IN THE MATTER OF WAYNE LUDEWIG
COIB Case No. 97-247
December 1998
SUMMARY: The Board fined a firefighter $7,500 for unauthorized moonlighting with a distributor of fire trucks and spare parts to the Fire Department. As part of the settlement, the firefighter agreed to disgorge income from his after-hours job, and the vendor, in effect, funded the settlement.
STIPULATION AND DISPOSITION
Respondent Wayne Ludewig states the following:
1. I have been employed by the New York City Fire Department ("NYFD") from October, 1990 to the present. From January 1995 to May 19, 1998, I worked as a part-time salesman for a distributor of fire trucks and spare parts (the "Distributor"). I did this part-time work after hours on non-City time.
2. Throughout my tenure with the NYFD, the Distributor had business dealings with the NYFD and I was aware of this.
3. Although I began working as a part-time commission salesman for the Distributor in January, 1995, I did not apply to the NYFD to obtain permission for extra-departmental employment ("EDE") until July 1, 1996.
4. My EDE application of July 1, 1996, which sought NYFD's permission to work as a "Sales Representative" for the Distributor, was disapproved on July 22, 1996. Despite the NYFD's refusal to permit me to work for the Distributor, I continued to work for the Distributor and to earn commissions.
5. I renewed my EDE application on October 12, 1997, applying this time as a "District Manager" for the Distributor. I obtained the NYFD's approval for the EDE on October 24, 1997. Although I had a titular promotion, my daily work as a salesman remained the same.
6. From October 24, 1997 to May 19, 1998, when my EDE authorization was revoked by the NYFD, I continued to work as a commission salesman (and not as a District Manager) for the Distributor.
7. I admit that my conduct constituted a conflict of interest in violation of Section 2604(a)(1)(a) of the City Charter in that I was an employee of the Distributor, knowing that the Distributor engaged in business dealings with the agency where I am employed, the NYFD.
8. Section 2604(a)(1)(a) provides in pertinent part:
"no public servant shall have an interest in a firm which such public servant knows is engaged in business dealings with the agency served by the public servant ...."
9. Sections 2601(12) and 2601(18) of the City Charter state that a public servant's "interest" in a firm includes being employed by that firm or acting as a broker or consultant to that firm.
10. I understand that my acting as an employee of the Distributor was improper and violated Charter § 2604(a)(1)(a).
11. I also admit that my conduct violated PA/ID 12-67, Section 1.1 and 1.8.1, in that I engaged in unauthorized extra-departmental employment and that, by this conduct, I also violated Section 25.1.1 of the Rules and Regulations for the Uniformed Force, in that I violated my Oath of Office.
12. I represent that I am not currently acting as an employee or independent contractor of the Distributor nor shall I ever act as an employee or independent contractor of the Distributor without first obtaining permission of the NYFD and New York City Conflicts of Interest Board (the "Board").
13. In acknowledgement of the foregoing, I agree to pay a fine of seven thousand five hundred dollars ($7,500) to the Board, to be paid simultaneous with my execution of this Disposition. I represent that I will take all steps deemed necessary by the Board to effectuate this settlement, including endorsing over to the Board, at a closing, commission checks from the distributor made payable to me, in the aforesaid amount of $7,500.
14. This fine amount reflects the following mitigating factors in this case, which I represent to be true and accurate under the penalties of perjury:
(i) My current salary with the NYFD is $46,248;
(ii) My wife does not work;
(iii) We have two children ages 1 1/2 and 3, one of whom requires special schooling;
(iv) I filed for personal bankruptcy under Chapter 7, and was discharged in 1991;
(v) I have a negative monthly cash flow; and
(vi) My wife and I have a negative net worth which includes loans of $14,500 (Fleet Bank) and $7,500 (NYFD pension loan).
15. 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.
16. I hereby waive any and all rights I may have pursuant to the New York State Civil Service Law, or pursuant to any collective bargaining agreement, and, in addition, affirmatively waive any other rights I may have to challenge this Disposition or any other version or draft of this Disposition.
17. I hereby agree and state that I am entering into this agreement knowingly, intentionally and voluntarily, without coercion or duress, and upon advice of my counsel, and I do accept all the terms and conditions contained herein.
18. The Board and the NYFD accept this Disposition and the terms contained herein as a final disposition of the above captioned matter, and the Board accordingly hereby dismisses and closes the above-captioned case, and both the Board and NYFD affirmatively state that no further administrative or disciplinary action will be taken by the Board or the NYFD against Mr. Ludewig based upon the facts and circumstances referred to herein.
Wayne Ludewig
Sworn to before me this day of
Sheila Pettit
Notary Public
New York City Fire Department
David Clinton
Deputy Commissioner Legal Affairs
The Conflicts of Interest Board
Benito Romano
Acting Chair
Dated: December, 1998