From: Cannon, Patrick (LARA) Sent: Wednesday, February 01, 2012 10:00 AM To: Luzenski, Sue (LARA) Subject: FW: Question of Conflict of Interest From: Cannon, Patrick (LARA) Sent: Monday, January 09, 2012 4:17 PM To: Haynes, Carla (LARA) Subject: FW: Question of Conflict of Interest From: Cannon, Patrick (LARA) Sent: Tuesday, December 13, 2011 10:51 AM To: Lisle, Marie (MCSC) Cc: Jones, Leamon (LARA); Brown, Melanie (LARA); Luzenski, Sue (LARA) Subject: RE: Question of Conflict of Interest Hello Marie, Mr. Harcz has raised his charges in several ways, including at Public Comment during Commision meetings, his postings on various list servs and in his Correspondence to the Board. More recently he has advanced to Commissioners a resolution adopted by the National Federation of the Blind (of which he and all three commissioners are members) which raises the issue as follows: RESOLUTION 2011-08 NEW HORIZONS WHEREAS, Gwen McNeal has been on the Board of Trustees of New Horizons since 2010; and WHEREAS, the Michigan Commission for the Blind (MCB) through McNeal, continues to do business with New Horizons to this date including contracting for evaluations and engages New Horizons personnel on other cash match agreements, including one with Oakland County Schools; and WHEREAS, in the Rehabilitation Services Administration’s (RSA) 5-year Monitoring Report, RSA found that the Michigan Commission for the Blind, the Macomb Intermediate School District, and New Horizons Rehabilitation Services engaged in an illegal “cash match” agreement whereby New Horizons kicked in funds for federal match, and then received a no-bid contract (see Finding 6); and WHEREAS, MCB Regional Manager Gwen McNeal was the responsible agent for this and even gave an award to New Horizons in 2008; and WHEREAS, this, by any reasonable definition, constitutes a conflict of interest between this MCB Regional Administrator and a Community Rehabilitation Program; and WHEREAS, this clearly violates state ethics guidelines and may well be a violation of state and federal laws; NOW THEREFORE, BE IT RESOLVED by the National Federation of the Blind of Michigan in convention assembled this 6th day of November 2011 in the City of Kalamazoo, Michigan that the National Federation of the Blind of Michigan abhors this sort of apparent conflict of interests; and BE IT FURTHER RESOLVED that forthwith NFB-MI informs, in writing, Rehabilitation Services Administration, the Office of the Inspector General in the United States Department of Education, and the Michigan Attorney General’s Public Integrity Office about this situation and requesting a thorough investigation into these and other practices. Further, Marie, NFB members/commissioners raised the question at the Commission meeting last Friday, December 9. We do, of course, have much more correspondence on this issue if you wish to review it. Please let me know what additional information you would like, if any. Best always, Pat From: Lisle, Marie (MCSC) Sent: Tuesday, December 13, 2011 10:14 AM To: Cannon, Patrick (LARA); Arwood, Steve (LARA); Brown, Melanie (LARA) Cc: Luzenski, Sue (LARA); Jones, Leamon (LARA); Robertson, Bob (LARA) Subject: RE: Question of Conflict of Interest Pat, Do you have a written complaint or other correspondence from Mr. Harcz? If so, would you please send that information to me? If not, can you summarize what his specific allegations are? Thank you! From: Cannon, Patrick (LARA) Sent: Tuesday, December 13, 2011 8:36 AM To: Arwood, Steve (LARA); Brown, Melanie (LARA) Cc: Luzenski, Sue (LARA); Jones, Leamon (LARA); Lisle, Marie (MCSC); Robertson, Bob (LARA) Subject: Question of Conflict of Interest Hello Steve and Mel, Joe Harcz, an active consumer and involved citizen, has raised questions about a Manager at the Michigan Commission for the Blind who also serves as a Board Member of New Horizons, a community rehab partner. We have been looking into this situation and below is a note from New Horizon officials who assert that no such conflict exists because of the nature of Gwen McNeal’s involvement. Additionally, I’ve been advised that every board member of the organization must sign a pledge to not engage or dabble in the operations of the agency in any manner. Since Gwen attends these board meetings on her own time (evenings) and since New Horizon officials strongly contend that there is no conflict, my initial impression is that I tend to agree, although I wanted to call this to your attention so you are aware of the charges of Mr. Harcz. Let me know if you have any questions or suggestions regarding this scenario. Best always, Pat Cannon 517-373-3125 - Desk From: Jones, Leamon (LARA) Sent: Friday, December 02, 2011 1:41 PM To: Cannon, Patrick (LARA) Subject: FW: Letter & Call in Meeting Scheduled regarding conflict issue Hi Pat, This is the email that Gwen asked me to forward to you. From: McNeal, Gwen (LARA) Sent: Friday, December 02, 2011 12:24 PM To: Jones, Leamon (LARA) Subject: FW: Letter & Call in Meeting Scheduled regarding conflict issue FYI as I move forward. From: Marjon Davis [mailto:mdavis@NewHorizonsRehab.org] Sent: Friday, December 02, 2011 12:22 PM To: John C. Cashen (JCASHEN@BODMANLAW.COM) Cc: Stan Gramke (gramkestan@aol.com); bkeller@collinsburi.com; Dan Pienta; Ron Storing; McNeal, Gwen (LARA) Subject: Letter & Call in Meeting Scheduled regarding conflict issue John: Ron and I are researching New Horizons formal arrangement with the Michigan Commission for the Blind with whom Gwen McNeal is employed. Gwen has been a board member since September 25, 2008. This whole issue has to do with her having a potential conflict of interest. New Horizons has no Cash Match Agreements with the Commission for the Blind and no contracts. We’ve served, through a “fee for service” arrangement, individuals with visual impairment sponsored or funded by the commission for more than 30 years. We are diligently researching our board history, back to at least 2008 when Gwen came on the board, but really have not found anything to give credibility to these claims. In fact, I was just told by Kris Mooney, Director of Finance, that even though the board approved a required local match for some grants to Michigan Rehabilitation Services (MRS), due to regulatory changes, we were never required to send any money, so these checks were never cut to the State of Michigan. I think we’re good on this. I have faxed over the requested documents (to John Cashen only). Stan A. Gramke New Horizons Rehabilitation Services, Inc. President / CEO Call in Meeting Scheduled for 9 a.m. on Tuesday, December 6, 2011. Please see normal call in instruction below. Instructions for Conference Call In > Dial 1-866-303-1446 at the scheduled meeting time. > When prompted, enter conference code number, 2483400559 and press the # sign. (The conference code is the same as the New Horizons phone number.) > You will automatically be connected. Listen carefully to instructions as to muting, if so desired.