Document text
0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories City may aid homeless program Stalking the elusive fisher 'Big Data Revolution' discussed at Tap House Talks 10 things to know for Tuesday Since You Asked: Styrofoam ban raises questions Crime, Courts and Emergency Services Emergency Services, Feb. 17 Emergency services, Feb. 16 Medford porch fire appears intentional, investigators say Emergency services, Feb. 15 Emergency services, Feb. 14 Politics and Elections Gov. Kitzhaber steps down, federal investigation begins Gov. Kitzhaber announces resignation Successor Kate Brown must run for election in 2016 Community leaders saddened by governor's departure Read Gov. John Kitzhaber's statement on his resignation Education A question of punishment Logos to receive a slice of Wes Howard Memorial Sports Park Medford School Board OKs full-day kindergarten Former superintendent sues district, board member Sharing black culture Environment Coho salmon road trip Mt. Ashland Ski Area celebrates snow Company fined for illegally dumping asbestos in White City Solar pavilion going up at Coyote Trails GMO opponents can join Jackson County in defending ban State News Oregon Senate advances low-carbon fuel law Brown says inauguration speech will focus on restoring trust in government Oregon chub first fish to be officially taken off endangered list Day of transition in Oregon Legislature as Kitzhaber's exit nears Federal investigation of Kitzhaber to focus on potential financial crimes Nation - World Obituaries Lynn Ann Latham McCoy Lane Itol A. Downing Grant Edward Cochran Ruth Hoover Kaye Death Notices Weather Photo Galleries Since You Asked Videos Web Cams Mail Tribune 100 Shareable This $1 million Mercedes is like an armored private jet for the road Sports Latest Stories LOCAL REPORT Pitchers, catchers will report this week Questions surround top quarterback prospects Teams mull options as trade deadline nears W. Virginia squeaks by Kansas, 62-61 Varsity 541 College Sports W. Virginia squeaks by Kansas, 62-61 Senior's swan song Afengus, Champion to coach soccer, women's wrestling Harrison, Hendrix homer in OSU loss Raiders end trip with losses at Chico Pro Sports Pitchers, catchers will report this week Questions surround top quarterback prospects Teams mull options as trade deadline nears Blazers content at the halfway point West Side Story Community Sports Local Events Business Latest Stories Blog: An empire built on a plastic-block foundation Ride & Drive: 2015 Nissan GT-R Oregon Retina Specialists will expand into new building Blog: Once Upon A Valentine's Day Medford airport flies past January record Real Estate News Housing prices climb 9 percent in Jackson County Big plans on the Butte Homes for the long haul New owners of Medford Center promise a hands-on approach: People In Business People in Business Transportation Medford airport flies past January record The heart of Brammo will remain Want to be an investor? Four companies will be pitching their plan to you Agriculture 1-800-Flowers dumps Harry & David execs Nine companies pitch investment opportunities in Medford Darigold to shutter Medford plant, putting 29 out of work Opinion Latest Letters to the Editor, Feb. 17 Our View: Independent Party of Oregon faces obstacles Michael Gerson: A call for 'patient pluralism' Landgren cartoon: Snow trouble Landgren cartoon: 50 shades of white Editorials Our View: Independent Party of Oregon faces obstacles Our View: A sad end to a historic career Our View: Time to end the vaccine exemption Our View: Hemp hemp, hooray — old crop is new again Our View: Maintaining a major community asset Letters to the Editor Letters to the Editor, Feb. 17 Letters to the Editor, Feb. 16 Letters to the Editor, Feb. 15 Letters to the Editor, Feb. 13 Letters to the Editor, Feb. 12 Columns Michael Gerson: A call for 'patient pluralism' Kathleen Parker: No excuse for juicing the story Dana Milbank: Remembering the remarkable Kayla Mueller George Will: Curb your pessimism about terrorism Charles Krauthammer: Crusaders and appeasers Guest Opinions Guest Opinion: Weed killers should not be sprayed on streams, homes Guest Opinion: Understanding Wes Cooley Guest Opinion: Smokers: Quit before this happens to you Guest Opinion: Our public school system is a stew pot of clashing ingredients Guest Opinion: How long will we look the other way? Lifestyle Latest stories Carol Link: Prime time for pruning blueberries approaches In Good Faith: Lent Madness 2015: Who will win the Golden Halo? Community blog: It's time to lavish love on heart-healthy lentils 9 new cookbooks prove Southern cooking never goes out of style Food for Thought: Say yes to soy Food Community blog: It's time to lavish love on heart-healthy lentils 9 new cookbooks prove Southern cooking never goes out of style Food for Thought: Say yes to soy Prudence Hilburn: Warm up for winter with soup, chili Kitchen Call: Let winter citrus brighten your meals Home and Garden Carol Link: Prime time for pruning blueberries approaches Home Help: DIY home upkeep projects for every season Now’s a good time to plant a tree Repair or replace your garage door panel? Dear Monty: Hot markets change agent behavior Health Community blog: Your Brain on Love Health Watch: The rise of wearable fitness tech Community blog: Are You Losing or Gaining on Your Investment in Health? Community blog: Simple Solutions Health Watch: Simple swaps for a healthy lifestyle Hiking Biking Faith Religion briefs: Friday, Feb. 13 RELIGION BRIEFS, Feb. 6 Religion News: Church of England consecrates first female bishop Religion briefs Religion briefs, Jan. 23 Milestones and Achievements New arrivals: Sunday, Feb. 8 Columnist for a Day Rogue Healthy Aging Tempo Latest stories Blues Jam at The Little Brown Jug Southern Oregon Jazz Orchestra 'Broadway's Next Hit Musical' SOU presents 'The Glass Menagerie' Soo Rah Korean Cuisine Theater SOU presents 'The Glass Menagerie' Le Cirque presents 'City Walk' 'Seven Brides for Seven Brothers' 'Dames at Sea' opens at Oregon Cabaret Theatre Camelot presents Playwright Richard Manley's 'A Question of Words' Music Blues Jam at The Little Brown Jug Southern Oregon Jazz Orchestra 'Broadway's Next Hit Musical' Live Music in Local Clubs Roy Zimmerman's 'The Faucet's on Fire" Community Events Southern Oregon Rod and Custom Show Ashland's First Friday Art Walk showcases new exhibits by regional artists Jacksonville celebrates Chinese New Year Comedian Susan Westenhoefer pulls no punches Paula Poundstone performs at the Craterian Dining The zwickels shall flow Soo Rah Korean Cuisine Stylish shareables are the feature at Brickroom Sandwiches and burgers are hits at The Rogue Chef The Vine offers a taste of Italy Tempo Videos Classifieds Jobs Autos Real Estate FEATURED » Obituaries Blogs TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Magazines & Special Sections NEWS NOW City may aid homeless program ... Get Up & Go: Tuesday, Feb. 17 ... Our View: Independent Party of Oregon faces obstacles ... City may aid homeless program ... Get Up & Go: Tuesday, Feb. 17 ... Our View: Independent Party of Oregon faces obstacles ... 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 MailTribune.com By Martha Bellisle The Associated Press Posted Feb. 15, 2015 @ 7:32 pm By Martha Bellisle The Associated Press Posted Feb. 15, 2015 @ 7:32 pm » 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 MailTribune.com By Martha Bellisle The Associated Press Posted Feb. 15, 2015 @ 7:32 pm » 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 MailTribune.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 Announcements Obituaries Story ideas Since you asked 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. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501