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HomeMy WebLinkAbout1344 BensonIn Re: Fred Benson File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Raquel K. Bergen 03 -049 Order No. 1344 9/20/04 10/1/04 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 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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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. Benson, 03 -049 Page 2 I. ALLEGATION: That Fred Benson, a public official /public employee, in his capacity as a Lennox Township Supervisor, Susquehanna County, violated Sections 1103(a); 1105(b)(5)(8), and 1104(d) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1101 et seq., (Act 93 of 1998), when he used the authority of his office for a private pecuniary gain by utilizing township equipment for work on his private property; when he utilized township equipment for his private business interests; and when he failed to file Statements of Financial Interests for calendar years 1999, 2000, 2001 and 2002; and when he failed to disclose on the Statement of Financial Interests for the 1998 calendar year his office /directorship in the West Lenox Cemetery Association and failed to disclose income in excess of $1,300. II. FINDINGS: 1. Fred Benson has served as a member of the Lenox Township, Susquehanna County, Pennsylvania Board of Supervisors since at least 1994. a. Benson currently is the Vice Chairman of the Board of Supervisors. 2. Fred Benson has served as the roadmaster for Lenox Township for the past eight (8) years. a. Benson has been appointed roadmaster annually by the board of supervisors. 3. The Lenox Township roadmaster is responsible for the overall maintenance of township roads, supervision of the road department and maintenance and operation of township equipment. a. There is approximately 50 miles of road within Lenox Township. b. There is fewer than 5 miles of paved road within Lenox Township. 4. Benson's compensation as roadmaster is approved by the Lenox Township Board of Auditors. a. Benson's currently hourly rate of $11.00 per hour has been approved by the auditors. b. Notwithstanding emergencies, Benson works approximately 40 hours per week as roadmaster. 5. Lenox Township owns the following equipment: a. Four trucks. b. One backhoe. c. One front -end loader. d. One grade all. e. Other equipment includes a tractor used for raking roads. 6. Lenox Township has three regular employees and two as needed /seasonal employees. Benson, 03 -049 Page 3 a. These employees work in the maintenance of township roads. b. Some of these employees operate township owned equipment. c. These employees work under the direct supervision of the roadmaster (Fred Benson). 7 The West Lenox Cemetery, a /k/a the Tower Cemetery, is within the boundaries of Lenox Township. 8. The West Lenox Cemetery Improvement Association (WLCA) is the owner of the West Lenox Cemetery. a. The WLCA receives funds from the sale of graves within the West Lenox Cemetery. b. The WLCA is responsible for the maintenance of the West Lenox Cemetery. 9. Fred Benson is the President of the WLCA. a. Benson has been the President of the WLCA since April 29, 2002. 10. Fred Benson has been the caretaker of the West Lenox Cemetery since April 28, 1998. a. Benson is responsible for general maintenance, including trimming and mowing of the grass for which he is compensated. 11. Benson's responsibilities in relation to West Lenox Cemetery include the following: a. Maintenance of the West Lenox Cemetery as its caretaker. b. Maintaining records of burials at the West Lenox Cemetery. c. Collecting fees for grave openings /closings. d. Collecting fees for grave openings /closings. [sic] e. Supervising burials at the West Lenox Cemetery. 12. Irene MacDonald, the sister of Fred Benson, serves as the secretary /treasurer of the WLCA. 13. MacDonald is responsible for the following: a. Keeping minutes of the West Lenox Cemetery Association annual meetings. b. Receiving funds from the sale of graves. c. Issuing and signing checks on behalf of the West Lenox Cemetery Association. d. Checks did not include payments for grave site openings /closings. 14. During the period May 20, 2000, through September 17, 2003, Benson received twenty -one (21) such checks totaling $7,970.00. Benson, 03 -049 Page 4 a. The checks contained a notation on the memo line that the check was issued for mowing /trimming. b. These checks were endorsed by Fred Benson. c. These checks were cashed by Fred Benson. d. Checks issued to Benson did not include payments for gravesite openings/ closings. 15. McDonald, Secretary /Treasurer of the West Lenox Cemetery Association, confirmed that all fees collected for grave openings /closings are paid to Benson. a. No fees for grave openings /closings are deposited into any of the accounts of the West Lenox Cemetery Association. b. Fees for grave openings are set by Benson. 1. Fees charged by Benson since 2000 are as follows: 2000: $300 to $350 2001: $300 to $350 2002: $400 to $425 2003: $400 to $425 2. Benson charged a rate of $75 for cremations. 3. Fees charged [sic] included the costs of opening and closing a grave site, filling grave and removing dirt as necessary. 16. During the period January 1, 2000, through December 31, 2003, there were twenty - one (21) burials in the West Lenox Cemetery. a. The fees for the grave openings /closings totaled $5,825.00. b. Grave opening fees by year are as follows: 2000: $ 950.00 2001: $1,325.00 2002: $1,375.00 2003: $2,175.00 c. All of the grave opening fees were provided to Fred Benson. 17. Of the twenty -one (21) checks issued for the grave opening /closing for the aforementioned, the following has been confirmed. a. Sixteen (16) checks were issued directly to Fred Benson by funeral homes or representatives of the deceased. 1. All 16 checks were endorsed and cashed by Benson. b. Two (2) checks were issued to the West Lenox Cemetery. 1. Both were endorsed and cashed by Benson. c. One (1) check was issued to Romelia Benson, wife of Fred Benson. Benson, 03 -049 Page 5 1. The check was endorsed by both Romelia Benson and Fred Benson. d. Two (2) checks for grave opening /closing couldn't be located due to the unavailability of surviving family members. 18. The check issued to Romelia Benson was check No. 1239 issued on November 10, 2003, in the amount of $425 by the Litwin Funeral Home. a. The check was endorsed by both Romelia Benson and Fred Benson. b. Litwin made the check payable to Romelia Benson at the request of Fred Benson. 1. Benson informed Litwin the reason for the request was the he was being investigated. 19. The WLCA owns no equipment with which to open /close graves. 20. On two occasions between March 2002 and November 2002, Benson utilized equipment owned by Lenox Township to dig graves or move stone at the West Lenox Cemetery. a. A township employee operated township equipment specifically identified as a backhoe. 1. The work done at the West Lenox Cemetery was beyond the employee's normal work hours. 2. The township employee was not compensated by Benson or the township for operating this equipment. 21. Lenox Township was not reimbursed by the West Lenox Cemetery Association for the use of township equipment to dig graves. a. Fred Benson did not reimburse Lenox Township for the private use of its equipment. b. The board of supervisors, of which Benson is a member, did not request reimbursement and voice no opposition, upon learning that Benson had used the township equipment for the benefit of the WLCA. 22. Randy Decker of PennDOT's Municipal Services Division contacted Benson in early January 2003 regarding allegations of misuse of township equipment. a. Benson admitted to Decker to using a township backhoe on two occasions in 2001 -2002 to dig graves at a local cemetery. b. Benson did not admit that he had been compensated for the private use of the township backhoe. c. Decker forwarded a letter dated January 28, 2003, to the Lenox Township Board of Supervisors suggesting the township stop the practice immediately. 23. Burial permit records of WLCA confirm single burial permits for March 2002 as follows: Benson, 03 -049 Page 6 a. March 12, 2002: Burial permit for Marita Cook 24. Arrangements for the Cook interment was handled by the Tuttle - Yeisley Funeral Home 25. Benson was issued a $400.00 check by the Tuttle - Yeisey Funeral Home for the opening and closing of the Cook grave site. 26. Benson used the township backhoe to assist with the burial of George Michaels on October 19, 2001. a. Benson used the township backhoe to assist the contractor in moving an overly large stone. 27. The Michaels internment was handled by the Barton Funeral Home, Montrose, PA. a. The Barton Funeral Home issued check no. 691 dated October 18, 2001, in the amount of $300.00 to the West Lenox Cemetary [sic]. 28. Benson retained the payments from Tuttle - Yeisey and Barton. a. No funds were given to the Cemetery Association. b. No payments were made to Lenox Township for use of township equipment to dig the sites. c. No payments were made to the township employee who operated the equipment. 29. Benson, as an elected Lenox Township Supervisor, is required to file a Statement of Financial Interests (SFI) Form (SEC -1) each year he holds office and the year following completion of public service. 30. Benson filed a Statement of Financial Interests for the 1998 calendar year on March 5, 1999. a. Benson did not disclose any direct or indirect sources of income in excess of $1,300. 1. In 1998 Benson earned in excess of $1,300 from Lenox Township and the WLCA. 31. A Statement of Financial Interests compliance review conducted by an investigator for the State Ethics Commission confirmed that Benson has not filed Statements of Financial Interests with Lenox Township for the following calendar years. 1999 2000 2001 2002 32. As an elected supervisor in Lenox Township, Benson is paid $25.00 per meeting of the Board of Supervisors. a. The Board of Supervisors meet once a month. b. On occasion, the Board of Supervisors have a special meeting in addition to Benson, 03 -049 Page 7 the regularly scheduled monthly meeting. c. Benson has attended all monthly meetings of the board of supervisors since 1999. 33. During the period from 1999 through 2002 when he failed to file Statements of Financial Interests, Benson was compensated as follows by the township: Roadmaster Salary Meeting Pay 1999: $300.00 2000: $18,020.00 $300.00 2001: $20,191.00 $300.00 2002: $23,309.50 $300.00 III. DISCUSSION: At all times relevant to this matter, the Respondent, Fred Benson, hereinafter Benson, 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 Benson, as a Lenox Township Supervisor, Susquehanna County, violated Sections 1103(a), 1105(b)(5)(8), and 1104(d) of the Ethics Act, when he utilized township equipment for work on his private property and for his private business interests; failed to file Statements of Financial Interests (SFI's) for calendar years 1999, 2000, 2001 and 2002; and failed to disclose his office /directorship in the West Lenox Cemetery Association (WLCA) and certain income in excess of $1,300 on his 1998 calendar year SFI. 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. The term "conflict of interest" is defined under Act 93 of 1998 as follows: Section 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. "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. § 402/65 Pa.C.S. § 1102. 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 Benson, 03 -049 Page 8 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. §1104. Statement of financial interests required to be filed (a) Public official or public employee. - -Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa. C. S. §1104(a). 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. Section 1105(b)(5) of the Ethics Act requires that every public official /public employee and candidate list the name and address of any direct or indirect source of income totaling in the aggregate of $1,300 or more. Section 1105(b)(8) of the Ethics Act requires that every public official /public employee and candidate list any office, directorship or employment of any nature whatsoever in any business entity. § 1105. Statement of financial interests (b) Required information. - -The statement shall include the following information for the prior calendar year with regard to the person required to file the statement: (5) The name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. However, this provision shall not be construed to require the divulgence of confidential information protected by statute or existing professional codes of ethics or common law privileges. (8) Any office, directorship or employment of any nature whatsoever in any business entity. Benson, 03 -049 Page 9 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. Benson has served as a Lenox Township Supervisor since 1994 and as the appointed roadmaster for the last eight years. Benson typically works a 40 -hour workweek and receives roadmaster compensation at $11.00 per hour as approved by the board of auditors. The township has two regular and three seasonal employees who work on the roads under the direct supervision of Benson as roadmaster. In a private capacity, Benson is President of WLCA which owns the West Lenox Cemetery (Cemetery). Benson, as caretaker for the cemetery, performs general maintenance including trimming and mowing the grass, maintaining burial records, collecting fees and supervising burials. Irene McDonald, Benson's sister, serves as the secretary /treasurer of the WLCA and has duties consisting of keeping the minutes of annual meetings, receiving funds, and issuing and signing checks on behalf of WLCA, except for those checks involving grave openings /closings. McDonald has confirmed that all fees collected involving grave openings/ closings are paid to Benson. For the period January 2000 through December 2003, Benson received $5,825.00 for 21 burials, the details of which are delineated in Fact Finding 16.b. Since the WLCA does not own any equipment to open /close graves, Benson on two occasions in March and November of 2002 utilized township equipment to open graves or move stone at the cemetery. A township employee operated the township equipment after normal work hours but did not receive any compensation from Benson or the township for operating the equipment. The township was not reimbursed by the WLCA or Benson for the use of the township equipment to open the graves. An individual in PennDOT's Municipal Services Division contacted Benson in January of 2003 regarding allegations of misuse of township equipment. Benson admitted using the township equipment on two occasions to open graves. The PennDOT official then forwarded a letter to the township board of supervisors suggesting that the township stop the practice immediately. As to the two instances where the township equipment was used to open the graves, Benson received a $400.00 check in one case and a $300.00 check in the other consisting of the fees relating to those internments. Benson retained those payments and gave no funds to either the WLCA, Lenox Township, or the township employee who operated the equipment. Benson, as an elected township supervisor, is required to file SFI's on an annual basis. Although Benson filed an SFI for the calendar year 1998, he failed to disclose any direct or indirect sources of income in excess of $1,300.00. For that calendar year, Benson received income in excess of $1,300.00 from both Lenox Township and WLCA. As to the calendar years 1999 through 2002, Benson failed to file SFI's for those calendar years. The stipulated findings do not delineate whether Benson reported his office in WLCA on his 1998 calendar year SFI. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations. The Consent Agreement proposes that this Commission find: "a. No violation of Section 1103(a) of the State Ethics Act regarding the allegation that Benson, 03 -049 Page 10 Benson used township equipment on his personal property. b. An unintentional violation of Section 1103(a) of the State Ethics Act occurred when Benson used township equipment to dig graves at the West Lenox Cemetery for which he subsequently was paid. c. That unintentional violations of Section 1104(d) of the State Ethics Act occurred when Benson failed to file Statements of Financial Interests for the 1999 through 2002 calendar years. d. That an unintentional violation of Section 1105(b)(5) occurred when Benson did not disclose the receipt of all income in excess of $1,500 [sic] on the Statement of Financial Interests filed for the 1998 calendar year. e. That an unintentional violation of Section 1105(b)(8) occurred when Benson failed to disclose on the 1998 Statement of Financial Interests his office, directorship in the West Lenox Cemetery Association." In addition, Benson agrees to pay $800 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the mailing of this order. In applying Section 1103(a) of the Ethics to the allegation that Benson used township equipment on his personal property, the stipulated findings do not reflect any instance where Benson took such action. Given that the record does not set forth any facts to support the allegation, we find that Benson did not violate Section 1103(a) of the Ethics Act in that he did not use township equipment on his personal property. The stipulated findings reflect two instances where Benson used township equipment for the purpose of opening graves at the West Lenox Cemetery. The findings further reflect that Benson received fees in both of those cases as to those two internments. Such actions on the part of Benson were uses of authority of office. But for the fact that he was a supervisor, Benson could not have been in a position to utilize the township equipment for the non - public purpose of opening the two gravesites at the cemetery. Such actions were uses of authority of office. See, Juliante, Order 809. The uses of authority of office on the part of Benson resulted in private pecuniary benefits consisting of the fees that he received as to the opening of the gravesites at the cemetery. Lastly, the private pecuniary benefits inured to Benson himself. Accordingly, Benson unintentionally violated Section 1103(a) of the Ethics Act when he used township equipment to open graves at the West Lenox Cemetery and received fees which he retained for personal use. See, Reis, Order 1283. Turning to the matter of the SFI's, the findings reflect that Benson failed to file the required SFI's for the calendar years 1999 -2002. Benson failed to perform this duty as required by law. Accordingly, Benson unintentionally violated Section 1104(d) of the Ethics Act when he failed to file SFI's for the calendar years 1999 through 2002. If Benson has not already done so, he is directed within 30 days of the date of mailing of this order to fully and accurately complete and then file SFI's for the calendar years 1999 through 2002 with Lenox Township. In addition, Benson is directed to file copies with this Commission for compliance verification purposes. As to the 1998 calendar year, the findings reflect that Benson did not disclose the receipt of income from the township and the WLCA even though his income from those two sources exceeded $1,300.00. Accordingly, Benson unintentionally violated Section 1105(b)(5) of the Ethics Act when he failed to disclose receipt in income in excess of $1,300.00 on his SFI for the 1998 calendar year. Lastly, as to the allegation that Benson violated Section 1105(b)(8) of the Ethics Act regarding his failure to disclose his office or directorship in the WLCA on the 1998 Benson, 03 -049 Page 11 calendar year SFI, there are no facts of record to establish a failure on the part of Benson to disclose that financial interest. Accordingly, Benson did not violate Section 1105(b)(8) of the Ethics Act regarding the allegation that he failed to disclose his office or directorship in the WLCA, based upon an insufficiency of evidence. See, 2 Pa.C.S. §507. 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, Benson is directed to pay $800 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the mailing of this order. Compliance with the foregoing payment and SFI's filing directives 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. Benson, as a Lenox Township Supervisor, is a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Benson did not violate Section 1103(a) of the Ethics Act in that he did not use township equipment on his personal property. 3. Benson unintentionally violated Section 1103(a) of the Ethics Act when he used township equipment to open graves at the West Lenox Cemetery and received fees which he retained. 4. Benson unintentionally violated Section 1104(d) of the Ethics Act when he failed to file SFI's for the calendar years 1999 through 2002. 5. Benson unintentionally violated Section 1105(b)(5) of the Ethics Act when he failed to disclose receipt in income in excess of $1,300.00 on his Statement of Financial Interests for the 1998 calendar year. 6. Benson did not violate Section 1105(b)(8) of the Ethics Act regarding the allegation that he failed to disclose his office or directorship in the WLCA, based upon an insufficiency of evidence. In Re: Fred Benson ORDER NO. 1344 File Docket: 03 -049 Date Decided: 9/20/04 Date Mailed: 10/1/04 1 Benson, as a Lenox Township Supervisor, did not violate Section 1103(a) of the Ethics Act in that he did not use township equipment on his personal property. 2. Benson unintentionally violated Section 1103(a) of the Ethics Act when he used township equipment to open graves at the West Lenox Cemetery and received fees which he retained. 3. Benson unintentionally violated Section 1104(d) of the Ethics Act when he failed to file SFI's for the calendar years 1999 through 2002. 4. Benson unintentionally violated Section 1105(b)(5) of the Ethics Act when he failed to disclose receipt in income in excess of $1,300.00 on his Statement of Financial Interests for the 1998 calendar year. 5. Benson did not violate Section 1105(b)(8) of the Ethics Act regarding the allegation that he failed to disclose his office or directorship in the WLCA, based upon an insufficiency of evidence. 6. Per the Consent Agreement of the parties, Benson is directed to pay $800 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the mailing of this order. If Benson has not already done so, he is directed within 30 days of the date of mailing of this order to fully and accurately complete and then file SFI's for the calendar years 1999 through 2002 with Lenox Township and copies with this Commission for compliance verification purposes. 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