Former Oregon Secretary of State Shemia Fagan has reached an agreement to pay a $1,600 fine and update her financial disclosures to resolve three ethics investigations linked to her consulting activities and state-funded travel, which led to her resignation in 2023. The Oregon Government Ethics Commission is set to vote on the proposed settlement, which also includes a prior education letter, during its May 9 meeting.
The investigations were initiated after Fagan’s resignation on May 2, 2023, following revelations about her $10,000-per-month consulting contract with a cannabis business while her office was overseeing an audit of the marijuana sector. Allegations included the inappropriate use of state resources for personal expenses.
Fagan stepped down from her position shortly after media reports exposed her consulting role with La Mota, a cannabis company, during an audit of the Oregon Liquor and Cannabis Commission’s oversight.
Governor Tina Kotek called for an ethics review of Fagan and a separate investigation of the audit by the Department of Justice. A report by the Oregon Department of Justice in 2023 suggested that the audit be removed; however, then-Secretary of State LaVonne Griffin-Valade chose not to do so. Current Secretary of State Tobias Read announced on March 13 that he would remove the audit from the database.
Subsequent reporting indicated that Fagan participated in two meetings regarding the audit before recusing herself, with the audit largely completed by that time. The ethics commission’s report concluded that Fagan violated Oregon ethics laws by leveraging her position to secure private employment.
Fagan disputes these findings, arguing that the investigation did not provide evidence of her intent to misuse her public office for personal gain. She maintains that there is “substantial evidence” suggesting she was offered the consulting role for other reasons and that she took precautions to avoid conflicts of interest.
Another ethics investigation concerning her financial disclosures for 2022 and 2023 revealed inaccuracies in reporting her earnings from HKM Employment Attorneys, where she worked prior to her appointment. Fagan has agreed to amend these disclosures.
Additionally, she has consented to fines related to another inquiry into reimbursements for hotel pet fees and costs associated with family members accompanying her on work trips. Although a complaint was lodged regarding five trips, the final report due for discussion on May 9 focuses on two specific trips. One trip involved a driving tour to visit county clerks in eastern Oregon in May 2022, during which she was accompanied by a staff member, her sister, her two children, and the family dog.
The commission’s report indicated that, had the case not been settled, evidence would have likely revealed four ethics violations. Fagan disputes this assertion, claiming that reimbursements were submitted with approval from staff and the deputy secretary of state, and thus she did not knowingly or intentionally breach any rules. She has committed to paying the $1,600 fine by June 30 to resolve the matter.
