Federal investigation of Kitzhaber to focus on potential financial crimes - News - DailyTidings.com - Ashland, OR

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2015-03-30

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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation  |  Register x Forgot Password | Need an Account? subscribe | newsletter | deals Home News Latest Stories Medford woman killed in Highway 140 motorcycle crash Seven tasks that help prevent hospital readmissions Ashland's ScienceWorks Hands-On Museum to double classroom space New Southern Oregon University board votes to bump tuition nearly 5 percent in the fall Police Reports Education New Southern Oregon University board votes to bump tuition nearly 5 percent in the fall Why OLLI matters: A personal perspective Southern Oregon University names director of marketing Dianne Williamson: College admissions mania ill-advised Rotary Club of Ashland names Riley O'Sullivan as Student of the Month Environment Mt. Ashland Ski Area to host party March 28 Mt. Ashland hopes coming storm will reopen ski area Wild Side: Selfish and other reasons for saving endangered species Mt. Ashland Ski Area: Low snow closes 'bunny hill' chairlift for beginning skiers With pre-season conditions worst in 25 years, catastrophic wildfires expected in region this summer Business Ride & Drive: 2015 Land Rover Range Rover Evoque Snow hopes dashed, Mt. Ashland Ski Area hosts season-ending party Saturday Iconic Ashland bookstore to celebrate 35th anniversary on April 19 Test Drive: 2015 Honda Accord Cars We Remember: The original Candymatic Ramchargers Politics and elections Jackson County Commissioners plan no tax on marijuana for first year Grassroots group campaigns for Plaza paver do-over Arthur I. Cyr: Iran – a crisis without end Short-term rental restrictions kept in some areas, loosened in others Arthur I. Cyr: South Korea represents long-term triumph – for them and for US State News Oregon's governor appoints new secretary of state Nation - World Obituaries Death Notices Alicia Applegate Hardy Death Notices Rosalind Dee Death Notices Shareable Sports Latest Stories Grizz baseball team caps Arizona trip with another win Ashland Rowing Club hires highly touted coach and national-award winning team director to lead expansion Antionette Kerr: Tourney fever gets superstitious Blazers fight back, edge Jazz Grizzlies rally past Colorado school for Greenway Festival victory High school Grizz baseball team caps Arizona trip with another win Grizzlies rally past Colorado school for Greenway Festival victory Ashland softball team splits pair in second day of Bend tournament Grizzlies rally past GP, to 2-0 start Ashland boys capture another Sato Cup snowboard title at Mt. Bachelor Southern Oregon University Grizz baseball team caps Arizona trip with another win Grizzlies rally past Colorado school for Greenway Festival victory Ashland softball team splits pair in second day of Bend tournament Ducks enjoy the challenge Oregon bows out Voices Latest Stories Letters to the Editor, March 30 Chris Honoré: Some political and social observations Guest Opinion: Ashland council vote on travelers accommodations was less than transparent Herb Rothschild Jr: Failing at charity Philip Maddocks: GOP plan offers hope for poor once they become rich Editorial Our View: Build it; they will play Our View: How it should work Our View: Ashland High principal is the head of her class Our View: Tuition trauma Our View: SOU's economic clout Letters Letters to the Editor, March 30 Letters to the Editor, March 27 Letters to the Editor, March 25 Letters to the Editor, March 23 Letters to the Editor, March 20 Guest opinions Guest Opinion: Ashland council vote on travelers accommodations was less than transparent Guest Opinion: Hannah Thomas-Garner's father thanks the Ashland community Guest Opinion: Ashland is asking for trouble with new room rental rules Guest Opinion: More reasons to oppose Jordan Cove Guest Opinion: It's Groundwater Awareness Week; test your well Columns Chris Honoré: Some political and social observations Guest Opinion: Ashland council vote on travelers accommodations was less than transparent Herb Rothschild Jr: Failing at charity Philip Maddocks: GOP plan offers hope for poor once they become rich Matthew T. Mangino: A clearer picture of police shootings begins to emerge Chris Honore Council Corner Editor's Notes Jeffrey Gillespie Herb Rothschild Revels Latest Stories Top 5 things to do this week Laurie Lewis and Kathy Kallick pay tribute to Arkansas bluegrass duo Vern Williams and Ray Park The Oregon Shakespeare Festival presents Eugene O'Neill's autobiographical 'Long Day's Journey into Night' Community blog: Words, wine and Craig Wright 4 Things To Do This Week Theater Review: From past into present in OSF's 'Long Day's Journey' Ticket availability Ticket Availability Ashland Contemporary Theatre seeks new artistic director Ticket Availability Music Futureshock: Kendrick Lamar release points to road ahead Laurie Lewis and Kathy Kallick pay tribute to Arkansas bluegrass duo Vern Williams and Ray Park Album reviews: Recent and recommended for March The Farr Side: New format for ‘American Idol’ as show continues a strong run Improv rock and folk band hosts a dance party at the Ashland Community Center Visual Art Ashland's First Friday Art Walk showcases new exhiits by regional artists Movies Movie review: In ‘Danny Collins,’ Pacino helps us imagine a Lennon story Noah Baumbach talks Ben Stiller, adult comedies and more In 'Timbuktu,' lust for power disturbs peace Movie review: ‘The Gunman’ misses the target Movie listings: March 20-26 Food and Drink Cruelest Month: Poetry Blog Lifestyle Latest Stories Seven tasks that help prevent hospital readmissions Review: From past into present in OSF's 'Long Day's Journey' Community Blog: What is Peace? Ride & Drive: 2015 Land Rover Range Rover Evoque App Finder: Best barbecue apps Aging Happens Inner Peace Column Inner Peace Blog Rogues: Tales from the Valley Classifieds Jobs Autos Real Estate FEATURED   » Obituaries Photos Videos Blogs Business Business Services NEWS NOW   Medford woman killed in Highway 140 motorcycle crash       ...       Seven tasks that help prevent hospital readmissions       ...       Chris Honoré: Some political and social observations       ...       Medford woman killed in Highway 140 motorcycle crash       ...       Seven tasks that help prevent hospital readmissions       ...       Chris Honoré: Some political and social observations       ...           KITZHABER RESIGNATION Federal investigation of Kitzhaber to focus on potential financial crimes U.S. Attorney's Office looking at extent of Hayes' influence on governor Comment By Martha Bellisle The Associated Press DailyTidings.com By Martha Bellisle The Associated Press Posted Feb. 16, 2015 at 2:00 AM By Martha Bellisle The Associated Press Posted Feb. 16, 2015 at 2:00 AM »  Social News PORTLAND — Legal experts say a subpoena used in a federal grand jury investigation into Oregon's fallen governor and his fiancée indicates that authorities are investigating possible violations of public corruption laws and financial crimes including wire or mail fraud, bribery and tax evasion. The subpoena was sent to the state's administrative agency on the same day Gov. John Kitzhaber announced his resignation. "Typically you don't see this extensive of a subpoena unless it's a top-priority investigation," said Laurie Levenson, a former assistant U.S. attorney who teaches at Loyola Law School in Los Angeles. "It's a pretty extensive investigation. Given that this involves a governor, I would expect this is being supervised at the highest level" and includes the U.S. Department of Justice's Office of Public Integrity, the Internal Revenue Service and the FBI. It may be that the grand jury reviews the material and finds no reason to bring charges, Levenson said. She noted that the authorities used a subpoena to collect records, not a search warrant that would have required a showing of probable cause. But Levenson added: "It's too early to say whether there will be charges, but none of this is good news for the governor." Tung Yin, a professor at Lewis and Clark Law School in Oregon, said a state official, employee or representative is in violation of the federal theft or bribery law if he or she "embezzles, steals, obtains by fraud" government property or corruptly offers anything "with intent to influence or reward" someone in connection with business or government transactions. Mail or wire fraud would kick in if prosecutors could show the crime was played out through email or the postal service. "The theory is that a public official owes the rights of honest service to the public," Yin said. The official breaches that duty if he or she gets a kickback or a bribe. If the governor was to be considered a conspirator, it would require an agreement to commit fraud, he said. "The essence is, the governor would have to know what was going on," Yin said. Kitzhaber, newly elected to an unprecedented fourth term as Oregon's governor, announced on Friday that his last day in office will be Wednesday, at which point Secretary of State Kate Brown will take over and assign her replacement. Kitzhaber's resignation came amid a deepening scandal over allegations that fiancée Cylvia Hayes used the power of his office to land contracts for her green-energy consulting firm. It started with a probe by the Oregon Government Ethics Commission, followed by one by the state attorney general and peaked with a federal government subpoena served the same day Kitzhaber announced he was resigning. The U.S. Congress' Committee on Oversight and Government Reform joined in on Friday with a letter to Kitzhaber demanding that he preserve all documents and communications related to the broken Cover Oregon program. Kitzhaber and Hayes, as well as their lawyers, have not responded to numerous requests for comment. Kitzhaber's only response to the scandal was a lengthy resignation letter in which he emphatically stated that he did not break any laws or do anything "dishonest or dishonorable." The federal investigation is being handled by Oregon Assistant U.S. Attorney Scott E. Bradford, who began his career with the Justice Department's tax division where he prosecuted tax, white-collar and money-laundering crimes. In recent years, he has secured convictions in cases ranging from embezzlement to tax, investment and wire fraud. Both his office and the FBI declined comment on the investigation, saying it's important to conduct them "out of the public eye to ensure a fair process." Rick Drooyan, a former assistant U.S. attorney who specialized in white-collar crime and now is a criminal defense lawyer, said the three-page subpoena reveals the focus of the investigation. "They're looking into whether she used her relationship to cause him to take actions that would benefit her private consulting clients," Drooyan said. The subpoena demands records relating to contracts proposed and bids awarded to Hayes and her company, 3E Strategies, as well as records related to a list of 15 projects, initiatives and action plans that focus on climate and clean energy. It demands travel records, documents showing Hayes' use of state credit cards and the tax returns for Hayes and her company. The subpoena also wants visitor logs to the governor's office and Mahonia Hall, the governor's mansion in Salem. Hayes' biographical information for the National Governors Association describes her as "a policy adviser to Gov. John Kitzhaber on the issues of clean energy and economic development." "The state has a lot of green-energy initiatives, and she's in a position to influence how the government views them — and that could benefit the private clients who are paying her," Drooyan said. The question is, Levenson said, "did he use his influence to help get her these deals? They're inextricably linked. That's what the subpoena suggests." It's possible that Kitzhaber's defense could be he didn't have any personal involvement in Hayes' dealings, Levenson said. In any event, it will likely be months before it is known whether Kitzhaber or Hayes will face charges. By Martha Bellisle The Associated Press DailyTidings.com By Martha Bellisle The Associated Press Posted Feb. 16, 2015 at 2:00 AM » Comment or view comments   Reader Reaction »  STAY INFORMED   Email NewsLetter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with DailyTidings.com Facebook Twitter RSS Back to top Reader Services Reader Services home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Alerts Email alerts RSS feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed   Email newsletter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. 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