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HomeMy WebLinkAbout1825 CastellanoPHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 In Re: Melissa Castellano, Respondent STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA17120-0400 File Docket: Order No. Date Decided Date Mailed: 22-007 1825 10/4/23 10/6/23 Before: Michael A. Schwartz, Chair Rtionda Hill Wilson, Vice Chair Shelley Y. Simms Paul E. Parsells David L. Rcddecliff This is a final adjudication of the State Ethics, Commission. 1 FACSIMILE: 717-787-0806 WEB SITL w6t �.ethlcs.pa.gov Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethics, Act ("Ethics Act"), 65 Pa.C.S. § 1101 et 1jeq,, by the above -named Respondent,. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was filed, and a hearing was held. Both parties filed written Closing Statements and Post -Hearing Briefs. The record is now complete, ALLEGATIONS: That Melissa Castellano, a public official in her capacity as a Member of the Swatara Township Authority Board, Dauphin County, ("Authority Board"), violated Sections I 103(a), 1105(b)(8) and 1105(b)(9) of the State Ethics Act (Act 93 of 1998): (1) When she used the authority of her public position for the private pecuniary benefit of herself when she led the discussions to alter the managerial structure of the Swatara Township Authority ("Authority") and participated in the vote to approve the managerial restructure; (2) When she used the authority of her public position for the private pecuniary benefit of herself when she participated in the process which resulted in her being hired for the position of Authority Executive Director; ' Commissioner Robert 11. Caruso mcused. himself froni this matter and did not participate in the defiberati oils, involving this case, Castellano, 22-007 Page 2 (3) When she used the authority of her public position for the private pecuniary benefit of herself when she participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director; (4) When she failed to disclose her employment with Figlia Consulting, LLC on Statements of Financial Interests ("SFIs") filed for calendar years 2017, 2018 and 2020; and (5) When she failed to list her business interest in Figlia Consulting, LLC on SFIs filed for calendar years 2017 through 2020. II. FINDINGS: A. Relevant Admitted Pleadings Upon receiving and reviewing a signed, sworn complaint alleging that Melissa Castellano ("Castellano") violated provisions of the State Ethics Act (Act 93 of 1998), the Investigative Division of the State Ethics Commission ("Commission") initiated a preliminary inquiry on March 23, 2022. 2. The preliminary inquiry was completed within sixty days. a. The Commission, through the Executive Director, initiated a full investigation on May 20, 2022, 3. On May 20, 2022, a letter was forwarded to Castellano by the Investigative Division of the State Ethics Commission, informing her that a complaint against her was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7019 1640 0000 4362 7222. b. Said letter also was emailed to Castellano at email address MDi S antoCastellanoSWATARATWPAUTHORITY-PA.GOV on June 7, 2022. The certified copy of the letter was returned to the Commission by the United States Postal Service on July 25, 2022, with the notation "unclaimed, unable to forward." 4. As is permitted by 65 Pa.C.S. § 1108(c), on August 18, 2022, the Investigative Division of the Commission filed an application for a ninety -day extension of time to complete its investigation. a. By order dated September 14, 2022, the Commission granted the request for a ninety -day extension. Castellano, 22-007 Page 3 5. Periodic notice letters were forwarded to Castellano at least every ninety days in accordance with the provisions of the Ethics Act, advising her of the general status of the investigation. 6. The Investigative Complaint/Findings Report was mailed to Castellano on January 6, 2023 and received by Castellano on January 9, 2023. a. The Investigative Complaint/Findings Report was issued within 231 days of the initiation of a full investigation. 7. Castellano has been employed as the Swatara Township Authority ("Authority") Executive Director since at least April 21, 2021.E 8. The Authority is a governmental entity created pursuant to the Pennsylvania Municipal Authorities Act. a. The Authority is empowered to acquire, hold, construct, improve, maintain, operate, and own sewer's, wastewater systems, or parts thereof, sewage treatment works, including works for treating and disposing of industrial waste, water system/water works, water supply, and water distribution systems. 9. The Swatara Township Authority Board ("Authority Board") is comprised of nine members. 10. The Authority Board generally holds one meeting per month on the third Wednesday of each month. a. Special Meetings are held by the Authority Board as needed. 11. Authority Board meeting minutes are recorded by Authority Administrative Assistant Natalie Marino (now Natalie Blackman). a. The purpose of meeting minutes is to memorialize Authority Board actions including votes and public discussions. b. Meetings minutes are reviewed and signed by the Authority Board Secretary prior to providing a copy to each Authority Board member. C. Each Authority Board member is provided a copy of the meeting minutes to review for accuracy prior to the following month's meeting. d. Each Authority Board member is provided the opportunity to amend the previous month's meeting minutes prior to an official vote. 2 Castellano notes in her Answer that her employment as Authority Executive Director was retroactive to March 1, 2021. Castellano, 22-007 Page 4 e. The Authority Board votes to approve the accuracy of the previous month's meeting minutes at each subsequent meeting. 12. Castellano has served on the Authority Board since January 2007. a. Castellano was reappointed to a five year term by the Swatara Townsbip Board of Commissioners on January 8, 2020. b. Castellano's current term on the Authority Board expires on December 31, 2024. 13. Castellano has held various positions on the Authority Board including Secretary, Vice Chairman, and Chairman. a. During the 2021 calendar year, Castellano served as Vice Chairman and interim Chairman after the passing of former Authority Board Chairman James Spare on June 18, 2021. b. Castellano currently serves as Vice Chairman of the Authority Board. THE FOLLOWING FINDINGS REFLECT THE INCOME CASTELLANO RECEIVED BOTH AS AN AUTHORITY BOARD MEMBER AND AS THE AUTHORITY EXECUTIVE DIRECTOR IN 2021. 14. Castellano earned the following income for calendar years 2016 through 2020 as a member of the Authority Board: a. 2016 - $825.00; b. 2017 - $1,175.00; C. 2018 - $1,175.00; d. 2019 - $1,175.00; and e. 2020 - $1,200.00. 15. Castellano's 2021 Internal Revenue Service W-2 Wage and Tax statement reflects she earned $107,379.54 in salary from the Authority. a. Castellano was hired at an annual salary of $130,000.00 per year. Castellano, 22-007 Page 5 THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS REGARDING THE HIRING OF CASTELLANO AS EXECUTIVE DIRECTOR OF THE AUTHORITY. 16. From December 2019 until February 2020, Castellano and Authority labor attorney Stephen Coccorese ("Coccorese") conducted an internal investigation into two Authority Sewer Plant employees. a. The two employees were terminated in March 2020 based upon a finding that they engaged in workplace violence, harassment, and bullying of another Authority Sewer Plant employee. 17. Following termination of the two employees, Authority Superintendent Gene Lank was placed on a performance improvement plan with a "last chance option." a. Lank denied having knowledge of the actions of the two employees. b. Lank ultimately resigned from his position as Authority Superintendent in July 2020, 18. Between July 2020 and September 2020, Castellano and other members of the Personnel Committee met to discuss restructuring Authority Management. a. During the 2020 calendar year, the Personnel Committee was comprised of Castellano, Allison Mancuso and Paul Johnson. i. Coccorese also was part of the Personnel Committee meetings. b. The Personnel Committee discussed whether to create a new Executive Director position or hire a Human Resources Manager and continue with the same management structure. 19. During the September 16, 2020 Authority Board meeting, Castellano discussed reorganizing Authority management before the Authority Board. 20. Two options were presented for the Authority Board's consideration. a. Option A included hiring an Executive Director and a Chief Operator with a plant license. b. Option B included hiring a Human Resources Director and a Superintendent. 21. The Authority Board voted to approve Option A. a. Castellano participated in the discussion and voted to approve Option A. Castellano, 22-007 Page 6 22. During the October 21, 2020 meeting, the Authority voted to "move forward" with the reorganization plan that included creating an Executive Director position. a. Meeting minutes reflect that Castellano voted to "move forward" with the reorganization plan. 23. Between October 2020 and January 2021, Castellano and the Personnel Committee continued to meet and discuss hiring an Executive Director. 24. During the January 20, 2021 Authority Board meeting, Castellano was reappointed as Vice Chairman of the Authority Board and Chairman of the Personnel Committee. 25. During the same January 20, 2021 meeting, Swatara Township Authority Solicitor Scott Wyland ("Wyland") recommended that the Authority hire an employment expert to create job descriptions and recruit and screen applicants for the Executive Director position. a. Wyland suggested hiring Team LMI consultant Dr. Kent Frese ("Frese") at a monthly fee of $1,500.00. 26. Wyland contacted Frese on January 20, 2021 regarding the possibility of assisting the Authority in hiring a Chief Operating Officer. a. Wyland contacted Frese again on February 16, 2021 and requested that Frese provide an engagement letter addressed to the Authority Board. b. During the February 16, 2021 conversation, Wyland informed Frese that Castellano was "handling a lot of HR stuff' and the Authority may look at hiring her. 27. At the February 17, 2021 meeting, the Authority Board voted to approve the hiring of Consultant Frese. a. Meeting minutes confirm that Castellano was not in the executive session and abstained from the vote. 28. Frese met with the following Authority stakeholders: a. Authority Solicitors Wyland and Coccorese; b. Authority Business Manager Gerry Miller; c. Authority Board Members Castellano, Allison Mancuso, Jim Spare and Paul Johnson; and d. Authority employees Chris Heagy and George Moppin. 29. Frese scheduled a meeting with Castellano for March 5, 2021. Castellano, 22-007 Page 7 30. Frese interviewed Castellano a second time, telephonically, on March 25, 2021. a. Frese interviewed Castellano the same day as the March 25, 2021 Authority Board Special Meeting. b. During the telephone call, Frese questioned Castellano about her willingness to accept the Executive Director position. Castellano confirmed she wanted the Executive Director position and would be willing to work 30-35 hours per week. ii. Castellano informed Frese that she preferred a one-year contract with the Authority. iii. Frese noted that Castellano was willing to vacate her Authority Board seat but wanted her seat to remain open. 31. Frese presented his report to the Authority Board at its special meeting held on March 25, 2021. a. Frese noted in his report that Castellano had "provided substantial operational and strategic support as the personnel chair" without receiving compensation. b. Frese concluded based upon his research that salaries for Executive Directors range from $90,000.00 to $150,000.00 per year. i. Frese noted that salary ranges are influenced by leadership experience, accomplishments, education and skills. 32. During the March 25, 2021 special meeting, the Authority Board voted to offer Castellano an employment contract for the Executive Director position. a. Following the executive session, the Authority Board decided to offer Castellano a $130,000.00 salary for park -time employment for twelve months. b. Authority Board member Paul Johnson made a motion to offer Castellano a contract in accordance with the terms of the report provided by Dr. Frese. C. The motion was seconded by Authority Board member Allison Mancuso. d. The motion carried without notation of an abstention from Castellano. 33. Ultimately, Castellano was not offered an employment contract but was instead offered part-time employment as Authority Executive Director at the following month's meeting on April 21, 2021. Castellano, 22-007 Page 8 34. Meeting minutes for the April 21, 2021 meeting reflect that the Authority Board voted to approve the meeting minutes for the March 25, 2021 special meeting. a. The Authority Board, including Castellano, made no corrections, additions or amendments to the March 25, 2021 meeting minutes. 35. Castellano was provided an offer of employment letter dated April 21, 2021, the same date her employment was approved by the Authority Board. Lt. Castellano's offer letter reflects that the Authority Board approved her employment retroactive to March 1, 2021. b. Castellano was approved for a salary of $130,000.00 per year for a thirty hour work week. C. Castellano was not considered a full-time employee of the Authority in her position as Executive Director. d. Castellano is considered management level, pair Labor Standards Act exempt, non- union, and an at -will employee of the Authority. C. Castellano was provided health insurance benefits effective May 1, 2021, sixty days after her retroactive employment date with the Authority. 36. Castellano received her first payment from the Authority as Executive Director on April 26, 2021 in the amount of $11,715.43. a. This payment included back pay from her retroactive hiring to March 1, 2021. 37. Castellano received a total of $131,746.68 in net payments from the Authority as Executive Director from April 2021 through August 2022. 38. In addition to her salary, Castellano also received Authority -provided health insurance for herself and her family. a. The Authority provided health, dental and vision insurance coverage for Castellano and her family. b. Castellano began receiving Authority -provided health insurance on May 1, 2022. i. Castellano was hired effective March 1, 2021, but the Authority Board did not approve her hiring until April 21, 2021. C. Consistent with Authority policy, Castellano was eligible to receive health insurance benefits because she worked at least thirty hours each week. Castellano, 22-007 Page 9 d. The Authority paid $45,882.23 for Castellano's family health insurance coverage as an Authority employee. 39. Castellano remains employed by the Authority as Executive Director and continues to receive salary and health insurance benefits. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT CASTELLANO FILED DEFICIENT STATEMENTS OF FINANCIAL INTERESTS FOR CALENDAR YEARS 2017 THROUGH 2O20. 40. Castellano in her capacities as an Authority Board member and Authority Executive Director is required to annually file a Statement of Financial Interests ("SFI") by May I" for the prior calendar year. 41. Castellano was -required to file SFIs for calendar years 2016 through 2021 as a member of the Authority Board and for calendar year 2021 as Authority Executive Director. 42. Castellano filed SFIs for calendar years 2016 through 2021 that included the following disclosures: a. Calendar Year: 2016 Dated 3/10/2017 on form SEC -I REV. 01/17 Position: Authority Member Government Entity: Swatara Township Authority Occupation: Writer & Homemaker Creditors: None Direct/Indirect Sources of Income: Self Financial Interest in any Business: None Other Financial Interests: None b. Calendar Year: 2017 Dated 2/24/2018 on form SEC-1 REV. 01/18 Position: Authority Member Government Entity: Swatara Township Authority Occupation: Writer & Homemaker Creditors: None Direct/Indirect Sources of Income: Melissa DiSanto Castellano, a.k.a. Figlia Consulting, LLC Office Directorship or Employment: Swatara Township Authority Board Position held: Secretary Financial Interest in any Business: None Other Financial Interests: None C. Calendar Year: 2018 Dated 4/1/2019 on form SEC-1 REV. 01/19 Castellano, 22-007 Page 10 Position: Authority Member Government Entity: Swatara Township Authority Occupation: Writer Creditors: None Direct/Indirect Sources of Income: Figlia Consulting, LLC (Melissa DiSanto) Office Directorship or Employment: None Financial Interest in any Business: None Other Financial Interests: None d. Calendar Year: 2019 Dated 3/11/2020 on form SEC-1 REV. 01/20 Position: Authority Member Government Entity. Swatara Township Authority Occupation: Writer Creditors: None Direct/Indirect Sources of Income: Figlia Consulting/Melissa DiSanto Office Directorship or Employment: Figlia Consulting/Melissa DiSanto Position Held: Owner Financial Interest in any Business: None Other Financial Interests: None Calendar Year: 2020 Dated 2/5/2021 on form SEC-1 (Rev. 01/21) Position: Authority Member Government Entity: Swatara Township Authority Occupation: Writer/Policy Creditors: None Direct/Indirect Sources of Income: Figlia Consulting, LLC Office Directorship or Employment: PA Cyber Charter School Board of Trustees Position Held: Board Trustee Financial Interest in any Business: None Other Financial Interests: None f. Calendar Year: 2021 Dated 3/8/2022 on form SEC-1 (Rev. 01/22) Position: Authority Member, Executive Director Government Entity: Swatara Township Authority Occupation: Executive Director Creditors: None Direct/Indirect Sources of Income: Swatara Township Authority Office Directorship or Employment: PA Cyber Charter School Board of Trustees Position Held: Board Trustee Financial Interest in any Business: Figlia Consulting, LLC Interest Held: Owner/Principal Other Financial Interests: None Castellano, 22-007 Page 1 i B. Testimony 43, Jonathan Fry ("Fry") is the Eastern Regional Director of Investigations for the Pennsylvania State Ethics Commission. a. Fry was involved in the Investigative Division's investigation of Castellano. b. During the course of the investigation, Fry obtained various meeting minutes of the Swatara Township Authority ("Authority"). i. ID — 2 consists of the minutes of the September 16, 2020 Swatara Township Authority Board ("Authority Board") meeting in which Castellano and Stephen Coccorese ("Coccorese") commenced discussion about a proposed reorganization and restructuring of the Authority. ii. ID — 3 consists of the minutes of the October 21, 2020 Authority Board meeting in which Authority Board member Paul Johnson ("Johnson") made a motion to move forward with the Authority reorganizational plan as previously discussed. aa. There were no abstentions to Johnson's motion. iii. ID — 4 consists of the minutes of the January 20, 2021 Authority Board meeting in which Solicitor Scott Wyland ("Wyland") recommended hiring an employment consultant, Dr. Kent Frese ("Frese). aa. Castellano made a motion to accept Wyland's report. After Matthew Cichy ("Cichy") seconded, the motion passed. iv. ID — 5 consists of the minutes of the February 17, 2021 Authority Board meeting. aa. The motion to accept the proposal from Frese passed. bb. Castellano abstained from voting on Frese's proposal as she was not in executive session. v. ID -- 6 consists of the minutes of the March 25, 2021 special meeting of the Authority Board. aa. Johnson made a motion to accept the report of Frese. After being seconded by Allison Mancuso ("Mancuso"), the motion passed without objection. bb. There are no abstentions noted for the motion. vi. ID — 7 consists of the minutes of the April 21, 2021 meeting of the Authority Board. Casteilano, 22-007 Page ] 2 aa. The meeting minutes from the March 25, 2021 meeting were approved without any corrections. bb. The Authority Board voted to offer Castellano the position of Executive Director. cc. There are no abstentions noted for the record. vii. ID — 8 consists of the minutes of the May 21, 2021 meeting of the Authority Board. aa. Cichy made a request to change the April 21, 2021 meeting minutes to remove a notation that he voted "no" because he could not recall voting "no" on this item. bb. The April 21, 2021 meeting minutes passed with no other corrections being made. viii. ID — 9 consists of the minutes of the July 7, 2021 meeting of the Authority Board. aa. Castellano, as Vice Chairman, assumed the role of Chairman due to the death of James Spare. bb. Coccorese became the lead solicitor for the Authority, replacing Wyland. ix. ID — 10 consists of the minutes of the February 16, 2022 meeting of the Authority Board. aa. Castellano requested a correction to the minutes of December 15, 2021, to reflect that she abstained from voting on cost -of -living adjustments to Authority employees. c. Fiy also obtained a copy of the April 21, 2021 offer of employment letter from Authority Board Chairman James Spare to Castellano. (Exhibit ID —11) i. The letter offers Castellano the position of Authority Executive Director effective March 1, 2021 at an annual salary of $130,000.00 for thirty work hours per week. ii. The letter further explains that because her effective start date was March 1, 2021, Castellano will be eligible for health insurance benefits beginning May 1, 2021. Castellano, 22-007 Page 13 d. Fry secured the payroll records for Castellano, which are identified and admitted as ID — 12I3. Castellano received gross earnings of $207,125.00 between April 26, 20213 to September 20, 2022. e. ID — 13 is a Statement of Financial Interests ("SFI") that Castellano filed for calendar year 2017. i. The SFI that Castellano filed for calendar year 2017 lists "Melissa DiSanto Castellano aka. Figlia Consulting, LLC" as a direct or indirect source of income. ii. Fry testified that Castellano is the owner of Figlia Consulting, LLC, a business that was created in 2008. iii. The SFI that Castellano filed for calendar year 2017 does not list her as having an office, directorship, or employment in Figlia Consulting. iv. The SFI that Castellano filed for calendar year 2017 does not list her as having a financial interest in Figlia Consulting, LLC. f. ID —1 4 is an SFI that Castellano filed for calendar year 2018. The SFI that Castellano filed for calendar year 2018 lists "Figlia Consulting, LLC (Melissa DiSanto)" as a direct or indirect source of income. ii. The SFI that Castellano filed for calendar year 2018 does not list her as having an office, directorship, or employment in Figlia Consulting, LLC. iii. The SFI that Castellano filed for calendar year 2018 does not list her as having a financial interest in Figlia Consulting, LLC. g. ID —15 is an SFI that Castellano filed for calendar year 2019. i. The ,SFI that Castellano filed for calendar year 2019 lists "Figlia Consulting/Melissa DiSanto" as a direct or indirect source of income. ii. The SFI that Castellano filed for calendar year 2019 does not list her as having a financial interest in Figlia Consulting, LLC. h. ID —16 is an SFI that Castellano filed for calendar year 2020. 'Castellano received back pay for the period beginning March 1, 2021 in accordance with her offer of employment. Castellano, 22-007 Page 14 The SFI that Castellano fled for calendar year 2020 lists "Figlia Consulting, LLC" as a direct or indirect source of income. ii. The SFI that Castellano filed for calendar year 2020 does not list her as having an office, directorship, or employment in Figlia Consulting, LLC. iii. The SFI that Castellano filed for calendar year 2020 does not list her as having a financial interest in Figlia Consulting, LLC. 44. Scott Wyland, Esquire, ("Wyland") is a senior shareholder with the law firm of Salzmann Hughes, where he has been employed for approximately twelve years. a. Wyland acted as Solicitor for the Authority at his current law firm from approximately 2012 to 2021. i. His colleague, Stephen Coccorese, took over the lead as Solicitor for the Authority sometime in July 2021. b. Wyland testified that Frese is an expert in corporate management and structure and executive recruitment, and someone whose services have been utilized by his law firm for a number of years. c. Wyland testified that he decided to reach out to Frese because the Authority Board, through its Personnel Committee, had been discussing restructuring the Authority. i. Wyland testified that at that time, the Authority had a two manager system whereby a business manager worked at the business office and a plant manager worked at the plant but both were on equal footing. ii. Wyland testified that upon separation of the plant manager, the Authority faced the decision of whether to go to a single manager system like most other authorities or whether to remain a two -manager system. iii. Wyland testified to his belief that Frese could provide an outside objective viewpoint as to which direction was best for the Authority. d. Wyland testified that Castellano had disclaimed any interest in the Executive Director position until at least sometime in December 2020. i. Wyland testified that discussions of restructuring the Authority began around September 2020 and continued for several months thereafter; Castellano had disavowed any interest in being the Executive Director during that timeframe. e. Wyland testified that after becoming aware that Castellano might be interested in the Executive Director position, he researched whether an Authority Board member could hold a paid position with the Authority. Castellano, 22-007 Page 15 i. Wyland testified that he contacted Attorney Jeffery Frankenburger ("Frankenburger") of the State Ethics Commission on February 19, 2021 and the two agreed that it was generally acceptable under the Ethics Act for an Authority to hire an Authority Beard member but Frankenburger did highlight some potential cautionary areas regarding such an arrangement. ii. Although Frankenburger recommended that Wyland request an Advice of Counsel from the State Ethics Commission, Wyland testified that he did not do so because "they're of limited utility." f Wyland testified that he advised both Castellano and the Authority Board that it was not a violation of the Ethics Act for the Authority Board to offer Castellano employment or for Castellano to accept such employment. g. Wyland testified that Castellano did not deliberate or participate in voting on the Executive Director position during the meetings held in February, March and April 2021. Wyland testified that Castellano did not take any actions in terms of creating the position for herself. ii. Wyland further testified that he advised Castellano and other Authority Board members that Castellano could not use the authority of her office to lobby others for the job. iii. Wyland stated that Castellano did not lobby hint to contact Frese and that she did not deliberate or participate in the vote to adopt Frese's report or recommendations. iv. Wyland testified that Castellano did not negotiate any of the terms of her employment, including salary or the retroactive start date. 45. Christopher Heagy ("Heagy") is currently employed by the Lower Allen Township Sewer Authority, prior to which he was employed by the Swatara Township Sewer Authority ("Authority") for approximately nine years. a. Heagy worked in a number of positions at the Authority, including a short stint in management toward the end of his career there. b. Heagy stated that he resigned from the Authority after Castellano took over and "stuff spiraled downhill." i. Heagy resigned immediately prior to a pre termination hearing being held to address allegations of unsatisfactory work performance and careless and reckless behavior resulting in damage. Castellano, 22-007 Page 16 c. Heagy testified that Castellano spoke with him in early March 2021 about an outside consultant, Frese, coming to speak with people at the Authority about the organization, as well as Castellano getting a paid position. i. Heagy acknowledged that Castellano did not tell him what to say when he met with Frese, only that she advised him what Frese was going to ask. d. Heagy testified that he contacted Castellano immediately after meeting with Frese because Castellano wanted to know what was said between them. 46. Kent Frese, Ph.D. ("Frese") is an industrial organizational psychologist who acts as an organizational consultant for businesses and organizations, a position he has held since 2004. a. Frese testified that Wyland contacted him in January 2021 to assist the Authority in evaluating its needs around a management position. i. Exhibit ID ---- 19 is a copy of notes taken contemporaneously with Frese's discussion with Wyland on January 20, 2021. ii. Frese's notes reflect that the Authority was looking to hire some type of manager or executive director and asked him to evaluate the viability of the new position and potentially assist with the hiring of the individual to fill the management position. iii. Frese testified that Castellano was not involved in the conversations engaging him to assist the Authority Board. b. ID -- 20 is the engagement letter drafted by Frese in which he outlines the type of services to be provided to the Authority. i. Exhibit ID --- 20 outlines a 12-step process generally utilized by Frese when performing this type of service to entities like a municipal authority. c. ID — 21 is a copy of handwritten notes taken by Frese during his first meeting with Castellano regarding the needs analysis process where he interviewed key stakeholders from Authority Board members to employees. i. Frese testified that at the time of his initial meeting with Castellano, he did not know whether Castellano was a candidate for the position although he thought it was a possibility. aa. Frese testified that Castellano was uncertain as to whether she wanted to work full-time or long-term for the Authority. Casteiiano, 22-007 Page 17 ii. Frese testified that Castellano provided him with copies of ID — 23A through ID — 23C and advised that the Authority Board had voted to proceed with revised Option A (ID -- 23B). iii. Frese testified that he learned from another Authority Board member that Castellano was already managing the Authority in an unpaid, volunteer capacity. iv. Frese routinely asks individuals if there is anyone else he should speak to concerning the business of the Authority; Castellano recommended that he speak with Authority employees Christopher Heagy and George Moppin. V. Frese testified that he met with other Authority Board members, as well as Authority staff, including the plant manager, the foreman (Heagy) and the chief operator (Moppin) because they were Ivey individuals in the operation of the Authority. d. ID — 22 is a copy of handwritten notes taken by Frese during his second conversation with Castellano. i. The second conversation was held on the date of the Authority Board meeting when Frese's final report and recommendations were going to be considered, so he needed to know whether or not Castellano wanted the position of Executive Director. ii. Frese testified that he was the one to reach out to Castellano to request a second meeting with her. iii. Frese did not consider this second conversation, or his initial meeting, as a job interview for Castellano but rather a meeting to gather additional information to better understand the situation at the Authority. e. ID — 25 is a copy of Frese's final report to the Authority Board. Frese testified that he attended via videoconference the Authority Board meeting in which his report was presented on March 25, 2021. ii. Frese testified that Castellano left the videoconference during the presentation of his report; indeed, he made a note of Castellano exiting the meeting. iii. Frese testified that his report was fairly well received and consistent with the Authority Board's desire to allow Castellano to complete the work she had already been doing in an interim role. iv. Frese testified that he agreed with the Authority Board's decision to pursue revised Option A (ID — 23B). Castellano, 22-007 Page 18 V. Frese testified that the recommended salary range of $90,000.00 to $150,000.00 was based upon his research and experience. f. Frese testified that after the Authority Board meeting, he did not continue the process as outlined in his engagement letter because he was instructed that the Authority Board would be in touch if needed. Frese testified that it was not unusual that he did not hear from the Authority Board again. 47. Kevin Traflca ("Traflka") is employed by the Swatara Township Public Works Department and is also the stormwater coordinator for Swatara Township. a. Traflca testified that he attended a pre -disciplinary conference for Christopher Heagy for allegations involving excessive call offs and not following the collective bargaining agreement as requested. b. Trafka testified that he did not remember how the pre -disciplinary conference was resolved. 48. Paul Johnson ("Johnson") currently serves as Chairman of the Swatara Township Authority Board after having joined the Board in 2019. a. Johnson testified that sometime in early 2020, Gene Lank ("Lank"), the superintendent of the plant, was placed on a last change agreement and Castellano was asked to oversee Lank. i. Lank resigned in June 2020. b. Johnson testified that Castellano was doing most of the work guiding the Authority through COVID and beyond. i. Johnson testified that Castellano was not compensated for her work with the Authority and that she never asked to be compensated. c. During the reorganizational efforts of the Authority, Johnson served on the Personnel Committee of the Authority Board. Johnson testified that after Lanlc resigned, the Authority Board, through its Personnel Committee, decided to explore hiring an Executive Director to oversee both the administrative office and the plant, rather than having a separate supervisor for each department area. Castellano, 22-007 Page 19 ii. Johnson stated that the different options for reorganization (1D — 23A through ID — 23C) were presented to the Authority Board at its meeting on September 16, 2020. iii. Johnson testified that the Personnel Committee ultimately decided to recommend hiring a consultant to advise the Authority Board as to the best approach as to management of the Authority. aa. Johnson testified that Castellano left the February 2021 executive session when the Authority Board discussed the recommendation to engage Frese to assist with the reorganization of the Authority. bb. Johnson further testified that Castellano left the executive session when Frese presented his report to the Authority Board at a special meeting on March 25, 2021. d. Johnson testified that during the initial time that the Authority Board was considering restructuring the management of the Authority, Castellano never informed him that she wanted the position of Executive Director. i. Johnson testified that it was Coccorese who informed him that Castellano might be open to the Executive Director position, although he could not recall the exact date he was so informed. ii. Johnson testified that he was relieved to learn that Castellano might be interested in the job, especially since she had essentially been doing the job for approximately eighteen months and was doing a great job. e. Johnson testified that even after becoming aware that Castellano might be interested in the Executive Director position, she never lobbied him for his vote and never tried to negotiate her salary. f Johnson testified that following the March 25, 2021 special meeting, the Authority Board decided to offer the Executive Director position to Castellano, which she accepted. i. Johnson stated that Castellano did not participate in the executive session in which the Authority Board decided to extend a contract to her. ii. Johnson testified that Castellano did not participate in the vote to offer her the Executive Director position. iii. Johnson agreed that the March 25, 2021 meeting minutes do not reflect that Castellano abstained from voting or was not part of the executive session where the contract employment offer was discussed. Castellano, 22-007 Page 20 g. Johnson testified that after some discussions with the Solicitor, the Authority Board at its April 21, 2021 meeting decided to alter the type of employment arrangement offered to Castellano from one of a contract employee to one involving a traditional employee - employer relationship. i. Johnson stated that Castellano did not participate in the executive session or the vote regarding the offer of employment; however, he conceded that Castellano's abstention was not noted in the meeting minutes. h. Johnson explained that the recording of meeting minutes, including noting when an individual leaves an executive session, has improved as a result of the Commission's investigation. 49. Jeffrey Frankenburger, Esquire ("Frankenburger") is currently the Deputy Executive Director of the State Ethics Commission, prior to which he was supervising investigative counsel from January 2020 to June 2022 and assistant counsel. a. Frankenburger testified that his primary role as Deputy Executive Director of the Ethics Commission is oversight of the Investigative Division. Frankenburger's duties include reviewing complaints to ensure there is a legal basis for opening a complaint file, closing complaints without a sufficient basis to proceed, and reviewing and editing investigative findings reports. b. ID — 26 is a memo dated March 23, 2022 from then -Executive Director of the State Ethics Commission Robert R Caruso authorizing the initiation of a preliminary inquiry into a complaint filed against Castellano. c. ID — 27 is a memo dated May 20, 2022 from Mary W. Fox, Executive Director of the State Ethics Commission, authorizing the initiation of a full investigation into a complaint filed against Castellano. Frankenburger testified that the investigative findings report was issued no later than 360 days after the investigation was initiated. d. Frankenburger testified that he was contacted via email by Wyland requesting information about whether an authority board member could be hired as a paid staff member of the authority (ID — 17). Frankenburger testified that he responded that Wyland was correct that as long as there is no use of authority of office by the board member to secure employment, then there is no conflict of interest under the Ethics Act. ii. Frankenburger explained that use of authority of office could include lobbying other board members, participating in interviews with other candidates and helping to create the job description or salary. Castellano, 22-007 Page 21 iii. Frankenburger testified that Wyland also asked him about the applicability of a section of the Municipal Authorities Act; however, Frankenburger stated that conflict of interest provision in the Municipal Authorities Act is independent of the conflict of interest provision of the Ethics Act. aa. Frankenburger testified that the Municipal Authorities Act has nothing to do with the process by which a board member would get himself hired to a paid staff position. e. Frankenburger testified that he suggested that Wyland request an Advice of Counsel from the Ethics Commission because his opinion in an email has no legal significance. Frankenburger testified that to the best of his knowledge, neither Wyland nor Castellano ever requested an Advice of Counsel. £ R — 45 is an August 15, 2022 email from Castellano to Frankenburger and copied to Jonathan Fry, in which Castellano explains the nature of Figlia Consulting, LLC, and asks about amending her SFIs so that they would be properly completed. i. Frankenburger testified that he did not respond to Castellano's email questions because there was pending Commonwealth Court litigation involving Castellano's bank records and he felt uncomfortable responding to a party respondent in active litigation, particularly when the question relates to a pending allegation. g. Frankenburger testified that he had some concerns about the credibility of Authority Board members because when interviewed as part of the investigation and asked about the lack of abstentions noted in the meeting minutes, they all used similar phrasing to the point that it sounded rehearsed. 50. Stephen Coccorese, Esquire ("Coccorese") is employed by Salzmann Hughes and has been the Solicitor for the Authority Board since July 2021. a. Prior to being the Solicitor, Coccorese did other legal work, including handling labor issues, for the Authority Board for several years. b. Coccorese stated that he met Castellano when the plant employees voted to pursue unionization in 2017. i. Castellano was part of the union negotiations team for the Authority. ii. Coccorese and Castellano also led an investigation into abuse allegations involving certain Authority employees. iii. Due to concerns uncovered during the abuse investigation, Castellano was asked to oversee the plant superintendent, Gene Lank. Castellano, 22-007 Page 22 aa. Lank resigned from the Authority in July 2020. c. Coccorese testified that because of his involvement in the union negotiations and the abuse allegation, he began regularly attending Authority Board meetings in 2020. d. Coccorese explained that after Lank's resignation, the Authority Board began discussions about reorganizing the Authority's structure from a two -person hierarchy to one person in charge of both areas of the Authority. Coccorese discussed the Authority Board's restructuring options with other members of his law firm, one of whom suggested an Executive Director position like some other municipal authorities have in place. ii. Coccorese and the Personnel Committee developed several options which they presented to the Authority Board at its September 2020 meeting. aa. One option was to keep the existing structure with the operation staff and the collection staff each reporting to a supervisor (ID ---- 23C). bb. Another option was to create an Executive Director position to oversee all Authority staff (ID -- 23A and ID — 23B). cc. The Authority Board chose the Executive Director option upon Coccorese's recommendation at its September 2020 meeting. e. Coccorese testified that after deciding to create an Executive Director position, the Authority Board asked him and Castellano to create a job description, have the entire Personnel Committee review it, and then report back to the full Authority Board once the job description was complete. R --- 11 is a series of emails dated October 7 and 12, 2020, from Coccorese to various individuals, including Castellano, Wyland, and Lee Stinnett, soliciting comments and feedback on the draft Executive Director job description that he had drafted. ii. Coccorese testified that at this time, Castellano had not expressed any interest in the Executive Director position. iii. The Authority Board approved the Executive Director job description at its meeting in October 2020. f. According to Coccorese, at the December 2020 meeting, the Authority Board asked Castellano to continue overseeing the day-to-day operations of the Authority in a volunteer capacity. Castellano, 22-007 Page 23 Coccorese stated that Castellano did not ask to be paid for the work she was doing at the Authority. g. Coccorese testified that he became aware in late December 2020 or early January 2021 that Castellano was exploring other employment opportunities, while deciding whether she wanted to return to the workforce. i. One of the employment opportunities being considered by Castellano was working with Coccorese in a human resources/municipal management consulting business. ii. Coccorese testified that around that same time, Authority Board Chairman Jim Spare and Board member Allison Mancuso both contacted him inquiring as to whether Castellano would be interested in the Executive Director position. h. Coccorese stated that Frese interviewed him to discuss the Authority structure and Executive Director position. i. Coccorese did not recall informing Frese that Castellano would feet slighted if not offered the Executive Director position. ii. Coccorese testified that Castellano did not participate in executive sessions regarding Frese's engagement and recommendations. i. Coccorese testified that following the March 25, 2021 special meeting of the Authority Board, he drafted an independent contractor agreement to offer Castellano the position of Executive Director. Coccorese explained that concerns were subsequently raised that Castellano being an independent contractor might violate the Ethics Act, so he recommended that the Authority Board reconvene to discuss this as an employment relationship rather than an independent contractor relationship. ii. Coccorese stated that Castellano was not involved with the discussions about the change from the contract relationship to the employment relationship. iii. R-13 is a series of emails dated April 1, 2 and 7, 2021, from Coccorese to Authority Board Chairman James Spare regarding the Agreement for the Authority to formally engage Castellano as Executive Director. Coccorese prepared the Agreement and asked for Chairman Spare's comments or questions prior to sending it to the Personnel Committee, minus Castellano, for review. iv. R — 13 also includes an email to the Personnel Committee from Coccorese in which he attaches a draft letter to offer Castellano the position of Executive Director. Castellano, 22-007 Page 24 V. Coccorese testified that the decision to change the type of work arrangement being offered to Castellano was discussed in the executive session of the April 21, 2021 Authority Board meeting. aa. Coccorese stated that Castellano did not participate in this executive session and, in fact, left the meeting altogether during these discussions. bb. Coccorese also stated that Castellano did not participate in the vote to offer her employment as the Executive Director. 51, Darrin Spann ("Spann") is the former director of AFSCME District Council 90. a. Spann and Castellano know each other because Spann helped to negotiate the union contract at the Authority. b. Spann testified that the Authority followed the proper union procedures regarding the issues that arose with Christopher Heagy. 52. Allison Mancuso ("Mancuso") is currently the Treasurer of the Authority Board. a. Mancuso has been a member of the Authority Board for nine years and also serves as Chair of the Personnel Committee. b. Mancuso testified that the Authority Board asked Castellano, then chair of the Personnel Committee, and Coccorese to work together and provide options for restructuring and reorganization of the Authority. Mancuso stated that as a result, Coccorese presented two options for the Authority Board's consideration. ii. At the September 2020 meeting, the Authority Board selected the executive director option and asked Coccorese to develop a job description with assistance from Castellano. iii. At the subsequent meeting in October 2020, the Authority Board voted to approve the Executive Director job description and decided to move forward with ways to advertise the position. aa. Mancuso stated that the Authority Board later chose to delay advertising the Executive Director position after a number of long-term employees retired and because the Authority was still dealing with the fallout from the abuse investigation. Castellano, 22-007 Page 25 bb. Mancuso stated that at the December 2020 meeting, the Authority Board asked if Castellano would keep overseeing the Authority; Castellano did not ask to be compensated for her work at the Authority. cc. Mancuso testified that Castellano did not express any desire to be hired as the Executive Director at the December 2020 meeting. c. Mancuso testified that she first learned that Castellano might be interested in the Executive Director position sometime in late January or early February 2021. i. Mancuso explained that once she learned that Castellano might be interested in the position, then she did not want to seek any external candidates. ii. Mancuso stated that Castellano never lobbied for her vote to appoint her to the position, never discouraged her or the Authority Board from seeking other candidates, and did not negotiate with her for her salary and benefits. d. Mancuso testified that beginning with the January 2021 Authority Board meeting, Castellano was not involved in any executive session discussions regarding the Executive Director position or the use of Frese to assist the Authority Board in its reorganization. Mancuso agreed that there was nothing in the January 2021 minutes which indicated that Castellano recused from the discussion regarding the Executive Director position or the engagement of Frese (ID — 4). ii. Mancuso stated that it was the job of the Solicitor to make sure that an Authority Board member's recusal or abstention was noted in the meeting minutes. iii. Mancuso agreed that she was not pleased with the idea of engaging Frese because of the way it was presented by Wyland that Frese was going to redo all of the job descriptions that they had already spent months doing; She believed that "[ijt was a spinning the wheels kind of thing." aa. Mancuso sent an email to Coccorese expressing her displeasure at hiring Frese and asking if she could change her vote from "yes" to "no" (R --12). e. Mancuso stated that Castellano was offered an independent contractor contract for the Executive Director position, with pay retroactive to March 1, 2021, at the March 25, 2021 special meeting. Mancuso explained that she pushed for retroactive pay since Frese's report was supposed to be completed by February but was pushed back to March and because Castellano had already been doing the position for over a year. Castellano, 22-007 Page 26 ii. Mancuso was adamant that Castellano did not take part in the vote to offer her the Executive Director position. f. Mancuso explained that after some potential legal issues arose with having Castellano work as an independent contractor, the Authority Board decided to offer Castellano employment as the Executive Director. i. The offer of employment was made at the April 21, 2021 Authority Board meeting. ii. Mancuso testified. that Castellano did not take part in the vote to offer her employment as the Executive Director. 53. James Werner ("Werner") has been a member of the Authority Board for four years and currently serves as Co -Chairman. a. Werner testified that the Authority Board considered different options for restructuring and ultimately chose to reorganize with a newly created Executive Director position in charge of the Authority. b. Werner testified that Castellano did not lobby him for the Executive Director position, discourage him or the Authority Board from seeking other candidates, vote for herself to have the position, or negotiate her compensation and benefits. c. Werner stated that he first became aware that Castellano was interested in the position right around the same time she accepted the job. d. Werner testified that Wyland advised the Authority Board that it could offer Castellano the Executive Director position, and also advised Castellano that she could accept the Executive Director position, without violating the Ethics Act. 54. Richard Murphy ("Murphy") was a member of the Authority Board from 2015 until the end of 2022. a. Murphy testified that following the abuse investigation, the Authority Board asked Castellano and Coccorese to oversee Gene Lank, the plant superintendent. i. Lank resigned in July 2020 and Castellano continued to assist with the administrative duties at the Authority. b. Murphy was not present for the March 25, 2021 or April 21, 2021 Authority Board meetings due to work conflicts. c. Murphy testified that Castellano never lobbied him for the Executive Director position. 55. John Lawson ("Lawson") has been an Authority Board member for a little over two years. Castellano, 22-007 Page 27 a. Lawson testified that his first meeting was in February 2021 and that Castellano was not in executive session for that meeting. b. Lawson missed a number of meetings in 2021 due to COVID-related deaths in the family. i. Lawson reviewed the minutes from the meetings he missed to keep up to speed on Authority Board issues. c. Lawson testified that Castellano never lobbied him for the Executive Director position. 56. Matthew D. Cichy ("Cichy") has been a member of the Authority Board since 2018-2019 and currently serves as Secretary. a. Cichy is a licensed professional engineer with the firm of Herbert, Bowen and Rubric. b. Cichy testified that following the abuse investigation, the Authority Board asked Castellano to oversee Gene Lank, the plant superintendent due to some concerns that he was not satisfactorily fulfilling his role. i. After Lank resigned, the Authority Board asked Castellano to take on the additional role of directing staff at the Authority because there was a lack of leadership at the plant. aa. Castellano was not paid for her duties at the Authority. c. Cichy stated that the Authority Board considered different options for restructuring and ultimately chose to reorganize with a newly created Executive Director position in charge of the Authority. d. Cichy testified that he heard from Mancuso in the spring of 2021 that Castellano may be willing to accept the position of Executive Director. i. Cichy testified that Castellano never lobbied him for the Executive Director position. e. When asked whether Castellano was in the March 25, 2021 executive session to discuss her possible employment, Cichy replied: "Not to my knowledge. I don't recall." i. Cichy agreed that the March 25, 2021 meeting minutes do not contain any notation that Castellano was not part of executive session and abstained from the vote regarding the Executive Director position. Castellano, 22-007 Page 28 ii. Cichy testified that since the investigation into Castellano's activities by the Ethics Commission, the Authority Board has become much more conscientious with its meeting minutes. f. Cichy testified that at the April 2021 meeting, Castellano did not participate in the vote regarding her employment at the Authority. 57. Alex Morrison ("Morrison") is a contract engineer for Arrow Consulting and was the client contact and engineer for the Authority for twenty-eight years. He is no longer the client contact but remains the engineer. a. Morrison had no concerns about Castellano not having an engineering degree or holding an operator's license for the wastewater treatment plant. b. Morrison had no firsthand knowledge of whether Castellano spoke with anyone about becoming Executive Director or whether she lobbied to become Executive Director. 58. George Moppin ("Moppin") has been employed at the Authority for thirty-two years and is currently its chief operator. a. Moppin met Castellano when the union negotiations started. b. Moppin recalled having a meeting with Frese but could not recall much of what was discussed during the meeting. c. R — 26 is a copy of a text message conversation between Castellano and Moppin on March 8 through 12, 2021, in which Castellano advises Moppin that it was okay for him to speak with Frese. i. Moppin indicated that he had no way to videoconference with Frese because he did not have a laptop with a camera, so Castellano suggested that he ask Heagy to use his laptop or that Moppin and Heagy could speak to Frese together. ii. Castellano subsequently inquired as to whether everything worked out for Moppin to speak with Frese, to which Moppin replied, "No, we're set up for Monday." iii. Moppin indicated that Frese was going to speak with him over the telephone so Moppin would not have to use Heagy's laptop. d. Moppin testified that Castellano did not coach him on what to say to Frese. Castellano subsequently inquired as to whether everything worked out for Moppin to speak with Frese 59. Michael Varner ("Varner") has been employed by the Authority for twenty-nine years and is currently the collection system and maintenance foreman. Castellano, 22-007 Page 29 a. Varner took over as foreman after Heagy stepped down from the position and in doing so, Varner became Heagy's supervisor. b. Varner was involved in the union proceedings involving Heagy's employment. c. Varner testified that Heagy filed a criminal complaint alleging that he had stolen apiece of Authority equipment. 60. Natalie Blackman ("Blackman") is the executive coordinator for the Authority, a position she has held for two years. a. Blackman previously was an employee of the Authority for ten years but was terminated by prior management. b. In or around February 2021, the Secretary of the Authority Board changed, and Blackman began taking minutes for Authority Board meetings. i. Blackman does not attend executive sessions. ii. Blackman did not attend the March 25, 2021 special meeting because it was all executive session; Authority Board Secretary Paul Johnson did the meeting minutes. iii. Blackman was present for the April 21, 2021 meeting but could not remember whether she was still present when the Authority Board came out of executive M&ITR3N c. Blackman agreed that the minutes are the main record of what occurs at Authority Board meetings and are relied upon when you need to check something from a past meeting. d. R — 27 is a series of photographs of the previous business manager's office. i. Blackman described the office as "a mess" and stated that they found all sorts of checks, business documents, tax returns, "ethics forms" and other financial documents in the office. C. Exhibits 61. ID — 1 is a certification signed by Gerald A. Miller, custodian of records for the Swatara Township Authority, attesting to the accuracy of records provided, i.e., meeting minutes, Castellano's job description, resume and application, employment contract, W-2s, payroll reports, job advertisement or announcement, Statements of Financial Interests, roster of Authority Board members, and all other pertinent Authority records. Castellano, 22-007 Page 3 0 69. ID — 2 consists of the minutes of the September 16, 2020 Authority Board meeting which provide, in pertinent part, as follows: Next, Ms. Castellano and Mr. Coccorese commenced discussion around the proposed reorganization and restructuring of the Authority. Previously, the Board requested they begin this process on the Authority's behalf. Ms. Castellano presented two charts outlining an Option A (an Executive Director and a Chief Operator with a plant license) and an Option B (a Superintendent with a Human Resources Director), and provided background and commentary on each. Mr. Coccorese weighed in on various legal aspects to both options.... Mr. Murphy made a motion to have the Authority pursue Option A, beginning with Ms. Castellano and Mr. Coccorese creating a job description for the Personnel Committee's review by the October Board meeting. Mr. Roberts seconded the motion. The motion passed. Ms. Castellano signed the meeting minutes as Secretary of the Authority Board, 70. ID — 3 consists of the minutes of the October 21, 2020 Authority Board meeting which provide, in pertinent part, as follows: Mr. Coccorese asked the Board to approve previously -discussed reorganization plan for the Authority recommended by the Personnel Committee, so that he and Ms. Castellano can move forward working with the Personnel Committee on these issues. A motion to move forward with the Authority reorganization plan as previously discussed was made by Mr. Johnson. Ms. Mancuso seconded the motion. The motion was approved. Ms. Castellano signed the meeting minutes as Secretary of the Authority Board. 71. ID — 4 consists of the minutes of the January 20, 2021 Authority Board meeting in which Ms. Castellano was voted Vice Chairman and was reappointed to the Personnel Committee, including serving as the Chair of the Committee. The minutes further reflect that Solicitor Wyland recommended that the Authority utilize an employment expert, Kent Frese, Ph.D., to create job descriptions plus recruit and screen applicants. Castellano motioned to accept the report of Solicitor Wyland, and the motion passed. 72. ID — S consists of the minutes of the February 17, 2021 Authority Board meeting which provide, in pertinent part, as follows: Castellano, 22-007 Page 31 Mr. Johnson motioned to accept the proposal from Dr. Kent Frese. Mr. Cichy seconded; Ms. Castellano abstained, as she was not in the Executive Session. The motion passed. 73. ID — 6 consists of the minutes of the March 25, 2021 Authority Board special meeting in which Dr. Kent Frese made his report in the executive session, after which Mr. Johnson made a motion to accept Mr. Frese's report and offer Ms. Castellano a contract in accordance with the terms of the report. After Ms. Mancuso seconded, the motion carried. There is nothing in the minutes which indicates that Castellano abstained from voting on this motion. 74. ID — 7 consists of the minutes of the April 21, 2021 Authority Board meeting in which the minutes of March 17, 2021 and March 25, 2021 were approved without correction or objection. The April 21, 2021 meeting minutes also provide, in pertinent part, as follows: Mr. Johnson motioned to extend an offer of employment as Executive Director to Ms. Melissa DiSanto Castellano, under the terms previously discussed. Mr. Werner seconded, and the motion passed. Mr. Wyland reviewed the proposed employment arrangement and advised Ms. Castellano that the employment would not violate the Ethics Act. Ms. Castellano subsequently relied on Mr. Wyland's advice. (Emphasis added). 75. ID — 8 consists of the minutes of the May 19, 2021 Authority Board meeting in which the minutes of the April 21, 2021 were approved after Mr. Cichy requested that a comment mistakenly attributed to him was removed. Mr. Cichy made the motion to accept the minutes with the requested revision. Ms. Castellano seconded, and the motion passed. 76. ID — 9 consists of the minutes of the July 7, 2021 Authority Board meeting in which Ms. Castellano, as Acting Chairman, discussed the leadership and succession planning of the Authority Board in light of the deaths of the chairman and another longstanding member. The minutes indicate, in relevant pant, as follows: After some discussion, the Board asked Ms. Castellano to serve in the dual role of Executive Director and Board Chair, at least until January 2022. Ms. Castellano agreed, but asked that an interim Vice Chair be elected. Mr. Cichy was elected as the interim Vice Chair. 77. ID — 10 consists of the minutes of the February 16, 2022 Authority Board meeting which indicate that Ms. Castellano asked that the December 15, 2021 meeting minutes be corrected to reflect that she abstained from voting on the cost -of -living adjustment recommendations. The December 15, 2021 meeting minutes were approved as corrected. Castellano, 22-007 Page 32 78. ID --- 11 is an April 21, 2021 letter to Castellano from Authority Board Chair Tames Spare outlining the terms of Castellano's employment as Executive Director of the Authority. The letter offers Castellano the position of Authority Executive Director effective March 1, 2021 at an annual salary of $130,000.00 for thirty work hours per week. The letter further explains that because her effective start date was March 1, 2021, Castellano will be eligible for health insurance benefits beginning May 1, 2021. 79. ID — 12 is a declaration from Brenda Mebane, the custodian of records for Paychex, Inc., attesting to the accuracy of the records provided, i.e., payroll records for Castellano for her employment at the Authority. The records document net payments totaling $139,350.68 to Castellano for the period of April 26, 2021 to September 20, 2022, 80. ID — 13 is a Statement of Financial Interests for Castellano for calendar year 2017. a. On this form, for Block 10, pertaining to "Direct or Indirect Sources of Income," Castellano listed "Melissa DiSanto Castellano a.k.a. Figlia Consulting, LLC." b. On this form, for Block 13, pertaining to "Office, Directorship, or Employment in any Business," Castellano listed "Swatara Twp. Authority Board." C. On this form, the box "none" is checked for Block 14, pertaining to "Financial Interest in any Legal Entity in Business for Profit." 81. ID ---- 14 is a Statement of Financial Interests for Castellano for calendar year 2018. a. On this form, for Block 10, pertaining to "Direct or Indirect Sources of Income," Castellano listed "Figlia Consulting, LLC (Melissa DiSanto)." b. On this form, the box "none" is checked for Block 13, pertaining to "Office, Directorship, or Employment in any Business." C. On this form, the box "none" is checked for Block 14, pertaining to "Financial Interest in any Legal Entity in Business for Profit." 82. ID — 15 is a Statement of Financial Interests for Castellano for calendar year 2019. a. On this form, for Block 10, pertaining to "Direct or Indirect Sources of Income," Castellano listed "Figlia Consulting/Melissa DiSanto." b. On this form, for Block 13, pertaining to "Office, Directorship, or Employment in any Business," Castellano listed "Figlia Consulting/Melissa DiSanto." C. On this form, the box "none" is checked for Block 14, pertaining to "Financial Interest in any Legal Entity in Business for Profit." 83. ID 16 is a Statement of Financial Interests for Castellano for calendar year 2020. Castellano, 22-007 Page 33 a. On this form, for Block 10, pertaining to "Direct or Indirect Sources of Income," Castellano listed "Figlia Consulting, LLC." b. On this form, for Block 13, pertaining to "Office, Directorship, or Employment in any Business," Castellano listed "PA Cyber Charter School/Board of Trustees." On this form, the box "none" is checked for Block 14, pertaining to "Financial Interest in any Legal Entity in Business for Profit." 84, ID 17 is a February 19, 2021 email exchange between Authority Solicitor Scott Wyland and Supervising Investigative Counsel for the State Ethics Commission, .Ieffeiy Frankenburger, in which Mr. Wyland inquires about the ethical legality of an authority hiring one of its board members to a paid staff position. Mr. Frankenburger provided some general guidelines under the Ethics Act but suggested that Mr. Wyland request an Advice of Counsel from the Commission's Chief Counsel. 85. ID — 18 is a March 5th text message exchange between Castellano and Christopher Heagy in which Castellano advises that she was going to meet with the outside consultant "that was brought in to assess if 1 can be the [paid] manager and still serve on the Board (the thing I explained to you the other day, after we met with Gerry)." After Castellano met with the consultant, she sent a text message to Heagy informing him that the outside consultant may want to speak with him too and that she would discuss it later with Heagy. 86. ID —19 are copies of handwritten notes taken by Dr. Kent Frese during a conversation with Solicitor Wyland on February 16, 2021. These notes reflect that Melissa (Castellano) is a board member who was handling a lot of HR stuff and that the Authority Board may look at hiring her. 87. ID — 20 is the engagement letter of Kent Frese, Ph.D./Team LMI, in which he outlines the services he can provide to the Authority and its hiring efforts. Specifically, the letter specifies that Dr. Frese's services include talking to key stakeholders, providing specific recommendations to the Authority Board and, if needed, providing hiring services to find the best candidate for the position. Attached to the letter are the following documents: (1) Needs Analysis and Hiring Services, (2) Timeframe, (3) Biography of Dr. Frese and his consulting business, (4) the cost of the services, $1.650,00, and (5) the signed contract between Team LMI (Dr. Frese) and Swatara Township Authority. 88. ID — 21 are copies of handwritten notes taken by Dr. Kent Frese during his first conversation with Castellano on March 5, 2021 in which he noted that the Authority Board had voted and approved revised Option A for the restructuring of the Authority. Dr. Frese's notes further indicate that he should speak with Chris Heagy, foreman, and George Moppin, chief. Castellano, 22-007 Page 34 89. ID — 22 are copies of handwritten notes taken by Dr. Kent Frese during his second conversation with Castellano. His notes reflect, in pertinent part, the following: Melissa call #2 - Yes, wants it. - 30-351us/wk. - Want seat? Unsure. - 1 yr contract — preferred - Willing to vacate her seat. - Deep the seat open. - 12 mth contract. - May want FT role or just return to Board. 90. ID — 23A is "Option A" presented to the Authority Board. Under this option, an Executive Director would be created to oversee all aspects of the Authority, with four department heads, including Business Manager, Chief Operator, Collections Foreman, and Lab Director, reporting directly to the Executive Director, 91. ID — 23B is "Revised Option A" presented to the Authority Board. Under this option, an Executive Director would be created to oversee all aspects of the Authority, with three department heads, including Business Manager, Chief Operator and Collections Foreman, reporting directly to the Executive Director. 92. ID ---- 23C is "Option B" presented to the Authority Board. Under this option, the vacant Superintendent position would be filled and the Superintendent would oversee the positions of Chief Operator, Collections Foreman, and Lab Director. In addition, a position of Human Resources Director would be created to oversee items, such as employee relations, benefits, liaison to union issues, and some policy issues. 93. ID -- 25 is the March 2021 Organizational Needs Analysis Report for Swatara Township Authority drafted by Dr. Kent Frese. This report provides, in pertinent part, as follows: ...Melissa Castello [sic] provided substantial operational and strategic support as the personnel chair during this time without compensation. She functioned as an acting Executive Director for more than a year during a global pandemic. The management team and the board are in agreement that they would like her to continue in this role and finish the process, including completing the negotiation of the union contract. Recommendations ... For the executive director, Melissa is the logical choice to finish the work she has started and she should be given the opportunity to focus on this work and be compensated for the substantial commitment required. Castellano, 22-007 Page 35 Compensation ...The range from our data is $90K to $150K for direct compensation plus bonus and other benefits for a top executive in a similar role. 94. ID — 26 is a memo dated March 23, 2022 from then -Executive Director of the State Ethics Commission Robert P. Caruso authorizing the initiation of a preliminary inquiry into a complaint filed against Castellano. 95. ID — 27 is a memo dated May 20, 2022 from Mary W. Fox, Executive Director of the State Ethics Commission, authorizing the initiation of full investigation into a complaint filed against Castellano. 96. R — 11 is a series of emails dated October 7 and 12, 2020, from Solicitor Stephen Coccorese to various individuals, including Castellano, Scott Wyland, and Lee Stinnett, soliciting comments on the draft Executive Director job description. 97. R — 12 is a February 18, 2021 email to Solicitor Stephen Coccorese from Allison Mancuso regarding the Authority Board's proposal to utilize the services of Kent Frese, Ph.D. 99. R -- 13 is a series of emails dated April 1, 2 and 7, 2021, from Solicitor Stephen Coccorese to Authority Board Chairman James Spare regarding the Agreement for the Authority to formally engage Castellano as Executive Director. Solicitor Coccorese prepared the Agreement and asked for Chairman Spare's comments or questions prior to sending it to the Personnel Committee, minus Castellano, for review. R ---- 13 also includes an email to the Personnel Committee from Solicitor Stephen Coccorese in which he attaches a draft letter to offer Castellano the position of Executive Director. 99. R — 17 is a series of text messages between Castellano and Chris Heagy on March 5 and 8, 2021 in which Castellano discusses the status of the collective bargaining agreement, as well as an upcoming meeting with the outside consultant to determine her eligibility to serve as a paid Authority employee while still serving on the Authority Board. Included within these text messages is Castellano's message that the outside consultant may want to speak with Heagy and George (Moppin). 100. R 22 is a March 25, 2021 text message from Castellano to Solicitor Scott Wyland in which Castellano sends him a copy of "Revised Option A" regarding the Authority's reorganization options. 101. R — 23 is a summary of Castellano's talk activity on her Verizon cell phone from March 1, 2021 to March 28, 2021. Castellano, 22-007 Page 36 102. R — 24 is a duplicate of ID —17. 103. R — 25 is a duplicate of ID ---- 17 with an additional email exchange dated February 19, 2021 between Solicitor Scott Wyland and Supervising Investigative Counsel Jeffery Frankenburger in which Wyland asks Frankenburger to "Have a look at the Authorities Act, section 5014(e), which may bar an arrangement whereby the member has a consulting contract with the Authority. That section does not bar the employee relationship though." Frankenburger agreed with Wyland's opinion that the Municipal Authorities Act does not prohibit employment in the authority by a board member. 104. R — 26 is a text message conversation between Castellano and George Moppin on March 8, 9, 11 and 12, 2021, in which Castellano advises Moppin that it was okay for him to speak with Kent Frese, the outside consultant. Castellano subsequently inquires as to whether everything worked out for Moppin to speak with Dr. Frese. 105. R — 27 are a series of photographs of the previous business manager's office at the Authority. 106. R -- 41 consists of the minutes of the July 21, 2021 Authority Board meeting in which Castellano appointed Authority Board member Allison Mancuso as Chair of the Personnel Committee and Board representative for union meetings. 107. R — 45 is an August 15, 2022 email from Castellano to Jeffery Frankenburger and copied to Jonathan Fry, in which she explains why Figlia Consulting, LLC, is listed on her Statements of Financial Interests. The mail states, in pertinent part, as follows: Figlia Consulting, LLC was a business name I created for my writing and advocacy work. The LLC was never paid, and I was never paid under the LLC, but rather I was paid as a permanent part- time or seasonal employee of the entities for whom I did work or projects.... During the years in question for me by the Commission -- 2016 through 2021 — I had no income from the LLC. 108. R — 48 begins with a March 9, 2023 email to the parties from Bridget K. Guilfoyle, Chief Counsel to the State Ethics Commission, outlining the dates of hearing for the case. Both parties subsequently indicated their availability for the proposed hearing dates. Castellano also asked several procedural questions regarding the filing of SFIs and the filing of a Motion to Dismiss. III. DISCUSSION: As a member of the Swatara Township Authority Board ("Authority Board"), Dauphin County, from January 2007 to the present, and as Vice Chairman of the Authority Board, Castellano, 22-007 Page 37 Respondent Melissa Castellano ("Castellano') was a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq. The allegations as set forth in the Investigative Complaint/Findings Report are that Castellano violated Sections 1103(a), 1105(b)(8) and 1105(b)(9) of the Ethics Act: (1) When she used the authority of her public position for the private pecuniary benefit of herself when she led the discussions to alter the managerial structure of the Swatara Township Authority ("Authority") and participated in the vote to approve the managerial restructure; (2) When she used the authority of her public position for the private pecuniary benefit of herself when she participated in the process which resulted in her being hired for the position of Authority Executive Director; (3) When she used the authority of her public position for the private pecuniary benefit of herself when she participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director; (4) When she filed failed to disclose her employment with Figlia Consulting, LLC on Statements of Financial Interests ("SFIs") filed for calendar years 2017, 2018 and 2020; and (5) When she failed to list her business interest in Figlia Consulting, LLC on SFIs filed for calendar years 2017 through 2020. Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The terra "conflict" or "conflict of interest" is defined in the Ethics Act as follows: § 1102. 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 Castellano, 22-007 Page 38 with which he or a member of his immediate family is associated. The term 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. "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. 65 Pa.C.S. § 1102. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest, 65 Pa.C.S. § 1102, pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. The use of authority of office is not limited merely to voting but extends to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809 Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any office, directorship or employment of any nature whatsoever in any business entity. Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any financial interest in any legal entity. We shall now summarize the relevant facts. The Authority Board is comprised of nine members. Castellano has served as a member of the Authority Board since January 2007. Her current term expires on December 31, 2024. Castellano has held various positions on the Authority Board, including Secretary, Vice Chairman and Chairman. She currently serves as Vice Chairman. Re ardin Castellano's Participation in the Discussions to Alter the Managerial Structure of the Swatara Township Authority and Participation in the Vote to Approve the Managerial Restructure From December 2019 to February 2020, Castellano and Authority Board labor attorney Stephen Coccorese ("Coccorese") conducted an internal investigation into two Authority Sewer Plant employees. The two employees were terminated in March 2020 based upon a finding that Castellano, 22-007 Page 39 they engaged in workplace violence, harassment and bullying of another Authority Sewer Plant employee. Following termination of these two employees, the Authority Sewer Plant Superintendent Gene Lank ("Lank") was placed on a performance improvement plan with a "last chance option." Castellano was asked to oversee the work activities of Lank. Subsequently, Lank resigned from the Authority in July 2020. Prior to the departure of Lank, the Authority had a management structure in which the superintendent was responsible for overseeing the sewer plant and its workers, and a business office manager was in charge of the administrative employees at the Authority's office. As a result of the termination of two employees and the resignation of the plant superintendent, the Authority was in a period of flux in the summer of 2020. Between July 2020 and September 2020, the Authority Board's Personnel Committee of which Castellano was the chair at that time, discussed restructuring Authority management. Coccorese also was a part of the Personnel Committee meetings. During the September 16, 2020 Authority Board meeting, Castellano discussed reorganization with the rest of the Authority Board members. Two general options were presented for the Authority Board's consideration. Option A included hiring an Executive Director to oversee the Authority. Option B included hiring a Human Resources Director to oversee administrative issues and a Superintendent to oversee the sewer plant. The Authority Board voted to approve Revised Option A, which had been revised slightly in terms of which positions would report directly to the Executive Director. Castellano participated in the discussion and voted to approve Revised Option A; however, she did not lobby for any particular result by the Authority Board, Reeardina Castellano's Participation in the Process which Resulted in Her Being_ Hired for the Position of Authority Executive Director The Authority Board requested that Coccorese and Castellano work together to develop a job description for the Executive Director position. After drafting the job description, Coccorese sought input from other members of his law firm and Castellano. During the October 21, 2020 meeting, the Authority Board voted to move forward with the organizational plan and approved the job description. Castellano participated in the discussion and voted to approve the job description and move forward with the reorganization plan. Between October 2020 and January 2021, the Personnel Committee continued to meet and discuss hiring an Executive Director. The Authority Board chose to delay advertising the Executive Director position after a number of long- term employees retired and because the Authority was still dealing with the fallout from the abuse investigation. At no time during this period did Castellano express any interest in the Executive Director position. In fact, she specifically disavowed any interest in the position when asked of her interest by several individuals. At the January 20, 2021 meeting, Authority Board Solicitor Scott Wyland ("Wyland") recommended that the Authority Board hire corporate management consultant Kent Frese, Ph.D. ("Frese") to assist in the Authority restructuring process. Castellano voted to approve Wyland's report to the Authority Board. Sometime in late January or early February, Castellano had a change Castellano, 22-007 Page 40 of heart and informed several individuals that she would consider the Executive Director position. The Authority Board reviewed Frese's consulting agreement at its February 17, 2021 meeting and voted to approve the hiring of Frese. Notably, Castellano abstained from the vote and was not in executive session when Frese's contract was discussed and approved. As part of his evaluation of the Authority and its operating structure, Frese met with a number of Authority stakeholders, including Wyland, Coccorese, Authority Business Manager Gerry Miller, Authority Board members Castellano, Allison Mancuso, James Spare and Paul Johnson, and Authority employees Chris Heagy and George Moppin. After meeting with Castellano initially on March 5, 2021, Frese requested a second meeting with Castellano because he still was unclear whether Castellano wanted the Executive Director position and because he was scheduled to present his report and recommendations to the Authority Board that evening. During this second meeting, Castellano expressed her interest in the Executive Director position and the terms under which she would accept such a position. Regarding the Vote by the Authority Board to Offer the Executive Director Position to Castellano Frese presented his report and recommendations to the Authority Board at a special meeting on March 25, 2021. Castellano was not present for Frese's presentation. Frese noted that Castellano had provided substantial operational and strategic support to the Authority without receiving any compensation and believed that she was the logical choice for the Executive Director position. During the March 25, 2021 special meeting, the Authority Board voted to offer Castellano an employment contract for the Executive Director position at a salary of $130,000.00 per year. The meeting minutes do not contain any notation of an abstention from Castellano. Ultimately, Castellano was not offered an employment contract but was instead offered employment as Authority Executive Director at the April 21, 2021 Authority Board. meeting. Given that Castellano had been doing many of the duties of Executive Director at the Authority Board's request for approximately 18 months, including guiding the Authority during the COVID pandemic, the Board approved her employment retroactive to March 1, 2021. In addition to her salary, Castellano also received health, dental and vision insurance coverage for herself and her family. Regarding Castellano's SFIs: Castellano filed SFIs for calendar years 2017 through 2020. Each of the forms lists Figlia Consulting as a direct or indirect source of income. Figlia Consulting, LLC was created in 2008 and is owned by Castellano. Castellano failed to list on her SFIs for calendar years 2017, 2018 and 2020 that she had an office, directorship, or employment in Figlia Consulting, LLC, as required by Block 13. Notably, she did include Figlia Consulting in Block 13 "Office, Directorship, or Employment in any Business" on her SFI filed for calendar year 2019. In addition, Castellano did not list on her SFIs for calendar years 2017 through 2020 that she had a financial interest in Figlia Consulting, LLC, as required by Block 14. Castellano, 22-007 Page 41 Having summarized the relevant facts, we must now determine whether the actions of Castellano violated Sections 1103(a), 1105(b)(8) or 1105(b)(9) of the Ethics Act, 65 Pa.C.S. §§ 1103(a), 1105(b)(8), 1105(b)(9). As we apply the facts to the allegations, due process requires that we not depart from the allegations. Pennsy v. Department of State, 594 A.2d 845 (Pa. Cmwlth. 1991). A violation of the Ethics Act must be based upon clear and convincing proof. 65 Pa.C.S. § 1108(g). Clear and convincing proof is "so `clear, direct, weighty, and convincing as to enable the trier of fact to come to a clear conviction, without hesitance, of the truth of the precise facts in issue."' In Re: Charles E.D.M., 550 Pa. 595, 601, 708 A.2d 88, 91 (1998) (Citation omitted). Per the Pennsylvania Supreme Court's decision in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011), in order to violate Section 1103(a) of the Ethics Act, a public official/public employee: ... must act in such a way as to put his [office/public position] to the purpose of obtaining for himself a private pecuniary benefit. Such directed action implies awareness on the part of the [public official/public employee] of the potential pecuniary benefit as well as the motivation to obtain that benefit for himself. Kistler, supra, 610 Pa. at 523, 22 A.3d at 227. To violate Section 1103(a) of the Ethics Act, a public official/public employee "must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or more specific steps to attain that benefit." Id., 610 Pa, at 528, 22 A.3d at 231. In considering the first allegation alleging a conflict of interest, we determine based upon a review of the evidence of record that there is insufficient evidence to establish that Castellano used the authority of her public position for the private pecuniary benefit of herself when she led discussions to alter the managerial structure of the Authority and participated in the vote to approve the managerial restructure. It is undisputed that as chairman of the Personnel Committee, Castellano was part of discussions to alter the managerial structure of the Authority following the departure of the plant superintendent. It is equally undisputed that Castellano participated in the vote to approve the restructuring of the Authority to include the creation of an Executive Director position. The meeting minutes from October 21, 2020 demonstrate as much (ID — 3). What is lacking, however, is any evidence to demonstrate that Castellano was positioning herself to be hired to this newly created position. Not one witness testified that Castellano expressed interest in the position during the timeframe that the restructuring occurred. In fact, every witness with knowledge of the events that took place from July 2020 until the Authority Board approved the restructuring in October 2020 testified credibly that Castellano never vocalized any interest in the Executive Director position. Additionally, both Wyland and Coccorese were convincing in their testimony that not only did Castellano not express any interest Castellano, 22-007 Page 42 in the position during that timeframe but that she specifically disclaimed any interest in securing the Executive Director job. While the Investigative Division argues that the link between the creation of the position and Castellano being hired for the job is obvious given that Castellano unquestionably participated in the formation of a position that she eventually filled, there is no clear and convincing evidence that this is the case. Kistler requires that a public official/public employee be aware of the private pecuniary benefit to herself and that she take affirmative steps to attain that benefit. The record is devoid of evidence of Castellano taking any such steps to secure the position of Executive Director. Without any testimonial or documentary evidence to prove that Castellano participated in the creation of the Executive Director position for the express purpose of obtaining the job for herself, we cannot conclude that Castellano used the authority of her office for the private pecuniary benefit of herself. The Investigative Division next asserts that Castellano violated Section 1103(a) of the Ethics Act by using the authority of her public position for the private pecuniary benefit of herself when she participated in the process which resulted in her being hired for the position of Authority Executive Director. Based upon a review of the record, we conclude that there is insufficient evidence to prove that Castellano tools any steps in her official capacity as an Authority Board member that resulted in her being hired as Executive Director once Castellano expressed interest in the available position. The threshold inquiry is a necessary determination as to when Castellano expressed interest in the Executive Director position. The record reflects that the earliest that Castellano expressed interest in the position was sometime in January 2021. To that end, the following is a summary of when relevant interested parties first became aware of Castellano's potential interest in the Executive Director position: 1) Coccorese — January 2021; 2) Johnson -- Learned from Coccorese; 3) Mancuso — Late January or early February 2021; 4) Werner — March 2021; 5) Cichy — Learned from Mancuso in spring of 2021; and 6) Frese — March 2021 In light of the testimony offered by the foregoing witnesses, the earliest date in which it can be conclusively established that Castellano expressed interest in the position is when she informed Coccorese, the individual with whom she worked closely for many years, in January 2021. Although Wyland testified to his belief that Castellano informed him of her interest sometime in December 2020, his testimony in this regard was speculative at best. Moreover, Wyland stated that he reached out to the Ethics Commission once he learned of Castellano's interest in the position. His email to Frankenburger was dated February 19, 2021, thus making it much more likely that he learned of Castellano's job interest in February 2021 rather than December 2020. Consequently, the testimony of the other witnesses that it was sometime in early 2021 that Castellano publicly declared her interest in the job is found to be more reliable than the admittedly speculative testimony of Wyland. Castellano, 22-007 Page 43 Having determined that Castellano first expressed interest in the position in January 2021, we next must decide what, if any, steps Castellano took in her official capacity as an Authority Board member after that time that resulted in her being hired as Executive Director. The meeting minutes from January 20, 2021 show that Castellano motioned and voted to approve the report of Wyland, in which he suggested the use of consultant Frese; however, by the time of the next Authority Board meeting on February 17, 2021, Castellano did not participate in the executive session discussions regarding Frese and abstained from voting to approve the consultant contract with Frese. Since we do not have any definitive evidence of what date in January 2021 Castellano openly expressed her interest in the job to Coccorese, the logical inference to be drawn from the meeting minutes is that Castellano had not yet advised Coccorese of her interest in the Executive Director position by the January 20, 2021 Authority Board meeting but did express interest by the time of the February 17, 2021 meeting, leading to her abstention from the discussions and vote regarding the hiring of Frese. Regarding the Investigative Division's allegation that Castellano utilized her authority as an Authority Board member to influence the information provided to Frese by Authority employees Heagy and Moppin, the record does not support such a conclusion. Neither Heagy nor Moppin testified that Castellano told them what to say to Frese or that she tried to influence their interaction with Frese to her benefit. While Heagy testified that Castellano told him the questions Frese was going to ask him, his credibility is questionable at best given the manner in which his Authority employment ended and his obvious anger toward Castellano. The Investigative Division suggests that Castellano exerted her influence as a long-time Authority Board member in an effort to obtain the Executive Director position. To the contrary, the evidentiary record is replete with testimony from countless witnesses that Castellano did not use the authority of her office to lobby Authority Board members or Authority employees for the Executive Director position, discourage the Authority Board members from seeking other candidates, or take any action to negotiate her salary or benefits. Furthermore, it is readily apparent from listening to the testimony of the witnesses, including current Authority Board members and Authority employees, that they genuinely like and respect Castellano and believe that she has done an excellent job overseeing the Authority. The final allegation regarding a conflict of interest is that Castellano used the authority of her public position for the private pecuniary benefit of herself when she participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director. This allegation primarily concerns the March 25, 2021 Authority Board meeting in which the Authority Board heard the recommendations of Frese and then voted to offer an employment contract as Authority Executive Director to Castellano. It is undeniable that the minutes from the Authority Board's March 25, 2021 meeting do not contain any notation that Castellano did not participate in the discussions with Frese or that she abstained from voting on the motion to offer her a contract for the Executive Director position. As we heard from numerous witnesses during this proceeding, the purpose of meeting minutes is to memorialize in writing Authority Board actions, including votes and public discussions. In light of the March 25, 2021 meeting minutes, as well as the failure to correct these minutes at the next Castellano, 22-007 Page 44 Authority Board meeting, it was reasonable for the Investigative Division to believe and allege that Castellano participated in the March 25, 2021 meeting and voted to offer herself an employment contract. While this documentary evidence certainly provides a threshold basis for filing the Findings Report, the ultimate question to be answered following the hearing is whether there is clear and convincing evidence in the record that Castellano actually participated in the March 25, 2021 and April 21, 2021 votes. The evidentiaiy record does not contain such evidence. Indeed, the Board members in attendance at the meetings were all firm in their testimony that Castellano did not participate in the votes, as was Coccorese. While Coccorese may have a vested interest in providing such testimony since he is the Solicitor and responsible for ensuring that all votes are conducted in accordance with the law, the Board members have no reason to provide anything other than truthful testimony. Having observed all witness testimony, we conclude that the credible testimony of the Authority Board members outweighs the lack of abstention contained in the meeting minutes. As such, we conclude that there is insufficient evidence to prove that Castellano participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director. Based upon the above, we hold that Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegations that she used the authority of her public position for the private pecuniary benefit of herself when she (1) led the discussions to alter the managerial structure of the Authority and participated in the vote to approve the managerial restructure, (2) participated in the process which resulted in her being hired for the position of Authority Executive Director, and/or (3) participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director, based upon an insufficiency of evidence. The remaining two allegations are that Castellano violated Sections 1105(b)(8) and 1105(b)(9) of the Ethics Act when she failed to disclose on SFIs for calendar years 2017 through 2020 her employment with, and financial/business interest in, Figlia Consulting, LLC. The record includes Castellano's SFIs for calendar years 2017 through 2020, as well as uncontroverted testimony that Castellano is the owner of Figlia Consulting, LLC. It is undisputed that Castellano failed to include Figlia Consulting, LLC, in Block 13 (Office, Directorship, or Employment in any Business) for the 2017, 2018 and 2020 calendar years, and in Block 14 (Financial Interest in Any Legal Entity in Business for Profit) for calendar years 2017 through 2020. Castellano's argument that she was not required to report Figlia Consulting, LLC, in Block 13 or Block 14 because the business did not generate any income is without merit. The instructions for Block 13 clearly instruct a filer that this block focuses solely on their status as an officer, director or employee, regardless of income. Castellano is an officer, director or employee of Figlia Consulting, LLC; therefore, she was required to include this information in Block 13 irrespective of the amount of income produced. Similarly, Block 14 requires the filer to report the name and address of any business for profit in which they own more than 5% of the equity or more than 5% of the assets. Inasmuch as Castellano is the owner of this business for profit, she was required to report this information in Block 14 even if the business did not turn any demonstrable profit. Castellano, 22-007 Page 45 Castellano also argues that her SFI transgressions should be excused because she included Figlia Consulting, LLC, somewhere on the forms even if it was not in the correct location. Filers are required to properly complete all aspects of the SFI, which in this case mandated the inclusion of Figlia Consulting, LLC, in all of the correct positions, including Blocks 13 and 14. The responsibility lies with the filer, not the public, to identify and properly place the information on the SFI. Placing the burden on the public belies the very purpose of public officials completing SFIs, which is to strengthen the faith and confidence of the citizenry in its government and to easily ensure that the financial interests of its public officials do not conflict with the public trust. Castellano also places considerable weight on the fact that she contacted the Investigative Division after the commencement of the investigation and again after the filing of the Findings Report to inquire about the proper placement of Figlia Consulting on her SFIs but did not receive a response. This argument is misplaced. The time for conferring with the Ethics Commission about the information on an SFI is before the SFI is filed, not after an investigation into those SFIs and other conduct of the filer has been initiated. Accordingly, we hold that Castellano committed technical violations of Sections l 105(b)(8) and 1105(b)(9) of the Ethics Act by failing to disclose her office, directorship, or employment in Figlia Consulting, LLC, on SFIs for calendar years 2017, 2018 and 2020, and by failing to list her financial interest in this business on SFIs for calendar years 2017 through 2020. Pursuant to Section 1109(f) of the Ethics Act, 65 Pa.C.S. § 1109(f), we shall impose four reduced civil penalties against Castellano in the amount of $100.00 each, for a total amount of $400.00, for Castellano's deficient SFIs for calendar years 2017 tluough 2020. The Commission does not believe that there was any malintent on the part of Castellano when she omitted this information from certain areas of her SFIs; hence the reason we choose to impose a reduced civil penalty for these technical violations rather than the maximum amount allowed by statute. Castellano shall be ordered to make payment of the aforesaid civil penalties in the total amount of $400.00 by no later than the thirtieth (30t") day after the mailing date of this adjudication and Order, by forwarding to this Commission a certified check or money order in the amount of $400.00 made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. We further order that Castellano file complete and accurate SFIs for calendar years 2017 through 2020 with the Township Authority by no later than the thirtieth (30"') day after the mailing date of this adjudication and Order, with copies forwarded to the Commission for compliance verification purposes. Castellano is directed to not accept any reimbursement, compensation, or other payment from the Township representing a full or partial reimbursement of the aforesaid civil penalties. Non-compliance will result in the institution of an order enforcement action. Castellano, 22-007 Page 46 IV. CONCLUSIONS OF LAW: As a member of the Swatara Township Authority Board ("Authority Board"), Dauphin County, from January 2007 to the present, and as Vice Chairman of the Authority Board, Respondent Melissa Castellano ("Castellano") was a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq. 2. Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she led the discussions to alter the managerial structure of the Authority and participated in the vote to approve the managerial restructure, based upon an insufficiency of evidence. Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she participated in the process which resulted in her being hired for the position of Authority Executive Director, based upon an insufficiency of evidence. 4. Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director, based upon an insufficiency of evidence. Castellano committed technical violations of Sections 1105(b)(8) and 1105(b)(9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8) and 1105(b)(9), when she failed to disclose her employment with Figlia Consulting, LLC on Statements of Financial Interests ("SFIs") filed for calendar years 2017, 2018 and 2020 and when she failed to list her business interest in Figlia Consulting, LLC on SFIs filed for calendar years 2017 through 2020. 6. Notice of the deficiency of Castellano's Statements of Financial Interests for calendar years 2017 through 2020 was previously served upon her in accordance with Section 1107(5) of the Ethics Act, 65 Pa.C.S. § 1107(5). 7. Based upon the totality of the circumstances in this case, four reduced civil penalties in the total amount of $400.00 are warranted, $100.00 for each of the four years she filed a deficient Statement of Financial Interests. In Re: Melissa Castellano, File Docket: 22-007 Respondent Date Decided: 10/4/23 Date Mailed: 10/6/23 ORDER NO. 1825 1. Melissa Castellano ("Castellano'), as a member of the Swatara Township Authority Board ("Authority Board"), Dauphin County, from January 2007 to the present and as Vice Chairman of the Authority Board, did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § I I03(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she led the discussions to alter the managerial structure of the Swatara Township Authority ("Authority") and participated in the vote to approve the managerial restructure, based upon an insufficiency of evidence. 2. Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she led the discussions to alter the managerial structure of the Authority and participated in the vote to approve the managerial restructure, based upon an insufficiency of evidence. 3. Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. §' 1103(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she participated in the process which resulted in her being hired for the position of Authority Executive Director, based upon an insufficiency of evidence. 4. Castellano did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that she used the authority of her public position for the private pecuniary benefit of herself when she participated in actions of and voting by the Authority Board to obtain the position of Authority Executive Director, based upon an insufficiency of evidence. 5. Castellano committed technical violations of Sections 1105(b)(8) and 1105(b)(9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8) and 1105(b)(9), when she filed deficient Statements of Financial Interests ("SFIs") filed for calendar years 2017 through 2020 by failing to disclose her employment with Figlia Consulting, LLC on the SFIs filed for calendar years 2017, 2018 and 2020 and by failing to list her business interest in Figlia Consulting, LLC on SFIs filed for calendar years 2017 through 2020. 6. We hereby levy four reduced civil penalties against Castellano in the total amount of $400.00, $100.00 for each of the four years Castellano filed deficient Statements of Financial Interests for calendar years 2017 through 2020. Castellano, 22-007 Page 48 7. Castellano is ordered to make payment of the aforesaid civil penalties in the total amount of $400.00 by no later than the thirtieth (30th) day after the mailing date of this Order, by forwarding to this Commission a certified check or money order in the amount of $400.00 made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. Castellano is ordered to file complete and accurate SF1s for calendar years 2017 through 2020 with the Swatara Township Authority by no later than the thirtieth (301h) day after the mailing date of this adjudication and Order, with copies forwarded to the Commission for compliance verification purposes. 9. Castellano is directed to not accept any reimbursement, compensation, or other payment from the Township representing a full or partial reimbursement of the aforesaid civil penalties. 10. Non-compliance with Paragraph 6, 7, S, or 9 of this Order will result in the initiation of an appropriate enforcement action. BY THE COMMISSION, d Michael A. Schwartz, air