee has obtained a financial gain in violation
of this act may require the restitution plus interest of that
gain to the appropriate governmental body. The
commission or the Office of Attorney General shall have
standing to apply to the Commonwealth Court to seek
enforcement of an order requiring such restitution. This
restitution requirement shall be in addition to any other
penalties provided for in this act.
(Emphasis added). This provision of law specifically empowers this Commission to
order restitution to the appropriate governmental body in those instances where; a
public official /public employee has obtained a financial gain in violation of the Ethics
Law.
Moreover, Section 9(c) of Act 9 of 1989, 65 P.S. §409(c), provides as follows:
Section 9. Penalties
(c) Any person who obtains financial gain from
violating any provision of this act, in addition to any other
penalty provided by law, shall pay a sum of money equal to
three times the amount of the financial gain resulting from
such violation into the State Treasury or the treasury of the
political subdivision. Treble damages shall not be assessed
against a person who acted in good faith reliance on the
advice of legal counsel.
(Emphasis added). Clearly, a treble penalty may be assessed in addition to an order
for restitution. 65 P.S. § §407(13); 409(c) ; ; Z- ngrilli, Order No. 946.
Finally, the Commission has the power to refer appropriate matters to law
enforcement authorities with recommendations for criminal prosecution as to charges
arising out of violations of the Ethics Law. 65 P.S. § §407(13), (15).
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 76
We find that all of the above are warranted in this case.
With regard to the third factual scenario, involving the Lowries Run Joint
Operating Committee and Buchart-Horn, Inc., we order that Zwick shall make
restitution to the Lowries Run Joint Operating Committee in the amount of $4,595
which sum represents the amount of moneys which he diverted from that
governmental body for his own purposes. Furthermore, based upon the egregious
circumstances surrounding his diversion of those funds, we order that Zwick shall, in
addition to making restitution to the Lowries Run Joint Operating Committee, pay a
treble penalty to the State Treasury in the total amount of $13,785, representing three
times the sum of the $4,595 which Zwick diverted. Both the aforesaid restitution and
treble penalties must be paid within 30 days of the mailing date of this Order.
The Investigative Division has 'asked that restitution be paid by Zwick to the
others whom he cheated through his violations of the Ethics Law (see, Motion for
Specific Relief at 19 -21). Specifically, the Investigative Division asks this Commission
to order that Zwick pay: restitution to the Fosnights in the amount of $10,500;
restitution to Matthew Coppola in the amount of $3,500; and restitution in the amount
of $10,000 to Christopher Kaclik (representing the difference between Kaclik'is
payments totaling $12,500 to Zwick and the $2,500 which Zwick ultimately repaid
to Kaclik).
Although Zwick clearly extracted a total of $24,000 from these private
individuals in violation of the Ethics Law, we are without jurisdiction to order
restitution as to them. Our power to order restitution as it is stated in Section 7(13)
of the Ethics Law is as to "the appropriate governmental body." The Ethics Law does
not empower us to order restitution to private individuals.
This matter shall be referred to the appropriate law enforcement officials with
our strongest recommendation for criminal prosecution of James Zwick. Specifically,
we shall refer this matter to the United States Attorney for the Western District -of
Pennsylvania, the Pennsylvania Attorney General, and the District Attorney, off
Allegheny County with our specific recommendation that prosecutions be initiated. -
IV. CONCLUSIONS OF LAW:
1. James Zwick (Zwick), as a Commissioner in Ross Township, Allegheny County,
has at all times relevant to this matter been a public official subject to the
provisions of Act 9 of 1989.
Fosnight Retirement Home
2. Zwick violated Section 3(c) of the Ethics Law when he solicited $15,000 from
the Fosnights based upon Zwick's understanding that his official action,
judgment, and decision regarding the Township's consideration of the Fosnight
Retirement Home would be influenced thereby.
3. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used his
authority as a Township Commissioner to advance his prospects in obtaining
solicited funds from the Fosnights.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 77
4. Zwick did not violate Section 3(c) of the Ethics Law as to his sale of a cordless
telephone to the Fosnights in that there was no element of any improper
understanding as to that transaction.
5. Zwick did not violate Section 3(a) of the Ethics Law as to his sale of a cordless
telephone to the Fosnights due to a lack of clear and convincing proof to
establish a related use of authority of office.
6. Zwick did not violate Section 3(c) of the Ethics Law as to his attempt to sell to
the Fosnights a telephone system for their new nursing home in that the facts
do not establish any solicitations based upon an improper understanding with
regard to same.
7. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of office as to the Township's review of the Fosnight Retirement
Home and then attempted to sell to the Fosnights a telephone system for that
very facility.
Coppola Day Care Center
.,
8. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of his office as to the Coppola Day Care Center before, during, and
after soliciting and receiving a $3,500 payment from Dr. Coppola.
9. Zwick violated Section 3(c) of the Ethics Law when he solicited and received
from Dr. Coppola a $3,500 payment which was based upon Zwick's specific
understanding that his official action, judgment, and decision regarding the.
Township's consideration of the Coppola Day Care Facility would be influenced
thereby.
10. Zwick did not violate Section 3(a) or Section 3(c) of the Ethics Law as to the,
$10,000 loan from Dr. Coppola which was the result of an after - the -fact
solicitation which occurred when there was no official action, judgment, and /or/
decision remaining to be made, based upon the facts before us.
r
Lowries Run Joint Operating Committee and Buchan -Horn, Inc.
11. Zwick did not violate Section 3(c) of the Ethics Law with regard to his diversion
of funds from the Lowries Run Joint Operating Committee due to a lack of clear
and convincing proof to establish an improper understanding related to same.
12. Zwick did not violate Section 3(c) of the Ethics Law as to solicitations to
Buchart-Horn, Inc. for alleged political contributions and donations to a
basketball league due to a lack of clear and convincing proof to establish an
improper understanding related to same.
13. Zwick violated Section 3(a) of the Ethics Law when he used the authority of his
office in his capacity as Ross Township's representative to the Lowries Run
Joint Operating Committee to change its check signing process and to redirect
the billing by one of its vendors, Buchart-Horn, Inc., so that he could divert
funds from the said Joint Operating Committee into a personal account for his
own use.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024-C2
Page 78
14. Zwick violated Section 3(a) of the Ethics Law when he used the authority of
office in selecting Buchart-Horn, Inc. to provide services to the Lowries Run
Joint Operating Committee after soliciting and receiving funds from Buchart-
Horn, Inc. which were ostensibly for political contributions but which were
used by Zwick for personal purposes.
15. Zwick did not violate Section 3(a) of the Ethics Law as to his solicitations for
basketball contributions from Buchart-Horn, Inc. due to a lack of clear and
convincing proof.
Admiral Lawn Maintenance Service
16. Zwick violated Section 3(a) of the Ethics Law when he used the authority of his
office as a Ross Township Commissioner as to Ruff's performing lawn
maintenance work at Denny Park and as to posting a so- called $2,500
"performance bond" for the Township which Zwick converted to his own use.
17. Zwick violated Section 3(c) of the Ethics Law with regard to the donations and
fundraising ticket purchases which Zwick solicited from Ruff based upon
Zwick's understanding that Ruff would receive Township work based upon such
payments. ;
18. Zwick did not violate Section 3(a) of the Ethics Law as to the solicited
donations and fundraising ticket purchases due to a lack of clear and convincing
proof as to the time frame in which the solicitations occurred.
Greenfield Lawn Care Company
19. Zwick did not violate Section 3(c) of the Ethics Law as to his actions involving
the Greenfield Lawn Care Company in that the facts do not establish any
solicitations based upon an improper understanding relating to Greenfield Lawn
Care Company.
20. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of his office to suggest to Mergenthaler to bid on work for Ross
Township and accepted the so- called "performance bond" from Mergenthaler
and converted those funds totaling $5,000 to his personal use.
Owens Motor Coach, Inc.
21. Zwick did not violate Section 3(c) of the Ethics Law relating to Owens Motor
Coach, Inc. in that there is not clear and convincing evidence to establish a
solicitation based upon an improper understanding.
22. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of his office as a Ross Township Commissioner regarding the
Township Senior Citizens' Bus Transportation Program contract for a $2,500
"donation" from the successful bidder, which money was deposited into
Zwick's personal account and used for his own personal purposes.
Zwick, 96- 071 -C2, 96- 088 -C2, 97- 024 -C2
Page 79
Christopher J. Kaclik, Inc.
23. Zwick violated Section 3(c) of the Ethics Law when he solicited funds from
Christopher J. Kaclik in the form of a donation to a basketball league and for a
down payment ostensibly for sewer taps for the development of a building,
based upon Zwick's specific understanding that his action, judgment, or vote
would be influenced thereby.
24. Zwick violated Section 3(a) of the Ethics Law by using the authority of his
office to advance his prospects for success in soliciting funds from Kaclik
consisting of the "basketball league donation" at $5,000 and the cost for
reserving sewer taps at $17,500.
Bernard Creedon, Jr. and Hampton Inn
25. Zwick did not violate Section 3(a) of the Ethics Law as to his request for the
$5,000 donation for the basketball league which occurred after Creedon's plans
were approved by the Ross Township Board of Commissioners due to a lack df
clear and convincing evidence that there was any use of authority of office that
occurred relative to the basketball league donation request.
26. Zwick did not violate Section 3(c) of the Ethics Law as to his request for the
$5,000 donation for the basketball league which occurred after Creedon's plans
were approved by the Ross Township Board of Commissioners because there
is no evidence that any understanding existed as to Zwick and Creedon.
Masonic Fund Society
27. Zwick did not violate Section 3(c) of the Ethics Law as to his solicitation for, =a
$1,500 donation from the National Development Company for his "basketball ,.
league" that was made after the Masonic Society had received approval from
the Ross Township Board of Commissioners, in that there is not clear . and
convincing evidence to establish a solicitation based upon an improper -
understanding. �.
28. Zwick did not violate Section 3(a) of the Ethics Law as to his solicitation for a
$1,500 donation from the National Development Company for his "basketball
league" in that there is no indication that at the time the solicitation was made,
there was anything further pending before the Ross Township Board of
Commissioners.
In Re: James Zwick
File Docket:
Date Decided:
Date Mailed:
ORDER NO. 1062
96- 071 -C2; 96-088 -
C2 & 97- 024 -C2
9/10/97
9/15/97
Fosnight Retirement Home
1. James Zwick (Zwick), as a Commissioner in Ross Township, Allegheny County,
violated Section 3(c) of the Ethics Law when he solicited $ 15,000 from the
Fosnights based upon Zwick's understanding that his official action, judgment,
and decision regarding the Township's consideration of the Fosnight Retirement
Home would be influenced thereby.
2. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used his
authority as a Township Commissioner to advance his prospects in obtaining
solicited funds from the Fosnights.
3. Zwick did not violate Section 3(c) of the Ethics Law as to his sale of a cordless
telephone to the Fosnights in that there was no element of any improper
understanding as to that transaction.
4. Zwick did not violate Section 3(a) of the Ethics Law as to his sale of a cordless
telephone to the Fosnights due to a lack of clear and convincing proof to
establish a related use of authority of office.
5. Zwick did not violate Section 3(c) of the Ethics Law as to his attempt to sell to
the Fosnights a telephone system for their new nursing home in that the facts
do not establish any solicitations based upon an improper understanding wi,th
regard to same.
6. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of office as to the Township's review of the Fosnight Retirement
Home and then attempted to sell to the Fosnights a telephone system for that
very facility.
Coppola Day Care Center
7. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of his office as to the Coppola Day Care Center before, during, and
after soliciting and receiving a $3,500 payment from Dr. Coppola.
8. Zwick violated Section 3(c) of the Ethics Law when he solicited and received
from Dr. Coppola a $3,500 payment which was based upon Zwick's specific
understanding that his official action, judgment, and decision regarding the
Township's consideration of the Coppola Day Care Facility would be influenced
thereby.
9. Zwick did not violate Section 3(a) or. Section 3(c) of the Ethics Law as to the
$10,000 loan from Dr. Coppola which was the result of an after - the -fact
solicitation which occurred when there was no official action, judgment, and /or
decision remaining to be made, based upon the facts before us.
Lowries Run Joint Operating Committee and Buchart Inc.
10. Zwick did not violate Section 3(c) of the Ethics Law with regard to his diversion
of funds from the Lowries Run Joint Operating Committee due to a lack of clear
and convincing proof to establish an improper understanding related to same.
11. Zwick did not violate Section 3(c) of the Ethics Law as to solicitations to
Buchart-Horn, Inc. for alleged political contributions and donations to a
basketball league due to a lack of clear and convincing proof to establish an
improper understanding related to same.
12. Zwick violated Section 3(a) of the Ethics Law when he used the authority of his
office in his capacity- as Ross Township's representative to the Lowries Run
Joint Operating Committee to change its check signing process and to redirect
the billing by one of its vendors, Buchart-Horn, Inc., so that he could divert
funds from the said Joint Operating Committee into a personal account for his
own use.
13. Zwick violated Section 3(a) of the Ethics Law when he used the authority of
office in selecting Buchart-Horn, Inc. to provide services to the Lowries Run
Joint Operating Committee after soliciting and receiving funds from Buchart-
Horn, Inc. which were ostensibly for political contributions but which were
used by Zwick for personal purposes.
14. Zwick did not violate Section 3(a) of the Ethics Law as to his solicitations for
basketball contributions from Buchart-Horn, Inc. due to a lack of clear and
convincing proof.
Admiral Lawn Maintenance Service
15. Zwick violated Section 3(a) of the Ethics Law when he used the authority of his
office as a Ross Township Commissioner as to Ruff's performing lawn
maintenance work at Denny Park and as to posting a so- called $2,500
"performance bond" for the Township which Zwick converted to his own use.
16. Zwick violated Section 3(c) of the Ethics Law with regard to the donations and
fundraising ticket purchases which Zwick solicited from Ruff based upon
Zwick's understanding that Ruff would receive Township work based upon such
payments.
17. Zwick did not violate Section 3(a) of the Ethics Law as to the solicited
donations and fundraising ticket purchases due to a lack of clear and convincing
proof as to the time frame in which the solicitations occurred.
Greenfield Lawn Care Company
18. Zwick did not violate Section 3(c) of the Ethics Law as to his actions involving
the Greenfield Lawn Care Company in that the facts do not establish any
solicitations based upon an improper understanding relating to Greenfield Lawn
Care Company.
19. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of his office to suggest to Mergenthaler to bid on work for Ross
Township and accepted the so- called "performance bond" from Mergenthaler
and converted those funds totaling $5,000 to his personal use.
Owens Motor Coach, Inc.
20. Zwick did not violate Section 3(c) of the Ethics Law relating to Owens Motor
Coach, Inc. in that there is not clear and convincing evidence to establish a
solicitation based upon an improper understanding.
21. Zwick violated Section 3(a) of the Ethics Law when he repeatedly used the
authority of his office as a Ross Township Commissioner regarding the
Township Senior Citizens' Bus Transportation Program contract for a $2,500
"donation" from the successful bidder, which money was deposited into
Zwick's personal account and used for his own personal purposes.
Christopher J. Kaclik, Inc.
22. Zwick violated Section 3(c) of the Ethics Law when he solicited funds from
Christopher J. Kaclik in the form of a donation to a basketball league and for a
down payment ostensibly for sewer taps for the development of a building,
based upon Zwick's specific understanding that his action, judgment, or vote
would be influenced thereby.
23. Zwick violated Section 3(a) of the Ethics Law by using the authority of his
office to advance his prospects for success in soliciting funds from Kaclik
consisting of the "basketball league donation" at $5,000 and the cost for
reserving sewer taps at $17,500.
Bernard Creedon, Jr. and Hampton Inn
24. Zwick did not violate Section 3(a) of the Ethics Law as to his request for the.
$5,000 donation for the basketball league which occurred after Creedon's plans
were approved by the Ross Township Board of Commissioners due to a lack bf
clear and convincing evidence that there was any use of authority of office that
occurred relative to the basketball league donation request.
25. Zwick did not violate Section 3(c) of the Ethics Law as to his request for the
$5,000 donation for the basketball league which occurred after Creedon's plans
were approved by the Ross Township Board of Commissioners because there
is no evidence that any understanding existed as to Zwick and Creedon.
Masonic Fund Society
26. Zwick did not violate Section 3(c) of the Ethics Law as to his solicitation for a
$1,500 donation from the National Development Company for his "basketball
league" that was made after the Masonic Society had received approval from
the Ross Township Board of Commissioners, in that there is not clear and
convincing evidence to establish a solicitation based upon an improper
understanding.
27. Zwick did not violate Section 3(a) of the Ethics Law as to his solicitation for a
$1,500 donation from the National Development Company for his "basketball
league" in that there is no indication that at the time the solicitation was made,
there was anything further pending before the Ross Township Board of
Commissioners.
28. Zwick is ordered to pay restitution in the amount of $4,595 to the Lowries Run
Joint Operating Committee.
29. Zwick is ordered to pay a treble penalty in the amount of $13,785 to_ the
Commonwealth of Pennsylvania through this Commission within 30 days of the
mailing date of this Order.
30. We do not order restitution to the Fosnights, Coppola, or Kaclik based upon our
inability to do so.
31. This matter shall be referred to the United States Attorney for the Western
District of Pennsylvania, the Pennsylvania Attorney General, and the District
Attorney of Allegheny County with our strongest recommendation that
prosecutions be initiated.
32. Failure to comply with this Order will result in the institution of an order
enforcement action.
BY THE COMMISSION,
ogus,06 &AL,
DANEEN E. REESE, CHAIR