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Published 9:26 am Friday, February 27, 2015

SALEM — Oregon Attorney General Ellen Rosenblum announced Friday afternoon that she temporarily suspended an investigation of former Gov. John Kitzhaber and his fiancee Cylvia Hayes, until federal authorities complete their investigation of the couple.

Kitzhaber resigned Feb. 18 amid allegations that he allowed Hayes to use her public position to benefit her consulting business, but he has maintained that he did nothing wrong.

Rosenblum halted the state criminal investigation at the request of U.S. Attorney S. Amanda Marshall and the FBI, according Kristina Edmunson, a spokeswoman for Rosenblum. In exchange, the U.S. Attorney’s Office agreed to share information with the Oregon Department of Justice.

“I reiterate my prior statement that Oregonians deserve a thorough review of the allegations surrounding now former-Governor Kitzhaber and Ms. Hayes,” Rosenblum said in a statement issued Friday. “I fully support the efforts of the federal authorities. We share the ultimate goal of protecting the integrity of our state institutions through a comprehensive investigation.”

Rosenblum said after the federal investigation is complete, DOJ lawyers will “review the facts, and investigate further if necessary” to make sure they address any violations of state law. In a press release, Rosenblum pointed out that Oregon law requires the attorney general to investigate allegations of “public corruption and malfeasance,” in coordination with federal and local law enforcement.

The same day Kitzhaber announced his resignation, the U.S. Attorney’s Office served the state with a broad subpoena for records related to Hayes’ contracts, and Kitzhaber and Hayes’ interactions with officials across 11 state agencies. The Oregonian reported earlier this week the IRS has also joined the investigation.

The EO Media Group/Pamplin Media Group Capital Bureau reported in January that Hayes was paid a total of $118,000 through a fellowship with a nonprofit that had an interest in state policy; other news organizations that had received copies of Hayes’ tax returns subsequently reported that Hayes did not appear to have listed that income on her tax filings.

Hayes and Kitzhaber also face a civil investigation by the Oregon Government Ethics Commission, but that inquiry was placed on hold earlier this year after Rosenblum announced the DOJ was investigating the couple.