Gordon Friedman

Statesman Journal

The official who ran the Oregon Educators Benefit Board until his resignation this month had conflicts of interest with insurers seeking contracts with the state, used state resources for personal purposes, was dishonest and had poor leadership, according to investigation documents released by the Oregon Health Authority.

James Raussen was placed on leave by the board in September and his resignation was announced Nov. 10. The Statesman Journal has not been able to reach him for comment. But, he denied any wrongdoing in a Nov. 15 statement his attorney provided to the Portland Tribune.

The alleged policy violations identified by investigators hired by the Oregon Department of Justice include:

He accepted gifts in excess of $50 in violation of state policy. At least $887.92 in gifts over $50 were from insurers including Kaiser, MODA, Providence, The Standard and Willis Towers Watson. Investigators said one gift was accepted while the insurer was in contract negotiations with the state.

While on business trips, Raussen used a state-owned car to drive miles out of his way to do wine tasting in Hood River and Walla Walla, Wash.

Raussen arranged to stay an extra night in Las Vegas after a business conference, resulting in an unnecessary hotel and meals reimbursement of $293.

Raussen took an extra week of vacation. Investigators said he failed to record a week of paid vacation in March 2016 and then subsequently took another vacation in July that he did record.

Raussen made inappropriate comments about employees' race and sexuality. He also made insensitive comments such as saying that Oregonians are unsophisticated.

In a statement to the Statesman Journal, Keely West, a public records coordinator for the Oregon Health Authority, cautioned the documents were preliminary and may contain inaccuracies.

"This preliminary document was not intended for release and reflects only the information available to the investigator at the time. This document may contain inaccuracies or incomplete information," West said.

The DOJ investigation into Raussen was never completed. When he resigned, the investigation was halted, officials said. He had been director of the benefits board for less than a year. The agency provides benefits for nearly 150,000 Oregon teachers.

The heavily redacted documents were released to the Statesman Journal Monday via public records request. They note that more information is needed regarding certain accusations against Raussen.

Among the released documents are a preliminary findings report, 204-page interview between Raussen and investigators, and interviews with two witnesses who are not identified by name.

Raussen was "extremely cavalier" regarding rules about gifts to state employees, investigators said. They noted his attitude "is particularly egregious and irresponsible" because he was previously investigated for accepting $644 tickets to an NFL game while he was an Ohio legislator. Raussen was forced to repay the cost of the tickets and complete ethics training, investigators said.

Raussen acknowledged that being given tickets to sporting events in Oregon "were particularly an issue," records show. Raussen accepted tickets from MODA to a Portland Trail Blazers game, and although he told investigators he later paid for the tickets, investigators could find no confirmation.

Oregon public employees are prohibited from accepting meals or gifts worth more than $50 from a single source.

Send questions, comments or news tips togfriedman2@statesmanjournal.com or 503-399-6653. Follow on Twitter@GordonRFriedman.