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The hotelier and former GOP political money man Mark Hemstreet is near the top of a newly released list of people and companies who owe the Oregon Department of Revenue more than $50,000.
Hemstreet’s total, $3.59 million, is the fifth-largest figure on the searchable list (scroll down to tools and click on “delinquent taxpayer link), which the DOR released July 14. His wife, Shannon Hemstreet, is also among the largest debtors, owing the state an additional $716,000. And one of Hemstreet’s companies, Shilo Management Corporation, owes $393,000.
That’s a lot of money but only a fraction of the biggest number on the list: $27 million owed by American Patriot Brands, a Medford cannabis company. In the second spot: the $19.3 million that Michael A. Malekzadeh owes. The federal Securities and Exchange Commission charged American Patriot Brands and its executives with fraud earlier this year. The U.S. Department of Justice charged Malekzadeh, a Eugene athletic shoe reseller, with a variety of crimes last year.
Also on the list is Lori Deveny, a sticky-fingered personal injury lawyer who stole her clients’ legal settlements and ended up in prison. She owes the state $584,000.
Hemstreet is the founder of the Shilo Inn chain, which continues to operate numerous properties around the West. As WW reported earlier this year, Hemstreet surrendered his position two decades ago as the leading funder of GOP candidates and causes in Oregon and also began a pattern long ago of nonpayment of state and federal taxes.
Related: Shilo Inns Founder Mark Hemstreet Owes More Than $20 Million in Back Taxes
Earlier this year, one of Hemstreet’s attorneys, Charles Markley, told WW that various tax liens filed against Hemstreet “are being handled by Mr. Hemstreet’s professional tax accountant and tax attorney to pay and resolve in the near future.”
The state of California has long publicized a list of delinquent taxpayers. Oregon briefly did so a few years ago and started again following the passage of Senate Bill 523 in 2019. The DOR delayed implementation of the disclosures during the pandemic and then, when it decided to move forward, gave everybody on the list nearly two months’ notice before posting the data, which runs to 20 pages.
“Publishing such a list is a commonly used tool among many states,” said Deanna Mack, DOR’s collections division manager. “This complements existing compliance efforts, such as audits, filing enforcement, and collection activity that ensures Oregon receives revenue the state counts on.”
Of note on the list: the large number of cannabis industry debts. WW has reported extensively on the travails of one of the largest companies, La Mota (which isn’t on the list, possibly because the outfit controls more than 70 limited liability companies), but there are many others on the DOR’s list, including $3.6 million owed by Troy Duzon, a Salem cannabis entrepreneur. Late or nonpayment of cannabis taxes, as state economists have noted, imperils funding for substance abuse treatment services mandated by Measure 110.