Ethics commission considers higher fine for former OLCC leader involved in bourbon scandal

PORTLAND, Ore. (KOIN) — Government watchdogs are debating the appropriate penalty for the Oregon Liquor and Cannabis Commission’s previous leader’s role in a rare alcohol scandal.

With a 7-1 vote on Friday, the Oregon Government Ethics Commission rejected the $500 penalty proposed for former OLCC Executive Director Steve Marks.

In 2023, an investigation revealed that Marks and five other agency leaders diverted bottles of exclusive bourbon — like the highly-sought after Pappy Van Winkle 23. While records show the leaders paid for the liquor, OGEC Executive Director Susan Myer noted that the act violates Oregon laws prohibiting public officials from using confidential information for personal gain and requiring them to report potential conflicts of interest.

According to the records, Marks purchased one bottle for its listed price of $329.99. Myer noted that the proposed $500 fine stems from the ethics commission’s penalty matrix, which suggests a fine between 1% and 20% of the maximum penalty for such a violation.

OGEC’s executive director noted that she also considered the similar fines imposed for other agency officials. But other members argued that the penalty should be increased for higher-ranking leaders.

“I think another issue is if you’re a top official, you should probably pay a top penalty…” Commissioner Daniel Mason said. “When you refer to the public interest, if it’s known that the head of an agency is getting a financial benefit that potential is greater than the value, then I think it hurts the ethics commission by going with a stipulated agreement that is less.”

The agency’s records show Pappy Van Winkle bottles cost up to $6,500 on online marketplaces from other states, although Marks paid OLCC’s listed price which was just a fraction of that.

His attorney, Bob Steringer, asked commissioners to consider the same fine that was enforced for other public officials. He also noted that diversion of rare liquor began before Marks’ tenure, and claimed the executive director was the first to change that practice when he realized it could spur ethics concerns.

“Our mission is primarily to educate, not to punish,” Commissioner Richard Burke later added. “There needs to be a penalty in a case like this. I think the $500 penalty is reasonable. I also think that part of the penalty is the fact that Mr. Marks — you know he’s had his name in the press regarding this and it’s a political embarrassment. I think he’s been duly educated..”

OGEC will continue to negotiate the fine.