Biotech chief in ethics probe

The State Ethics Commission has launched a formal investigation to determine whether the new president of the Massachusetts Biotechnology Council, Robert K. Coughlin, violated conflict-of-interest laws when he entered job talks with the industry association while continuing to work as Governor Deval Patrick's economic development undersecretary, according to sources with knowledge of the investigation.

The Biotech Council received subpoenas last week from the Ethics Commission seeking a broad selection of documents, including e-mail and telephone records, that would shed light on the council's decision to hire Coughlin as its new president in August, sources said.

The Ethics Commission, after its staff conducted a preliminary review, issued the subpoenas after voting formally in a confidential session to move ahead with its probe on Sept. 21, the sources said. The sources asked for anonymity because Ethics Commission proceedings at this stage are confidential.

The Biotech Council would not confirm yesterday whether it had been served with subpoenas. "The council will of course cooperate fully with any Ethics Commission inquiry, and it looks forward to a speedy resolution to this matter," said Ray Howell, a spokesman. Coughlin's lawyer has said that his client did nothing improper and that he observed state law.

The Ethics Commission is investigating whether Coughlin broke the state's conflict-of-interest law by waiting six weeks to inform Patrick that he had met with Biotech Council officials to discuss its vacant presidency. The job was open because Thomas M. Finneran, the former speaker of the Massachusetts House, was forced to resign from the $500,000-a-year post in January. Finneran, who held the Biotech Council job for just over two years, left after pleading guilty to obstruction-of-justice charges that stemmed from his testimony in a redistricting lawsuit.

If the Ethics Commission finds Coughlin guilty of a civil violation of the state conflict-of-interest law, he could face a fine of up to $2,000.

During the six weeks between Coughlin's initial June 11 meeting with Biotech Council representatives about the presidency and July 24, when he notified the Patrick administration of his interest in the post, Coughlin, the undersecretary of economic development, continued to play a key role in the governor's life-science initiatives.

Some of his activities involved meeting and working closely with biotechnology executives to develop legislative language for tax breaks that the industry wanted in the administration's initiative.

Coughlin, a former Democratic state representative from Dedham, worked as undersecretary in Patrick's Department of Housing and Economic Development for just eight months before leaving for his industry job. State economic development officials have not received a subpoena in the case, a Patrick administration official said yesterday.

The commission's decision to conduct an official probe will test the agency's interpretation of the conflict-of-interest law. A legal advisory issued by the commission in 2004 concluded that state law requires public officials to notify their appointing authorities - in this case, Patrick - of any meetings they have with prospective employers about a job if they are simultaneously participating in matters that affect the employer's financial interests.

Since the Globe first reported on Coughlin's actions in August, Coughlin's attorney, Thomas R. Kiley, has argued that the Ethics Commission's advisory does not accurately reflect the requirements of the law.

Kiley said Coughlin's initial meeting with the head of the Biotech Council's search committee and the group's chief operating officer was merely a "meet-and-greet" and did not require him to inform the governor. Kiley, whose client list over the years includes a number of Beacon Hill figures facing Ethics Commission investigations, reiterated this week his confidence that Coughlin complied with the law.

The Biotech Council, facing a high-profile probe of a second consecutive president, has also hired a lawyer with expertise in state ethics rules: Cheryl Cronin, who has a long history defending public officials facing conflict-of-interest accusations. She declined to comment yesterday.

Since taking the job and then seeing controversy emerge over the selection process, Coughlin has declined to be interviewed, including on issues facing the biotech industry. His office has indicated that he will not speak to reporters before next month.

David A. Wilson, the Ethics Commission's acting executive director, said the agency is prohibited from commenting on investigations. "I can't confirm or deny any investigation," he said.

According to the commission's published regulations, the agency launches a full-scale investigation only after adopting a recommendation from the enforcement staff, which conducts a preliminary inquiry.

The preliminary staff inquiry was prompted after the Globe obtained records of Coughlin's e-mail and telephone records in August that showed the six-week overlap between his meetings with council representatives and his notice to Patrick.

It was only after Coughlin notified Patrick that he began removing himself from participation in all matters connected with life-science economic development issues. The Biotech Council announced his appointment to the presidency Aug. 13.