New records show why FBI, DOJ forced Oregon to end Kitzhaber inquiry

Newly released documents make clear just how uncomfortable FBI and U.S. Justice Department officials were in 2015 when Oregon Attorney General Ellen Rosenblum tried to participate in a joint investigation of former Gov. John Kitzhaber.

Correspondence between leaders at the agencies, obtained by The Oregonian/OregonLive Wednesday in response to a records request originally submitted in 2015, shows federal officials worried about Rosenblum's conflicts of interest, given her duty to represent Kitzhaber's office and other state officials under investigation.

It was clear in early 2015 that federal authorities had forced Rosenblum to halt her investigation of possible influence peddling by Kitzhaber and his fiancée, Cylvia Hayes. But exactly why had been uncertain. Rosenblum, who was then weeks away from announcing a reelection campaign, had refused to explain what happened or when, keeping secret key documents that could yield answers.

The federal investigation finished last week without charges being filed against Kitzhaber or Hayes. On Wednesday, Rosenblum began to release the records she withheld two years ago.

In a Feb. 25, 2015 letter, then-U.S. Attorney Amanda Marshall warned Rosenblum that the state's investigation, which appeared to start in response to a request from Kitzhaber, "could significantly undermine any pending federal investigation."

Marshall noted that the state Justice Department, which Rosenblum oversees, represented Kitzhaber's office and state employees who were being subpoenaed as part of the federal investigation.

"There are too many conflicts of interest for your organization to fully and fairly investigate the allegations," Marshall wrote.

At the time, Oregon State Police were investigating the leak of Kitzhaber's emails to Willamette Week, which is published by Rosenblum's husband, Richard Meeker. Marshall fretted about the state's ability to keep secrets. The leaks "undercut ODOJ's ability to fully and fairly investigate this matter," she wrote, referring to the Oregon Department of Justice.

Marshall's letter shows that Rosenblum's decision to halt the state investigation came days earlier than was disclosed at the time. Amid widespread speculation that the state inquiry had ended, Rosenblum's spokeswoman, Kristina Edmunson, said on Feb. 26, 2015 that the investigation was still open.

That doesn't appear to have been accurate. Rosenblum pledged to end it days earlier.

Marshall wrote that Rosenblum agreed her agency wouldn't move forward at a Feb. 19, 2015 meeting with Marshall and FBI Special Agent Greg Bretzing and in subsequent conversations with Marshall. Rosenblum reiterated her intentions in a Feb. 26 email and sent a formal letter the next day.

In that Feb. 27, 2015 letter to Marshall, Rosenblum put her decision to pause the investigation in writing. "I agree with you that the wisest course at this point is for the Oregon Department of Justice to temporarily defer its investigation into the allegations of misconduct," she said.

Edmunson said Wednesday that "to the best of our recollection, the Oregon DOJ investigation was not suspended" until February 27. "As previously noted," she said, "we had done very little to investigate the case up until that point."

Rosenblum, who didn't respond to an interview request sent through her spokeswoman Wednesday, disagreed about the state's conflict of interest.

"Regardless of whether my office is advising a state agency or pursuing criminal charges, our obligation to uphold the law remains the same," Rosenblum wrote. "Whenever we undertake a criminal investigation – whether or not it involves a state official – we take appropriate measures to ensure the integrity of our case."

Rosenblum reiterated a point that was contentious at the time: She said her investigation had begun before Kitzhaber had requested it. But it hadn't gotten far, she said. "Most of our time has been taken up, understandably, with the logistics of coordination and cooperation," she wrote.

Rosenblum's office formally ended its investigation in February 2017.

What we knew then -- and now -- about the state investigation of Kitzhaber

Feb. 4, 2015: Oregon Attorney General Ellen Rosenblum tells Willamette Week she is reluctant to comment about the growing scandal because she represents the governor's office.

Feb. 5: Rosenblum publicly says she is exploring whether to open an investigation.

Feb. 6: Kitzhaber attorney Liani Reeves tries to schedule a meeting between Kitzhaber and Rosenblum. Deputy Attorney General Fred Boss rejects it. That evening, Reeves tells Boss that Kitzhaber "supports an independent review."

Feb. 9: Kitzhaber formally asks Rosenblum for a full review. Later that day, Rosenblum announces an investigation already began three days earlier.

Feb. 11: Kitzhaber and Reeves meet with Boss and another Oregon Department of Justice attorney, regarding Oracle. Rosenblum does not attend.

Feb. 13: Kitzhaber resigns. A sweeping federal investigation becomes public.

Feb. 17: A Rosenblum spokeswoman says the state is coordinating with federal authorities.

Feb. 19: Rosenblum meets with U.S. Attorney Amanda Marshall

and the FBI

in Portland. Rosenblum says she left with the understanding the state would have a role in a joint investigation.

Marshall says Rosenblum agreed to stop the state's investigation.

Feb. 25: Marshall sends Rosenblum a letter saying that Rosenblum agreed to halt the state inquiry.

Feb. 26: Rosenblum's spokeswoman, Kristina Edmunson, is adamant the state investigation is ongoing despite speculation it is over.

Rosenblum emails Marshall and the FBI confirming the halt.

Feb. 27: Rosenblum

sends a formal letter

suspending the investigation at the request of federal authorities.

March 3: Rosenblum announces her re-election bid.

February 2017: The Oregon Department of Justice ends its investigation of Kitzhaber and his fiancee, Cylvia Hayes, without filing charges.

— Rob Davis

rdavis@oregonian.com

503.294.7657; @robwdavis

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.