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HomeMy WebLinkAbout1255 TracyIn Re: DewVaul Tracy, Jr. File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Frank M. Brown Donald M. McCurdy Michael Healey 02- 029 -C2 Order No. 1255 12/4/02 12/10/02 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Act, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., as codified by Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101 et seq., by the above -named Respondent. At the commencement of its investi9ation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investi9ation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." A generalized letter with attachments was received from Respondent, which is deemed an admission of the findings. A hearing was deemed waived. The record is complete. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11, Act 93 of 1998, which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under Act 93 of 1998. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with Chapter 11 of Act 93 of 1998. Any person who violates confidentiality of the Ethics Law is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. Tracy 02- 029 -C2 Page 2 ALLEGATION: That DewVaul Tracy, a (public official /public employee) in his capacity as a member of the Fayette County Board of Assistance, violated the following provisions of the Ethics Act (Act 93 of 1998) when he failed to file a [sic] Statement[s] of Financial Interests for the calendar years 2000 and 2001 by May 1, 2001, and May 1, 2002, respectively. Section 1104. Statement of financial interests required to be filed. (a) Public official or public employee.--Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa.C.S. §1104(a). II. FINDINGS: 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that DewVaul Tracy, Jr., violated provisions of the State Ethics Act (Act 93 of 1998). 2. Upon review of the complaint, the Investigative Division initiated a preliminary inquiry on March 20, 2002. 3. The preliminary inquiry was completed within sixty days. 4. On May 17, 2002, a letter was forwarded to DewVaul Tracy, Jr., by the Investigative Division of the State Ethics Commission informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7001 1940 0001 2179 5421. b. The domestic return receipt bore the signature of DewVaul Tracy, Jr., with a delivery date of May 21, 2002. 6. Periodic notice letters were forwarded to DewVaul W. Tracy, Jr., in accordance with the provisions of the Ethics Law advising him of the general status of the investigation. 7. The Investigative Complaint was mailed to the Respondent on November 7, 2002. 8. DewVaul W. Tracy, Jr. has served as a member of the Fayette County Board of Assistance ( "Board ") since September 3, 1980. Tracy 02- 029 -C2 Page 3 9. The board is comprised of seven members who are appointed by the Pennsylvania General Assembly. a. Members are appointed to a specific term but serve on the board until a successor is appointed and qualified or they resign. b. Board members do not receive compensation for serving on the board but do receive reimbursement for expenses associated with board related travel. c. The board schedules meetings on a monthly basis but only holds meetings on an as- needed basis when a quorum of the members can attend. 10. Members of the board have annually been provided with Statements of Financial Interests (SFI) to complete and file with the board. 11. Each year county personnel notify board members by letter of their need to file an SFI for the previous calendar year. a. All board members received the same letter. b. Enclosed with the letter are a blank SFI and a pre- addressed stamped envelope to return the completed SFI to the county. 12. Each year that he has served on the board, DewVaul W. Tracy, Jr., ( "Tracy ") has received notification of the filing requirement, as well as blank forms. 13. DewVaul W. Tracy, Jr., did not file Statements of Financial Interests for the 2000 calendar year by May 1, 2001, or the 2001 calendar year by May 1, 2002. 14. County records confirmed that Tracy was provided a letter explaining his need to file an SFI for calendar year 2000 and a blank SFI via mail on March 27, 2001. a. All board members, except Tracy, filed a 2000 SFI with the county in a timely manner. 15. The Administrative Division of the State Ethics Commission was notified in or about January 2002, that DewVaul Tracy, Jr., failed to file an SFI for the 2000 calendar year. a. Notification was received from the Governor's Office of Administration. 16. A notice letter dated January 25, 2002, was sent by the Administrative Division to Tracy directing him to file an SFI for the 2000 calendar year. a. The notice letter provided that civil proceedings would be initiated against Tracy if he did not file the required SFI within twenty (20) days after receiving the notice letter. 17. Tracy failed to comply with the January 25, 2002, notice letter and did not file an SFI for calendar year 2000 within the specified twenty (20) days. 18. By letter dated March 5, 2002, the State Ethics Commission provided a final notice to Tracy of its intent to commence civil penalty proceedings for his failing to file an SFI for calendar year 2000. a. The notice letter provided that civil proceedings would be initiated against Tracy if he did not file the required SFI within twenty (20) days after receiving the notice letter. Tracy 02- 029 -C2 Page 4 b. The notice letter was sent by certified mail no. 7001 1940 0001 2179 2888. c. The return receipt born the signature of Sandra Tracy with a delivery date of March 11, 2002. 19. Tracy failed to comply with the final notice letter and did not file an SFI for calendar year 2000 within the specified twenty (20) days. 20. An SFI compliance review was conducted of the board by the Investigative Division of the State Ethics Commission on May 1, 2002. a. It was determined during this review that Tracy had not filed an SFI for the 2000 calendar year and had also failed to file a 2001 SFI by May 1, 2002. 21. Tracy filed an SFI for calendar year 2000 which was dated May 31, 2002. a. The form was received in the offices of the State Ethics Commission on June 1, 2002. b. This filing was made sixty -eight (68) days after the deadline set in the March 5, 2002, final notice. 22. The form Tracy filed for the 2000 calendar year listed his occupation as retired teacher. a. Tracy listed "none" on all financial categories including direct /indirect sources of income and creditors. b. Tracy failed to disclose Howard County Public Schools and the Commonwealth of Pennsylvania (Public School Employees Retirement System) as a direct or indirect source of income on line 10. 1. In calendar year 2000, Tracy was paid $25,629.81 by the Howard County, Maryland Public Schools. c. Tracy failed to disclose Howard County Public Schools, Albert Gallatin School District, Uniontown Area School District, and the Southeastern Greene School District as employment in any business on line 13. 1. Tracy's tax returns for the 2000 calendar year confirm his employment and receipt of income. 23. Tracy filed additional SFI's for calendar year 2000 with the State Ethics Commission on October 11, 2002, and October 31, 2002. a. The information listed on the October 9, 2002, form was identical to the information on the 2000 form filed on May 31, 2002, with the exception of creditors, line 9. 1. Tracy disclosed "VISA" as a creditor with interest rates of 16% and 18% on the October 9, 2002, form. 2. Tracy disclosed no sources of income. b. The form dated October 30, 2002, and received on October 31, 2002, by the State Ethics Commission disclosed sources of income as follows: Howard County Public Schools Southeastern Greene School District $ 25,629.81 $ 1,280.00 Tracy 02- 029 -C2 Page 5 Uniontown Area School District $ 240.00 Albert Gallation [sic] School District $ 780.00 24. Tracy was not provided a blank SFI for calendar year 2001 before May 1, 2002 because of an administrative oversight by county personnel. a. None of the board members were provided with a blank SFI for calendar year 2001 before May 1, 2002. 25. By letter dated May 6, 2002, from the county Tracy and the other board members were requested to complete SFI's for calendar year 2001 to be filed with the county immediately. a. Tracy was provided a blank SFI and a pre- addressed stamped envelope with this notification. 26. Tracy failed to file an SFI for calendar year 2001 by May 1, 2002 or after receiving the May 6, 2002 letter from the county requesting that he file the SFI immediately. a. All of the other board members filed and [sic] SFI for calendar year 2001 after receiving the May 6, 2002 [letter]. 27. Tracy filed two SFI's for calendar year 2001 as a result of contacts with an investigator from the State Ethics Commission in October 2002. a. The first form was dated October 9, 2002, and received by the State Ethics Commission on October 11, 2002. 1. Tracy reported "none" on all financial categories except creditors. 2. Tracy disclosed "VISA," 16 % -18% as a creditor. b. Tracy's second filing for calendar year 2001 was dated October 30, 2002, and received by the State Ethics Commission on October 31, 2002. 1. Tracy disclosed the following: Creditors: Nissan Motor Acceptance Co. 11.75% Sources of Income: PA Public Employees Retirement System $ 19,466.40 Uniontown School District $ 1,200.00 Southeastern Greene School District $ 1,120.00 Albert Gallation [sic] School District $ 775.00 28. Tracy has been the subject of previous enforcement actions by the State Ethics Commission for his failure to file SFI's. a. Tracy has paid the following civil penalties for failing to file SFI's: Filing Year Order No. Civil Penalty 1990 018 -S $250 1992 068 -S $250 1993 068 -S $250 Tracy 02- 029 -C2 Page 6 1994 071 -S $250 b. Tracy was taken into custody by the Pennsylvania State Police, in accordance with a Commonwealth Court Order of Arrest, in 1997 for failing to file SFI's for calendar years 1992, 1993, and 1994. 1. Tracy was found in contempt of a Commonwealth Court Order directing him to file SFI's and pay associated civil penalties. 29. In all of the foregoing years, Tracy received specific written notice of the Statement of Financial Interests filing requirement. 30. Tracy provided a sworn statement on October 21, 2002, to an investigator for the Investigative Division of the State Ethics Commission. a. Tracy admitted that he was aware that he was required to file SFI's and was provided with the forms to do so for calendar years 2000 and 2001. b. Tracy claimed that he minimized the need to the file SFI's because he did not feel his position was a "high level" position of authority. c. Tracy further claimed that he did not feel that it was important to file SFI's even after being the subject of previous commission enforcement actions. III. DISCUSSION: At all times relevant to this matter, the Respondent, DewVaul Tracy, hereinafter Tracy, has been a public official subject to the provisions of the Public Official and Employee Ethics Law ( "Ethics Act "), Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq., as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101 et seq. The issue is whether Tracy, as a member of the Fayette County Board of Assistance, violated Section 1104(a) of the Ethics Act when he failed to timely file Statements of Financial Interests (SFI's) for calendar years 2000 and 2001 by May 1, 2001, and May 1, 2002, respectively. Section 1104(a) of the Ethics Act quoted above requires that each public official/ public employee must file an SFI for the preceding calendar year, each year that he holds the position and the year after he leaves it. Preliminarily, we note that Tracy filed a response to the Investigative Complaint, which response was received on November 18, 2002. Tracy's response was not an answer, but merely a letter in which he admitted that he failed to file SFI's for the 2000 and 2001 calendar years in a timely manner and apologized for failing to exercise proper judgment, and to which he attached copies of SFI's for the 2000 and 2001 calendar years, which are dated October 30, 2002. In that Tracy has failed to file an answer to the Investigative Complaint, the averments therein are deemed admitted. Having noted the issues and applicable law, we shall now summarize the relevant facts. Tracy has served as a member of the Fayette County Board of Assistance (Board) since September 3, 1980. Board members are appointed by the General Assembly. Each year, Fayette County (County) mails a letter to each Board member advising of the need to file with the Board an SFI for the previous calendar year. Enclosed with the letter is a blank SFI and a pre- addressed stamped envelope to the County. Although Tracy Tracy 02- 029 -C2 Page 7 received annual notices from the County, he failed to file SFI's for the 2000 and 2001 calendar years by May 1, 2001, and May 1, 2002, respectively. On January 25, 2002, the Administrative Division of the State Ethics Commission mailed a notice letter to Tracy directing him to file an SFI for the 2000 calendar year within twenty (20) days. Tracy failed to comply with the notice letter and did not file an SFI for the 2000 calendar year. On March 5, 2002, the State Ethics Commission ave Tracy final notice of its intent to commence civil penalty proceedings within twenty (20) days if he continued to be noncompliant. Tracy failed to comply with the State Ethics Commission's final notice and did not file an SFI for the 2000 calendar year. After conducting an SFI compliance review, the Investigative Division determined that Tracy also had not filed an SFI for the 2001 calendar year. On June 1, 2002, the State Ethics Commission received from Tracy an SFI for the 2000 calendar year. On the SFI, Tracy indicated that he was a retired teacher. Tracy wrote "none" in block 10, direct /indirect sources of income. In calendar year 2000, Tracy received $25,629.81 from the Howard County Maryland Public Schools. On October 11, 2002, and October 31, 2002, Tracy filed additiopal SFI's for calendar year 2000 with the State Ethics Commission. The SFI filed October 11 h contained the same information as the SFI Tracy previously filed in June, with the addition that he listed VISA as a creditor with interest rates of 16% and 18 %. Tracy again listed no sources of income. On the SFI filed on October 31 Tracy disclosed the following sources and amounts of income: Howard County Public Schools - $25,629.81; Southeastern Greene School District - $1,280; Uniontown Area School District - $240; and Albert Gallatin School District - $780. Due to administrative oversight, the County did not provide Tracy or any other Board member with annual notices and blank SFI forms to file for the 2001 calend year until May 6, 2002. All Board members except Tracy complied with the County's May 6 notice letter and filed SFI's for the 2001 calendar year. After an investigator from the State Ethics Commission contacted Tracy concerning his delinquent forms, he filed two SFI's for calendar year 2001 — ere on October 11, 2002, and the other on October 31, 2002. On the SFI filed October 11 marked "none" on all financial categories, except the category for creditors, in which he disclosed VISA with an interest rate of 16% - 18 %. On the SFI filed October 31 Tracy disclosed the following information: Creditors: Nissan Motor Acceptance Co. — 11.75 %; Sources of Income: PA Public Employees Retirement System - $19,466.40; Uniontown School District - $1,200; Southeastern Greene School District - $1,120; and Albert Gallatin School District - $775. Tracy has been ordered by the State Ethics Commission to pay civil penalties for failing to file SFI's for the following calendar years: 1990 - $250; 1992 - $250; 1993 - $250; and 1994 - $250. In addition, Tracy has been arrested by the Pennsylvania State Police for contempt of a Commonwealth Court Order directing him to file SFI's and pay civil penalties. Tracy provided a sworn statement to the State Ethics Commission: (1) admitting that he was aware that he was required to file SFI's and that he was provided with blank SFI forms to file for the calendar years 2000 and 2001; (2) claiming that he minimized the need to file SFI's because he did not feel his position was a "high level" position of authority; and (3) claiming that he did not feel that it was important to file SFI's even after being the subject of previous Commission enforcement actions. The Investigative Division has filed a position statement in this case. Tracy has not filed a position statement. Tracy 02- 029 -C2 Page 8 The Investigative Division in its position statement seeks: (1) a violation of Section 1104(a) of the Ethics Act on the basis that Tracy, as a member of the Fayette County Board of Assistance, failed to file SFI's for calendar years 2000 and 2001 by May 1, 2001, and May 1, 2002, respectively, with Fayette County; (2) a violation of Section 1104(a) of the Ethics Act on the basis that Tracy, as a member of the Fayette County Board of Assistance, failed to file SFI's for calendar years 2000 and 2001 with Fayette County and the State Ethics Commission; (3) a civil penalty in the amount of $250 as a result of Tracy's failure to file a properly completed SFI for the 2000 calendar year within the twenty (20) day grace periods following service of the required notices; (4) a referral to the Office of Attorney General and District Attorney of Fayette County with the Commission's recommendation for the institution of a criminal prosecution against Tracy as to violations of the Ethics Act; (5) a declaration that Tracy is ineligible to take the oath of office or enter or continue upon his public duties as a Board member since May 1, 2001; and (6) and action by the Commission to seek or recommend the removal of Tracy from public office as a member of the Fayette County Board of Assistance. Having summarized the above relevant facts we must now determine whether the actions of Tracy violated Section 1104(a) of the Ethics Act. For the relevant time period, Tracy, as a member of the Fayette County Board of Assistance, was a public official required to annually file an SFI on or before May 1 for the prior calendar year. In this case, the record reflects that Tracy was aware of the filing requirements under the Ethics Act, having received a notice letter and a blank SFI from the County each year. Nevertheless, Tracy failed to file SFI's for the calendar years 2000 and 2001 on or before each May 1 S deadline. In light of the fact that Tracy failed to file an answer to the Investigative Complaint, he is deemed to have admitted the averments in the Investigative Complaint. Accordingly, we find that Tracy violated Section 1104(a) of the Ethics Act in each instance when he failed to timely file SFI's for the calendar years 2000 and 2001 with the Fayette County Board of Assistance, State Ethics Commission, and Governor's Office of Administration. For the calendar year 2000, the SFI's filed by Tracy on June 1, 2002, and October 11, 2002, were deficient in that as a matter of law, Tracy was required to disclose direct or indirect sources of income totaling in the aggregate of $1,300 or more, excluding governmentally mandated payments, such as retirement income from the Public School Employees Retirement System. Tracy failed to list income from the Howard City Public Schools, from which he received income of $25,629.81 in calendar year 2000. See, Fact Finding 22.b.1. We note, however, that Tracy did list the Howard City Public Schools as a direct or indirect source of income on his amended SFI filed with the State Ethics Commission on October 31, 2002. Further, as to the failure by Tracy to disclose in Block 13 his employment with the Howard County Public Schools, Albert Gallatin School District, Uniontown Area School District, and the Southeastern Greene School District on his 2000 calendar year SFI's filed on June 1, 2002, and October 11, 2002, it is noted that the term "business" as defined in the Ethics Act does not include a governmental body. See, 65 Pa.C.S. §1102. Having established violations by Tracy as to the 2000 and 2001 SFI's, we must consider whether a referral to law enforcement is appropriate. The actions of Tracy warrant the referral of this case to a law enforcement agency with our recommendation that a criminal prosecution be instituted. Based upon the record before us, Tracy's conduct was knowing, reckless and /or intentional. Tracy admitted that he was aware that he was required to file SFI's, and that he was provided with blank SFI forms to file for the calendar years 2000 and 2001. Tracy further admitted that he minimized the need to file SFI's because he did not feel that his position was a "high level" position of authority, and because he did not feel that it was important to file SFI's even after being the subject ect of previous commission enforcement actions. Such prior enforcement actions resulted the imposition of civil penalties for failing to file SFI's for calendar years 1990, 1992, 1993, and 1994, and his arrest in 1997 for contempt of a Commonwealth Court Order directing him to file Tracy 02- 029 -C2 Page 9 SFI's and pay associated civil penalties. See, Fact Findings 28.a., b.1.; 30. a. -c. A review of the record reflects that the Section 1104(a) violations were not a result of inadvertent oversight on the part of Tracy. To the contrary, Tracy, by his own admissions, was well aware that he was statutorily required to file annual SFI's, but chose instead to blatantly, consciously and repeatedly disregard the Ethics Act. We conclude that there is a reasonable expectation that a prosecution would be instituted against Tracy. It is our view that a jury or court as fact finder would have a sufficient basis to conclude that Tracy acted intentionally, knowingly, or recklessly with respect to the conduct we have reviewed in this matter. See, 18 Pa.C.S. § 302(c). Accordingly, this case shall be referred to both the Office of Attorney General and the Fayette County District Attorney with the Commission's recommendation for the institution of a criminal prosecution against Tracy as to violations of the Ethics Act. With respect to the Investigative Division's request for the imposition of a $250 civil penalty in addition to a referral for criminal prosecution, we note that this matter proceeded as an investigation. Although there is a statutory basis for imposing a penalty of up to a maximum of $250 per occurrence upon a public official /public employee who fails to file orfiles a deficient SFI, such a penalty may be imposed when a case is processed through the civil penalty process using a rule to show cause. See, 65 Pa.C.S. § 1109(f). In that the instant matter has not proceeded through the civil penalty process, but rather through an investigation, we will not impose a civil penalty against Tracy. The Investigative Division requests that the Commission declare Tracy ineligible to continue in his public duties /take appropriate steps to seek or recommend the removal of Tracy from public office. Tracy is a chronic non -filer whose conduct reflects a blatant disregard for the public trust. Section 1104(d) of Ethics Act provides that "no public official shall be allowed to take the oath of office or enter or continue upon his duties, nor shall he receive compensation from public funds, unless he has filed a statement of financial interests as required by this chapter." This Commission, as an administrative agency, will refer this matter for criminal prosecution, which referral will also include a request for review as to filing an action to remove Tracy from public office. IV. CONCLUSIONS OF LAW: 1. Tracy, as a member of the Fayette County Board of Assistance, is a public official subject to the provisions of Act 9 of 1989/Act 93 of 1998, Chapter 11. 2. Tracy violated Section 1104(a) of the Ethics Act in each instance when he failed to file Statements of Financial Interests for calendar years 2000, and 2001, by May 1, 2001, and May 1, 2002, respectively with the Fayette County Board of Assistance, State Ethics Commission, and Governor's Office of Administration. In Re: DewVaul Tracy ORDER NO. 1255 File Docket: 02- 029 -C2 Date Decided: 12/4/02 Date Mailed: 12/10/02 1. Tracy, as a member of the Fayette County Board of Assistance violated Section 1104(a) of the Ethics Act in each instance when he failed to file Statements of Financial Interests for calendar years 2000, and 2001, by May 1, 2001, and May 1, 2002, respectively with the Fayette County Board of Assistance, State Ethics Commission, and Governor's Office of Administration. 2. This case shall be referred to both the Office of Attorney General and the Fayette County District Attorney with the Commission's recommendation for the institution of a criminal prosecution against Tracy as to the above violations of the Ethics Act, and for review as to filing an action to remove Tracy from public office. BY THE COMMISSION, Louis W. Fryman, Chair