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HomeMy WebLinkAbout1438 PeakIn Re: Linda Peak, 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 06 -033 Order No. 1438 6/11/07 6/29/07 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 not requested. A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement 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. Peak, 06 -033 Page 2 I. ALLEGATIONS: That Linda Peak, a public official /public employee, in her capacity as Secretary /Treasurer for Deer Creek Township, Mercer County, violated Sections 1103(a) and 1104(a) provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § §1103(a) and 1104(a), when she used the authority of her office for a private pecuniary benefit when she issued checks to herself and /or for her personal benefit from township accounts and altered said checks to conceal that funds were being paid to her or for her benefit; and when she failed to file Statements of Financial Interests for the 2003 and 2004 calendar years. II. FINDINGS: 1. Linda Peak served as the Secretary /Treasurer of Deer Creek Township, Mercer County, from January 6, 1992, through December 31, 2004. a. Peak worked part -time in the secretary /treasurer position. 1. Peak had no set number of hours to work in her position. b. Peak was not re- appointed as the secretary /treasurer at the January 3, 2005, township re- organization meeting. 2. As the township secretary /treasurer, Peak was responsible for, amongst others, the following duties: a. Preparation of meeting agendas, bills to be approved by the board; b. Custody and maintenance of all township financial records including making deposits /withdrawals; c. Preparation of checks for payment /issuance; d. Signature authority over all township accounts; e. Taking minutes at monthly meetings; f. Retention and preservation of township documents /records; g. Receiving and forwarding complaints to the board of supervisors; and h. Various administrative duties. 3. The Deer Creek Township Municipal Building is located at 889 Milledgeville Road, Hadley, PA 16130. a. The township office was constructed in the mid- 1990's. b. Prior to the construction of the office, township meetings were conducted in the maintenance garage that housed township equipment. 4. While serving as secretary /treasurer, Peak conducted her township duties and responsibilities from her home. a. From at least 2001 through 2004, Peak's home mailing address was 51 Grange Road, Cochranton, PA 16314. Peak, 06 -033 Page 3 b. From at least 2001 through 2004, Deer Creek Township financial records document the township mailing address as 51 Grange Road, Cochranton, PA 16314. 1. The township office had no mailbox in which to receive mail during Peak's tenure. 5. Peak maintained township records at the township office with the exception of the current month's records, which were stored at her home. a. Peak had sole control and physical custody of the township records including: bank statements; cancelled checks; check registers; and checkbooks; all of which were maintained at her residence. 1. Peak occasionally left the township checkbooks in her office at the township building on a temporary basis. b. For at least the last four years of Peak's service as secretary /treasurer, all township records, other than current month's records, were stored at the township office. 6. Peak did not keep a regular schedule of hours at the township office. a. Individuals needing to meet with Peak to address township business were required to make an appointment to see Peak at her residence. 7 Deer Creek Township is a Second Class Township governed by a three - member board of supervisors. a. The board of supervisors held one regular meeting per month during Peak's tenure. b. The specific day on which meetings were held varied during Peak's tenure. 8. Voting at council meetings normally occurred in group "aye /nay" fashion. a. Abstentions or objections which occurred were not specifically noted in the minutes. b. Minutes of each meeting were approved for accuracy at each subsequent meeting of the board. 9. The Board of Supervisors was generally not aware, until immediately prior to a monthly meeting, of matters to be considered and bills to be paid. a. Peak did not supply the supervisors with a meeting packet for review prior to the monthly meetings. b. Peak provided the supervisors with the meeting agenda and the previous month's minutes immediately prior to the convening of the monthly meetings. c. No listing of the monthly bills was created for review prior to monthly meetings. 10. Peak presented the monthly bills /invoices to the board for review and approval at the monthly meetings. Account Number Account Name Account Address xxxxx3 Deer Creek Township Supervisors General Fund 51 Grange Road Cochranton, Pa 16314 xxxxx1 Deer Creek Township Supervisors State Fund 51 Grange Road Cochranton, Pa 16314 xxxxx8 Deer Creek Township Payroll 51 Grange Road Cochranton, Pa 16314 xxxxx4 Deer Creek Township Supervisors State Fund 51 Grange Road Cochranton, Pa 16314 Peak, 06 -033 Page 4 a. The supervisors individually reviewed each bill /invoice present at the monthly meeting. b. The supervisors signified their approval of the bill /invoice by initialing the bill /invoice. c. A motion and vote to approve payment of the monthly bills occurred after all bills /invoices present had been reviewed. 11. Checks in payment of bills /invoices were not normally issued until approved by the supervisors at the monthly meetings. a. Peak had the authority to issue checks to various vendors /companies without prior approval to avoid accrual of late fees. 12. Signature authority over township accounts (the General Fund, Payroll Fund, State Fund, and Hi -Fi Account) was maintained by Peak and all three supervisors. a. Township accounts required Peak's signature and the signature of any one of the three township supervisors. 13. From at least 2001 through 2004, Deer Creek Township utilized a name stamp with the signatures of all four signatories to authorize township checks. a. Only one facsimile stamp existed for the township from 2001 through 2004. b. Peak maintained custody of the facsimile stamp at her residence. 14. Checks brought to the meetings by Peak for authorization were prepared in advance with all required information (i.e. check date, payee, amount, etc.). a. Peak affixed the facsimile stamp to the checks once the bills /invoices were approved by the supervisors. 1. Peak affixed the facsimile stamp on the checks at the actual meeting or at home after the meeting. b. The supervisors did not review the actual checks to be issued. 15. Between the periods of March 1, 2001, through December 31, 2004, various bank accounts existed in the name of Deer Creek Township at Mercer County State Bank (MCSB) as shown below: Peak, 06 -033 Page 5 a. The State Fund Account assigned under Account No. xxxxx4 is also known as a Public Hi -Fi Account. 1. The classification "Public Hi -Fi Account" is an internal classification utilized by Mercer County State Bank to represent public funds invested in an interest bearing money market account. b. The Payroll Account assigned under Account No. xxxxxx8 carried no balance from April 23, 2004, through December 31, 2004. 1. Payroll checks have been issued from the General Fund Account (Account No. xxxxx3) from April 2004 through the present. 16. Peak, in her capacity as secretary /treasurer, maintained custody and control over [the] township's financial accounts as outlined in finding No. 24. 17. Peak, as the township secretary /treasurer, had sole control and custody over Deer Creek Township finances. a. Peak maintained custody of the township financial records, including township checkbooks, at her home residence. b. Peak received all financial statements and cancelled checks at her home residence. c. Peak was responsible for the generation and distribution of all checks to be issued. d. Supervisors rarely reviewed checks prior to issuance as Peak used the facsimile stamp for supervisor approval. 18. From January 2001 through December 2004, Peak's salary as the township secretary /treasurer, as approved by the township supervisors, was $550.00 per month (gross wages) plus $35.00 for meeting attendance. a. The township supervisors established Peak's wages annually at the township reorganization meeting. b. Peak was also compensated for issuing permits as the township Building Permit Officer. 19. Peak issued herself one township check per month as payment for her salary as the township secretary /treasurer. a. Peak also received checks noting compensation received for serving as the township Building Permit Officer. 1. Peak was to receive $10.00 of the applicable building permit fee as documented in minutes of the April 14, 1997, supervisors meeting. b. Additional checks occasionally received by Peak were reimbursements received for attendance at conferences, seminars, etc.; personal payment of township materials; and mileage. 20. From at least March 2001 through December 2004, Linda Peak maintained signature authority over at least two personal accounts utilized by Peak and her husband (Bobbie Peak) for personal matters as shown below: Check Number Account Check Date Check Amount Operating Payee Disposition of Funds 5464 04/09/01 $6,245.81 Atlantic Corp. Negotiated - Atlantic XX000(5245 07/24/90 - 12/31/04 Peak/Bobbie Peak Corp. 5699 04/20/02 $350.00 Peak Deposit Acct # X- 1336 5716 05/16/02 $1,107.12 Atlantic Negotiated - Atlantic 5914 07/20/03 $540.00 Peak Deposit Acct # X- 1336 5968 05/04/03 $7,000.00 L &D Enterprise Deposit Acct # X- 1336 Total $15,242.93 Bank Name Account No. Operating Dates Authorized Signatories PSECU )00000 336 02/26/01- 12/31/04 Peak/Bobbie Peak PSECU XX000(5245 07/24/90 - 12/31/04 Peak/Bobbie Peak Peak, 06 -033 Page 6 *PSECU represents the Pennsylvania State Employee Credit Union. a. Linda Peak opened Account No. X -1336 on February 26, 2001. b. Bobbie Peak opened Account No. X -5245 on July 24, 1990. 21. Between 2001 and May 2003 Peak used her position as Secretary /Treasurer to issue payments to herself, or to her creditors, using township accounts for payments which were not part of her authorized compensation. a. Two payments were issued to a mortgage company holding the mortgage on Peak's personal residence. 22. From April 2001 through May 2003, Peak, as the township secretary /treasurer, issued at least five checks to herself, or companies on her behalf, from the township General Fund (Account No. xxxxx3) totaling $15,242.93 of funds not due as compensation to Peak as shown below: a. Atlantic Corp. /Atlantc (aka Atlantic Mortgage and Investment Corp.) is currently known as ABN AMRO, a mortgage company located in Jacksonville, Florida. 1. Atlantic Mortgage and Investment Corp. was purchased by ABN AMRO in August 2000; however, no formal name change occurred until 2002. b. L &D Enterprise is a non - existing business. 1. L &D Enterprise is a fictitious name created by Peak to give the impression that it was a legitimate township vendor. c. Peak utilized the township facsimile stamp to place the necessary authorized signatures on the checks. 1. No township supervisors signed any of these checks. 23. Of the five checks generated and negotiated /issued by Peak, three were deposited into accounts over which Peak held signature authority; the remaining two were Check Number Check Amount Check Date Original Endorsement Deposit Date Altered Payee Deposit Amount 5464 Deposit Information 5699 5699 $350.00 04/20/02 04/20/02 $350.00 Deposit PSECU Acct #X -1336 5968 $7,000.00 05/04/03 05/19/03 $7,000.00 Deposit PSECU Acct #X -1336 5914 $540.00 07/20/03 07/23/03 $540.00 Deposit PSECU Acct #X -1336 Total $7,890.00 Check Number Check Date Original Payee Original Endorsement Altered Payee Altered Endorsement 5464 $6,245.81 5699 04/20/02 Linda Peak Linda Peak Chess Service For Deposit Only 5914 07/20/03 Linda Linda Peak Walsh For Deposit Check Number Check Amount Check Date Negotiation Date Negotiation Information 5464 $6,245.81 04/09/01 04/13/01 Negotiated - Atlantic 5716 $1,107.12 05/16/02 05/21/02 Negotiated - Atlantic Total $7,352.93 Peak, 06 -033 Page 7 negotiated by Atlantic Mortgage and Investment Corp. as shown below: a. Checks deposited to Peak's account: 1. Peak's signature is present as the endorsing signature on the reverse of each check. 2. All checks listed above were deposited into Peak's account at PSECU (Account No. )00X -X(- 1336). b. Checks payable to mortgage company: 1 The Mortgage for Peak's residence 's through Atlantic Mortgage and Investment Company (currently ABN AMRO). 2. Peak issued check numbers 5464 and 5716 to Atlantic Mortgage and Investment Corp. as payment on her Mortgage under loan number 0001033523. 3. Check numbers 5464 and 5716 were credited to Peak's Mortgage under loan number 0001033523 on April 12, 2001, and May 20, 2002, respectively. 24. Peak intentionally attempted to conceal her misappropriation of township funds by altering the name of the payee on four of the five checks documented in Finding No. 31 (check numbers 5699, 5716, 5914, and 5968). a. Peak altered the cancelled checks once received at her home from Mercer County State Bank (MCSB). 25. Peak utilized correction fluid to conceal herself as the original payee of check numbers 5699 and 5914 by "whiting" out her name as payee and inserting as the payee the names of companies with which the township conducted business as shown below: Check Number Check Date Original Payee Original Endorsement Altered Payee Altered Endorsement 05 -16 -02 Atlantic For Deposit Only Atlantic Corp. Walsh Equipment For Deposit Only 5968 05/04/03 L &D Enterprise For Deposit Only L &D Enterprise Peak Grove City Paving For Deposit Only Grove City Paving Peak, 06 -033 Page 8 Peak Equipment Only a. Chess Service is a fuel oil business located in Sheakleyville, PA. 1. Chess service records note no purchases of any kind by Deer Creek Township in 2002 that total $350.00. b. Walsh Equipment is a municipal and industrial supply company located in Butler, PA. 1. Walsh Equipment billed the township $860.46 through invoice numbers 314604 ($815.49) and 315417 ($44.97) for materials purchased in July and August 2003. 2. Peak wrote on invoice number 314604, "Advised only owes $540.00 due to credit" in order to conceal the fact that check number 5914 had been originally issued in her name. 3. Peak subsequently issued Walsh Equipment Township General Fund check number 6034, dated 11/21/03, in the amount of $860.46 in payment of invoice numbers 314604 and 315417. c. Peak altered the endorsements on check numbers 5699 and 5914 from her signature to For deposit only" in an additional effort to conceal that she had misappropriated the funds into her personal accounts. 26. Peak utilized correction fluid to "whiteout" Atlantic Corp. and L &D Enterprises as original payees of check numbers 5716 and 5968 and then inserted the names of companies with which the township conducted business in an effort to conceal that she issued township checks for her personal use. a. Wa sh Equipment conducted no business with the township in 2002 which resulted in a single invoice or multiple invoices totaling the amount documented on check number 5716 ($1,107.12). 1. Walsh Equipment records document no invoice issued to Deer Creek Township in the amount of $1,107.12 in 2002. b. Grove City Paving, Inc. is a resurfacing and paving company located in Grove City, PA. 1. Peak manufactured Grove City Paving invoice number 1121, dated April 2, 2003, in the amount of $7,000.00 to represent the purchase and delivery of MC -70 liquid asphalt and #1B limestone to the township. 2. Grove City Paving records document invoice number 1121, dated Meeting Date Check Number Check Listed On Register' Documented Recipient Actual Recipient 05/13/02 5699 Yes Chess Service Peak 06/04/02 5716 Yes Walsh Equipment Peak 06/03/03 5968 No N/A N/A 08/05/03 5914 No N/A N/A Peak, 06 -033 Page 9 October 10, 2003, in the amount of $800.00 for the hauling of various stone for a private resident in Stoneboro, PA. 3. Peak created invoice number 1121 to be maintained in the township files to support check number 5968 due to the amount of check number 5968. c. Peak altered the endorsement on check numbers 5716 and 5968 from her signature to For deposit only" and for deposit only Grove City Paving" respectively in an additional effort to conceal her misappropriation. 27. Peak did not attempt to alter or conceal Atlantic Corp. as the payee on township check number 5464. a. Peak's home telephone number and "Spreader Box" were written in the memo section of the check in an effort to conceal that the check was written for Peak's mortgage. 28. Peak intentionally listed false information in official Deer Creek Township meeting minutes by identifying the altered payee on checks in an attempt to further conceal her misappropriation of township funds for her personal purposes. a. The register of checks issued by Peak as documented in various minutes (with the exception of Check No. 5464 to Atlantic) listed the altered payee on the checks as the receiving entity or some checks were omitted from the register as listed below: 1. The check register incorporated into the minutes of the May 1, 2001, meeting document Check No. 5464 issued to Atlantic. 29. Check Nos. 5968 and 5914 were hand written into the check registers of the applicable meetings minutes with Grove City Paving and Walsh Equipment reported as the respective recipients. a. Check Nos. 5968 and 5914 were hand written into the registers of the applicable meeting minutes by Peak at the direction of the township auditors. 1. When conducting the annual 2003 audit the township auditors discovered that check numbers 5968 and 5914 had not been documented in the applicable minutes and directed Peak to insert the checks in the minutes. 30. Township checks 5699 and 5614 were deposited into personal accounts over which Peak had signature authority and were utilized for personal use, mortgage payments and insurance premiums. 31. Peak deposited check number 5699 in the amount of $350.00 into her personal Account No. X -1336 on April 20, 2002. a. Peak completed an ATM withdrawal from Account No. X -1336 in the amount Peak, 06 -033 Page 10 of $341.50 after the $350.00 deposit. b. The existing balance in the account prior to Peak depositing check number 5699 was $18.03. c. The specific use of the funds withdrawn could not be determined. 32. Peak deposited check number 5968 in the amount of $7,000.00 into personal Account No. X -1336 on May 19, 2003. 1. On May 22, 2003, Peak obtained Cashiers Check No. 1895578 from PSECU in the amount of $7,438.45 to be credited to her Mortgage Loan (No. 0001033523) representative of missed payments and fees incurred. 2. The $7,438.45 was debited from the Peak's personal account (Account No. X -1336) at PSECU on May 22, 2003. 3. The existing balance in the account prior to Peak depositing check number 5968 was $1,261.55. 4. Without the deposit of township funds Peak would not have been able to make the payment for her personal mortgage. 33. Peak deposited township check number 5914 in the amount of $540.00 into her personal Account No. X -1336 on July 23, 2003. a. On July 20, 2003, Peak issued check number 524 from the Peak's joint personal account (Account No. X -1336) to State Farm Insurance in the amount of $538.74 as payment for insurance premiums due. b. The existing balance in the account prior to Peak depositing check number 524 was $29.90. c. Without the deposit of township funds Peak would not have been able to make the insurance premium payment. 34. Peak, as the secretary /treasurer for Deer Creek Township, realized a private pecuniary gain of $15,242.93 as a result of issuing township checks to herself and /or companies on her behalf to which she was not entitled as shown below: a. Peak issued two checks totaling $7,352.93 to Atlantic Corp. /Atlantic representative of mortgage payments and miscellaneous fees due. b. Peak issued one check to L &D Enterprise, a non - existent company, totaling $7,000.00 which Peak deposited into her personal account at PSECU and subsequently utilized to make payment on her mortgage and miscellaneous fees incurred. c. Peak issued two checks to herself in the amount of $890.00 which Peak deposited into her personal account at PSECU and subsequently utilized for payment for insurance premiums and other personal use. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT PEAK FAILED TO FILE STATEMENTS OF FINANCIAL INTERESTS FOR CALENDAR YEARS 2003 AND 2004 Peak, 06 -033 Page 11 35. Statement of Financial Interests filing requirements for public officials and public employees are mandated by Section 1104 of the State Ethics Act. a. Peak was required to file Statements of Financial Interests by May 1 annually in her position as Deer Creek Township Secretary /Treasurer. 36. Peak was aware of the requirement to file Statements of Financial Interests in her position as secretary /treasurer. a. Peak completed and filed a Statement of Financial Interests for calendar year 2001. b. Peak in her position as Secretary /Treasurer was responsible for the maintenance and preservation of forms filed with the township. 37. On June 1, 2006, a Statement of Financial Interests Compliance Review was conducted for Deer Creek Township. a. No Statements of Financial Interests could be located at the township for Peak regarding calendar years 2003 or 2004. b. The township maintained no dedicated or systematic filing mechanism for the tracking of Statement of Financial Interests filings. c. Given the disarray of the township's filing system, sufficient evidence could not be developed to prove Peak did not in fact timely file her Statement of Financial Interests form for calendar years 2003 and 2004. 38. In a sworn statement provided to Commission Investigators on January 18, 2007, Peak admitted the following information: a. Peak admitted writing township check numbers 5464, 5716, and 5968 in the amounts of $6,245.81, $1,107.12, and $7,000.00 respectively for the purpose of paying her mortgage and miscellaneous fees /late fees due. 1. Peak admitted altering the payee of the checks, with the exception of check number 5464, once cancelled and received from the bank in an effort to conceal the misappropriation. b. Peak admitted to writing township check numbers 5699 and 5914 in the amounts of $350.00 and $540.00 respectively for personal use to which she was not legitimately entitled. 1. Peak admitted altering the payee of the checks once cancelled and received from the bank in an effort to conceal the misappropriation. c. Peak denied purchasing and utilizing the digital camera paid for with township check number 6105. 1. Peak claimed the camera was purchased with the knowledge of the supervisors for the purpose of documenting road damage. 2. Peak provided no explanation regarding why the Reliable invoice had been altered to represent the purchase of a photocopier cartridge. d. Peak denied failing to file Statements of Financial Interests for calendar Description Amount Checks Payable to Atlantic Corp. /Atlantic $7,352.93 Check Payable to L &D Enterprise $7,000.00 Checks Originally Payable to Peak $890.00 Total Financial Gain $15,242.93 Peak, 06 -033 Page 12 years 2003 and 2004. 1. Peak did not have personal copies of her 2003 and 2004 calendar year Statements of Financial Interests to substantiate her claim. 2. Peak claimed her Statements of Financial interests had been filed timely with the township. e. Peak expressed a willingness to pay restitution to the township for the misappropriated funds. 39. Peak realized a total financial gain of approximately $15,242.93 in her position as Deer Creek Township secretary /treasurer by misappropriating township funds through the issuance of at least six checks to herself and /or companies on her behalf as shown below: III. DISCUSSION: As Secretary /Treasurer of Deer Creek Township ( "Township "), Mercer County, from January 6, 1992, through December 31, 2004, Respondent Linda Peak, hereinafter also referred to as "Respondent," "Respondent Peak," or "Peak," was a public official 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 Peak, in her capacity as Township Secretary /Treasurer, violated Sections 1103(a) and 1104(a) of the Ethics Act: (1) when she used the authority of her office for a private pecuniary benefit when she issued checks to herself and /or for her personal benefit from Township accounts and altered said checks to conceal that funds were being paid to her or for her benefit; and (2) when she failed to file Statements of Financial Interests for the 2003 and 2004 calendar years. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted Activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). 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 Peak, 06 -033 Page 13 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. 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. Respondent Linda Peak served as Township Secretary /Treasurer from January 6, 1992, through December 31, 2004. As Township Secretary /Treasurer, Peak's responsibilities /duties included, inter alia: preparing bills to be approved by the three - member Township Board of Supervisors ( "Board "); making deposits /withdrawals; preparing Township checks for payment /issuance; and retaining and preserving Township documents /records. Peak and all three Township Supervisors had signature authority over Township accounts. Peak had sole control and custody of the Township finances and Township records, including bank statements, cancelled checks, check registers, and checkbooks. From at least 2001 through 2004, Peak also maintained custody of the Township's sole facsimile stamp, which contained the signatures of all four signatories and which was used to authorize Township checks. During Peak's tenure as Township Secretary /Treasurer, the Board held one regular meeting per month. No listing of the monthly bills was created for review prior to monthly meetings. Peak presented the monthly bills /invoices to the Board for review and approval at the monthly meetings. Peak affixed the facsimile stamp to Township checks once the bills /invoices were approved by the Supervisors. The Supervisors did not review the actual checks to be issued. The parties have stipulated that Peak, in her position as Township Secretary /Treasurer, misappropriated Township funds. As detailed in Fact Finding 22, from April 2001 through May 2003, Peak, as Township Secretary/Treasurer, issued at least five Township checks — specifically, Township General Fund Account checks 5464, 5699, 5716, 5914, and 5968— totaling $15,242.93 to herself or to other payees on her behalf, which funds were not due as compensation to Peak. Peak utilized the Township facsimile stamp to place the necessary authorized signatures on the checks. No Township Supervisors signed any of these checks. Peak, 06 -033 Page 14 Of the aforesaid five checks, checks 5699, 5914, and 5968 totaling $7,890 were deposited into personal accounts over which Peak held signature authority and were utilized for Peak's mortgage payments, insurance premiums, and other personal use. Checks 5699 and 5914 were made payable to Peak. Check 5968 was made payable to "L &D Enterprise," a fictitious name created by Peak to give the impression that the payee was a legitimate Township vendor. Checks 5464 and 5716 were issued to and negotiated by a mortgage company and were credited as payments on Peak's mortgage on April 12, 2001, and May 20, 2002, respectively. Peak intentionally attempted to conceal her misappropriation of Township funds by using correction fluid to alter the names of the original payees on four of the five cancelled checks (checks 5699, 5716, 5914, and 5968), as detailed in Fact Findings 24 -26. Peak did not attempt to alter or conceal the name of her mortgage company as the payee on Township check number 5464. However, Peak's home telephone number and "Spreader Box" were written in the memo section of the check in an effort to conceal that the check was written for Peak's mortgage. Peak made a false notation on one vendor invoice (Walsh Equipment invoice number 314604) to conceal the fact that check number 5914 had been originally issued in her name. Fact Finding 25 b 2. Peak created a bogus invoice as to another vendor (Grove City Paving) so as to have documentation to support check 5968, which she had issued to non - existent payee "L &D Enterprise" and deposited into a personal account. Fact Findings 26 b 1 -3. Peak altered the endorsements on checks 5699, 5716, 5914, and 5968 in an additional effort to conceal her misappropriation. As detailed in Fact Findings 28 -29, Peak intentionally listed false information in official Township meeting minutes to further conceal her misappropriation of Township funds for her personal purposes. The parties have stipulated that Peak, as the Township Secretary /Treasurer, realized a private pecuniary gain of $15,242.93 as a result of issuing the aforesaid Township checks to herself and /or other payees on her behalf. The Fact Findings also include a reference to a digital camera purchased with Township check number 6105. Fact Finding 38 c. Peak claimed the camera was purchased with the knowledge of the Supervisors for documenting road damage. Per the Fact Finding, Peak provided no explanation regarding why the invoice had been altered to represent the purchase of a photocopier cartridge. As for the Stipulated Findings pertaining to Peak's Statements of Financial Interests (SFIs), Peak denied failing to file SFIs for calendar years 2003 and 2004. As Township Secretary /Treasurer, Peak was responsible for the maintenance and preservation of SFI forms filed with the Township. The parties have stipulated that given the disarray of the Township's filing system, sufficient evidence could not be developed to prove Peak did not in fact timely file her SFI forms for calendar years 2003 and 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 allegation as follows: Peak, 06 -033 Page 15 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 when Peak issued checks to herself and /or for her personal benefit from township accounts; and b. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Peak altered township checks issued to herself to conceal that funds were being paid to her or for her benefit; and c. That no violation of Section 1104(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1104(a) occurred in relation to Peak's failure to file Statements of Financial Interests for the 2003 and 2004 calendar years, as there was insufficient evidence to substantiate the allegation. 4. Peak agrees to make payment in the amount of $15,404.84 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. If Peak has not already done so, she agrees to file amended Statements of Financial Interests for calendar years 2003 and 2004 with Deer Creek Township and a copy of each forwarded to this Commission. 5. The Investigative Division will recommend that the State Ethics Commission forward this matter to the appropriate law enforcement or other authority for review purposes, but will make no specific recommendations regarding any action such law enforcement or other authority should take. 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. 6. Peak agrees to waive her rights to an evidentiary hearing and appellate rights without prejudice to so proceed in the event that the State Ethics Commission does not accept this agreement. Consent Agreement, at 1 -2. In considering the Consent Agreement, both of the recommended violations of Section 1103(a) of the Ethics Act have been established. Cf., Rhone, Order 1430; Walters, Order 1361. First, Peak used the authority of her public position as Township Secretary /Treasurer to issue at least five Township checks totaling $15,242.93 to herself or to other payees on her behalf, which funds were not due as compensation to Peak. Such payments constituted a private pecuniary benefit to Peak, because they did not constitute authorized compensation to her. Peak essentially used Township funds to pay for her personal mortgage and insurance and for other personal uses. But for being the Township Secretary /Treasurer, with signature authority as to Township accounts and sole control and custody of the Township finances, Township facsimile stamp, and Township records including bank statements, cancelled checks, check registers, and checkbooks, Peak, 06 -033 Page 16 Peak would not have been in a position to misappropriate Township funds. Peak further used the authority of her public position as Township Secretary /Treasurer to conceal her misappropriations of Township funds, specifically by: (1) using correction fluid to alter the names of the original payees on four of the five cancelled checks in question; (2) making a false notation on one vendor invoice (Walsh Equipment invoice number 314604) to conceal the fact that check number 5914 had been originally issued in her name; (3) creating a bogus invoice as to another vendor (Grove City Paving) so as to have documentation to support check 5968, which she had issued to non - existent payee "L &D Enterprise" and deposited in a personal account; (4) altering the endorsements on checks 5699, 5716, 5914, and 5968; (5) including a misleading notation in the memo section of check 5464 so that it would appear to relate to a Township purchase; and (6) intentionally listing false information in official Township meeting minutes to further conceal her misappropriation of Township funds for her personal purposes. The parties have stipulated that the resulting amount received by Peak, specifically $15,242.93, was a private pecuniary benefit to Peak derived as a result of issuing the aforesaid Township checks to herself and /or other payees on her behalf. With each element of the recommended violations of Section 1103(a) having been established, we hold that a violation of Section 1103(a) of the Ethics Act occurred when Peak issued checks to herself and /or for her personal benefit from Township accounts. We further hold that a violation of Section 1103(a) of the Ethics Act occurred when Peak altered Township checks issued to herself to conceal that funds were being paid to her or for her benefit. As for the allegation involving Peak's failure to file SFIs for the 2003 and 2004 calendar years, we find no violation based upon an insufficiency of evidence. This disposition is necessary given the Stipulated Finding that due to the disarray of the Township's filing system, sufficient evidence could not be developed to prove Peak did not in fact timely file her SFI forms for calendar years 2003 and 2004. Fact Finding 37 c. We hold that no violation of Section 1104(a) of the Ethics Act occurred in relation to Peak's alleged failure to file Statements of Financial Interests for the 2003 and 2004 calendar years, based upon an insufficiency of evidence to substantiate the allegation. Section 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. Peak has agreed to pay restitution in the amount of $15,404.84 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. Additionally, to the extent Peak has not already done so, she has agreed to file amended SFIs for calendar years 2003 and 2004 with the Township, and to forward a copy of each such amended SFI to this Commission for compliance verification purposes. As part of the Consent Agreement, the Investigative Division has recommended that this Commission forward this matter to the appropriate law enforcement or other authority for review purposes, without making specific recommendations regarding any action such law enforcement or other authority should take. 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. Peak, 06 -033 Page 17 Accordingly, per the Consent Agreement of the parties, Peak is directed to pay restitution in the amount of $15,404.84 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. To the extent Peak has not already done so, she is directed to file amended SFIs for calendar years 2003 and 2004 with the Township within thirty (30) days of the issuance of the final adjudication in this matter, providing full financial disclosure as required by the Ethics Act, and to forward a copy of each of the aforesaid amended SFIs to this Commission for compliance verification purposes. Additionally, given the nature of the violations of Section 1103(a) of the Ethics Act, this case will be referred to the Mercer County District Attorney, the Pennsylvania Attorney General, the U.S. Attorney, the Pennsylvania Department of Revenue, and the Internal Revenue Service for review and appropriate action. IV. CONCLUSIONS OF LAW: 1. As Secretary /Treasurer of Deer Creek Township ( "Township "), Mercer County, from January 6, 1992, through December 31, 2004, Respondent Linda Peak ( "Peak ") was a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Peak violated Section 1103(a) of the Ethics Act when she issued checks to herself and /or for her personal benefit from Township accounts. 3. Peak violated Section 1103(a) of the Ethics Act when she altered Township checks issued to herself to conceal that funds were being paid to her or for her benefit. 4. No violation of Section 1104(a) of the Ethics Act occurred in relation to Peak's alleged failure to file Statements of Financial Interests for the 2003 and 2004 calendar years, based upon an insufficiency of evidence. In Re: Linda Peak, Respondent ORDER NO. 1438 File Docket: 06 -033 Date Decided: 6/11/07 Date Mailed: 6/29/07 1 Respondent Linda Peak ( "Peak "), a public official in her capacity as Secretary /Treasurer of Deer Creek Township ( "Township"), Mercer County, from January 6, 1992, through December 31, 2004, violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., when she issued checks to herself and /or for her personal benefit from Township accounts. 2. Peak violated Section 1103(a) of the Ethics Act when she altered Township checks issued to herself to conceal that funds were being paid to her or for her benefit. 3. No violation of Section 1104(a) of the Ethics Act occurred in relation to Peak's alleged failure to file Statements of Financial Interests for the 2003 and 2004 calendar years, based upon an insufficiency of evidence. 4. Per the Consent Agreement of the parties, Peak is directed to pay restitution in the amount of $15,404.84 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. To the extent Peak has not already done so, she is directed to file amended Statements of Financial Interests for calendar years 2003 and 2004 with the Township within thirty (30) days of the issuance of the final adjudication in this matter, providing full financial disclosure as required by the Ethics Act, and to forward a copy of each of the aforesaid amended Statements of Financial Interests to this Commission for compliance verification purposes. 6. This case will be referred to the Mercer County District Attorney, the Pennsylvania Attorney General, the U.S. Attorney, the Pennsylvania Department of Revenue, and the Internal Revenue Service for review and appropriate action. BY THE COMMISSION, Louis W. Fryman, Chair