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Eden Villalovas, Breaking News Reporter


NextImg:Gov. Kotek aware of Secretary of State Fagan’s cannabis contract before audit went public


Earlier this month, Shemia Fagan resigned as Oregon's secretary of state following the public release of her ties to an embattled cannabis company she was auditing.

Gov. Tina Kotek (D-OR) reportedly knew of Fagan's activities eight days before the controversy hit the press.

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Kotek and Fagan met on April 19 for a meeting to “discuss the legislative session and other topics unrelated to cannabis,” Kotek’s spokesperson told the Oregonian.

During that conversation, Fagan “briefly mentioned” she had bowed out from the audit that was still in process “due to a consulting contract,” spokeswoman Elisabeth Shepard said in an email to the Oregonian. Kotek claimed she was unaware of the details until the story broke in the news.

On March 29, the Willamette Week broke the story of Fagan’s connection to La Mota, the second-largest cannabis dispensary chain in Oregon. The investigation disclosed the company gave over more than $200,000 to the state’s top Democrats, including $45,000 to Fagan.

In the following days, the publication received another tip about Fagan, setting the controversy into full swing. In late April, it was revealed that Fagan signed a contract with Veriede Holding LLC, whose principals are Rosa Cazares and Aaron Mitchell, the owners of La Mota.

Records reported by the Oregonian in May show that shortly after Fagan took office, the secretary of state supposedly shared the audit proposal with La Mota cannabis chain co-owner Cazares prior to its publication.

The Oregonian said emails between the two included a proposed title for the audit by Cazares, “Effectiveness and equity of OLCC licensing and compliance.” That wording can be found in the final audit.

Fagan left office on May 8. Her office released a statement saying she’s "confident" that an ethics investigation will show that she followed the law and ethical guidelines. It also said she acknowledges her “actions have become a distraction.”

“Protecting our state’s democracy and ensuring faith in our elected leaders — these are the reasons I ran for this office,” Fagan said in the statement. “They are also the reasons I will be submitting my resignation today.”

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Under state law, Kotek has to choose Fagan’s replacement. Kotek said in a May 9 press release that she’ll wait until after the May 19 elections so as not to “distract from the important work of the staff in the Secretary of State’s office and the elections team who are working to ensure the election goes smoothly.”

Deputy Secretary of State Cheryl Myers has been acting as secretary of state in the short term. Her temporary rise was announced in a press release by Kotek earlier this month. Now that the special election has passed, pressure is on Kotek to select a permanent nominee before the regularly scheduled secretary of state election in November 2024.