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HomeMy WebLinkAbout1272 ShepardsonIn Re: Faith Shepardson File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Frank M. Brown Susan Mosites Bicket Donald M. McCurdy Michael Healey 02- 038 -C2 Order No. 1272 4/4/03 4/18/03 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 allegation(s). Upon completion of its investi9ation 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. A Consent Agreement and Stipulation of Findings were submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement was subsequently approved. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under Act 93 of 1998. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with Chapter 11 of Act 93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. Shepardson 02- 038 -C2 Page 2 I. ALLEGATION: That Faith Shepardson, a (public official /public employee) in her capacity as a Secretary/Treasurer for West Keating Township, Clinton County, violated the following provisions of the Ethics Act (Act 93 of 1998) when she failed to file Statements of Financial Interests for the 1998 and 1999 calendar ears; and when she subsequently submitted backdated forms giving the impression that forms were timely filed. §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. Faith Shepardson has served as the secretary /treasurer for West Keating Township, Clinton County, since June 9, 1997. a. Shepardson's duties as township secretary /treasurer include but are not limited to serving as the township's record custodian and maintaining township financial records and signing checks issued to vendors and payroll checks. 2. Statements of Financial Interests are required to be filed by elected and appointed public officials and public employees by May 1 of each year, containing information relating to the prior calendar year. a. As secretary /treasurer of the township, Shepardson was required to file Statements of Financial Interests. 3. The Administrative Division of the State Ethics Commission annually mails blank Statements of Financial Interests to municipalities throughout the Commonwealth for completion by elected public officials, appointed officials and public employees. 4. Statement of Financial Interests forms were annually mailed to West Keating Township in 1999, 2000 and 2001 by the Administrative Division of the State Ethics Commission. a. In 1999, blank forms were mass mailed to all municipalities in the Commonwealth on February 9, 1999. 1. These forms contained the State Ethics Commission form identification of SEC -1, Rev. 1/99. Shepardson 02- 038 -C2 Page 3 b. Blank SFI forms were annually mailed by the Administrative Division to Faith J. Shepardson, West Keating Township Secretary/Treasurer, P.O. Box 21, Pottersdale, PA 16871 in February 1999, January 2000, December 2000 for 2001 and December 2001 for 2002. c. The 2000 forms containing identification SEC -1, Rev. 1/00 were bulk mailed on January 21, 2000. d. The 2001 forms SEC -1, Rev. 1/01 were bulk mailed on or about December 13, 2000. e. The 2002 forms SEC -1, Rev. 1/2002 were bulk mailed on or about December 14, 2001. 5. Each year when forms are printed, an identification date is listed in the upper left hand corner of the form. a. Forms printed in 1999 contained an identification date of SEC -1 1/99, while forms printed in 2000, 2001, and 2002 contained identification dates of SEC -1 1/00, SEC -1 1/01 and SEC -1 1/02. 6. Faith J. Shepardson confirmed the receipt of blank Statement of Financial Interests forms for West Keating Township public officials and /or public employees to complete. 7. Statement of Financial Interests forms filed by Shepardson with West Keating Township include the following filings: a. Calendar Year: Filed: [sic] Position: Creditors: Direct /Indirect Income: All other financial interests: b. Calendar Year: Filed: [sic] Position: Creditors: Direct /Indirect Income: All Other Financial Interests: c. Calendar Year: Filed: Position: Creditors: Direct /Indirect Income: All other financial interests: d. Calendar Year: Filed: Position: Creditors: Direct /Indirect Income: All other financial interests: 1998 01/06/99 on SEC Form Rev. 1/00 Township Secretary None S /Employed Notary None 1999 01 /xx/00 on SEC Form Rev. 1/02 Secretary None S /Employed Notary None 2000 01/02/01 on SEC form Rev. 1/01 Township Secretary None S /Employed Notary None 2001 01/04/02 on SEC Form Rev. 1/02 Secretary None S /Employed Notary None 8. Shepardson's Statement of Financial Interests form for the 1998 calendar year listed the date filed as January 6, 1999. Shepardson 02- 038 -C2 Page 4 a. Shepardson's Statement of Financial Interests filed for calendar 1998 was on an [sic] Statement of Financial Interests form with a revision date SEC -1, 1/00. 1. This form was not bulk mailed to municipalities until January 21, 2000, over one year after the January 6, 1999, date Shepardson purportedly filed it on. b. The form filed by Shepardson was backdated giving the impression it was timely filed. 9. Shepardson's Statement of Financial Interests filed for calendar year 1999 listed a filing date of January 2000. a. A specific date was not listed. b. Shepardson's Statement of Financial Interests for 1999 was filed on a form with a revision date of SEC -1, Rev. 1/02. 1. This form was not bulk mailed to municipalities until December 13, 2001, almost two years after the January 2000 date Shepardson purportedly filed it on. c. This form was backdated by Shepardson giving the impression that it was timely filed. 10. W -2 Wage and Tax Statements on file with West Keating Township confirm Shepardson received the following annual wages between 1998 and 2001. a. 1998: $2,220.00 b. 1999: $2,495.00 c. 2000: $3,127.50 d. 2001: $3,449.50 e. Shepardson did not disclose West Keating Township as a source of income on Statements of Financial Interests filed for the 1998 and 1999 calendar years. 11. On January 30, 2002, State Ethics Commission Investigators Kollin Harmon and Jason Bricker conducted a compliance review of Statement of Financial Interests forms for West Keating Township officials. a. The review was prearranged on January 29, 2002. 12. Subsequent to being contacted by the State Ethics Commission, but prior to January 30, 2002, when the records were to be reviewed by the State Ethics Commission, Shepardson reviewed township files and determined that Statements of Financial Interests for herself and other township officials were not on file. a. Shepardson contacted township officials, advised them of the pending compliance review, and the need to file Statements of Financial Interests. b. Shepardson distributed blank forms to township officials who had not filed. 13. Sometime between January 29, 2002, and January 30, 2002, Shepardson filed the Shepardson 02- 038 -C2 Page 5 backdated SFI forms for calendar years 1998 and 1999. a. These forms were filed at that time with knowledge that representatives of the State Ethics Commission would be reviewing forms at the township on January 30, 2002. 14. A sworn statement was provided by Shepardson on November 12, 2002, during which she confirmed that she delivered the blank 2002 Rev. Date SEC Statement of Financial Interests forms to the non - filing individuals on January 29 and 30, 2002, so that when the Ethics Commission reviewed them, they would appear to have been timely filed. a. She also filled out her forms at this time and also backdated them so that they would appear to have been timely filed. III. DISCUSSION: At all times relevant to this matter, the Respondent, Faith Shepardson, hereinafter Shepardson, has been a public official subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et se as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65Pa.C.S. § 1101 et seq., which Acts are referred to herein as the "Ethics Act." The allegations are that Shepardson, as a West Keating Township Secretary / Treasurer, violated the Section 1104(a) of the Ethics Act when she failed to timely file Statements of Financial Interests (SFI's) for the 1998 and 1999 calendar years; and when she subsequently backdated SFI forms for the calendar years 1998 and 1999. Pursuant to Section 1104(a) of the Ethics Act quoted above, Respondent was specifically required to file SFI's for calendar years 1998 and 1999 with West Keating Township (Township) on or before May 1, 1999 and May 1, 2000, respectively. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Shepardson has served as the Secretary/Treasurer for the Township since June 9, 1997. As a public official, Shepardson is required to file SFI's with the Township by May 1 of each year that she holds the position of Township Secretary/Treasurer as well as of the year after she leaves such a position. Each year, the Administrative Division of the State Ethics Commission has bulk mailed blank SFI forms to municipalities throughout the Commonwealth including the Township. Blank SFI forms for the 1998, 1999, 2000, and 2001 calendar years were mailed by the State Ethics Commission to Shepardson as Township Secretary/Treasurer for distribution to Township public officials and public employees in February 1999, January 2000, December 2000, and December 2001, respectively. The SFI forms mailed by the State Ethics Commission bore different identification dates depending upon the year of printing. Forms printed in 1999 were marked SEC -1, Rev. 1/99; forms printed in 2000 were marked SEC -1, Rev. 1/00; forms printed in 2001 were marked SEC -1, Rev. 1/01; and forms printed in 2002 were marked SEC -1, Rev. 1/02. SFI's for calendar years 1998 through 2001 were completed and filed with the Township by Shepardson. Shepardson completed her 1998 calendar year SFI on an SEC -1, Rev. 1/00 form, but dated the form January 6, 1999. Shepardson completed her 1999 calendar year SFI on an SEC -1, Rev. 1/02 form, but dated the form January 2000. Neither Shepardson 02- 038 -C2 Page 6 the SEC -1, Rev. 1/00 form nor the SEC -1, Rev. 1/02 form was in print at the times of Shepardson's purported filings. In addition, on SFI's filed for calendar years 1998 through 2001, Shepardson indicated that her position was Township Secretary, but reported no direct or indirect sources of income other than her self - employment as a notary. In fact, for the years 1998 through 2001, the Township paid Shepardson in excess of $1,300 as Township Secretary. After learning that two investigators from the State Ethics Commission would be conducting a compliance review of SFI forms for Township officials on January 30, 2002, Shepardson reviewed the Township files and determined that SFI's for herself as well as other Township officials were not on file. Shepardson then contacted the non - filers and distributed blank SFI's to them. Shepardson backdated her 1998 and 1999 calendar year SFI's knowing that representatives from the State Ethics Commission would be reviewing the Township files on January 30, 2002. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations. The Consent Agreement proposes that this Commission find that Shepardson, as Secretary/Treasurer for West Keating Township , violated Section 1104(a ) of the Ethics Act when she failed to file Statements of Financial Interests for the 1998 and 1999 calendar years by May 1, 1999 and May 1, 2000, and when she subsequently submitted backdated forms filed for the 1998 and 1999 calendar years; and an agreement by Shepardson to make payment in the amount of $100 in settlement of this matter within thirty (30) days of the issuance of this Order through this Commission to the Commonwealth of Pennsylvania. As a public official, Shepardson is required to annually file SFI's. Despite the legal requirement of the Ethics Act, Shepardson failed to comply with the law. The record reflects that as Township Secretary/Treasurer, Shepardson annually received blank SFI's to distribute to public officials and public employees in the Township, but failed to file her own SFI's for the 1998 and 1999 calendar years. Only after Shepardson learned that representatives from the State Ethics Commission would be conducting a compliance review on January 30, 2002, did she complete SFI's for calendar years 1998 and 1999. When Shepardson subsequently filed the forms, she backdated them to give the impression that the forms were timely filed. The printer's identification dates on the SFI forms filed by Shepardson for calendar years 1998 and 1999 establish that Shepardson backdated her SFI's, as those particular forms were neither in print nor in circulation during the purported filings. Accordingly, we find that Shepardson violated Section 1104(a) of the Ethics Act when she failed to timely file SFI's for calendar years 1998 and 1999, and when she backdated her SFI's for those calendar years. If Shepardson has not already done so, we direct that she file amended SFI's for calendar years 1998 through 2001 reflecting actual dates of filing and listing the Township as a source of income. The originals are to be filed with the Township and copies are to be sent to the Administrative Division of the State Ethics Commission for compliance verification. As for the payment of $100 by Shepardson, we have previously imposed a pay back in a case where a public official received compensation when he was not in compliance with the SFI filing requirements of the Ethics Act. See, Huhn, Order 431. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, Shepardson is directed to make payment of $100.00 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the mailing date of this Order and, if she has not already done so, to file amended SFI's for calendar years 1998 and 1999 reflecting the actual dates of filing, the Shepardson 02- 038 -C2 Page 7 originals of which are to be filed with the Township with copies to be sent to the Administrative Division of the State Ethics Commission for compliance verification. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Shepardson, as Secretary/Treasurer for West Keating Township, was at all times relevant to these proceedings a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Shepardson violated Section 1104(a) of the Ethics Act when she failed to timely file and then backdated SFI forms for calendar years 1998 and 1999. In Re: Faith Shepardson ORDER NO. 1272 File Docket: 02- 038 -C2 Date Decided: 4/4/03 Date Mailed: 4/18/03 1. Shepardson, as Secretary/Treasurer for West Keating Township, violated Section 1104(a) of the Ethics Act when she failed to timely file and then backdated SFI forms for calendar years 1998 and 1999. 2. If Shepardson has not already done so, she is directed to file amended SFI's for calendar years 1998 through 2001 reflecting actual dates of filing and listing the Township as a source of income. The originals are to be filed with the Township and copies are to be sent to the Administrative Division of the State Ethics Commission for compliance verification. 3. Per the Consent Agreement of the parties, Shepardson is directed to make payment of $100.00 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the mailing date of this Order. a. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. b. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair