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HomeMy WebLinkAbout1382 LapiIn Re: Morris Lapi 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 Nicholas A. Colafella 03 -034 Order No. 1382 12/12/05 12/23/05 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 allegations. 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 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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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. Lapi, 03 -034 Page 2 I. ALLEGATION: That Morris Lapi, a public official /public employee, in his capacity as the Food Services Director for the Lancaster County Career & Technology Center, violated Sections 1103(a), and 1104(a) provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § §1103(a), and 1104(a) when he used the authority of his office for a private pecuniary gain, including but not limited to utilizing equipment, employees, food supplies and the facilities of the CTC for catering events for which he was compensated; and when he retained funds received for the catering of those events for his personal use; and when he failed to file Statements of Financial Interests for the 2000 and 2001 calendar years by May 1 St of the respective filing years. II. FINDINGS: 1 Morris J. Lapi was employed as the Lancaster County Career and Technology Center (CTC) Food Service Director from July 1, 1997 through June 30, 2003. a. Lapi began employment with the CTC, then known as the Lancaster County Area Vocational - Technical School, on or about July 29, 1977 when appointed as a Food Trades Instructor. b. Lapi began employment as a Professional Employee with the Lancaster County Vocational - Technical School on May 30, 1980. 2. The CTC is an educational facility established by a joint agreement among sixteen Lancaster County school districts. a. The CTC provides vocational and technical education primarily to students in their senior year of high school. b. The CTC also maintains a large emphasis on adult education. 3. A Joint Operating Committee (JOC) consisting of two school board directors from each district directs the operation, administration, and management of the CTC. a. One director serves as the applicable district's regular member and one serves as alternate in the regular member's absence. b. Management of the CTC on a daily basis is the responsibility of the CTC Executive Director. 4. The CTC consists of three separate campuses located in Mount Joy, Pa; Brownstown, Pa; and Willow Street, Pa. a. Each campus houses two specific career areas /fields of study. b. Each campus also houses five separate cluster programs on a half -day basis for tenth and eleventh grade students with special needs who intend to enter a specific program during their senior year. 5. The CTC Culinary Arts Center is located at the Mount Joy Campus. a. Six separate programs exist within the Culinary Arts Center as follows: 1. Baking and Pastry Arts; 2. Culinary Arts /Chef; Lapi, 03 -034 Page 3 3. Hospitality /Dining Room; 4. Institutional Foods; and 5. Food Processing /Meat Cutting. b. As part of the educational curriculum, the CTC Culinary Arts Center participates in /operates the following: 1. Preparation of meals daily for the Office of Aging in Lancaster, Pa. 2. Preparation and serving of meals at the public restaurant located at the Mount Joy campus. 3. Operation of a retail store with meats, deli items, and baked goods. 4. Operation of a catering service for private and community - related activities. 6. Prior to renovations occurring at the Mount Joy campus of the CTC in approximately 1996/1997, a Food Service Program was provided at all three campus locations. a. The program was taught on a smaller scale than that taught since the culinary center has been operational. b. One instructor at each of the individual campuses taught all aspects of the program prior to the renovations. 7 On or about May 21, 1997 an announcement for the position of Food Service Director of the Culinary Arts Center at the CTC was posted. a. The position of Food Service Director did not exist prior to this time. b. The position was based out of the Mount Joy campus location. 8. Lapi was appointed to the CTC Culinary Arts Center Food Service Director position effective July 1, 1997. a. Lapi worked year round (based on a 220 day contract) in the position of Food Service Director. b. Lapi had access to all three campuses year round in the position. 9. Additional job functions performed by Lapi included the following: a. Ordering of food for the three cafeterias, three cluster programs, and the culinary program; b. Planning of all functions for all three campuses; c. Development and forwarding of function sheets to appropriate individuals; d. Invoicing of all functions held at Mt. Joy; e. Typing and forwarding of all contracts for outside functions; Lapi, 03 -034 Page 4 f. Coordination of York Technical Institute Contract with the CTC; and g. Overall organization of Office of Aging activities. 10. Lapi was responsible for placing orders for use in the classroom and cafeteria. a. Individual instructors and cafeteria managers determined specific foods and quantities to be ordered and provided that information to Lapi. b. Food orders from various vendors regarding classroom consumables were placed once per week while food orders for the campus cafeterias were placed once per month. 11. Orders placed for consumables utilized for classroom instruction, the restaurant, the retail outlet, and catering were incorporated into general orders. a. Specific breakdowns regarding consumables utilized for specific purposes (i.e. catering) were not calculated. 12. Prior to renovations occurring at the three campuses of the CTC and the creation of the culinary center at the Mt. Joy campus in 1996 or 1997, catering services provided were done on a limited basis. a. Catering which occurred was primarily "in- house" for school related functions. b. The food service instructor at each campus organized food service events at his /her respective campus. 13. After the creation of the culinary center in 1996/1997, the operation of the catering service through the CTC was promoted due to the culinary program not providing enough activity for the students enrolled. a. Catering services were conducted for the following purposes: 1. To provide student education via "hands -on" experience; 2. To provide an outlet for which classroom product could be utilized; and 3. To provide a means by which revenue could be generated for the culinary program and the CTC as a whole. 14. As the Food Service Director, Lapi was encouraged by CTC administrators to locate outlets for classroom product. a. This included the catering service. b. Instructors were also encouraged to participate in community activity services. 1. CTC administrators believed the revenue from catering would benefit the overall budget of the culinary center. 15. Lapi maintained the authority to determine if and when specific events would be catered by the CTC. Lapi, 03 -034 Page 5 a. Lapi's decisions were occasionally over - ridden by various CTC administrators. 16. Prospective clients for catering services typically contacted CTC employees Jamie Collier or Joy Diffenderfer via telephone in Lapi's office. a. Collier and Diffenderfer held the position of front -of- the -House Aide between 1999 and 2002. b. Collier or Diffenderfer obtained applicable information such as food preferences, event date, event time, etc. c. Lapi performed this activity prior to having an assistant /secretary. 17. In her position as Front -of- the -House Aide, Collier's responsibilities included, among others, invoicing and billing of any functions (in -house or off -site) catered by CTC students. a. Collier was also responsible for organizing student labor for catered events. 18. Responsibility for invoicing and billing of CTC catered events passed on to Joy Diffenderfer after Collier was named Dining Room Instructor at the start of the 2000- 2001 school year. a. Diffenderfer was initially hired on a part -time basis as Lapi's secretary. b. Diffenderfer's position was made full time approximately eight months after her initial hire date. c. Diffenderfer was not responsible for invoicing or billing when she initially began with the CTC. 1. Lapi performed these functions until Diffenderfer grew into the position. 19. Once catered event information was finalized, Lapi presented the possibility of performing the catering to the CTC instructors at weekly meetings. a. Although Lapi presented the service to the instructors for discussion, Lapi made the final determination on whether or not to complete the events. 1. Lapi questioned instructors regarding who was available to work the event. 2. Lapi was not required to present the events to any CTC administrator for any type of approval prior to scheduling or performing the events. 3. Lapi was not required to provide reports detailing events catered to any CTC administrator after the events were completed. b. At the weekly meeting immediately prior to the event, Lapi informed the instructors of the number of student workers necessary for the event. 20. Once Lapi made the determination to provide catering services, a function sheet was created by Collier or Diffenderfer. a. Function sheets documented the event date and time, event name, contact Lapi, 03 -034 Page 6 information, number of guests, menu, special requests, etc. b. Function sheets were provided to the instructors whose classes would be preparing product for the event. 21. Collier or Lapi completed the organization of student laborers for the events. a. When completed by Collier, Collier advertised the need for staffing at upcoming events by writing the event name, date, and number of students needed on a dry erase board located in the culinary classroom. 1. Students then informed Collier if they wished to work the events. b. When completed by Lapi, Lapi informed instructors on the number of student laborers needed and asked the instructors to obtain the required laborers. 22. Students were not required to work events past normal school hours as part of the culinary curriculum. a. Students could be required to work events during regular school hours as part of the educational curriculum. 23. Instructors and /or students providing services at the events were compensated by the CTC at an hourly rate for any time worked past 3:OOpm. a. Timesheets were utilized to account for hours worked by students and instructors. b. Timesheets were submitted to the CTC business office for processing. c. Students and instructors were issued CTC payroll checks with applicable taxes withheld regarding payment for services rendered. 24. Invoices for catered events were normally completed by Collier or Diffenderfer and provided to the client contact individual the night of the event or mailed to the client contact individual after the event. a. Invoices created were based on the function sheet associated with the event. 25. The standard invoice utilized by the CTC was a carbon -copy triplicate form composed of white, yellow, and pink copies. a. The white copy was provided to the client. b. The yellow copy was provided to Linda Gainer, CTC Financial Officer. c. The pink copy was maintained in the Food Services Director's office. 26. Once the client received the invoice, the client sent payment to the CTC matching the amount listed on the invoice. a. Payment for services performed included the cost of food and related supplies, equipment rented (if any), and a variable percentage mark -up. 1. Lapi was responsible for determining the percentage mark -up to be applied. Lapi, 03 -034 Page 7 2. Lapi based his determination of the mark -up percentage on the size and cost of the event. b. Payment was received at the CTC business office and processed by Gainer. c. Payment was typically made via check. d. Payment for catering services rendered was deposited into the culinary center's activity account from which consumables including classroom supplies, catering supplies, etc. were purchased. (The following findings relate to the allegation that Lapi used his position to cater events for which he was compensated) 27. Landis Valley Museum (LVM) is a living history museum that collects, conserves, exhibits, and interprets Pennsylvania German material, culture, and heritage. a. The LVM is administered by the Pennsylvania Historical and Museum Commission (PHMC). 28. The Landis Valley Associates (LVA) is a support arm of the LVM. a. The LVA is composed of a Board of Directors, employees, and volunteer members that supplement the work of the museum staff. 1. The Board of Directors has no governing authority over the museum. b. Responsibilities of LVA members include the organization of fundraising events to benefit the museum. 29. Since 1999 at least five major events known as Institute, Civil War Village, Harvest Days, Pumpkin Patch, and Days of the Belsnickel have been sponsored by the LVA at the museum for which food service was needed. a. Institute is a five -day event held annually in June. b. Civil War Village is a two -day event held annually in July. c. Harvest Days is a two -day event held annually in early October. d. Pumpkin Patch is a two -day event held annually in late October. e. Days of the Belsnickel is held annually in December. 1. The length of the Belsnickel event has varied in recent years. 30. Lapi became involved in the LVA events in the early 1990's as a result of a request from Bob Johnson, then President of the LVA Board of Directors. a. Johnson requested Lapi's assistance as a result of the LVA losing money regarding food service at the Institute event. b. Lapi subsequently provided food service for the June Institute event held in or about 1991 which resulted in the LVA making money on food served. 31. As a result of Lapi's involvement and success with food service at the Institute event, Johnson requested that Lapi serve as an LVA board member and take over Lapi, 03 -034 Page 8 food service associated with the events. a. Lapi served one three -year term as an LVA board member from February 1992 through December 1994. 32. Lapi routinely served on the LVA Food Service Committee during his tenure on the LVA board. a. Lapi continued to serve on the Food Service Committee after his term on the board had expired. b. Service on LVA committees did not require service as a member of the board of directors. 33. In the early and mid 1990's (prior to the establishment of the culinary center), Lapi routinely performed food service /catering for LVA events held during both the regular school year and the summer months. a. LVA events were the only events catered off site by Lapi prior to the establishment of the culinary center in 1996/1997. b. Lapi continued to provide catering services to the LVA through the CTC after the establishment of the culinary center. 34. Scheduling and organization of events to be catered for the LVA followed established CTC guidelines with the following exceptions: a. Lapi personally handled all contact with LVA representatives (typically the LVA event coordinator) regarding scheduling, menus, etc. 1. Lapi met and /or spoke with LVA representatives via the telephone regarding upcoming events at his CTC office for events held during the school year and the summer. b. Function sheets generated by Lapi for LVA events did not detail event prices. 1. Event prices were not documented because Lapi did not purchase all the supplies needed for the event prior to the event due to unknown variables (weather, number of attendees, etc.). c. Actual CTC invoices were not provided to the LVA regarding event costs. 1. Lapi submitted a food list of all food and related supplies utilized at the event with a total event price to the LVA. d. Instructors and students utilized as labor for LVA catered events received payment in cash from Lapi after each day's service or after each event. 1. The established policy for payment was for the laborers to complete time sheets and be paid an hourly rate. e. Payment to the CTC by the LVA for services rendered was not completed in the manner established for all other catered events. 1. Lapi received payment in his name directly from the LVA for events catered over the summer months. Lapi, 03 -034 Page 9 2. Beginning in 1998, Lapi received payment in his name directly from the LVA for events catered both during the school year and the summer months. 3. The standard procedure was for the CTC to invoice the client with payment being made to the CTC. THE FOLLOWING FINDINGS RELATE TO LAPI'S PARTICIPATION IN CATERING LVA SUMMER EVENTS THROUGH THE CTC 35. Prior to 1998, the only summer event catered by Lapi for the LVA through the CTC was the annual Institute event. a. Beginning in July 1998, Lapi began providing catering services for the LVA Civil War event. 1. The Civil War event was first held in July 1998. 36. The majority of items served during the summer events were prepared at Lapi's direction on site at the LVM. a. Planning and scheduling of the Institute and Civil War events often occurred prior to the end of the regular school year. 37. Lapi provided lists of food to the bakery instructor to be prepared and frozen for LVA summer events prior to the end of the regular school year. a. Bakery items such as pies, cakes, danishes, etc. were prepared in advance by bakery students and frozen until the date of the event. 1. The specific amount of time utilized by the bakery instructor and bakery students in producing the requested food could not be determined. b. During the last two Institute events catered by Lapi (2001 and 2002), soup was prepared in advance. 1. The specific amount of time utilized in preparing the soup could not be determined. 38. Lapi ordered food supplies for summer events from various food distributors at which the LVA held accounts. a. The accounts were initially in Lapi's name. 1. Lapi switched the accounts into the LVA's name in approximately 1998. b. Additional CTC food supply inventory utilized by Lapi at CTC summer events could not be determined. 1. Additional CTC food supply utilized by Lapi at CTC summer events is believed to be minimal. 39. Food and related supplies ordered for LVA events were stored at various CTC campus cafeteria facilities. Lapi, 03 -034 Page 10 a. Any required preparation of food took place approximately one complete day prior to the event. b. CTC equipment utilized for the summer events primarily consisted of refrigerators, hand utensils, pots, pans, dishwashers, etc. c. Transportation of the food and supplies to the LVM was accomplished via CTC vans and /or Lapi's personal truck. 40. Lapi did not order all of the anticipated supplies needed prior to the start of the summer events. a. Lapi bought only a portion of the total amount expected because several intangibles such as weather and attendance affected the amount of food needed at the events. b. If available supplies were running low, Lapi often traveled to local grocery or convenience stores and obtained additional items to supplement the available stock. 41. Lapi routinely paid for the supplemental supplies in cash or via debit card from a personal account (account number 37- 898 -4) at Ephrata National Bank. a. Account number 37 -898 -4 is titled "House Account," and is a personal account for which Lapi has signature authority. b. Lapi's "House Account" was the only account utilized regarding purchasing supplies for LVA events. 42. Upon completion of each event, Lapi generated an invoice noting the cost of the event to the LVA. a. The invoice documented the event name, event date, and the total cost of supplies utilized (those ordered in advance and obtained during the event). 1. No itemized breakdown of event costs regarding food, supplies, equipment rental, etc. was documented on the invoice. b. The invoice was generated from receipts of all supplies purchased for the event and labor fees for individuals working the event for Lapi. 43. No receipts were submitted to LVA representatives documenting the cost of supplies and equipment for the catered events. 44. Upon completion of the invoice, Lapi presented the invoice for payment to Judy Weese, LVA Associates Manager at that time. a. Lapi normally presented the invoice to Weese in person or via fax. 45. Once received by the LVA, a payment request was developed for approval to pay the invoice. a. Available payment requests note Lapi's name in the "Please Pay To" section. 46. Weese requested that Lapi submit a detailed, itemized invoice regarding events costs. Lapi, 03 -034 Page 11 a. Lapi eventually supplied Weese with an invoice for each event listing itemized costs for food, supplies, and equipment rented. b. Lapi's invoices to the LVA did not include receipts to Weese to support the invoice provided. 47. LVA staff members and various LVA volunteers provided support for activities occurring at the event, including food service activities. a. In addition to LVA staff and volunteers working at the summer events, Lapi organized individuals associated with the CTC to assist with food service at the events. 48. Lapi did not utilize the services of student laborers for events catered during the summer months. a. The CTC does not hold culinary center classes during the summer months. b. Students were not available for Lapi to utilize as laborers. 49. From June 1998 through June 2002, Lapi enlisted the services of various CTC instructors, employees, and other individuals as laborers for summer events as shown below: a. Connie Hatton: CTC Cafeteria Manager- Brownstown campus. b. Don King: Culinary Arts Instructor - Willow Street campus. c. Amanda Hatton (daughter of Connie Hatton). 50. Lapi established the wages for individuals assisting with food service at the summer events. a. Lapi paid the individuals in cash after the event. b. Lapi maintained no records or documentation regarding the amounts of wages paid. 51. The CTC administration was generally aware of Lapi performing food service for the LVA during the summer months. a. CTC administration did not know specifics regarding Lapi's food service for the LVA during the summer months. b. CTC administrators were unaware that the CTC was not receiving payment for food service at LVA summer events. 52. Food service provided during the summer months for the LVA through the CTC was beyond the scope intended for the catering program. a. No culinary students were present at the CTC during the summer months to gain "hands -on" experience. b. No culinary classes were taught during the summer months necessitating an outlet for classroom product. Event LVA Check # LVA Check Date LVA Check Amount Payable To Deposit Date Deposit Amount Cash Out Amount 06 -19 -98 244 $90.67 Lancaster Co. Farms 06 -19 -98 245 363.80 Kegel Institute 9018 06 -18 -98 $6,452.50 Lapi 06 -19 -98 $4,600.00 $2,017.63* Civil War 9134 07 -18 -98 2,783.28 Lapi 07 -21 -98 2,600.00 183.28 Institute 10419 06 -17 -99 6,219.20 Lapi 06 -18 -99 4,000.00 2,319.20* Civil War 10571 07 -27 -99 3,170.31 Lapi 07 -28 -99 2,200.00 970.31 Institute 11938 06 -15 -00 5,671.15 Lapi 06 -16 -00 3,121.15 2,550.00 Civil War 12165 07 -25 -00 2,712.93 Lapi 07 -26 -00 2,712.93 0.00 Institute 13686 06 -22 -01 5,343.73 Lapi 06 -22 -01 3,500.00 1,963.89* Civil War 13882 07 -25 -01 3,282.29 Lapi 07 -27 -01 3,300.00 167.29* Institute 15315 06 -20 -02 5,673.26 Lapi 06 -21 -02 4,000.00 1,673.26 Total $41,308.65 $30,034.08 $11,844.86 Check Date Check Number Amount Payee 06 -19 -98 244 $90.67 Lancaster Co. Farms 06 -19 -98 245 363.80 Kegel 06 -19 -98 246 1001.02 Sysco 06 -19 -98 247 106.42 Oregon Dairy farm Mkt. 06 -24 -98 248 76.38 Weaver Market 06 -24 -98 249 50.14 Weaver Markets 06 -24 -98 250 101.50 J & E Rental Total $1789.93 Check Date Check Number Amount Payee 07 -16 -98 253 $135.63 Costco Wholesale 07 -20 -98 254 355.00 Turkey Hill Lapi, 03 -034 Page 12 c. No revenue from the events was submitted to the CTC to be utilized by the culinary program. 53. From June 1998 through June 2002, Lapi provided food service for nine LVA summer events for which he was issued payment from the LVA totaling $41,308.65 as shown below: *= Additional checks not related to the LVA events were included in these deposits. a. All deposits were made into Lapi's "House Account" at Ephrata National Bank. b. Lapi's signature is present endorsing all of the checks issued as payment. c. The $41,308.65 figure paid to Lapi is representative of all expenses incurred by Lapi in association with food service provided for Institute and Civil War events from June 1998 through June 2002. d. Lapi picked up checks issued as payment in person. 54. Lapi issued forty -two cancelled checks from his personal "House Account" totaling $12,521.48 for his expenses associated with the purchase of supplies for LVA summer events as shown below: 1998 LV Institute (June 15 -June 19) 1998 Civil War Village (July 18 -July 19) Check Date Check Number Amount Payee 07 -20 -98 256 600.78 Sysco 07 -18 -99 279 $160.00 T. L. Brossman 07 -27 -99 280 374.25 Oregon Dairy 07 -27 -99 281 509.96 John F. Martin 07 -27 -99 282 48.42 Butter Krust Baking Co. 07 -27 -99 283 $580.26 U S Foods 07 -27 -99 284 278.60 Turkey Hill 07 -27 -99 285 327.00 J & E Rental 08 -10 -99 287 127.90 Kegel's Produce Total $2406.39 Check Date Check Number Amount Payee 07 -20 -98 256 600.78 Sysco 06 -18 -99 272 $58.55 Weavers 06 -18 -99 273 139.22 Oregon Dairy 06 -18 -99 274 108.31 J & E Rentals 06 -18 -99 275 670.45 Kegels 06 -18 -99 276 99.00 Mount Joy CTC Total $1075.53 Check Date Check Number Amount Payee 07 -20 -98 256 600.78 Sysco 06 -08 -00 296 $180.95 Mount Joy Campus 06 -16 -00 298 143.83 Oregon Dairy 06 -27 -00 299 908.80 Sysco 06 -28 -00 300 52.81 Weaver Market Total $1286.39 Check Date Check Number Amount Payee 07 -20 -98 256 600.78 Sysco 07 -21 -00 301 $100.00 Kegel's 07 -24 -00 302 94.02 Weavers Market 07 -25 -00 303 563.31 Sysco 07 -25 -00 304 350.72 John F. Martin Total $1108.05 07 -20 -98 255 126.78 ButterKrust Baking Co. 07 -20 -98 256 600.78 Sysco 07 -20 -98 257 952.00 Oregon Dairy Total $2170.19 Lapi, 03 -034 Page 13 1999 LV Institute (June 14 -June 18) 1999 Civil War Village (July 24 -July 25) 2000 LV Institute (June 12 -June 16) 2000 Civil War Village (July 22 -July 23) 2001 LV Institute (June 18 -June 22) Check Date Check Number Amount Payee Year Event Don King Connie Hatton Amanda Hatton 1998 Institute $500.00 $600.00 $100.00 1998 Civil War 75.00 Did Not Work Did Not Work 1999 Institute 500.00 600.00 100.00 1999 Civil War 75.00 50.00 Did Not Work 2000 Institute 750.00 600.00 100.00 2000 Civil War 75.00 Did Not Work Did Not Work 2001 Institute 750.00 600.00 200.00 2001 Civil War 250.00 Did Not Work Did Not Work 2002 Institute 750.00 600.00 200.00 Total $3725.00 $3,050.00 $700.00 Check Date Check Number Amount Payee 07 -01 -01 313 60.50 Kegel's Produce, Inc. 07 -24 -01 314 $87.30 Butter Krust 07 -24 -01 315 384.40 John F. Martin 07 -24 -01 316 377.40 Oregon Dairy 07 -23 -01 317 194.00 Ace Rental 07 -24 -01 318 126.00 Turkey Hill 07 -23 -01 319 635.10 Sysco 07 -23 -01 320 100.00 Kegel Produce Total $1904.20 Check Date Check Number Amount Payee 07 -01 -01 313 60.50 Kegel's Produce, Inc. None None $0.00 NA Total $0.00 07 -01 -01 312 $720.30 Sysco 07 -01 -01 313 60.50 Kegel's Produce, Inc. Total $780.800 Lapi, 03 -034 Page 14 2001 Civil War Village (July 21 -July 22) 2002 LV Institute (June 18 -June 21) a. Lapi issued personal checks to the various businesses after receiving the invoices for orders made. 55. Lapi incurred additional expenses in the approximate amount of $7,475.00 as a result of wages paid to instructors, CTC associates, and other individuals for labor provided as shown below: a. King verified the approximate amounts paid for his labor at the events. b. Connie Hatton verified the events worked but could not recall specific amounts paid per event. 1. Hatton recalled receiving a maximum of $600.00 for various Institute events and $50.00 for one Civil War event. Lapi, 03 -034 Page 15 c. Amanda Hatton received $200.00 for the 2001 and 2002 Institute event and received a maximum of $100.00 for previous Institute events. 56. Lapi asserted to investigators for the State Ethics Commission that he received approximately $500.00 to $600.00 personally per event for his participation at the five Institute events held from 1998 through 2002. a. Based on Lapi's assertion he received approximately $2,750.00 over the five -year period (Average $550.00 x 5 = $2,750.00). 57. In interviews with Commission representatives on January 15, 2004, and April 30, 2004; and through documents provided by Lapi, Lapi claimed the following: a. Additional purchases of food and related supplies were made by Lapi via cash or debit card during LVA summer events which account for the majority of the unaccounted for funds. 1. Documentation provided noted only handwritten total supply expenses with no supporting receipts b. Labor fees associated with the summer events from June 1998 through June 2002 totaled $12,525.00 including payment received by Lapi. 1. Documents provided by Lapi noted in handwriting individuals who worked and an amount paid with no supporting documentation. 58. Lapi's house account confirms debits /withdrawals during the time periods of the summer events totaling $718.78. 59. Of the $41,308.65 issued to Lapi from the LVA as payment for services rendered, $20,715.26 ($12,521.48 in supplies and $7,475.00 in labor fees and $718.78 in debits) can be documented or verified as expenses incurred. a. A balance of $20,593.39 remains unaccounted for regarding payment issued to Lapi for LVA summer events. b. None of the remaining $20,593.39 was paid by Lapi to the CTC for use of school facilities. 60. Lapi's use of the authority of his public position included scheduling, planning, and organizing food service for LVA summer events during the course of the regular CTC school year and during his hours as a CTC employee. a. Lapi routinely met with or spoke via the telephone with LVA representatives in his Mt. Joy office during the regular school year. b. Lapi utilized CTC instructors and students to prepare product for summer events during the regular school year. c. Lapi utilized CTC facilities, equipment, and tools to facilitate the food service provided for the summer events. 61. Lapi realized a minimum private pecuniary gain of $13,000.00 as a result of providing food service at LVA summer events through his position as Food Service Director of the CTC. a. The financial gain calculated does not include Lapi's use of CTC facilities, Lapi, 03 -034 Page 16 equipment, tools, etc., as a private pecuniary gain could not be determined. The Following Findings Relate to Lapi's Participation in Catering LVA Events During the Regular School Year 62. Lapi began providing food service at various events held at the LVM during the regular school year from 1998 through 2002. a. The expanded catering services came as a result of Lapi's success with the summer events. a. Lapi provided food service for the Harvest Days, Pumpkin Patch, and Days of the Belsnickel events. 63. Items served at events held during the school year were prepared both on -site at the LVM and in advance at CTC facilities. a. The majority of items served at Harvest Days and Pumpkin Patch were prepared on -site with only minimal items prepared in advance at the CTC. b. Items served at the Days of the Belsnickel event, especially items for the formal evening dinner event, were prepared at CTC facilities and transported to the LVM for service 1. Days of the Belsnickel was the only LVA event involving a formal, sit - down dinner served to the guests. 64. Lapi ordered food for the events held during the school year from various food distributors at which the CTC held accounts. a. Orders placed for items to be served at LVA events held during the school year were included with overall orders for classroom product. 65. Lapi did not order all of the anticipated supplies needed prior to the start of the events held during the school year. a. Lapi bought only a portion of the total amount expected because several intangibles such as weather, attendance, etc. affected the amount of food needed at the events. b. Lapi routinely took inventory of supplies remaining at various times during the course of the event. 1. If available supplies were running low, Lapi often traveled to local grocery or convenience stores and obtained additional items to supplement the available stock. 66. Lapi routinely paid for the supplemental supplies in cash or via debt card from his personal account (account number 37- 898 -4) at Ephrata National Bank. a. Account number 37 -898 -4 is titled "House Account." b. Lapi's "House Account" was the only account utilized regarding the purchase of supplies for LVA events. 67. Upon completion of each event, Lapi generated an invoice noting the cost of the event to the LVA. Lapi, 03 -034 Page 17 a. The invoice documented the event name, event date, and the total cost of supplies utilized (those ordered in advance and obtained during the event). 1. No itemized breakdown of event costs regarding food, supplies, equipment rental, etc. was documented on the invoice. b. The invoice was generated from receipts of all supplies purchased for the event. c. Also incorporated into the event cost were labor fees for individuals working the event for Lapi. 68. Upon completion of the invoice, Lapi presented the invoice for payment to Judy Weese, LVA Associates Manager at that time. a. Lapi normally presented the invoice to Weese in person or via fax. b. No receipts were submitted to Weese to document the cost of supplies and equipment for the catered events. 69. Prior to the Harvest Days event in 1998, payment for services rendered through the CTC for events held during the school year were processed through the CTC. a. Checks issued as payment were made payable directly to the CTC. b. Lapi received separate checks from the LVA reimbursing his personal expenses. 1. Lapi submitted handwritten notes to the LVA requesting reimbursement for his personal expenses. 2. Lapi did not provide any receipts or documents to confirm expenses. 70. After the fall 1998 Harvest Days event, Lapi began requesting the payments for the event's food costs be payable to him rather than the CTC. a. At the bottom of the food cost listing was documented, "Make check payable to Morris Lapi." 71. Weese questioned Lapi on the change in the established payment procedure. 72. Weese presented the change in the established payment method to then LVM Director Connie Stuckert for approval. 73. Once Lapi obtained the checks from the LVA, Lapi deposited the checks from the LVA into his personal "House Account ". a. Occasionally checks were deposited with additional personal checks. b. Lapi occasionally did not deposit the entire amount but took a portion as cash. c. Lapi obtained cashier's checks from Ephrata National Bank or issued checks from his personal "House Account" payable to the CTC for services provided. Lapi, 03 -034 Page 18 74. Lapi did not issue payments to the CTC in the entire amounts of the checks provided to him by the LVA. a. Lapi provided the CTC with only a portion of the total check amount. b. Lapi maintained possession over the remaining funds for distribution to himself and various CTC instructors, and /or students assisting with food service at the events. 1. Instances where Lapi did not deposit the entire check but took cash out are representative of instances when Lapi did not have enough cash on -hand to pay those individuals providing services. c. CTC administrators were not aware that all funds paid by the LVA for events catered during the school year were not submitted to the CTC by Lapi. 75. Lapi would create two separate invoices for events catered during the school year. a. Lapi created one invoice for submission to the Business Office of the CTC and a second invoice (a.k.a. food listing) for submission to the LVA. b. Invoices submitted to the Business Office document event costs consistently lower than event costs on invoices submitted to the LVA resulted in Lapi being able to make the lower payments to the CTC. 76. Lapi was able to submit different charges on the invoices as a result of him altering individual unit prices on the invoices. a. Various items on LVA invoices were documented at higher individual unit prices than those listed on CTC invoices. b. Lapi was the individual who determined the prices for individual items as listed on the invoices. 77. From June 1998 through June 2002, Lapi provided food service for twelve LVA events during the school year for which he was issued payment from the LVA totaling $54,160.78 and subsequently issued payments to the CTC as itemized below: Event LVA Check # LVA Check Date LVA Check Amount Payable to Deposit Date Lapi's Payment to CTC Check Issued By Lapi Difference to Lapi Cash Out Amount Harvest 9435 10 -13- $7,426.72 Lapi 10 -14- $5,958.57 106561* $1,468.15 $363.13 ** 98 98 Pumpkin 9504 10 -28- 1,704.35 Lapi 10 -29- 1,050.77 106583* 653.58 148.58 98 98 Belsnickel 9695 12 -10- 4,138.74 Lapi 12 -11- 2,697.77 263 1,440.97 941.00 98 98 Harvest 10929 10 -13- 6,331.25 Lapi No 5,475.70 110339* 855.55 847.55 99 Deposit Pumpkin 10995 10 -26- 1,852.89 Lapi 10 -28- 1,077.50 289 775.39 0.00 99 99 Belsnickel 11185 12 -08- 4,595.81 Lapi 12 -09- 3,015.91 290 1,579.90 1,000.70 ** 99 99 Harvest 12487 10 -11- 6,696.86 Lapi 10 -12- 5,745.53 306 951.33 396.86 00 00 Pumpkin 12573 10 -24- 1,957.37 Lapi 10 -25- 1,518.44 307 438.93 0.00 00 00 Belsnickel 12818 12 -07- 6,184.03 Lapi 12 -08- 4,224.64 309 1,959.39 884.03 00 00 Harvest 14145 10 -10- 6,382.53 Lapi 10 -12- 4,842.84 326 1,539.69 0.00 01 01 Pumpkin 14229 10 -23- 2,770.23 Lapi 10 -25- 1,241.77 328 1,528.46 0.00 01 01 Belsnickel 14489 12 -11- 4,120.00 Lapi 12 -14- 3,020.00 331 1,100.00 0.00 01 01 Total $54,160.78 $39,869.44 $14,291.341.34 [sic] Lapi, 03 -034 Page 19 *= Signifies cashiers checks, not personal checks from Lapi. * *= Additional checks not related to LVA events were included in these deposits. a. All deposits were made into Lapi's "House Account" at Ephrata National Bank with the exception of the October 29, 1998 Pumpkin Patch deposit. 1. The October 29, 1998 deposit was made into a separate personal account (Account No. 15- 717 -1) maintained by Lapi at Ephrata National Bank. b. Lapi's signature is present endorsing all of the checks issued as payment. c. The $54,160.78 figure is representative of all expenses incurred by Lapi in association with food service provided for Harvest days, Pumpkin Patch, and Belsnickel from June 1998 through June 2002. d. Lapi picked up checks issued as payment in person. 78. LVA staff members and various LVA volunteers provided support for activities occurring at the events held during the school year, including food service activities. a. In addition to LVA staff and volunteers working at the summer events, Lapi organized individuals associated with the CTC to assist with food service at the events. 1. Individuals utilized by Lapi included CTC instructors and /or students. 79. From June 1998 through June 2002, Lapi enlisted the services of King and Tom Gillen, CTC Culinary Arts Instructor, to assist with food service at the LVA events held during the school year. Year Event Don King Tom Gillen Students 1998 Harvest Days $75.00 $0.00 $225.00 1998 Pumpkin Patch 75.00 $0.00 200.00 1998 Belsnickel 200.00 $0.00 195.00 1999 Harvest Days 75.00 $0.00 275.00 1999 Pumpkin Patch 75.00 $0.00 200.00 1999 Belsnickel 200.00 $0.00 204.00 2000 Harvest Days 75.00 $0.00 275.00 2000 Pumpkin Patch 75.00 $0.00 100.00 2000 Belsnickel 200.00 $0.00 350.00 2001 Harvest Days 75.00 $0.00 200.00 2001 Pumpkin Patch 75.00 $0.00 250.00 2001 Belsnickel 200.00 $0.00 0.00 Total $1400.00 $0.00 $2474.00 Lapi, 03 -034 Page 20 a. Lapi also utilized student workers for various events during the school year. b. No student workers could be identified regarding LVA events held during the school year. 80. Lapi determined wages to be received by individuals assisting with food service for the events held during the school year. a. Student wages for LVA school related events were set at approximately $20.00 to $35.00 per day. b. Lapi established separate wages for CTC instructors. c. Lapi paid the individuals in cash after each day of the event. d. Lapi maintained no records or documentation regarding the amounts of wages paid. 81. Lapi incurred additional expenses in the approximate amount of $3,874.00 as a result of wages paid to instructors and students for labor provided as shown below: a. King verified the approximate amounts paid for his labor at the events. b. Although Gillen worked approximately six of the events during the school year, Gillen received no payment from Lapi for services provided. c. Student wages paid were based on an average wage of $25.00 per day per student. 1. Ex -CTC student, Quinn Hacker, verified receiving approximately $150.00 in wages for the 2000 Belsnickel event. 2. Ex -CTC student Janell Breneman verified receiving approximately $50.00 in wages for the 2000 Belsnickel event. 3. No additional student workers could be identified for the school related events (including the 2000 Belsnickel). Lapi, 03 -034 Page 21 82. Lapi provided investigators for the State Ethics Commission with one cancelled check from his personal "House Account" to document personal expenses associated with the purchase of supplies for LVA events held during the school year. a. Check No. 329 dated October 31, 2001 in the amount of $222.31 was written to Oregon Dairy in relation to the 2001 Pumpkin Patch event. b. Lapi provided no other receipts (i.e. cash receipts, debit card receipts, etc.) to document personal expenses associated with food service at events held during the school year. c. A review of Lapi's House Account confirmed debit /withdrawals during the time periods of the summer events totaling $1,494.70. 83. Of the $54,160.78 issued to Lapi from the LVA as payment, $39,869.44 was reimbursed to the CTC as payment for services rendered by the culinary program at LVA events. a. Payment by Lapi to the CTC for services rendered included the cost of food and related supplies, equipment rentals (if necessary), and a variable percentage mark -up. 1. Initial mark -ups made by Lapi on the event ranged from 10% to 38.6% of the base cost. 2. The dollar amount of the mark -ups was profit realized by the culinary program for the respective events. b. The difference of $14,291.34 remained in Lapi's possession. 84. Of the $14,291.34 remaining in Lapi's possession, $5,591.01 ($222.31 in supplies and $3,874.00 in labor fees and $1,497.70 [sic] in debits) can be documented or verified as expenses incurred. a. A balance of $8,700.33 remains unaccounted for regarding the difference in funds paid to Lapi by the LVA in comparison with funds paid by Lapi to the CTC. 85. The CTC administration was aware of Lapi performing food service for the LVA during the school year. a. Food service provided during the school year for the LVA through the CTC was within the scope intended for the catering program. b. The CTC administration was unaware that Lapi was submitting different invoices to the CTC and LVA regarding the events. c. The CTC administration was aware that Lapi was receiving payment directly from the LVA and subsequently paying the CTC personally for the cost of events held during the school year. 1. CTC administration was unaware that Lapi was retaining a portion of the payments and not turning over all the funds to the CTC. d. Use of CTC facilities, equipment, etc. was acceptable because the service Lapi, 03 -034 Page 22 provided fell within the scope of the program. 86. Lapi's use of the authority of his public position included scheduling, planning and organizing food service for LVA events during the course of the CTC school year and during his regular hours and a CTC employee. a. Lapi routinely met with or spoke via the telephone with LVA representatives in his Mt. Joy office during the regular school year. b. Lapi utilized CTC instructors and students to prepare product for summer events during the regular school year. c. Lapi utilized CTC facilities, equipment, and tools to facilitate the food service provided for the summer events. 87. Lapi's private pecuniary gain of $8,700.33 was realized as a result of providing food service for LVA events held during the school year through his position as Food Service Director of the CTC. 88. In April 2002, the Department of the Auditor General's Office received a complaint concerning irregularities in the management and operation of the CTC's food service activities. a. Subsequent to the complaint, an investigation into the irregularities was conducted by the Department of the Auditor General, Office of Special Investigations (OSI). b. The Department of the Auditor General issued a draft report of its findings to the CTC on or about January 17, 2003. 89. As a result of the Department of the Auditor General's report, the CTC retained the services of Trout, Ebersole & Groff, LLP, Certified Public Accountants, to perform an investigation of the irregularities in the management and operation of the CTC food service activities. a. Trout, Ebersole & Groff was specifically retained to review the situation involving Lapi and the CTC food service program and verify the accuracy of the Auditor Generals' report. b. Trout, Ebersole & Groff was also retained to assist the CTC in developing its response to the Auditor General's report. 90. The CTC provided an interim response to the Department of the Auditor General on or about January 29, 2003. a. OSI representatives met with CTC representatives on March 11, 2003 to discuss the draft report and information obtained by the CTC and Trout, Ebersole & Groff. b. The CTC's formal response was received at the Auditor General's office on April 2, 2003. 91. As a result of the investigations conducted by the Department of the Auditor General and Trout, Ebersole & Groff, Lapi and the CTC entered into a mutual agreement to sever Lapi's employment with the CTC. a. Lapi signed the agreement on April 4, 2003. Lapi, 03 -034 Page 23 b. James Byrnes, JOC Chairman, signed the agreement on behalf of the CTC on April 24, 2003. 92. The signed agreement detailed, among others, the following provisions: a. Lapi's resignation from the CTC was effective at the conclusion of the 2002- 2003 school year. b. Lapi waived a retirement bonus in the amount of $8,000.00 to which he would have been entitled to pursuant to the collective bargaining agreement, Act 93 agreement, entered by the CTC. c. The CTC agreed to release Lapi from any monetary damages or restitution, and agreed not to initiate (directly or indirectly) any claim or legal action against Lapi, or any criminal or administrative proceeding relating to or arising out of Lapi's employment with the CTC absent the discovery of any new information that is substantially different than the type and scope currently known. d. Nothing stated within the agreement constituted any admission of wrongdoing or liability by Lapi. (The following findings relate to the allegation that Lapi failed to file Statements of Financial Interests) 93. Statement of Financial Interests filing requirements for public officials and public employees are mandated by Section 1104 of the State Ethics Act. a. Lapi was required to file Statement of Financial Interests by May 1 annually for the proceeding calendar year in his position as Food Service Director for the CTC. 94. A Statement of Financial Interests Compliance Review was conducted at the CTC on June 19, 2003. a. Lapi's SFIs on file for calendar years 2000 through 2002 were dated April 9, 2001; April 25, 2002; and February 10, 2003 respectively. 95. On April 29, 2002, OSI representative Joel Davis requested copies of SFIs from 1998 to the present for CTC individuals in positions covered regarding filing requirements. a. Lapi provided copies of SFIs filed for calendar years 2000 and 2001. 1. The forms provided by Lapi for 2000 and 2001 were completed on or about April 25, 2002. 2. The form for calendar year 2000 was backdated by Lapi to read April 9, 2001. b. No forms regarding earlier calendar years were present for Lapi. 96. On November 26, 2002, Lapi provided a statement to OSI representatives Davis and Tamara Reed during which the following statements were made regarding Lapi's SFIs: Lapi, 03 -034 Page 24 a. Lapi did not file SFIs for years prior to calendar year 2000. b. Lapi was unaware that he was required to file SFIs in his position as Food Service Director. c. Lapi completed the 2000 and 2001 calendar year SFIs at the same time after Davis had initially requested them for review. d. Lapi admitted backdating the form calendar year 2000 and claimed he was instructed to backdate the forms by Carolyn Martino, Secretary to the Executive Director. 97. Lapi, in his position as the Food Service Director for the CTC, realized a minimum financial gain of approximately $13,000.00 as a result of retaining funds received for the catering of events for the LVA through the CTC for his own personal use. a. As Lapi has already paid $8,000.00 toward this amount in the form of waiving his retirement bonus, his net gain is $5,000.00. III. DISCUSSION: At all times relevant to this matter, the Respondent, Morris Lapi (Lapi), has been a public employee subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et 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 Lapi, as the Food Services Director for the Lancaster County Career & Technology Center (CTC), violated Sections 1103(a) and 1104(a) of the Ethics Act when he used equipment, employees, food supplies and the facilities of the CTC for catering events for which he was compensated; when he retained funds received for the catering of those events for his personal use; and when he failed to file Statements of Financial Interests (SFIs) for the 2000 and 2001 calendar years by May 1 St of the respective following years. 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 9 of 1989/Act 93 of 1998 as follows: 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. Lapi, 03 -034 Page 25 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 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. Section 1104(a) of the Ethics Act requires that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. From July 1997 through June 2003, Lapi served as the Food Service Director of the CTC, which is an educational facility established through a joint agreement among 16 Lancaster County School Districts to provide vocational technical education to students. The CTC has three separate campuses, each of which houses two specific career fields of study. The CTC has a Culinary Arts Center that engages in the following activities: meal preparation for the Office of Aging; preparation and provision of meals at the public restaurant located on campus; the operation of a retail store with meats, deli items and baked goods; and the operation of a catering service for private and community related activities. Lapi, as the Food Service Director, had the following duties and responsibilities as to the Culinary Arts Center: ordering food for the programs and cafeterias; planning functions at the three campuses; developing function sheets for individuals; preparing and forwarding contracts for outside functions; coordinating a York Technical Institute contract with CTC; and organizing activities for the Office of Aging. Lapi also had the responsibility to place food orders and consumables. Although the catering services provided by CTC were limited prior to 1996 or 1997, catering services subsequently expanded to fulfill the following purposes: educate students through hands on experience, provide an outlet for a classroom product, and provide a means by which revenue could be generated for the culinary program. Lapi, as Food Service Director, was encouraged by CTC administrators to allow for outlets for classroom products, including catering services. Lapi had the authority to determine the specific events that would be catered by CTC. Prospective clients who would be interested in catering services could contact employees in Lapi's office. After a proposed catering event was finalized, Lapi presented the proposal to CTC instructors. However, Lapi made the final determination on whether to cater the events. Lapi would inform the instructors of the number of students who would be needed for the catering event. After a catering event was arranged, a function sheet was prepared to document the event date and time, the event name, contact information, the number of guests, menu and any special requests. Although students were not required to work at catered events after school hours, they were required to work at such events during school hours as part of their education curriculum. The instructors and students who provided services were compensated by CTC at an hourly rate for any work done after 3:00 p.m. After a catering event was completed, the client received an invoice directing that payment be sent to CTC. The invoice included services for the cost of food, related supplies, and any equipment plus a mark up as determined by Lapi. The payment was received from the client at CTC business office for processing. Lapi, 03 -034 Page 26 One of the entities that used CTC catering services was the Landis Valley Museum (LVM), a living history museum that is administered by the Pennsylvania Historical and Museum Commission (PHMC). The Landis Valley Associates (LVA) is the support arm of LVM with a Board of Directors, employees and voluntary members who periodically organize fundraising events for LVM. Since 1999, the LVA has had at least five major events at the museum for which food services were needed. Lapi became involved in LVA events as a result of a request by Bob Johnson, the President of the LVA Board of Directors. Johnson requested Lapi to serve as an LVA Board Member and take over the food service associated with the events. Parenthetically, in the early to mid 1990's, Lapi had routinely performed food service catering for LVA events, which occurred prior to the establishment of the culinary center in 1996 or 1997. Lapi continued to provide such food services to the LVA through the CTC after the establishment of the culinary center. Any events that were catered for the LVA generally followed CTC guidelines. However, certain exceptions existed: all LVA contacts were personally handled by Lapi; the event prices were not detailed; actual CTC invoices were not sent to LVA regarding the event costs, merely a list of food, supplies, and the total price; instructors and students utilized for labor at the LVA events were paid by Lapi; and payments to the CTC by LVA were not in accord with established procedures. From 1998 forward, Lapi received payment directly from LVA in his name, rather than CTC. Prior to 1998, the only summer event catered by Lapi for the LVA through the CTC was the annual institute event. Subsequently, catered summer events expanded and usually occurred at the LVM site. At CTC, Lapi directed the preparation and freezing of food for LVA summer events prior to the end of the school year. Lapi also ordered food supplies for the summer events from various food distributors where LVA had accounts. Food related supplies that were ordered for LVA events were stored at various CTC campus cafeteria facilities. For such events, Lapi did not order all of the anticipated supplies prior to the start of summer events due to variables such as the weather and attendance at the events. Lapi regularly paid for supplemental supplies in cash or through a debit card from his personal bank account. After an LVA event was completed, Lapi generated an invoice listing the cost of the event. That invoice stated the event name, date, and total cost of supplies with no itemized break down as to food, supplies or equipment. In this regard, Lapi did not supply any receipts to LVA representatives to document the costs. Lapi would present an invoice to LVA with a request to make payment noting Lapi's name in the "please pay to" section of the invoice. Subsequently, after LVA's associate manager Judy Weese requested Lapi to submit detailed invoices for the events, he then supplied invoices listing the itemized costs. Although students were not available as laborers for summer events in that the CTC did not hold summer culinary classes, Lapi enlisted the services of CTC instructors, employees and others for summer events from June of 1998 through June of 2002. Lapi determined the wages for the individuals who assisted with the food service summer events and paid the individuals in cash without maintaining any records or documentation. The CTC administrators had an awareness that Lapi was performing food service for the LVA during the summer months, but they did not know any specifics and did not know that the CTC did not receive the payments for the food service at such LVA summer events. The food services that were provided to LVA during the summer months were beyond the scope and function of the catering program at CTC. The financial details for the summer events for LVA are detailed in Fact Findings 53 through 55. Lapi obtained receivables totaling $41,308.65 from LVA for 9 summer events. Lapi made payments in the amount of $12,521.48 for expenses as well as $7,475 in wages to Lapi, 03 -034 Page 27 instructors, CTC associates and other individuals. Lapi asserts that he made approximately $500 to $600 for each of five events held from 1998 through 2002. However, if the supplies and labor expenses and other debits amounting to $718.78 are deducted from the receipts, there is a balance of $20,593.35 that remained for Lapi. Lapi used the authority of his public position to schedule, plan and organize food services for LVA summer events during regular hours at the CTC school. Lapi met or spoke with LVA representatives, used the school phone, utilized CTC instructors and students to prepare food for the summer events and utilized CTC's facilities, equipment and tools for such events. At a minimum, Lapi received a private pecuniary benefit of $13,000 as a result of providing food services at the LVA events vis -a -vis his position as CTC Food Service Director. See, Fact Finding 61. As a result of Lapi providing catering services for LVA during the summer, he then began providing food services at LVA events during the school year. The food that was served at LVA events was either prepared on site or in advance at the CTC facilities. For LVA events, Lapi ordered food during the school year from various food distributors where CTC held accounts. Generally, such orders were placed as part of an overall order of food for classroom products. Lapi did not order all of the anticipated supplies for the catering events during the school year due to variables such as weather and attendance. For any supplemental supplies, Lapi typically paid in cash or by a credit card. After a catering event was completed, Lapi sent an invoice for the cost of the event to the LVA. The invoice listed the event name, date and total cost of supplies with no itemized break down. The invoice included receipts of the supplies purchased as well as wages paid to individuals working at the event. Prior to 1998, payment for services were processed through CTC. Lapi received separate checks from LVA as reimbursement for his personal expenses. After the Fall of 1998, Lapi began requesting payments directly to himself rather than CTC. Since the invoice to LVA directed it to "make [the] check payable to Morris Lapi ", Judge Weese of LVA questioned Lapi on such procedures. When Lapi obtained checks from LVA, he deposited the checks into his personal account. On occasion, Lapi obtained cashiers checks from his bank, payable to CTC, for services provided. The amounts in payment that Lapi received from CTC did not equal the amounts of the checks that he received from LVA. CTC administrators were unaware that the funds paid by LVA for catered events were not submitted to CTC. Lapi created a dual system whereby he had two separate invoices for catered events: one invoice for submission to the CTC business office and the second invoice for LVA. The invoices submitted to the CTC business office were consistently lower than the invoices submitted to LVA. As a consequence, Lapi was able to submit different charges on the dual sets of invoices by altering individual unit prices. For 12 LVA events, the total of payments received by Lapi from LVA was $54,160.78 and Lapi's total payments to CTC were $39,869.44, thereby creating a difference in Lapi's favor of $14,291.34. See, Fact Finding 77. LVA staff members and volunteers provided support for the catering events during the school year. In addition, from June 1998 through June 2002, Lapi enlisted the services of two culinary arts instructors to assist with events. Lapi also utilized students for various events. Lapi determined the wages for individuals who assisted with the food service. Lapi incurred wage expenses of approximately $3,874 paid to instructors and students relative to the catering events. See, Fact Finding 81. Although Lapi asserts that there were other personal expenses associated with catering events, he was only able to submit one check in the amount of $222.31. During the relevant time, there were other general debits or withdrawals from his account totaling $1,494.70. However, of the $54,160.78 issued to Lapi from LVA, $39,869.44 was reimbursed to CTC, thereby creating a difference of $14,291.34 in Lapi's favor. If the Lapi, 03 -034 Page 28 supplies of $222.31, the labor of $3,874 and other debits of $1,494.70 are credited, there still remains a balance of $8,700.33 to Lapi. Although the CTC administrators were aware of Lapi performing food services for LVA, they were unaware that Lapi was receiving payments directly from LVA and that Lapi was submitting a dual system of invoices to CTC and LVA for the catered events. The administrators were unaware that Lapi was retaining a portion of the payments. Lapi used his public position to schedule, plan, and organize food service for LVA events during the school year during regular hours. Lapi received a private pecuniary benefit of $8,700.33 as a result of providing food services for LVA during the school year while serving as Food Service Director. See, Fact Finding 87. After the Department of the Auditor General received a complaint about irregularities as to the management and operation of CTC's food service activities, an investigation was undertaken. Certified public accountants were retained to review the accounts as to the management and operation of the CTC food service activities. Following the completion of the investigations by the Department of Auditor General and the CPA firm, Lapi and the CTC entered into an agreement in April 2003 to sever Lapi's employment with CTC. The agreement provided in part for Lapi's resignation, his waiver of a retirement bonus of $8,000 to which he was entitled, CTC's release of any liability claim as to Lapi and an agreement stating no admission of wrongdoing or liability by Lapi. Turning to the matter of SFIs, Lapi was required to file the forms in his position as Food Service Director. Following an SFI compliance review at the CTC, Lapi's SFIs were on file for calendar years 2000 to 2002. Subsequently, copies of Lapi's SFIs from 1998 to the present were requested. Lapi provided copies of his SFIs for the calendar years 2000 and 2001. The SFI for calendar year 2000 was back dated by Lapi to read April 9, 2001. The calendar year 2001 SFI was on file with a date of April 25, 2002. No forms for earlier years were on file. Lapi subsequently admitted that he did not file SFIs for years prior to calendar year 2000, asserting that he was unaware that he had to file SFIs in his position as Food Service Director. Lapi stated that he back dated the form based upon instructions given by a secretary. Lapi, as Food Service Director, realized at a minimum a private pecuniary benefit of $13,000 as a result of funds received from catering events for LVA through CTC. Crediting that amount with the $8,000 bonus that Lapi waived as part of the agreement, the net financial gain reduces to $5,000. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations, as follows: "3. The Investigative Division will recommend the following in relation to the above allegations: a. That an unintentional violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Lapi's utilization of equipment, employees, food supplies and the facilities of the CTC for catering events when he was compensated for such; and b. That an unintentional violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to the funds received for the catering of those events for his personal use in which Lapi retained; and Lapi, 03 -034 Page 29 c. That an unintentional violation of Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1104(a) occurred in relation to Lapi's failure to file Statements of Financial Interests for the 2000 and 2001 calendar years by May 1 of the respective filing years. 4. Lapi agrees to make payment in the amount of $5,000 ($13,000 minus $8,000 = $5,000) 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. (Lapi is being credited for $8,000 for waiving his retirement bonus). 5. Lapi is required to file accurate and complete Statements of Financial Interests for calendar years 2000 and 2001 with this Commission within thirty (30) days of the issuance of the final adjudication in this matter." Consent Agreement, ¶3, ¶4, 115. In applying §1103(a) of the Ethics Act to the above stipulated facts, there were uses of authority of office on the part of Lapi. But for the fact that Lapi was Food Service Director at CTC, he would not have been in a position to use the CTC offices equipment, instructors, and students for various catering services. Lapi used the resources of CTC, that is, its vendors and suppliers, as a springboard for obtaining outside catering services. By virtue of his position, Lapi was also able to create a dual invoice system for catered events whereby the invoices to the clients were higher than the invoices he submitted to CTC. All such actions by Lapi were uses of authority of office. See, Juliante, Order 809. Lapi, by utilizing such equipment, employees, food supplies, and facilities relative to his position at CTC for catering events and engaging in such activities during regular school time, obtained a financial gain by not having to pay such expenses out of pocket. The pecuniary benefits inured to Lapi himself. Further, the pecuniary benefits were private because there is no authorization in law for Lapi to engage in such activities. Accordingly, Lapi as the compensated food services director, unintentionally violated §1103(a) of the Ethics Act when he utilized CTC equipment, employees, food supplies and for catering private events. See, O'Connor, Order 1269. In addition to the above, the same uses of authority of office on the part of Lapi resulted in a financial gain to him consisting in part of the difference between the higher invoices that Lapi submitted to the clients for the catering services and the invoices that he provided to CTC. Even taking into account various supplies, wages paid and certain other expenses, the net difference still resulted in a financial gain to Lapi as to those catering events. The pecuniary benefits were private because there is no authorization in law for Lapi to use his position as Food Service Director to obtain profit from catering services through the use of CTC's equipment, employees, food supplies and facilities. Accordingly, Lapi unintentionally violated §1103(a) of the Ethics Act when he used the authority of office to obtain a private pecuniary benefit consisting of funds he received for catering private events through the use of CTC's equipment, employees, food supplies, and facilities. Id. The above result is consistent with a plethora of prior precedent by this Commission that public officials /public employees may not use government offices, equipment, facilities, supplies, personnel for private business, election or campaign activities. See, Fiorello, Order 1363; Friend, Order 800; Habay, Order 1313. Lapi, 03 -034 Page 30 Turning to the SFI allegations, the stipulated findings reflect that at the time of the compliance review, Lapi's SFIs were on file for calendar years 2000 through 2002 with respective filing dates of April 9, 2001, April 25, 2002 and February 10, 2003. The calendar year 2000 SFI by Lapi was back dated to April 9, 2001. Accordingly, Lapi unintentionally violated §1104(a) of the Ethics Act for his failure to timely file an SFI for the 2000 calendar year on or before May 1, 2001. However, as to the SFI for the calendar year 2001, the findings reflect that the form was completed on or about April 25, 2002. Since the 2001 form was also on file, we will deviate from the Consent Agreement and find that Lapi did not violate §1104(a) of the Ethics Act regarding the 2001 calendar year SFI that was completed and on file before May 1, 2002. This is not prejudicial to Lapi in that the variance from the Consent Agreement is in his favor. As to the 2000 calendar year SFI, Lapi is directed to file a full and complete SFI for the calendar year 2000 with a current filing date within 30 days of the date of mailing of this order with this Commission. Failure to comply with this directive will result in the institution of an order enforcement action. 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, Lapi is directed to make payment in the amount of $5,000 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. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Morris Lapi (Lapi), as a Food Services Director for the Lancaster County Career & Technology Center (CTC) for the relevant time period was a public employee subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Lapi unintentionally violated §1103(a) of the Ethics Act when he utilized CTC equipment, employees, food supplies, and facilities for catering private events. 3. Lapi unintentionally violated §1103(a) of the Ethics Act when he used the authority of office to obtain a private pecuniary benefit consisting of funds he received for catering private events through the use of CTC's equipment, employees, food supplies, and facilities. 4. Lapi unintentionally violated Section 1104(a) when he failed to file a Statement of Financial Interests for the 2000 calendar year by May 1 St of 2001. 5. Lapi did not violate §1104(a) of the Ethics Act regarding the 2001 calendar year SFI that was completed and on file before May 1, 2002. In Re: Morris Lapi ORDER NO. 1382 File Docket: 03 -034 Date Decided: 12/12/05 Date Mailed: 12/23/05 1 Morris Lapi (Lapi), as a Food Services Director for the Lancaster County Career & Technology Center (CTC), unintentionally violated §1103(a) of the Ethics Act when he utilized CTC equipment, employees, food supplies and facilities for catering private events. 2. Lapi unintentionally violated §1103(a) of the Ethics Act when he used the authority of office to obtain a private pecuniary benefit consisting of funds he received for catering private events through the use of CTC's equipment, employees, food supplies, and facilities. 3. Lapi unintentionally violated Section 1104(a) when he failed to file a Statement of Financial Interests for the 2000 calendar year by May 1 St of 2001. 4. Lapi did not violate §1104(a) of the Ethics Act regarding the 2001 calendar year SFI that was completed and on file before May 1, 2002. 5. Per the Consent Agreement of the parties, Lapi is directed to make payment in the amount of $5,000 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. Lapi is required to file an accurate and complete Statement of Financial Interests for calendar years 2000 with this Commission within thirty (30) days of the issuance of the final adjudication in this matter. 7 Compliance with paragraphs 5 and 6 will result in the closing of this case with no further action by this Commission. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair