CLNCC - Public Integrity Request for Investigation
To: Deborah Moreau, Public Integrity Commission Legal Counsel
Andrew T. Manus, Commissioner
Rourke A. Moore, Commissioner
Honorable F. Gary Simpson, Commissioner
Ronald H. Chaney, Commissioner
Honorable Alex Smalls, Commissioner
Dr. Milissa A. Harrington, Commissioner
From: Civic League for New Castle County
About: Request for Investigation
Dear Miss Moreau and Commissioners of the Public Integrity Commission,
The Civic League for New Castle County (CLNCC) is asking for your help to address possible violations of the Delaware Code, Code of Conduct, and Oath of Office by the Governor, Secretary of Finance, Secretary of Labor, and the State Auditor of Accounts, concerning the 2023 embezzlement of state and federal funds from the Department of Labor’s Division of Unemployment Insurance Trust Fund.
Below is our request for an investigation which is within the authority of the Public Integrity Commission.
Please forward this request to all Commissioners.
Sincerely,
Civic League for New Castle County, Officers & Board Members
Request for Investigation
by the Delaware Public Integrity Commission
“Violations of the Delaware Code,
Code of Conduct, and Oath of Office
by Delaware State Officials
for Failure to Disclose and Possibly Conceal
the 2023 Embezzlement of State and Federal Funds
from the Department of Labor’s
Division of Unemployment Insurance Trust Fund”
The Civic League for New Castle County – a non-profit organization, founded in 1962, provides a forum for education on issues relating to the impact of government on the quality of life – is requesting an investigation by the Public Integrity Commission for possible violations of the Delaware Code of Conduct, and applicable statutes, by Governor John Carney, Secretary of Finance Richard Geisenberger, Secretary of Labor Karryl Hubbard, and State Auditor Lydia York, as described in the Delaware Code Title 29, Chapter 58, Code of Conduct, § 5806 (a).
Code of Conduct, § 5806 (a): “Each state employee, state officer and honorary state official shall endeavor to pursue a course of conduct which will not raise suspicion among the public that such state employee, state officer or honorary state official is engaging in acts which are in violation of the public trust and which will not reflect unfavorably upon the State and its government.”
(References, Delaware statutes, links to written reports, and news articles are listed below.)
Violations of the Public Trust
In order for our State Government to function with honesty and integrity, violations of the Delaware Code, Code of Conduct, and Oath of Office by state officials, either elected or appointed, cannot be ignored. It is vital that state officials act in the public interest, and therefore, violations of the public trust must be investigated.
Thus, the omission of facts and possible concealment from the General Assembly and the citizens of Delaware,* by Delaware state officials, concerning the 2023 embezzlement of state and federal funds at the Department of Labor’s Division of Unemployment Insurance Trust Fund, may be violations of the public trust, and therefore, warrant an investigation by the Public Integrity Commission.
( * Written reports in question are available to the public on the website of the Office of the Auditor of Accounts. See links below.)
Moreover, after a year of secrecy, the failure by Secretary of Finance Richard Geisenberger and State Auditor Lydia York to disclose the 2023 embezzlement – an amount of $181,000 – in their 2024 written reports, as required by the Delaware Code, has damaged the reputations of the State of Delaware and our State Government.
Similarly, Secretary of Labor Karryl Hubbard, fully or in part, kept the embezzlement secret from the General Assembly and the public. Additionally, a concern is the timeline of events in the Executive Branch: that is, when and if, Governor John Carney was informed about the 2023 embezzlement by the Secretary of Finance, the Secretary of Labor, or the State Auditor.
The Civic League for New Castle County emphasizes the considerable damage inflicted upon the public’s confidence in our state government as a result of the failure to disclose the 2023 embezzlement.
Consequently, actions by state officials have
the appearance of impropriety.
the appearance of collusion.
the appearance of a cover-up.
the appearance of political influence.
Violations of the Delaware Code, Code of Conduct, and Oath of Office
The Civic League for New Castle County believes it is possible that Governor John Carney, Secretary of Finance Richard Geisenberger, Secretary of Labor Karryl Hubbard, and State Auditor Lydia York – in their capacity as elected or appointed state officials – have violated Delaware statutes, and thus, meet the standards of violating the public trust, as described in the Delaware Code, Code of Conduct, and Oath of Office.
Through their actions, these state officials, fully or in part,
Failed to disclose the 2023 embezzlement in 2024 written reports, which is a violation of the Delaware Code by the Secretary of Finance and State Auditor, and in turn, has raised suspicion among Delaware’s citizens of a violation of the public trust.
Failed to disclose the 2023 embezzlement in 2024 written reports, which is a violation of the Delaware Code by the Secretary of Finance and State Auditor, and in turn, has undermined the trust in our state government to act in the public interest.
Failed to disclose the 2023 embezzlement in 2024 written reports, which is a violation of the Delaware Code by the Secretary of Finance and State Auditor, and in turn, has damaged the reputation of our State and State Government.
Failed to disclose the 2023 embezzlement in 2024 written reports, which is a violation of the Delaware Code by the Secretary of Finance and State Auditor, and in turn, has diminished the public’s confidence in our State Government and state officials.
Failed to disclose the 2023 embezzlement in 2024 written reports, which is a violation of the Delaware Code by the Secretary of Finance and State Auditor, and in turn, possibly was a deliberate act to conceal the 2023 embezzlement from the General Assembly and the public.
Reflected unfavorably on the state offices to which they are entrusted and reflected unfavorably on the reputation of the State and State Government.
Set an example of neglect and mismanagement of office by failing to act in the public trust through the failure to disclose the 2023 embezzlement.
Tarnished the reputations of state employees, who work diligently and honestly for the benefit of Delaware's citizens.
Misused a Disclaimer of Opinion – by a third-party accounting firm describing the auditing problems at the Unemployment Insurance Trust Fund and included in the 2024 written reports – which has the appearance of a red herring and distraction, in lieu of disclosing the 2023 embezzlement.
Submitted 2 letters (attached), dated June 4, 2024, – one signed by the Secretary of Finance and Secretary of Labor to the leadership of the General Assembly, and the other signed by the State Auditor to the members of the General Assembly – which have the appearance of a red herring and distraction in lieu of disclosing the 2023 embezzlement in 2024 written reports.
Conveyed in one of the June 4, 2024 letters – signed by the Secretary of Labor and the Secretary of Finance – that “a full accounting of findings and actions” will be forwarded to the General Assembly in July 2024, which has the appearance of delay to avert a clear explanation of the failure to disclose the 2023 embezzlement in 2024 written reports.
Ignored the duties of the Executive Branch, if and when, the Governor was informed about and subsequently failed to report the 2023 embezzlement in the Executive Branch’s announcements, correspondence, or the March 2024, State of the State Address.
The Civic League for New Castle County believes that state-government officials, who violate the public trust, are undeserving to hold the offices to which they are entrusted and should be held accountable for their actions.
The hubris of state officials to ignore the law, and the contempt of state officials to violate the Delaware Code, Code of Conduct, and Oath of Office are not in the best interests of good government and should not be excused. Delaware state officials – whether executive, legislative, or judicial – should be held to the same high standards as any Delaware citizen: that is, to obey Delaware’s laws.
Therefore, the Civic League for New Castle County requests the Public Integrity Commission exercise its authority and investigate possible violations of the Delaware Code, Code of Conduct, and Oath of Office by Governor John Carney, Secretary of Finance Richard Geisenberger, Secretary of Labor Karryl Hubbard, and State Auditor Lydia York.
Without a thorough investigation, confidence in our state government is in jeopardy.
Upon conclusion of its investigation, the Public Integrity Commission should report its findings and recommendations to the General Assembly and Delaware’s citizens.
Please do your duty to protect the reputation of the State of Delaware and hold state officials accountable for any actions that violated the public trust. Delaware's citizens must be confident that our State Government functions with integrity and honesty, and that our State Government is acting in the public interest.
Civic League for New Castle County, Board Members
Contact Chuck Stirk, CLNCC President, at 302-463-2239
References
Authority of the Public Integrity Commission to Investigate
The Public Integrity Commission has the authority to review violations of the public trust and to investigate information coming before the Commission, as described in the Delaware Code Title 29, Chapter 58, § 5808A.
2024 Written Reports that Failed to Disclose the 2023 Embezzlement
Pages vii and viii - Department of Finance Statement - Annual Comprehensive Financial Report
https://auditor.delaware.gov/wp-content/uploads/sites/209/2024/03/FY-2023-ACFR-FINAL-03262024.pdf
Page 1 - Auditor of Accounts - Summary Annual Comprehensive Financial Report
https://auditor.delaware.gov/wp-content/uploads/sites/209/2024/03/ACFR-FY23-Summary-032624-v3.pdf
Pages 2, 3 - Auditor of Accounts Special Report: Delaware Unemployment Compensation Fund
https://auditor.delaware.gov/wp-content/uploads/sites/209/2024/03/DOLUI-Final-Report.pdf
Pages 29, 30, 31 - Independent Auditor’s Report
https://auditor.delaware.gov/wp-content/uploads/sites/209/2024/05/FY23-Single-Audit-Final.pdf
Pages 29, 30 - Uniform Guidance Single Audit Report
https://auditor.delaware.gov/wp-content/uploads/sites/209/2024/05/FY23-Single-Audit-Final.pdf
Violations of the Delaware Code, Code of Conduct, and Oath of Office:
Filing written reports is a statutory requirement of postaudits by the Office of the Auditor of Accounts to the Governor, General Assembly, and the public, including the disclosure of all illegal and unbusinesslike practices, as mandated in the Delaware Code Title 29, Chapter 29, Auditor of Accounts, § 2909.
Filing written reports is a statutory requirement by the Department of Finance’s Division of Accounting to the General Assembly, the Attorney General, and the Director of the Office of Management and Budget, including the disclosure of irregular, illegal, or improper financial administration or transaction, as mandated in the Delaware Code Title 29, Chapter 83, Department of Finance, Division of Accounting, § 8304.
State officials must carry out their responsibilities and demonstrate conduct in accordance with actions that are in the public trust, as described in the Delaware Code Title 29, Code of Conduct, Chapter 58, § 5806 (a).
State officials must carry out their responsibilities and demonstrate conduct in accordance with their actions that are in the public interest, as described in the Delaware Constitution, Article XIV, Oath of Office.
The Governor must carry out his/her responsibilities and demonstrate conduct in accordance with his/her actions that are in the public interest, as described in the Constitution, Article XIV, Oath of Office.
The Governor must carry out his/her responsibilities and execute Delaware’s laws as described in the Constitution, Article III, § 14, 15, and 17.
News Media Articles
https://whyy.org/articles/delaware-state-employee-embezzlement-unemployment-trust-fund/
https://delawarebusinessnow.com/2024/05/my-take-time-for-a-state-labor-department-overhaul/
https://whyy.org/articles/delaware-unemployment-theft-embezzlement-michael-brittingham/
https://whyy.org/articles/delaware-nonprofit-oversight-hearings-theft-taxpayer-funds/
https://whyy.org/articles/inspector-general-office-delaware-bill/
https://delawarebusinesstimes.com/news/viewpoints/vwpt-report-embezzlement-unemployment-insurance/
https://www.capegazette.com/article/republicans-want-answers-missing-180000/276468
https://delawarebusinesstimes.com/news/vwpt-delaware-inspector-general/
