HomeMy WebLinkAbout1396 McQuownIn Re: Jeremiah H. McQuown,
Respondent,
File Docket: 05 -029
X -ref: Order No. 1396
Date Decided: 5/31/06
Date Mailed: 6/2/06
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Paul M. Henry
Raquel K. Bergen
Nicholas A. Colafella
Reverend Scott Pilarz
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 deemed waived. The record is complete.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
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I. ALLEGATION:
That Jerry McQuown, a public official /public employee, in his capacity as a Member
and Chairperson of the Houtzdale Water Authority, Clearfield County, violated Sections
1103(a), 1103(f) and 1105(b)(4) -(10) of the State Ethics Act (Act 93 of 1998) when he
participated in actions of the authority to award a contract in excess of $500.00 without an
open and public process to McQuown Business Services, Inc., a business with which he is
associated, to install upgrades to the authority's phone system, when he participated in
decisions to make payment(s) to McQuown Business Services; and when he failed to
disclose on a Statement of Financial Interest (SFI) for the 2004 calendar year: creditors;
direct /indirect sources of income; gifts; office, directorship or employment in any business;
financial interest in any legal entity in business for profit and business interests transferred
to immediate family members.
II. FINDINGS:
1. The Investigative Division of the State Ethics Commission received information
alleging that Jeremiah McQuown violated provisions of the State Ethics Act (Act 93
of 1998).
2. Upon review of the complaint the Investigative Division initiated a preliminary
inquiry on August 11, 2005.
3. The preliminary inquiry was completed within sixty days.
4. On October 6, 2005, a letter was forwarded to Jeremiah McQuown, by the
Investigative Division of the State Ethics Commission informing him that a complaint
against him was received by the Investigative Division and that a full investigation
was being commenced.
a. Said letter was forwarded by certified mail, no. 7004 2510 0003 5004 5325.
b. The domestic return receipt bore the signature of Jerry McQuown with a
delivery date of October 11, 2005.
5. Periodic notice letters were forwarded to Jeremiah McQuown in accordance with
the provisions of the Ethics Law advising him of the general status of the
investigation.
6. The Investigative complaint was mailed to the respondent on April 3, 2006.
7 Jeremiah McQuown has served as a Board Member for the Houtzdale Municipal
Authority (HMA), Clearfield County since January 2005.
a. McQuown has served as Chairman of the Board for the Authority since May
17, 2005.
b. McQuown served as the Secretary from January 11, 2005 until May 17,
2005.
c. McQuown previously served as a Board Member from July 1, 1996 until
December 2001.
8. The Borough of Houtzdale formed the HMA on July 21, 1960 pursuant to the
provisions of the Municipal Authority Act of 1945.
a. On January 18, 1995 pursuant to Houtzdale Borough Council Ordinance 94-
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5 the term of existence for the HMA was extended until May 1, 2044.
9. The HMA provides water service to Houtzdale Borough, Ramey Borough, Brisbin
Borough, Bigler Township, Gulich Township, Woodward Township, part of Beccaria
Township, and part of Decatur Township.
10. The HMA board consists of seven members serving staggering terms.
a. The board members are appointed by the Houtzdale Borough Council.
b. Board members are not compensated.
11. Articles of Incorporation for the HMA created the officer positions of Chairman, Vice
Chairman and Secretary.
12. The HMA board holds regular monthly and special meetings.
a. The regular monthly meetings are held to accept bids, approve bills and
address public concerns.
b. The special meetings resolve board issues.
13. Minutes of the HMA Board Meetings reflect all official actions taken by the board.
a. The meetings are taped and the minutes are transcribed from the tape.
b. The tapes are kept in a locked safe at the offices of the authority.
c. Notes are also taken by the recording secretary.
14. On all matters that are being considered and discussed at HMA board meetings,
first a motion is made and then seconded by the board from which a vote is taken
by the board.
a. The votes are recorded by the board members by voting either yes or no.
b. All abstentions are recorded in the minutes.
c. The chairman typically does not vote on motions except in the case of a tie.
15. At every HMA meeting the board members approve the minutes from the prior
meeting for accuracy.
16. Payments from the HMA Capital Improvement Fund requires [sic] the signature of at
least two board members which can be the Chairman, Secretary and Vice -
Chairman.
a. The Vice - Chairman has signature authority in the event that either the
Chairman or Secretary are not available.
b. Signatures on Capital Improvement Fund checks must be live signatures.
17. Payments from HMA general fund are generally signed by the manager for amounts
under $500.00.
18. McQuown is the owner and operator of McQuown Business Services, Inc. which
does business out of the following location:
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Page 4
McQuown Business Services, Inc.
37 Railroad Street
P.O. Box 50
Ramey, PA 16671
19. Articles of Incorporation for McQuown Business Services, Inc., list Jeremiah
McQuown as being the President.
a. The business was incorporated on January 4, 1991.
b. The purpose of the business includes, but it is not limited to telephone
services, welding and trucking and to perform all other activities legally
allowed under Pennsylvania Law.
20. In 1995 the HMA authorized the construction of a water filtration plant built.
a. As part of the construction process for the plant, the board members
advertised and accepted bids to install a new phone system.
21. Minutes of the HMA Board Meeting for June 13, 1995 reflected bids were received
for a new phone system at the water filtration plant.
a. Four bids were received.
b. McQuown submitted a quote in the amount of $2,035.
c. McQuown was not a board member at this time.
d. The board accepted and voted in favor to approve McQuown's quote.
22. On June 12, 1995 McQuown Business Services, Inc. billed the Houtzdale Municipal
Authority for a new phone system in the amount of $2,035.94 via Invoice # 1128
which is reflected in the description of services.
Description Cost
DigiTech 4 -Line, 8- Station $00
Expandable to 8 -Line, 16- Station
Digital Electronic Telephones, $ 0
Flat Black or Gray Telephones.
Full installation and programming $ 2,035.94
of the DigiTech 408 System
a. McQuown required half of the payment and the balance was due upon job
completion.
23. On November 1, 1995 a payment was made by the HMA from Check # 8641 in the
amount of $1017.97 to McQuown Business Services, Inc. for the phone system.
a. On February 14, 1996 the balance was paid by the authority in the amount
$1017.97 from Check # 8799.
b. Payment was made from the Capital Improvement Fund.
24. On March 24, 1996 McQuown Business Services, Inc. billed the Houtzdale
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Municipal Authority for additional Digital Electronic Telephones in the amount of
$390.00.
a. The HMA made payment in the amount of $390.00 on April 11, 1996 from
Check # 8892.
b. Payment was made from the Capital Improvement Fund.
25. On or around March 2005 the board members of the HMA informally decided to
upgrade the phone system at the water plant.
a. Minutes of the HMA Board meetings do not reflect a vote was ever taken to
authorize McQuown Business Services, Inc. to upgrade the phone system at
the offices of the water filtration plant.
b. The minutes of the meetings are the official record of the HMA.
26. The HMA did not publicly advertise or accept bids to upgrade the telephone system.
a. The matter was not discussed at a regular or special board meeting.
b. McQuown Business Services, Inc. never submitted a quote.
27. McQuown performed the services in relation to upgrading the HMA telephone
system.
a. On March 8, 2005 McQuown purchased the equipment that upgraded the
telephone system for the HMA from Graybar.
b. Graybar is a wholesale distributor of electrical and telecommunications
products.
28. Graybar Invoice # 907579864 reflects the telephone equipment that McQuown
Business Services, Inc. was billed for on Order Number 33172 in the amount of
$3,502.54 for the HMA:
Quantity Description of Equipment Cost
1 DX80 816 P KG 1, 299.00
8 Dit Dig Exec Tele $1,008.00
1 4PT DX HD VM Card W /Modem $1,195.54
Total- $3,502.54
29. On April 30, 2005 Graybar billed McQuown Business Services, Inc. for the
equipment sold under Order Number 33172.
a. There was a credit of $117.01 for overpayment of a prior bill that amounted
to a balance owed of $ 3,385.53.
b. Total payment was received by Graybar from McQuown Business Services,
Inc. for the cost of the equipment on May 20, 2005 in the amount $3,385.53.
30. McQuown purchased a Comdial Telephone System from GrayBar for the upgrade
to the telephone system at the HMA.
a. Comdial became part of Vertical Communications, Inc. effective September
28, 2005.
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Page 6
b. Comdial is a Converged Voice and Data Solutions Provider.
c. Comdial provides their equipment through authorized dealers.
31. McQuown is an authorized dealer for Comdial (Vertical Communications, Inc.).
a. McQuown has been an authorized dealer for Comdial since at least 1995.
32. An appointment to be a Comdial Dealer is generally limited to the geographic area
that is within a 50 -mile radius from the dealer's headquarters listed in their
application.
a. It is the dealer's responsibility to market, promote and sell the products to
customers in their territory.
b. The dealer must install, support, and maintain all products sold.
33. McQuown installed a Comdial System for the HMA in 1995 when he was awarded
the bid.
a. McQuown also used Comdial when he upgraded the telephone system in
2005 without submitting a bid.
34. On May 10, 2005 McQuown Business Services, Inc. billed the HMA on Invoice #
920 in the amount of $3,770.00 to upgrade the phone system.
a. The services provided included software, firmware, and hardware upgrades
for telephone communications equipment.
35. The bill McQuown Business Services, Inc. submitted to the HMA to upgrade the
phone system is the only record on file with the authority confirming upgrades to the
phone system.
36. On May 10, 2005 the HMA made a payment from the Capital Improvement Fund on
Check # 1313 in the amount of $3,770.00 to McQuown Business Services, Inc.
a. The check referenced Invoice # 920.
b. Jerry McQuown signed the check in his capacity as the Secretary of the
HMA.
c. The check was deposited into an account for McQuown Business Services,
Inc. at the County National Bank.
37. Services performed by McQuown Business Services, Inc. for the HMA in 2005 were
in excess of $500.00 and were not publicly advertised nor bid by the HMA.
38. Minutes of the HMA Board Meeting for June 21, 2005 reflected payments for capital
improvement disbursements were unanimously approved by the board members
which included the payment made to McQuown Business Services, Inc.
a. McQuown was present for the meeting.
b. McQuown did not publicly disclose that a payment was being approved from
the capital improvement fund which included a payment made to his
business.
McQuown, 05 -029
Page 7
39. As part of a sworn statement on March 27, 2006 to Ethics Commission
Investigators, McQuown provided the following information:
a. McQuown claimed he was contacted by HMA Manager John Fudrow about
upgrading the telephone system on or around November 2004.
b. McQuown claimed that at a March meeting of the HMA in 2005 the board
decided to upgrade the telephone system.
1. McQuown alleged that he abstained from voting.
c. McQuown admitted that he signed HMA Check # 1313 made payable to
McQuown Business Services, Inc in the amount of $3,770.00 in his capacity
as the Secretary of the HMA.
40. McQuown Business Services, Inc. realized a profit from the Houtzdale Municipal
Authority that totaled $ 267.32.
a. Bill to Houtzdale Municipal Authority $3,770.00
b. Cost of equipment to McQuown $3,502.68
c. Total Profit from Houtzdale Municipal Authority $ 267.32
The following findings relate to McQuown's failure to disclose information on his 2004
calendar year Statement of Financial Interests form.
41. As a Board Member of the HMA in 2005, Jerry McQuown was required to file a
Statement of Financial Interests for calendar year 2004 by May 1, 2005.
a. Section 1104 (a) of the State Ethics Act requires each public employee and
public official of the Commonwealth shall file a statement of financial
interests for the preceding calendar year with the department, agency, body
or bureau in which he is employed or to which he is appointed no later than
May 1 of each year he holds such a position and of the year after he leaves
such a position.
42. A Statement of Financial Interests (SFI) compliance review was conducted by a
State Ethics Commission Investigator on August 23, 2005 for the HMA and the
following was determined regarding SFI's [sic] filed by McQuown:
a. One form was found on file with McQuown's name on Form # SEC -1 REV.
01/04.
1. The form was not dated, not signed, and contained no information
other than name, address, public position, and political subdivision.
43. The SFI on file for McQuown failed to disclose the following information:
Item No. 7 Calendar Year
Item No. 9 Creditors
Item No. 10 Direct /Indirect Sources of Income
Item No. 11 Gifts
Item No. 12 Transportation, Lodging, Hospitality
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Item No. 13 Office, Directorship or Employment in Business
Item No. 14 Financial Interest in Any Legal Entity in Business For Profit
Item No. 15 Business Interests Transferred to Immediate Family Member
The form was not signed or dated.
44. McQuown failed to disclose on the SFI filed for the 2004 calendar year any
pertinent financial interests including his sources of income, office, directorship, or
employment in McQuown's Business Services and his financial interest in
McQuown's Business Services.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Jeremiah H. McQuown
(McQuown), 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 McQuown, as a Member of the Houtzdale Water Authority
(HMA), violated the following provisions of the Ethics Act when he participated in actions of
HMA to award a contract in excess of $500.00 without an open and public process to
McQuown Business Services, Inc. (MBS), a business with which he is associated, to install
upgrades to HMA's phone system; when he participated in decisions to make payment to
MBS; and when he failed to disclose on his SFI for the 2004 calendar year: creditors;
direct /indirect sources of income; gifts; office, directorship or employment in any business;
financial interest in any legal entity in business for profit; and business interests
transferred to immediate family members.
Pursuant to Section 1103(a) of the Ethics Act quoted above, a public official /public
employee is prohibited from engaging in conduct that constitutes a conflict of interest.
The term "conflict of interest" is defined under Act 9 of 1989/Act 93 of 1998 as
follows:
65 Pa.C.S. §1102.
Section 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. "Conflict" or "conflict of interest" does not
include an action having a de minimis economic impact or
which affects to the same degree a class consisting of the
general public or a subclass consisting of an industry,
occupation or other group which includes the public official or
public employee, a member of his immediate family or a
business with which he or a member of his immediate family is
associated.
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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 1103(f) of Act 9 of 1989 provides:
(f) No public official or public employee or his
spouse or child or any business in which the person or his
spouse or child is associated shall enter into any contract
valued at $500 or more with the governmental body with which
the public official or public employee is associated or any
subcontract valued at $500 or more with any person who has
been awarded a contract with the governmental body with
which the public official or public employee is associated,
unless the contract has been awarded through an open and
public process, including prior public notice and subsequent
public disclosure of all proposals considered and contracts
awarded. In such a case, the public official or public employee
shall not have any supervisory or overall responsibility for the
implementation or administration of the contract. Any contract
or subcontract made in violation of this subsection shall be
voidable by a court of competent jurisdiction if the suit is
commenced within 90 days of the making of the contract or
subcontract.
65 Pa. C. S. § 1103(f).
Section 1103(f) of Act 93 of 1998 provides in part that no public official /public
employee or spouse or child or business with which he or the spouse or child is associated
may enter into a contract with his governmental body valued at five hundred dollars or
more or any subcontract valued at five hundred dollars or more with any person who has
been awarded a contract with the governmental body with which the public official /public
employee is associated unless the contract is awarded through an open and public
process including prior public notice and subsequent public disclosure.
Section 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:
(4) The name and address of each creditor to whom is
owed in excess of $6,500 and the interest rate thereon.
However, loans or credit extended between members of
the immediate family and mortgages securing real
property which is the principal or secondary residence
of the person filing shall not be included.
The name and address of any direct or indirect source
of income totaling in the aggregate $1,300 or more.
However, this provision shall not be construed to
require the divulgence of confidential information
protected by statute or existing professional codes of
ethics or common law privileges.
(5)
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(6) The name and address of the source and the amount of
any gift or gifts valued in the aggregate at $250 or more
and the circumstances of each gift. This paragraph
shall not apply to a gift or gifts received from a spouse,
parent, parent by marriage, sibling, child, grandchild,
other family member or friend when the circumstances
make it clear that the motivation for the action was a
personal or family relationship. However, for the
purposes of this paragraph, the term "friend" shall not
include a registered lobbyist or an employee of a
registered lobbyist.
(7)
(8) Any office, directorship or employment of any nature
whatsoever in any business entity.
(
The name and address of the source and the amount of
any payment for or reimbursement of actual expenses
for transportation and lodging or hospitality received in
connection with public office or employment where such
actual expenses for transportation and lodging or
hospitality exceed $650 in the course of a single
occurrence. This paragraph shall not apply to expenses
reimbursed by a governmental body or to expenses
reimbursed by an organization or association of public
officials or employees of political subdivisions which the
public official or employee serves in an official capacity.
Any financial interest in any legal entity engaged in
business for profit.
(10) The identity of any financial interest in a business with
which the reporting person is or has been associated in
the preceding calendar year which has been transferred
to a member of the reporting person's immediate family.
65 Pa.C.S. §1105(b)(4) — (10).
Section 1105(b)(4) of Act 93 of 1998 requires that every public official /public
employee and candidate list the name, address and interest rate as to any creditor who is
owed more than $6,500.
Section 1105(b)(5) of the Ethics Act, which requires that every public official /public
employee and candidate list the name and address of any direct or indirect source of
income totaling in the aggregate of $1,300 or more.
Section 1105(b)(6) of the Ethics Act requires that every public official /public
employee and candidate list the name and address of the source and amount of any gift
valued in the aggregate of $250 or more and the circumstances of each gift.
Section 1105(b)(7) of the Ethics Act requires that every public office /public
employee and candidate list the name and address of the source and the amount of any
payment for or reimbursement of actual expenses for transportation and lodging or
hospitality received in connection with public office or employment where such actual
expenses for transportation and lodging or hospitality exceed $650 in the course of a
single occurrence.
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Section 1105(b)(8) of the Ethics Act requires that every public official /public
employee and candidate list any office, directorship or employment of any nature
whatsoever in any business entity.
Section 1105(b)(9) of the Ethics Act requires the filer to disclose any financial
interest in any legal entity engaged in business for profit.
Section 1105(b)(10) of the Ethics Act requires the reporting of the identity of any
financial interest that the filer transferred in the preceding calendar year to an immediate
family member.
facts.
Having noted the issues and applicable law, we shall now summarize the relevant
Since January 2005, McQuown has served on the seven member HMA Board,
which has three officer positions: Chairman, Vice Chairman and Secretary. In a private
capacity, McQuown is the owner /operator of MBS, a business that provides telephone,
welding and trucking services along with other functions.
When the HMA Board authorized the construction of the water filtration plant, it
solicited bids for a telephone system. McQuown submitted a bid for $2035, which was one
of the four quotes that HMA received. The HMA Board accepted the quote from McQuown
who was not on the Board at that time. MBS installed the phone system and received
payment. Subsequently, MBS provided additional telephones and received an extra $390.
When the HMA Board decided in March of 2005 to upgrade its phone system, the
minutes do not reflect any vote to authorize MBS to perform the upgrade. Thus, HMA
neither publicly advertised nor accepted bids to upgrade the telephone system and MBS
never submitted a quote. Nevertheless, MBS obtained the contract.
In order to perform the upgrade services to the HMA telephone system, McQuown
purchased equipment from Graybar, which is a wholesale distributor of electrical and
telecommunications products. McQuown purchased a Comdial Telephone System from
Graybar at a cost of $3,385.53.
McQuown installed the Comdial System for HMA and submitted an invoice in the
amount of $3,770. On May 10, 2005, HMA made payment in the amount of $3,770.00 to
MBS. McQuown signed the check in his capacity as HMA Secretary. That check was
subsequently deposited into MBS's account.
Although the contract between MBS and HMA exceeded $500, there was no
solicitation for bids as to the telephone system upgrade project. The minutes of the HMA
Board meeting for June 21, 2005 reflect a unanimous approval of bills that included the
payment to MBS. McGowan, who was present at that meeting, did not publicly disclose
that the approval action included a payment to his business.
McQuown asserts that he was contacted by the HMA Manager about upgrading the
telephone system. McQuown concedes that in his capacity as HMA Secretary, he signed
the check in the amount of $3,770.00 that was payable to his business, MBS, for the
telephone system upgrade. Lastly, in that the bill to the HMA was $3,770.00 and
McGowan's cost for the equipment was $3,502.68, the total profit that MBS realized on the
transaction was $267.32.
In that McQuown was a HMA Board Member in 2005, he was required to file an SFI
for the calendar year 2004 on or before May 1, 2005. When a compliance review was
conducted at HMA in August 2005, it was found that McQuown did not date, sign or
provide any financial information other than his name, address, public position and political
McQuown, 05 -029
Page 12
subdivision. McQuown failed to provide information as to creditors, direct/indirect sources
of income, gifts, transportation /lodging /hospitality, office /directorship /employment and
business, financial interest in any legal entity and business for profit, and business interest
transferred to an immediate family member. Thus, McQuown failed to disclose any
pertinent financial information on his 2004 calendar year SFI.
Having summarized the above relevant facts, we must now determine whether the
actions of McQuown violated Sections 1103(a), 1103(f) and 1105(b)(4) — (10) of the Ethics
Act.
In applying the provisions of Section 1103(a) of the Ethics Act, there were uses of
authority of office by McQuown. But for the fact that McQuown was a HMA Board Member
and Secretary, he would not have been in a position to participate in the process to
approve payments, including the payment to MBS for the installation of the upgrade to the
telephone system. Further, as HMA Board Secretary, McQuown signed the check in
payment to MBS. Such actions were uses of authority of office. See, Juliante, Order 809.
Such uses of authority of office resulted in a private pecuniary benefit to MBS in the
amount of $267.32. See, Fact Finding 40. That private pecuniary benefit inured to MBS, a
business with which McQuown is associated as that term is defined under the Ethics Act.
Accordingly, under such circumstances, all the elements for a violation of Section 1103(a)
exist.
However, there are two exclusions to Section 1103(a) regarding actions that would
otherwise constitute a conflict. One of those exceptions is the de minimis exclusion.
Based upon a case by case review, if the resultant private pecuniary benefit is of an
economic consequence that has an insignificant effect (de minimis), such action does not
constitute a conflict. See, Schweinsburq, Order 900. See also, Bixler v. State Ethics
Commission, 847 A.2d 785 (Pa. Commw. 2004). In this case, the financial gain only
amounted to $267.32. Accordingly, McQuown did not violate Section 1103(a) of the Ethics
Act when he participated in actions of the HMA Board as to a telephone upgrade system
that was installed by a business with which he was associated in that the private pecuniary
benefit received was de minimis. See, Rietscha, Order 1366.
As to Section 1103(f) of the Ethics Act, this provision allows for contracting by a
public official, spouse, child or business with which associated. However, if the contract is
$500 or more, it must be awarded through an open and public process. For the upgrade to
HMA's telephone system, the Board neither advertised nor received any bids for the
project. MBS merely installed the telephone system upgrade for HMA without following a
bid solicitation process. Accordingly, McQuown violated Section 1103(f) of the Ethics Act
when he, through a business with which he is associated, entered into a contract in excess
of $500 with his governmental body, HMA, where the contract was not awarded through an
open and public process. See, Zepp, Order 1324.
Turning to the 2004 calendar year SFI allegation, the record reflects that McQuown
failed to disclose any financial interests on his SFI as well as failed to sign and date the
form. To say that McQuown's 2004 calendar year SFI was deficient would be a gross
understatement. The legal requirement for filing SFIs was enacted by the General
Assembly to assure the public that the financial interests of public officials /public
employees, nominees or candidates, do not conflict with the public trust. McQuown's
action in filing his 2004 calendar year SFI reflects a total disregard of the public trust.
Accordingly, McQuown violated Section 1105(b) in each instance when he failed to
list on his 2004 calendar year SFI the respective categories of financial interests that are
required to be disclosed under the Ethics Act. McQuown is directed to file within 30 days
of the date of the mailing of this Order an amended SFI for the calendar year 2004 that will
provide a complete and accurate disclosure of his financial interests. McQuown must
complete Blocks 1 through 7, and the financial disclosures for Blocks 8 through 15.
McQuown, 05 -029
Page 13
McQuown must further sign and date the amended SFI. The original of the form must be
filed with the HMA with a copy filed with this Commission for compliance verification
purposes. Failure to comply will result in the institution of an enforcement action.
IV. CONCLUSIONS OF LAW:
1. Jeremiah H. McQuown ( "McQuown "), as a Member and Chairperson of the
Houtzdale Water Authority ( "HMA "), Clearfield County, is a public official subject to
the provisions of Act 9 of 1989 as codified by Act 93 of 1998.
2. McQuown did not violate Section 1103(a) of the Ethics Act when he participated in
actions of the HMA Board as to a telephone upgrade system that was installed by a
business with which he was associated in that the private pecuniary benefit of
$267.32 was de minimis.
3. McQuown violated Section 1103(f) of the Ethics Act when he, through a business
with which he is associated, entered into a contract in excess of $500 with his
governmental body where the contract was not awarded through an open and
public process.
4. McQuown violated Section 1105(b) in each instance when he failed to list on his
2004 calendar year SFI the respective categories of financial interests that are
required to be disclosed under the Ethics Act.
In Re: Jeremiah H. McQuown,
Respondent,
ORDER NO. 1396
File Docket: 05 -029
Date Decided: 5/31/06
Date Mailed: 6/2/06
1. Jeremiah H. McQuown, as a Member and Chairperson of the Houtzdale Water
Authority, Clearfield County, did not violate Section 1103(a) of the Ethics Act when
he participated in actions of the Board as to a telephone upgrade system that was
installed by a business with which he was associated in that the private pecuniary
benefit of $267.32 was de minimis.
2. McQuown violated Section 1103(f) of the Ethics Act when he, through a business
with which he is associated, entered into a contract in excess of $500 with his
governmental body where the contract was not awarded through an open and
public process.
3. McQuown violated Section 1105(b) in each instance when he failed to list on his
2004 calendar year SFI the respective categories of financial interests that are
required to be disclosed under the Ethics Act.
4. McQuown is directed to file within 30 days of the date of mailing of this Order an
amended SFI for the calendar year 2004 that will provide a complete and accurate
disclosure of his financial interests. The original SFI will be filed with the Houtzdale
Water Authority with a copy filed with this Commission for compliance verification
purposes. Failure to comply will result in the institution of an enforcement action.
BY THE COMMISSION,
Louis W. Fryman, Chair