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On May 1, the day before Secretary of State Shemia Fagan resigned from office, Fagan pledged to give the remainder of the money in her campaign fund—$11,585—to the Oregon Humane Society.
It was a gesture of apology for taking a consulting contract with Rosa Cazares and Aaron Mitchell, the embattled co-founders of the La Mota cannabis dispensary chain, who had contributed $45,000 to Fagan’s campaign committee both before and after her election. WW’s reporting of that contract launched a scandal that led to Fagan’s resignation May 2.
“I believe the right thing for me to do is redirect as much of their political donations as I have left in my PAC as I’m able,” Fagan told reporters on May 1, the same day she gave up the contract with Cazares and Mitchell. “I’ve decided to empty my PAC and donate its entire balance to the Oregon Humane Society.”
Except Fagan never did. More than a month later, the $11,585 remains with her campaign committee, according to public campaign finance records.
Fagan’s attorney, David Elkanich, declined to comment. He did not respond to questions asking if Fagan still plans to donate that amount, and if not, what else she intends to use the money for.
Other top Democrats that received money from the couple, including Gov. Tina Kotek, Senate President Rob Wagner (D-Portland), Bureau of Labor and Industries Commissioner Christina Stephenson and a host of state representatives all pledged an equivalent amount of money to charity—and gave the money as promised.
WW first asked about Fagan’s relationship with the cannabis couple and the millions in tax liens filed against the owners and their companies on March 24. At the time, Fagan made no mention of her employment with them. “I had no idea about unpaid taxes,” Fagan replied. “You’ll need to direct any financial questions to their company representatives.” On March 29, WW published a story about the couple and the dozens of lawsuits filed against them alleging nonpayment of bills, as well as the tax liens. Still, Fagan did not give up the contract, which was not yet public.
It was not until May 1—once the contract was outed in the media—that Fagan gave up the contract and apologized for taking it.
Federal officials have launched a criminal investigation related to Fagan, Cazares and Mitchell. In May, the U.S. Attorney for Oregon issued subpoenas to five state agencies seeking extensive documentation of Fagan’s travel and campaign expenses, emails and phone records while in office in preparation for a June 21 grand jury proceeding. It’s unclear what crimes federal agents are investigating, or who they think committed them.