Case No.: 134


Doc. Type: Agreements


Parties: IN THE MATTER OF BADI G. FOSTER


Date: October 7, 1980

DISPOSITION AGREEMENT


This Agreement is entered into between the State Ethics
Commission ("Commission") and Badi G. Foster ("Mr. Foster")
pursuant to Section 11 of the Commission's Procedures Covering the
Initiation and Conduct of Preliminary Inquiries and Investigations.
The parties agree that upon its execution this Agreement shall
constitute a final order of the Commission enforceable in the
Superior Court of the Commonwealth.

On February 25, 1980, the Commission, pursuant to Section 4(a)
of General Laws, Chapter 268A, initiated a Preliminary Inquiry into
possible violations of the Conflict-of-Interest Law, Chapter 268A,
involving Mr. Foster, a former Professor at the University of
Massachusetts at Boston.

The Commission has concluded its investigation into Mr.
Foster's involvement in the matters set forth herein and makes the
following findings of fact, to which the parties hereto agree:

1. Mr. Foster was a full-time member of the faculty at the
University of Massachusetts at Boston from November of 1972 until
August 31, 1976. He was on a leave of absence from the University
for the period September 1, 1976 to August 31, 1977, at which time
he reassumed his faculty position on a 2/3's time basis.

2. Cedar Associates Incorporated, was formed in May 1975, as
a "for-profit" corporation. Mr. Foster was the President and sole
stockholder of the company. Its principal purpose was to provide
professional consultant services in the field of minority
education, minority employment and other related areas.

3. On March 6, 1975, Mr. Foster was selected by the State
Department of Education ("DOE") to be a member of an Ad Hoc
Committee to review proposed programs for disadvantaged

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students. He served as a member from July 1, 1975 to June 30, 1976.

The responsibility and purpose of the members was to review grant
proposals to determine their relevance to particular federal
funding areas and the target population. Such grant proposals were
approved or disapproved by DOE. However, grant proposals had to be
reviewed by at least three Ad Hoc Committee members, who
recommended approval, disapproval, or referral to another funding
area. Members of the Ad Hoc Committee. who reviewed a proposal did
not review the budget for the proposal, as they had no
responsibility for review with respect to costs. Mr. Foster
reviewed at least 12 program proposals and he recommended approval
of each proposal that he reviewed. The review of a proposal by a
member typically took about one half hour. As a member of this
committee, Mr. Foster was a "special state employee" within the
meaning of Section 1(o) of Chapter 268A.

4. In the month of July, 1975, while serving on the Ad Hoc
Committee, Mr. Foster was one of three members who reviewed Project
Number D15976, entitled "Vocational Counseling and Career
Development Program" which was proposed by the Boston YWCA Cass
Branch ("Boston YWCA"). After reviewing the proposal, Mr. Foster,
as well as the other two readers, recommended to DOE that the
project be approved. The Boston YWCA was subsequently awarded
$76,000 by DOE, and began work on this grant in early 1976.

5. In or about August 1976, Melvin McCoy, Vice President of
Cedar Associates, met an official of the Boston YWCA at a National
Urban League Convention being held in Boston. They discussed
programs of the Boston YWCA for disadvantaged youth, and the need
for evaluation of the effectiveness of those programs.

On August 31,1976, Badi Foster and Melvin McCoy met with the
Director of the Boston YWCA and proposed that Cedar Associates
review and evaluate the programs developed under the above DOE
grant.

6. On October 30, 1976, the Director of the YWCA requested
permission from the DOE to transfer funds from various budget line
items of the grant for the purpose of acquiring the assistance of
Cedar Associates.

7. On December 7, 1976, Cedar Associates to perform a
"formative and summative evaluation of the Vocational Counseling
and Career Development Program." Cedar Associates received DOE
grant funds totaling $9,213 for this evaluation, and submitted its
final report on May 12,1977.

8. At the time that the contract between Cedar Associates and
the Boston YWCA was executed, and during the period in which the
evaluation was performed, Mr. Foster was no longer a member of the
Ad Hoc Committee or the University of Massachusetts faculty and
was, therefore, a "former state employee" within the meaning of
Chapter 268A.

9. There is no evidence that Mr. Foster used his prior state
positions to improperly secure this contract, or that at the time
he recommended that DOE award the $76,000 grant to the Boston YWCA
he intended to seek this contract, or that at the time that Cedar
Associates entered this contract with the Boston YWCA he knew that
said contract would violate the Conflict-of-Interest Law.

Based on the facts as set out in paragraphs 1-9 above, the

Commission has concluded, and the parties agree, that by Cedar
Associates entering a contract to perform services under a grant
which Mr. Foster reviewed, Mr. Foster violated Section 5(a) of
Chapter 268A, which prohibits a former state employee from
receiving compensation in relation to any matter in which the
Commonwealth has a direct and substantial interest and in which he
participated while a state employee.

THEREFORE, The Commission has determined that the public
interest would be served by the disposition of this matter without
further enforcement proceedings on the basis of the following
representations, terms and conditions hereby made and agreed to by
Badi G. Foster:

1. That he is represented by Thomas G. Shapiro, Esq., 33 Broad
St., Boston, and has been fully advised as to all matters relating
to these proceedings and this Agreement;

2. That he cease and desist from entering into contracts on
behalf of Cedar Associates in relation to any grant, contract or
other particular matter in which he participated while a state
employee;

3. That he pay to the State Ethics Commission the sum of
$1,800.00 as a recoupment of the economic benefit directly or
indirectly received by him under the contract between Cedar
Associates and the Boston YWCA; which payment is to be made in
accord with a schedule of payments set out in Appendix A of this
Agreement and incorporated herein by reference;

4. That he pay to the State Ethics Commission the sum of
$250.00 forthwith as civil penalty for violating Section 5(a) of
Chapter 268A; and

5. That he waive all rights to contest the findings of fact,
conclusions of law, and the terms and conditions contained in this
Agreement, in this or in any related proceeding.

End Of Decision