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HomeMy WebLinkAbout1294 ShapiroIn Re: Eric Shapiro File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Frank M. Brown Donald M. McCurdy Michael Healey Paul M. Henry 02- 097 -C2 Order No. 1294 9/15/03 9/29/03 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Act, Act 9 of 1989, P.L. 26, 65 P.S. §§ 401 et seq., as codified by Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of its investi9ation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investi9ation the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was not filed and a hearing was waived. A Consent Agreement and Stipulation of Findings were submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement was subsequently approved. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under Act 93 of 1998. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with Chapter 11 of Act 93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. POSITION TERM OF SERVICE Buyer! 10/15/74 to 10/25/76 Buyer!! 10/26/76 to 11/3/86 Administrative Analyst 11/4/86 to 1/18/88 Food Service and Support Service 1/198/88 to 11/14/90 Manager Provisional Food Service and Support Service 11/15/90 to 11/24/97 Manager Appointed Administrator Field Services, 11/25/97 to 6/27/99 Facilities Management and Services 6/28/99 to 1/1/01 Acting Executive Director /Facilities 1/2/01 to 10/20/02 Administrative Assistant to Chief Operating Officer 10/21/02 to termination Director, Office of School Development Shapiro 02- 097 -C2 Page 2 I. ALLEGATION: That Eric Shapiro, a public official in his capacity as Executive Director for Facilities Management and Services for the Philadelphia School District violated Section 1104(a) of the State Ethics Act (Act 93 of 1998) when he failed to file a Statement of Financial Interests for the 2001 calendar year by May 1, 2002. II. FINDINGS: 1. Eric Shapiro was employed by the School District of Philadelphia from October 15 1974, until May 29 2003. 2. Shapiro held numerous positions with the School District of Philadelphia following his appointment in 1974. 3. The following chart represents Shapiro's terms of service in relation to his job duties: 4. In 2001, Shapiro had held the positions of Acting Executive Director /Facilities as well as the Administrative Assistant to Chief Operating Officer. 5. As Acting Executive Director of Facilities, from June 28, 1999, to January 1, 2001, Shapiro's job functions included, but were not limited to the following duties: a. Plans, organizes and directs through subordinate administrators, a large staff comprised of operational, trades and professional employees engaged in a wide variety of activities such as engineering, cleaning, design and construction, training and developing and implementing management information systems. b. Through subordinate staff, directs the work of outside contractors and consultants engaged in construction, alterations and capital improvements; conveys criteria and functional requirements and indicates design deficiencies to be avoided and the necessary standards of construction. c. Develops and coordinates an operations and maintenance program encompassing all District facilities; establishes policy and program goals designed to ensure needed services; reviews and approves plans and programs for implementing policies; holds conferences with subordinate staff. Shapiro 02- 097 -C2 Page 3 d. Resolves the most complex operational and maintenance problems; conducts periodic inspections of buildings and grounds for conformance to established standards; indicates areas of improvement and suggests methods of approach for subordinate staff. e. Reviews requests for major repair services to assign priority and prompt scheduling; reviews records and reports pertaining to service and repairs performed; investigates the possibility for the redistribution of work to maximize the utilization of manpower. f. Consults on all aspects of programs and projects for asbestos related work typically including air and bulk sampling, rating, setting of priorities, cost estimating, specification writing and contractor selection. g. Ensures compliance with governmental regulations governing the operation of public school facilities. h. Prepares and manages the budget for the division. Keeps abreast of the latest developments in the operation and maintenance of multiple facilities and investigates changes in materials, equipment and work methods. 6. As Administrative Assistant, from January 2, 2001, to October 20, 2002, Chief Operating Officer Shapiro's job functions included, but were not limited to the following job duties: a. Meets with administrative superior as needed; receives assignments; discusses the status of previous assignments; apprises superior of significant problems incurred in daily operations of the various divisions. b. As requested, researches and follows up on major aspects of the division's operations, programs and policies; investigates administrative problems on such matters as organization, staffing and budget; consults with administrators and supervisory staff to obtain necessary information; prepares reports with recommendations to problem resolution for review by superior. c. Evaluates the operations of the divisions regularly to assess effectiveness and efficiency; periodically meets with staff members to assess the status of operations; insures that departmental goals and objectives are being met; makes recommendations to superior for program modifications as needed. d. Interprets and insures the proper implementation of department and District policies and procedures; insures that the staff is kept abreast of any modifications to policies and procedures. e. Addresses problems incurred in the daily operations of the division; makes decisions and provides ready solutions to problems in the absence of superior; represents superior at conferences and meetings; exercises granted authority in making decisions and commitments. f. Reviews and prepares responses to correspondence; forwards correspondence to other areas for handling when appropriate; answers phone inquiries regarding departmental policies and procedures. 7. On October 21 2002, Shapiro was named Director of School Development. Shapiro 02- 097 -C2 Page 4 8. Shapiro was required to file Statements of Financial Interests for the various positions held within the school district. a. Shapiro was annually provided blank Statements of Financial Interests forms by the Human Resource Office of the Philadelphia School District. 9. The Office of Classification and Compensation of the Human Resources Department via mail advises employees and officials of the Philadelphia School District of their need to file a Statement of Financial Interests for the previous calendar year. a. All required to file received the same letter. b. Enclosed with the letter are blank Statements of Financial Interests with instructions to return the completed form to the respective department in a self - addressed stamped envelope. 10. Each year that he was required to file Statements of Financial Interests, Shapiro has received notification of the filing requirement, as well as the blank forms. 11. Shapiro did not file a Statements of Financial Interests with the Philadelphia School District by May 1, 2000, for the 1999 calendar year and by May 1, 2001, for the 2000 calendar year. a. The Philadelphia School District notified the State Ethics Commission of Shapiro's failure to file a Statement of Financial Interests for both the 1999 and 2000 calendar years. 12. The Administrative Division of the State Ethics Commission sent a notice to Shapiro dated November 27, 2000, advising him of his failure to file a Statement of Financial Interests for the 1999 calendar year. a. The notice provided Shapiro with the opportunity to avoid civil penalties if the form was filed for the 1999 calendar year within thirty (30) days of the notice. b. Shapiro did not respond to the November 27, 2000, letter and did not file a Statement of Financial Interests within twenty (20) days. 13. A second notice letter dated April 25, 2001, was sent by certified mail to Shapiro directing him to file a Statement of Financial Interests for the 1999 calendar year within twenty (20) days of the date of the notice letter. a. Shapiro signed for the letter on May 5, 2001. b. Shapiro did not file a form within twenty (20) days of the date of the notice. 14. On August 2, 2001, the Investigative Division of the State Ethics Commission filed a Petition for Civil Penalties against Shapiro for his failure to file a Statement of Financial Interests for the 1999 calendar year. a. The Commission issued an Order to Show Cause to Shapiro on August 29, 2001, to No. 01- 015 -P. b. A second Order to Show Cause was issued to Shapiro on October 11, 2001. 1. An Answer was due by November 13, 2001. 2. Shapiro did not file an Answer or request a hearing. Shapiro 02- 097 -C2 Page 5 c. On February 4, 2002, the Commission issued Order no. 131 -S to Shapiro fining him $250.00, the maximum allowed by law for his failure to file a Statement of Financial Interests for the 1999 calendar year and directed him to file a Statement of Financial Interests within thirty (30) days of the Order. d. Shapiro did not pay the $250.00 fine or file the form as directed. e. A Petition for Civil Contempt was filed against Shapiro in Commonwealth Court by the Investigative Division on July 26, 2002. f. Shapiro paid fines and costs totaling $379.00 on November 22, 2002. 15. During the time period in 2001 when the Investigative Division was attempting to obtain compliance for the 1999 Statement of Financial Interests filing, Shapiro failed to file a Statement of Financial Interests with the Philadelphia School District by May 1, 2001, for the 2000 calendar year. a. The Philadelphia School District Office of Human Resources notified the State Ethics Commission of Shapiro's failure to file a Statement of Financial Interests for the 2000 calendar year sometime after May 1, 2001. 16. The Administrative Division of the State Ethics Commission by notice letter dated August 10, 2001, advised Shapiro that he had failed to file a Statement of Financial Interests by May 1, 2001, for the 2000 calendar year. a. The notice provided Shapiro with the opportunity to avoid civil penalties if the form was filed for the 2000 calendar year within twenty (20) days of the date of the notice. b. Shapiro did not respond to the August 10, 2001, notice letter nor did he file a Statement of Financial Interests within twenty (20) days of the date of the letter. 17. A second notice letter dated September 5, 2001, was sent by certified mail to Shapiro directing him to file a Statement of Financial Interests for the 2000 calendar year within twenty (20) days of the date of the notice letter. a. Shapiro did not claim the certified letter which was eventually returned as unclaimed to the Administrative Division of the State Ethics Commission. b. Shapiro did not file a Statement of Financial Interests within twenty (20) day of the date of the September 5 notice letter. c. On October 3, 2001, personal service was made of the final notice letter dated September 5, 2001, on Shapiro by an investigator for the State Ethics Commission. d. Shapiro did not file a Statement of Financial Interests within twenty (20) days of the date of the service by the investigator for the State Ethics Commission. 18. On or about March 5, 2002, the Investigative Division of the State Ethics Commission filed a Petition for Civil Penalties against Shapiro for his failure to file a Statement of Financial Interests for the 2000 calendar year. a. The Commission issued an Order to Show Cause to No. 02 -016 -P on June 27, 2002. b. On September 4, 2002, the Commission issued Order No. 152 -S fining Shapiro $250.00 for his failure to file a Statement of Financial Interests for the 2000 Shapiro 02- 097 -C2 Page 6 calendar year. The Order further directed that Shapiro file a Statement of Financial Interests with the school district within thirty (30) days of the issuance of the Order. c. Shapiro did not pay the $250 fine or file the form as directed by the Order. 19. Shapiro paid fines and administrative costs totaling $384 as directed by Order No. 152- S to the State Ethics Commission on or about November 22, 2002. a. Shapiro submitted a Statement of Financial Interests for the 2000 calendar year which was received by the Administrative Division of the Ethics Commission on or about November 22, 2002. b. Shapiro paid the fine and filed the form following the filing of Civil Contempt Petition before the Commonwealth Court of Pennsylvania. c. Shapiro also paid fines and costs to Order No. 131 -S on that date. 20. Eric Shapiro did not file a Statement of Financial Interests for the 2001 calendar year by May 1 , 2002. 21. School District records reflect that Shapiro was sent a Statement of Financial Interests at his residence. a. Eric Shapiro was included on the list of non - filers for calendar year 2001 which was sent to the State Ethics Commission. 22. A notice letter dated July 9 2002 was sent by the Administrative Division to Shapiro directing him to file an SFI for the 2001 Calendar Year. a. The notice letter provided that civil proceedings would be initiated against Shapiro if he did not file the requested SFI within twenty (20) days after receiving the notice letter. 23. Shapiro did not comply with the July 9 2002 letter and failed to file an SFI for calendar year 2001 within the specified twenty (20) days. 24. By letter dated September 4 2002, the State Ethics Commission sent by certified mail a final notice to Shapiro of is intent to commence civil penalty proceedings for his failing to file an SFI for calendar year 2001. a. The notice letter provided that civil proceedings would be initiated against Shapiro if he did not file the required SFI within twenty (20) days after receiving the notice letter. b. The notice letter was sent by certified mail no. 7001 1940 0001 2179 5827 c. The letter was unclaimed and returned to the Administrative Division of the State Ethics Commission by the US Postal Service on September 26 2002. d. Returned notice letter was forwarded to Paul C. Quinn, Esq., counsel for Shapiro on November 21 2002 with an attached letter from Ethics Commission Assistant Counsel John Shugars, explaining the Ethics Commission's intent to commence civil penalty proceedings against his client, Eric Shapiro. 1. The letter was received by Attorney Quinn on 11/26/02. Shapiro 02- 097 -C2 Page 7 2. The notice letter required the filing of a Statement of Financial Interests by Shapiro within twenty (20) days. e. An affidavit of service pursuant to RCP 402 (b) was returned to the State Ethics Commission by Attorney Quinn. 25. Shapiro did not file a Statement of Financial Interest within twenty (20) days of the November 21, 2002, notice letter. 26. An Order to Show Cause, No. 02- 034 -P, was forwarded to Shapiro through his counsel, Paul Quinn on December 19"', 2002 by certifieq, mail no. 7000 1670 0005 2766 5149, and was received by Quinn on December 24 , 2002. a. The Order was filed with the Commission seeking civil penalties against Shapiro for failing to file a Statement of Financial Interests for the 2001 calendar year. 27. Shapiro's 2001 Statement of Financial Interest was received at the offices of the State Ethics Commission on December 23 2002. a. This document arrived seven (7) days after the twenty (2Q day deadline set in the final notice accepted by his counsel on November 26", 28. A consent agreement was entered into I?etween Shapiro through his counsel and the State Ethics Commission on February 7 h , 2003, requiring that Shapiro pay a penalty of $175.00 and file a Statement of Financial Interests with the Philadelphia School District. a. An Order No. 162 -S was issued by the Commission on April 4, 2003, directing the penalty and filing. 29. Shapiro also filed a 2001 Calendar Year Statement of Financial Interests with the School District of Philadelphia on February 20 h , 2003. 30. Shapiro paisi a fine of $175.00, payable to the Commonwealth of Pennsylvania on February 3' , 2003, with check number 4785, drawn on CoreStates Bank. III. DISCUSSION: At all times relevant to this matter, the Respondent, Eric Shapiro, hereinafter Shapiro, has been a public employee subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et se ., as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65Pa.C.S. § 1101 et seq., which Acts are referred to herein as the "Ethics Act." The allegation is that Eric Shapiro, as Executive Director for Facilities Management and Services for the Philadelphia School District (District), violated Section 1104(a) of the Ethics Act when he failed to file a Statement of Financial Interests (SFI) for the 2001 calendar year by May 1, 2002. Section 1104. Statement of financial interests required to be filed. (a) Public official or public employee. - -Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public Shapiro 02- 097 -C2 Page 8 official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa.C.S. §1104(a). Section 1104(a) of the Ethics Act requires that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Shapiro was employed by the District from October of 1974 until of May of 2003. A review of Shapiro's job duties and responsibilities -when he served as Acting Executive Director of Facilities and Administrative Assistant to the Chief Operating Officer from June of 1999 to January of 2001, as Administrative Assistant from January 2001 to October 2002 and as Director of School Development from October 21, 2002 - reflects that Shapiro in each of those positions met the statutory and regulatory criteria so as to be a "public employee" under the Ethics Act. For each year that he was required to file SFI's, Shapiro received notice from the District's Human Resources Department as to the filing requirement as well as a blank SFI form. In the relevant time period of this case, Shapiro did not file SFI's with the District for the 1999 and 2000 calendar years. After the District notified this Commission of Shapiro's failure to file for calendar year 1999, the Administrative Division of this Commission sent the requisite notice to Shapiro advising him of his non -filer status. Although the notice provided Shapiro an opportunity to avoid civil penalties if Shapiro filed within the 20 day period, he did not respond and did not file the SFI. The Administrative Division sent a second notice to Shapiro who still failed to comply. The Investigative Division of this Commission then instituted civil penalty proceedings against Shapiro which resulted in the issuance of Civil Penalty Order No. 131 -S directing Shapiro to file and pay a penalty of $250.00. As a result of continued non- compliance, a Petition for Civil Contempt was filed against Shapiro in Commonwealth Court which resulted in Shapiro paying fines and costs totaling $379.00. In this timeframe, Shapiro also failed to file his SFI with the District for the 2000 calendar year. Once again, the Administrative Division of the Commission gave two notices to Shapiro as to his non - filing. Shapiro failed to comply. The Investigative Division instituted civil penalty proceedings which culminated in the issuance of Civil Penalty Order No. 152 -S wherein this Commission imposed a $250.00 fine on Shapiro with a directive for him to file his SFI. Following the institution of Petition for Civil Contempt in Commonwealth Court, Shapiro paid the costs and fines totaling $384.00 as to Order No. 152 -S. Similarly, for calendar year 2001, Shapiro did not file his SFI. The District records indicate that it sent the SFI form to Shapiro's residence. When Shapiro did not file the form, the District included him on its list of non - filers. The Administrative 1Division sent a notice to Shapiro as to his failure to file for calendar year 2001. Shapiro failed to comply. Thereafter, Shapiro 02- 097 -C2 Page 9 the Investigative Division gave notice to Shapiro by certified mail which was returned as unclaimed. The returned notice was then forwarded to Shapiro's counsel. Since Shapiro still did not file his SFI for the calendar year 2001, an Order to Show Cause was issued and sent to the care of his counsel. Shapiro's 2001 calendar year SFI was received at this Commission on December 23, 2002, which was seven days after the 20 day deadline set in the final notice sent to Shapiro's counsel on November 26, 2002. Thereafter, a Consent Agreement was entered between his counsel and the Investigative Division of the Commission requiring Shapiro to pay a penalty of $175.00 and file his SFI. This Commission accepted the Consent Agreement and issued Civil Penalty Order No. 162 -S directing the penalty and filing. Shapiro filed his 2001 calendar year SFI and paid the penalty of $175.00 on February 3, 2003. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegation. The Consent Agreement proposes that this Commission find that Shapiro violated Section 1104(a) of the Ethics Act when he failed to file his SFI for the 2001 calendar year by May 1, 2002, with the District. Shapiro agrees to make payment in the amount of $250.00 to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. For the 2001 calendar year, the record establishes that Shapiro was required but failed to file his SFI. Accordingly, Shapiro violated Section 1104(a) of the Ethics Act when he failed to file his SFI for the 2001 calendar year by May 1, 2002, in his position as Executive Director for Facilities Management and Services for the Philadelphia School District. Shapiro has a history of delinquency in failing to file his SFI's: for calendar 1990 Order No. 017 -S directed compliance and a payment of $250.00; for calendar year 1999 Order No. 131 -S directed compliance and a payment of $250.00; for calendar year 2000 Order No. 152- S directed compliance and a payment of $250.00; and for calendar year 2001 Order No. 162- S directed compliance and a payment of $175.00. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, Shapiro is directed to make payment of $250.00 payable to the Commonwealth of Pennsylvania through this Commission within 30 days of the mailing of this Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Eric Shapiro, as Executive Director for Facilities Management and Services for the Philadelphia School District, was a public employee subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Shapiro violated Section 1104(a) of the Ethics Act when he failed to file a Statement of Financial Interests for the 2001 calendar year by May 1, 2002, in his position as Executive Director for Facilities Management and Services for the Philadelphia School District. In Re: Eric Shapiro ORDER NO. 1294 File Docket: 02- 097 -C2 Date Decided: 9/15/03 Date Mailed: 9/29/03 1. Eric Shapiro, as Executive Director for Facilities Management and Services for the Philadelphia School District, violated Section 1104(a) of the Ethics Act when he failed to file a Statement of Financial Interests for the 2001 calendar year by May 1, 2002. 2. Per the Consent Agreement of the parties, Shapiro is directed to make payment of $250.00 payable to the Commonwealth of Pennsylvania through this Commission within 30 days of the mailing of this Order. a. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. b. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair