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HomeMy WebLinkAbout663-S JeannettePHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 In Re: Mark Jeannette, Respondent File Docket: X-ref: Date Decided Date Mailed: FACSIMILE: 717-787-0806 WEBSITE: Wwwathics,pa.gov 19-020-P Order No. 663-S 9123120 9,/30/20 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Ro er Nick Meyanie DePalma Michael A. Schwartz Shelley Y. Simms This is a final adjudication of the State Ethics Commission as to the alleped 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 §gq. 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, An Answer was filed and a hearing was held. The record is complete. I. FINDINGS: 1. Respondent is an adult individual who resides or maintains a mailing address at [address redacted], hereinafter referred to as "the Harrisburg Address." 2. At all times relevant to these proceedings, Respondent has been an Administrative Officer 2 with the Pennsylvania Department of Community and Economic Development, and as such, Respondent has at all times relevant to these proceedings been a "public employee" as defined in Section 1102 of the Ethics Act, 65 Pa.C.S. § 1102. 3. Respondent as a public employee has been subject to the Statement of Financial Interests filing provisions of the Ethics Act. 4. Respondent failed to file a Statement of Financial Interests for calendar year 2017 by May I of 2018, 5. Lori Garvin ("Ms. Garvin") is employed with the Governor's Office of Administration. a. Ms. Garvin administers the financial disclosure program for the Governor's Office of Administration, b. The Pennsylvania HR Service Center sent Respondent, a letter dated February 8, 2018, which advised Respondent of his requirement to file a Statement of Financial Interests for calendar year 2017 by May 1, 2018. (ID 2). 1. The February 8, 2018, letter informed Respondent that a Statement Jeannette, 19-020-P age of Financial Interests could be filed online via the State Ethics Commission's website at www.ethics. a. ov and that Respondent could call the State Ethics Commission at 17-783-1610 or 800- 932-0936 if he had any procedural questions. 2. The February 8, 2018, letter was forwarded to Respondent at the Harrisburg Address. 3. Respondent did not file a Statement of Financial Interests for calendar year 2017 in response to the February 8, 2018, letter from the Pennsylvania HR Service Center. C. The Governor's Office of Administration sent Respondent a letter dated June 15, 2018, which notified Respondent that by virtue of the work he performed for the Commonwealth in calendar year 2017, he was required to disclose certain financial information. (ID 3). The June 15, 2018, letter informed Respondent that a Statement of Financial Interests could be filed online via the State Ethics Commission's website at www.ethics.pa.gov and that Respondent could call the State Ethics ommission at 17-783-1610 or 800- 932-0936 if he had any procedural questions 2. The June 15, 2018, letter was mailed to Respondent at the Harrisburg Address. 3. Respondent did not file a Statement of Financial Interests for calendar year 2017 in response to the June 15, 2018, letter from the Governor's Office of Administration. 6. Jessica Wenger ("Ms. Wenger") is employed with the State Ethics Commission. a. Ms. Wenger serves as the Statement of Financial Interests Compliance Manager for the State Ethics Commission. b. The Governor's Office of Administration provides the State Ethics Commission with list(s) of Commonwealth employees who failed to file Statements of Financial Interests. C. The State Ethics Commission issued a Notice of Intent to Commence Civil Penalty Proceedings ("Notice letter") dated November 13, 2018, to Respondent, notifying him of his failure to file a Statement of Financial Interests for calendar year 2017. (ID 4-1 — ID 4-2). 1. The November 13, 2018, Notice letter was forwarded to Respondent at the Harrisburg Address by U.S. mail and was not returned to the State Ethics Commission by the U.S. Postal Service. d. The State Ethics Commission issued a Final Notice letter dated January 22, 2019, to Respondent, notifying him of his failure to file a Statement of Financial Interests for calendar year 2017. (ID 5-1 -- ID 5-2). The January 22, 2019, Final Notice letter was forwarded to Respondent at the Harrisburg Address by Certified Mail, Return Receipt Requested. 2. The Domestic Return Receipt for the Final Notice letter bore an Jeannette, 19-020-P agl' e alegible signature with a delivery date of January 25, 2019. (ID 5- 3. Tracking history obtained from the U.S. Postal Service for the tracking number for the Final Notice letter provides that the Final Notice letter was delivered to an individual in Harrisburg, Pennsylvania, at 12:29 p.m. on January 25, 2019. (ID 5-5). 4. On January 28, 2019, the State Ethics Commission received the Domestic Return Receipt for the Final Notice letter. (ID 5-3 — ID 5- 4). 7. April H. Duncan ("Ms. Duncan") is employed as the Assistant Property Manager of the apartment building ("Apartment Building") in which Respondent resides at the Harrisburg Address. a. Employees who work at the Apartment Building do not sign for certified mail for residents of the Apartment Building. 8. ID 4-1 — ID 4-2 consists of the Notice letter dated November 13, 2018, from the Executive Director of the State Ethics Commission to Respondent, which notified Respondent of his failure to file a Statement of Financial Interests for calendar year 2017 and provided Respondent an opportunity to avoid the institution of civil penalty proceedings by filin a complete and accurate Statement of Financial Interests for calenddar year 2 17 within twenty (20P days of the date of the Notice letter. Respondent did not file a Statement of inancial Interests for calendar 2017 within the 20-day grace period provided by the November 13, 2018, Notice letter. 9. ID 5-1 — ID 5-2 consists of the Final Notice letter dated January 22, 2019, from the Executive Director of the State Ethics Commission to Respondent, which notified Respondent of his failure to file a Statement of Financial Interests for calendar year 2017 and provided Respondent an opportunity to avoid the institution of civil penalty proceedings by filin a complete and accurate Statement of Financial Interests for calendar year T017 within twenty (20) days of the date of the Final Notice letter. Respondent did not file a Statement of Financial Interests for calendar 2017 within the 20-day grace period provided by the January 22, 2019, Final Notice letter. 10. On May 6, 2019, the Investigative Division filed with the State Ethics Commission a Petition for Civil Penalties against Respondent, alleging that Respondent failed to file a Statement of Financial Interests for calendar year 2017, which Statement of Financial Interests was to be filed by May 1 of 2018. 11. On May 14, 2019, the Chair of the State Ethics Commission issued an Order to Show Cause, ordering Respondent to show cause why a civil penalty should not be levied against him. a. The Order to Show Cause was forwarded to Respondent at the Harrisburg Address. 12. On June 28, 2019, Respondent filed a Statement of Financial Interests with the State Ethics Commission. (ID 7-5). a. The Statement of Financial Interests did not identify the calendar year for which the Statement of Financial Interests was filed. 13. On June 28, 2019, Respondent filed an Answer in the form of a "Response to Jeannette, 19-020-P age Rule to Show Cause," in which Respondent asserts that: (1) he had previously been asked by the Commonwealth to complete a different and inapplicable form, and he had no objection to completing a Statement of Financial Interests; (2) he did not receive the November 13, 2018, Notice letter; (3) he did not receive the January 22, 2019, Final Notice letter; (4) he would not have been at the Harrisburg Address but would have been at his business when the Final Notice letter was delivered to the Harrisburg Address; (5) the signature on the Domestic Return Receipt for the Final Notice letter is illegible and is not his signature; (6) the Domestic Return Receipt for the Final Notice letter does not contain the printed name of the recipient and does not indicate whether the signature on the Domestic Return Receipt is that of the addressee or an aggent; (7) he was not served with notice of the delinquency of his Statement of Financia he for calendar year 2017; and (8) the Statement of Financial Interests for calendar year 2017 has now been completed, and a penalty is not appropriate. In his Answer, Respondent stated that "If the matter is not dismissed without penalty, a hearing is requested." (Answer, at 2). 14. A Notice of Hearing was issued on January 23, 2020, notifying Respondent and the Investigative Division that the State Ethics Commission would conduct a hearing in this matter on February 6, 2020, at which time the parties would be provided an opportunity to be heard and to present evidence. 15. Although Respondent did not attend the hearing that was held in this matter on February 6, 2020, he was represented by counsel at the hearing. a. Respondent's counsel presented no witnesses or other evidence at the hearing. 16. Section 1109(f) of the Ethics Act provides: § 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). 17. For each violation the State Ethics Commission finds, Respondent is subject to civil penalty liability under Section 1109(f) of the Ethics Act, 65 Pa.C.S. § 1109(f), at a rate of not more than $25.00 per day for each day the Statement of Financial Interests remains delinquent or deficient, for a maximum civil penalty of $250.00 per violation. Because Respondent has committed one violation alleed herein, Respondent could be subject to total maximum civil penalty liability of 9250.00. 18. The Investigative Division asserts that there are no mitigating circumstances in this case and that Respondent should be assessed the maximum civil penalty of Jeannette, 19-020-P Page......_,.,5..._ $250.00, in that the twenty -day deadline set forth in the said final Notice letter to Respondent expired without Respondent complying. ll. DISCUSSION: As an Administrative Officer 2 for the Pennsylvania Department of Community and Economic Development ("Department of Community and Economic Development"), Mark Jeannette ("Jeannette") was at all times relevant to these proceedings a °public employee" subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seg. Pursuant to Section 1104(a) of the Ethics Act, Jeannette was specifically required to file a Statement of Financial Interests for calendar year 2017 with the Department of Community and Economic Development 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 dear 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 Jeannette as an Administrative Officer 2 for the Department of Community and Economic Development 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 1107(5) of the Ethics Act provides, in pertinent part, as follows: § 1107. Powers and duties of commission In addition to other powers and duties prescribed by law, the commission shall: (5) Inspect statements of financial interests which have been filed in order to ascertain whether any reporting person has failed to file such a statement or has filed a deficient statement. If, upon inspection, it is determined that a reporting person has failed to file a statement of financial interests or that any statement which has been filed fails to conform with the requirements of section 1105 (relating to statement of financial interests), then the commission shall in writing notify the person. Such notice shall state in detail the deficiency and the penalties for failure Jeannette, 19-020-P agp e -6______ to file or for filing a deficient statement of financial interests. 65 Pa. C.S. § 1107(5). Section 1109(f) of the Ethics Act provides as follows: § 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 ma ority vote of its members, levy a civil penalty upon any person subject o 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). Procedurally, in accordance with Section 1107(5) of the Ethics Act, the Investigative Division of the State Ethics Commission sent a Notice of Intent to Commence Civil Penalty Proceedings (Notice lettVatement dated November 13, 2018, to Jeannette, stating that Jeannette had failed to file a of Financial Interests for calendar ye2017. The Notice letter provided Jeannette an opportunity to avoid the institution of ar civil penalty proceedings by filing an accurate and complete Statement of Financial Interests for calendar year 2017 within twenty (20) days of the date of the Notice letter. Jeannette did not file a Statement of Financial Interests within such 20- day grace period. A Final Notice letter dated January 22, 2019, containing the same substantive information as the first Notice letter, and providing another 20-day grace period for filing the delinquent Statement of Financial Interests, was sent to Jeannette. Once again, Jeannette did not file a Statement of Financial Interests within the 20-day grace period. On May 6, 2019, the Investigative Division instituted formal proceedings against Jeannette by filing with the State Ethics Commission a Petition for Civil Penalties, which was subsequently served upon Jeannette. On May 14, 2019, the Commission Chair issued an Order to Show Cause, ordering Jeannette to show cause why a civil penalty should not be levied against him. On June 28, 2019, Jeannette filed a Statement of Financial Interests with the State Ethics Commission that did not indicate the calendar year for which the Statement of Financial Interests was filed. Jeannette also filed an Answer in the form of a "Response to Rule to Show Cause," asserting that: (1) he had previously been asked by the Commonwealth to complete a different and inapplicable form, and he had no objection to completing a Statement of Financial Interests; (2) he did not receive the November 13, 2018, Notice letter; (3) he did not receive the January 22, 2019, Final Notice letter; (4) he would not have been at the Harrisburg Address but would have been at his business when the Final Notice letter was delivered to the Harrisburg Address; (5) the signature on the Domestic Return Receipt for the Final Notice letter is illegible and is not his signature; (6) the Domestic Return Receipt for the Final Notice letter does not contain the printed name of the recipient and does not indicate whether the signature on the Domestic Return Receipt is that of the addressee or an agent; (7) he was not served with notice of the delinquency of his Statement of Financial Interests for calendar year 2017; and (8) the Statement of Financial Interests for calendar year 2017 has now been completed, and a penalty is not appropriate. Jeannette, 19-020-P age At the request of Jeannette, a hearing was held in this matter on February 6, 2020. Although Jeannette did not attend the hearing, he was re resented by counsel at the hearing. Jeannette's counsel presented no witnesses or other evidence in support of Jeannette's assertion that he did not receive the Notice letter and the Final Notice letter. The Investigative Division has filed a Brief and Closing Statement arguing that there are no mitigating circumstances in this case and that Jeannette should be assessed a civil penalty in the amount of $250.00 for failing to timely file a Statement of Financial Interests for calendar year 2017 with the Department of Community and Economic Development. Jeannette has filed a Brief and Closing Statement, in which he asserts that there are mitigating circumstances in this case. Specifically, Jeannette asserts that: (1) two years after his Commonwealth employment ended, the Investigative Division initiated proceedings to compel him to file a Statement of Financial Interests; (2) there is no evidence that the Commonwealth ever asked him to file a Statement of Financial Interests during the course of his Commonwealth employment, and the only form the Commonwealth ever asked him to file was a different and inapplicable form which would have wrongful) required financial disclosures regarding his business; (3) he does not challenge that �e had a duty to file a Statement of Financial Interests once he received notice that the Ethics Act required him to file the form; (4) he does not dispute that the Notice letter and the Final Notice letter were mailed to him, but he disputes that the Notice letter and the Final Notice letter were received by him; (5) he operated a business and would not have been at his residence when regular or certified mail was delivered, and someone other than him signed the Domestic Return Recei t for the Final Notice letter; and (6) he did not receive notice that he was requiretofile a Statement of Financial Interests for calendar year 2017 until he received the Petition for Civil Penalties, at which time he promptly filed the form. Jeannette further asserts that a civil penaltyy is not warranted because his business/proprietorship has been closed due to the COV1D-19 pandemic and these times are an economic hardship for everyone. Pursuant to Section 1109(f) of the Ethics Act, this Commission may levy a maximum civil penalty against Jeannette for the delinquent Statement of Financial Interests for calendar year 2017. Although we may consider mitigating factors when exercising our discretion to levy civil penalty(ies), see, State Ethics Commission Resolution No. 91-002, there is no evidence of record w-h ch would tusti y t e imposition of a lesser civil pena ty. Jeannette's assertion that he was not properly served with notice of the delinquency of his Statement of Financial Interests for calendar year 2017 is unsupported. There is nothing of record that would constitute a defense or excuse for Jeannette's failure to comply with the Ethics Act. To the extent that Jeannette contends that the levying of a civil penalty against him would constitute an economic hardship, his contention is unsupported. We find that Jeannette, as an Administrative Officer 2 for the Department of Community and Economic Development, failed to comply with Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when he failed to timely file a Statement of Financial Interests for calendar year 2017 with the Department of Community and Economic Development. We hereby levy one maximum civil penalty against Jeannette at the rate of Twenty -Five Dollars ($25.00) per day for each day his Statement of Financial Interests for calendar year 2017 has remained delinquent. Given the number of days during which the Statement of Financial Interests has remained delinquent, the resultant amount to be levied against Jeannette is Two Hundred and Fifty Dollars ($250.00). Jeannette shall be ordered to make payment of the above civil penalty in the amount of $250.00 by no later than the thirtieth (30{") day after the mailing date of this Jeannette, 19-020-P agT a $^ adjudication and Order, by forwarding a check to this Commission made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. Jeannette shall be ordered to file a complete and accurate Statement of Financial Interests for calendar year 2017 with the Department of Community and Economic Development by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order, with one copy forwarded to this Commission for compliance verification purposes. III. CONCLUSIONS OF LAW: 1. Mark Jeannette ("Jeannette"), as an Administrative Officer 2 for the Pennsylvania Department of Community and Economic Development, was at all times relevant to these proceedings 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. Jeannette, as an Administrative Officer 2 for the Pennsylvania Department of Community and Economic Development, failed to comply with Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when he failed to timely file a Statement of Financial Interests for calendar year 2017 with the Pennsylvania Department of Community and Economic Development. 3, Notice of the delinquency of Jeannette'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: Mark Jeannette, File Docket: 19-020--P Respondent Date Decided: 9123/20 Date Mailed: 9/30/20 ORDER NO. 663-S Mark Jeannette "Jeannette"), as an Administrative Officer 2 for the Pennsylvania Department of ommunity and Economic Development, failed to comply with Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(a), when he failed to timely file a Statement of Financial Interests for calendar year 2017 with the Pennsylvania Department of Community and Economic Development. 2. This Commission hereby levies one maximum civil penalty against Jeannette at the rate of Twenty -Five Dollars ($25.00) pper day for each day his Statement of Financial Interests for calendar year 2017 has remained delinquent, for a total civil penalty of Two Hundred and Fifty Dollars ($250.00). Jeannette is ordered to pay said civil penalty in the total amount of $250.00 by no later than the thirtieth 2hics 0th) day after the mailing date of this Order, by forwarding a check to the State Commission made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. 3. Jeannette is ordered to file a complete and accurate Statement of Financial Interests for calendar year 2017 with the Pennsylvania Department of Community and Economic Development by no later than the thirtieth (30th) day after the mailing date of this Order, with one copy forwarded to the Pennsylvania State Ethics Commission for compliance verification purposes. 4. Failure to comply with Paragraph 2 or 3 of this Order will result in the initiation of an appropriate enforcement action. BY THE COMMISSION,