The Oregon Secretary of State (SOS) will resign from her position over a conflict-of-interest scandal.
According to reports, SOS Shemia Fagan (D) worked as a consultant for La Mota while regulating the state cannabis industry.
La Mota is a cannabis dispensary chain in Oregon, with an extensive history of controversy, according to The Post Millenial (TPM).
Fagan, a single mother of two, says she took the consulting job to supplement her $77,000 SOS salary.
According to the report, Fagan could receive $30,000 bonuses for helping La Mota obtain licenses in other states.
Willamette Week reports that La Mota owners Rosa Cazares and Aaron Mitchel owe millions in federal and state taxes.
According to TPM, Mitchell and Cazares are also top controversial Democrat donors.
“Despite bringing in more than $40 million in annual revenue, Cazares and Mitchell have been in legal trouble after the Oregon Department of Revenue issued tax liens of more than $1.6 million since 2018,” reports TPM. “The pair also owes $1.4 million for nonpayment of personal income and employment taxes to the IRS, which the federal government placed liens on them in March and November of last year, the outlet reports.”
A Conflict of Interest
An audit on April 28 revealed an impending crackdown on the state’s cannabis industry, which Fagan helped regulate as SOS.
The audit urged the Oregon Liquor and Cannabis Commission to overhaul industry rules for cannabis businesses.
TPM reports that Fagan’s spokesman, Ben Morris, said Fagan recused herself from the audit because of her consulting for La Mota.
But at a Monday press conference, Fagan said she did not believe her consulting work constituted a conflict-of-interest.
Fagan said the audit would be from the governor, cannabis commission, and legislature, and Oregon’s ethics guidelines allow for other employment options.
Still, Fagan addressed the controversy and apologized.
“I am sorry for harming the trust that I and so many other have worked so hard to build with you over the past few years,” said Fagan. “I will begin working to build that trust back today.”
The Oregonian Editorial Board says that Fagan’s actions weren’t just a lapse in discernment but signs of a deeper problem.
“This isn’t poor judgement—these are ethical failures from an elected official who feels entitled to put her needs above the public’s,” writes the Board. “While Gov. Tina Kotek has called for investigations into Fagan’s contract and the audit, Fagan should resign immediately and clear the way for a replacement who can restore the trust that Fagan has undermined.”
Yesterday on Twitter, journalist Andy Ngô reported that Fagan is under investigation for her conflict-of-interest.
Oregon’s second-in-line state official @OregonSOS is revealed to have been paid tens of thousands of dollars from Democrat power donors who run the state’s largest marijuana company. Her office is tasked with regulating their industry. https://t.co/MRNVNOy61c
— Andy Ngô ?ﾸﾏ? (@MrAndyNgo) May 3, 2023
TPM reports that Fagan announced on Monday that she had resigned from her $10,000-a-month consulting job.
Fagan will also resign as SOS, effective May 8.