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HomeMy WebLinkAbout1403 Nagele, Jr.In Re: Ray Nagele, Jr. Respondent File Docket: 05 -037 X -ref: Order No. 1403 Date Decided: 6/23/06 Date Mailed: 6/30/06 Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Raquel K. Bergen Nicholas A. Colafella 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. 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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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. Nagele, 05 -037 Page 2 I. ALLEGATION: That Ray Nagele, Jr., a (public official /public employee) in his capacity as a Supervisor of Overton Township, Bradford County violated Sections 1103(a), 1104(a) and 1104(d) of the State Ethics Act (Act 93 of 1998) when he used the authority of his office for private pecuniary gain, including but not limited to claiming and accepting compensation as a township roadmaster in excess of that approved by the township auditors and when he participated in actions of the Board of Supervisors to approve payments to himself; when he failed to file a Statement of Financial Interests for the 2002 calendar year by May 1, 2003; when he subsequently backdated a SFI for the 2002 calendar year giving the appearance that the form was timely filed; and when he participated in discussions and actions of the board of supervisors; including but not limited to, voting to approve payments, expenses, including attorney fees, for a personal legal matter. II. FINDINGS: 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that Ray Nagele, Jr. 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 September 29, 2005. 3. The preliminary inquiry was completed within sixty days. 4. On November 21, 2005, a letter was forwarded to Ray Nagele, Jr., 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 0750 0002 8074 7698. b. The domestic return receipt bore the signature of Raymond C. Nagele, Jr., with a delivery date of November 23, 2005. 5. On April 28, 2006, an amended Notice of Investigation was forwarded to Raymond C. Nagele, Jr., by the Investigative Division of the State Ethics Commission informing him that the allegations contained in the November 21, 2005, Notice of Investigation were being amended. a. Said letter was forwarded by certified mail, no. 7004 2890 0004 1229 2776. b. The domestic return receipt bore the signature of Kathy Quail, with a delivery date of May 1, 2006. 6. Periodic notice letters were forwarded to Ray Nagele, Jr. in accordance with the provisions of the Ethics Law advising him of the general status of the investigation. 7 The Investigative Complaint was mailed to the Respondent on May 5, 2005. 8. Raymond C. Nagele, Jr. has served as a supervisor for Overton Township, Bradford County since January 2002. a. Nagele has served as the chairman of the Townships Board of Supervisors since January 2004. Nagele, 05 -037 Page 3 b. Nagele also serves as the township's treasurer, roadmaster, and laborer. 1. Nagele has served as township roadmaster since 2004. 9. Overton Township is a second class township with a three member board of supervisors. 10. During 2004, all three members of the Overton Township Board of Supervisors were employed by the township road department. a. The township's road crew consists only of the three supervisors. 11. Typical job duties for the township's road crew include, but may not be limited to the following: a. Repairing township roads. b. Maintenance of township equipment. c. Cutting and removing brush and debris. d. Plowing snow from township roads. 12. All compensation received by the supervisors employed by the township is set annually by the Overton Township Board of Auditors. a. The board of auditors consists of three elected township residents. b. The setting of compensation by the auditors is consistent with Section 65606(a) 53 P.S. 65606 of the Second Class Township Code relating to compensation of working supervisors and reads in part: The compensation of supervisors, when employed as roadmasters, labormen, secretary, treasurer... or in any employee capacity... shall be determined by the board of auditors, at an hourly, daily, weekly, semi - monthly or monthly basis." c. Overton Township working supervisors are compensated at an hourly rate. 13. On or around the first of each year the board of auditors hold their annual meeting to decide the hourly rate and benefits that will be paid to the board of supervisors. a. Hourly rates are motioned and approved for each working supervisor. b. The hourly rates and benefits are recorded by the secretary of the auditors in the meeting minutes. 14. At the board of auditors annual meeting on January 6, 2004, the working supervisors hourly rate for 2004 was set. a. Ray Nagele 8.90 /hr b. Joe Hoover 7.50 /hr c. Gene Carner 12.00 /hr Nagele, 05 -037 Page 4 15. The Overton Township Board of Supervisors hold one public meeting per month, which schedule is set during the annual reorganization meeting. 16. Minutes from the Overton Township Board of Supervisors meeting reflect the following type of activities that typically occur during a meeting. a. The attendance of supervisors, township officials and guests are recorded. b. The prior month's meeting minutes are read and approved. c. The monthly treasurer's report is read and approved. d. Township activities are discussed. e. Public comment is heard. 17. During a supervisors meeting on February 4, 2004, Supervisors Nagele and Hoover voiced their disapproval of the hourly rate set by the auditors on January 6, 2004. a. Nagele solicited the support of his friends to attend and show their disapproval of the rate set. b. Meeting minutes indicate that "Sid and Dave Hatch, Leo and Barry Young, Ronald Bahl, Bill Dumfee, and Don Robe attended the meeting as they did not agree with the wages set by the auditors." 18. The supervisors scheduled a joint meeting to be held with the township auditors during the supervisors' meeting on March 3, 2004, to agree on a new hourly wage for working supervisors. 19. The March 10, 2004 special meeting was held with all three supervisors and auditors Katherine Chase and Betty Bahl in attendance. a. Auditors minutes and supervisors minutes indicate auditor Shirley Bird was not in attendance. 20. Overton Township Board of Auditors minutes from March 10, 2004 set the monthly rate for the working supervisors as follows: Ray Nagele, Jr. Joe Hoover Gene Carner $11.00 /hr $10.00 /hr $12.50/hr a. The minutes from the meeting contains [sic] the signatures of both auditors in attendance (Chase and Bahl). 21. During the special meeting on March 10, 2004, auditors Chase and Bahl agreed upon the hourly rates and recorded them on a note card. a. Auditor Chase read the amounts decided by the auditors, from the note card to those in attendance. 22. Township Secretary Doris Dibble recorded the amounts to be paid to Hoover and Nagele in the supervisors' minutes for the March 10, 2004 meeting at $1.00 /hour more than approved by the auditors on March 10, 2004 as shown below: Ray Nagele 12.00 /hr Nagele, 05 -037 Page 5 Joe Hoover 11.00 /hr Gene Carner 12.50/hr 23. Township Secretary Dibble's minutes from March 10, 2004, indicate that the amounts be paid retroactively to January 1, 2004. a. The board of auditor minutes from March 10, 2004, do not include the retroactive wording. 24. During the board of supervisors meeting held on April 7, 2004, Dibble read the meeting minutes from the special meeting on March 10, 2004 for the supervisor's approval. a. Dibble read the wages decided during the meeting as follows: Ray Nagele 12.00 /hr Joe Hoover 11.00 /hr Gene Carner 12.50/hr b. Meeting minutes from April 7, 2004 show a unanimous vote for the approval of the prior months minutes. 1. The minutes and treasurers report was read and approved with Ray Nagele making the motion and Gene Carner 2 nd it." 25. Auditor Chase voiced hgr concern with the reading of the improper amounts during the Supervisors April 7 meeting. a. Auditor Chase was informed by Nagele that the discrepancy would be "taken care of ". b. Auditor Chases concerns were not recorded in the minutes. 26. Overton Township Board of Supervisors minutes do not reflect any action being taken by Supervisors Nagele or Hoover to correct the wage discrepancy. a. Supervisors Hoover and Nagele collected the higher wages throughout 2004. b. Each received a dollar an hour higher than was set by the auditors. 27. During the auditors annual meeting on January 4, 2005, the auditors learned, through a review of the prior years minutes, that the wage discrepancy was not corrected. a. "Auditors minutes were read along with the secretary's minutes. Katherine Chase noted a discrepancy in wages for Ray Nagele, Jr. and Joe Hoover, auditors had set wages at special meeting on March 10, 2004: Ray Nagele Jr. $11.00 per hour, Joe Hoover at $10.00 per hour. The secretary minutes had Ray Nagele Jr. at $12.00 an hour and Joe Hoover at $11.00 per hour." 28. A subsequent review of the payroll reports, account ledgers, and checks by the board of auditors determined that Nagele and Hoover received $1.00 per hour pay in excess of the hourly wage set by the auditors for every hour worked during 2004. 29. A special meeting was held by the board of supervisors on January 31, 2005 to correct the wage dispute. Nagele, 05 -037 Page 6 a. The board of supervisors meeting minutes indicate that no action was taken by the board of auditors. b. Supervisors Nagele and Hoover indicated that they would contact PSATS for how to correct the wage dispute. 30. Township records do not include any information from PSATS on the wage issue. a. Hoover and Nagele do not know who they spoke with at PSATS. 31. Meeting minutes from a board of supervisor's meeting on February 2, 2005 indicate that the auditors were never contacted by PSATS on how to resolve the wage dispute. 32. The board of auditors met on March 7, 2005 and set the working supervisor's wages for 2005 as follows: Ray Nagele, Jr. Joe Hoover Gene Carner 12.00 /hr 11.00 /hr 12.50/hr 33. The board of auditors approved the supervisors wages for 2005 at the same rates Hoover and Nagele received during calendar year 2004. a. The auditors made this decision in an effort to resolve the salary dispute with the supervisors. 34. On or around March 15, 2005, the board of auditors completed the calendar year 2004 audit of township books. a. The annual audit and financial report for calendar year 2004 for Overton Township that was submitted to the Commonwealth did not reflect the wage discrepancy. 35. Attached to and submitted with the annual audit and financial report was a sworn acknowledgement from Auditor Chase indicating her refusal to sign the audit due to the failure to list the $1.00 per hour received by the supervisors in excess of what was set by the board of auditors. a. "I, Katherine Chase, Secretary of the Overton Township Auditors, in good conscience cannot sign the 2004 audit for the above said township for the following reasons: 1. Two of the working supervisors were receiving one dollar per hour more than set rate for the year 2004, while knowing there was a discrepancy since April 7, 2004." 36. On or around March 22, 2005, the Department of Auditor General completed a liquid fuels tax fund audit report for Overton Township for a three year period ending December 31, 2004. a. The audit cited instances of non - compliance including "Township Supervisors paid wages in excess of amount approved by Board of Auditors." Our audit revealed that during 2004 two township supervisors were paid wages totaling $3,993.50 in excess of the amount approved by the Board of Nagele, 05 -037 Page 7 Auditors. According to the minutes of the township supervisors' meeting on March 10, 2002, one of the supervisors was to be paid $12.00 per hour and the other was to be paid $11.00 per hour. We further noted that according to the minutes from the auditors' meeting on March 10, 2004, these same supervisors were awarded wages of $11.00 per hour and $10.00 per hour respectively. Therefore, each supervisor was paid one dollar an hour more than what was approved by the Board of Auditors. The first supervisor worked 1,941.5 hours during 2004 and therefore was overpaid by $1,941.50. The second supervisor worked 2,052 hours during 2004 and was therefore overpaid by $2,052.00" b. The audit included the supervisors response to the state issue. The township supervisors stated: To address the wage problem it was a clear misunderstanding between the auditor's book and the township book. This matter was resolved at one point. Those wages of $11.00 and $12.00 were correct to the best of our knowledge. At this years auditors' meeting two certain auditors wanted to start a problem again. We the supervisors quickly addressed the situation at a special meeting. One of the auditors showed up with her resignation knowing there would be problems for what she was doing. The problem was discussed and all parties agreed that the $11.00 and $12.00 would remain, all parties signed the township minute book. At this time we assumed this problem was resolved. We then appointed a new auditor, hoping to get everything back on track. Then again the trouble returns from the auditor who was causing problems. It seems we have a problem with only one auditor who apparently is trying to make this a personal vendetta against two of the supervisors." c. The state auditor's concluded in the audit that the wages paid in excess were not in compliance because they were not approved by the auditors. "There appears to be a disagreement between the township supervisors and the township auditors regarding the appropriate wage to be paid to the supervisors. This not withstanding, the two township supervisors were paid wages totaling $3,993.50 in excess of the amount approved by the Board of Auditors. Accordingly, the findings remains as stated." 37. Working supervisors' hours are recorded on PennDOT's municipal semi - monthly payroll report from and are maintained by Secretary Dibble. a. Payroll reports record the number of hours worked on a daily basis, and a description of the work completed. b. Payroll reports record semi - monthly totals, the hourly rate of pay and the gross amount paid for the month to the employee. c. Payroll reports for working supervisors are approved on a monthly basis. d. Reports are signed by all three supervisors. 38. Supervisors Nagele and Hoover signed all payroll reports during 2004, except for the month of October 2004. Nagele, 05 -037 Page 8 a. Payroll reports for 2004 show the hourly wage of Nagele at $12.00 and Joe Hoover at $11.00. 39. Payroll reports indicate the following hours per month worked by Supervisor Nagele during 2004. Nagele, Ray Month Jan -04 Feb -04 Mar -04 Apr -04 May -04 Jun -04 Jul -04 Aug -04 Sep -04 Oct -04 Nov -04 Dec -04 Total Hours Hours Claimed 156.5 137.5 137.5 120 132 177 176 176 193 176 176 184 1941.5 40. Employee payroll checks are filled out by the township secretary on the day of a board of supervisors' meeting. a. Working supervisors' wages are paid from the township's state fund account. 41. Nagele as Overton Township Treasurer is responsible for endorsing all of the checks, along with one of the two remaining supervisors. 42. During 2004, fourteen checks were issued to supervisor Nagele for wages earned as a working supervisor. Checks were issued as follows: Ray Nagele Date 2/4/2004 3/3/2004 4/7/2004 4/7/2004 4/7/2004 5/5/2004 6/2/2004 7/7/2004 8/4/2004 9/1/2004 10/6/2004 11/3/2004 Amount $ 1,158.58 $ 1,025.32 $ 428.26 $ 370.08 $ 1,357.59 $ 1,196.22 $ 1,307.33 $ 1,714.04 $ 1,709.44 $ 1,709.44 $ 1,857.45 $ 1,707.56 Pay Rate ( /hr) $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 Endorsed Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Nagele, Hoover Check # 2302 1005 1017 1020 1027 1040 1050 1065 1078 1089 1094 1109 Nagele, 05 -037 Page 9 12/1/2004 $ 1,707.56 Nagele, Hoover 1120 12/22/2004 $ 1,774.22 Nagele, Hoover 1131 $19,023.09 Total 43. Township check numbers 1017 and 1020 in the amounts of $428.26 and $370.08 were issued to Nagele as retroactive pay from January and February 2004. a. The amounts are the difference in pay from the wages $8.90 to $12.00 for Nagele. 44. Nagele and Hoover in their official capacity as supervisors, endorsed every check issued to the two of them for wages earned as working supervisors during 2004. a. These checks were based on the hourly wages of Nagele, $12.00 and Hoover $11.00 respectively. 45. Monthly treasurer's reports are read and approved by the supervisors during their regular monthly meetings. a. The treasurer's report's are recorded as part of the monthly minutes. b. The treasurer's report includes a listing of all expenses, which includes wages paid to working supervisors for labor. 46. Nagele and Hoover, in their official capacity as supervisors, routinely voted to approve the treasurer's reports during monthly meetings, throughout 2004. a. Meeting minutes reflect the approval of the treasurers reports, including wages paid to Nagele and Hoover. b. Meeting minutes were reviewed, read, and approved without correction by supervisors Nagele and Hoover throughout 2004. 47. The one dollar per hour wage in excess of the rate approved by the auditors received by Nagele throughout calendar year 2004 resulted, in a personal financial gain of $1,941.50. a. Financial gain based on $1.00 X 1,941.50 hours = $1,941.50. 48. During the Supervisors April 6, 2005 meeting a verbal confrontation occurred between Supervisor Nagele and Auditor Katherine Chase. a. The confrontation related to Chase's failure to sign the completed audit report for calendar year 2004. b. Supervisor Nagele threatened to withhold Chase's payment for hours associated with completion of the audit report, based on her refusal to sign it. 49. Minutes from the supervisors April 6, 2005 meeting include comments from Paul Jayne, a township resident, requesting Nagele to go outside to discuss the matter further. a. Nagele informed Jayne that if we go outside, I'm going to rip your fxxxing head off ". Nagele, 05 -037 Page 10 b. As a result of Nagele's comments the Pennsylvania State Police were contacted. 50. After the supervisors April 6, 2005 meeting, PA State Police Trooper Craig Venesky interviewed Paul Jayne, Kathy Chase, and Ray Nagele. a. As a result of the interviews Ray Nagele was taken into custody and charged with simple assault, terroristic threats, and harassment. b. Nagele was arraigned that same night before DJ Timothy Clark and posted bail. 51. Nagele's bail was set at $1,000 of which he personally paid $150.00. a. Nagele's $150.00 payment was reimbursed to him by way of Township Check Number 1212 dated May 4, 2005 in the amount of $250.00. b. The additional $100.00 was reimbursement for the retainer Nagele paid to Attorney Rinaldo DePaola for Nagele's defense. c. This check contained the signatures of Nagele and Hoover and was approved by the board of supervisors on May 4, 2005 with Nagele participating. 52. On April 28, 2005 Attorney DePaola invoiced Nagele personally in the amount of $400.00 for legal services provided. a. DePaola's invoice was for the following services: Initial consultation on April 12, 2005; legal research, preparation for the attendance at scheduled preliminary hearing on April 27, 2005. b. DePaola's invoice included a $100.00 credit for a retainer previously paid by Nagele. 53. DePaola's April 28, 2005 invoice was submitted by Nagele to the township for payment. a. Township check number 1213 dated May 4, 2005 in the amount of $400.00 was issued to DePaola. b. Nagele and Hoover signed the check, which was approved by the board for payment, on May 4, 2005 with Nagele's participation. 54. A preliminary hearing for the charges against Nagele was scheduled to be held at DJ Clark's office on April 27, 2005. a. District Attorney Downs interviewed witnesses for Nagele in the parking lot prior to the hearing. b. Based on the interviews conducted by Downs, he withdrew the charges without prejudice with a continuing investigation into the matter. c. Charges were withdrawn and a preliminary hearing was not held. 55. On July 12, 2005, Pennsylvania State Police Trooper James Kerrich filed a summary non - traffic citation in District Court against Nagele for harassment. Nagele, 05 -037 Page 11 a. The charge stemmed from a series of actions by Nagele against Auditor Chase during township meetings. 56. Nagele was found not guilty" on the charge of harassment during a summary hearing before DJ Clark on September 6, 2005. a. The disposition in the matter resulted in the case being closed. 57. On September 12, 2005, Attorney DePaola invoiced Nagele personally in the amount of $300.00 for legal services provided. a. DePaola's invoice was for the following services: review of paperwork, telephone calls with Nagele and DJ Clark, attendance at hearing, and other miscellaneous services rendered to date. 58. DePaola's September 12, 2005 invoice was submitted by Nagele to the township for payment. a. Township Check Number 1279 dated October 5, 2005 in the amount of $300.00 was issued to DePaola. b. Nagele and Hoover signed this check, which was approved by the board for payment, on October 5, 2005 with Nagele's participation. 59. Nagele received a private pecuniary gain as a result of his actions as a township supervisor by submitting and participating in actions of the board to reimburse him for bail fees and to pay his attorney fees for a personal legal matter relating to criminal charges. a. Bail $150.00 b. Legal Fees $800.00 Total: $950.00 THE FOLLOWING FINDINGS RELATE TO THE ALLEGATIONS CONCERNING NAGELE FAILING TO FILE STATEMENTS OF FINANCIAL INTERESTS. 60. As supervisor for Overton Township, Nagele was required annually to file a Statement of Financial Interests form by the May 1 deadline, containing information for the prior calendar year. 61. Statements of Financial Interests forms on file with Overton Township include the following filings by Nagele: a. Calendar Year: 2000 Filed: 06/28/01 on SEC form 01/01 Occupation: Self employed, Livestock Hauler Direct /Indirect Income: Self employed, Nagele Livestock Hauling, RR2 Box 52, New Albany, PA 18833 All other Financial Interests: Owner operator for self employed business. b. Calendar Year: 2001 Filed: 01/14/02 on SEC form 01/02 Occupation: Self employed All other Financial Interests: None Nagele, 05 -037 Page 12 c. Calendar Year 2002 — No form on file. d. Calendar Year 2003 Filed: 01/20/04 on SEC form 01/04 Position: Supervisor Creditors: None Direct /Indirect Income: Overton Township, Nagele's Livestock Hauling All other Financial Interests: None e. Calendar Year: 2004 Filed: 01/05/05 on SEC form 01/05 Position: Supervisor Occupation: Laborer Direct /Indirect Income: Overton Township All other Financial Interests: None 62. Nagele failed to file a Statement of Financial Interests form with the township for calendar year 2002 by May 1, 2003. 63. Nagele did not disclose his financial interest in Nagele Livestock Hauling on SFI's filed for the 2000, 2001, 2003, and 2005 calendar years. a. Nagele did not list his income from Nagele Livestock Hauling on his SFI filed for the 2004 calendar year. 64 Nagele was interviewed by Investigators from the State Ethics Commission on April 20, 2006. a. During the interview, Nagele's failure to file SFI's for calendar years 2002 and 2003 was discussed. b. Nagele indicated that he would attempt to locate the SFI for the 2002 calendar year. 65. Nagele stated, during a phone conversation with SEC Investigators on April 21, 2006, that he has "found" his calendar year 2002 and 2003 SFI's among township records. 66. On April 21, 2006 at 12:58 p.m., Nagele faxed SFI's for calendar years 2002 and 2003 to the State Ethics Commission. Nagele's SFI's included the following information: a. Calendar Year: 2002 Filed: 01/10/03 on SEC form 01/06 Position: Supervisor Creditors: None Direct /Indirect Income: Nageles Livestock Hauling All other Financial Interests: None b. Calendar Year: 2003 Filed: 01/20/04 on SEC form 01/04 Position: Supervisor Creditors: None Direct /Indirect Income: Overton Township, Nageles Livestock Hauling All other Financial Interests: None 67. The Statement of Financial Interests filed by Nagele for the 2002 calendar year was Nagele, 05 -037 Page 13 filed on a form with a revision date SEC -1 Rev. 01/06. 68. Form SEC -1 Rev. 01/06 was not available to municipalities for completion in January 2003. 69. Nagele's SFI submitted to the State Ethics Commission on April 21, 2006 for calendar year 2002 was backdated to create the impression of a timely filing. a. SFIs with a revision date of SEC -1 REV. 01/06 were not received by the Administrative Division of the State Ethics Commission until December2005. b. Those forms were not distributed to municipalities until December 2005. c. Nagele attempted to deceive SEC Investigators by backdating his form and then advising them that he had "found" the missing form. 70. In 2002, the year he failed to file a SFI, Nagele received supervisor's wages totaling $989.50. 71. Nagele realized a private pecuniary gain of $1,941.50 as a result of the use of the authority of his public position as Overton Township Supervisor to obtain compensation not approved by the auditors and when he submitted and voted to pay bills related to private legal work and expenses. a. Nagele received a private pecuniary gain of $1,941.50 as a result of approving compensation in excess of the auditor approval. b. Nagele submitted and voted to pay /reimburse legal expenses totaling $950.00. c. Private pecuniary gain totaled $2,891.50. III. DISCUSSION: At all times relevant to this matter, the Respondent, Ray Nagele, Jr. (Nagele), 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 Nagele, as an Overton Township Supervisor, violated Sections 1103(a), 1104(a) and 1104(d) of the Ethics Act when he used the authority of his office for private pecuniary gain by claiming and accepting compensation as a township roadmaster in excess of that approved by the township auditors and by participating in actions of the Board of Supervisors to approve payments to himself; when he failed to file a Statement of Financial Interests (SFI) for the 2002 calendar year by May 1, 2003; when he subsequently backdated an SFI for the 2002 calendar year giving the appearance that the form was timely filed; and when he participated in discussions and actions of the Board of Supervisors to approve attorney's fees and bail for personal legal matters. 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: Section 1102. Definitions Nagele, 05 -037 Page 14 "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 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. Statement of financial interests required to be filed (a) Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 Pa.C.S. §1104(a). Section 1104(a) of the Ethics Law quoted above requires that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. Section 1104(d) of the Ethics Law provides: Section 1104. Statement of financial interests required to be filed. Nagele, 05 -037 Page 15 facts. (d) No public official shall be allowed to take the oath of office or enter or continue upon his duties, nor shall he receive compensation from public funds, unless he has filed a statement of financial interests as required by this act. 65 Pa.C.S. §1104(d). Having noted the issues and applicable law, we shall now summarize the relevant Nagele has served as an Overton Township Supervisor in Bradford County since January 2002. The Board of Supervisors consists of three members with Hoover serving as Vice Chairman and Nagele as Chairman since January of 2004. All three supervisors were employed in 2004 by the Township Road Department that solely consists of those three individuals. The road crew typically repairs township roads, maintains township equipment, cuts and removes brush and debris, and plows snow from the township roads. The compensation for the supervisors as township employees is set by the Township Board of Auditors. The Board of Auditors usually meets in early January of each year to set the hourly rate and benefits that will be paid to the supervisors as working employees. For the calendar year 2004, the Board of Auditors set the hourly rate of compensation for Nagele at $8.90 and for Hoover at $7.50. During a Board of Supervisors Meeting in February 2004, Nagele and Hoover expressed disapproval at the hourly rate set by the auditors in January. The supervisors then scheduled a joint meeting with the auditors for March 3, 2004 for the purpose of setting a new hourly wage rate for the working supervisors. At a March 10, 2004 special meeting held among the three supervisors and two of the three auditors, the auditors set the hourly rate for Nagele at $11.00 and for Hoover at $10.00. The minutes of that meeting contain the signatures of two auditors, one of whom read the hourly rates from a note card. However, the Township Secretary recorded the amounts at $1.00 per hour higher, that is, $12.00 for Nagele and $11.00 for Hoover. Those minutes further indicate that the amounts were to be paid retroactively to January 1, 2004 despite the fact that the minutes of the Board of Auditors did not reflect any provision for retroactive application. The minutes for the meeting of the Board of Supervisors were unanimously approved at a subsequent meeting in April 2004. After Auditor Chase raised the issue that the hourly rates for Nagele and Hoover were incorrect, Nagele responded that the discrepancy would be "taken care of ". Fact Finding 25. However, neither Nagele nor Hoover corrected the wage discrepancy and continued to collect wages at the higher unauthorized rate throughout 2004. At the annual meeting of the Board of Auditors on January 4, 2005, they learned from a review of the Board of Supervisors minutes that the wage discrepancy was not corrected. A review of the payroll reports revealed that Nagele and Hoover received $1.00 per hour pay more than approved by the auditors. At a special meeting of the Board of Supervisors on January 31, 2005, the matter of correcting the wages was raised with no action being taken. During the year 2004, Nagele and Hoover signed all payroll reports, except for the month of October, with the payroll reports reflecting the hourly wage for Nagele at $12.00 and for Hoover at $11.00. At a meeting of the Board of Auditors in March 2005, the supervisors' wages were set for Nagele at $12.00 per hour and Hoover at $11.00 per hour. The Board of Auditors approved the wages for Hoover and Nagele in 2005 to be the same as they actually received in 2004. After the Board of Auditors completed the calendar year 2004 audit of the Township books, Auditor Chase refused to sign the audit due to the omission of a statement that the supervisors received $1.00 per hour in excess of that which had been Nagele, 05 -037 Page 16 set by the Board of Auditors. In March of 2005, the Department of Auditor General performed a liquid fuel tax fund audit in the township for a three year period and noted that two Township Supervisors received wages in excess of the rate approved by the Board of Auditors. It was determined that in 2004, Nagele and Hoover received $3,993.50 in excess wages. The Township Supervisors responded to the Auditor General's finding by stating the wage problem was a misunderstanding that was resolved at one point. The Auditor General concluded that the wages paid were in excess of that which had been approved by the Board of Auditors. During 2004, 14 checks totaling $19,023.09 were issued to Nagele for wages earned as a working supervisor. Two checks issued to Nagele in that period included retroactive pay for January and February of 2004. Nagele and Hoover, in their official capacities, endorsed every check issued to them for wages earned as working supervisors in 2004. Nagele and Hoover also routinely voted to approve Treasurer reports in 2004 that included wages paid to them. The $1.00 per hour excess wage that was not approved by the Board of Auditors totaled $1,941.50 for Nagele in 2004. During an April 6, 2005 meeting of the Board of Supervisors, a verbal altercation occurred between Nagele and Auditor Chase as to her failure to sign the completed audit report for the 2004 calendar year. Nagele threatened to withhold Chase's payment for hours associated with completing the report. Separate and apart from the above, a Township resident made comments and suggested that he and Nagele could discuss the matter further. Nagele responded with a threatening and vulgar statement to the resident. See, Fact Finding 49. As a consequence, Nagele was charged, taken into custody and arraigned before a District Justice. Nagele retained private counsel who billed Nagele in the amount of $400 for the legal services in preparation of Nagele's preliminary hearing. Nagele subsequently submitted the invoice to the Township for payment. The Board of Supervisors, with Nagele's participation, approved the payment and then Nagele and Hoover co- endorsed the check to the attorney. Several months later, a Pennsylvania State Trooper filed a Summary Non - Traffic Citation against Nagele for harassment. Once again, Nagele retained the services of the same attorney who issued a bill in the amount of $300 for legal services to Nagele. Nagele submitted that bill to the Township that was approved by the Board of Supervisors with Nagele's participation. Further, Nagele and Hoover co- endorsed the township check that was issued in payment to the attorney. In that the Township paid for Nagele's bail in the amount of $150, the total pecuniary benefit that Nagele received relating to legal expenses of a personal nature amounted to $950, that is, $800 for legal services and $150 for bail. Turning to the matter of SFIs that Nagele is required to file as a Township Supervisor, he failed to file his calendar year 2002 SFI by May 1, 2003. In addition, Nagele did not disclose his financial interest in Nagele Livestock Hauling for the SFIs filed for calendar years 2000, 2001, 2003 and 2005. Nagele did not list his income from Nagele Livestock Hauling on his 2004 calendar year SFI. When Nagele was interviewed by an investigator of this Commission regarding his failure to file SFIs for the calendar years 2002 and 2003, Nagele responded in a subsequent telephone conversation that he had "found" the 2002 and 2003 SFIs among Township records. See, Fact Findings 65, 69. Nagele faxed the two forms to this Commission. However, the purported filing for the 2002 calendar year was on an SFI form with a revision date, SEC -1 REV.01 /06. In that the form did not exist at the time of the purported filing by Nagele, the form was backdated so as to give the impression of a timely filing. Nagele, 05 -037 Page 17 Having summarized the above relevant facts, we must now determine whether the actions of Nagele violated Sections 1103(a), 1104(a) and 1104(d) of the Ethics Act. Initially, we must consider a procedural issue that has arisen regarding the failure to timely file an Answer to the Investigative Complaint. The pleading stage in this case began with the issuance of the Investigative Complaint on May 5, 2006. On its face, the Investigative Complaint stated that an Answer had to be received at this Commission within thirty (30) days of issuance and that the Respondent should take that document immediately to an attorney. No Answer was received by the June 5, 2006 deadline. A Petition to File Answer Nunc Pro Tunc with proffered Answer attached was received on June 14, 2006. In the Petition, Counsel states that he met with Respondent on May 11, 2006 to review the Investigative Complaint. In the following week, counsel experienced medical problems, went to a hospital emergency room on May 21, 2006 and underwent surgery a few days later. Thereafter, counsel only worked part -time until June 12, 2006. As a consequence, an Answer was not filed by the June 5, 2006 deadline. The Investigative Division has filed an Answer and Memorandum opposing the Respondent's Petition. The Investigative Division proffers the following: • Special Investigator Pat McEvoy contacted counsel as Township Solicitor and counsel did not represent the Respondent at that time; • Counsel has not proffered a responsive Answer but rather a counter Position Statement; • Counsel in the proffered Answer failed to specifically address the averments in the Investigative Complaint so that the Answer is legally deficient; • Counsel's Petition seeks permission to file nunc pro tunc based upon attorney negligence rather than on unforeseen /extraordinary circumstances that would make it impossible to timely file; • Counsel submits a request that has no legal basis for the requested relief; • Counsel has not even alleged fraud or a breakdown in the mail system, which are bases for granting a nunc pro tunc filing of an answer; • Counsel has not demonstrated non - negligent exceptional circumstances to justify the grant of requested relief; • An administrative agency may not extend statutory deadlines as a matter of grace; • The Commission has established an extraordinary high standard for allowing an untimely answer or appeal; • Respondent has failed to meet the high burden for filing an answer beyond the statutory deadline; • Attorney negligence does not provide a basis for allowing the filing of a late Nagele, 05 -037 Page 18 answer; • The Commission adopted the high standard for allowing the filing of untimely answers from court decisions in Pennsylvania; • Respondent has presented no evidence to warrant the grant of a filing of an Answer Nunc Pro Tunc; • Respondent has not established any non - negligent exceptional circumstance for the grant of the requested relief; • The Commission in numerous prior cases has followed prior precedent of the courts and its own precedent in denying requests for filing answers nunc pro tunc that do not meet the stringent criteria for allowance; • The Commission denied a request for filing an Answer Nunc Pro Tunc in Scales, Order 1394, based upon counsel's claimed incapacity from a recent surgery; and • Respondent has failed to establish any basis for the grant of his Petition to File an Answer Nunc Pro Tunc. It is clear under the Ethics Law and Regulations that a response to the Investigative Complaint must be received within 30 days. 65 Pa.C.S. §1108(e); 51 Pa.Code §21.5(k). Cf., Criss v. Wise, 566 Pa. 437, 781 A.2d 1156 (2001). As noted above, even the face sheet of the Investigative Complaint states that an Answer must be received within 30 days. In this case, a Petition to File Answer Nunc Pro Tunc with proffered Answer was received nine days after the deadline for filing an Answer. In order for a late answer to be deemed timely filed, we apply the same standard as is applied by the courts to untimely appeals. See, Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (Pa. Commw. Ct. 1984) (applying that standard in administrative proceedings to an untimely request for a hearing). The standard is that to accept the untimely filing as if it were timely, there must either have been fraud or a breakdown in the administrative process, see, West Penn Power Co. v. Goddard, 460 Pa. 551, 333 A.2d 909 (1975); Bianco v. Robinson Twp., 556 A.2d 993 (Pa. Commw. Ct. 1989), which includes the postal process (Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (1984)), or there must have been unique and compelling factual circumstances establishing non - negligent failure to file timely, Grimaud v. Dep't of Env. Resources, 638 A.2d 299 (Pa. Commw. Ct. 1994). See also, Criss v. Wise, supra. Mere delays in the U.S. mail, even during a holiday season, are considered foreseeable and avoidable and are insufficient grounds to support a Petition to File Answer Nunc Pro Tunc. Criss v. Wise, supra. None of the conditions for allowing the filing of a late Answer is present in this case. In fact, there has not even been any allegation of fraud, any breakdown in the administrative process or the mail delivery system, or any unique and compelling factual circumstances that would establish a non - negligent failure to timely file. The only argument proffered is that counsel for Respondent had surgery in May of 2006 after which he worked part -time until June 12, 2006. That argument presents no basis for allowing the filing of a late Answer. Baxter, Order No. 985. Parenthetically, we note that our Regulations allow for the filing of an application for an extension to file an Answer. 51 Pa.Code §21.5(k). No such request was made in this case prior to the filing deadline. The Petition to File Answer Nunc Pro Tunc is denied. Nagele, 05 -037 Page 19 On the substantive issues, the Investigative Division has filed a Position Statement raising the following: Nagele received a personal financial gain in excess of the rate approved by the auditors; Nagele utilized legal services of a personal nature, paid by the Township; Nagele violated the Ethics Act by providing wages to himself that were not authorized by the auditors; Nagele attempted to deceive and hence intentionally violated the Ethics Act as to his 2002 calendar year SFI; Nagele violated the Ethics Act by participating, approving and issuing payments of wages to himself in excess of the rate approved by the auditors; Nagele violated the Ethics Act when he failed to file and then backdated an SFI; and Nagele received a private pecuniary benefit of $1,940.50 in excess wages, $950 in personal legal services paid by the Township and $989.50 in salary during the year he failed to file an SFI. The Investigative Division also seeks the imposition of interest on the total payback for Nagele. Preliminarily, we again note that all the averments of the Investigative Complaint are deemed admitted as Findings of Fact. Second, although we find Nagele's uncivil conduct as to the Auditor, township resident and State Trooper (and no doubt as to other individuals) to be abhorrent, we recognize that such matters are beyond the scope of our jurisdiction. As to Section 1103(a) of the Ethics Act, there were uses of authority of office on the part of Nagele regarding the compensation that he received as a working township employee. Even though the Township Board of Auditors performed its function of setting the compensation of Nagele at $8.90 per hour in January of 2004, followed by resetting the compensation in March of 2004 at $11.00 an hour, Nagele took action to receive compensation at an unauthorized rate of $12.00 per hour, retroactive to the beginning of January of that year. In addition, Nagele participated in the payroll approval that was done on a monthly basis. Nagele also co- signed most of the payroll reports for 2004 and co- endorsed the Township checks that were issued in payment to him. All such actions were uses of authority of office. See, Juliante, Order 809. The uses of authority of office on the part of Nagele resulted in a pecuniary benefit to him consisting of the $1,941.50 that he received as a working township employee, computed as 1,941.5 hours x $1.00 per hour of additional unauthorized compensation. In that such compensation was a financial gain that was not authorized in law, it was a private pecuniary benefit. Lastly, that private pecuniary benefit inured to Nagele himself. Accordingly, Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office as a Township Supervisor to increase his rate of compensation as a working Township employee, thereby generating additional compensation of $1,941.50 to himself that was not authorized by the Township Board of Auditors. See, Hessinger, Order 931. Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office to approve excess compensation to himself and co- endorsed checks payable to himself for that unauthorized compensation. Turning to the actions of Nagele against a Township Auditor, Township resident and a State Trooper, such actions by Nagele, in addition to being totally inappropriate, crude and possibly criminal in nature, resulted in two instances where charges were filed against him. Nagele retained private counsel on those two occasions and his attorney billed for legal services totaling $800. Nagele submitted to the Township both of those legal bills as well as $150 for posting bail. But for the fact that Nagele was a supervisor, he would not have been in a position to submit such legal bills and fee to the township for payment. In addition, Nagele participated in the approval of those payments as well as co- endorsed a check in payment to his counsel. Such actions were uses of authority of office. As a result, a pecuniary benefit inured to Nagele in that he did not have any out -of- pocket expenses to pay for the legal services and bail. Lastly, that pecuniary benefit was private because there is no authorization in law for the Township to pay for those personal legal services provided to Nagele. Accordingly, Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office as to the approval and payment of attorney's fees and bail that were of a personal legal nature. See, Borland, Order 785. Nagele, 05 -037 Page 20 The last matter before us concerns the calendar year 2002 SFI that Nagele was required to file. The record reflects that Nagele did not timely file the 2002 calendar year SFI by the filing deadline of May 1, 2003. In addition, after Nagele was confronted with the failure to file, he produced a backdated SFI for the 2002 calendar year. That SFI that had a printer's revision dated SEC -1 REV.01 /06 did not exist on the date that Nagele alleged he filed the SFI. Accordingly, Nagele violated Section 1104(a) of the Ethics Act when he failed to timely file an SFI for the 2002 calendar year by May 1, 2003. See, Attardo, Order 1206. In addition, Nagele violated Section 1104(a) of the Ethics Act when he backdated for the calendar year 2002 an SFI that was prepared and submitted after May 1, 2003. See, Thomas, Order 1218. Nagele received compensation during calendar year 2002 but failed to file the requisite SFI. Accordingly, Nagele violated Section 1104(d) of the Ethics Act when he received compensation as a public official but failed to file the requisite SFI for calendar year 2002. See, Draper, Order 1229. Section 407(13)/1107(13) of the Ethics Act empowers this Commission to impose restitution in instances where a public official /public employee has obtained a financial gain in violation of the Ethics Act. Restitution is warranted in this case. Accordingly, Nagele is directed within 30 days of the date of mailing of this Order to make payment to the Commonwealth of Pennsylvania through this Commission in the amount of $2,891.50, consisting of unauthorized compensation of $1,941.50 and legal services and bail in the amount of $950. In addition to the above, Nagele will file complete and accurate SFIs /amended SFIs for the calendar years 2000 through 2005 within 30 days of the date of mailing of this Order, listing reportable financial interests, including but not limited to, the deficiencies noted above. The originals will be filed with Overton Township, with copies filed with this Commission for compliance verification purposes. Non - compliance will result in the institution of an order enforcement action. We remind Nagele that public office is a public trust. Nagele is directed to comport himself in the future so that his conduct adheres to both the letter and spirit of the Ethics Act. IV. CONCLUSIONS OF LAW: 1. Ray Nagele, Jr. (Nagele) as a Supervisor of Overton Township, Bradford County, is a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office as a Township Supervisor to increase his rate of compensation as a working Township employee, thereby generating additional compensation of $1,941.50 to himself that was not authorized by the Township Board of Auditors. 3. Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office to approve excess compensation to himself and co- endorsed checks payable to himself for that unauthorized compensation. 4. Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office as to the approval and payment by the Township of attorney's fees and bail totaling $950 that were of a personal legal nature. 5. Nagele violated Section 1104(a) of the Ethics Act when he failed to timely file an SFI for the 2002 calendar year by May 1, 2003. 6. Nagele violated Section 1104(a) of the Ethics Act when he backdated for calendar year 2002 an SFI that was prepared and submitted after May 1, 2003. Nagele, 05 -037 Page 21 7 Nagele violated Section 1104(d) of the Ethics Act when he received compensation as a public official but failed to file the requisite SFI for calendar year 2002. In Re: Ray Nagele, Jr., Respondent File Docket: 05 -037 Date Decided: 6/23/06 Date Mailed: 6/30/06 ORDER NO. 1403 1 Ray Nagele, Jr. (Nagele) as a Supervisor of Overton Township, Bradford County, violated Section 1103(a) of the Ethics Act when he used the authority of office as a Township Supervisor to increase his rate of compensation as a working Township employee, thereby generating additional compensation of $1,941.50 to himself that was not authorized by the Township Board of Auditors. 2. Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office to approve excess compensation to himself and co- endorsed checks payable to himself for that unauthorized compensation. 3. Nagele violated Section 1103(a) of the Ethics Act when he used the authority of office as to the approval and payment by the Township of attorney's fees and bail totaling $950 that were of a personal legal nature. 4. Nagele violated Section 1104(a) of the Ethics Act when he failed to timely file an SFI for the 2002 calendar year by May 1, 2003. 5. Nagele violated Section 1104(a) of the Ethics Act when he backdated for calendar year 2002 an SFI that was prepared and submitted after May 1, 2003. 6. Nagele violated Section 1104(d) of the Ethics Act when he received compensation as a public official but failed to file the requisite SFI for calendar year 2002. 7 Nagele is directed within 30 days of the date of mailing of this Order to make payment to the Commonwealth of Pennsylvania through this Commission in the amount of $2,891.50. 8. Nagele is directed to file complete and accurate SFIs /amended SFIs for the calendar years 2000 through 2005 within 30 days of the date of mailing of this Order, listing reportable financial interests, including but not limited to, the deficiencies noted above. The originals will be filed with Overton Township, with copies filed with this Commission for compliance verification purposes. 9. Failure to comply with paragraphs 7 and 8 will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair