HomeMy WebLinkAbout1334 LynchIn Re: James Lynch
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Daneen E. Reese
Donald M. McCurdy
Michael Healey
Paul M. Henry
Raquel K. Bergen
02- 018 -C2
Order No. 1334
6/8/04
6/22/04
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 investigation, the Investigative Division served upon Respondent written notice of the
specific allegation(s). 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. The record is complete.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter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.
Lynch, 02- 018 -C2
Page 2
I. ALLEGATION:
That James Lynch, a (public official /public employee) in his capacity as a member of
the Pennsylvania House of Representatives for the 65 District violated the following
provisions of the State Ethics Act (Act 93 of 1998) when he used the authority of his
position by, including but not limited to, submitting and receiving excess reimbursements
from his legislative account for expenses not incurred; and when he used employees of his
district and state offices and equipment and materials to conduct campaign related work.
Section 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).
Section 2. 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. "Conflict" or "conflict of interest" 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.
65 P.S. §1102.
II. FINDINGS:
A. Pleadings
1 The Investigative Division of the State Ethics Commission received information
alleging that James Lynch violated provisions of the State Ethics Act (Act 93 of
1998).
2. Upon review of the complaint the Investigative Division initiated a preliminary
inquiry on February 1, 2002.
3. The preliminary inquiry was completed within sixty days.
4. On April 2, 2002, a letter was forwarded to James Lynch, by the Investigative
Division of the State Ethics Commission informing him that a complaint against him
was received by the Investigative Division and that a full investigation was being
commenced.
a. Said letter was forwarded by certified mail, no. 7001 0360 0001 4061 4878.
b. The domestic return receipt bore the signature of Nadine Jule, with a
Lynch, 02- 018 -C2
Page 3
delivery date of April 6, 2002.
5. On August 13, 2002, the Investigative Division of the State Ethics Commission filed
an application for a ninety day extension of time to complete the Investigation.
6. The Commission issued an order on September 4, 2002, granting the ninety day
extension.
7. On November 18, 2002, the Investigative Division of the State Ethics Commission
requested a ninety -day extension of time to complete the investigation.
8. The Commission issued an order on December 4, 2002, granting the ninety day
extension of time.
9. Periodic notice letters were forwarded to James Lynch in accordance with the
provisions of the Ethics Law advising him of the general status of the investigation.
10. The Investigative Complaint was mailed to the Respondent on March 27, 2003.
11. James Lynch has served as a State Representative for the 65 District from
January 1993 through the present.
a. The 65 District is comprised of Warren, McKean, and Forest counties.
12. Members of the Pennsylvania General Assembly are permitted to maintain district
offices, in addition to offices at the Main Capital.
13. Lynch maintains legislative offices in his district and in Harrisburg.
a. Lynch's district offices are located in Warren, Kane, and Tionesta.
1. Lynch's main district office is located at 231 Pennsylvania Avenue
West, Warren, Pa.
14. House members are eligible to submit and receive reimbursement of expenses
incurred for legislative business, including expenses for district offices and staff.
a. House Rule 14, Section 3 of the Rules of the House of Representatives
provides that allowable expenses include rent for legislative office, space,
and equipment, including telephones and other office equipment.
1 Members are responsible for the initial start -up expenses but can
submit for reimbursement after the expenses have been incurred.
b. House Rule 14, Section 2, permits expenses for the hiring of an administrative,
clerical and professional personnel, except for employment of spouses or
any relatives by blood or marriage.
15. House members are authorized to receive up to $24,000.00 per year from his /her
respective caucus and up to $2,300.00 per month from the House of
Representatives chief clerk for various operating expenses.
a. The $24,000.00 from the caucus is allocated as follows:
1. Up to $10,000.00 per year for various expenses including office
supplies and furniture;
Lynch, 02- 018 -C2
Page 4
2. Up to $10,000.00 per year for other accountable expenses;
3. Up to $4,000.00 per year for postage expenses.
b. The $2,300.00 per month from the chief clerk is allocated as follows:
1. Up to $1,450.00 per month for rent;
2. Up to $650.00 per month for a vehicle allowance;
3. Up to $200.00 per month for telecommunications.
c. Reimbursement requests for general expenses are made on an as needed
basis on form HRC -C2, Legislative Expense Voucher.
16. House members are eligible to receive per diem when on overnight travel for
legislative business, including session days and committee meetings.
17. There are two different plans for the payment of per diem: GSA and High /Low
Substantiation.
a. The GSA plan establishes that a member can receive reimbursement for
actual expenses incurred up to daily maximums set for each locality.
b. The High /Low Substantiation plan establishes a high and low rate of per
diem and assesses either one of those values to each locality that a member
can receive.
c. Reimbursement requests for per diem are made on an as needed basis on
form HRC -C20, Per Diem Voucher.
18. House members can elect to have a state - leased vehicle or to submit and receive
mileage reimbursement for using their personal vehicles for legislative business.
a. Mileage reimbursement up to $650.00 per month is made from the chief clerk
allocation.
b. If a mileage reimbursement is greater than $650.00 per month, then the
reimbursement amount over $650.00 is made from the caucus accountable
expense allocation.
c. Reimbursement requests for vehicle expenses are made monthly on form
HRC-C21a, Vehicle Expense Withholding Plan.
19. The House requires that individuals who submit for mileage reimbursement
maintain a mileage log detailing the date, destinations /locations, and number of
miles traveled related to legislative business.
a. This log is required to be submitted with the reimbursement request to
substantiate the request.
20. The House reimburses for personal mileage at the IRS approved rate that was
established as follows:
a. 1999: $0.31 per mile
b. 2000: $0.325 per mile
Lynch, 02- 018 -C2
Page 5
c. 2001: $0.345 per mile
d. 2002: $0.345 per mile
21. Representative Lynch has opted to use a personal vehicle for legislative business
and receives mileage reimbursement.
22. Representative Lynch maintains a "legislative" checking account at Northwest
Savings Bank (Acct. No. 024033128) for the purposes of operating his district
offices.
a. The account is used to pay for expenses such as utility bills, cell phone bills,
and general office supplies and purchases.
b. Representative Lynch was responsible for the initial deposit to this account.
c. This account was used for both legislative expenses and some personal
expenses.
1. Personal expenses include credit card bills, vehicle payments, and
loans to Lynch and legislative aides.
d. Following the initial deposit made by Representative Lynch, the bulk of the
deposits to this account have been reimbursement checks received from the
Office of Chief Clerk.
23. Representative Lynch delegates the accounting of the legislative account, including
writing checks and balancing, to a legislative aide in the Warren office.
a. Representative Lynch and one or two legislative aides maintain signature
authority for the account.
24. Legislative aides in Representative Lynch's offices are responsible for completing
and submitting the various reimbursements requests of Representative Lynch.
a. Typically, Lynch's legislative aide in his Harrisburg office completes and
submits per diem request vouchers.
b. A legislative aide in Lynch's Warren office completes and submits the
legislative expense vouchers and mileage reimbursement requests.
25. The legislative aides complete and submit the reimbursement requests at Lynch's
direction and with his authorization.
a. Information used in completing the reimbursement request is provided by
Lynch.
b. Lynch's signature is required on all of the reimbursement requests.
26. Representative Lynch hosts legislative events known as a Senior Citizen Expos
(Senior Expos) in his district.
a. The purpose of the senior expos is to make seniors aware of different
programs available to them, as well as to provide them with answers to
questions, concerns, or problems they may have.
Date
Check No.
Amount
Payee
10 -22 -01
250
$ 56.43
Sam's Club /D &K
10 -25 -01
251
330.72
Just Ask Rental
10 -26 -01
252
65.88
Quality Markets
10 -26 -01
25.94
Quality Markets
10 -26 -01
23.40
Quality Markets
10 -30 -01
253
37.52
D &K
11 -01 -01
254
430.93
Sam's Club
11 -02 -01
554.36
BiLo
11 -02 -01
18.89
BiLo
11 -02 -01
15.90
Dollar Store
11 -02 -01
255
30.00
ShurFine
11 -02 -01
256
60.00
Amy Blauser
11 -02 -01
257
500.00
Tom Brinkely
11 -02 -01
266.00
Holy Redeemer Church
11 -07 -01
264
75.00
Jerry Wadsworth
11 -07 -01
265
50.00
Drew Neal
11 -09 -01
267
27.99
Quality Markets
11 -12 -01
328
55.00
Bartsch Carpet
11 -15 -01
270
475.00
Amy Blauser
Total:
$3,098.96
Lynch, 02- 018 -C2
Page 6
b. Lynch has held senior expos for approximately ten (10) years.
27. Lynch is entitled to submit and receive reimbursement from the House for out -of-
pocket expenses, not covered by donations, incurred in relation to the senior expos.
28. In 2001, Lynch held two (2) senior expos in his district.
a. A senior expo was held in Kane, PA on October 26, 2001.
b. A senior expo was held in Warren, PA on November 2, 2001.
29. Lynch's office incurred costs totaling $3,098.96 in relation to the two 2001 senior
expos as follows:
30. The majority of expenditures from the legislative account after the donation deposit
on October 23, 2001 and before the donation deposit on November 5, 2001 were
senior expo related.
a. Non -Expo related expenditures and deposits during this period were $755.73
and $750.00 respectively.
b. The legislative account balance was $442.77 on October 22, 2001 prior to
making the donation deposit of $1,100.00 on the following day.
c. Senior expo expenditures from October 22, 2001 through November 4, 2001
were in excess of the balance in the account prior to the donation deposit.
d. The donation deposit on November 5, 2001 covered senior expo expenses
already incurred by Lynch.
1. The legislative account began November 5, 2001, with a balance of
$26.22.
2. The account reflected a negative balance in excess of $200.00 prior
to the deposit of $1,150.00 being made.
Lynch, 02- 018 -C2
Page 7
31. Account No. 024033128 used by Representative Lynch for legislative purposes also
was used extensively in 2000 and 2001 for personal expenses.
a. These personal expenses included Visa payments, vehicle payments and
payments to Representative Lynch.
b. Representative Lynch also made deposits of personal funds to this account
in 2000 and 2001.
32. Between November 2001 and February 2002, Lynch submitted three legislative
expense vouchers requesting reimbursement of expenses, including those related
to the senior expos totaling $3,067.28.
a. Lynch submitted these vouchers on November 15, 2001, December 28,
2001, and February 1, 2002.
b. Expenses unrelated to the senior expos were also included on each of the
three vouchers.
33. Lynch received three reimbursements that included senior expo expenses totaling
$3,039.51 as follows:
a. Date Amount
11 -20 -01 $ 963.88
12 -28 -01 2,020.63
02 -11 -02 55.00
Total: $3,039.51
expenses.
b. The actual amounts of each of the
reimbursements were higher as they also
included reimbursement of unrelated
34. In or about November 2001, questions were raised regarding the expenditures for
the senior expos.
a. It was learned during this time that all expenditures for the expos were
eligible for reimbursement.
b. Questions raised included Representative Lynch's receipt of donations and
reimbursement for all expo expenses.
35. Representative Lynch received a Notice of Investigation from the State Ethics
Commission on April 6, 2002, which contained allegations relating to the receipt of
excess expense reimbursement.
36. In or about April 2002, Representative Lynch made a second contact with each of
the companies making a donation for the 2001 senior expos.
a. The purpose of the second contact by Representative Lynch was to request
each individual company previously contacted sign an affidavit confirming
Lynch's contact in November /December 2001.
37. Lynch initiated the action of the affidavit after discussing the matter with the Chief of
Staff for the house majority leader who suggested obtaining the affidavits.
38. Lynch had an affidavit prepared which stated the following:
Name
Company
Date Signed
Bill LeMeur
Superior Tire & Rubber Corp.
04
-02
-02
Bill Holder
Crossett, Inc.
04
-02
-02
Denny Hedgers
Betts Industries, Inc.
04
-02
-02
Michael Giambrone
Northwest Savings Bank
04
-09
-02
Jo Mullendore
Allegheny Energy
04
-09
-02
Jennifer Macey
Kane Hardwoods
04
-24
-02
Lynch, 02- 018 -C2
Page 8
it.
a. "To whom it may concern: I, the undersigned, being a duly authorized
representative of (business name), hereby swear and confirm that following
solicitation by the office of Representative Jim Lynch, a contribution was
made for sponsorship of the Warren and /or Kane Senior Expos to be held in
October 2001; and thereafter having been advised by Representative Jim
Lynch in November 2001, that reimbursement funds were available from the
Commonwealth of Pennsylvania to cover a portion of the expenses of the
said events and offered return of the unspent portion of the contribution
made (estimated to be approximately 90% of the initial contribution) did
authorize use of said funds for use and /or in connection with and in order for
(business name) to also be recognized without further contribution as a
sponsor of the next un- reimbursed legislatively sponsored event and /or to be
held by the office of Representative Jim Lynch or Representative Jim Lynch."
b. All of the affidavits were the same except for the business name.
c. Lynch personally delivered an affidavit to the individuals that agreed to sign
39. Lynch provided a total of six signed affidavits to the State Ethics Commission on
April 15, 2002 and April 29, 2002, as follows:
a. Lynch did not obtain affidavits from all of the individuals that provided
donations.
40. In a sworn statement provided to the Investigative Division of the State Ethics
Commission on February 25, 2003, Lynch provided the following:
a. He did not utilize the donated money for any expenses associated with the
senior expos.
b. He made the decision, prior to the senior expos and without consulting those
who donated, to keep the donated money and utilize it for the next un-
reimbursed legislative event.
41. The donations were deposited to an account which Representative Lynch was also
using to pay for personal expenses unrelated to legislative business.
42. Since taking office in 1993, Representative Lynch has hired individuals for employment
as legislative aides in his district offices.
a. These hirings are authorized by House Rule 14, Section 2.
43. Lynch maintains a staff of several legislative aides in his Warren district office and
one in each of his other offices.
a. Typically, Lynch appoints one legislative aide in his Warren district office to
serve as office manager.
Lynch, 02- 018 -C2
Page 9
b. The office manager is responsible for the office finances and general
supervision of the other employees.
44. House members are not permitted to use legislative employees to perform
campaign or re- election duties on state time using state facilities, equipment, or
supplies.
a. Members are informed of this during new member orientation held after first
being elected and is documented in the member handbook.
Legislative aides are also informed of this during employee orientation.
b.
45. On March 25, 2002, the House of Representatives Parliamentarian Clancy Myer
issued a memo to House members reaffirming House policy regarding the use of
facilities and /or employees that stated, in part:
"Members are advised that no legislative facilities or supplies are to be utilized for
re- elections purposes. Also, if any legislative staff assists with campaign functions,
they cannot do so during normal work hours, unless leave is taken. The assistance
cannot take place in Harrisburg or district offices."
46. Since 1995 Representative Lynch has employed the following individuals in his
district office:
Chris Cheronis
Christine Cummings
Jill Lasecki
Heather Walters
Nadine Jewell
Jerry Michaels
47. Christine Cummings (formerly Huber) was employed in Representative Lynch's
Warren district office from approximately September 1997 through October 2000.
a. Cummings served as a legislative aide for approximately two years and as
the office manager for approximately one year.
48. As office manager, Cummings was responsible for the following duties:
a. Maintaining Lynch's legislative account and reimbursements;
b. Preparing and submitting reimbursements;
c. Supervising other legislative aides;
d. Constituent services; and
e. Press releases.
49. Cummings' net rate of pay during her employment was as follows:
a. September 1997- June 1999: $9.11/Hr.
b. July 1999- June 2000: $9.80 /Hr.
50. Heather Walters was employed in Representative Lynch's Warren district office
from approximately September 1997 through December 2001.
a. Walters served as a legislative aide for approximately two and a half years
and as the office manager for approximately one and a half years.
Lynch, 02- 018 -C2
Page 10
51. As office manager, Walters was responsible for the following duties:
a. Maintaining Lynch's legislative account and reimbursements;
b. Preparing and submitting reimbursements;
c. Supervising other legislative aides;
d. Constituent services; and
e. Correspondence.
52. Walters' net rate of pay during this period in 2001 was $10.93 per hour.
53. Campaign Finance reports for Jim Lynch confirm payments made to Heather
Walters for campaign work:
02/24/00: $ 75.00
04/09/01: $ 25.00
10/30/01: $ 50.00 (voided)
54. The $50.00 payment issued to Walters on 10/30/01 was reported as "voided" on a
campaign finance report filed by the Committee People for Jim Lynch dated
February 3, 2003.
B. Testimon
55. Christine E. Cummings is a quality engineer with the Ellwood Group and was
previously employed by Lynch shortly after she graduated from college in 1997.
a. Cummings worked as a legislative aide for Lynch until May of 2000 when
she went on maternity leave until October of 2000 and then terminated her
employment.
b. Other employees in Lynch's district office were Jill Lasecki, Heather Walters,
Jerry Michaels, and Tina Skinner.
c. Cummings did schedules, press releases, and finances for Lynch such as
his account and reimbursements and constituent assistance as in getting
PennDOT licenses.
d. Lynch used the legislative district account for personal purposes.
(1) Lynch frequently borrowed money from the legislative account.
e. ID6 is a photocopy of the register for the account.
(1) If Cummings was unavailable, Heather Walters could write checks
from the account.
f. Payments were made from the legislative account to make payments on
Lynch's personal credit card, Cabela Visa.
g.
Cummings had signature authority and wrote out checks from Lynch's
legislative account.
Lynch, 02- 018 -C2
Page 11
h. Cummings could use a Lynch signature stamp but Lynch had to first see the
letter or document.
J.
Before reimbursements were submitted to Harrisburg, Lynch reviewed them
for accuracy.
Senior expos involved getting a group of organizations together relating to
senior citizen benefits or programs.
(1) Cummings and Heather Walters worked at organizing the expos.
k. Lynch asked Cummings to participate in political /campaign related activities.
(1) Cummings did the non - legislative activity on state time without taking
leave.
(2) Such activities included taking donations to Lynch's campaign
treasurer, and writing thank you notes on campaign letterhead.
(3) Cummings spent two hours per week on non - legislative activity from
August 1997 to May 2000.
(4) Cummings, in addition, performed personal functions for Lynch at his
request.
(5) Lynch directed Cummings not to tell that she was doing non -
legislative work on state time:
"Q. Were you ever cautioned about saying anything as to doing
this kind of activity during State time?
A. Yeah, I was told that if anybody asked that we do it when we're
on our lunch break or we do it on - - - we're just taking time off or
using it for our lunches basically. We were told not to tell anybody
that it was done on office time.
Q. Who gave you that instruction?
A. Representative Lynch." (NT, 51)
(a) Lynch, on cross - examination, questioned Cummings as to
what he told her about campaign activity vis -a -vis state time.
"Q. Hi Chris. When you were hired by me, do you
remember me telling you any campaign activity should be
done at lunches, breaks or after work?
A. No, you told me not to tell anybody." (NT, 53)
Cummings was not employed in Lynch's district office when the expos were
held in the fall of 2001.
56. Heather Walters is a current employee of Power Net Global Communications and is
a former employee of Lynch from September 1997 to December 2001.
Lynch, 02- 018 -C2
Page 12
a. Walters' duties for Lynch involved schedules, financial duties of writing
checks and submitting reimbursements, constituent work and PennDOT
services.
b. As to the legislative checking account, Walters kept the records for the
account, issued checks in payment and submitted receipts for
reimbursement.
(1) Before reimbursement requests were submitted to Harrisburg, Lynch
would review and sign the top sheet.
c. Walters did the work for senior expos which were held once a year in both
the Warren and Kane district offices.
(1) Walters sent out letters to the participating organizations, obtained
room and table rentals and arranged for food.
(a) Walters did the work at Lynch's direction for the 2000 and
2001 expos.
(2) Walters started work on an expo six months before the event.
(3) Because the expos were getting larger, Walters contacted more
companies for donations.
(a) Lynch instructed Walters to solicit the donations.
(b) The donations were to be spent on the expos.
(4) Walters composed a form letter for company solicitations to obtain
donations for the expos.
(a) Lynch directed Walters to draft the letter.
(b) Lynch approved the letters before they were issued.
Walters handled the donations to determine how much could be
spent on the expos.
(a) Walters deposited the donations into the legislative bank
account.
(5)
(6) One thousand one hundred dollars in contributions was received from
Superior Tire, National Fuel, Crossett, Betts Industries, and Sylvania.
(7)
(a) All of these contributions were deposited into Lynch's
legislative account.
For a Kane expo, contributions were received from Allegheny Energy,
Hanlin, Kane Manufacturing, Zook Motors, Kane Hardwoods and
Adelphia.
(a) These contributions were also solicited.
(8) The funds collected from solicitations were used to pay the expenses
of the 2001 senior expos.
Lynch, 02- 018 -C2
Page 13
(
Walters played a role in submitting a request for legislative
reimbursement as to the expenses incurred in the 2001 senior expos.
(a) Reimbursement was sought for expenses that had been paid
from received donations.
1. Lynch directed Walters to submit the request for
reimbursement.
2. The legislative reimbursement requests contain Lynch's
signature.
3. The expenses had already been paid from the
legislative account.
4. When the reimbursement was received from the
Commonwealth, it was deposited into the legislative
account.
d. Walters performed campaign /political activities for Lynch.
(1) On one occasion, Walters did a 1,200 piece mailing on Lynch
campaign letterhead.
(a) Walters did the work in the state office.
(b) Walters spent two weeks to complete the project.
1. Walters had a 40 -hour workweek.
2. It took 40 hours to do the project.
(c) Walters used postage that was paid from legislative funds.
(d) Thirteen roles, each containing 100 stamps, were purchased
around the time of the mailing.
1. $442 was paid from the legislative account for stamps.
57. Alexis A. Brown is the Comptroller of the Pennsylvania House of Representatives.
a. The Comptroller's Office processes all payroll and expenses for the
members and staff.
b. When a member submits a voucher, Brown's office does an audit of the
receipts before issuing a reimbursement.
(1) A reimbursement request may receive only a partial payment if the
member has ran out of funds in his /her account(s).
(a) For a reimbursement request of $2,929.25 (ID -9) by Lynch, he
was reimbursed a lesser amount equal to only the money he
had available to him.
(2) For a subsequent reimbursement claim of Lynch in the amount of
$2,020.63, which included receipts that were not paid in the prior
Lynch, 02- 018 -C2
Page 14
request, the amount was subsequently paid because Lynch received
new monies into his account.
There was a third payment for a senior expo in January 2002. (19,
p47)
c. When a member submits for reimbursement, his /her signature constitutes an
attestation as to the statement above his /her signature.
(1) The attestation is made to the following statement: "The above
statements and expenses claimed are correct and were incurred in
the performance of my legislative duties; I have requested and will not
accept reimbursement for such items from any other source." ID9, p1.
(3)
58. Richard F. Fuechslin is a special investigator with the State Ethics Commission.
a. Fuechslin was assigned the Lynch investigation.
b. For the senior expos, Fuechslin attempted to determine all of the expenses
and reimbursement.
(1) The information was computed from Lynch's check register, monthly
bank statements, and canceled checks.
c. In providing a sworn statement on February 25, 2003, Lynch acknowledged
that a legislative office may not be used for campaign - related activities.
(1) When Lynch was asked if he used his legislative office for campaign
related activities, he responded: "Everybody does."
(2) Although Lynch indicated that he did not do much fundraising, the
campaign expense reports indicate that he did receive campaign -
related donations.
d. Lynch admitted that he ran "some personal stuff" through his legislative bank
account.
e. The staff in his legislative district office solicited donations for the senior
expos.
f. Lynch denied that he received any inappropriate reimbursements from his
legislative account.
Lynch indicated that he would not pay any funds from his own money for
senior expos.
g.
59. Robert Caruso is the Deputy Executive Director and Director of Investigations for
the State Ethics Commission.
a. ID18 covers the timeframe from October 22, 2001, through November 15,
2001.
(1) The above timeframe encompasses two senior expos held through
Lynch's legislative office.
Legislative
District Office
Employee
Hours
Reference
Rate
of Pay
Pay
Heather
Walters
40
Fact Findings
52, 56.d.
$10.93
$437.20
Lynch, 02- 018 -C2
Page 15
(2) A financial analysis was completed as to deposits into the account
from solicitations, expenses as to the senior expos, and legislative/
non - legislative expenditures.
(3)
Donations were used to help fund the two senior expos.
b. Payments were made from Lynch's legislative account to Cabela and MBNA
credit cards totaling approximately $23,000.
60. Lynch is a member of the Pennsylvania House of Representatives
a. Lynch testified that he had minimal involvement with the legislative
checkbook.
b. Lynch stated that the two former employees who testified about campaign
work were not factual in their information.
c. Lynch testified that he did not personally solicit funds for senior expos.
d. Lynch asserted that the filing of the complaint against him was politically
motivated.
e. Lynch denied that he used legislative paid stamps for political mailing.
f. The legislative account is in the name of Lynch who is ultimately
responsible.
Even though requests for legislative reimbursement prohibit the acceptance
of reimbursement from any other source, Lynch submitted expenses for
senior expos after he had already received donations from various outside
sources:
g.
"BY ATTORNEY CONTINO:
Q. My question is, at the time that you signed this and submitted this
statement, isn't it a fact that this statement that you were attesting to here
was not true?
A. Probably." (NT, 198)
h. Lynch acknowledged paying his Cabela and MBNA personal credit cards
from the legislative account.
61. Lynch used his district office, staff and equipment to perform non - legislative
campaign /political activities during normal office hours.
62. Lynch received a financial gain of $3,090.68 from using two employees in his
legislative district office for non - legislative campaign /political activities during
normal office hours.
Christine
2 hrs /wk
Fact Findings
9/97 -5/99: $9.11
$1,712.68
Cummings
8/97 -5/00
49, 55.k.
6/99 -6/00: $9.80
940.80
$2,653.48
Total Financial Gain
$3,090.68
Lynch, 02- 018 -C2
Page 16
C. Documents
63. ID6 is a photocopy of the legislative account register for Lynch from December 30,
1999 to May 23, 2002.
a. ID6, p68 reflects on March 7, 2001, a cash deposit in the amount of $100.00
with a transaction description of Senior Expo -N.W. Savings.
b. ID6, p82 reflects on October 23, 2001, a deposit in the amount of $1,100.00
with a transaction description of Expo (Superior, Nat'l Fuel, Crossett, Betts,
Sylvania).
c. ID6, p83 reflects on November 5, 2001, a deposit in the amount of $1,150.00
with a transaction description of Kane Expo (AIIeg Energy, Hamlin, Kane
Mfg, Zook, Kane Hardwood, Adelphia).
64. ID7 is a photocopy of a formatted letter from Lynch to donors for contributions to a
senior expo to be held on November 2, 2001, at the Holy Redeemer Center in
Warren, PA.
65. ID8 is a photocopy of a listing of vouchers by Lynch for the period from December
2000 to January 2002, including but not limited to various expenses, session per
diems, and session mileage.
66. ID9 consists of photocopies of two legislative expense vouchers of Lynch signed
and dated November 15, 2001 (ID9, p1) claiming reimbursement of $3,853.37,
December 18, 2001 (ID9, p32) claiming reimbursement of $2,048.40 and January
25, 2002, (ID9, p47) claiming reimbursement of $420.27 for inter alia expenses
including but not limited to senior expos.
a. For the November 15, 2001, submission, Lynch was allowed $1,832.74; for
the December 18, 2001, submission, Lynch received $2,020.63; for the
January 25, 2002 submission Lynch received $420.27.
b. The following invoices or receipts relate to senior expo expenses:
(1) ID9, p2 is a copy of an invoice from Bilo dated November 2, 2001, in
the amount of $554.36.
(2) ID9, p3 is a copy of a receipt from Sam's Club dated October 22,
2001, in the amount of $50.18.
ID9, p3 is a copy of a receipt from Sam's Club dated November 1,
2001, in the amount of $430.93.
(4) ID9, p4 is a copy of a receipt from D &K Store dated October 22, 2001,
in the amount of $6.25.
(3)
(5)
ID9, p4 is a copy of a receipt from D &K Store dated October 30, 2001,
in the amount of $37.52.
Lynch, 02- 018 -C2
Page 17
(6) 1D9, p4 is a copy of a receipt from Shur -Fine dated November 2,
2001, in the amount of $30.00.
(7)
1D9, p4 is a copy of an undated receipt from Quality Markets in the
amount of $27.99.
(8) 1D9, p4 is a copy of a receipt from Dollar General Store dated
November 2, 2001, in the amount of $15.90.
1D9, p4 is a copy of a receipt from Thorne's Bilo Foods dated
November 2, 2001, in the amount of $18.89.
(
(10) 1D9, p5 is a copy of an invoice and receipt from Quality Markets dated
October 26, 2001, in the amount of $65.88.
(11) 1D9, p6 is a copy of an invoice and receipt from Quality Markets dated
October 25, 2001, in the amount of $25.94.
(12) 1D9, p7 is a copy of an invoice and receipt from Quality Markets dated
October 26, 2001, in the amount of $23.40.
(13) 1D9, p8 is a copy of a statement from Amy Blauser dated November 2,
2001, in the amount of $475.00.
(14) 1D9, p9 is an undated copy of an invoice from Amy Blauser (Caterer)
in the amount of $60.00.
(15) 1D9, p10 is an undated copy of an invoice from Tom Brinkley
(Caterers) in the amount of $500.00.
(16) 1D9, p11 is a copy of a rental contract from Just Ask Rental dated
October 25, 2001, in the amount of $330.72.
(17) 1D9, p12 is an undated copy of a catering invoice from Holy
Redeemer Church in the amount of $266.00.
(18) 1D9, p50 is a copy of a cleaning work order from Bartsch Carpet and
Upholstery dated November 12, 2001 in the amount of $55.00.
There are no invoices or receipts as to charges by James Wadsworth
($75.00) and Drew Neal ($50.00) for the senior citizen expos.
67. ID10 is a photocopy of a listing for the processing of legislative expenses submitted
by Lynch.
68. ID11 consists of photocopies in part of statements from Northwest Savings Bank as
to Lynch's legislative account together with canceled checks from donors for the
senior expos and checks from the Lynch account for various senior expo expenses.
a. Senior Expo Expenses
(1) ID11, p31 is a photocopy of a check to Jill Thompson dated October 25,
2001, in the amount of $56.43 with a memo description of
reimbursement -expo.
Lynch, 02- 018 -C2
Page 18
(2) ID11, p32 is a photocopy of a check to Burke's dated October 25,
2001, in the amount of $330.72 with a memo description of tables -
expo.
ID11, p33 is a photocopy of a check to Quality Markets dated October
29, 2001, in the amount of $65.22 with a memo description of Kane
Expo.
(4) ID11, p34 is a photocopy of a check to D &K dated October 30, 2001,
in the amount of $37.52 with no memo description.
ID11, p35 is a photocopy of a check to Sam's Club dated November
1, 2001, in the amount of $430.93 with a memo description of Sr.
Expo.
(6) ID11, p36 is a photocopy of a check to Warrens Shur Fine dated
November 2, 2001, in the amount of $30.00 with a memo description
of Cider Senior Xpo.
(3)
(5)
ID11, p37 is a photocopy of a check to Amy Blauser dated November
2, 2001, in the amount of $60.00 with a memo description of Kane.
(8) ID11, p38 is a photocopy of a check to Tom Brinkley dated November
2, 2001, in the amount of $500.00 with a memo description of Kane.
ID11, p39 is a photocopy of a check to Jerry Wadsworth dated
November 7, 2001, in the amount of $75.00 with a memo description
of Sr. Expo - tables.
(10) ID11, p40 is a photocopy of a check to Drew Neal dated November 7,
2001, in the amount of $50.00 with a memo description of Sr. Expo -
tables.
(7)
(
(11) ID11, p41 is a photocopy of a check to Debbie Haskins dated
November 9, 2001, in the amount of 27.99 with a memo description of
cookies -Expo.
(12) ID11, p42 is a photocopy of a check to Bartsch Carpet & Upholstery
dated January 21, 2002, in the amount of $55.00 with a memo
description of Senior Expo.
(13) ID11, p43 is a photocopy of a check to Amy Blauser dated November
15, 2002, in the amount of $475.00 with a memo description of Expo.
(14) ID11, p44 is a photocopy of a check to Sandra Constable dated
November 15, 2001, in the amount of $266.00 with a memo
description of Expo - chili.
(15) ID11, p45 is a photocopy of a check to Bilo dated November 15, 2001
in the amount of $573.19 with a memo description of 559548 &
spoons.
(16) ID11, p46 is a photocopy of a check to Heather Walters dated
November 15, 2001, in the amount of $15.90 with a memo description
of supplies.
b. Senior expo donations
Lynch, 02- 018 -C2
Page 19
(1) 1D6, p68 is a photocopy of a check register listing in part a cash
deposit of $100.00 into Lynch's legislative account on March 5, 2001.
(2) ID11, p11 is a photocopy of a check from Crossett, Inc. dated August 10,
2001, in the amount of $50.00 deposited into Lynch's legislative
account on October 23, 2001.
ID11, p12 is a photocopy of a check from National Fuel Gas
Distribution Corporation dated August 16, 2001, in the amount of
$100.00 deposited into Lynch's legislative account on October 23,
2001.
(3)
(4) ID11, p13 is a photocopy of a check from Betts Industries, Inc. dated
August 15, 2001, in the amount of $200.00 deposited into Lynch's
legislative account on October 23, 2001.
ID11, p14 is a photocopy of a check from Superior Tire & Rubber
Corporation dated August 3, 2001, in the amount of $250.00
deposited into Lynch's legislative account on October 23, 2001.
(6) ID11, p15 is a photocopy of a check from Osram Sylvania dated
August 15, 2001, in the amount of $500.00 deposited into Lynch's
legislative account on October 23, 2001.
ID11, p18 is a photocopy of a check from The Collins Companies,
Kane Hardwood, dated October 18, 2001, in the amount of $100.00
deposited into Lynch's legislative account on November 5, 2001.
(8) ID11, p21 is a photocopy of a check from Adelphia dated October 16,
2001, in the amount of $500.00 deposited into Lynch's legislative
account on November 5, 2001.
ID11, p22 is a photocopy of a check from Allegheny Energy dated
October 24, 2001, in the amount of $400.00 deposited into Lynch's
legislative account on November 5, 2001.
(10) ID11, p23 is a photocopy of a check from Kane Manufacturing
Corporation dated October 19, 2001 in the amount of $25.00
deposited into Lynch's legislative account on November 5, 2001.
(11) ID11, p24 is a photocopy of a check from Hamlin Bank and Trust
Company dated October 22, 2001, in the amount of $75.00 deposited
into Lynch's legislative account on November 5, 2001.
(12) ID11, p25 is a photocopy of a check from Zook Motors dated October 18,
2001, in the amount of $50.00 deposited into Lynch's legislative
account on November 5, 2001.
(5)
(7)
(
c. The total amount of donations received and utilized for senior expos was
$2,350.00 as per Fact Findings 68.b., 63.
d. With the cost of the senior expos at $3,098.96 (Fact Finding 29) and
received contributions of $2,350.00, the expenditures by Lynch were
$748.96.
(1) With Lynch submitting and receiving reimbursement of $3,039.51
(Fact Finding 33), Lynch obtained a pecuniary benefit of $2,290.55
($3,039.51 - $748.96).
Lynch, 02- 018 -C2
Page 20
(a) The pecuniary benefit was not authorized in law since Lynch
submitted and received $2,290.55 for which he already
obtained reimbursement through donations, contrary to
legislative fiat.
69. ID12 consists of photocopies of a legislative expense voucher signed by Lynch on
October 16, 2001 submitted in the amount of $1,272.85 and reimbursed in the
amount of $1,272.85 for enumerated expenses.
a. 1D12, p13 contains a photocopy of a receipt from the Warren Main Post
Office dated October 9, 2001, in the amount of $442.00 for 13 rolls of 34-
cent stamps.
70. 1D13 consists of photocopies of account statements of Northwest Savings Bank
from the account of Lynch including photocopies of checks issued from the account.
71. ID19 & 1D20 consist of photocopies of campaign expense reports of Lynch signed
May 9, 2002, and January 30, 2002, respectively.
a. The report for 2002 reflects a beginning balance of $4,775.41, contributions
of $34,015.01, and expenditures of $10,625.25 leaving an ending balance of
$28,165.17.
b. The report for 2001 reflects a beginning balance of $10,324.80, contributions
of $5,193.54, and expenditures of $10,742.93 leaving an ending balance of
$4,775.41.
72. 1D21 in part reflects photocopies of two checks from Lynch's legislative account,
each in the amount of $442.00 for U. S. postage stamps and each check dated
October 9, 2001.
73. 1D22 is a photocopy of employment information relating to two former employees in
Lynch's district office: Heather A. Walters and Christine Cummings.
a. Heather Walters worked from September 8, 1997, to December 11, 2001.
(1) Her hourly rate of pay for 2001 was $10.93.
b. Christine Cummings worked from August 27, 1997 to October 3, 2000.
(1) Cummings was on leave without pay from July 27, 2000, to October 3,
2000.
(2) Her hourly rate of pay for 2000 was $10.81. (cf, Fact Finding 49)
III. DISCUSSION:
At all times relevant to this matter, the Respondent, James Lynch, hereinafter
Lynch, has been a public official subject to the provisions of the Public Official and
Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et seq., as codified
by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. §
1101 et seq., which Acts are referred to herein as the "Ethics Act."
The allegations are that James Lynch, as a member of the Pennsylvania House of
Representatives for the 65 District, violated Section 1103(a) of the Ethics Act when he
submitted and received excess reimbursements from his legislative account for expenses
not incurred; and used employees of his district /state offices, equipment and materials to
conduct campaign related work.
Lynch, 02- 018 -C2
Page 21
Pursuant to Section 1103(a) of the Ethics Act quoted above, a public official /public
employee is prohibited from engaging in conduct that constitutes a conflict of interest.
Section 1103(a) of the Ethics Act prohibits a public official /public employee 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.
facts.
Having noted the issues and applicable law, we shall now summarize the relevant
Lynch has served as a State Representative in the 65 District from January 1993
through the present. In 2001, Lynch arranged for two senior expositions in his district
through his legislative office. The purpose of the senior expos is to invite seniors and
advise them of different programs available to them as well as to provide information,
answers, and address any problems or concerns they may have. One senior expo was
held in Kane, Pennsylvania on October 26, 2001; the other was held in Warren,
Pennsylvania on November 2, 2001.
In order to hold senior expos, Lynch relied upon two Commonwealth employees in
his district office, Chris Cummings (Cummings) and Heather Walters (Walters), to perform
all of the groundwork and make the arrangements for the expos. Since Cummings left
employment in Lynch's district office in 2000, Walters did the work on the senior expos
held in the fall of 2001. Generally, the work entailed solicitations of donations from various
individuals and businesses in the area to underwrite the expenses for holding the senior
expos. Further, various vendors were contacted to supply facilities, tents, food, flowers,
and materials for the senior expos.
For the solicitation of donations, Lynch used a form letter sent out to various
individuals and businesses. See, Fact Finding 64. The received donations were
deposited into Lynch's legislative account. Correspondingly, various expenses that were
incurred for the facilities, food and various supplies were paid out of his legislative
account. There is no factual dispute as to the amount of the expenses in holding the two
senior expos or as to the amounts of donations received by Lynch. The expenditures for
the two senior expos totaled $3,098.96 (Fact Finding 29) while the donations amounted to
$2,350.00 (Fact Findings 63, 68.b -d). Given that the donations were less than the
expenses, Lynch incurred out -of- pocket expenses of $748.96 for the two senior expos.
See, Fact Finding 68.d.
Lynch subsequently submitted reimbursement to the Commonwealth of
Pennsylvania for expenses as to the senior expos in the amount of $3,039.51. See, Fact
Finding 33. Lynch, in signing the request for reimbursement to the Comptroller of the
House of Representatives of the Commonwealth of Pennsylvania, made the following
attestation: "The above statements and expenses claimed are correct and were incurred
in the performance of my legislative duties; I have requested and will not accept
reimbursement for such items from any other source." See, Fact Finding 57.c.(1). Lynch
admitted that his attestation was not true. See, Fact Finding 60.g.
The second factual scenario concerns the allegation of political activities of his two
legislative district office employees, Cummings and Walters. Cummings testified that she
performed non - legislative activities on state time without taking leave. Those activities
included inter alia taking donations to Lynch's campaign treasurer and writing thank you
notes on his campaign letterhead. Cummings testified that she spent at least two hours
per week on non - legislative activities for the period August [sic] 1997 through May 2000.
Cummings also performed personal functions for Lynch at his request. Cummings testified
Lynch, 02- 018 -C2
Page 22
that Lynch specifically directed her not to tell anyone that she was doing non - legislative
work on state time. Further, if anyone asked, Lynch directed Cummings to respond that
she was doing such work during her lunchtime or breaks.
Walters was also directed by Lynch to perform campaign political activities. In one
instance, Lynch directed Walters to do a campaign mailing of 1,200 pieces of
correspondence. Walters performed such work in the state office. Walters testified that it
took 40 hours to do that non - legislative project. Walters indicated that U.S. postage which
was paid from legislative funds was used for certain campaign /political activities.
In contrast to the testimony of Cummings and Walters, Lynch testified that those two
former employees were not factual in the information about which they testified.
Having summarized the above relevant facts, we will now highlight the arguments
made by the parties in their briefs /closing statements.
The Investigative Division in its Brief and Closing Statement makes the following
arguments: the Ethics Act seeks to remedy the use of public office for personal profit;
public officials may not use government offices and employees for political fundraising; the
Ethics Act embodies the common law principle that a public official may not use his
position to further his own interests; a legislator may not receive expense reimbursement
to which he is not entitled or has not incurred an expense or has been reimbursed from
another source; a legislator's use of authority of office encompasses expending public
funds and incurring expenses; a private pecuniary benefit includes a reimbursement of
monies already provided by private donors, salaries paid to district office staff for time
spent on political /personal matters, and state funds expended on postage utilized for
political /campaign purposes; government employees must apply their complete service to
governmental matters during business hours; clear and convincing proof of record
establishes Lynch received $2,290.55 in reimbursement for expenses that were already
paid through private donations; Lynch certified by his signature that he would not accept
reimbursement from any other source when he in fact did so; Lynch directed state
employee Walters to do a 1200 piece mailing on campaign letterhead with postage
purchased from Commonwealth funds during normal state working hours; Lynch directed
staff employee Cummings to perform political /campaign activities which averaged two
hours per week for her entire employment; Lynch in his testimony established a lack of
credibility on his part through evasiveness and an admitted false written statement; the
Commission should impose restitution of the financial gain received by Lynch consisting of
$2,290.55 of excess reimbursements, $3,550.48 in salaries to staff employees for
campaign /election activities during office hours, and Commonwealth paid postage of
$442.00 for political purposes, all totaling $6,230.00; and this Commission should refer the
matter for both criminal and disciplinary action.
Lynch proffers the following in his closing statement: Lynch includes his answer to
the Investigative Complaint; Cummings lacks credibility based upon breaches of confidentiality
under the Ethics Act, charges of sexual harassment against Lynch that were found to be
unbelievable, and "borrow[ing]" of office account funds; Walters lacks credibility based
upon breaches of confidentiality of the Ethics Act, her termination due to numerous missed
work or tardiness, borrowing of funds from the office account, and dealings with the
Chairman of the Warren County Republican Party; Lynch had no opponent when
Cummings and Walters worked so there could be no campaigning; Lynch asked Walters to
do a political mailing using her home computer but she did not finish the job; Lynch always
told new employees that political activities may not be done in the district office, only at
lunch or after hours; Lynch did not make deposits and only wrote a few checks from the
office account; Lynch attempted to correct the situation as to the senior expos by
contacting the donors; and Lynch submitted very little or no reimbursement during his first
several years of senior expos.
Lynch, 02- 018 -C2
Page 23
We must now determine whether the actions of Lynch violated Section 1103(a) of
the Ethics Act.
In applying Section 1103(a) of the Ethics Act to the first allegation, the legal
question before us is the significance of Lynch's action in seeking reimbursement for
expenses which to a large extent were already reimbursed by donations. But for the fact
that Lynch was a State Representative, he would not have been in a position to submit
reimbursements for expenses that he did not incur as to the senior expos. The
submissions for reimbursement of expenses that were paid by donations were uses of
authority of office. See, Juliante, Order 809. Although Lynch claimed reimbursement in
the amount of $3,039.51, he was only out of pocket for the senior expos in the amount of
$748.96. Thus, the $2,290.55 was a pecuniary benefit to him. That pecuniary benefit was
private because there was no authorization in law for Lynch to receive such funds. In fact,
the pecuniary benefit was prohibited because Lynch attested that he did not request or
receive reimbursement for such items from any other sources when he in fact did receive
such funds through donations from businesses and individuals. Lynch has admitted to this
fact. See, Fact Finding 60.g. Lastly, the private pecuniary benefit inured to Lynch himself.
Accordingly, Lynch violated Section 1103(a) of the Ethics Act when he used the authority
of office to submit and receive excess reimbursement from his legislative account for
expense not incurred.
The effort by Lynch, after he learned he was subject to the investigation, to contact
contributors to authorize the use of the funds for a future senior expo is unavailing. An
after - the -fact attempt at undoing an Ethic Act violation has no efficacy. See, Dovidio,
Order 1202.
The second allegation concerns the use of employees, equipment and materials in
his district office to conduct political /campaign work. Before addressing the allegation, we
must resolve an issue about the testimony of legislative district office employees,
Cummings and Walters. Both testified that Lynch directed them to perform
campaign /political work in the district office during state working office hours while Lynch
testified that Cummings and Walters were not factual in their testimony. To resolve this
issue, we have reviewed the testimony of all three witnesses in the context of their
responses to questions during the hearing as well as the observation of their demeanors.
We find that Cummings and Walters, two disinterested third -party witnesses, were
forthright and truthful in their testimony.
Having resolved the credibility issue, we will now address this particular allegation.
The actions by Lynch in directing Cummings and Walters to do political /campaign activity
in the district office during normal working hours were uses of authority of office. Lynch, as
a State Representative, was in the position to take such action. Such uses of authority of
office resulted in private pecuniary benefits to Lynch consisting of the savings he had in
not incurring out -of- pocket expenditures to pay individuals to perform such
campaign /political activities. Those private pecuniary benefits inured to Lynch.
Accordingly, Lynch violated Section 1103(a) of the Ethics Act when he utilized his
legislative district employees in the district office to perform political /campaign related work
during normal state office hours. Our decision in this case is consistent with plethora of
prior precedent of this Commission that a public official /public employee may not use
government offices, equipment, facilities, or personnel for private business or
campaign /political activities. See, Friend, Order 800; Rieger, Order 680; Rockefeller,
Order 1004.
As to the arguments raised by Lynch, the senior expo reimbursement has no
question of fact(s). The expenses, the donations and the reimbursement received by
Lynch are unchallenged. Lynch has even admitted to signing the attestation which
constituted a certification that he received no other reimbursement when he in fact did so
for the senior expos. Lynch's use of authority of office for the unauthorized reimbursement
Lynch, 02- 018 -C2
Page 24
constituted a private pecuniary benefit in violation of Section 1103(a) of the Ethics Act.
Regarding the use of Commonwealth employees Cummings and Walters for political/
personal non - legislative tasks during normal state office hours, this hinges upon credibility
which we have addressed above.
Although the Investigative Division seeks a violation and payback of $442.00 as to
the use of Commonwealth paid postage for the political mailing, we do not find clear and
convincing proof of a use of authority of office by Lynch in the context of a direction to
Walters to use such postage.
Section 1107(13) of the Ethics Act empowers this Commission to impose restitution
in instances where a public official /public employee has obtained a financial gain in
violation of the Ethics Act. Restitution is warranted in this case. Accordingly, Lynch is
directed within 30 days of the date of mailing of this Order to make payment to the
Commonwealth of Pennsylvania through this Commission in the amount of $5,381.23. The
foregoing amount consists of the $3,090.68 as to the use of staff time of Cummings and
Walters plus the $2,290.55 from receiving the senior expo reimbursement for expenses
that were paid by donors. Parenthetically, as to the use of district office employees for
campaign /political purposes, the hourly rate of pay was based upon an admitted averment
(Fact Finding 49) rather than the documentary evidence (Fact Finding 73) in determining
the appropriate amount of restitution. Non - compliance with the above directive will result
in the institution of an order enforcement action.
This matter will be forwarded to the Pennsylvania House of Representatives for its
review of Lynch's conduct.
IV. CONCLUSIONS OF LAW:
1. Lynch, as a member of the Pennsylvania House of Representatives for the 65
District, is a public official subject to the provisions of Act 9 of 1989 as codified by
Act 93 of 1998.
2. Lynch violated Section 1103(a) of the Ethics Act when he used the authority of
office to submit and receive excess reimbursements from his legislative account for
expenses not incurred.
3. Lynch violated 1103(a) of the Ethics Act when he utilized his legislative district
employees in the district office to perform political /campaign related work during
normal state office hours.
In Re: James Lynch
ORDER NO. 1334
File Docket: 02- 018 -C2
Date Decided: 6/8/04
Date Mailed: 6/22/04
1 Lynch, as a member of the Pennsylvania House of Representatives for the 65
District, violated Section 1103(a) of the Ethics Act when he used the authority of
office to submit and receive excess reimbursements from his legislative account for
expenses not incurred.
2. Lynch violated 1103(a) of the Ethics Act when he utilized his legislative district
employees in the district office to perform political /campaign related work during
normal state office hours.
3. Lynch is directed within 30 days of the date of mailing of this Order to make
payment to the Commonwealth of Pennsylvania through this Commission in the
amount of $5,381.23. Non - compliance will result in the institution of an order
enforcement action.
4. This matter will be forwarded to the Pennsylvania House of Representatives for its
review of Lynch's conduct.
BY THE COMMISSION,
Louis W. Fryman, Chair