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HomeMy WebLinkAbout1427 CharlesIn Re: Bruce Charles, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Nicholas A. Colafella Reverend Scott Pilarz 05 -036 Order No.1427 1/8/07 1/23/07 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 ( "Ethics Act "), 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 Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the Commission for consideration. The record is complete. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act 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 the Ethics Act. Any person who violates such confidentiality commits a misdemeanor and, upon conviction, may be 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. Charles, 05 -036 Page 2 I. ALLEGATIONS: That Bruce Charles, a public official /public employee, in his capacity as a Revenue Enforcement Supervisor for the Department of Revenue, Bureau of Motor Fuel Taxes, violated Sections 1103(a); 1104(a) and 1105(b)(5)(8)(9) provisions of the State Ethics Act (Act 93 of 1998), 65 Pa. .S. §§ 1103(a); 1104(a) and 1105(b)(5)(8)(9) when he failed to file a Statement of Financial Interests for the 2004 calendar year by May 1, 2005; and when he failed to disclose on Statements of Financial Interests filed for the 2002 and 2003 calendar years his interests and office directorship or shareholder in KB Designs and income received from KB Designs in excess of $1,300; and when he used the authority of his public position for a private pecuniary gain, including but not limited to, using a Commonwealth vehicle, equipment, and time for personal purposes. II. FINDINGS: 1. Charles was employed by the Pennsylvania Department of Revenue as a Revenue Enforcement Supervisor from approximately April 16, 2001, until May 6, 2005. a. Charles resigned his position effective May 6, 2005. b. Charles was assigned to the Department of Revenue's Norristown field office. 2. Charles in his official capacity as a Revenue Enforcement Supervisor had a job description which in part outlined the following duties and responsibilities and requirements: Description of Duties Supervises all Revenue Enforcement Agents and Revenue Enforcement Agent Trainees in the conduct of investigations, involving Liquid Fuels Tax, Fuel Use Tax, Oil Company Franchise Tax and Motor Carriers Road Tax; evaluates and initializes all travel expense voucher reports, monthly statistics, breakdown of all hours and cases and any pertinent reports involving all Revenue Enforcement Agents and Trainees. Participates in conferences with corporation officials, attorneys and taxpayers to resolve tax liability issues as needed. Provides cooperation an [sic] assistance to federal and local law enforcement agencies whenever possible within the policy guidelines of this Bureau. Initiates corrective disciplinary action whenever needed. Recommends resolutions to grievances or complaints. Approves leave requests and appropriately reviews subordinates sick leave usage to determine if any abuse exists. Operates Department of Revenue equipment (to include computers) and follows the guidelines as directed by the Department of Revenue and the Commonwealth Administrative Offices, to determine the status of taxpayers for all statutes under the abovementioned Chapters under Title 75 and for any other reason as needed to perform their duties. Check all Pennsylvania citations and self -leads to see if they are in compliance with all Motor Fund Tax Acts. Create investigations through inquiries using Department of Revenue computers and computer applications to generate investigations to be assigned as required. Charles, 05 -036 Page 3 Decision Making 1. Issuance of traffic citations and criminal complaints. 2. Determination and collection of tax liabilities. 3. Determination of dyed fuel violations. 4. Initiates on -site investigations. 5. Determine proper licensing and account liability of various entities. 6. Determine probable cause when instituting a search and seizure warrant after approval from Manager. 7. Determine the propriety of a deferred payment program upon approval of the Manager. 8. Determine the necessity of repairs to state -owned vehicles, especially those over $400.00 subject to approval by the Manager 9. Determine and maintain vehicular traffic in a safe manner. 10. Determine the validity and safety of investigations and surveillance with the approval of the Manager. 11. Determine the necessity of overnight travel and other travel related expenses with the approval of the Manager. 3. As an employee of the Department of Revenue, Charles was issued and had access to the following Commonwealth property. a. Computer with internet and e-mail access. b. Commonwealth owned vehicle. c. Voyager Gasoline credit card. 4. Charles had a Commonwealth owned vehicle assigned to him throughout his employment with the Department of Revenue. a. Charles operated a 2001 Ford Taurus, V.I.N. # 1 FAFP53221 A237154, Commonwealth Equipment Number 007 022 787, License DZA -4157 until March 4, 2004, and a 2004 Dodge Stratus, V.I.N. # 1B3EL36R94N315345, Equipment Number 006 -02 -2320, License FGA -1338 thereafter. b. Charles had a Voyager gasoline card assigned to him to use for refueling his state car. 1. Voyager account number )0000( -2907 was assigned to Revenue's Bureau of Motor Fuels. 2. Card number 600044 was assigned to Charles until March 2004 when it was replaced by card number 60066. c. The vehicle was to be used only for official Commonwealth business. 5. Prior to accepting employment with the Department of Revenue, Charles was self employed operating KB Designs 741 Meadowlark, Road, Audubon, PA 19403. a. 741 Meadowlark Road, Audubon, PA 19403 is Charles' home address. b. KB Designs did not have a store front operation. 6. Records of the Commonwealth of Pennsylvania, Department of State include two (2) fictitious name registries for entity number 2645905, KB Designs. Charles, 05 -036 Page 4 a. The initial fictitious name application was filed on July 7, 1995, under the business name You Name It ". 1 You Name It" was listed as an embroidery business with fictitious name holders of Karen Charles and Bruce Charles. 2. Karen Charles is Bruce Charles' wife. b. On April 29, 1996, a second fictitious name application was filed changing the name from You Name It" to "KB Designs ". 1. The business address and relevant parties remained unchanged. 7 On March 25, 2001, Charles filed a personal data summary with the Department of Revenue. a. Included on the data sheet was self employment with KB Designs 741 Meadowlark Road, Audubon, PA 19403 from 1996 to present (03/25/01) and the Norristown Police Department from 1975 to July 1995. 8. Charles continued to be involved with KB Designs along with his wife, Karen Charles, after commencing employment with the Commonwealth. 9. Charles did not seek or receive supplemental employment approval from the Department of Revenue to continue his involvement with KB Designs. a. Supplemental employment approval was required for Charles to continue operating KB Designs. 10. Charles did not disclose his continued operation of KB Designs on Statements of Financial Interests or Governor's Code of Conduct forms he filed with the Department of Revenue. a. Charles was required to annually file Statements of Financial Interests (SFI) and Governor's Code of Conduct forms which required the disclosure of outside business interests. 11. By way of certified mail dated June 26, 2002, Charles was notified that he was required to file Statements of Financial Interests and Governor's Code of Conduct forms. This notification letter was sent by certified article number 7000 0600 0027 9784 1388, signed for by Bruce Charles on or about July 9, 2002. a. Charles was required to file the forms based on his promotion to the position of Revenue Enforcement Supervisor. 1. Charles held the position of trainee prior to the promotion. 12. Statements of Financial Interest forms on file with the Department of Revenue for Charles include the following forms: a. Calendar year 2004 No form filed b. Calendar year 2003 Filed: 05/03/04 on SEC Form 1/04 Position: Revenue Enforcement Agent Creditors: None Charles, 05 -036 Page 5 Direct /Indirect Income: Dept. of Revenue All Other Financial Interests: None c. Calendar year 2002 Filed: 05/30/03 on SEC Form 1/03 Position: Acting Supervisor, Amended form Creditors: None Direct /Indirect Income: Dept. of Revenue All Other Financial Interests: None d. Calendar year 2001 Not required to file SFI 13. Business records of KB Designs confirm gross receipts in excess of $1,300 during calendar years 2001 through 2004. a. Internal Revenue Service form 1040 Schedule C profit or loss from business document the following gross receipts between 2001 and 2004. 1. 2001: $14,483 2. 2002: $8,179 3. 2003: $2,541 4. 2004: $4,277 b. This income was included on Federal Income Tax Returns filed jointly by Bruce and Karen Charles. 14. Charles did not disclose income received in excess of $1,300 from KB Designs on SF's filed for calendar years 2002 and 2003. a. Charles also did not report KB Designs as a business in which he had a financial interest or a business where he was an officer, director, or employee. 15. On March 20, 2006, Charles filed amended Statements of Financial Interests forms with the State Ethics Commission for calendar years 2003 through 2005. a. Amended Statements of Financial Interests forms filed by Charles included the following information. Calendar year: 2003 Filed: 03/13/06 on SEC form 1/06 Position: Department of Revenue Supervisor Creditors: Chase Platinum Plus, American Express Direct /Indirect Income: KB Designs Office Directorship or Employment in any Business: Partnership KB Designs Financial Interest in any Business: KB Designs Calendar year: 2004 Filed: 03/13/06 on SEC form 1/06 Position: Department of Revenue Supervisor Creditors: Chase Platinum Plus, American Express Direct /Indirect Income: KB Designs Office Directorship or Employment in any Business: Partnership KB Designs Charles, 05 -036 Page 6 Financial Interest in any Business: KB Designs Calendar year: 2005 Filed: 03/13/06 on SEC form 1/06 Position: Department of Revenue Supervisor Creditors: Chase Platinum Plus, American Express Direct /Indirect Income: KB Designs Office Directorship or Employment in any Business: Partnership KB Designs Financial Interest in any Business: KB Designs b. Charles did not amend his SFI filed for calendar year 2002. 16. The amended forms were filed by Charles subsequent to his receipt of the Notice of Investigation from the State Ethics Commission. 17. W -2 Wage and Tax Statements on file with the Department of Revenue include the following wages received by Charles while not having SFI's properly filed for calendar years 2002 through 2004. a. 2002: $35,932.76 b. 2003: $41,782.61 c. 2004: $44,571.75 d. 2006: $21,146.48 (through 5/5/06) 18. KB Designs transacted business with both public and private individuals. a. KB Designs did not have any business dealings with the Department of Revenue during his employment with Revenue. 19. Charles in his official capacity as an employee of the Department of Revenue was subject to Department regulations regarding supplemental employment and internet usage. a. Charles signed departmental acknowledgements on these policies on April 17, 2001. 20. Contained within the Department's Standards of Conduct for employees are signed acknowledgements relating to internet use. Both of these policies were signed by Charles on April 17, 2001. Specific provisions of the internet and e-mail user agreement in part are as follows: Use of any Commonwealth Internet /e -mail systems to violate or infringe upon the rights of any other person. Use of any other authorized user's password and /or equipment to conduct unacceptable activities. Any harassing or threatening activities on any Commonwealth Internet /E- mail systems, including, but not limited to, the distribution of defamatory, fraudulent, intimidating, abusive, or offensive material. The downloading of any unauthorized files or software from the Internet. Use of any Commonwealth Internet /E -mail systems to send messages to Charles, 05 -036 Page 7 multiple recipients, such as chain letters or advertisements that can hamper network operations, inhibit employee job performance, and present a negative public image. Any unethical behavior or activities on any Commonwealth Internet /E -mail systems that would bring discredit to the Commonwealth or its agencies. Personal use of Internet and E -mail is permitted but its use shall be limited, occasional, and incidental. Under no circumstances may this use interfere with the efficient operations of the Department. 21. Early in 2004 Charles began to interact on a personal basis with a female clerical employee (employee X) in Revenue's Harrisburg office. a. Charles interacted with the employee from approximately April 2004 until November 2004 through e -mail and telephonic communications as well as personal contact. 1. Charles utilized Commonwealth equipment including computers, telephones, and vehicles in relation to this personal activity. b. Interaction /meetings with employee X occurred during Charles' regular working hours as a Commonwealth employee. 1. Other meetings occurred after working hours when Charles was in the Harrisburg area while on official business. 22. Charles utilized his state car on at least one other occasion to travel to Harrisburg for non -work related purposes to meet with or deliver gifts to employee X. a. On November 12, 2004, Charles drove his state car to Harrisburg for the sole purpose of delivering gifts of a personal nature to employee X. 23. Charles left his residence around 4:45 a.m. to drive to Harrisburg. a. Charles wanted to get to the office of employee X before any other Commonwealth employees arrived for work. b. Charles had off hour access to the Harrisburg office. c. Charles left gifts for employee X in a storage room and drove back to the Norristown area. 24. In an exchange of e -mails with employee X about his trip, Charles wrote "I left at 4:45 a.m. and just took my time this morning." a. This was Charles' explanation to employee X as to how he could deliver the gifts without being caught by Supervisor Kolter or other Revenue employees. 25. Charles' vehicle log entry for November 12, 2004, includes destinations of Darby Borough and Norristown. a. Charles' vehicle log makes no reference of a trip to Harrisburg. b. Charles' Voyager records reflect he fueled the state car in King of Prussia at 8:26 a.m. Charles, 05 -036 Page 8 1. This was the approximate time of Charles' return from Harrisburg. 26. Charles' vehicle log for the period November 10, 2004, through November 15, 2004, detail the following starting mileages and destinations. a. Date Start Location Miles Driven 11/10/04 9804 Norristown, Darby 45 11/11/04 N/A Holiday 0 11/12/04 9849 Darby, Norristown 249 11/13/04 N/A None 0 11/14/04 N/A None 0 11/15/04 10,098 Norristown Area N/A 27. Charles' vehicle log for November 2004 was signed by him on November 30, 2004. a. The report included the following certifications: "I certify that this vehicle was used only for official business." 28. Charles identifies traveling to the same destinations on November 10, 2004, and November 12, 2004 (Norristown, Darby). a. Charles' recorded mileage differed by 204 miles for the same destinations on these two work days. b. November 11, 2004, was a designated state holiday which Charles did not work. 29. According to www.mapquest.com the estimated distance from Norristown to Darby one way is 19.91 miles. a. The estimated distance from Norristown to Harrisburg one way is 92.24 miles. 30. Charles submitted a false entry on his vehicle log for November 12, 2004, to conceal his use of the Commonwealth vehicle for personal purposes. a. The mileage listed by Charles for November 12, 2004, is consistent with a round trip to Harrisburg, the day he delivered gifts to employee X. 31. Charles' workday on November 12, 2004, was spent delivering the gifts to his friend and subsequently engaging in e-mail conversations with her. a. Charles exchanged approximately 83 e -mails with employee X on November 12, 2004. b. Charles first e-mail was sent at 8:41 a.m., fifteen minutes after fueling his state car in King of Prussia. c. Charles next e-mail was sent at 9:44 a.m. with regular exchanges until 3:37 p.m. d. Charles could not have spent more than an hour in Darby based on his e- mail transmissions. 32. Charles' use of the state car to travel to Harrisburg on November 12, 2004, for personal purposes accounts for the approximately 200 mile difference when Charles, 05 -036 Page 9 comparing disclosed destinations traveled. a. Charles did not have any assigned work in Harrisburg on November 12, 2004. b. Charles did not have any leave recorded for November 12, 2004. 33. In November 2004, Commonwealth employees who used their personal vehicle on state business were reimbursed at a rate of 37.5 cents per mile. a. Applying this rate to the 200 miles Charles inappropriately put on the sate [sic] car on November 12, 2004, resulted in a private pecuniary gain of $75.00 to Charles. b. Private pecuniary gain based on 200 miles @ 37.5¢ per mile. 34. Charles utilized a Commonwealth computer and internet /e -mail connection to maintain personal contracts [sic] throughout 2004 and 2005 with employee X and another employee of the Department of Revenue. 35. During his regular working hours as a Commonwealth employee, Charles used the Commonwealth internet /e -mail system to exchange personal e-mails with employee X from at least May 13, 2004, through November 19, 2004. a. Charles' salary during this period was $21.79 hr or $.36 per minute prior to July 3, 2004, and $22.94 hr or $.38 /minute thereafter. b. E -mails were exchanged during normal business hours using Commonwealth facilities, equipment, and time. 36. Between May 13, 2004, and November 19, 2004, Charles exchanged approximately 751 e -mails of a personal non -work related nature with employee X. a. E -mails of this nature violated the Commonwealth and Revenue's policy on e -mail and internet usage. b. These e -mails accounted for approximately 2,627 minutes (46.78 hours) of Charles' working hours during this time frame. c. Charles received wages totaling $998.00 for the time spent exchanging e- mails with employee X. 37. By November 2004, Charles' personal, non -work related relationship with employee X ended. 38. In or about October 2004, Charles began a personal, non - working relationship with another Department employee (employee Y). a. Employee Y also worked at the Department of Revenue's Norristown office in a separate division. b. Charles began sending e-mails to Employee Y on October 12, 2004, and continued through February 22, 2005. c. These e -mails did not relate to Charles' duties with the Department of Revenue. Charles, 05 -036 Page 10 39. Between October 12, 2004, and February 22, 2005, Charles exchanged approximately 239 e -mails of a personal or non -work related nature with employee Y. a. These e -mails accounted for approximately 239 minutes (approximately 4 hours) of Charles' scheduled working hours during this time frame. b. Charles received wages totaling $224.20* for time spent exchanging e-mails with employee Y. * [The stipulated Findings do not indicate Charles' salary per hour or per minute for the time period from November 20, 2004, through February 22, 2005. We shall accept this total amount as stipulated by the parties.] 40. On February 22, 2005, Charles e- mailed employee Y requesting that their e-mail communications end. a. Charles told employee Y, "Please do not e -mail me anymore it's not appropriate." 41. After learning of the predisciplinary conference, Charles opted to use sick leave from March 23, 2005, until his resignation effective May 6, 2005. 42. Charles resigned his position effective May 6, 2005, by way of an e -mail transmission sent to David Kolter on May 3, 2005. 43. Charles realized a private pecuniary gain of $1,222.20 as a result of Commonwealth time spent exchanging e -mails with employee X and Y. a. Financial gain based on $998.00 with employee X plus $224.20 with employee Y. 44. Charles realized a private pecuniary gain of $75.00 as a result of using his state car to deliver gifts to employee X on November 12, 2004. III. DISCUSSION: In his capacity as a Revenue Enforcement Supervisor for the Pennsylvania Department of Revenue from approximately April 16, 2001, until his resignation from the position effective May 6, 2005, Respondent Bruce Charles (also referred to herein as "Respondent," "Respondent Charles," or "Charles ") was a public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Charles, a public official /public employee in his capacity as a Revenue Enforcement Supervisor for the Department of Revenue, Bureau of Motor Fuel Taxes, violated Sections 1103(a), 1104(a), and 1105(b)(5), (8), (9) of the Ethics Act, 65 Pa.C.S. §§ 1103(a), 1104(a), and 1105(b)(5), (8), (9) when he failed to file a Statement of Financial Interests for the 2004 calendar year by May 1, 2005; when he failed to disclose on Statements of Financial Interests filed for the 2002 and 2003 calendar years his interests and office, directorship or shareholder status in KB Designs and income received from KB Designs in excess of $1,300; and when he used the authority of his public position for a private pecuniary gain, including but not limited to, using a Commonwealth vehicle, equipment, and time for personal purposes. 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: Charles, 05 -036 Page 11 65 Pa.C.S. § 1103(a). § 1103. Restricted Activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1104(a) of the Ethics Act provides 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 1105(b)(5) of the Ethics Act requires the filer to disclose on the Statement of Financial Interests the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the Statement of Financial Interests any office, directorship or employment in any business entity. Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the Statement of Financial Interests any financial interest in any legal entity engaged in business for profit. The term "financial interest" is defined in the Ethics Act as "[a]ny financial interest in a legal entity engaged in business for profit which comprises more than 5% of the equity of the business or more than 5% of the assets of the economic interest in indebtedness." 65 Pa.C.S. § 1102. As noted above, the parties 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. Charles, 05 -036 Page 12 Charles was employed by the Pennsylvania Department of Revenue as a Revenue Enforcement Supervisor from approximately April 16, 2001, until he resigned from that position effective May 6, 2005. Charles was assigned to the Department of Revenue's Norristown field office. Charles' duties and responsibilities as a Revenue Enforcement Supervisor are set forth in part in Finding 2. Throughout his employment with the Department of Revenue, Charles was assigned a Commonwealth owned vehicle that was to be used only for official Commonwealth business. Charles was also assigned a Commonwealth Voyager gasoline card to use for refueling his state car. Charles was issued and had access to a Commonwealth computer with Internet and e-mail access. Prior to accepting employment with the Department of Revenue, Charles was self - employed, operating a business known as "KB Designs" out of his home. Upon becoming an employee of the Department of Revenue, Charles was required to obtain supplemental employment approval in order to continue operating KB Designs. In April 2001 Charles signed an acknowledgement of the Department of Revenue regulations regarding supplemental employment. However, during his employment with the Department of Revenue, Charles continued to be involved with KB Designs without seeking or receiving the required supplemental employment approval from the Department of Revenue. As a Revenue Enforcement Supervisor, Charles was required to annually file Statements of Financial Interests and Governor's Code of Conduct forms. On his Statements of Financial Interests filed with the Department of Revenue for calendar years 2002 and 2003, Charles did not disclose income received in excess of $1,300 from KB Designs. Charles also did not disclose KB Designs as a business for which he was an officer, director, or employee or as to which he had a financial interest. Charles did not file a Statement of Financial Interests with the Department of Revenue for calendar year 2004. On March 20, 2006, after receiving a Notice of Investigation from this Commission, Charles filed amended Statements of Financial Interests with this Commission for calendar years 2003 through 2005. See, Finding 15. The amended Statements of Financial Interests listed KB Designs as a source of income and also included KB Designs as a business for which Charles was an officer, director or employee and as to which he had a financial interest. Charles did not amend his Statement of Financial Interests for calendar year 2002. As a Revenue Enforcement Supervisor, Charles was subject to Department of Revenue regulations /policies regarding Internet and e-mail usage. Charles signed departmental acknowledgements as to these policies in April 2001. See, Findings 19 -20. From approximately April 2004 until November 2004, Charles interacted on a personal basis with a female clerical employee (employee X) in Revenue's Harrisburg office. Charles interacted with employee X through e -mail and telephonic communications as well as personal contact. Interaction /meetings with employee X occurred during Charles' regular working hours as a Commonwealth employee. Other meetings occurred after working hours when Charles was in the Harrisburg area while on official business. On November 12, 2004, Charles drove his assigned state car to Harrisburg for the sole purpose of delivering gifts of a personal nature to employee X. Charles left his residence around 4:45 a.m. to drive to Harrisburg. Charles left gifts for employee X in a storage room in the Harrisburg office and then drove back to the Norristown area. Charles' Voyager records reflect he fueled the state car in King of Prussia at 8:26 a.m. Charles was in his office by 8:41 a.m., at which time he sent an email to employee X. Charles submitted a false entry on his vehicle log for November 12, 2004, to conceal his use of the Commonwealth vehicle for personal purposes. Charles signed the vehicle log with a certification that the vehicle had only been used for official business. The parties have stipulated that Charles' inappropriate use of his assigned state car on November 12, 2004, Charles, 05 -036 Page 13 resulted in a private pecuniary gain to Charles in the amount of $75.00. During his regular working hours as a Commonwealth employee, Charles used a Commonwealth computer and the Commonwealth internet /e -mail system to exchange personal e-mails with employee X as well as another Department employee, employee Y. E -mails were exchanged during normal business hours using Commonwealth facilities, equipment, and time. E -mails of this nature violated the Commonwealth and Department of Revenue policy on e -mail and Internet usage. On November 12, 2004 —the same day Charles delivered gifts to employee X at the Department of Revenue's Harrisburg office — Charles exchanged approximately 83 e-mails with employee X during his Commonwealth working hours. Between May 13, 2004, and November 19, 2004, Charles exchanged approximately 751 e -mails of a personal non -work related nature with employee X. These e -mails accounted for approximately 2,627 minutes of Charles' working hours. Charles received wages totaling $998 for the time spent exchanging e -mails with employee X. Between October 12, 2004, and February 22, 2005, Charles exchanged approximately 239 e -mails of a personal or non -work related nature with employee Y. These e -mails accounted for approximately 239 minutes of Charles' scheduled working hours. The parties have stipulated that Charles received wages totaling $224.20 for time spent exchanging e -mails with employee Y. Charles resigned his position effective May 6, 2005. The parties have stipulated that Charles realized a private pecuniary gain in the amount of $1,222.20 as a result of Commonwealth time spent exchanging e -mails with employee X and employee Y, and a private pecuniary gain in the amount of $75 as a result of using his assigned state car to deliver gifts to employee X on November 12, 2004. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred in relation to Charles' use of a Commonwealth vehicle, equipment, and time for his personal purposes. b. That a violation of Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1104(a) occurred when Charles failed to file a Statement of Financial Interests for the 2004 calendar year by May 1, 2005. c. That a violation of Section 1105(b)(5)(8)(9) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1105(b)(5)(8)(9) occurred when Charles failed to disclose on Statements of Financial Interests filed for the 2002 and 2003 calendar years, his interests and office directorship or shareholder in KB Designs and Charles, 05 -036 Page 14 income received from KB Designs in excess of $1,300. 4. Charles agrees to make payment in the amount of $2,000 (in eight monthly payments of $222.22 and one payment of $222.24) 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. 5. Charles will file an amended Statement of Financial Interests for calendar year 2002 disclosing all required information, including but not limited to, KB Designs as a direct source of income and as a business with which he is employed or has a financial interest. 6. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 2. In considering the recommendations of the Consent Agreement, it is clear that the elements for the recommended violation of Section 1103(a) have been established. Charles used the authority of his public position when he used Commonwealth computer(s), the Commonwealth internet /e -mail system, Commonwealth telephone(s), his assigned Commonwealth vehicle, and Commonwealth working hours for personal purposes, specifically, personal interactions with employee X and employee Y. But for being a Commonwealth employee, Charles would not have been in a position to access and use Commonwealth equipment, a Commonwealth vehicle, and Commonwealth time for such purposes. The aforesaid actions were unauthorized and resulted in private pecuniary benefits to Charles. By using Commonwealth equipment and a Commonwealth vehicle for such personal purposes, Charles avoided having to pay out -of- pocket expenses to engage in such activities. By using Commonwealth time for such purposes, Charles received compensation from the Commonwealth for time spent engaging in private activities. Each element of a conflict of interest has been established as to this allegation. See, Moore, Order 1317. We hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Charles' use of a Commonwealth vehicle, equipment, and time for his personal purposes. Turning to the allegations involving Charles' Statements of Financial Interests, the stipulated Findings reflect that Charles failed to timely file a Statement of Financial Interests for calendar year 2004. Accordingly, we hold that a violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. §1104(a), occurred when Charles failed to file a Statement of Financial Interests for the 2004 calendar year by May 1, 2005. Although Charles filed Statements of Financial Interests for calendar years 2002 and 2003, he failed to disclose KB Designs as a source of income. The stipulated Charles, 05 -036 Page 15 Findings establish that for calendar years 2002 and 2003, KB Designs was a source of income in excess of $1,300 for Charles. The stipulated Findings further establish that Charles failed to disclose his position and interest in KB Designs on his Statements of Financial Interests for calendar years 2002 and 2003. Per the Consent Agreement of the parties, we hold that a violation of Section 1105(b)(5), (8), (9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), (8), (9), occurred when Charles failed to disclose on Statements of Financial Interests filed for the 2002 and 2003 calendar years, his interests and office directorship or shareholder status in KB Designs and income received from KB Designs in excess of $1,300. On March 20, 2006, after receiving a Notice of Investigation from this Commission, Charles filed amended Statements of Financial Interests with this Commission for calendar years 2003 through 2005. See, Finding 15. The amended Statements of Financial Interests listed KB Designs as a source of income and also included KB Designs as a business for which Charles was an officer, director or employee and as to which he had a financial interest. However, Charles did not amend his Statement of Financial Interests for calendar year 2002. As part of the Consent Agreement, Charles has agreed to file an amended Statement of Financial Interests for calendar year 2002 disclosing all required information. Per the Consent Agreement of the parties, Charles is directed to file an amended Statement of Financial Interests for calendar year 2002 disclosing all required information, including but not limited to, KB Designs as a direct source of income and as a business with which he is employed or has a financial interest. In settlement of this matter, Charles has agreed to make payment in the amount of $2,000, in eight monthly payments of $222.22 and one payment of $222.24, with the aforesaid payments to be payable to the Commonwealth of Pennsylvania and forwarded to this Commission, and with the first such payment to be forwarded to this Commission within thirty days of the issuance of the final adjudication in this matter. 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, Charles is directed to make payment in the amount of $2,000, in eight monthly payments of $222.22 and one payment of $222.24, in settlement of this matter, with the aforesaid payments to be payable to the Commonwealth of Pennsylvania and forwarded to this Commission, and with the first such payment to be forwarded to this Commission by no later than the thirtieth (30 day after the mailing date of this Order. IV. CONCLUSIONS OF LAW: 1. Respondent Bruce Charles ( "Charles "), as a Revenue Enforcement Supervisor for the Pennsylvania Department of Revenue from approximately April 16, 2001, until his resignation from the position effective May 6, 2005, was a public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Charles violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his use of a Commonwealth vehicle, equipment, and time for his personal purposes. 3. Charles violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. §1104(a), when he failed to file a Statement of Financial Interests for the 2004 calendar year by May 1, 2005. Charles, 05 -036 Page 16 4. Charles violated Section 1105(b)(5), (8), (9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), (8), (9), when he failed to disclose on Statements of Financial Interests filed for the 2002 and 2003 calendar years his interests and office directorship or shareholder status in KB Designs and income received from KB Designs in excess of $1,300. In Re: Bruce Charles File Docket: 05 -036 Date Decided: 1/8/07 Date Mailed: 1/23/07 ORDER NO. 1427 1 Respondent Bruce Charles ( "Charles "), a public employee in his capacity as a Revenue Enforcement Supervisor for the Pennsylvania Department of Revenue from approximately April 16, 2001, until his resignation from the position effective May 6, 2005, violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his use of a Commonwealth vehicle, equipment, and time for his personal purposes. 2. Charles violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. §1104(a), when he failed to file a Statement of Financial Interests for the 2004 calendar year by May 1, 2005. 3. Charles violated Section 1105(b)(5), (8), (9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), (8), (9), when he failed to disclose on Statements of Financial Interests filed for the 2002 and 2003 calendar years his interests and office directorship or shareholder status in KB Designs and income received from KB Designs in excess of $1,300. 4. Per the Consent Agreement of the parties, Charles is directed to file an amended Statement of Financial Interests for calendar year 2002 disclosing all required information, including but not limited to, KB Designs as a direct source of income and as a business with which he is employed or has a financial interest. 5. Per the Consent Agreement of the parties, Charles is directed to make payment in the amount of $2,000, in eight monthly payments of $222.22 and one payment of $222.24, in settlement of this matter, with the aforesaid payments to be payable to the Commonwealth of Pennsylvania and forwarded to this Commission, and with the first such payment to be forwarded to this Commission by no later than the thirtieth (30 day after the mailing date of this Order. 6. Compliance with paragraphs 4 and 5 of this Order will result in the closing of this case with no further action by this Commission. a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair