CITY OF NEW YORK CONFLICTS OF INTEREST BOARD

2 Lafayette Street, Suite 1010 New York, New York 10007 (212) 442-1400 Fax: (212) 442-1407 TDD: (212) 442-1443

Steven B. Rosenfeld Chair/Board Member Monica Blum Board Member Andrew Irving Board Member Burton Lehman Board Member Erika Thomas-Yuille Board Member ____________ Mark Davies Executive Director Wayne G. Hawley Deputy Executive Director & General Counsel Carolyn Lisa Miller Director of Enforcement Julia Davis Special Counsel & Director of Financial Disclosure Alex Kipp Director of Training & Education Varuni Bhagwant Director of Administration Derick Yu Director of Information Technology

FOR IMMEDIATE RELEASE August 8, 2012

CONTACT: Carolyn Lisa Miller (212) 442-1419

NYC ASSISTANT PRINCIPAL FINED $3,500 FOR BUYING A HOUSE AND TAKING LOANS FROM A TEACHER
The New York City Conflicts of Interest Board (Board) reached a settlement with an Assistant Principal for the New York City Department of Education (DOE) who paid a $3,500 fine for entering into multiple financial relationships with a subordinate teacher. In a public disposition of the Boards charges, the Assistant Principal admitted to buying a house from a teacher he supervised and then renting the house back to her. The Assistant Principal further admitted to borrowing a total of $7,000 from the same teacher. The Assistant Principal acknowledged that each of these financial dealings with a teacher he supervised violated the City of New Yorks conflicts of interest law provision prohibiting public servants from entering into a financial relationship with a subordinate. A copy of the disposition is attached here. All of the Boards dispositions are available free of charge, in full-text searchable form, on the website for the Center for New York City Law at New York Law School (www.CityAdmin.org). The Board took the occasion of this settlement to remind City employees that the conflicts of interest law strictly prohibits City employees from having any business or financial relationship with a superior or subordinate employee. Bre Injeski, Deputy Director of Enforcement, handled this case for the Board. The Board gratefully acknowledges the work of its confidential investigative arm, the New York City Department of Investigation (DOI), DOI Commissioner Rose Gill Hearn, Special Commissioner of Investigation for the New York City School District (SCI) Richard J. Condon, and SCI Investigator Michael Humphreys, who handled the investigation.

The Conflicts of Interest Board is the Citys ethics board and is charged with interpreting and enforcing the Citys the conflicts of interest, financial disclosure, and lobbyist gift laws. For more information about the Board, visit: http://nyc.gov/ethics. Anyone with questions about the law is urged to contact the Board through its website or by calling (212) 442-1400. The Board does not comment on its dispositions, except as set forth above. For additional public information about the Boards enforcement activitiesincluding summaries of all enforcement dispositions and fines imposedvisit: www.nyc.gov/html/conflicts/html/units/enforcement.shtml.

THE CITY OF NEW YORK CONFLICTS OF INTEREST BOARD ----------------------------------------------------- x : In the Matter of : : : LARRY THORNTON : : : Respondent. : : ----------------------------------------------------- x

DISPOSITION

COIB Case No. 2010-479

WHEREAS, the New York City Conflicts of Interest Board (the Board) commenced an enforcement action pursuant to Section 2603(h)(1) of Chapter 68 of the New York City Charter (City Charter) against Larry Thornton (Respondent); and WHEREAS, the parties wish to resolve this matter on the following terms; IT IS HEREBY AGREED by and between the parties as follows: 1. In full satisfaction of the above-captioned matter, Respondent admits to the following: a. Since November 16, 1987, I have been employed by the New York City Department of Education (DOE). As such, I am a public servant within the meaning of Chapter 68. b. At all times hereafter mentioned, I was the Assistant Principal responsible for the Special Education Program at P.S. 302 in the Bronx (P.S. 302X). As such, I was the direct superior of all Special Education Teachers assigned to P.S. 302X. c. In or around 2008, I accepted a $2,000.00 personal loan from a Special Education Teacher at P.S. 302X (herein, the Teacher). Sometime thereafter, I fully repaid this loan. d. In or around November 2009, the Teacher informed me that she was unable to make her monthly mortgage payments and was at risk of foreclosure. The Teacher wanted to sell her house to avoid foreclosure, so I offered to buy her house. The Teacher accepted my offer and was represented by an attorney in the sale. e. At the closing on November 11, 2009, the Teacher and I entered into a landlordtenant agreement so that she could continue living in the house after the sale.

f. In or around December 2009, at my request, the Teacher loaned me $5,000.00. g. On January 29, 2010, the Teacher retired from DOE and ceased being my subordinate. h. I acknowledge that, by soliciting personal loans from a subordinate City employee, I violated the Citys conflicts of interest law, specifically City Charter 2604(b)(3), which states: No public servant shall use or attempt to use his or her position as a public servant to obtain any financial gain, contract, license, privilege or other private or personal advantage, direct or indirect, for the public servant or any person or firm associated with the public servant. i. I acknowledge that, by entering into the above-described financial relationships with a subordinate City employee, I further violated the Citys conflicts of interest law, specifically City Charter 2604(b)(14), which states: No public servant shall enter into any business or financial relationship with another public servant who is a superior or subordinate of such public servant. 2. In recognition of the foregoing, Respondent agrees to the following: a. I agree to pay the Board a fine of Three Thousand Five Hundred Dollars ($3,500.00) upon signing this Disposition, by money order or by cashier, bank, or certified check, made payable to the New York City Conflicts of Interest Board. b. This Disposition is a public and final resolution of the Boards charges against me. c. I knowingly waive on my behalf and on behalf of my successors and assigns 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, and to contest the lawfulness, authority, jurisdiction, or power of the Board in imposing the penalty which is embodied in this Disposition, and I waive any right to make any legal or equitable claims or to initiate legal proceedings of any kind against the Board, or any members or employees thereof, relating to or arising out of this Disposition or the matters recited therein. d. I confirm that I have entered into this Disposition freely, knowingly, and intentionally, without coercion or duress, and after having had the opportunity to be represented by an attorney or other representative of my choice; that I accept all terms and conditions contained herein without reliance on any other promises