Ethics board examining WSU scuba instructor’s financial ties

PULLMAN – A Washington State University scuba diving instructor may have violated state laws by selling and renting equipment to students through his private company, according to the state Executive Ethics Board.

Barry Moore, who taught WSU’s scuba course since 1978, is accused of misrepresenting competitors’ prices and failing to inform students that he owns the Pullman company, Clearwater Scuba LLC.

Until the scuba program, a physical education class, was eliminated this year, between 60 and 100 students each semester paid Clearwater hundreds of dollars to rent a bundle of scuba gear that included tanks, regulators and weight belts.

The allegations stem from a 2013 whistleblower complaint that prompted a yearlong investigation by the state auditor’s office. On Friday, the state ethics board determined there’s probable cause to believe Moore violated state ethics laws.

Moore, who is also a professor in WSU’s School of the Environment, declined to comment Tuesday. But in an interview last spring, Moore defended his business practices, saying Clearwater was the only local scuba gear provider that could meet the students’ demands.

“We have a business that provides rental equipment targeted towards the students because basically no one else has been interested in doing that,” Moore said.

The ethics board report notes that when Moore began leading the scuba course in the early 1980s, the university’s equipment was in poor condition and the program director hadn’t been able to find money to replace it. The director “attempted to locate scuba stores or operations that would be willing to make scuba gear available for rent, either to the university or the students, but was unable to find anyone,” the report says. Moore then offered to rent through his business, Clearwater Scuba.

“My understanding is the university tried to put this contract out to bid in the past and no other vendors responded,” said WSU spokesman Robert Strenge.

WSU faculty members and an assistant attorney general agreed with the plan to have Moore’s company rent and sell equipment to students, and the plan was reviewed periodically over the years, the ethics board report says. In 2002 and again in 2008, university officials expressed some concerns about the arrangement, but Moore satisfied those concerns, it says.

The auditor’s office, however, found that Moore misrepresented his competitors’ prices in course materials distributed to students. He compiled rates from various Seattle shops into a hypothetical company dubbed “Brand X,” which indicated to students that renting from other providers would cost an additional $824 to $1,422 for the package from “Brand X,” versus $579 from Clearwater. He did not list cheaper options in the Spokane area.

“We found the subject provided information that is clearly beneficial to his company and has gained a special privilege based on his association with the University,” the auditor’s report says.

Although Moore disclosed that he owns Clearwater in course handouts, none of his students was aware of it, according to the auditor’s report. It says a student described him “pushing” the company. “Another witness did not think they had a choice to purchase elsewhere. Students said (Moore) came across as having worked with the business for years, which is why he was able to get them a good deal on equipment.”

Citing safety concerns about traveling with pressurized scuba tanks, the university allowed Moore to store his equipment on campus free of charge. Students who bought their own gear had to use separate lockers.

James Ledesma, who took the course last spring, said Moore “mentioned that if we did buy from another company, we wouldn’t be able to store it in the scuba room.”

Moore also capitalized on deep-water diving certifications, which are not offered through the university. Although administrators directed Moore not to associate the university with his business, he included the cost of certification on course handouts, sometimes bundled with equipment, textbooks and two nights’ stay at his home on Hood Canal, where he instructed the certification dives.

Kevin Johnston oversaw the pool area where the scuba classes were held and was uncomfortable with Moore’s practices. Johnston alerted WSU administrators, who recommended he contact the auditor’s office. Johnston filed the whistleblower complaint along with two colleagues, Larry Bruya and Robert Peavey.

WSU’s scuba program was among the most successful in the nation. Moore said last spring that he had taught more than 8,000 novice divers, most of whom have gone on to obtain deep-water certifications.

“The thing I’m really proud of is not the 8,000,” Moore said at the time. “It’s the fact that none of my students, to my knowledge, have been involved in an accident.”

For Johnston, the issue isn’t the quality of the program.

“This is about making a wrong right. It’s about making students aware that faculty members can’t charge you a dime,” he said. “It’s about an institution not willing to stand up and follow the laws of the state, because of the almighty dollar.”

Those conflict-of-interest laws prohibit state employees from having a financial interest in contracts they oversee, among other things.

In a letter responding to the auditor’s report, WSU said it has reviewed Moore’s business practices and implemented legal advice many times over the past three decades. But the university’s recent decision to eliminate the scuba program is permanent, spokesman Robert Strenge said.

“The class has been canceled and will no longer be offered,” Strenge said. “I don’t think there’s really any other available option under the circumstances.”

Strenge declined to say if the ethics board’s decision jeopardizes Moore’s position as a professor. Moore was given a month to respond to the ethics board’s findings.

David Killeen, the board’s lead investigator, said Moore could face a fine or could potentially work out a settlement.