ETHICS What we should and shouldn’t be doing

1. ETHICSWhat we should and shouldn’t be doing Connecticut Tax Collectors’ Association March 20-23, 2013 Mystic, Connecticut Susan Jacobucci, Esq. CMFO City of Newark, New Jersey

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3. Connecticut • Adult diapers –no tax • Baby diapers - tax

4. “Public corruption poses a fundamental threat to our national security and way of life. It impacts everything from how well our borders are secured and our neighborhoods protected…to verdicts handed down in courts…to the quality of our roads, schools, and other government services. And it takes a significant toll on our pocketbooks, wasting billions in tax dollars every year.” Federal Bureau of Investigation

5. What Are Ethics?(and who cares anyway) • Knowing the difference between right and wrong • Right v. right • The boundaries by which we live: www.yourmorals.org • Your moral compass

6. Ethics Evolve • Learned Not Leave it to Beaver • Taught • Professional

7. How do we make ethical decisions? • Split second • Thought process • Academic versions

8. Real Life Dilemmas • Supermarket • Lady on the bus • Cheating (taxes/spouse) • King Solomon • Swordfish

9. Statistics (lie) • Ethics Resource Center • ERC - II • Rutgers Study • Connecticut Ethics

10. Lying (Liespotting) • On any given day we are lied to 10 – 200 times. • We lie more to strangers than to co-workers. Strangers lie 3 times within ten minutes of meeting each other. • Men lie 8 times more about themselves than about other people; women lie more to protect others. • The more intelligent the species, the more prevalent the lying. (Koko the gorilla).

11. LIESPOTTING • Babies will fake a cry – pause to see reaction. • 1 year old learn concealment • 2 year olds bluff • 5 year olds lie outright • 9 year olds cover-up • By the time you’re in college – lie to parents in one out of five times.

12. Lying is a cooperative act.

13. “One thing about the Mack administration — when I say that, it's me and Mack — we're not greedy. We're corruptible. We want anybody to make a buck. I'm there to buffer the thing where, you know, take the weight ... going to jail's my business. It ain't his.” Joseph “Jojo” Giorgianni

14. $900 • New Jersey - An auditor for the state Division of Taxation has been charged with demanding a bribe from a convenience store owner in return for not initiating an audit.

15. $1,156 • Buena Vista, NJ (pop. 7,570) – Deputy Tax Collector charged with stealing $1,156 that a property owner paid to settle his tax debt.

16. $13,000 • SOUTH ORANGE, N.J., Aug. 2 -- Ex-Tax Collector Moses P. Smith of South Orange was arrested this afternoon by Police Sergeant Charles H. Burke, on a warrant issued by Police Justice O'Reilly, charging him with embezzling $13,000 of the funds entrusted to his care as Township Collector.

17. $50,000 • A Pennsylvania tax collector was arrested on Friday for allegedly stealing more than $50,000 owed to the borough of Fayette City and Belle Vernon Area School District.

18. $17,364,63 • Greig, NY (WIBX) - One person is facing charges following an investigation into the misapplication of state funds in the Town of Greig. According to State Police in Lowville, 65 year-old Karin Fayle, who serves as Town Clerk and Tax Collector, was arrested for an incident stemming back to last July. Fayleallegedly diverted a check for $17,364.63 from the Black River Watershed Project to cover a shortage in the town’s Property Tax account. She was arrested earlier today and charged with Official Misconduct, a misdemeanor.

19. $777,000 • Secaucus, NJ (pop.16,264)- Tax collector admitted to taking “over $75,000. “I considered a loan that was to be paid back.” Law enforcement officials estimate the real number is over $777,000 over a 1½ year period.

20. $243,902 • Oxford, CT (pop.12,683) – Tax Collector pled guilty and faces up to 5 years in prison. Theft occurred over a two year period. Forged deposit slips and checks were used to cover the missing funds. “[Her] spending habits greedily exceeded her and her husband’s income.”

21. $1,231.44 • Newtown, PA (pop.2,248) Tax Collector and three others each were charged with theft by unlawful taking and theft of services. FedEx Allegations.

22. Here’s Your Sign • Carlisle Borough, PA tax collector George T. Hicks Jr., 21, has been arrested for allegedly selling marijuana twice to an undercover police officer, Cumberland County District Attorney David Freed said today. The DA said if Hicks is convicted of the drug sales he could be removed from the position permanently under the law. Freed said the evidence in the case against Hicks is strong."We’re talking about dealing with public money. The people who do it need to be beyond reproach," Freed said.

23. Jeffrey Neely - GAO "In one e-mail," … "Mr. Neely invited personal friends to the conference, writing, and I quote -- and this is simply incredible -- quote: 'We'll get you guys a room near us, and we'll pick up the room tab. Could be a blast.' End of quote. He then went on and wrote this -- 'I know I'm bad, but as [my wife] Deb and I often say, why not enjoy it while we have it and while we can. Ain'tgonna last forever.'

24. $53,000,000 • Dixon, Illinois (pop 15,733) – Lovely Rita Cheater Maid – found guilty of “misappropriating more than $53,000,000 since 1990 in Dixon, Illinois.(22 years – 2.5M year) April 2011 to April 2012 – stole $3.2M.(annual budget 22.6M)-80 employees.

25. How Do We Define Our Ethics Boundaries? • Laws, Statutes • Ordinances • Policies • Personal Moral Compass

26. Statute Categories • Conflicts • Information • Representation • Independence of Judgment • Unwarranted Privileges • Misuse/Abuse of Office • Gifts • Post Employment

27. Connecticut Statutes 18 CA 212 • To whom do they apply • What do they cover? • Sec 1-84

28. Conflicts - CT • Sec. 1-84: (a) No public official or state employee shall, while serving as such, have any financial interest in, or engage in, any business, employment, transaction or professional activity, which is in substantial conflict with the proper discharge of his duties or employment in the public interest and of his responsibilities as prescribed in the laws of this state, as defined in section 1-85.

29. Conflicts - NJ • N.J.S.A. 40A:9-22.5(a): No local government officer or employee or member of his immediate family shall have an interest in a business organization or engage in any business, transaction, or professional activity, which is in substantial conflict with the proper discharge of his duties in the public interest.

30. Independence of Judgment - CT • Sec. 1-84(b) No public official or state employee shall accept other employment which will either impair his independence of judgment as to his official duties or employment or require him, or induce him, to disclose confidential information acquired by him in the course of and by reason of his official duties.

31. Independence of Judgment - NJ • N.J.S.A. 40A: 9-22.5(e): No local government officer or employee shall act in his official capacity in any matter where he, a member of his immediate family, or a business organization in which he has an interest, has a direct or indirect financial or personal involvement that might reasonably be expected to impair his objectivity or independence of judgment.

32. Information - CT • Sec. 1-84 (No public official or state employee shall willfully and knowingly disclose, for financial gain, to any other person, confidential information acquired by him in the course of and by reason of his official duties or employment and no public official or state employee shall use his public office or position or any confidential information received through his holding such public office or position to obtain financial gain for himself, his spouse, child, child's spouse, parent, brother or sister or a business with which he is associated.

33. Information - NJ • N.J.S.A. 40A: 9-22.5(g) No local government officer or employee shall use, or allow to be used, his public office or employment, or any information, not generally available to the members of the public, which he receives or acquires in the course of and by reason of his office or employment, for the purpose of securing financial gain for himself, any member of his immediate family, or any business organization with which he is associated

34. Windsor • A Connecticut tax collector faces felony charges that could land him in jail for as long as six years for allegedly using his work computer to look up tax returns on about 15 taxpayers without a legitimate business need, authorities say.

35. Gifts - Ct • Sec. 1-84 (f): No person shall offer or give to a public official or state employee or candidate for public office or his spouse, his parent, brother, sister or child or spouse of such child or a business with which he is associated, anything of value, including, but not limited to, a gift, loan, political contribution, reward or promise of future employment based on any understanding that the vote, official action or judgment of the public official, state employee or candidate for public office would be or had been influenced thereby.

36. Gift – CT Part 2 • Sec. 1-84(g) No public official or state employee or candidate for public office shall solicit or accept anything of value, including but not limited to, a gift, loan, political contribution, reward or promise of future employment based on any understanding that the vote, official action or judgment of the public official or state employee or candidate for public office would be or had been influenced thereby

37. Gifts – CT simplified • Connecticut: May not accept gifts from restricted donors. Gift defined as anything of value that you directly and personally receive unless you provide consideration of equal or greater value. Exceptions: tokens (< $10; annual aggregate single source <$50); food and beverages (<$50 in a calendar year provided restricted donor is in attendance); training; 12 other exceptions.

38. Gifts - NJ • NJSA 40A:9-22.5(f): No local government officer or employee, member of his immediate family, or business organization in which he has an interest, shall solicit or accept any gift, favor, loan, political contributions, service, promise of future employment, or other thing of value based upon an understanding that the gift, favor, loan, contribution, service, promise or other thing of value was given or offered for the purpose of influencing him, directly or indirectly, in the discharge of his official duties. This provision shall not apply to the solicitation or acceptance of contributions to the campaign of an announced candidate for elective public office, if the local government officer has no knowledge or reason to believe that the campaign contribution, if accepted, was given with the intent to influence the local government officer in the discharge of his official duties. Emphasis added.

39. Representation - CT • (d) No public official or state employee or employee of such public official or state employee shall agree to accept, or be a member or employee of a partnership, association, professional corporation or sole proprietorship which partnership, association, professional corporation or sole proprietorship agrees to accept any employment, fee or other thing of value, or portion thereof, for appearing, agreeing to appear, or taking any other action on behalf of another person before the Department of Banking, the Claims Commissioner, the Office of Health Care Access division within the Department of Public Health, the Insurance Department, the Department of Consumer Protection, the Department of Motor Vehicles, the State Insurance and Risk Management Board, the Department of

40. Energy and Environmental Protection, the Public Utilities Regulatory Authority, the Connecticut Siting Council, the Gaming Policy Board within the Department of Consumer Protection or the Connecticut Real Estate Commission; provided this shall not prohibit any such person from making inquiry for information on behalf of another before any of said commissions or commissioners if no fee or reward is given or promised in consequence thereof. For the purpose of this subsection, partnerships, associations, professional corporations or sole proprietorships refer only to such partnerships, associations, professional corporations or sole proprietorships which have been formed to carry on the business or profession directly relating to the employment, appearing, agreeing to appear or taking of action provided for in this subsection. Nothing in this subsection shall prohibit any employment, appearing, agreeing to appear or taking action before any municipal board, commission or council.

41. Nothing in this subsection shall be construed as applying (1) to the actions of any teaching or research professional employee of a public institution of higher education if such actions are not in violation of any other provision of this chapter, (2) to the actions of any other professional employee of a public institution of higher education if such actions are not compensated and are not in violation of any other provision of this chapter, (3) to any member of a board or commission who receives no compensation other than per diem payments or reimbursement for actual or necessary expenses, or both, incurred in the performance of the member's duties, or (4) to any member or director of a quasi-public agency

42. Notwithstanding the provisions of this subsection to the contrary, a legislator, an officer of the General Assembly or part-time legislative employee may be or become a member or employee of a firm, partnership, association or professional corporation which represents clients for compensation before agencies listed in this subsection, provided the legislator, officer of the General Assembly or part-time legislative employee shall take no part in any matter involving the agency listed in this subsection and shall not receive compensation from any such matter. Receipt of a previously established salary, not based on the current or anticipated business of the firm, partnership, association or professional corporation involving the agencies listed in this subsection, shall be permitted.

43. Representation - NJ • N.J.S.A. 40A:9-22.5 (h) No local government officer or employee or business organization in which he has an interest shall represent any person or party other than the local government in connection with any cause, proceeding, application or other matter pending before any agency in the local government in which he serves. • This provision shall not be deemed to prohibit one local government employee from representing another local government employee where the local government agency is the employer and the representation is within the context of official labor union or similar representational responsibilities.

44. “Other Ethics” • 2011West Palm Beach , FL - Undercover Investigation Nets Nineteen Arrests In Operation "Brakes On Fakes" • As of 9:00 a.m. this morning, authorities had arrested and booked nineteen (19) individuals for charges including False or Fraudulent Motor Vehicle Insurance Card, Sale of Motor Vehicle with Altered Odometer, Title Fraud, Petit Theft and Fraudulent Use of Personal Identification Information ($5,000.00 or more). • The Task Force was formed to combat a growing number of fake auto insurance cards detected by Tax Collector employees in the Delray Beach Service Center. Tax Collector contacted State Attorney to develop a coordinated response.

45. “Other” Ethics • Nepotism • Use of Property • Private Lives • Internet • Social Media (Twitter, Pinterest, UTube, Linked)

46. Here’s Your Sign

47. Creating the Ethical Environment • Background checks • Personnel Policies • Internal Controls • Office Policies

48. Internal Controls - Assessment • Know your risks – ex. cash loss? • Signatures of checks • Reconciliation • Know/List Existing Controls • Periodic review of technology

49. Internal Controls • Segregation of Duties • Reconciliations • Run reports • Spot checks and “surprise” cash balances • Hard and soft security • Training

50. ACED • Arrogance • Entitlement • Complacency • Desparation