Settlement  In the Matter of Michael Martin

Date:	09/07/1982
Organization:	State Ethics Commission
Docket Number:	170

Disposition Agreement

This disposition agreement (agreement) is entered into between the State Ethics Commission (Commission) and Michael Martin (Mr. Martin) pursuant to Section 11 of the Commission's Procedures Covering the Initiation and Conduct of Preliminary Inquiries and Investigations. The parties agree that this agreement constitutes a consented to final Commission order enforceable in the Superior Court pursuant to G.L. c. 268B, s.4(d). 

On February 2, 1982, the Commission initiated a preliminary inquiry, pursuant to G.L. c. 268B, s.4(a), into possible violations of the Conflict-of-Interest Law, G.L. c. 268A, involving Mr. Martin, formerly a selectman of the Town of Swampscott (town). The Commission has concluded that preliminary inquiry and, on September 7, 1982, found reasonable cause to believe that Mr. Martin has violated G.L. c. 268A, s.17(c). The parties now agree to the following findings of fact and conclusions of law: 

1. Mr. Martin served as a selectman in the town from April of 1975 to April 26,1981. He therefore was a "municipal employee" as defined in G.L. c. 268A, s.1(g). 

2. At all times material hereto, Mr. Martin was also an attorney. 

3. On July 25, 1980 the town obtained a final decree in a tax lien case regarding property owned by Anthony V. Grieco at 17 King Street, Swampscott (property). 

4. On April 1, 1981, Mr. Grieco submitted a letter to the town Board of Selectmen (board) requesting that he be allowed to redeem his property by settling his tax debt with the town. That request was taken up by the board at its meeting on April 16,1981. 

5. In the weeks before the April 16th meeting of the board, Mr. Martin took the following actions in relation to the property: 

(a) Mr. Martin met with Mr. Grieco and Deems Hatch at Grieco's house on two or three separate occasions to discuss Mr. Grieco's tax troubles and the possible purchase of the property by Mr. Hatch; 

(b) in late February or early March, Mr. Martin telephoned the town tax title attorney, James Coppola, to ascertain the status of the property and to inquire about the laws relating to town tax takings and foreclosures, and during this conversation Coppola informed Martin that the town could rescind the foreclosure; 

(c) on March 12, 1981, Mr. Martin, stating that he was calling on behalf of Mr. Hatch, contacted a real estate appraiser and asked him to contact Mr. Hatch to arrange for an appraisal of the property; and 

(d) on or about April 16, 1981, Mr. Martin called another attorney and asked him to prepare a purchase and sale agreement. 

6. At the April 16th meeting of the board, Mr. Martin, in his capacity as a member of the board, noted that Mr. Grieco had had financial difficulties not of his own making and stated that he felt it was in the town's best interest to assist the man. Mr. Martin then moved that the board allow Mr. Grieco three weeks to pay his back taxes. That motion carried. There was no evidence of any misrepresentation made by any party before this vote. 

7. Subsequent to the April 16 meeting of the board: 

(a) Mr. Martin instructed the attorney as to the terms of the agreement; and  

(b) Mr. Martin suggested to Mr. Grieco and to Mr. Hatch the use of a mortgage instrument to protect Mr. Hatch's  

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interest in the over $9,000 which he would have to advance to Mr. Grieco in order for Mr. Grieco to clear the tax debt. 

8. Mr. Martin was present when Mr. Hatch and Mr. Grieco signed a purchase and sale agreement at Mr. Grieco's house on April 18,1981. 

9. On April 21, 1981, Mr. Grieco delivered a check to the town in the amount of $9,379.31 to clear the tax debt on the property. 

10. Sometime in June or July of 1981, Mr. Martin telephoned a title examiner and asked him to do a title examination for the property. 

11. Mr. Grieco and Mr. Hatch passed papers with respect to the property on August 14,1981. Mr. Martin was present at that closing. He inspected the cheeks Mr. Hatch gave to Mr. Grieco and notarized Mr. Grieco's signature on the deed. 

12. On August 17, 1981, Mr. Martin recorded the deed to the property. 

13. General Laws Chapter 268A, s.17(e) prohibits a municipal employee, otherwise than in the proper discharge of his official duties, from acting as agent for a private party in connection with any particular matter in which his town has a direct and substantial interest. By his actions set out in paragraphs above, Mr. Martin violated s.17(c) because: 

a. the sale of the property was a "particular matter" (as that term is defined in G.L. c. 268A, s.1(k)) in which the town had a direct and substantial interest by virtue of the tax debt owed; 

b. he was acting on behalf of at least Mr. Hatch, if not on behalf of both Mr. Hatch and Mr. Grieco; and 

c. because of this degree of participation in advising both Mr. Hatch and Mr. Grieco in this matter, Mr. Martin's conduct cannot be characterized as in the proper discharge of his official duties. 

WHEREFORE, 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 agreed to by Mr. Martin: 

1. that he pay the Commission the sum of $1,000 forthwith as a civil penalty for his violation of G.L. c. 268A, s.17; and 

2. that he waive all rights to contest the findings of fact, conclusions of law and terms and conditions contained in this agreement or in this or any related administrative or judicial proceedings to which the Commission is a party.