Order No. 1738 (Kashnoski)
Shamokin Area School District
Board of School Directors
Coal Township, PA
1. As a Member of the Shamokin Area School District (“SASD”) Board of School Directors (“Board”), Richard Kashnoski (“Kashnoski”) violated Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when he participated in discussions and actions of the SASD Board, including but not limited to participating in Board action resulting in the awarding of banking services to Mid Penn Bank, at a time when he was an employee of Mid Penn Bank.
2. Kashnoski violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when through his public position, he accessed and used his influence as a Board Member with SASD Administration/staff to arrange meetings between the SASD and Riverview Bank in order to facilitate the moving of SASD accounts to Riverview Bank, and when he participated in discussions and actions of the SASD Board, including but not limited to participating in bid opening/reviews and participating in interviews/questioning of bidders, resulting in the awarding of banking services to Riverview Bank all at a time when he was an employee of Riverview Bank.
3. Kashnoski violated Sections 1105(a) and 1105(b)(8) of the Ethics Act, 65 Pa.C.S. §§ 1105(a) and 1105(b)(8), when he failed to report his employment with Miners Bank/Mid Penn Bank as an “Office, Directorship, or Employment in any Business” upon Statement of Financial Interests forms filed for the 2014 and 2015 calendar years and failed to include a date accompanying his signature for the 2015 calendar year Statement of Financial Interests.
4. Kashnoski did not violate Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), with regard to his Statements of Financial Interests for calendar years 2014 and 2015 as there is no basis in the Fact Findings to conclude that such forms were not timely filed.
5. Pursuant to Section 1107(13) of the Ethics Act, 65 Pa.C.S. § 1107(13), Kashnoski is directed to make payment of restitution to the SASD in the amount of $3,232.72 by certified check or money order in the amount of $3,232.72 payable to the Shamokin Area School District and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order.
6. Kashnoski is also directed to pay a treble penalty in the amount of $9,698.16 into the State Treasury of the Commonwealth of Pennsylvania, which payment shall be made payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order, and shall be forwarded by this Commission to the Pennsylvania Office of the State Treasurer for deposit in the General Fund of the Commonwealth of Pennsylvania.
7. Kashnoski is further directed to not accept any reimbursement, compensation or other payment from the SASD representing a full or partial reimbursement of the aforesaid restitution and/or treble penalty.
8. Non-compliance with Paragraph 5, 6, or 7 of this Order will result in the institution of an order enforcement action.
9. This matter will be referred to the Office of the Attorney General of the Commonwealth of Pennsylvania, the Office of the Northumberland County District Attorney, and the Pennsylvania Department of Banking and Securities for review and such action as they may deem appropriate.
Commissioner Roger Nick concurs with regard to the finding of the above violations but dissents with respect to the amount of the financial penalties imposed, as he would order restitution in the amount of $46,066.29 as requested by the Investigative Division.
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