Settlement  In the Matter of Eugene P. Riley

Date:	03/02/1984
Organization:	State Ethics Commission
Docket Number:	252

Disposition Agreement

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 business. 

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 2)(2). 

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.