Oregon lawmakers may have received rare bourbon. Now the DOJ is investigating

Bottles of Pappy Van Winkle bourbon can sell for thousands of dollars.
Bottles of Pappy Van Winkle bourbon can sell for thousands of dollars.

Some Oregon lawmakers may have gotten exclusive access to rare bottles of bourbon from the Oregon Liquor and Cannabis Commission, according to an internal commission investigation.

But the report doesn't name any names.

Friday, Attorney General Ellen Rosenblum announced the Oregon Department of Justice will open a criminal investigation into the matter. The criminal investigation will look into ethics violations related to the purchase practice by staff of the OLCC "and possibly others."

The OLCC conducted its initial internal investigation following allegations by a former employee that commission staff was getting exclusive access to liquor. Witnesses interviewed said lawmakers also benefitted.

Oregon Gov. Tina Kotek oversees the commission. Her administration referred questions from the Statesman Journal to The Oregon Government Ethics Commission, which oversees legislative behavior.

When asked by the Statesman Journal about whether it was investigating, executive director Ronald Bersin in an email said only that the commission was "aware of the reported situation at the Oregon Liquor and Cannabis Commission."

How it worked

In Oregon, the state controls the distribution of liquor. Records first reported by the Oregonian revealed top leaders at the OLCC used their positions to divert coveted bottles for themselves.

The internal OLCC investigation was launched following a complaint made in April by a former employee saying they had proof that an OLCC leader set aside bottles for higher-ups to pick up.

Six OLCC employees were identified in the report as participating in diverting liquor, including executive director Steven Marks. Others included the agency deputy director Will Higlin; director of distilled spirits Chris Mayton; chief information officer Boba Subasic; director of the office of information services Kai Nakashima and budget director Bill Schuette.

According to the report, officials would ask a distribution manager to divert warehoused liquor for personal gain, violating Oregon statutes, including the prohibition of public officials from using confidential information for personal gain, the commission's investigation said.

The investigation also revealed that, according to Mayton, the practice included state lawmakers.

In an interview with investigators, the distribution manager said the practice had occurred for at least eight years.

What they got

The report did not include a comprehensive list of what may have been acquired, but did include a list of bottles the distribution manager recalls being acquired in the past year. The Statesman Journal added the prices based on the online sales offering of similar bottles, but they can sometimes sell for much higher.

  • Elmer T. Lee Single Barrel, which sells for about $340.

  • Pappy Van Winkle - 10 year, which sells for about $1,000.

  • Pappy Van Winkle - 12 year, which sells for about $1,100.

  • Pappy Van Winkle - 15 year, which sells for about $2,800.

  • Pappy Van Winkle - 20 year, which sells for about $4,000.

  • Pappy Van Winkle - 23 year, which sells for about $5,500.

Fallout so far

Marks had been asked by Kotek to step down earlier this year before her administration became aware of the reported violations, Kotek said in a letter to commissioners.

"This behavior is wholly unacceptable. I will not tolerate wrongful violations of our government ethics laws," Kotek wrote.

She urged the OLCC to remove the managers and leaders who participated and to install new leadership.

Kotek requested Rosenblum conduct an independent civil investigation and recommend stronger protocols to ensure ethics laws are followed by the OLCC. But that investigation is on hold following Friday's announcement of a criminal investigation.

This article originally appeared on Salem Statesman Journal: Oregon lawmakers received exclusive access to rare bourbon