IN THE MATTER OF JOHN MORELLO
COIB Case No. 97-247
October 9, 1998
SUMMARY: In a case against a former Battalion Chief for Technical Services with the New York City Fire Department, COIB v. John Morello, COIB Case No. 97-247 (1998), the Board imposed a $6,000 fine for the acceptance of valuable gifts of meals, theater tickets, and the free use of a ski condo from companies that had business dealings with the Fire Department and whose work the Chief had directly supervised.
STIPULATION AND DISPOSITION
Respondent John Morello states the following:
1. I was employed by the New York City Fire Department ("NYFD") from 1962 to 1995 and as Battalion Chief for Technical Services from 1986 to 1994. I retired from the NYFD on December 21, 1995.
2. During my tenure as Battalion Chief, all NYFD trucks were supplied by a vendor (the "Vendor"). The contracts awarded to the Vendor were valued at more than $20 million. As Battalion Chief, I was responsible for preparing specifications for fire trucks and evaluating compliance with these specifications on an ongoing basis during construction of the trucks. As part of my duties, I also worked with the Vendor's New York agent and various subcontractors.
3. I was personally aware that the Vendor, its agent and subcontractor had substantial business dealings with the NYFD during the time period when I was Battalion Chief.
4. In December 1992, without the prior approval of the NYFD or the Conflicts of Interest Board (the "Board"), I accepted valuable gifts, consisting of theater tickets to the Broadway shows, "Les Miserables" and "Conversations with My Father," for my wife and myself and meals at restaurants in New York City for my wife and myself, from the Vendor's agent and subcontractor. The theater tickets and meals each had a value in excess of $50.
5. In January of 1993, without the prior approval of the NYFD or the Board, I accepted a valuable gift consisting of the free use, for one week, of a ski condominium in Snowmass, Colorado, that had been leased by a principal of the Vendor. My portion of the rental value of the condominium for one week was in excess of $50.
6. I admit that my conduct constituted a conflict of interest in violation of Section 2604(b)(5) of the City Charter in that I accepted valuable gifts from persons or firms which I knew had business dealings with the NYFD.
7. Section 2604(b)(5) provides in part:
"No public servant shall accept any valuable gift, as defined by rule of the board, from any person or firm which such public servant knows is or intends to become engaged in business dealings with the city, except that nothing contained herein shall prohibit a public servant from accepting a gift which is customary on family and social occasions."
8. A valuable gift is defined in the Board's "Valuable Gifts" Rule, Board Rule § 1-01(a), as:
"any gift to a public servant which has a value of $50.00 or more, whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise, or in any other form. Two or more gifts to a public servant shall be deemed to be a single gift for purposes of this subdivision and Charter § 2604(b)(5) if they are given to the public servant within a twelve- month period under one or more of the following circumstances: (1) they are given by the same person; and/or (2) they are given by persons who the public servant knows or should know are (i) relatives or domestic partners of one another; or (ii) are directors, trustees, or employees of the same firm or affiliated firms."
9. The Board's Rule § 1-01(c) also covers situations in which a city employee receives gifts from personal friends who have business dealings with the City:
"For the purposes of Charter § 2604(b)(5), a public servant may accept gifts that are customary on family or social occasions from a family member or close personal friend who the public servant knows is or intends to become engaged in business dealings with the City, when:
“(1) it can be shown under all relevant circumstances that it is the family or personal relationship rather than the business dealings that is the controlling factor; and
(2) the public servant's receipt of the gift would not result in or create the appearance of:
(i) using his or her office for private gain;
(ii) giving preferential treatment to any person or entity;
(iii) losing independence or impartiality; or
(iv) accepting gifts or favors for performing official duties.”
10. In acknowledgment of my violation of Charter Section 2604(b)(5), I agree to pay a fine of $6,000 to the New York City Conflicts of Interest Board, to be paid upon my execution of this Disposition.
11. The amount of the fine reflects the following mitigating factors in this case:
(i) The NYFD brought a disciplinary proceeding against me in 1995 which arose, in part, out of the same facts recited above. As a result of those departmental charges, I resigned from the NYFD.
(ii) As an additional result of the NYFD charges, I agreed to forego all my accrued leave balances, which had a monetary value of $93,105.00; and
(iii) I am disabled because of cancer and medical problems with both knees.
12. I accepted these gifts from persons with whom I had developed both City business relationships and personal relationships. However, I now recognize that although I developed personal friendships with them, under Board Rule § 1- 01(a), I should not have accepted any valuable gifts from them because such gifts are not permitted under the Charter or Board Rules quoted above. I also recognize that it was not my personal relationships, but, rather, the City business dealings that were the controlling factor in my dealings with the Vendor and its subcontractors, and my receipt of the gifts could have resulted in the appearance of (i) using my office for private gain; (ii) giving preferential treatment to any person or entity; (iii) losing independence or impartiality; or (iv) accepting gifts or favors for performing official duties.
13. I agree that this statement is a public and final resolution of the charges against me. Furthermore, I agree to provide a copy of this Disposition to any City agency where I might apply for employment upon the request of such agency or in response to any inquiry calling for such information, and, in any event, prior to accepting employment with the City.
John Morello
Dated: September 25, 1998
The New York City Conflicts of Interest Board accepts this Disposition and the terms contained therein as a final disposition of the charges against John Morello in the above-captioned case only, and hereby dismisses the charges with prejudice.
The Conflicts of Interest Board
Benito Romano
Acting Chair
Dated: October 9, 1998