Two disgraced employees of the Oregon Liquor and Cannabis Commission were commanded to pay a $500 fine for their involvement in a rare bourbon scandal which began in 2023. The Oregon Government Ethics Commission (OLCC) voted 5-0 to punish budget director Bill Schuette and former information services director Jon-Kai Nakashima, among others, for using their positions to obtain exclusive access to rare bottles of bourbon.
For context, many conservatives are concerned about how many bureaucrats in blue states use their positions of power to enrich themselves at the expense of normal Americans. Cases such as that one emphasize the vital importance of agencies like the Department of Government Efficiency (DOGE), which seek to root out government fraud.
In any case, as the scandal broke, the fraudsters faced calls from local politicians to resign. For instance, Gov. Tina Kotek asked then-executive director Steven Marks to resign for his involvement in the bourbon racket. Kotek stated, “This behavior is wholly unacceptable. I will not tolerate wrongful violations of our government ethics laws.”
During the investigation, the authorities determined that the fraud ring broke multiple laws. Describing their findings, the investigators wrote, “The Commission contends that the results of the Commission investigation, if submitted through exhibits and testimony at a contested case hearing, would establish a preponderance of evidence in support of a post-hearing order to find one violation each of ORS 244.040(1), ORS 244.040(4), and ORS 244.120(1)(c).”
Despite the widespread outrage, the Oregon Department of Justice declined to pursue criminal charges. In a document from May 14, 2024, the DOJ wrote, “Enclosed for your review is a report prepared by the Oregon Department of Justice’s Criminal Justice Division summarizing its investigation into allegations that employees of the Oregon Liquor and Cannabis Commission (OLCC) improperly used their positions and special knowledge to obtain in-demand bottles of liquor,” adding, “As detailed in the report, we have concluded that criminal charges are not warranted.”
Explaining its position, the DOJ clarified, “I want to emphasize that this report is limited to our investigation into possible crimes and does not separately address whether the conduct of any OLCC employee violated Oregon’s civil ethics laws. To the extent allowed by law, documents and reports resulting from our
extensive criminal investigation will be available to the Oregon Government Ethics Commission
for consideration in its pending review of ethics complaints related to this matter.”
Describing solutions to prevent this corruption from occurring again, the document stated, “With respect to protocols to ensure employees adhere to their ethical obligations, we are aware of, and support, the OLCC’s decision to adopt a policy prohibiting employees from setting aside liquor for their own purchase. We also support providing training to OLCC employees regarding their ethical obligations on an ongoing basis.”
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Concluding the document, the Oregon authorities explained that there was not enough evidence to pursue a conviction. The document stated, “Because our role is to consider whether criminal charges are provable and appropriate, we are bound by the rules and standards associated with a criminal prosecution. In light of our responsibility to prove each element of a criminal offense beyond a reasonable doubt and the sufficiency of the evidence currently available to us, we have determined that criminal charges are not warranted.”