Cylvia Hayes agrees to pay $44K to settle ethics case

More than a year after Oregon’s ethics watchdogs found Cylvia Hayes guilty of 22 violations for misusing a public position for personal gain, the Bend resident and former first lady has agreed to pay a $44,000 settlement of the case.

The Oregon Government Ethics Commission will take up a stipulated final order resolving the case at their meeting in Salem on Thursday.

In it, Hayes, who also has been in recent bankruptcy proceedings, agrees to pay a civil penalty of $44,000 to “in order to settle and compromise this matter.”

The ethics commission could have imposed penalties of up to $5,000 per violation, for a total of $110,000.

“Ms. Hayes indicated that she wishes to conclude this matter by not contesting the ultimate violations in this order, without admitting liability,” the order she signed on Jan. 18 states.

In exchange, the ethics panel would release, settle and compromise any claims that could have been assisted against Hayes — and she, in return, “will initiate no claims litigation or other action against the commission as a result of these proceedings.”

Hayes, whose fiance’ John Kitzhaber was elected in 2010 and resigned in 2015, earned more than $200,000 during his tenure as a paid advocate for green energy and economic policies, as she served as an unpaid but official policy adviser to the governor.

But the state panel’s investigation found that she failed to comply with the disclosure provisions in conflict of interest law “that could or would financially impact herself or her business.” The commission accepted those findings in January 2018.

“Ms. Hayes maintains that she sought legal advice from the governor’s legal counsel and followed that advice,” the settlement states, and also “maintains that she did not intentionally use her permission” to advance her interests or those of her company, 3E Strategies.

The ethics panel said he made no finding that she had, but that “such intent is not a necessary element” of state statute.