IN THE MATTER OF WALTER STEINHANDLER
COIB No. 2000-231
SED File No. 4,104
April 5, 2001
SUMMARY: The Board fined a teacher $1,500 for owning and operating a tour company that arranged tours for Board of Education schools, including the school where he taught. The tours had been operated with the approval of the school’s principal, and the teacher sold his interest in the tour company in March of 1999.
STIPULATION AND DISPOSITION
WHEREAS, a disciplinary proceeding against Walter Steinhandler ("Mr. Steinhandler" or "Respondent"), a tenured teacher employed by the Board of Education of the City School District of the City of New York (the "Board of Education"), and a "Public Servant" under New York City Charter § 2601(19), was commenced pursuant to Education Law § 3020-a by the Board of Education's vote of probable cause on charges preferred against respondent on October 4, 2000; and
WHEREAS, this matter was referred under New York City Charter §§ 2603(e)(2)(d) and (h)(2) by the New York City Conflicts of Interest Board ("City Conflicts Board") to the Board of Education on September 20, 2000; and
WHEREAS, the parties desire to eliminate the need for a formal hearing, have held discussions in which they were represented by counsel, have had all the terms and conditions of this settlement fully explained, and now freely consent to enter this stipulation, such consent not having been induced by fraud, duress, or any other undue influence; and
WHEREAS, the parties have reached an agreement as to the complete and final resolution of these matters;
NOW, IT IS HEREBY STIPULATED AND AGREED, by and among the respective parties hereto that this matter shall be fully resolved as follows:
1. The Board of Education hereby withdraws the § 3020-a charges with prejudice.
2. Should respondent ever be brought up on § 3020-a charges by the Board of Education in the future alleging that respondent has committed a prohibited "conflict of interest" in violation of Chapter 68 of the Charter, this stipulation among Mr. Steinhandler, the Board of Education, and the City Conflicts Board shall be admissible for purposes of notice within the meaning of Education Law § 3020-a and the decisional law interpreting it.
3. Mr. Steinhandler shall be returned to his position at Edward R. Murrow High School. It is acknowledged by Mr. Steinhandler that this stipulation, including those terms with the Board of Education, is subject to full public disclosure by the City Conflicts Board. A copy of the stipulation may be maintained by the Board of Education's Office of Legal Services, the Secretary of the Board of Education, and the Brooklyn High School Superintendent's Office. Mr. Steinhandler and the Board of Education knowingly waive their rights to make any legal or equitable claims or to initiate legal proceedings of any kind against each other, or any employee thereof, relating to or arising out of this matter except to enforce the terms of this stipulation of settlement.
4. In full satisfaction of the above captioned matter with the City Conflicts Board, Mr. Steinhandler shall pay a fine of $1,500.00 upon signature of this stipulation.
5. In full satisfaction of the above-captioned matter with the City Conflicts Board, Mr. Steinhandler admits that he was engaged in a prohibited "conflict of interest" as defined by Charter § 2604(a)(1) by his ownership in and operation of a tour company doing business as Scholastic Tours that engaged in business dealings with the Board of Education from the effective date of the 1989 revisions to Chapter 68 on January 1, 1990, through the sale and divestment of Mr. Steinhandler's interest in the company on March 31, 1999. Section 2604(a)(1)(a) provides in pertinent part:
"[N]o public servant shall have an interest in a firm which such public servant knows is engaged in business dealings with the agency served by such public servant ... Charter § 2604(a)(1)(a).”
6. In full satisfaction of the above-captioned matter, and in mitigation but not exoneration of Mr. Steinhandler's admission of conflict of interest, Mr. Steinhandler alleges the following:
a) That through Scholastic Tours Mr. Steinhandler organized and operated student tours at the school where he taught, Edward R. Murrow High School, from the mid 1970's through his sale of the business on March 31, 1999;
b) That said tours were operated with the full knowledge and approval of Mr. Steinhandler's school principal, who authorized and approved the trips. The Brooklyn High School Superintendent's Office signed off on trip approvals;
c) That Mr. Steinhandler's principal states that he had requested and obtained an opinion from the Board of Education's Conflict of Interest Office in the late 1970's or early 1980's to the effect that student trips conducted by Scholastic Tours would not be a conflict of interest so long as the teacher operators of the business were not involved in selection of the bid;
d) That the principal states that he was not aware of the Charter's 1990 Conflicts of Interest provisions until he was prompted to write the Board of Education's Ethics Officer after receiving information about the Charter at a principals' meeting in September, 1999; and further, that after receiving an opinion from the Ethics Officer dated October 6, 1999, advising that Mr. Steinhandler's business was in violation of the Charter, the principal so advised Mr. Steinhandler. This was the first time Mr. Steinhandler became aware of the 1990 Conflicts of Interest provisions of Chapter 68 of the Charter, and at such time he had already divested himself of his business by sale on March 31, 1999;
e) That Mr. Steinhandler had earlier requested and obtained waivers from the Board of Education's Conflict of Interest Office in 1988 and 1993 to operate Scholastic Tours as permissible outside employment while he was on sabbatical leave. The waivers did not reach any issues of business dealings with the Board of Education but only dealt with rules concerning sabbatical leave. Copies of said waivers were provided the school principal and the Brooklyn High School Superintendent;
f) That the principal states that the student trips run by Mr. Steinhandler were of the highest standards and that the school felt secure that a teacher who knew the student population was in care of the children on the trips;
g) That by this stipulation Mr. Steinhandler fully admits that he had a conflict of interest under § 2604.
h) That by this stipulation Mr. Steinhandler agrees that he shall not engage in any prohibited interests or conduct as defined by Chapter 68 of the City Charter in the future.
7. Mr. Steinhandler agrees that this statement is a public and final resolution of the above-described matter with the Conflicts Board. Furthermore, Mr. Steinhandler agrees to provide a copy of this Stipulation to any City agency where he may apply for employment upon the request of such agency or in response to any City inquiry calling for such information, and in any event, prior to accepting employment with the City.
8. Mr. Steinhandler waives, on his own behalf and on behalf of his successors, any rights to commence any judicial or administrative proceeding or appeal before any court of competent jurisdiction, administrative tribunal, political subdivision, or office of the City or the State of New York or the United States to contest the lawfulness, authority, jurisdiction, or power of the City Conflicts Board in imposing the penalty that is embodied in this agreement.
9. Mr. Steinhandler knowingly waives any rights to make any legal or equitable claims or to initiate any legal proceedings of any kind against the City Conflicts Board, or any employee thereof, relating to or arising out of this matter except to enforce the terms of this Stipulation.
10. Any material misstatement of the facts of this matter, including of the Disposition, by Mr. Steinhandler or by his attorney or agent, shall, at the discretion of the City Conflicts Board, be deemed a waiver of confidentiality of this matter.
11. Mr. Steinhandler and the Board of Education consent to making the City Conflicts Board a party to this stipulation.
12. This agreement contains all the terms and conditions agreed upon by Mr. Steinhandler and the Board of Education and no other agreement, oral or otherwise, regarding the allegations or the § 3020-a charges brought by the Board of Education shall be deemed to exist or to bind either Mr. Steinhandler or the Board of Education, or to vary any of the terms contained herein.
13. Mr. Steinhandler enters into this agreement freely, knowingly, and openly, without coercion or duress, and freely waives his rights to any further hearing or proceeding under Education Law § 3020-a regarding the charges preferred by the Board of Education, and any other applicable laws, statutes, rules, regulations or contract provisions which pertain to disciplinary actions pertaining to Board of Education employees.
14. Mr. Steinhandler affirms that he has read all of the terms and conditions set forth in this Stipulation and fully understands all of its terms and conditions, has had access to counsel and has consulted his counsel concerning the terms of this Stipulation.
15. The City Conflicts Interest Board and the Board of Education accept this Stipulation and the terms contained herein as a final disposition of the § 3020-a proceeding and the above-captioned matter with the City Conflicts Board, and, accordingly, hereby close this case, and affirmatively state that no further action will be taken by the City Conflicts Board or the Board of Education against Mr. Steinhandler based on the facts and circumstances set forth herein.
16. Nothing contained herein shall be deemed a precedent, practice or policy of the Board of Education or the Brooklyn High School Superintendent's Office.
Walter Steinhandler
Dated: April 5, 2001
James R. Sander
Attorney for Walter Steinhandler
Dated: April 5, 2001
J. Christopher Meagher
Of Counsel
Dated: June 7, 2001
Ron LeDoni
Secretary to Board
Dated: June 7, 2001
Chad Vignola
Board of Education
David Long, Of Counsel
Dated: June 7, 2001
Benito Romano
Acting Chair
Dated: May 21, 2001