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HomeMy WebLinkAbout650-S GergelyPHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 In Re: Marc J. Gergely, Respondent STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 File Docket: X-ref: Date Decided Date Mailed: FACSIMILE: 717-787.0806 WEBSITE: www.ethics.pa.gov 19-001-P Order No. 650-S 1123/20 2/11 /20 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick Melanie DePalma Michael A. Schwartz Shelley Y. Simms This is a final adjudication of the State Ethics Commission as to the alleged delinquency and/or deficiency of Statement(s) of Financial Interests required to be filed pursuant to Sections 1104 and 1105 of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq. The Investigative Division initiated these proceedings by filing with the State Ethics Commission and serving upon Respondent a Petition for Civil Penalties. An Order to Show Cause was issued to Respondent. A Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. I. FINDINGS: 1. Respondent Marc J. Gergely ("Respondent") is an adult individual who resides or maintains a mailing address a} [address redacted]. 2. At all times relevant to these proceedings, Respondent [has been a Member of the Pennsylvania House of Representatives, and as such, Respondent] has been a "public official" as defined in Section 1102 of the Ethics Act, 65 Pa.C.S. § 1102. 3. Respondent, as a public official, is subject to the Statement of Financial Interests filing provisions of the Ethics Act. 4. Respondent failed to timely provide full financial disclosure as required by the Ethics Act when he neglected to file a complete and accurate Statement of Financial Interests for calendar year 2017 by May 1, 2018. Respondent therefore transgressed Section 1104 of the Ethics Act, 65 Pa.C.S. § 1104. 5. By Notice Letter dated May 7, 2018, Respondent was served with Notice in accordance with Section 11.07(5) of the Ethics Act of the specific allegations against Respondent concerning a non -filing of his calendar year 2017 Statement of Financial Interests. Said Notice Letter provided Respondent an opportunity to avoid the institution of these civil penalty proceedings by filing an accurate and complete Statement of Financial Interests for calendar year 2017 within twenty Pinancial 20) days of the date of the Notice Letter. Respondent failed to file a Statement of Interests for calendar year 2017 so as to comply with the specific requirements of the Ethics Act. 6. By Notice Letter dated May 31, 2018, Respondent was served with additional Geer ell, 19-001-P Rage 2 Notice in accordance with Section 1107(5) of the Ethics Act of the specific allegations against Respondent concerning a non -filing if his calendar year 2017 Statement of Financial Interests, Said Notice Letter provided Respondent an opportunity to avoid the institution of civil penalty proceedings by filing an accurate and complete Statement of Financial Interests for calendar year 2017 so as to comply with the specific requirements of the Ethics Act. 7. On July 5, 2018, after the expiration of the second 20-day cure period contained within the second Notice Letter dated May 31, 2018, Respondent filed a calendar year 2017 Statement of Financial Interests form with the State Ethics Commission. 8. Respondent's July 5, 2018, Statement of Financial Interests form was delinquent by no less than 15 days beyond the cure period. 9. Respondent's July 5, 2018, Statement of Financial Interests was deficient in that it failed to include all reportable sources of income, namely his Commonwealth salary. 10. On June 5, 2019, subsequent to the filing of the Petition for Civil Penalties, Respondent filed an amended complete and accurate Statement of Financial Interests for calendar year 2017 with the State Ethics Commission. IL DISCUSSION: As a Member of the Pennsylvania House of Representatives ("House of Representatives"), Marc J. Gergely ("Gergely") was at all times relevant to these proceedings a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq. Pursuant to Section 1104(a) of the Ethics Act, Gergely was specifically required to file a Statement of Financial Interests for calendar year 2017 with the State Ethics Commission and the Chief Clerk of the House of Representatives on or before May 1, 2018. Section 1104(a) provides: § 1104. Statement of financial interests required to be filed (a) Public official or public employee. -.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). The complete financial disclosure which Gergely as a Member of the House of Representatives was required to provide in the Statement of Financial Interests form is statutorily mandated in detail at Section 1105 of the Ethics Act, 65 Pa.C.S. § 1105. Section 1109(f) of the Ethics Act provides as follows: Gem, 19-001-P Page 3 § 1109. Penalties (f) Civil penalty, In addition to any other civil remedy or criminal penalty provided for in this chapter, the commission may, after notice has been served in accordance with section 1107(5) (relating to powers and duties of commission) and upon a majority vote of its members, levy a civil penalty upon any person subject to this chapter who fails to file a statement of financial interests in a timely manner or who files a deficient statement of financial interests, at a rate of not more than $25 for each day such statement remains delinquent or deficient. The maximum penalty payable under this paragraph is $250. 65 Pa.C.S. § 1109(f). An application of Section 1109(f) to this case establishes that this Commission has the discretion to levy a maximum civil penalty against Gergely for the delinquent/deficient Statement of Financial Interests for calendar year 2017. The prerequisite service of a Notice letter in accordance with Section 1107(5) was satisfied. Gergely did not remedy the failure to comply with the Ethics Act although given more than the usual grace period following Notice in which to do so. The Investigative Division then instituted formal proceedings against Gergely by filing with this Commission and serving upon him a Petition for Civil Penalties. The Commission Chair issued an Order to Show Cause, ordering Gergely to show cause why a civil penalty should not be levied against him. The parties then filed a Stipulation of Findings and Consent Agreement. The parties propose that this case be resolved by this Commission finding that Gergge7ly failed to timely file a complete and accurate Statement of Financial Interests for the 20calendar year by May 1, 2018, and he thereby violated Section 1104(a) of the Ethics Act. We note that the Consent Agreement of the parties provides that: (1) Gergely has made payment of a civil penalty in the amount of $250.00 in settlement of this matter by forwarding to this Commission a certified check or money order payable to the Commonwealth of Pennsylvania; and (2) after the filing of the Petition for Civil Penalties, Gerggely filed a complete and accurate Statement of Financial Interests for calendar year 2017. We believe that the Consent Agreement sets forth a proper disposition for this case, based upon our review of the totality of the facts and circumstances. Accordingly, we approve the Consent Agreement that has been submitted by the parties. We hereby find that Gergely, as a Member of the House of Representatives, failed to timely file a complete and accurate Statement of Financial Interests for the 2017 calendar year by May 1, 2018, and he thereby violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a) In that Gergely has made payment of a civil penalty in the amount of $250.00 and has now filed a complete and accurate Statement of Financial Interests for calendar year 2017, no further action is required in this case and this case is closed. Ill. CONCLUSIONS OF LAW: 1. As a Member of the Pennsylvania House of Representatives, Marc J. Gergely ("Gergely") was at all times relevant to these proceedings a "public official" subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Ge gely, 19-001-P Page 4 Pa.C.S. § 1101 et seq. 2. Gergely, as a Member of the Pennsylvania House of Representatives, failed to timely file a complete and accurate Statement of Financial Interests for the 2017 calendar year by May 1, 2018, and he thereby violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a). 3. Notice of the delinquency of Gergely's Statement of Financial Interests for calendar year 2017 was previously served upon him in accordance with Section 1107(5) of the Ethics Act, 65 Pa.C.S. § 1107(5). 4. Based upon the totality of the circumstances in this case, a civil penalty in the total amount of $250.00 is warranted. In Re: Marc J. Gergely, Respondent File Docket: 19-001-P Date Decided: 1 /23/20 Date Mailed: 2/11/20 ORDER NO. 650-S 1. Marc J. Gergely ("Gergely"), as a Member of the Pennsylvania House of Representatives, failed to timely file a complete and accurate Statement of Financial Interests for the 2017 calendar year by May 1, 2018, and he thereby violated Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(a). 2. In that Gergely has paid a civil penalty in the amount of $250.00 through this Commission to the Commonwealth of Pennsylvania and has now filed a complete and accurate Statement of Financial Interests for calendar year 2017, no further action is required in this case and this case is closed. BY THE COMMISSION, a is o as A. o a alla, air