Advisory Opinion No. 1994-1
Official Action Taken By The Chairperson Of The Accountancy
Board Regarding Matter
Relating To A Former Private Client
The Chairman of the Board, the Honorable Bernard Blum, is a
partner in the accounting firm of Blum, Shapiro & Co. (the Firm). The Firm previously performed services for
Colonial. Furthermore, Ms. Jayne
Shapiro, the daughter of another partner in the Firm, allegedly received
commissions from Colonial for persuading certain individuals, including clients
of the Firm, to invest in Colonial. In order to avoid even an appearance of impropriety, Mr.
Blum recused himself from the Andersen case.
The Board is now considering action regarding the conduct of David
Federman and has asked whether, under the Code of Ethics for Public Officials,
specifically Conn. Gen. Stat. §§1-84(a), 1-86(a), Mr. Blum may participate in
any decision regarding Mr. Federman.
Pursuant to Conn. Gen. Stat. §1-84(k), Mr. Blum is a public official and
subject to the provisions of the Code of Ethics for Public Officials, Chapter
10, Part I, Connecticut General Statutes.
In general, the conflict of interests provisions of Conn. Gen. Stat.
§§1-84(a), 1-85, and 1-86(a) prohibit a public official from taking official
action if, as the result of such action, he, certain family members, or a
business with which he is associated will derive a financial benefit or suffer
a financial loss. For purposes of the
Code of Ethics, the Firm is a business with which he is associated. See Conn. Gen. Stat. §1-79(b). Although Mr. Blum may know Mr. Federman and both the Firm
and Ms. Shapiro may have provided services to Colonial in the past, absent any
other facts to the contrary, neither Mr. Blum, his family members, nor the
Firm, can derive any financial benefit or loss from any action the Board may
take regarding Mr. Federman. Therefore,
under the Code of Ethics, Mr. Blum does not need to recuse himself from the
matter. Although the State Ethics Commission
does not have the authority to prohibit actions which create an appearance of
impropriety, Mr. Blum may, however, once again choose to recuse himself if he
or the Board deems it appropriate. By order of the Commission, Christopher T. Donohue
Chairperson