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Ex-Gov. John Kitzhaber violated ethics laws 11 times, according to Oregon commission report

According to the report, the ex-governor used his office for financial gain, or to avoid financial problems, for former First Lady Cylvia Hayes and her consulting firm, 3EStrategies.
John Kitzhaber KGW.com

Former Gov. John Kitzhaber allegedly violated state ethics laws 11 times during his third and fourth terms as governor, with the violations potentially carrying fines up to $55,000.

An investigative report released Wednesday by the Oregon Government Ethics Commission staff outlines a suite of alleged violations. The commission is poised to vote Friday on whether it agrees with its staff's findings.

Under Oregon law, ethics officials are allowed to fine as much as $5,000 per violation, said Ron Bersin, the commission's executive director.

According to the report, the ex-governor used his office for financial gain, or to avoid financial problems, for former First Lady Cylvia Hayes and her consulting firm, 3EStrategies.

Kitzhaber failed to follow state laws to handle "potential conflicts of interest" when he took actions that may have impacted the consulting firm's financial interests, ethics officials said.

In addition, he accepted frequent flyer miles as a gift from United Airlines that exceeded the $50 gift limit for travel during which he represented Oregon government at a time when United had an administrative or legislative interest in his decisions as a public official.

Kitzhaber also had his staff arrange personal travel for him and allowed state workers to take care of Hayes' pets, ethics officials said.

In a letter to the ethics commission, lawyers for Kitzhaber said the former governor "unequivocally rejects the suggestion that he used his public office to obtain a financial benefit for himself or Ms. Hayes."

"In fact, Dr. Kitzhaber never asked anyone to procure work for Ms. Hayes. He never requested that foundations provide funding for Ms. Hayes's work," his lawyers said.

"He never suggested to non-profit organizations that they should hire Ms. Hayes. And he did not involve Ms. Hayes in his administration to promote her professional work with non-profit organizations," they said.

Kitzhaber resigned in February 2015, not long after being sworn in for an unprecedented fourth term, because of the influence-peddling scandal.

As state and federal criminal investigations kicked off, the state ethics commission tabled its ethics review.

After federal prosecutors said last June they wouldn't file charges against Kitzhaber or Hayes, the ethics commission restarted its review.

Wednesday's 11 violations exceed the four ethics violations the commission accused him of last November.

Three of those violations came from conflicts of interest due to an overlap between Kitzhaber's governorship and his interest in 3EStrategies. The fourth regarded his taking frequent flyer miles while representing state government.

The ethics commission subsequently rejected a proposed $1,000 settlement over the violations and told its staff to continue the investigation, which resulted in Wednesday's staff report. Kitzhaber said he was "surprised" by the rejection.

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