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HomeMy WebLinkAbout1859, HenryPHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 In Re: George Henry, Respondent STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 File Docket: Order No. Date Decided: Date Mailed: 24-0182-C 1859 7/23/26 7/24/26 Before: Michael A. Schwartz, Chair David L. Reddecliff, Vice Chair Paul E. Parsells Robert P. Caruso Emilia McKee Vassallo Ronald N. Jumper, Jr. This is a final adjudication of the State Ethics Commission. FACSIMILE: 717-787-0806 WEBSITE: www.eLb1cs.pa gov Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et sue, 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 Findings in this Order are derived from the parties' Stipulation of Findings. The Consent Agreement has been approved. 1. ALLEGATIONS: That George Henry, a public official as a Supervisor for Frankstown Township, violated Sections 1103(a), 1104(d), 1105(b)(1), 1105(b)(5), 1105(b)(8), and 1105(b)(9) of the Ethics Act: (1) When he used the authority of his office to approve a developer's agreement with Frankstown Development, LLC when he had the understanding that his company, Henry Enterprises, Inc., would be completing work under the same developer's agreement, resulting in a financial gain to Henry Enterprises, Inc.; (2) When he filed deficient Statements of Financial Interests ("SFIs") for calendar years 2020 and 2022 by failing to: report his status as a current public official and candidate; list his paid position as roadmaster; list Frankstown Township as a source of income; acknowledge whether or not he holds an office, directorship, or employment in any business; and indicate whether he has a financial interest in any legal entity in business for profit; Hem, 24-0182-C Page 2 (3) When he filed deficient SFIs for calendar years 2023 and 2024 by failing to: list Frankstown Township as a source of income; acknowledge whether he holds an office, directorship, or employment in any business; and indicate whether he has a financial interest in any legal entity in business for profit; and (4) When he failed to file an SFI for calendar year 2021. 11. FINDINGS: George Henry Jr. ("Henry") has served as a Member of the Frankstown Township ("Township") Board of Supervisors ("Board") from January 4, 2010, through the present. a. Henry has held the office of Chairman of the Board for approximately fourteen years. b. During each of his years as a Supervisor, Henry was appointed as a Township roadmaster, for which he received compensation as a Township employee. 2. Henry owns and operates Henry Enterprises, Inc., which was incorporated with the state of Pennsylvania in 2001. a. Henry operates several companies under the umbrella of Henry Enterprises, Inc., including George's Lawncare, Yingling's Tree Service, Snowberger's Topsoil and Mulch, and Auss Irrigation. b. Henry's company does excavation and construction work as well. 3. The Township is governed by a three -Member Board. a. The Supervisors are compensated $2,500 yearly for their service as Supervisors. 4. Ordinance 100207-B was adopted by the Township in 2007 and is known as the "Frankstown Township Subdivision and Land Development Ordinance." 5. Ordinance 100207-B outlines the procedure for a subdivision or land development, which includes a preliminary procedure, fee schedule, preliminary plan application, and final plan application. a. The acceptance or rejection of the preliminary plan and the final plan is determined by the Board. Land developments and subdivision projects are required to provide financial security if they propose public improvements. aa. Public improvements are defined by Ordinance 100207-B as roads, sewers, drainage, water, etc. Henty, 24-0182-C Page 3 2. No final plan will be, approved unless the developer deposits financial security with the Township in the amount sufficient to cover the improvements required by the plans. 6. Section 602 of Ordinance 100207-B is titled "Financial Guarantee for Completion of Improvements." a. The financial security can be accepted by either an irrevocable letter of credit or an escrow account. 1. The irrevocable letter of credit is a letter provided by the developer from a federal or Commonwealth -chartered financial institution which is authorized to conduct business with the Commonwealth. 2. The escrow account requires a deposit of cash, either with the Township or in escrow with a federal or Commonwealth -chartered financial institution which is authorized to conduct business with the Commonwealth. 7. The Township engineer reviews and makes recommendations on plans as well as makes recommendations for the financial security for the final plan approval. 8. A developer's agreement is needed for subdivisions/land developments so that the Township has collateral in case the company decides to stop building the project. a. The developer's agreement contains a financial security requirement that must be posted prior to the start of the project. b. The agreement does not list the contractors being utilized by the developer. C. Work cannot take place at the site until the agreement is approved by the Board. 9. A vote of approval from the Board provides the developers with the go ahead to move forward with construction. 10. Deer Meadow Retirement Community ("Deer Meadow") is a fifty-five and over community made up of duplexes located within the Township. a. Deer Meadow's roads, drainage, and stormwater are privately owned while its water system was dedicated to Hollidaysburg Borough. 11. Deer Meadow is owned by Frankstown Development LLC ("Frankstown Development"). a. Frankstown Development is currently owned by Adam Conrad ("A. Conrad") and Jordan Conrad ("J. Conrad"), b. A, Conrad and J. Conrad purchased Frankstown Development on April 14, 2022. Henry, 24-0182-C Page 4 12. A. Conrad also owns Perry Wellington Realty ("Perry Wellington"), where J. Conrad works as the Construction Manager. 13. J. Conrad and A. Conrad started branching out into the construction business through Perry Wellington in 2020. a. J. Conrad and A. Conrad purchased properties at Old Town Village Development in 2020 and reached out to Henry for assistance with construction and excavation work. 1. Henry is a close family friend of J. Conrad and his wife. 14. The land development plans for Deer Meadow were originally approved in 2009 by the Township. a. The plans identified that the construction of Deer Meadow would be completed in five phases. 1. Financial security for Phase 1 was listed and approved in the vote to approve the plans. 2. Each additional phase would require its own financial security and vote prior to any work being approved. 15. Frankstown Development is the developer company and owns the property/ground for Deer Meadow while Perry Wellington is the builder for the development. a. Frankstown Development is responsible for putting in the infrastructure for the development. 16. Contractors are responsible for providing the services agreed upon with the developer, including excavating. a. Excavating includes digging the hole for the home, digging the utility lines, grading and seeding, etc. 17. At the June 2, 2009, Board meeting, a motion was made to accept the developer's agreement for Deer Meadow that was prepared by the Township Solicitor and the Township Engineer. a. The motion passed unanimously. 18. The developer's agreement from 2009 stated that the developer would be responsible for posting financial security prior to the commencement of construction for each phase. 19. The five phases of Deer Meadow were proposed to occur as follows: T-Yenry, 24-0182-C Page 5 a. Phase 1 was to begin April 2009 and include the construction of the water main from the treatment plant, the community center, and units 1-4, 51-52, and 55-60. b. Phase 2 was to begin in August 2009 and include the construction of units 43-50, 53-54, and 61-64. C. Phase 3 was to begin in December 2009 and include the construction of units 5-8, 17-18, and 35-42. d. Phase 4 was to begin in April 2010 and include the construction of units 65-90. c. Phase 5 was to begin in August 2010 and include the construction of units 9-12, 13- 16, and 19-34. 20. Construction of Phase 2 of Deer Meadow did not occur until 2012. a. On November 7, 2012, a developer's agreement for Phase 2 was passed by the Board. 1. Henry was a Member of the Board at this time. b. The developer's agreement included the financial security for Phase 2. 21. Construction of Phase 3 of Deer Meadow did not occur until 2018. a. On March 6, 2018, a developer's agreement for Phase 3 was passed by the Board. l . Henry was a Member of the Board at this time. 22. When J. Conrad and A. Conrad purchased Frankstown Development, Phases 1 and 2 of Deer Meadow were already completed. a. At the time of the ownership change, Phase 3 was nearly complete with a few portions that needed to be finished by J. Conrad and A. Conrad. b. Three homes from Phase 4 were already started when J. Conrad and A. Conrad purchased Frankstown Development due to there already having the necessary infrastructure as they lined tip with homes from Phase 3. 1. Hemy Enterprises, Inc. did the excavating work for these homes. 23. Two motions regarding Phases 4 and 5 of Deer Meadow were made at the September 6, 2022, Board meeting. a. The first motion was made by James Callahan ("Callahan") and seconded by Kenneth Wertz ("Wertz") to accept the land developer's plans as amended. Henry, 24-0182-C Page 6 The motion passed unanimously. 2. Henry was present at the meeting. b. The second motion was made by Callahan and seconded by Wertz to execute the developer's agreement subject to the developers signing the agreement and the developer posting the financial security required under the agreement. 1. The motion passed unanimously. C. Hemy voted in favor of both motions. 24. By the September 6, 2022, meeting, Henry had already started doing work at the Deer Meadow project for Frankstown Development on Phase 3. a. Three homes that were part of the Phase 4 construction were already started at this time as they had infrastructure from Phase 3. 25. At the November 1, 2022, Board meeting three motions were made regarding Deer Meadow. a. The first motion was made by Wertz and seconded by Callahan to rescind the previously approved developer's agreement for Phases 4 and 5. 1. The motion passed unanimously. 2. Henry was present at the meeting. b. The second motion was made by Wertz and seconded by Callahan to approve the developer's agreement for Phase 4, subject to the developer signing the agreement and supplying the financial security. 1. The motion passed unanimously. Q. The third motion was made by Callahan and seconded by Wertz to approve the developer's agreement for Phase 5, subject to the developer signing the agreement and supplying the financial security. 1. The motion passed unanimously. d. Henry voted in favor of all three motions. 26. Henry had made comments about wanting to get the developer's agreement approved so that he could begin work before the weather turned. a. Henry had a reasonable expectation that he would continue contractor services with Deer Meadow. Henry, 24-0182-C Page 7 27. At the March 7, 2023, Board meeting, a motion was made by Callahan and seconded by Henry to approve the developer's agreement as prepared by the Solicitor, Jeff Muriceak. a. Wertz was absent from this meeting. b. The developer's agreement was only for Phase 4 of Deer Meadow. C. The motion passed unanimously. THE FOLLOWING FINDINGS RELATE TO HOW HENRY ENTERPRISES, INC. FINANCIALLY BENEFITED FROM HENRY VOTING IN FAVOR OF THE DEER MEADOW PHASE 4 DEVELOPER'S AGREEMENT. 28. Henry performed contracting work at Deer Meadow for Phase 4 through his business, Henry Enterprises, Inc. a. Henry Enterprises, Inc, sent invoices to A. Conrad and J. Conrad for payment for services performed by Henry and his workers, b. When the payment was received at Henry Enterprises, Inc., the invoice was marked as paid with the appropriate pay date as shown below: Invoice Description Paid Date # Amount Date 314 Goss Dr. and 316 Goss Dr. Vents and plumbing 3/28/2023 36916 314 Goss Dr. and 316 Goss Dr. $5,600.00 4/20/2423 Gaslines 4/17/2023 37035 Landscaping Installation $2,955.00 2/3/2023 6/15/2023 37340 Deer Meadow- Draw for Phase 4Infrastructure $100,000.00 7/28/2023 Deer Meadow- Lily Pearl Dr. Main Electric at 123, 125, 126, 127, 128,129 Lily Pearl Dr. Installed cement base and light 126-128 Lily Pearl Dr. Extended 24' pipe frown house 126-128 Lily Pearl Dr. Installing castings for sewer 7/5/2023 37464 stacks in driveway $42,234.50 7/28/2023 Could not find old line and had to install new line over road Pond 42 Staging units 123-125 Lily Pearl Dr. 8hrs r@ $35.00 and 81rrs a $85,00 for excavator Hclwr , 24-0182-C Page 8 Deer Meadow 314-316 Moss Dr Digging, backfilling and grading Two sump pumps, two gas lines, landscaping and seeding, 7/5/2023 37463 move trailers, staging units, trim $23,379.42 7/28/2023 tree, back pads, electric, conduit, digging, all labor and materials, installing castings Deer Meadow- Draw for Phase 9/28/2023 37731 4 Infrastructure $75,000.00 9/29/2023 Deer Meadow Phase 4- Electric , Ponds Move dirt pile and build roads 11/6/2023 37957 Extra 2A limestone for roads $120,704.50 7/12/2024 Sewer crossovers change order Erosion 11/6/2023 37956 Deer Meadow Phase 4- Water lines with change order. $152,295,50 2/15/2024 509-511 Lykens Dr. Digging, backfill and grade Gas line Sump pump Landscaping and seeding 6/3/2024 38580 Window wells $16,383.62 7/12/2024 Labor for window wells Two hose bibs for each unit 4hrs labor for each unit Materials- 15.88 each unit 506-508 Lykens Dr. Digging, baekfill and grade Gas line Sump pump 6I3/2024 38478 Landscaping and seeding $16,205.10 7/12/2024 Window wells Labor for window wells One hose bib for each unit 2 brs labor for each unit 314 Goss Dr. Extra stone for basement- 26 ton, hauling and 30 per man hr. 6/3/2024 38172 124 Lily Pearl Dr. $4,395.00 7/12/2024 Extra stone for basement- 19 ton, hauling and 30 per man hr. Henry, 24-0182-C Page 9 508 Lykens Dr, Deer Meadow Footer and retaining wall with 7/18/2024 38709 rebar, 4500 psi concrete. All $12,878.50 7/19/2024 Iabor and material included. $572,031.14 C. Per the invoices marked as paid, Henry Enterprises, Inc. received $572,031.14 for work done at Deer Meadow after Henry's vote to approve Phase 4 of the developer's agreement in March 2023. 29. Henry Enterprises, Inc. maintains a business checking account at First Commonwealth Bank. a. Henry is the sole signatory on the account, 30. Payments from Frankstown Development to Henry Enterprises, Inc. were deposited into the business checking account for Henry Enterprises, Inc. by Henry after Frankstown Development received the invoices from Henry Enterprises, Inc. a. The following identifies the payments deposited into the same account. Check # From To Amount Memo 1123 Frankstown Development Company HenryEnter rises $165,613.92 Invoices 37340, 37464, 37463 1136 Frankstown Development Company Henty Enterprises $75,000.00 Invoice 37731 1170 Frankstown Development Company Henry Enterprises, Inc. $200,000.00 Phase 4 Infrastructure 1179 Frankstown Development Company HenryEnterprises $109,983.72 38172, 38478, 38580 37457 1640 ReMax Escrow Account HenryEnt7!d$563,476.14 $12,878.50 508 L kens Dr. b. The payments that were deposited to date are $8,555 less than what Frankstown Development owes to Henry Enterprises, Inc. based on the invoices. Invoice number 36916 totaled $5,600 and was marked as paid; however, the payment could not be located in the business checking account for Henry Enterprises, Inc. 2. Invoice number 37035 totaled $2,955 and was narked as paid; however, the payment could not be located in the business checking account for Henry Enterprises, Inc. 31, Henry does not plan any specific profit percentage into the work performed through his business but typically hopes to earn a profit. Henry, 24-0182-C Page 10 a. Henry Enterprises, Inc. realized a profit of approximately $48,000 as the result of work performed on Phase 4 of Deer Meadow. 32, On March 25, 2026, Henry provided a sworn statement to Commission Investigators during which he made, in part, the following statements; a. Henry completed/performed excavating services through his business for the Conrads prior to the Conrads' purchase of Deer Meadow; b. Henry performed excavating work through his business for the Conrads on Phase 3 of the Deer Meadow project; C. Henry had a reasonable expectation and hope that the Conrads would use hin-1/his business for Phase 4 of the Deer Meadow project; and d. Henry made a mistake when he voted in favor of the Phase 4 Developer's Agreement. 33. Henry's business, Henry Enterprises, Inc., received a total of approximately $563,476.14 for the work he completed at Deer Meadow when, in his capacity as a Township Supervisor, he voted in favor of the Deer Meadow developer's agreement for Phase 4 with the knowledge that his company would be completing work and being compensated for such work, resulting in a profit to Henry/his business of approximately $48,000. THE FOLLOWING FINDINGS RELATE TO HENRY'S FILING OF DEFICIENT STATEMENTS OF FINANCIAL INTERESTS FOR CALENDAR YEARS 2020, 2022, 2023, AND 2024 AS WELL AS HIS FAILURE TO FILE A STATEMENT OF FINANCIAL INTERESTS FORM FOR CALENDAR YEAR 2021. 34. Statement of Financial Interests ("SFI") filing requirements for public officials and public employees are mandated by Section It 04 of the Ethics Act. a. Section 1104(a) requires that SFIs be filed by May I annually. 35. SFI disclosure requirements for public officials and public employees are mandated by Section 1105 of the Ethics Act. a. SFIs must be filed on a form prescribed by the Commission. 1. SFI forms prescribed by the Commission for the past five calendar years have specified, in part, the following at the bottom in bold print: "THIS FORM IS CONSIDERED DEFICIENT IF ANY BLOCK ABOVE IS NOT COMPLETED. MAKE A COPY FOR YOUR RECORDS" HeI11y, 24-0182-C Page 11 b. Individuals signing SFIs do so under oath or equivalent affirmation subject to the penalties prescribed by 18 Pa. C.S. § 4904 (unsworn falsification to authorities) and 65 Pa.C.S. § 1109(b) (financial interests statement violation). 36. Heiuy was required to file SFIs for calendar years 2020, 2021, 2022, 2023, and 2024 in his capacity as a Member of the Board. 37. Henry had SFIs on file with the Township for calendar years 2020, 2022, 2023, and 2024. a. Henry's SFIs were obtained from the Township on September 15, 2025. 38. Henry failed to file an SFI with the Township for calendar year 2021. 39. Henry failed to complete and/or disclose required information on his 2020, 2022, 2023, and 2024 calendar year SFIs in his capacity as a Supervisor. 40. Henry failed to include the following required information on his SFI for calendar year 2020: a. Henry incorrectly disclosed his status. b. Henry failed to disclose his position of roadmaster. C. Henry failed to identify all direct or indirect sources of income. d. Henry failed to identify an address of any office, directorship, or employment in any business entity. C. Henry failed to identify an address for any financial interest in any legal entity in which he engaged in business for profit. 41. Henry failed to include the following required information on his SFI for calendar year 2022: a. Hemy incorrectly disclosed his status. b. Heiuy failed to disclose his position of roadmaster. C. Hemy failed to identify all direct or indirect sources of income. d. Henry failed to identify an address of any office, directorship, or employment in any business entity. e. Henry failed to identify an address for any financial interest in any legal entity in which he engaged in business for profit. Hen y, 24-0182-C Page 12 42. Henry failed to include the following required information on his SFI for calendar year 2023: a. Henry failed to disclose his position of roadmaster. b. Henry failed to identify all direct or indirect sources of income. C. Henry failed to identify an address of any office, directorship, or employment in any business entity. d. Henry failed to identify an address for any financial interest in any legal entity in which he engaged in business for profit. 43. Henry failed to include the following required information on his SFI for calendar year 2024: a. Henry failed to disclose his position of roadmaster. b. Henry failed to identify all direct or indirect sources of income. c. Henry failed to identify an address of any office, directorship, or employment in any business entity. d. Henry failed to identify an address for any financial interest in any legal entity in which he engaged in business for profit. III. DISCUSSION: As a Supervisor for Frankstown Township ("Township") from January 4, 2010, through. the present, George Henry ("Henry") has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et se___1c . The allegations in this matter are that Henry violated Sections 1103(a), 1104(d), I I05(b)(1), 1105(b)(5), 1105(b)(8), and 1105(b)(9) of the Ethics Act: (1) When he used the authority of his office to approve a developer's agreement with Frankstown Development, LLC when he had the understanding that his company, Henry Enterprises, Inc., would be completing work under the same developer's agreement, resulting in a financial gain to Hemy Enterprises, Inc.; (2) When he filed deficient Statements of Financial Interests ("SFIs") for calendar years 2020 and 2022 by failing to: report his status as a current public official and candidate; list his paid position as roadmaster; Iist the Township as a source of income; acknowledge whether or not he holds an office, directorship, or employment in any business; and indicate whether he has a financial interest in any legal entity in business for profit; Heimw, 24-0182-C Page 13 (3) When he filed deficient SFIs for calendar years 2023 and 2024 by failing to: list the Township as a source of income; acknowledge whether he holds an office, directorship, or employment in any business; and indicate whether he has a financial interest in any legal entity in business for profit; and (4) When lie failed to file an SFI for calendar year 2021. 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. "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. "Business with which lie is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. H, e?i�v, 24-0182-C Page 14 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 (financial) 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. Section 1104(a) of the Ethics Act provides that each public official/public employee must file an SFI for the preceding calendar year, each year that he holds the position and the year after he leaves it. Section 1104(d) of the Ethics Act provides that no public official shall be allowed to take the oath of office, or enter or continue upon his duties, nor shall he receive compensation from public fiends, unless he has filed an SFI as required by the Ethics Act. Section 1105(a) of the Ethics Act provides that the SFI shall be filed on the form prescribed by this Commission; that all information requested on the form shall be provided to the best of the knowledge, information and belief of the filer; and that the form shall be signed under oath or equivalent affirmation. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Section 1105(b)(1) of the Ethics Act requires the filer to disclose on the SFI his name, address, and public position. Subject to certain statutory exceptions, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any office, directorship or employment in any business entity. Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any financial interest in any legal entity engaged in business for profit. The term "financial interest" is defined in the Ethics Act as "[a]ny financial interest in a legal entity engaged in business for profit which comprises more than 5% of the equity of the business or more than 5% of the assets of the economic interest in indebtedness." 65 Pa.C,S. § 1102. As noted above, the parties submitted a Stipulation of Findings with their Consent Agreement, The Findings of this Commission set forth above are derived from the parties' Stipulation of Findings. We shall now summarize the relevant facts in this matter. The Township is governed by a three -Member Board of Supervisors ("Board"). Hemy has served as a Township Supervisor ("Supervisor") since January 4, 2010, and as Chairman of the Henry,_ 24-0182-C Page 15 Board for approximately fourteen years. The Supervisors are each compensated $2,500 yearly for their public service. In his private capacity, Henry owns and operates Henry Enterprises, Inc. Several companies operate under the umbrella of Henry Enterprises, Inc., including George's Lawncare, Yingling's Tree Service, Snowberger's Topsoil and Mulch, and Auss Irrigation. Henry Enterprises, Inc. also does excavation and construction work. Township Ordinance 100207-B outlines the procedures to be followed by developers that seek Township approval for subdivision and land development projects in the Township. As part of the procedures, a developer's agreement must be approved by the Board before the developer may begin construction work on the project. If the project proposes public improvements such as roads, sewers, drainage, and the like, the developer's agreement will contain a financial security requirement that must be met by the developer prior to the start of construction. Financial security in an amount sufficient to cover the public improvements is required so that the Township has collateral in case the developer decides to stop constructing the project. The financial security may be in the form of either an irrevocable letter of credit from a financial institution or a cash deposit in an escrow account with the Township or a financial institution. The Board's vote of approval of the developer's agreement provides the developer with the go ahead to move forward with construction. Deer Meadow Retirement Community ("Deer Meadow") is a fifty-five and over community of duplexes located within the Township. Deer Meadow is owned by Frankstown Development LLC ("Frankstown Development"), and its roads, drainage, and stormwater system are privately owned. The land development plans for Deer Meadow were originally approved by the Township in 2009. The land development plans provided that the construction of Deer Meadow would be completed in five Phases, with Phase 1 beginning in April 2009. Each Phase would require its own financial security and the Board's vote of approval of a developer's agreement prior to any work being performed on that Phase. Although Phase 2 was to begin in August 2009, a developer's agreement for Phase 2 was not approved by the Board until November 7, 2012. Construction of Phase 3 did not begin until a developer's agreement was approved by the Board in March 2019, Henry was a Member of the Board when the developer's agreements for Phases 2 and 3 were approved by the Board. Jordan Conrad ("J. Conrad") is the Construction Manager for Perry Wellington Realty ("Perry Wellington"), which is owned by Adam Conrad ("A. Conrad"). Henry is a close family friend of J. Conrad and his wife. When J. Conrad and A. Conrad purchased properties at Old Town Village Development in 2020, they reached out to Henry for assistance with construction and excavation work. On April 14, 2022, J. Conrad and A. Conrad purchased Frankstown Development. As the developer of Deer Meadow, Frankstown Development was responsible for building Deer Meadow's infrastructure, which required the services of contractors to do excavating work. At the time that the Conrads purchased Frankstown Development, Phases 1 and 2 of Deer Meadow had been completed and Phase 3 was nearly complete. Henry Enterprises, Inc. performed excavating work for Frankstown Development for three Phase 3 homes that were under construction when the Conrads purchased Frankstown Development. HenU, 24-0182-C Page 16 At the September 6, 2022, Board meeting, Henry participated in two unanimous Board votes that approved the acceptance of the land development plans as amended for Phases 4 and 5 of Deer Meadow and the execution of a developer's agreement with Frankstown Development subject to the developer signing the agreement and supplying the required financial security. At the November 1, 2022, Board meeting, Henry participated in three unanimous Board votes that: (1) rescinded the previously approved developer's agreement for Phases 4 and 5; (2) approved the developer's agreement with Frankstown Development for Phase 4 subject to the developer signing the agreement and supplying the required financial security; and (3) approved the developer's agreement with Frankstown Development for Phase 5 subject to the developer signing the agreement and supplying the required financial security. Henry had a reasonable expectation that he would continue providing contractor services for the Deer Meadow construction, and ]re made comments about wanting to get a developer's agreement approved so that he could begin work before the weather turned. At the March 7, 2023, Board meeting, Henry seconded a motion and voted to approve the developer's agreement with Frankstown Development for Phase 4. After Henry participated in the Board's vote to approve the developer's agreement for Phase 4 of Deer Meadow, he performed contracting work for Phase 4 through his business, Henry Enterprises, Inc, Between March 28, 2023, and July 18, 2024, Henry Enterprises, Inc. sent invoices totaling $572,031.14 to Frankstown Development for work that Henry Enterprises, Inc. performed for Phase 4. Henry Enterprises, Inc. realized a profit of approximately $48,000 as a result of the work that it performed on Phase 4, As a Supervisor, Henry is annually required to file an SFI with the Township by May 1 that contains information for the prior calendar year. Henry's SFIs for calendar years 2020 through 2024 were either delinquent or deficient. Henry failed to file an SFI with the Township for calendar year 2021. Henry failed to correctly disclose his status as a candidate or current public official on his SFIs for calendar years 2020 and 2022. Henry further failed to fully disclose all required information with regard to direct or indirect sources of income, any office, directorship or employment in any business entity, and any financial interest in any legal entity engaged in business for profit on his SFIs for calendar years 2020, 2022, 2023, and 2024. 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: 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 Hemy voted for the development agreement with Frankstown Development, LLC when he had the understanding that his business, Henry Enterprises, would Henry, 24-0182-C Page 17 receive work under this development agreement and therefore receive a financial benefit. b. That a violation of Section 1105(b)(1) of the Public Official and Employee Ethics Act, 65 Pa.C.S, § 1105(b)(1), occurred when Henry failed to list his status as a candidate or current public official on his Statements of Financial Interests for calendar years 2020 and 2022. c. That a violation of Sections 1105(b)(5), (8), and (9) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §§ 1105(b)(5), (8), and (9), occurred when Henry failed to disclose all direct or indirect sources of income totaling $1,300 or more, whether he holds any office, directorship or employment of any nature whatsoever in any business entity, and whether he holds any financial interest in any legal entity engaged in business for profit on his Statements of Financial Interests for calendar years 2020, 2022, 2023 and 2024. d. That a violation of Section 1105(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Henry failed to file a Statement of Financial Interests for calendar year 2021. 4. Henry agrees to make payment in the arnount of $48,000 in settlement of this matter payable to Frankstown Township, and forwarded to the Pennsylvania State Ethics Commission, witiiin thirty (30) days of the issuance of the final adjudication in this matter. Henry agrees to make payment in the amount of $1,250 in settlement of this matter payable to the Commonwealth of Pennsylvania, and forwarded to the Pennsylvania State Ethics Commission, within thirty (30) days of the issuance of the final adjudication in this matter. 6. Henry agrees to file complete and accurate amended Statements of Financial Interests with Frankstown Township, through the Pennsylvania State Ethics Commission, for calendar years 2020, 2022, 2023, and 2024, along with a complete and accurate Statement of Financial Interests for calendar year 2021, within thirty (30) days of the issuance of the final adjudication in this matter. 7. Henry agrees to not accept any reimbursement, compensation or other payment from Frankstown Township representing a full or partial reimbursement of the amount paid in settlement of this matter. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter and make no specific HegU, 24-0182-C Page 18 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 Henry's 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. Henry 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 8 above. b. Henry 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 1-3. In considering the Consent Agreement, we accept the recommendation of the parties for a finding of a violation of Section 1103(a) of the Ethics Act. It is clear that the elements of a conflict of interest, in this case a use of the authority of Hemy's office as a Supervisor for the private pecuniary (financial) benefit of a business with which Henry is associated, have been established. Henry Enterprises, Inc. is a business with which Henry is associated as its owner. Henry used the authority of his office as a Supervisor in matters pertaining to developer's agreements with Frankstown Development for Phase 4 of the construction of the Deer Meadow housing project when; (1) on September 6, 2022, he participated in unanimous Board votes that approved the acceptance of amended land development plans for Phases 4 and 5 and the execution of a developer's agreement; (2) on November 1, 2022, he participated in unanimous Board votes that rescinded the previously approved developer's agreement for Phases 4 and 5 and approved separate developer's agreements for Phases 4 and 5 subject to the developer meeting certain conditions; and (3) on March 7, 2023, he seconded a motion and voted to approve the developer's agreement for Phase 4. The Board's approval of the Phase 4 developer's agreement with Frankstown Development was necessary for construction work on Phase 4 to commence. At the time Henry voted on the matters pertaining to Phase 4, he had a reasonable expectation that Henry Enterprises, Inc., which had provided excavating services for the construction of three homes for Phase 3 of Deer Meadow, would continue providing contractor services for the Deer Meadow construction. Henry Enterprises, Inc. ultimately was used to perform contracting work for Phase 4, and it realized a profit of approximately $48,000 as a result of performing that work. With each element of a conflict of interest established, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Henry voted for a developer's agreement with Frankstown Development when he had the understanding that his business, Henry Henry, 24-0182-C Page 19 Enterprises, Inc., would receive work under this developer's agreement and therefore receive a financial benefit. Turning to the allegations regarding the deficiencies of Henry's SFIs for calendar years 2020, 2022, 2023, and 2024, we agree with the parties, and we hold that: (1) A violation of Section 1105(b)(1) of the Ethics Act, 65 Pa.C.S. § 1105(b)(1), occurred when Henry failed to list his status as a candidate or current public official on his SFIs for calendar years 2020 and 2022; and (2) A violation of Sections 1105(b)(5), (8), and (9) of the Ethics Act, 65 Pa.C.S. §§ I I05(b)(5), (8), and (9), occurred when Henry failed to disclose all direct or indirect sources of income totaling $1,300 or more, whether he holds any office, directorship or employment of any nature whatsoever in any business entity, and whether he holds any financial interest in any legal entity engaged in business for profit on his SFIs for calendar years 2020, 2022, 2023 and 2024. We shall next address the parties' recommendation for a finding that a violation of Section 1105(a) of the Ethics Act occurred when Henry failed to file an SFI for calendar year 2021. It is clear that a violation of the Ethics Act occurred as a result of Henry's failure to file the SFI; however, there are inconsistencies between the allegation set forth in the Investigative Complaint, the nature of the violation that occurred as established by the stipulated facts, and the recommendation of the parties. A violation for failure to file an SFI is ordinarily based on Section 1104(a) of the Ethics Act, which requires, in pertinent part, the filing of SFIs by public officials. Henry's failure to file an SFI for calendar year 2021 clearly would support a finding of a violation of Section 1104(a). However, the allegation as set forth in the Investigative Complaint is that Henry violated Section 1104(d) of the Ethics Act when he failed to file the SFI. Section 1104(d) in and of itself does not require the filing of an SFI; rather, Section 1104(d) prohibits a public official from receiving compensation from public funds unless he has filed the SFI. Accordingly, as a predicate to finding a violation of Section 1104(d), there must be not only an allegation that a public official failed to file an SFI but also an allegation that the public official received compensation from public funds at a time when he had not filed an SFI. Therefore, as the Investigative Complaint does not allege that Henry received compensation from public funds at a time when he had not filed the SFI for calendar year 2021, there would be no basis to find a violation of Section 1104(d). Although the Investigative Complaint alleges that Henry violated Section 1104(d) when he failed to file an SFI for calendar year 2021, the parties have chosen to resolve this allegation by recommending a finding of a violation of Section 1105(a) of the Ethics Act, which provides that the SFI shall be filed on the form prescribed by this Commission. Given the parties' intent to resolve this matter by the Consent Agreement and also that failing to file a required SFI would necessarily entail failing to file the SFI on the form prescribed by this Commission, in order to effectuate the intent of the parties we shall accept the parties' recommendation to depart from the Section 1104(d) allegation and instead find a violation of Section 1105(a). Accordingly, we hold Hein V, 24-0182-C Page 20 that a violation of Section 1 I05(a) of the Ethics Act, 65 Pa.C.S. § I I05(a), occurred when Henry failed to file an SFI for calendar year 2021. As our determination in this case is based upon the agreement of the parties, it should not be considered as precedent for other cases. As part of the Consent Agreement, Henry has agreed to make payment in the amount of $48,000 payable to Frankstown Township and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Henry has agreed to make payment in the amount of $1,250 payable the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Henry has further agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. Henry has additionally agreed to file complete and accurate amended SFIs for calendar years 2020, 2022, 2023, and 2024 and a complete and accurate SFI for calendar year 2021 with the Township, through this Commission, within thirty (30) days of the issuance of the final adjudication in this matter. We determine that the Consent Agreement submitted by the parties sets forth a proper disposition of this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. IV. CONCLUSIONS OF LAW: As a Supervisor for Frankstown Township ("Township") from January 4, 2010, through the present, George Henry ("Henry") has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et iM 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Henry voted for a developer's agreement with Frankstown Development, LLC when he had the understanding that his business, Henry Enterprises, Inc., would receive work under this developer's agreement and therefore receive a financial benefit. 3. A violation of Section 1105(b)(1) of the Ethics Act, 65 Pa.C.S. § 1105(b)(1), occurred when Hemy failed to list his status as a candidate or current public official on his Statements of Financial Interests for calendar years 2020 and 2022. 4. A violation of Sections 1105(b)(5), (8), and (9) of the Ethics Act, 65 Pa.C.S. §§ 1 I05(b)(5), (8), and (9), occurred when Henry failed to disclose all direct or indirect sources of income totaling $1,300 or more, whether he holds any office, directorship or employment of any nature whatsoever in any business entity, and whether he holds any financial interest in any legal entity engaged in business for profit on his Statements of Financial Interests for calendar years 2020, 2022, 2023 and 2024. A violation of Section 1105(a) of the Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Henry failed to file a Statement of Financial Interests for calendar year 2021. In Re: George Henry, File Docket: 24-0182-C Respondent Date Decided: 7/23/26 Date Mailed; 7/24/26 ORDER NO. 1859 A violation of Section 1103(a) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S, § 1103(a), occurred when George Henry ("Henry"), as a Supervisor for Frankstown Township, voted for a developer's agreement with Frankstown Development, LLC when he had the understanding that his business, Henry Enterprises, Inc., would receive work under this developer's agreement and therefore receive a financial benefit. 2, A violation of Section 1105(b)(1) of the Ethics Act, 65 Pa,C.S. § 1105(b)(1), occurred when Henry failed to list his status as a candidate or current public official on his Statements of Financial Interests for calendar years 2020 and 2022. A violation of Sections 1105(b)(5), (8), and (9) of the Ethics Act, 65 Pa.C.S. §§ 1105(b)(5), (8), and (9), occurred when Hemy failed to disclose all direct or indirect sources of income totaling $1,300 or more, whether he holds any office, directorship or employment of any nature whatsoever in any business entity, and whether lie holds any financial interest in any legal entity engaged in business for profit on his Statements of Financial Interests for calendar years 2020, 2022, 2023 and 2024. 4. A violation of Section 1105(a) of the Ethics Act, 65 Pa.C.S. § 1105(a), occurred when Henry failed to file a Statement of Financial Interests for calendar year 2021. 5. Per the Consent Agreement of the parties, Henry is directed to make payment in the amount of $48,000.00 payable to Frankstown Township and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30"') day after the mailing date of this Order. 6. Per the Consent Agreement of the parties, Henry is directed to make payment in the amount of $1,250.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30t11) day after the mailing date of this Order. 7. Henry is directed to not accept any reimbursement, compensation or other payment from Frankstown Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 8. To the extent he has not already done so, Henry is directed to file complete and accurate amended Statements of Financial Interests for calendar years 2020, 2022, 2023, and 2024 and a complete and accurate Statement of Financial Interests for calendar year 2021 with Frankstown Township, through the Pennsylvania State Ethics Commission, by no later than the thirtieth (30"') day after the mailing date of this Order. Heim , 24-01 s2-C Page 22 9. Compliance with paragraphs 5, 6, 7, and 8 of this Order will result in the closing of this case with no further action by this Commission. a, Non-compliance will result in the institution of an order enforcement action. B T C MMISSION, Michael A, Schwartz, Chair