08/08/2013 10118 FAX JAMES J. HAGGERTY 15702889493 KINGSTON BORD 002 (570) 288-4576, EXT. 401 Mayor FAX: (570) 2ae--9493 I. . . 155" . .. -1. OF KINGSTON 500 wvommo AVENUE. ao. BOX 1229, LUZERNE 18704-3681 June 6, 2013 Dear Kingston Residents: As you may be aware, our outside counsel, tl1_e law firm of Ballard Spahr L.L.P., was engaged by Kingston to investigate whether members of our Police Department violated the Municipality's written policy which expressly prohibited the receipt of cash by police officers and special police officers for special duty assignments. The report of Ballard Spain is attached. regret to say that the report has found that our police administration took deliberate actions to circumvent 1l1e policy and took steps to conceal the fact that the policy was not being followed. We have identified at least 160 violations of the policy. Towards the end of 2008, management began a review of the way in which outside and special assignments were handled by the Kingston Police Department. To ensure that the Municipality maintained appropriate supervision of Police Department operations and that the Municipality was insured for any potential liabilities, prior practices were suspended and a written policy was issued on January 29, 2009. The new policy prohibited cash compensation for police officers and required all payments to police officers to be processed through the Municipal payroll system- When the policy was issued, Municipal Administrator Paul Keating and I met with Police Chief Keith Keiper and Captain (later Assistant Chief) Daniel I-Iunsinger to discuss the implementation of the policy. Both Keiper and Hunsinger were made aware of the purpose of the policy and they agreed to implement the policy as instructed. We have now learned that l-lunsinger violated the policy on January 30, 2009, the day alter the policy was issued. Keiper violated the policy on February 10, 2009, less than two weeks after the policy was issued. Botl1 l-Iunsinger and Keiper violated the policy by receiving checks from Wyorriing Valley West and Wyoming Seminary, cashing the cheeks, and either paying the officers who worked directly in cash. or retaining cash for themselves for time they had worked. We have discovered that Keiper improperly diverted at least 3] payments from the Municipal payroll system and I-Iunsinger diverted at least 1] 1 payments from the Municipal payroll system. We also discovered that at least 18 Wyoming Valley West Middle School dances, officers were paid directly by school officials in cash. Each of these 160 total incidents was in direct violation of the policy which had been issued. 08/08/2013 10237' FAX 15702889493 I KINGSTON BDRU 002 Keiper and l-lunsinger concealed the violations of the policy from Municipal officials. By failing to provide Kingston"s administration with any information regarding the outside assignments and failing to distribute the policy to the officers, yet nonetheless correctly processing payroll for some outside assigtuneiits, it appears that a scheme had been implemented so that the violations of the policy would remain undiscovered. These violations of the policy put Kingston and its taxpayers at serious and substantial risk. As Ballard Spahr has reported: "I-lunsingcr and Keiper knowingly jeopardized the Municipality and opened it up to potential liability under federal and state law. In addition, the assignments were not police assignments sanctioned by the Municipality. As a result, Keiper and Hunsinger were operating the equivalent of their own security force and the officers were potentially not co vered by the Municipality's workers' compensation, disability or liability insurance policies. If any claim were asserted seeking coverage under such policies the officers could have been significantly prejudiced in seeking such coverage and the Municipality could have faced a potential claim for damages that was not covered by insurance. These actions left the Municipality at potentially at risk for a costly and possibly banlqupting claim for damages." it is unacceptable for Municipal officials like Keiper and Hunsinger to willfully disregard policies and directives issued to them by the Mayor and the Municipal Administrator. It is intolerable for those officials to conceal their violations of policies and orders and to be deceptive when confronted with evidence of their violations. It is unconscionable for Municipal officials to take unauthorized actions which expose Kingston to severe liabilities which carry the potential for bankrupting our community. As a result of our intemal investigation and the findings and recommendations of the Ballard Spalir report, I hereby direct the following action: 1. The resignation of Chief Keith Kciper alter a distinguished 37 year police career is accepted effective May 29, 2013. As discipline for his willful violations of Municipal policy, ChiefKeiper has been suspended for a period of 50 days, which suspension will be deducted from his accrued leave. 2. Assistant Chief Hunsinger is no longer an employee of the Municipality and I am unable to take disciplinary action against him. Nonetheless. the recommendation of both Ballard Spahr and of our Municipal Administrator would have been to terminate Hunsinger. If Hunsinger was still employed by Kingston, I would accept this recommendation and terminate him immediately. 3. Our Municipal Solicitor and Ballard Spahr are instru.cted to prepare written letters of reprimand to police officers who received cash compensation for the failure of those officers to bring the violation of policy to the attention of the Municipal administration. 4. The Municipal Administrator and the Officer-in-Charge of the Police Department are directed to review all police policies to ensure that they comply with law and best practices. They are also instructed to formulate policies instituting an affirmative obligation of police 2 10218 FAX 15702889483 KINGSTON BURO 003 officers and other employees to bring good faith complaints of wrongdoing or illegal activity to the attention of the Municipality, and to institute practices which encourage employees to bring questions of illegality or violation of Municipal policy to the attention of the Municipality. 5 The Officer--in-Charge of the Police Department shall convene a meeting with the Police Department to review the findings of this investigation, to ensure that violations of police policies cease, and to emphasize the affimiative duty of police officers to report actual or suspected violations of Kingston policy or law. It has been a great disappointment for us to learn of the policy violations uncovered by dais investigation. Despite these violations, 1 continue to have great confidence in the effectiveness and skill of the Kingston Police Department. I am confident that our officers will learn from these unfortunate events and will strive to meet the highest standards of professionalism as we go forward. I thank Municipal Administrator Patti Keating for the diligent and comprehensive work he has done on this difficult matter. I also thank Ballard Spahr for the thorough and complete investigation they have performed. Most of all, I would like to thank the residents of Kingston, who have shown great patience and understanding as this matter has been investigated and brought to a conclusion. Our residents deserve the most competent, professional and ethical Municipal services which can be provided. The current administration will continue to uphold the trust of our citizens and will demand honor and integrity from each of our Municipal employees.