State ethics panel won’t fine Buehler over ethics violation

(Update: Adding Democratic Party of Oregon reaction)

The Oregon Government Ethics Commission voted Friday to issue a “letter of education” to state Rep. Knute Buehler, R-Bend, but declined to impose any fines or penalties for his failure to list his payments as a St. Charles Health System board member in his annual financial disclosure statement for his first year in office.

Democratic Party of Oregon Director Brad Martin filed a three-part complaint in April had claimed Buehler, an orthopedic surgeon at The Center in Bend, failed to properly report income on his annual statements of economic interest over the past three years, specifically payments from Stryker Corporation and St. Charles Health System. Buehler’s attorney said Buehler had not hidden his consulting services to Stryker, dating back 16 years.

Last month, the ethics panel accepted a staff recommendation and dismissed the first two claims, saying Buehler had not violated state ethics laws. But the agency’s investigators also said they had determined in the third matter that Buehler may have violated state ethics law by not listing his payments as a St. Charles board member.

In the stipulated final order signed last month by Buehler and approved Friday by the panel, Buehler acknowledged violating a state statute by not listing the St. Charles payments, which could have led to a civil penalty of up to $5,000.

Instead, he accepted a “letter of education” in lieu of a civil penalty to settle the matter.

Buehler, who also has amended his state-filed “statements of economic interest” for 2013 to 2015, issued a brief statement Friday welcoming the ethics panel’s decision regarding what he’s referred to as a “clerical error”:

“I am pleased that the ethics commission carefully reviewed these politically motivated claims and dismissed two and declined to issue fines or penalties for the third,” Buehler said.

“This is the appropriate response to an inadvertent paperwork filing error on my part that I have now fixed. I might also point out that this is the same remedy recently issued by the commission to two senior members of the governor’s staff.”

The Democratic Party of Oregon issued this statement:

Democratic Party of Oregon Statement on Oregon Government Ethics Commission’s Action Against Representative Knute Buehler The Democratic Party of Oregon filed an ethics complaint against Representative Knute Buehler in April because he had unreported financial relationships with medical device companies and others in the health care industry that do business with the State of Oregon. For a state legislator to fail to reveal financial payments raises serious concerns at the heart of our state’s ethics laws. The Oregon Government Ethics Commission’s action today reinforces the significance of Buehler’s failure to live up to the letter and spirit of those laws. Buehler broke the law in failing to report income from St. Charles Health System, a contractor with the State of Oregon that also has an interest in legislation, and he has also been forced to amend all of his past Statements of Economic Interest. He now reports thousands of dollars in in additional business investment income not previously disclosed. But Buehler still doesn’t get it. He continues to hide income. While our ethics laws are meant to ensure we know who our elected officials are doing business with and where potential conflicts of interests may exist, Buehler has thumbed his nose at transparency. By hiding fees for consulting through a company based in his home, he is defeating the purpose of reporting requirements. He has received royalties, served as a paid consultant, paid speaker, presenter and paid researcher for multiple medical device companies and suppliers, including Stryker Corporation. These fees are significant and their sources are important for Oregonians to be aware of. In 2014, Stryker paid a $13.2 million fine for violating the Foreign Corrupt Practices Act after paying off government officials in order to gain access to public contracts, according to an investigation by the Securities and Exchange Commission. Buehler’s ties to Stryker date back at least to 2000, and he does not dispute that as a doctor and state legislator he continues to accept consulting payments from the company that go unreported, even after Stryker became a contractor with the State of Oregon. Between 2013 and 2015, Buehler received $67,500 from Stryker. He should not be able to get away with hiding that income from view by forming a separate company to receive those payments. If that doesn’t violate the letter of state ethics law, it certainly violates the spirit of the law. We need legislation, like that introduced in the recently-completed session by Rep. Dan Rayfield, to close the Buehler Loophole. Public officials should not be allowed to use accounting tricks and pass-through companies to hide income that otherwise would be reportable. The DPO will continue to fight for such legislation and we will continue to work to untangle Buehler’s financial relationships and his failure to be transparent.