Docket No.: 252


Date: March 2, 1984


This disposition agreement ("Agreement") is entered into between
the State Ethics Commission ("Commission") and Eugene P. Riley
("Mr. Riley") pursuant to section 11 of the Commission's
Enforcement Procedures. The agreement constitutes a consented to
final order of the Commission enforceable in superior court under
G.L. c. 268B, s.4(d).

On September 13,1983, the Commission initiated a preliminary
inquiry into a possible violation of G.L. c. 268A, s.23(paragraph
2)(2), by Mr. Riley, formerly Massachusetts Foreign Business
Council executive director. The Commission concluded that
preliminary inquiry and, on January 10, 1984, found reasonable
cause to believe that Mr. Riley had violated chapter 268A.

The parties now agree to the following findings of fact and
conclusions of law:

1. Mr. Riley was executive director of the Massachusetts
Foreign Business Council ("MFBC") from September 1,1981 to March
23,1983, and, as such, was a state employee, as that term is
defined in G.L. c. 268A, s.1(q).

2. Over the course of his first year as MFBC executive director,
Mr. Riley submitted 66 gasoline charge slips to the MFBC and
received $1,400 in reimbursement. He submitted no mileage or
destination statements with the MFBC to support his claim for
reimbursement and has no records which might verify

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the extent of his travel for the MFBC. Of the 66 charge slips, 57
were for fill-ups from service stations near Mr. Riley's home. Also
included in these charges were approximately $150 in repairs.

3. In September 1982, Mr. Riley submitted for reimbursement a
$2,500 charge to cover depreciation, repairs and insurance costs
for his car for the previous 12 months. In fact, Mr. Riley had
already received reimbursement for $150 in repairs in his
submission of gas slips, as noted in paragraph 2, which this $2,500
flat charge, in theory, covered. He had the MFBC issue him a check
for this charge.

4. These charges (referenced in paragraphs 2 and 3) by Mr. Riley
to the MFBC for the use of his car exceeded state mileage
reimbursement policy, which provided for reimbursement at the rate
of 20 cents per mile for the use of a personal car on state

5. Also in September 1982, Mr. Riley submitted a bill for $654
to the MFBC for reimbursement. This charge was a one-year air
travel insurance policy for $900,000 coverage. Mr. Riley had the
MFBC issue a check to pay for this policy.

6. Air travel insurance was not a type of insurance the MFBC
ordinarily covered for its staff. This $654 charge was an expense
Mr. Riley should have paid for himself.

7. Section 23 (paragraph 2)(2) of chapter 268A prohibits a
public official from using his official position to obtain
unwarranted privileges or exemptions for himself or others.

8. Mr. Riley sought and received from the MFBC more
reimbursement of car use charges than he was entitled to receive.
He also failed to keep records required by the state relating to
his car use charges. He sought and received from the MFBC
reimbursement for an insurance policy expense that he was not
entitled to receive. By so doing, Mr. Riley violated s.23(paragraph

9. In determining the penalty to be imposed in this case, the
Commission has taken into consideration the fact that on September
27, 1983, Mr. Riley, on his own initiative, reimbursed the MFBC for
his gas charges, the $150 in repairs included in the gas slips he
had submitted for reimbursement and the cost of this air travel
insurance policy, totaling approximately $2,100.

Based on the foregoing, the Commission has determined that the
public interest would be served by the disposition of this matter
without further Commission enforcement proceedings on the basis of
the following terms, to which Mr. Riley has agreed:

(a) that he pay to the Commission the sum of $500 forthwith
as a civil penalty for violating G.L. c. 268A, s.23(paragraph
2)(2), by seeking and receiving reimbursement from the MFBC
for car expenses he was not entitled to receive, failing to
keep required records, and receiving reimbursement from the
MFBC for an insurance policy he was not entitled to have
covered; and

(b) that he waive all rights to contest the findings of fact,
conclusions of law and terms contained in this agreement in
this or any other related administrative or judicial
proceeding in which the Commission is a party.

End Of Decision