slides: Feds Probe Kitzhaber and Hayes: 10 Things to Know
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Tuesday, February 17, 2015
Joanna Evoniuk, GoLocalPDX Contributor
The Federal Government is now investigation records surrounding John Kitzhaber and Cylvia Hayes, but what does this mean for the outgoing governor and his fiancé?
See Slides Below: Feds Probe Kitzhaber and Hayes: 10 Things to Know
Last Friday, the Oregon Department of Administrative Services received a subpoena from the U.S. Department of Justice and U.S. Attorney Amanda Marshall, just hours after Kitzhaber announced his resignation. The subpoena confirmed earlier reports the FBI were investigating the actions of Kitzhaber and Hayes.
Although the investigation is still in its early stages, criminal defense lawyers weigh in on how federal criminal investigations into corruption usually play out for elected officials.
From the cost of legal fees, to FBI resources, to what charges Kitzhaber or Hayes could face, here are ten things to know about the FBI investigation:
Related Slideshow: Feds Probe Kitzhaber and Hayes: 10 Things to Know
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10.
It Could Cost Millions
Defense fees for a federal investigation will rack up quickly, more so if the investigation turns into a trial.
“The fees can be exuberant. You can’t do one of these cases for less than half a million dollars,” Solomon Wisenberg, a defense lawyer from Washington D.C. said.
These cases can cost around $2 million in legal fees, according to Wisenberg.
For example Robert Urciuoli, convicted in 2008 for federal charges of conspiracy and fraud in a case involving a former Rhode Island state senator, had $2.15 million for legal expenses.
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9.
FBI Resources
The FBI may have years of records to comb through, but they have the resources to do so—much more than a state criminal investigation would.
A federal investigation is given millions of dollars and a vast supply of manpower. Attorneys say the feds also have more expertise and experience in handling corruption investigations.
If there is something to be found, the FBI has the tools and time to look for it.
Photo: FBI Headquarters in D.C.
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8.
FBI Undercover Investigation a Possibility
Although a subpoena was delivered on Feb. 13, it does not mean the FBI has just started looking into Kitzhaber and Hayes. Joel Bertocchi, a white-collar criminal defense attorney in Chicago, said federal investigations often involve an undercover stage in the beginning.
Special agents are often recording information and meeting with people long before subpoenas are issued.
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7.
Mail Fraud, Wire Fraud and Corruption
Experts agree Kitzhaber and Hayes are most likely being investigated for breaking federal statutes of mail and wire fraud, as well as corruption.
Because Hayes may have used government resources for her personal gain, such as not disclosing conflicts of interest while using government phones or email services for her paid contracts and speaking appointments, it would fall under those statues.
Federal statutes have a broader reach of power than state statutes, according to Wisenberg, giving more options for prosecution.
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6.
11 State Departments Subpoenaed
In the subpoena from the U.S. Department of Justice to the Oregon Department of Administrative Services, a number of state departments were listed.
The following eleven departments are believed to have documents or records that are of interest to the investigation:
-The Office of the Governor
-Government Ethics Commission
-Housing and Community Services Department
-Oregon Department of Justice
-Department of State Lands
-Oregon Department of Revenue
-Department of Administrative Services
-Business Development/Business Oregon
-Department of Community Colleges and Workforce Development
-Department of Energy
-Department of Environmental Quality
Photo: Oregon's Department of Administrative Services was served a comprehensive subpoena into outgoing Governor Kitzhaber and his fiancee, Cylvia Hayes.
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5.
Hayes’ Contracts are the Focus of the Subpoena
Records pertaining to Kitzhaber and Hayes, as well as a number of other individuals are listed on the federal subpoena. However, it appears Hayes’ contracts and dealings with energy groups are the focus of the investigation.
Federal investigators are requesting records involving private companies Hayes and 3E Strategies conducted business with, such as Demos and Clean Economy Development Center, as well as government projects Hayes was involved with.
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4.
Feds Focus on Cases They Can Win
If the federal government is moving forward with the investigation, it most likely means they have a strong case.
Like most prosecutors, Bertocchi said federal investigators focus on cases they know they can win.
“I don’t think anybody, unless they were nuts, would seek to charge a recently-sitting governor,” Bertocchi said. “It doesn’t mean they can’t lose, but you have to take them seriously.”
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3.
A Grand Jury Will Decide to Indict Kitzhaber and Hayes
The documents and wittiness gathered by the FBI’s investigation will be presented to a grand jury of 23 Oregonians in a United States District Court.
Proceedings and information from the grand jury are supposed to be kept secret, but Bertocchi said sometimes the information is leaked.
After hearing the evidence, the grand jury will decided whether or not to indict Kitzhaber and Hayes and bring formal charges.
The grand jury will start procedings on March 10, 2015.
Photo: "The Jury" by John Morgan via Wikimedia CC.
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2.
Federal Investigations Tend to Favor the Prosecution
Federal investigations tend to favor the side of the prosecution, according to Wisenberg.
The history of corruption in a state can also impact the jury. Bertocchi said in Chicago, where political corruption is a common theme, juries are more cynical and less likely to give guilty verdicts.
However, it might be the opposite in a state like Oregon, where big-time political corruption is more unusual, Bertocchi said. It is more likley the defense will have more convicing to do.
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1.
It Could Drag on for Years
Even though the grand jury begins hearing evidence in less than a month, the final outcome could be years away. Tom Hagemann, who served as Assistant U.S. Attorney in Los Angeles, said a very document-intensive case like Kitzhaber and Hayes' could drag on.
If criminal investigations and proceedings do last years, it will make it difficult for Kitzhaber and Hayes to move on with their lives, or find a steady job.
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