EXCLUSIVE: Kitzhaber Faces New Questions
Saturday, October 25, 2014
In a Statement of Economic Interests document obtained by GoLocalPDX and filed with the Oregon Ethics Commission, Kitzhaber stated that his household received income from two companies, Energy Foundation and Resource Media, that had contracted with Hayes' consulting firm E3 Strategies.
But under a section that required him to disclose “any compensated lobbyist who was associated with a business with which you or a member or your household was associated during 2013” Kitzhaber simply put “N/A” or not applicable.
Media reports and partisan critics have railed against Hayes in recent weeks asserting that she is a lobbyist living off taxpayer funds and enjoying an unethical advantage in her role as a public official as Oregon’s “First Lady.”
In the Statement of Economic Interests, signed by Kitzhaber in April of this year, the Governor states that he had gained financially from two of three of Hayes' private consultant contracts that have been called into question.
The disclosure of the document by GoLocalPDX is another potentially serious issue now facing Kitzhaber.
Penalty For Violating Ethics Laws
Signatures are signed under a preamble that states that disclosures are true, “Under penalty for false swearing/false affirmation.”
Penalties for falsification of records, under ethics commission rules, can range up to a $5,000 fine.
GoLocalPDX asked the Governor’s office if Kitzhaber still maintained that Hayes' activities do not constitute lobbying, or if it would have been prudent to list her by name, in an abundance of caution? No answers had been provided by publication time.
Accusations of Lobbying
According to recent media reports, Hayes obtained what many describe as paid lobbying contracts while she lived in the Governor’s mansion and claimed to be “First Lady.” Previous GoLocal coverage has raised series questions about the “First Lady” claim as the Governor is not married to Hayes and there is no legal definition of the role as a public official in Oregon state law.
Download the Governor's Statement of Econmic Interests: Here
In 2013, Hayes receive three memos from the Governor’s staff warning her that her contracts with Energy Foundation, Resource Media and a third company, Demos, could constitute potential ethics violations.
Resource Media was hired to lobby the Governor against a proposed coal terminal for the Port of Morrow. Hayes’ contracted with Resource Media a year before the state quashed the terminal proposal this August, according to The Oregonian.
The Governor has repeatedly said he does not believe Hayes is in conflict with Oregon ethics laws. He has, however, asked for the ethics commission to give its own opinion on the matter.
Last week, GoLocalPDX asked the Governor’s office if Kitzhaber shared financial assets and income with Hayes. At first, the Governor’s office staff said they did not know, and then that would need days to locate the information. The request was filed under Oregon’s public records law. No information was forthcoming, however, documents were quickly obtained from the ethics commission.
On Thursday Kitzhaber’s opponent, Republican Dennis Richardson, called on the U.S. Attorney Amanda Marshall to conduct an investigation into a “Kitzhaber Fraud Scheme.”
Richardson accused Kitzhaber, a Democrat, and Hayes, of knowingly devising a scheme to defraud Oregonians of their “right to honest services.”
Kitzhaber and Hayes are already facing two ethics complaints, one filed by the Oregon Republican Party and one filed by state Rep. Vicki Berger, R-Salem.
UPDATE: 12:30 AM, October 25, 2014
Related Slideshow: Timeline of Cylvia Hayes’ Life and Misdeeds
March 28, 1989
Hayes divorced Todd Hayes in the state of Washington
Dec. 17, 1996
Hayes divorced Doug McCarthy
July 19, 1997
King County, Washington marriage records revealed Hayes married an 18-year-old Ethiopian immigrant, Abraham B. Abraham. There was no record of the couple living together and four years and three months later they filed for divorce, which was finalized in 2002. Hayes admitted to being paid $5,000 for the marriage, which she said she used to pay for school expenses and did not report in her taxes.
Evergreen State College
Hayes transferred to Evergreen from Bellevue Community College to earn a bachelor's degree in environmental studies in 1994. There she played on the woman's soccer team and was awarded academic and athletic scholarships. She stayed on at Evergreen to earn a master's degree in Environmental Studies in 1997.
Alleged pot farm property
Hayes and her then boyfriend bought property in Okanogan, Washington near the Canadian border. Hayes admitted the property was intended for marijuana growth, although she said the operation “never materialized” and that she was never financially involved. However, the person who took over the property said that Hayes and her boyfriend stopped making payments and that there was evidence of marijuana being grown there. She gave up her interest in the property in April 1998.
Investigation by DOJ
Hayes was the center of a criminal investigation by the Oregon Department of Justice surrounding a consulting contract she received from the Oregon Department of Energy. Although her firm was ranked last, it was still granted work. Hayes was never accused of any wrongdoing, but the investigation showed state officials had guided a $60,000 contract to her firm.
3E Contracts with Demos
Hayes signed a $20,611 consulting contract with Resource Media, a firm that had contacted Kitzhaber’s office the year before to promote a Pacific Coast climate and energy initiative.
Hayes signed a $40,000 contract with the nonprofit Energy Foundation, who she had worked with as part of her duties as a Kitzhaber adviser. Hayes had spoken at an Energy Foundation event in 2012 and emailed them in the start of 2013, mentioning funding for the company.
Hayes signed a $25,000 contract with Demos. Hayes spoke and moderated a Demos panel, but was introduced as Oregon’s first lady, rather than a paid consultant.
Oct. 9, 2014
In a press conference, Hayes admitted to an illegal green card marriage in 1997. She said that she told Governor Kitzhaber about the illegal marriage only a day before the news went public.
Oct. 13, 2014
Hayes admitted to KOIN 6 NEWS that she had lived on a property in Okanogan, WA used for growing and selling marijuana.
The bank loan
Oct. 15, 2014
The Willamette Week wrote that the Governor’s office had helped extend a government loan for a former client of Hayes’ consulting business in Bend, Oregon. The owner of a golf course was given an extension on his loan from the Oregon Department of Energy after the Department was persuaded by Kitzhaber's staff. The owner wrote a thank-you note to Hayes, Kitzhaber’s chief of staff and his business advisor for their help with the situation.
Oct. 15, 2014
The GOP filed a complaint with the Oregon Government Ethics Commission against Kitzhaber, Hayes, and the governor's unpaid advisor Patricia McCaig. It claimed there was a “conflict of interest transactions, employment relationships, benefits from public contracts, usage of public buildings and staff for personal financial gain and business."
Former boyfriend speaks
Oct. 21, 2014
Karl Topinka, Hayes' former boyfriend she owned the pot farm in Washington with, told the Daily Mail that Hayes couldn't be trusted. He also said the pot farm was all her idea and she had done the planning. Topinka said Hayes failed to tell him of her illegal marriage that had taken place shortly before.
Oct. 25, 2014
Governor Kitzhaber did not list Hayes in an ethics document consisting of lobbyists he had a relationship with, GoLocalPDX reported. In a section where he was supposed to disclose “any compensated lobbyist who was associated with a business with which you or a member or your household was associated during 2013,” Kitzhaber wrote “N/A” or not applicable.
Open records complaint
Oct. 29, 2014
GoLocalPDX.com filed a complaint with the Attorney General of Oregon against the Governor’s office for failure to comply with the open records law. A request for information to determine if the Governor had received income from Hayes’ consulting contracts was ignored for over two weeks, prompting the official complaint.
Hayes Speaks Out
Nov. 6, 2014
Cylvia Hayes made her first public statement since her confession that she had been part of an illegal sham marriage. The statement which she made via her Facebook page reads:
"I just want to thank all of you who have sent such support and encouragement over these past very challenging weeks. In the midst of the storm the positive incoming from friends, family and colleagues has been enormously helpful. Thank you for taking time to reach out."
Cylvia Hayes could face federal fraud charges for her dual role as a private consultant and public official in the Governor’s office, a series of legal experts told GoLocalPDX.
The findings of an Oregon Ethics Commission investigation will determine whether Hayes violated state ethics laws when she accepted contracts for her private consulting firm while working in the governor’s office under the title of “Oregon’s First Lady.”
On Jan. 9, Willamette Week reported Hayes was under federal investigation, raising the specter of federal charges.
- Hayes Faces Second Ethics Complaint
- How ‘First Lady’ Cylvia Hayes is Letting Feminists Down
- Gov. Calls in Ethics Commission Over Role Hayes Played in Government
- Republicans Call for State Investigation Into Kitzhaber’s Office
- New Polls Show Kitzhaber’s Support Slipping