The investigation, first reported by The Oregonian, follows ethics concerns surrounding her work with La Mota, a local cannabis company, while in office, officials confirmed to KOIN 6 News on Monday.
A spokesperson with the Oregon Department of Justice told KOIN 6 News it is their understanding that the federal investigation is closed, noting the state agency was not involved in the investigation.
Additional details about the federal investigation were not immediately available.
In 2023, federal investigators requested records related to Fagan and La Mota owners Aaron Mitchell and Rosa Cazares, the Oregon Liquor and Cannabis Commission told KOIN 6.
The U.S. Department of Justice sent subpoenas to Oregon’s Department of Administrative Services, Department of Revenue, Government Ethics Commission, OLCC and the Secretary of State’s Office.
The federal investigation came after Fagan resigned from her position following ethical concerns sparked by her paid consulting contract for Veride Holding LLC – an affiliate of La Mota — while her office was auditing the OLCC.
The former secretary voluntarily recused herself from the audit, which looked into the OLCC’s regulation of the state’s cannabis industry and concluded that Oregon’s laws are hindering cannabis businesses.
Following the controversy, Fagan held a press conference and said she “terminated my contract” with the marijuana company.
“I owe the people of Oregon an apology,” she said. “I exercised poor judgment by contracting with a company that is owned by my significant political donors and is regulated by an agency that was under audit by my Audits Division. I am sorry for harming the trust that I’ve worked so hard to build with you over the last few years…”
The U.S. Attorney’s Office for the District of Oregon declined to comment on the federal investigation.
KOIN 6 News has reached out to an attorney representing Fagan. This story will be updated if we receive a response.
Stay with KOIN 6 News as this story develops.
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