Updated: 10:48 p.m.

On the same afternoon that the Portland Marathon tried to put to rest with the question of whether or not the race would even be allowed to happen in 2017, KGW published a report saying the Department of Justice has "opened a probe this week into the Portland Marathon for possible conflicts of interest at the 501(c)(3) nonprofit."

"We are aware of the media articles about the Portland Marathon," Kristina Edmunson, spokesperson for the DOJ, said over email Friday. "However, we haven't confirmed that we've opened an investigation."

She did say that the DOJ is reviewing the marathon's financial situation.

On Tuesday, the Portland Bureau of Transportation announced it had denied the marathon's permit for 2017. On Friday, the marathon put out a statement saying, they had "met [with police] and agreed to work out a great course for the October 8th Portland Marathon."

PBOT said Friday they are now in talks with the marathon. The permit is still officially denied but the appeal process is suspended "pending the outcome of recently started negotiations over a new route for the event."

This is not the first issue the marathon has had with the city. In 2016, the marathon almost didn't happen after disagreements about the event's medical plan broke out between the marathon and the Portland Fire Bureau.

The event struggled more when, in the wake of the 2016 run, it emerged that some runners went about a half a mile further than they should have and then the wrong person was awarded first-place.

According to KGW, the marathon's tax filings raised questions at the DOJ.

The marathon's 990 forms show that since 2011, the Portland Marathon only has two board members: Les Smith, the event director and president, and Mamie Wheeler, vice-president and medical director. Nonprofits are required by Oregon law to have three board members.

The marathon also hasn't filed the required 990 since 2014.

If the marathon fails to file 990s for three years in a row, it automatically loses its tax exempt status. Smith told KGW that the records for the missing years are with an accountant, "on extension to file."

The DOJ is also concerned about possible conflicts of interest between the Portland Marathon and Next Events, a for-profit events company that lists Smith and Wheeler as CEOs.

"In multiple places on the 990s they have filed, [the Portland Marathon indicates] there is not a financial relationship with any related entity," Edmunson told KGW. "However, if they are actually paying the contractor but not properly reporting, in general, yes, they would need to report the payments received – but there are always exceptions to tax rules."

In 2014, Smith took a salary of $154,150 and Wheeler took a salary of $144,000. While there isn't a legal issue with taking a large salary, KGW reported some runners found those salaries "shocking."

The Portland Marathon costs $250 for individual registration for the half marathon and $145 for the full marathon.

You can read the whole report from KGW here.

-- Lizzy Acker

503-221-8052

lacker@oregonian.com, @lizzzyacker