Oregon Gov. Kotek Knew About Moonlighting Former State Secretary Days Before News Broke

As the dust settles around the recent cannabis moonlighting scandal in Oregon, more details emerge.

What Happened: Oregon Secretary of State Shemia Fagan (D) resigned earlier this month following a public scandal related to the controversial cannabis consultant job she took as a side gig. Prior to that, Fagan terminated her contract with Veriede Holdings, LLC., an affiliate of the troubled marijuana company La Mota.

Amy Margolis, attorney for the dispensary chain under scrutiny from multiple state agencies and owned by Rosa Cazares and Aaron Mitchell, followed suit by resigning from her position as executive director of the Oregon Cannabis Association.  

Now, Oregon Gov. Tina Kotek (D) made headlines for apparently being aware of Fagan's consulting contract in connection with a cannabis business prior to the release of the audit of the Oregon Liquor and Cannabis Commission on April 28.

Kotek's spokesperson Elisabeth Shepard told KOIN 6 News that on April 19, the governor and Fagan convened for their inaugural meeting to discuss legislative session matters and other topics. At the time, Fagan "briefly mentioned she had recused herself from the audit that was being conducted" on the OLCC that was investigating how the agency oversees cannabis businesses in the state, reported various news outlets.

Shepherd added that Kotek was unaware of details of Fagan's business relationship until Fagan was outed by the Willamette Week later that month. The governor "subsequently expressed her deep disappointment and dismay to Secretary Fagan upon learning those details," Shepard said.

Kotek called on the Oregon Government Ethics Commission to investigate Fagan's actions shortly thereafter.

"It is essential that Oregonians have trust in their government," Kotek said back then. "I believe this is a first step [accepting Fagan's resignation] in restoring that trust. During the upcoming appointment process, my office will do everything possible to support the hard-working staff in the Secretary of State's office."

Meanwhile, Koteck Clamps Down On Weed Companies Who Don't Pay Their Taxes 

On Tuesday, Kotek announced that businesses that have neglected their tax obligations would be prohibited from obtaining or renewing licenses to sell marijuana. "This will help ensure that all businesses are operating under the same rules and not getting any competitive advantage if they haven't paid their taxes," the governor said.

According to Willamette Week, the Oregon Department of Revenue has placed more than $1.6 million worth of tax liens against Mitchell, Cazares and La Mota companies since 2018, with a minimum of $621,000 of that amount being attributed to cannabis taxes from 2016.

Photo: Courtesy of Wikimedia Commons