Former Oregon Gov. John Kitzhaber admits ethics violations, settles with state

Former Oregon Gov. John Kitzhaber will pay a civil penalty of $1,000 to settle violations of state ethics law, bringing closure to a scandal that forced him to resign and has dragged on for years.

The Oregon Government Ethics Commission is scheduled to sign off Friday on the settlement, which Kitzhaber already has signed.

The commission’s investigation showed there was enough evidence to find Kitzhaber guilty of four violations.

Three of the violations were for conflicts of interest involving an overlap between Kitzhaber’s role as governor and his interest in a business owned by First Lady Cylvia Hayes.

The business, 3E Strategies, received payments from organizations advocating on state environmental issues.

Those violations occurred during 2011, 2012 and 2013, according to the settlement order.

The fourth violation was for accepting frequent flier miles earned while representing state government.

Kitzhaber declined interview requests.

In a written statement released through a public relations consultant, Kitzhaber said he didn’t perceive a conflict of interest because he understood Hayes’ work was aimed at educating people, not trying to shape or influence state policy.

“Having said that, I do not dispute the conclusion by the Ethics Commission that my failure to declare a potential conflict of interest violated the letter of the law,” he wrote. “I accept full responsibility for this violation and believe the proposed settlement to be a fair resolution of the case.”

The commission is scheduled to receive an investigative report into Hayes’ possible ethics violations at its Jan. 5, 2018, meeting, Executive Director Ron Bersin said.

Hayes' lawyer, Whitney Boise, declined to comment.

Oregon’s government ethics rules prohibit public officials from using their positions for financial gain and require public officials to declare potential or actual conflicts of interest.

The commission launched a preliminary review in fall 2014 after then-state Rep. Vicki Berger, R-Salem, and the Oregon Republican Party filed complaints alleging Kitzhaber and Hayes used their positions for financial gain.

Kitzhaber resigned in 2015 just weeks into his fourth term when state and federal criminal investigations were launched.

The commission suspended its preliminary review while the criminal investigations were under way.

On June 16 federal prosecutors announced they would close their case without filing any charges. On June 20, the ethics commission resumed its review.

The four ethics violations could have carried penalties of up to $20,000.

“I’m glad to see the Ethics Commission’s investigation resolved," Senate President Peter Courtney, D-Salem, who had called on Kitzhaber to resign, said. "Hopefully, this closes another chapter in what has been a painful time for Gov. Kitzhaber and his family.”

Other legislative leaders did not respond to interview requests.

tloew@statesmanjournal.com, 503-399-6779 or follow at Twitter.com/Tracy_Loew

Previous coverage: Former Oregon Gov. John Kitzhaber, Cylvia Hayes face formal ethics investigations