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Ex-boss says he confronted Giusto about affair

08:04 AM PDT on Thursday, April 24, 2008

By kgw.com and AP Staff

PORTLAND, Ore. -- A former Oregon State Police superintendent says he confronted Bernie Giusto about an affair with the wife of former Gov. Neil Goldschmidt even though Giusto has sworn he doesn't remember such a meeting.

But Reg Madsen told state investigators he called Giusto into his office in 1989, saying it was the type of meeting "you'd never forget even if you wanted to."

Giusto is Multnomah County sheriff. He was then a state police lieutenant assigned to guard Goldschmidt.

Madsen said in documents released Tuesday that Giusto denied the affair, but because of the reports, he took Giusto off the governor's detail.

 More: Details of Giusto probe over possible lies

Goldschmidt admitted in 2004 that he had sex with a teenage girl when he was mayor of Portland in the 1970s, leading to allegations that Giusto knew about it and helped cover it up.

The state Department of Public Safety Standards and Practices has been looking into allegations against Giusto, who says he will retire this year, but has pledged to fight to keep his badge.

Under oath, Giusto also said that he had requested a transfer because of his election to the Gresham City Council and had never been told his transfer was a result of his relationship with Margie Goldschmidt.

The new allegation is similar to one of four the agency's police policy committee voted to dismiss in February because it was based on a story in The Oregonian newspaper in 2004. Instead, the committee requested that an investigation look directly at whether Giusto lied to his supervisors about an affair and later lied about the reasons for his transfer.

 More: Details on Giusto's retirement

The release of the investigation report Tuesday -- less than a month before the police policy committee is scheduled to make a recommendation -- was a surprise, said Bruce McCain, a lieutenant working as Giusto's lawyer. He said the current investigation was a face-saving attempt by the agency staff. "They spent so much time and resources to build a losing case the first time around they can't just walk away," said McCain.

Giusto declined to be interviewed by investigators and has long refused to discuss his relationship with Margie Goldschmidt, beyond saying that they were close friends while he was in the security detail and acknowledging that they dated after she divorced her husband.

Former Oregon State Police colleagues told investigators they were convinced that Giusto was having an affair with her, providing details of how it was hidden.

"The Governor was out of town, and he (Giusto) had a bottle of wine and two glasses, and he came to me and just told me to give him a call and gave me a phone number to call if anybody came," Patrick Ashmore said.

William McGill told investigators that he once alerted Giusto -- alone in the maid's quarters with Margie Goldschmidt -- that the governor was returning. Giusto hurried down the back stairs and said, "Thanks, Mac, I owe you one."

Once when the governor unexpectedly returned home he become enraged to discover that Giusto was at the mansion with his wife, James Hinkley said.

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