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HomeMy WebLinkAbout682-S GustovichPFIONE: 717-783-1610 STATE ETHICS COMMISSION FACSIMILE: 717-787-0806 TOLL FREE; '1-800-932-0936 FINANCE BUILDING WEBSITE: wym, ethics. oaxiov 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 In Re: Thomas Gustovich, File Docket: 20-03 1 -P Respondent X-ref. Order No. 682-S Date Decided: 3/29/21 Date Mailed: 3/31/21 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 Pennsylvania 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. An Answer was not filed by the Respondent, and a hearing was deemed waived. The record is complete. The Findings in this Order are derived from the Petition for Civil Penalties filed by the Investigative Division. 1. FINDINGS: I Respondent is an adult individual who resides or maintains a mailing address at [address redacted]. 2. At all times relevant to these proceedings, Respondent has been a School Director for the Bethlehem -Center School District, and as such, Respondent has at all times relevant to these proceedings 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 has failed to provide full financial disclosure as required by the Ethics Act. Respondent has failed to file Statements of Financial Interests for calendar years 2015, 2016, and 2017, which Statements of Financial Interests were to be filed by May 1 of 2016, Gustovich, 20-031-P Page 2 May I of 2017, and May I of 2018, respectively. Respondent has therefore transgressed Sections 1104 and 1105 of the Ethics Act, 65 Pa.C.S. §§ 1104, 1105. 5. By Notice letter dated December 3, 2019, Respondent was served with Notice in accordance with Section 1107(5) of the Ethics Act of the specific allegations against Respondent concerning the above transgressions. Said Notice letter provided Respondent an opportunity to avoid the institution of these civil penalty proceedings by filing accurate and complete Statements of Financial Interests for calendar years 2015, 2016, and 2017 within twenty (20) days of the date of the Notice letter. Respondent has failed and refused to file Statements of Financial Interests for calendar years 2015, 2016, and 2017 so as to comply with the specific requirements of the Ethics Act. 6. By Notice letter dated December 27, 2019, Respondent was served with Notice in accordance with Section 1107(5) of the Ethics Act of the specific allegations against Respondent concerning the above transgressions. Said Notice letter provided Respondent an opportunity to avoid the institution of these civil penalty proceedings by filing accurate and complete Statements of Financial Interests for calendar years 2015, 2016, and 2017 within twenty (20) days of the date of the Notice letter. Respondent has failed and refused to file Statements of Financial Interests for calendar years 2015, 2016, and 2017 so as to comply with the specific requirements of the Ethics Act. 7. Section I I09(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). 8. For each violation the 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 three violations alleged herein, Respondent is subject to total maximum civil penalty liability of $750.00. Gustovich, 20-031-P Page 3 9. There are no mitigating circumstances and Respondent should be assessed the maximum civil penalty of $750.00, in that the twenty -day deadline set forth in the said final Notice letter to Respondent has expired and the Respondent has not complied. II. DISCUSSION: As a School Director for the Bethlehem -Center School District, Thomas Gustovich ("Gustovich") 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 sue. Pursuant to Section 1104(a) of the Ethics Act, Gustovich was specifically required to file Statements of Financial Interests for calendar years 2015, 2016, and 2017 with the Bethlehem - Center School District on or before May 1, 2016, May 1, 2017, and May 1, 2018, respectively. 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 I 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 I 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 Gustovich as a School Director for the Bethlehem -Center School District 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: § 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) Gustovich, 20-031-P Page 4 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 Gustovich for each delinquent Statement of Financial Interests for calendar years 2015, 2016, and 2017. The prerequisite service of allotice letter in accordance with Section 1107(5) was satisfied. Gustovich 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 Gustovich by filing with the State Ethics Commission and serving upon Gustovich a Petition for Civil Penalties. The Commission Chair issued an Order to Show Cause, ordering Gustovich to show cause why civil penalties should not be levied against him. Gustovich did not file an Answer to the Order to Show Cause. There is nothing of record that would constitute a defense or excuse for Gustovich's failure to comply with the Ethics Act. Gustovich has failed to show cause why civil penalties should not be levied against him in this matter. We find that Gustovich, as a School Director for the Bethlehem -Center School District, failed to comply with Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when he failed to file Statements of Financial Interests for calendar years 2015, 2016, and 2017 with the Bethlehem - Center School District. We hereby levy three maximum civil penalties against Gustovich, each at the rate of Twenty -Five Dollars ($25.00) per day, for each day his Statements of Financial Interests for calendar years 2015, 2016, and 2017 have remained delinquent. Given the number of days during which the Statements of Financial Interests have remained delinquent, the resultant amount to be levied against Gustovich is Seven Hundred and Fifty Dollars ($750.00). Gustovich shall be ordered to make payment of the above civil penalties in the total amount of $750.00 by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order, by forwarding a check to this Commission made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. Gustovich shall be ordered to file complete and accurate Statements of Financial Interests for calendar years 2015, 2016, and 2017 with the Bethlehem -Center School District by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order, with a copy of each such filing forwarded to this Commission for compliance verification purposes. Gustovich, 20-031-P Page 5 III. CONCLUSIONS OF LAW: Thomas Gustovich ("Gustovich"), as a School Director for the Bethlehem -Center School District, 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. 2. Gustovich, as a School Director for the Bethlehem -Center School District, failed to comply with Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when he failed to file Statements of Financial Interests for calendar years 2015, 2016, and 2017 with the Bethlehem -Center School District. 3. Notice of the delinquency of Gustovich's Statements of Financial Interests for calendar years 2015, 2016, and 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, the imposition of three maximum civil penalties in the total amount of $750.00 is warranted. In Re: Thomas Gustovich, File Docket: 20-031-P Respondent Date Decided: 3/29/21 Date Mailed: 3/31/21 ORDER NO. 682-S 1. Thomas Gustovich ("Gustovich"), as a School Director for the Bethlehem -Center School District, failed to comply with Section 1104(a) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1104(a), when he failed to file Statements of Financial Interests for calendar years 2015, 2016, and 2017 with the Bethlehem -Center School District. 2. This Commission hereby levies three maximum civil penalties against Gustovich, each at the rate of Twenty -Five Dollars ($25.00) per day, for each day his Statements of Financial Interests for calendar years 2015, 2016, and 20t7 have remained delinquent, for total civil penalty liability of Seven Hundred and Fifty Dollars ($750.00). Gustovich is ordered to pay said civil penalties in the total amount of $750.00 by no later than the thirtieth (30"') day after the mailing date of this Order, by forwarding a check to the Pennsylvania State Ethics Commission made payable to the Commonwealth of Pennsylvania, for deposit in the State Treasury. 3. Gustovich is ordered to file complete and accurate Statements of Financial Interests for calendar years 2015, 2016, and 2017 with the Bethlehem -Center School District by no later than the thirtieth (30th) day after the mailing date of this Order, with a copy of each such fling 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, Nicholas A. Colafella, zr