HomeMy WebLinkAbout1388 MarhefkaIn Re: Lawrence Marhefka
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
05 -021
Order No. 1388
2/23/06
3/13/06
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 not filed and a hearing was waived. A Consent Agreement and
Stipulation of Findings were submitted by the parties to the Commission for consideration.
The Stipulation of Findings is quoted as the Findings in this Order. The Consent
Agreement was subsequently approved.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
Marhefka, 05 -021
Page 2
I. ALLEGATION:
That Lawrence Marhefka, a public official /public employee, in his capacity
as Supervisor for Conemaugh Township, Cambria County, violated Sections
1103(a), and 1105(b)(8)(9) provisions of the State Ethics Act (Act 93 of 1998), 65
Pa.C.S. § §1103(a), and 1105(b)(8)(9) when he used the authority of his office for
the private pecuniary gain of himself and /or a member of his immediate family when
he purchased a vehicle from the township and subsequently used his position to
avoid paying the bid price and sales tax; when he used the services of the borough
solicitor to handle personal matters related to the purchase of a vehicle from the
township; when he performed personal work while on township time; and when he
failed to disclose on Statements of Financial Interests filed for the 2002, 2003, and
2004 calendar years his office, directorship, or employment in Troy Auto and his
financial interest in Troy Auto.
II. FINDINGS:
1. Lawrence Marhefka has served as a Supervisor for Conemaugh Township since
1996.
a. Marhefka served as Chairman of the Board of Supervisors in 2004 and 2005.
b. Marhefka served as Vice - Chairman during the time period 2000 -2003.
2. The Conemaugh Township Board of Supervisors reorganizes annually.
a. The Board consists of three members including Marhefka, George Cveykus
and Kurt Freidhoff.
b. Board members are compensated $50.00 for each meeting they attend.
3. Marhefka has been an employee of the township since April 15, 1981.
a. Marhefka worked as a laborer until he took office in 1996.
b. Marhefka worked as a full -time roadmaster from 1996 until approximately
2000.
4. Since approximately 2000 Marhefka has been employed by the township as a part -
time roadmaster.
a. On average Marhefka works approximately 40 hours every two weeks.
b. Marhefka works from 6:00 a.m. to 10:00 a.m.
5. Minutes of the Conemaugh Township Board of Supervisors meetings reflect
Marhefka's reappointment as roadmaster at the 2004 and 2005 reorganization
meetings.
a. No reappointments were recorded in the minutes of the 2000, 2001, 2002
and 2003 reorganization meetings.
6. Marhefka owns and operates Troy's Auto, an automobile repair and inspection
business located at 1273 Frankstown Road, Johnstown, PA.
a. The business hours are generally 10:00 a.m. -5:00 p.m.
Marhefka, 05 -021
Page 3
b. Marhefka has operated the business since approximately 2000.
7 Conemaugh Township employs a three man road crew, including a foreman and
two full -time laborers.
a. Daniel Freiwald holds the position of road foreman.
1. Freiwald also holds the position of Police Chief /Zoning Officer.
8. Sometime prior to July 5, 2004 the Board of Supervisors agreed to sell a township
owned 1992 Ford Crown Victoria police cruiser.
a. No vote was taken to authorize the sale.
9. The 1992 Ford Crown Victoria Sedan had been purchased by Conemaugh
Township in October 1993.
a. Title #04282 - 1461- 000100 recorded the townships ownership of the car.
10. No bid request or advertisements were placed in local newspapers regarding the
sale of the vehicle.
a. The Board Secretary /Treasurer, John Peschock, was advised by the
Solicitor that the value of the car did not warrant a newspaper advertisement.
11. The sale of the vehicle was posted at the township building (front and rear), the
Airport Grocery, and at the Pic -Quik Shopper.
a. In addition to the postings, the car was positioned adjacent to the Pic -Quik in
view of Frankstown Road, one of the main streets through the township.
12. Prior to advertising the car for sale, an estimated value was received of between
$1,500.00 and $2,000.00.
a. No written documentation of the estimate was obtained.
b. Based on the estimate the Board of Supervisors had an expectation as to the
price they might receive for the car.
c. The odometer registered approximately 140,000 actual miles.
13. Initial bids received in response to the posting of the sale of the car were opened at
the July 5, 2004 Regular Meeting of the Board of Supervisors.
a. One bid was received in the amount of $227.00.
14. The Board unanimously rejected the bid and decided to re- advertise.
a. Marhefka participated in the vote to reject the bid.
15. Sometime between July 5, and August 2, 2004, the vehicle was again posted for
sale.
16. At the August 2, 2004 Regular Meeting, the Supervisors opened the second set of
bids.
a. Two bids were received.
Marhefka, 05 -021
Page 4
1. One bidder submitted two bids in the amounts of $501.00 or $531.00.
2. A second bidder submitted the amount of $200.00.
17. By unanimous vote, the Supervisors agreed to reject all of the bids, and re-
advertise.
a. Marhefka participated in the vote.
18. The bid opening occurred at the September 7, 2004 Regular Meeting.
a. One bid was received in the amount of $600.00.
b. The bid was submitted by Lawrence Marhefka, Jr., son of Lawrence
Marhefka.
c. No copy of the bid was maintained for the township files.
19. By a 2/0 vote, the Board of Supervisors awarded the bid to Lawrence Marhefka, Jr.
a. Lawrence Marhefka abstained from the vote.
b. Marhefka did not publicly state his reason for abstaining or disclose his
conflict of interest.
c. The relationship between Marhefka and Lawrence Marhefka Jr. was known
to the other supervisors.
20. Lawrence Marhefka, Jr. is the son of Township Supervisor Marhefka.
a. Lawrence Marhefka Jr.'s interest in the car was known to the other
supervisors.
b. Lawrence Marhefka Jr. is currently serving in the military.
21. Shortly after his son's bid on the police car was approved by the Board of
Supervisors, Marhefka directed Police Chief Daniel Freiwald to give him the keys to
the 1992 Ford Crown Victoria police cruiser.
a. Freiwald maintained the keys to the vehicle in the police office located in the
township building.
b. Only police personnel have access to the police office.
c. Friewald gave Marhefka the keys because Marhefka was his immediate
supervisor.
1. Friewald would not give the keys to any resident without a
supervisor's approval.
22. Upon receipt of the keys, Marhefka drove the car from the township building to his
automobile repair business, Troy Auto, on Frankstown Road.
a. Marhefka maintained possession of the car until the Title Transfer occurred
on September 15, 2004.
Marhefka, 05 -021
Page 5
23. On September 15, 2004, a Title Transfer was executed between Conemaugh
Township and Lawrence Marhefka, Jr.
a. The Title Transfer was handled by T. Christy Auto /Notary, Frankstown Road,
Johnstown.
b. Supervisor Kurt Freidhoff signed on behalf of the township.
1. Freidhoff is designated as the Police Commissioner (liaison) for the
township.
24. Marhefka delivered the Title for the 1992 Ford police cruiser to Terry Christy at T.
Christy Auto.
a. Marhefka informed Terry Christy that Supervisor Kurt Freidhoff would stop
later that day to sign the Title Transfer paperwork.
b. Marhefka told Terry Christy that his son was buying the car for $400.00.
25. A Motor Vehicle Verification Form (MV -3, 5/98) was completed because the sale
price of the vehicle was less than 75% of the vehicle value.
a. An explanation was required when the purchase price was less than 75% of
the average fair market value.
26. The Motor Vehicle Verification Form listed the purchase price as $400.00 based on
the information received from Marhefka.
a. A notation reflects that the car needed body work and that it was a police car.
b. Kurt Freidhoff's signature is reflected on the form confirming the need for the
body work.
27. The Board of Supervisors did not approve changing the sale price from $600.00 to
$400.00.
a. The change was not discussed by the Supervisors.
b. The sale price of $400.00 was listed only because of information provided by
Marhefka.
28. A Sales Receipt prepared by T. Christy Notary /Auto reflects the various fee's
associated with the title transfer, including:
6% Tax $24.00
Certificate T 22.50
T Plate Fee 10.00
Plate Auto 36.00
MV 3 Fee 5.00
Notary 25.00
Clr Fee 5.00
Total $127.50
a. The Sales Tax was based on the sale price of $400.00 not the $600.00
approved by the Board of Supervisors.
29. After the Notice of Investigation was issued by the Investigative Division of the
Marhefka, 05 -021
Page 6
State Ethics Commission to Marhefka on July 21, 2005 steps were initiated by
Marhefka and the board of supervisors to pay the appropriate sales tax.
30. Supervisor Kurt Freidhoff contacted the solicitor to determine how to correct the
sales tax paid to the State of Pennsylvania.
a. Solicitor William Gleason Barbin directed Freidhoff to prepare a MV -4ST
form, obtain three affidavits, and have the documents notarized.
31. The Affidavits filed by Attorney Barbin, and Connie Marhefka and Kurt Freidhoff,
provided as follows:
"Deponent further says that Lawrence W. Marhefka, Jr. purchased a 1992
Ford automobile from the Township of Conemaugh for a purchase price of
$600.00 and that in completing the transfer of said automobile the purchase
price was erroneously listed as $400.00 and Sales Tax was paid in the
amount of $24.00 (Vehicle Sales and Use tax Return /Application for
Registration No.3684501). Deponent further says that a corrected Vehicle
Sales and Use Tax Return /Application for Registration (No. 7072249) has
been completed to reflect the correct purchase price of $600.00 and the
correct Sales Tax of $36.00. Prior payment of Sales Tax was made in the
amount of $24.00, and the balance of Sales Tax due is $12.00."
a. Connie Marhefka, Marhefka's wife, held Power of Attorney for Lawrence
Marhefka, Jr.
32. On July 25, 2005, a corrected Sales Receipt was sent to the Pennsylvania
Department of Transportation, Bureau of Motor Vehicles through T. Christy Notary.
a. The corrected receipt reflects additional sales tax of $12.00 (the difference
between the amount of sales tax paid and the amount that was owed based
on the sale price of $600.00).
b. The receipt included a $6.00 fee for notarizing three Affidavits and the
corrected form.
c. Indicated on the Sales Receipt, dated 7/25/05, was the following
explanation:
"Customer gave wrong price at time of sell and now wants to pay $12.00
more making the sell of the car $600.00."
33. The paperwork was submitted to the PA Department of Transportation Bureau of
Motor Vehicles by Notary Terry Christy, along with a check in the amount of $12.00
provided by Marhefka.
34. The corrected sales slip was issued four days after Marhefka received the Notice of
Investigation outlining the allegation.
35. On October 17, 2005, Secretary /Treasurer John Peschock issued a receipt in the
name of Lawrence Marhefka, Jr., in the amount of $600.00 for the 1992 Ford police
car.
a. Marhefka gave Peschock cash and instructed that the receipt be made out in
his son's name.
b. Peschock deposited the money into the township general fund on October
Marhefka, 05 -021
Page 7
18, 2005.
36. Marhefka did not pay for the car until after the State Ethics Commission
Investigative Division advised him by letter that he was under investigation for using
his position to procure the car for his son without paying for it.
a. The Investigative Notice letter was issued to Marhefka on July 21, 2005.
b. Marhefka's son was in possession of the vehicle for eleven months before
the township received payment.
37. Prior to being contacted by a State Ethics Commission Investigator in July 2005,
Supervisors Kurt Freidhoff and George Cveykus were not aware that the township
had not been paid for the car.
38. Solicitor Barbin submitted Invoice #11464, dated 10/03/05, to the township detailing
the following charges in relation to the work he performed to correct the price on
the Title paperwork and the sales tax paid to the State:
07/19/95 tc re Ethics Act issues, research respond .3 hrs $21.00
07/19/05 get MV form for correction and explanatory .9 hrs 63.00
affidavit
07/21/05 tc Kurt, conf re MV form correction .3 hrs 21.00
07/22/05 Emails tc for information prepare MV form .3 hrs 21.00
07/25/05 Affidavits fro MV issue .4 hrs 28.00
2.2 hrs $154.00
39. At the October 3, 2005 meeting of the Board of Supervisors the invoice submitted
by Solicitor William Barbin was approved for payment as part of the rest of the bill
list.
a. The invoice contained $154.00 in charges related to legal work performed by
Barb related to the vehicle transfer.
40. Conemaugh Township General Fund check #10945, dated 10/02/05, in the amount
of $547.84, was issued to Attorney William Barbin.
a. The check was signed by Marhefka, Kurt Freidhoff and John Peschock.
b. Township checks require three signatures, including that of the
Secretary /Treasurer and any two of the supervisors.
41. Marhefka used the authority of is [sic] office for the private pecuniary benefit of his
son, Lawrence Marhefka, Jr., when he directed the Police Chief to give him the keys
to the township owned 1992 Ford Crown Victoria Police car, took the car to his
business, and then gave the car to his son without payment of the bid price to the
township.
a. Marhefka had use of the vehicle from September 15, 2004 through July 2005
before paying the entire amount owed.
42. An additional $154.00 was paid by the township for attorney's fees in amending the
sale price information.
The following findings relate to Marhefka performing personal
errands, including grocery shopping, on township time.
Marhefka, 05 -021
Page 8
43. On a regular basis, Marhefka serves lunch at his place of business, Troy Auto.
a. The lunch is open to anyone that stops at the business at lunch time.
b. Daniel Freiwald and the full -time township police officer are regular
attendees.
c. The road crew attends occasionally.
44. Marhefka frequents several grocery stores, including The Market Basket and the
Ideal Market to purchase food and related items for the lunches.
a. The Market Basket, located in Richland, is 6 miles from the township
building, with an estimated travel time of 11 minutes.
b. The Ideal Market, located in the city of Johnstown, is 2 miles from the
township building, with an estimated travel time of 5 minutes.
45. Marhefka generally does the grocery shopping for lunch items between the hours of
6:00 a.m. and 10:00 a.m. while he is being compensated by the township as
roadmaster.
a. From at least 2000 through 2004, Marhefka utilized a township vehicle to
make trips to the grocery stores.
b. Since 2005 Marhefka has utilized his personal vehicle.
46. Township employee Daniel Freewald has accompanied Marhefka on trips to the
Market Basket.
47. Marhefka's trips to the grocery are often performed in conjunction with other
township business, such as running for parts.
a. Trips to the grocery usually take place around 8:00 a.m.
b. Marhefka generally spends approximately fifteen minutes at the store.
c. Lunch is served around twelve o'clock noon at Troy Auto.
48. Compensation for Marhefka working as roadmaster for the township, as set by the
Board of Auditors for the years 2000 -2004, was as follows:
Year Roadmaster
2000 $9.20 per hour
2001 $9.50 per hour
2002 $9.50 per hour
2003 $9.75 per hour
2004 $9.95 per hour
2005 $9.95 per hour
49. Marhefka received a private pecuniary gain of at least $2,490.80 when he went
shopping at grocery stores during hours that he was being compensated by
Conemaugh Township as a Roadmaster.
2000: 52 hrs (.5 hrs x 2 days /wk x 52 weeks /yr) x $9.20 per hr = $478.40
2001: 52 hrs (.5 hrs x 2 days /wk x 52 weeks /yr) x $9.50 per hr = $494.00
2002: 52 hrs (.5 hrs x 2 days /wk x 52 weeks /yr) x $9.50 per hr = $494.00
Marhefka, 05 -021
Page 9
2003: 52 hrs (.5 hrs x 2 days /wk x 52 weeks /yr) x $9.75 per hr = $507.00
2004: 52 hrs (.5 hrs x 2 days /wk x 52 weeks /yr) x $9.95 per hr = $517.40
TOTAL $2,490.80
a. Marhefka discontinued shopping during his work hours in 2005 because of
complaints received from residents.
The following findings relate to Marhefka's failure to disclose his
financial interest in Troy Auto on Statements of Financial Interests
he filed with Conemaugh Township for calendar years 2002, 2003, 2004.
50. Marhefka has filed Statements of Financial Interests with Conemaugh Township for
calendar years 2002, 2003, and 2004 which contain the following information:
Filing date: 01/03/05
Calendar year: 2004
Position: Supervisor
Occupation or Profession: Supervisor
Sources of Income: Conemaugh Township; Troy Auto, 1273 Frankstown Road
All Other Financial Interest Categories: None
Filing date: 02/02/04
Calendar year: 2003
Position: Supervisor
Occupation: Supervisor
Sources of Income: Conemaugh Township and Troy Auto
All Other Financial Interest Categories: None
Filing date: 01/07/03
Calendar year: 2002
Position: Supervisor
Occupation: Supervisor
Sources of Income: Conemaugh Township and Troy Auto
All Other Financial Interest Categories: None
51. Marhefka has owned and operated Troy Auto for at least five years.
52. Marhefka failed to list his financial interest and his ownership or employment in
Troy Auto on Statements of Financial Interests he filed with Conemaugh Township
for calendar years 2002, 2003, and 2004.
53. Following an interview with an Investigator for the State Ethics Commission,
Marhefka submitted amended Statements of Financial Interests to the township on
December 5, 2005 for calendar years 2002, 2003, and 2004.
a. Marhefka amended the forms for all three years to include the following:
Office directorship or employment: Troy Auto
Financial interest in any legal entity in: Troy Auto
business for profit
54. During calendar years 2002 through 2004 Marhefka was paid as follows in his
position as township supervisor:
Marhefka, 05 -021
Page 10
Year Amount
2002 $700.00
2003 $600.00
2004 $600.00
55. During the years 2002 through 2004 when he filed deficient Statements of Financial
Interests Lawrence Marhefka received compensation as a township supervisors
totaling $1,900.
56. Marhefka received a financial gain for his son Lawrence Marhefka Jr., when he took
possession of, and facilitated the title transfer for, the township owned 1992 Ford
Crown Victoria Police Cruiser; and when he performed personal errands on
township time, totaling.
Use of Solicitor $ 154.00
Township time spent on personal errands $2,490.80
Total $2,644.80
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Lawrence Marhefka (Marhefka),
has been a public official subject to the provisions of the Public Official and Employee
Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et seq., as codified by the
Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1101 et
seq., which Acts are referred to herein as the "Ethics Act."
The allegations are that Lawrence Marhefka, as Conemaugh Township Supervisor,
Cambria County, violated Sections 1103(a) and 1105(b)(8)(9) of the Ethics Act when he
purchased a vehicle from the township and subsequently used his position to avoid paying
the bid price and sales tax; when he used the services of the borough solicitor to handle
personal matters related to the purchase of a vehicle from the township; when he
performed personal work while on township time; and when he failed to disclose on
Statements of Financial Interests (SFIs) filed for the 2002, 2003, and 2004 calendar years
his employment and financial interest in Troy Auto.
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:
§1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. "Conflict" or "conflict of interest" does not
include an action having a de minimis economic impact or
which affects to the same degree a class consisting of the
general public or a subclass consisting of an industry,
occupation or other group which includes the public official or
public employee, a member of his immediate family or a
Marhefka, 05 -021
Page 11
business with which he or a member of his immediate family is
associated.
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.
§ 1105. Statement of financial interests
(b) Required information. - -The statement shall
include the following information for the prior calendar year
with regard to the person required to file the statement:
(8) Any office, directorship or employment of
any nature whatsoever in any business entity.
(9) Any financial interest in any legal entity
engaged in business for profit.
65 Pa.C.S. §§ 1105(b)(8), (9).
Section 1105(b)(8) of the Ethics Act requires that every public official /public
employee and candidate list any office, directorship or employment in any business entity.
Section 1105(b)(9) of the Ethics Act quoted above requires that every public official/
public employee and candidate list any financial interest in any legal entity engaged in
business for profit.
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.
Marhefka has served as a Supervisor on the three member board in Conemaugh
Township since 1996. In addition, Marhefka has been an employee of the Township since
1981: as a laborer until 1996, as a full -time roadmaster from 1996 until 2000, and a part -
time roadmaster from 2000. In a private capacity, Marhefka owns and operates Troy's
Auto, an auto repair and inspection business.
After the Board decided to sell a used police cruiser, advertisements for bids were
placed in local newspapers and posted at different locations. The estimated value of the
vehicle was between $1,500 and $2,000. Only one bid of $227 was received. The Board
rejected the bid and then re- advertised. Two bids were received, $501/$531 and $200,
both of which were rejected by the Board. After a third advertisement for bids was
published, one bid was received in the amount of $600 by Lawrence Marhefka, Jr.,
Marhefka's son. The Board of Supervisors awarded the bid to Marhefka's son by a 2 -0
vote with Marhefka abstaining.
Since Marhefka's son was actively serving in the military, Marhefka directed the
police chief to give him (Marhefka) the keys to the police cruiser. The police chief would
not have given the keys to any resident without a supervisor's approval. Marhefka drove
the police cruiser from the Township building to his automobile repair business, Troy Auto.
Title to the police cruiser was transferred from the Township to Marhefka's son.
Marhefka, 05 -021
Page 12
Because the $400 listed sale price of the vehicle was 75% less than its value, a
motor vehicle verification form had to be completed. That form had a notation that the
vehicle was a police vehicle that needed body work. The change of the sale price from
$600 to $400 was not discussed by the Supervisors who did not approve the change.
Various fees associated with the transfer were paid as well as sales tax on a basis of $400
rather than $600.
After Marhefka received his notice of investigation, he and the Board of Supervisors
initiated steps to pay the appropriate sales tax on the transaction. After consulting with the
solicitor, a corrected sales receipt was sent to PennDOT reflecting a sales price of $600
with an additional payment of $12 in sales tax. The corrected sales paperwork was sent
four days after Marhefka received notice of the investigation.
Thereafter, Marhefka paid cash for the police cruiser to the Township
Secretary /Treasurer who issued a receipt in the name of Marhefka's son in the amount of
$600. Marhefka instructed that the receipt be made out in his son's name. The payment
did not occur until after Marhefka received notice that he was under investigation for using
his position to purchase a Township vehicle for his son without paying for it. Marhefka's
son was in possession of the vehicle for 11 months before the Township received
payment. The other two Township Supervisors were not aware that the Township had not
received payment for the vehicle until they were contacted by an investigator of this
Commission.
The solicitor subsequently charged the Township $154 for the work performed to
correct the paperwork as to sales price of the vehicle and the payment of additional sales
tax. Subsequently, that fee was included as part of a general bill by the solicitor, which
was approved and then signed by all three Township Supervisors.
Marhefka used the authority of his office when he directed the police chief to give
him the keys to the police cruiser, took the car to his business and then gave the vehicle to
his son without the payment of the bid price.
Marhefka has a practice of serving lunch at his place of business, Troy Auto, to
anyone who stops there at lunchtime. Attendees would include the public, Township
police officers, and on occasion the Township road crew. Between 2000 and 2004,
Marhefka used a Township vehicle during his roadmaster working hours to go to a grocery
store to purchase lunch items. Sometimes a Township employee would accompany
Marhefka on his trip to the grocery market. At times, Marhefka's trips to the grocery market
occurred while he was performing Township business. Marhefka received a financial gain
of at least $2,490.80 when he went shopping to the grocery store during Township working
hours for which he received compensation. Marhefka discontinued this practice in 2005
because of complaints from Township residents.
As a Supervisor, Marhefka filed SF's with the Township for the calendar years 2002
through 2004. The information Marhefka provided on his SF's for those three calendar
years is delineated in Fact Finding 50. Marhefka failed to list on his SF's for the calendar
years 2002 through 2004 his financial interest and employment in his business, Troy Auto.
Marhefka has since filed amended SF's for the three calendar years including his financial
interest and employment in Troy Auto.
Lastly, it is stipulated that Marhefka received a financial gain of $154 as to
correcting the title transfer of the police cruiser to his son and also $2,490.80 for
performing personal errands on Township time for a total of $2,644.80.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
Marhefka, 05 -021
Page 13
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in
relation to Marhefka utilizing the township solicitor fora private
automobile transaction.
b. That a violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in
relation to Marhefka grocery shopping on township time.
c. That a violation of Section 1105(b) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1105(b) occurred when
Marhefka failed to identify Troy's Auto as a source of income
on his Statement of Financial Interests for calendar years
2002, 2003 and 2004.
4. Marhefka agrees to make payment in the amount of $750.00 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."
Consent Agreement, ¶3 and ¶4.
Before applying the Stipulated Facts to the provisions of the Ethics Act, it appears
from our review of the allegations and Consent Agreement that the Investigative Division
through the exercise of prosecutorial discretion has elected to non -pros the allegation that
Marhefka used his position to avoid paying the bid price and sales tax on a vehicle
purchased from the Township for his son.
Regarding the utilization of the Township Solicitor for correcting the problems with
the paper work on the police cruiser purchase, there were uses of authority of office on the
part of Marhefka. But for the fact that Marhefka is a Township Supervisor, he would not
have been in a position to utilize the Township Solicitor to correct the misstated purchase
price and underpayment of the sales tax. If Marhefka were not a Township Supervisor, he
would have had to use private counsel and pay the legal fees out of his own pocket. This
Commission has a longstanding precedent that a public official cannot use a government
attorney to perform private services. See, Szymanowski, Opinion 87 -002; Borland, Order
785; Hessinger, Order 931. Marhefka's utilization of the solicitor was a use of authority of
office that resulted in private pecuniary benefit to Marhefka and his son who is a member
of his immediate family as that term is defined under the Ethics Act. Accordingly, Marhefka
violated §1103(a) of the Ethics Act when he utilized the Township Solicitor to perform legal
services as to the purchase of the Township Police cruiser by Marhefka's son.
Turning to the allegation concerning Marhefka's grocery shopping on Township
time, such actions were uses of authority of office on his part. If Marhefka were not a
Township Supervisor, he could not have been in a position to shop during his Township
work hours utilizing at times a Township vehicle. Such actions were uses of authority of
office. See, Juliante, Order 809. Such uses of authority of office resulted in private
pecuniary benefits to Marhefka. The private pecuniary benefits consisted of the
compensation Marhefka received as a Township employee while he was engaged in
Marhefka, 05 -021
Page 14
personal grocery shopping. The private pecuniary benefits inured to Marhefka.
Accordingly, Marhefka violated §1103(a) of the Ethics Act when he went grocery shopping
during Township work hours using a Township vehicle. See, Large, Order 1117.
Lastly, it is stipulated that Marhefka failed to include on his SFIs for the calendar
years 2002 through 2004 his financial interest and his employment in Troy Auto. Given the
SFI filing deficiencies, we find that Marhefka violated §1105(b) of the Ethics Act when he
failed to list his financial interest and employment in Troy Auto for the calendar years 2002,
2003, and 2004 SFIs. Parenthetically, we note Marhefka has already filed amended SFIs
correcting his filing deficiencies.
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, Marhefka is directed to make
payment in the amount of $750.00 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. Lawrence Marhefka, as Supervisor for Conemaugh Township, is a public official
subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998.
2. Marhefka violated §1103(a) of the Ethics Act when he utilized the Township
Solicitor to perform legal services as to the purchase of the Township Police cruiser
by Marhefka's son.
3. Marhefka violated §1103(a) of the Ethics Act when he went grocery shopping during
Township work hours using a Township vehicle.
4. Marhefka violated §1105(b) of the Ethics Act when he failed to list his financial
interest and employment in Troy Auto for the calendar years 2002, 2003, and 2004
Statements of Financial Interests.
In Re: Lawrence Marhefka
ORDER NO. 1388
File Docket: 05 -021
Date Decided: 2/23/06
Date Mailed: 3/13/06
1 Lawrence Marhefka, as Supervisor for Conemaugh Township violated §1103(a) of
the Ethics Act when he utilized the Township Solicitor to perform legal services as
to the purchase of the Township Police cruiser by Marhefka's son.
2. Marhefka violated §1103(a) of the Ethics Act when he went grocery shopping during
Township work hours using a Township vehicle.
3. Marhefka violated §1105(b) of the Ethics Act when he failed to list his financial
interest and employment in Troy Auto for the calendar years 2002, 2003, and 2004
Statements of Financial Interests.
4. Per the Consent Agreement of the parties, Marhefka is directed to make payment in
the amount of $750.00 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.
a. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission.
b. Non - compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
Louis W. Fryman, Chair