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HomeMy WebLinkAbout1839 ImesPHONE: 717-783-1610 TOLL. FREE: 1-800-932.0936 In Re: Helen Imes, Respondent STATE ETHICS COMMISSION FINANCE BULDING 613 NOR"TH STREET, ROOM 309 HARRISBURG, PA 17120-0400, File Docket: Order No. Date Decide& Date Mailed: 23-0049-C 1839 6/18/24 6/21/24 Before: Michael A. Schwartz, Chair Rhonda Hill Wilson, Vice Chair Paul E. Parsells David L. Reddecliff Robert P. Caruso Emilia McKee Vassallo Thomas E. Leipold This is a final adjudication of the State Ethics Commission, FACSIMILE: 717-787-0806 WE SITE: 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 �jM,, 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,"' A Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order, The Consent Agreement has been approved. 1. ALLEGATIONS: That Helen lines, a public official in her capacity as a Member of Council for Loganton Borough ("Borough"), Clinton County, Pennsylvania, violated Sections 1103(a), 1104(a), and I I 04(d) of the Ethics Act: (1) When she participated in discussions and actions of Borough Council leading to her husband's employment with the Borough, resulting in a private pecuniary benefit to her husband and/or herself, and (2,) When she failed to 'file Statements of Financial Interests for calendar year's 2021 and 2022. lines, 23-0049-C Page 2 II. FINDINGS: 1. From June 2021 until November 9, 2023, Helen Imes ("Imes") served as a Member of Council for Loganton Borough ("Borough") in Clinton County, Pennsylvania. a. The Borough Council ("Council") is comprised of seven Members. b. Imes was the Chairperson of the Sidewalk and Strectlight Committee and the Community Park Committee. C. Imes was a member of the Street and Road Committee and the Outdoor Display Committee. 2. Council holds regular business meetings on the first Thursday of the month. 3. Voting at the Borough's regular business meetings is not in a roll call fashion after the motion is made and properly seconded. a. All objections and/or abstentions should be specifically noted within the meeting minutes. b. Imes had no abstention memos filed with the Borough throughout her tenure as a Member of Council. 4. Minutes of the Borough's business meeting are prepared by the Borough Secretary/Treasurer. a. Council Members can review the meeting minutes for accuracy before the following meeting. b. Council votes to approve the accuracy of the meeting minutes at each subsequent meeting. c. Some Council meetings are recorded by The Clinton County Watchdog citizens group and posted on YouTube. S. Council votes to approve the Treasurer's report in its entirety at each monthly business meeting. a. Treasurer's reports include bills received and Borough employee payroll costs. 6. Beginning on November 10, 2022, and prior to any official action by Council, Kenneth Imes ("K. Imes") worked for the Borough approximately five days installing water meters. 7. On November 14, 2022, Imes emailed the Borough's Secretary/Treasurer, Samantha Tressler ("Tressler"), to request payroll paperwork for K. Imes. Imes, 23-0049-C Page 3 a. Figure I is a screenshot of Imes' email to Tressler: ori{1in.'+l massage frooll. Ifa on Naas-.jft"eltirnr�SC'trC.nrnr. luiat� To; Logontpll 00r000ll..f."W9 ra1&vOnlca °t3l0t> lt#. 11114Ptl 2 I 6 PIv4 Subject: Kenneth K. Imes Kon his Henri hol) hio Dnttnla and le'Roy put in wteO. 6eliovo he noods W (ill out J)Ap lworl tO gel OkL COLIld You rdal thool rowdy So 110 could fill mit Tlliusrlay evoning? I -le Is leaviiiil !at' Ilfw C.1111p at 12 nooll oil ra4ay and than ;f�ltiirtt tfeiriil dear se�Scin- HOW) stilt 1101kl "If,04. Windom Figure 1: Novent6er 14. 2022, email fom Imes io Tressler. b. Tressler forwarded Imes' email to Borough Mayor David Shreckengast ("Shreckengast"), Council President Myron Seyler ("Seyler"), and Council Vice President Robert Douty ("Douty"). C. In her email to Shreckengast, Seyler, and Douty, Tressler inquired how she should handle Imes' email since K. Imes was not a Council -approved Borough employee yet. d. Tressler made three attempts to try and get a response from the Council Members. 8. At the Borough's December 1, 2022, monthly meeting, Council unanimously voted to approve hiring K. Imes as a part-time laborer for the Borough. a. Imes was present for this meeting. b. A video recording of the December 1, 2022, Borough's monthly meeting shows Council President Seyler pointing at Imes and saying she should abstain from the vote to approve hiring K. Imes as a laborer prior to the vote. 1. Council Member Judy Karstetter made the motion and Council Member Chris Scuff seconded. 2. The motion passed unanimously. c. The meeting minutes indicated that Imes voted. Figure 2 is a screenshot taken directly from the Borough's December 1, 2022, meeting minutes: lrnes, 23-0049-C Page 4 - Payment of work perfonued by Kenneth Ines o Paperwork has been received to add Ketnieth Lies as a part time laborer. ■ Judy Karstetter makes a motion to acid Kenneth Imes to the part time labor poll for Loganton Borough. Chris Scaff seconds. Motion cairies. Kenneth Miles will be paid during Decembers pay period. Figure 2: Goganton Borough's December 1, 2022, Minutes 9, On February 6, 2023, two months after Council had already hired K. Imes, Borough Mayor Shreckengast emailed the Borough Solicitor, Larry Coploff ("Coploff') requesting advice concerning the employment of K. Imes. a. On February 16, 2023, Coploff responded that the hiring of the spouse of an elected official is not an Ethics Act violation and referenced an unnamed 1991 Pennsylvania Supreme Court case that noted that although the member voted, his vote was not needed for the motion to hire to pass, i . However, Coploff also explained that a Council Member should abstain from any vote involving a spouse's employment by the Borough. 10. On March 13, 2023, Coploff again emailed Shreckengast explaining how a Council Member should obtain an opinion from the State Ethics Commission and state the relationship before voting. a. Shrenkengast responded to Coploff inquiring whether Imes must obtain advice from the State Ethics Commission, b. Coploff explained that if Imes abstains and states the reason for doing so, she will not need an opinion. C. However, Coploff explained if Imes wants to vote she should obtain an opinion and abide by the terms of the opinion. 11. K. Imes was compensated $16/hour during the pay period of December 1, 2022, through December 31, 2022. a. K. Imes' pay rate increased to $17/hour after the January 5, 2023, Borough reorganization meeting. 12. K. Imes earned $1,836.00 between December 1, 2022, and June 23, 2023. a. K. Imes cashed each check received from the Borough at First National Bank. b. Charted in Figure 3 are the laborer check stubs from the Borough for K. Imes: Imes, 23-0049-C Page 5 Kenneth Imes' Check Stubs — December 2022 through June 2023 Pay Period Hours Rate Current YTD Amount Date Paid 12/01/2022 - 12/31/2022 25:30:00 $16.00 $408,00 $408.00 12/31/2022 12/31/2022 - 01/20/2023 49:45:00 $17.00 $845.75 $845,75 1/28/2023 02/01/2023 - 02/29/2023 2:00:00 $17.00 $34,00 $879.75 2/28/2023 03/01/2023 - 03/31/2023 5:30:00 $17.00 $93.50 $973.25 3/31/2023 04/01/2023 - 04/30/2023 2:00:00 $17.00 $34.00 $1,007.25 4/27/2023 04/22/2023 - 05/21/2023 18:15:00 $17.00 $310.25 $1,317.50 5/27/2023 05/24/2023 - 06/23/2023 6:30:00 $17.00 $110.50 $1,426.00 6/24/2023 $1,836.00 Figure 3: K. fines' Check Stubs 13. Between December 2022 and June 2023, Imes participated in Council actions to approve the Borough's Treasurer's reports which included the Borough employee payroll expenses. a. K. Imes' payroll expenses were included in these Treasurer's reports. b. The Council Members vote and approve the Treasurer's reports in their entirety. C. Charted in Figure 4 are K. Imes' payroll expenses and Imes' actions: Loganton Borough's Treasurer Reports and Imes' Council Actions Repo rfingTimefraine Date Check Number Name Type of Expense Amount Borough Meeting Date Imes's Actions Vote 12/21/2022 - 1/20%2023 12/31/2022 11672 Kenneth R Imes Payroll Expenses $410.45* 2/1/2023 Second/Vote 6-0 1/21/2023-2/20/2023 1/28/2023 11713 Kenneth R Imes Payroll Expenses $845.75 3/2/2023 Vote 6-0 2/21/2023 - 3/20/2023 2/28/2023 11734 Kenneth R Imes Payroll Expenses $34.00 4/6/2023 Vote 6-0 3/21/2023 - 4/20/2023 3/31/2023 11769 Kenneth R Imes Payroll Expenses $93.50 5/11/2023 Vote 6-0 4/21/2023 - 5/20/2023 4/27/2023 11795 Kenneth R Imes Payroll Expenses $34.00 6/1/2023 Vote 6-0 5/21/2023 - 6/20/2023 5/27/2023 11826 Kenneth R Imes Payroll Expenses $310.25 7/13/2023 Second/Vote 6-0 6/21/2023 — 7/20/2023 6/24/2023 11848 Kenneth R Imes Payroll Expenses $110.50 8/3/2023 Vote 6-0 * Loganton Barough General Funs! Transaction Detail shows an additional .h2.4.) payroll expense to Kenneth K. Imes that aoes not appear on a pay check stub in Figure 4 above. Figure 4: K. Imes' payroll expenses and Imes' actions 14. As part of a compliance review, the Investigative Division reviewed Imes' Statements of Financial Interests ("SFIs") for calendar years 2020 through 2022. a. Imes' SFI for calendar year 2020 had no deficiencies. b. The Investigative Division was unable to locate the 2021 SFI, although later investigation revealed that Imes had timely filed it, and there were no deficiencies. C. The 2022 SFI was deficient. Imes, 23-0049-C Page 6 15. On October 13, 2023, during the course of the investigation in this matter, Imes' attorney provided the Investigative Division with Imes' SFIs for calendar years 2020 through 2022. a. Imes' SFI for calendar year 2022 was deficient as follows. Imes failed to disclose her occupation/profession as a Council Member in Box #6. 2. Imes failed to check the box for "none" to disclose the address of any property involved in transactions with the Commonwealth or any governmental body within the Commonwealth in Box #8. 3. Imes failed to check the box for "none" to disclose the name and address of any creditor and the interest rate of any debt of $6,500 in Box 49. 4. Imes failed to check the box for "none" to disclose the source of any gifts valued at $250 or more in Box #11. Imes failed to check the box for "none" to disclose the name and address of each source and the amount of payment/reimbursement for transportation, lodging, or hospitality in Box #12. 6. Imes failed to check the box for "none" to disclose the name and address of the business entity for any office or directorship held and employment in any business in Box #13. 7. Imes failed to check the box for "none" to disclose the name and address and interest held in any business for profit in Box #14. 8. Imes failed to check the box for "none" to disclose the name and address of any business in which a financial interest was transferred to a member of her immediate family in Box #15. III. DISCUSSION: As a Member of Council for Loganton Borough ("Borough"), Clinton County, Pennsylvania, from June 2021 until November 9, 2023, Respondent Helen Imes ("Imes") was a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa. C.S. § 1101 et sec .. Act: The allegations are that Imes violated Sections 1103(a), 1104(a), and 1104(d) of the Ethics (1) When she participated in discussions and actions of Borough Council leading to her husband's employment with the Borough, resulting in a private pecuniary benefit to her husband and/or herself; and lines, 23-0049-C Page 7 (2) When she failed to file Statements of Financial Interests for calendar years 2021 and 2022. Per the Consent Agreement, the Investigative Division has exercised its prosecutorial discretion to nolle pros the allegation regarding Imes' Statements of Financial Interests. We therefore need not address that allegation. 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 following terms relevant to Section 1103(a) are 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 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. "Immediate family." A parent, spouse, child, brother or sister. 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 Imes, 23-0049-C Page 8 business with which he or a member of his immediate family is associated. A spouse is a member of "immediate family" as the Ethics Act defines that term. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Borough Council ("Council") is comprised of seven Members. From June 2021 until November 9, 2023, Imes served as a Member of Council. Kenneth Imes ("K. Imes") is Imes' spouse. Beginning on November 10, 2022, and prior to any official hiring action by Council, K. Imes worked approximately five days for the Borough, assisting with the installation of water meters. On November 14, 2022, Imes emailed the Borough Secretary/Treasurer, Samantha Tressler ("Tressler"), to request payroll paperwork for K. Imes. Since K. Imes was not yet a Council -approved Borough employee, Tressler forwarded Imes' email to Borough Mayor David Shreckengast ("Shreckengast"), Council President Myron Seyler, and Council Vice President Robert Douty and inquired how she should handle the matter. Tressler made three attempts to get a response. At Council's December 1, 2022, monthly meeting, Imes participated in a unanimous vote that approved hiring K. Imes as a part-time laborer for the Borough. Between December 1, 2022, and June 23, 2023, K. Imes received paychecks totaling $1,836.00 from the Borough for working various hours each pay period during that time frame. Imes participated in seven unanimous votes of Council that approved Treasurer's reports which included K. Imes' payroll expenses for the period of December 1, 2022, through June 23, 2023. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties` Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Imes participated in discussions and actions of Loganton Borough Council leading to her husband's employment with the Borough, resulting in a private pecuniary benefit to her husband and/or herself. b. The remaining count will be nolle prossed, as the investigation revealed that Imes fled Statements of Financial Interests for calendar years 2021 and 2022, Imes, 23-0049-C Page 9 although the 2022 Statement of Financial Interests had deficiencies. 4. Imes agrees to make payment in the amount of $91 &00 in settlement of this matter payable to Loganton Borough, and forwarded to the Pennsylvania State Ethics Commission, within thirty (30) days of the issuance of the final adjudication in this matter. 5. To the extent that Imes has not already done so, Imes agrees to file complete and accurate Statements of Financial Interests with Loganton Borough, through the Pennsylvania State Ethics Commission, for calendar years 2021 and 2022 within thirty (30) days of the issuance of the final adjudication in this matter. 6. Imes agrees to not accept any reimbursement, compensation or other payment from Loganton Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Imes' failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. a. Imes has been advised that as a matter of course, all orders from the Commission are provided to the Attorney General, albeit without any specific recommendations pursuant to paragraph 7 above. b. Imes has been advised that all orders become public records and may be acted upon by law enforcement as they deem appropriate. C. The non -referral language contained in this paragraph is considered an essential part of the negotiated Consent Agreement. Consent Agreement, at 1-2. We accept the recommendation of the parties for a finding of a violation of Section 1103(a) of the Ethics Act. The Consent Agreement reflects the parties' agreement that the elements of a use of the authority of office for a private pecuniary benefit have been established. It is clear that Imes used the authority of her public position as a Member of Council when she voted to approve hiring her spouse as a part-time laborer for the Borough and voted to approve Treasurer's reports Imes, 23-0049-C Page 10 that included her spouse's payroll expenses. Based upon the Consent Agreement, it appears that the parties are in agreement that both Imes and her spouse realized a private pecuniary benefit as a result of her use of the authority of her office in matters involving her spouse's employment with the Borough. Based upon the Stipulated Findings and Consent Agreement, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Imes participated in discussions and actions of Council leading to her husband's employment with the Borough, resulting in a private pecuniary benefit to her husband and/or herself. As part of the Consent Agreement, Imes has agreed to make payment in the amount of $918.00 payable to the Borough and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Imes has agreed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent she has not already done so, Imes has agreed to file complete and accurate Statements of Financial Interests for calendar years 2021 and 2022 with the Borough, through this Commission, within thirty (30) days of the issuance of the final adjudication in this matter. (It appears that the Consent Agreement's reference to Imes filing a complete and accurate Statement of Financial Interests for calendar year 2021 is a typographical error given that the Stipulation of Findings indicates that her Statement of Financial Interests for calendar year 2021 was timely filed with no deficiencies.) We agree that the aforesaid recommendations are appropriate, including the recommendation that Imes file a complete and accurate Statement of Financial Interests for calendar year 2022, notwithstanding the nolle pros as to the allegation regarding Imes' Statements of Financial Interests. Accordingly, per the Consent Agreement of the parties, Imes is directed to make payment in the amount of $918.00 payable to the Borough and forwarded to this Commission by no later than the thirtieth (301h) day after the mailing date of this adjudication and Order. Imes is directed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent she has not already done so, Imes is directed to file a complete and accurate Statement of Financial Interests for calendar year 2022 with the Borough, through this Commission, by no later than the thirtieth (30"') day after the mailing date of this adjudication and 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: As a Member of Council for Loganton Borough ("Borough"), Clinton County, Pennsylvania, from June 2021 until November 9, 2023, Helen Imes ("Imes") was a public Imes, 23-0049-C Page I I official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa. C.S. § 1101 et sec . 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa. C.S. § 1103(a), occurred when Imes participated in discussions and actions of Borough Council leading to her husband's employment with the Borough, resulting in a private pecuniary benefit to her husband and/or herself. In Re: Helen Imes, File Docket: 23-0049-C Respondent Date Decided: 6/18/24 Date Mailed: 6/21/24 ORDER NO. 1839 A violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Helen Imes ("Imes"), as a Member of Council for Loganton Borough ("Borough"), Clinton County, Pennsylvania, participated in discussions and actions of Borough Council leading to her husband's employment with the Borough, resulting in a private pecuniary benefit to her husband and/or herself. 2. Per the Consent Agreement of the parties, Imes is directed to make payment in the amount of $918.00 payable to Loganton Borough and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (301h) day after the mailing date of this Order. Imes is directed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. 4. To the extent she has not already done so, Imes is directed to file a complete and accurate Statement of Financial Interests for calendar year 2022 with the Borough, through the Pennsylvania State Ethics Commission, by no later than the thirtieth (30th) day after the mailing date of this Order. 5. Compliance with paragraphs 2, 3, and 4 of this Order will result in the closing of this case with no further action by this Commission. Non-compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Michael A. Schwartz, Chair