Settlement  In the Matter of Frederick Hanna

Date:	02/13/1980
Organization:	State Ethics Commission
Docket Number:	119

Disposition Agreement

This Agreement is entered into between the State Ethics  Commission ("Commission") and Frederick Hanna ("Mr. Hanna"),  pursuant to Section 11 of the Commission's Procedures Covering the  Initiation and Conduct of Preliminary Inquiries and Investigations.

On September 7, 1979, 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, General Laws  Chapter 268A, involving Mr. Hanna, a State Inspector for the  Massachusetts Department of Public Health, Division of Food and  Drug. In particular, the Inquiry focused on Mr. Hanna's ownership  of two private enterprises which did business with businesses  regulated by the Division of Food and Drug.

The Commission has concluded its investigation into Mr.  Hanna's involvement in the matters set forth herein and has made  the following findings to which the parties hereto agree:

1. Frederick Hanna has been an employee of the Department of  Public Health, Division of Food and Drug since 1964, and currently  holds the position of Senior Food and Drug Inspector, assigned to  the Seafood Inspection Section. Mr. Hanna has held this position  since 1975, and is responsible for conducting and/or supervising  all inspections of seafood, and wholesale and retail businesses  dealing in seafood products, in the Greater Boston area.

2. Frederick Hanna and his spouse are the principal owners of  General Foods and Baking Company, which was located in Quincy,  Mass. from September 1976 through August 1978. During this period,  the General Foods and Baking Company produced and marketed baked  stuffed clams as its primary product. During this period, General  Foods and Baking Company purchased raw seafood products from 4  seafood wholesalers in the Greater Boston area and after  processing, sold its baked stuffed clam product to 8 seafood  wholesalers and retailers in the Greater Boston area.

3. Between September 1976 and August 1978, Frederick Hanna,  in his official capacity as a Senior Seafood Inspector for the  Division of Food and Drug, personally conducted and/or supervised  over 60 separate inspections of the 12 seafood wholesalers and  retailers in the Greater Boston area, with which his company did business.

4. Mr. Hanna's participation as a state employee in the  inspection of businesses from which General Foods and Baking  Company purchased or to which it sold seafood products constituted  civil violations of Section 6 of General Laws, Chapter 268A.   

5. Mr. Hanna's conduct, in engaging in a private enterprise  which produced and marketed products which he was responsible for  inspecting, and which sold those products to businesses which he  was responsible for inspecting and regulating, constituted a civil  violation of Section 23(e) of General Laws Chapter 268A, in that  it created a reasonable basis for the impression that businesses  with which he did business in his private capacity could unduly  enjoy his favor in the performance of his official duties.

6. In addition to their financial interest in General Foods  and Baking, Frederick Hanna and his spouse are principal owners and  operators of Hanna Construction Company of Dedham, MA. Since 1958,  the Hanna Construction Company has been primarily engaged in the  business of snow removal.

7. During the period from December 1974, through March 1979,  the Hanna Construction Company contracted to plow parking lots of  4 large retail supermarket chain stores in the Greater Boston area.  During the same period in which Mr. Hanna's construction company  was providing snow removal services for these supermarkets, Mr.  Hanna in his capacity as a Senior Seafood Inspector for the  Division of Food and Drug, personally conducted and/or supervised  over 20 separate inspections of the businesses with which his  company did business.

8. Mr. Hanna's participation as a state employee in the  inspections of businesses with which Hanna Construction Company had  snow removal contracts constituted civil violations of Section 6  of General Laws Chapter 268A.

9. Mr. Hanna's conduct, in engaging in a private enterprise  which contracted to provide   

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snow removal services for those businesses he is responsible for  inspecting and regulating, constituted a civil violation of  Section 23(e) of General Laws, Chapter 268A, in that it created a  reasonable basis for the impression that businesses with which he  did business in his private capacity could unduly enjoy his favor  in the performance of his official duties.

10. During March of 1975, a Health Inspector for the City of  Boston conducted a sanitary inspection of the Near East Baking  Company of West Roxbury. The City Inspector reported that the  bakery was in poor sanitary condition and recommended that the  bakery be closed until all identified code violations were  corrected.

11. On March 27, 1975, Mr. Hanna contacted the above mentioned  Boston Health Inspector, advised him that he was a State Food and  Drug Inspector, and further advised him that he had a financial  interest in Near East Baking Company and demanded that the City  Inspector change his inspection report to reflect more favorably the sanitary condition of the bakery. The City Inspector refused  Mr. Hanna's request and no changes were made in the inspection  report.

12. Mr. Hanna's conduct as set forth in paragraph 11 above,  constituted a civil violation of Section 23(d) of General Laws,  Chapter 268A, in that he attempted to use his official position as  a State Food and Drug Inspector to secure an unwarranted privilege  for himself and the Near East Baking Company.

The State Ethics 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  conditions hereby agreed to by Frederick Hanna:

1. That he voluntarily terminate his employment with the  Department of Public Health, Division of Food and Drug within 90  days of the execution of this Agreement;

2.That he pay to the State Ethics Commission the amount of  $6,500 as civil penalty for his conduct as outlined above pursuant  to the terms and conditions agreed by the parties; and

3. That he waive all rights to contest the findings of fact,  conclusions of law and terms and conditions imposed under this  Agreement, in this or any related civil proceeding in which the  State Ethics Commission is a party.