PETITION FOR REVIEW (UNEMPLOYMENT COMPENSATION)
Edward A. Mihalik, Aliquippa, for petitioner.
Clifford F. Blaze, Deputy Chief Counsel, James K. Bradley, Asst. Counsel, Harrisburg, for respondent.
Craig and Barry, JJ., and Blatt, Senior Judge.
[ 126 Pa. Commw. Page 158]
Claimant, Charles A. Montellanico, appeals from an order of the Unemployment Compensation Board of Review denying him benefits under section 3 of the Pennsylvania Unemployment Compensation Law,*fn1 the benefits disqualification which applies when unemployment results from a claimant's own fault.
The claimant had worked for H.H. Robertson Co. since October 1, 1962. His final position with the company before his discharge was as supervisor of personnel/hourly workers. He was also employed as treasurer of the H.H. Robertson Credit Union, an employees' federal credit union sponsored by the employer. However, the employer's only connection with the credit union consisted of making payroll deductions from employees' checks and paying that money into the credit union fund. The employer does not operate the credit union, nor does it have any liability or responsibility for the credit union. Members of the credit union include union employees, non-union employees, salaried employees, retirees, and families of credit union members.
On May 20, 1987, the claimant turned himself into federal authorities, "for some discrepancies in the credit union", consisting of "fictitious loans." Claimant admitted to federal authorities his practice of making fictitious loans and improper receipt of funds.
On June 9, 1987, the employer learned from federal authorities that an investigation was underway involving these discrepancies. The employer met with the claimant that day and suspended him from work for an indefinite
[ 126 Pa. Commw. Page 159]
period without pay. October 30, 1987, the employer discharged the claimant from employment.
Initially, the board reversed the referee's decision that the claimant was ineligible for unemployment compensation benefits under section 3. The board stated that there had been no finding of wrongdoing within or without the credit union function; hence, there was no wrongdoing in connection with work that would give rise to either the willful misconduct disqualification or the section 3 fault disqualification.
On appeal, the board reconsidered its decision, on the basis that it had erred in not noting that the claimant had admitted to federal authorities that he had engaged in illegal activities. The board concluded that these activities were directly related to the claimant's abilities to carry out his duties as a supervisor for H.H. Robertson and that the claimant was ...