The state Ethics Commission has levied a $10,000 fine against William Eric Boyd, an employee of a charter school in Hilo, for ordering and approving purchases for the school from his family business.

Boyd, an administrative assistant at Connections Public Charter School, was found to have violated the conflict-of-interest law in 20 instances by acting on behalf of the school and/or his family’s company in financial transactions. He was fined $500 for each violation.

Boyd Enterprises supplied the school with lunches for several years, and the Boyd family’s Amway business sold supplies, camcorders and other equipment to the school.

"The state Ethics Code prohibits a state employee from conducting government business with himself," said Les Kondo, executive director of the Ethics Commission. "The law is also intended to prevent situations where a state employee is able to ‘profit’ from the connections he has with his own state agency."

There are no charges against the school itself.

Boyd’s attorney, Ted Hong, said he would appeal the decision in Circuit Court on several grounds. Hong acknowledged that teachers at charter schools are state employees, but he argued that other charter employees are not state employees and thus not subject to the Ethics Code.

"My client specifically testified that had he known that these were the rules and that these rules applied to him, he would have followed them," Hong said, adding that Boyd and other charter employees were not notified that they were subject to the Ethics Code. "We have a fundamental fairness issue that we want to bring up on appeal."

"My client is getting a relatively modest salary, and now they’re saying you have to pay $10,000," Hong added. "It’s ridiculously and outrageously high."

Charter schools are public schools. Their employees are paid with state money and are entitled to state health benefits, vacation and retirement. But they operate somewhat autonomously, reporting to local school boards that are issued charters by the state to run the campuses.

The commission’s decision, made public Monday, followed a contested-case hearing Nov. 27 in Hilo, during which commissioners ruled that Boyd was a state employee and subject to the code. Along with the fine, the commissioners referred their complaint against Boyd to the governor Monday "for appropriate action in his discretion."

"The Ethics Commission’s primary duties are to provide guidance and educate state employees about the Ethics Code," Kondo said. "But there are times where the commission needs to wear its enforcement hat, and this is one of those times."