Feds subpoena records pertaining to departing Oregon gov.

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Feds subpoena records pertaining to departing Oregon gov.
FILE - In this Jan. 12, 2015 file photo, Oregon Gov. John Kitzhaber kisses fiancee, Cylvia Hayes, after he is sworn in for an unprecedented fourth term as Governor in Salem, Ore. Big political scandals are rare in Oregon, but there's a huge one swirling around Kitzhaber and Hayes as she faces allegations that she used her access to the governor's office to secure contracts for her consulting business and that she hasn't reported all of her income to tax authorities. (AP Photo/Don Ryan)
Cylvia Hayes, fiancee of Oregon Gov. John Kitzhaber, cries as she speaks at a news conference in Portland, Ore. on Thursday, Oct. 9, 2014. Hayes has admitted that she violated the law when she married an immigrant seeking to retain residency in the United States. She said she was "associating with the wrong people" while struggling to put herself through college and regrets her actions. (AP Photo/Gosia Wozniacka)
John Kitzhaber, governor of Oregon, waits from the start of a roundtable meeting titled 'Insourcing American Jobs' in the Eisenhower Executive Office Building in Washington, D.C., U.S., on Wednesday, Jan. 11, 2012. Obama said he'll propose new tax incentives to reward companies that invest in U.S. expansion or bring back jobs from overseas and urge elimination of tax breaks to companies that move jobs outside the country. Photographer: Joshua Roberts/Bloomberg via Getty Images
Oregon Gov. John Kitzhaber answers questions during a news conference Friday, Jan. 30, 2015, in Portland, Ore. Kitzhaber said that legitimate questions have been raised about his fiancee's taxes after newspaper reports that income from a renewable energy group didn't appear on her tax returns. The Democratic governor said he and Cylvia Hayes file taxes separately, and he would not discuss hers. (AP Photo/Gosia Wozniacka)
Oregon Gov. John Kitzhaber speaks during a legislative forum at the Capitol in Salem, Ore., Tuesday, Jan. 27, 2015. Kitzhaber and legislative leaders outlined their priorities for the 2015 legislative session at a Capitol forum organized by The Associated Press. (AP Photo/Don Ryan)
FILE - In this Jan. 12, 2015 file photo, Oregon Gov. John Kitzhaber, middle, is joined by his fiancee, Cylvia Hayes, as he is sworn in for an unprecedented fourth term by Senior Judge Paul J. De Muniz in Salem, Ore. Big political scandals are rare in Oregon, but there's a huge one swirling around Kitzhaber and Hayes as she faces allegations that she used her access to the governor's office to secure contracts for her consulting business and that she hasn't reported all of her income to tax authorities. (AP Photo/Don Ryan, file)
In a Tuesday Sept 16, 2014 photo, Dennis Richardson poses for a photograph in downtown Portland, Ore. A generation of Oregonians has never lived under a Republican governor, and state Rep. Dennis Richardson would like to show them what it's like. He is trying to unseat incumbant Democratic Gov. John Kitzhaber. (AP Photo/Steve Dykes)
Gov. John Kitzhaber addresses a question during the second of five Oregon gubernatorial debates with Republican challenger Rep. Dennis Richardson, R-Central Point, in Sun River, Ore. on Friday, Sept. 26, 2014. (AP Photo/Timothy J. Gonzalez)
Cylvia Hayes, fiancee of Oregon Gov. John Kitzhaber, speaks at a news conference in Portland, Ore. on Thursday, Oct. 9, 2014. Hayes has admitted that she violated the law when she married an immigrant seeking to retain residency in the United States. She said she was "associating with the wrong people" while struggling to put herself through college and regrets her actions. (AP Photo/Gosia Wozniacka)
Oregon Gov. John Kitzhaber and his companion Cylvia Hayes, walk beside the high-speed train as they arrive visit to Tianjin, China, Tuesday, Sept. 20, 2011. (AP Photo/Andy Wong)
FILE -In this Oct. 10, 2014 file photo, Oregon Gov. John Kitzhaber makes a statement before his gubernatorial debate with Republican challenger Dennis Richardson in Portland, Ore. Big political scandals are rare in Oregon, but there's a huge one swirling around Kitzhaber and fiancee Cylvia Hayes, as she faces allegations that she used her access to the governor's office to secure contracts for her consulting business and that she hasn't reported all of her income to tax authorities. (AP Photo/Don Ryan, file)
Oregon Governor John Kitzhaber speaks onstage at the Oregon Consular Corps 'Celebrate Trade' event at the Portland Art Museum, Portland, Oregon, USA on 19 May 2014. (Photo by Anthony Pidgeon/Redferns)
Governor John Kitzhaber (R) chats with Commerce Secretary John Bryson before the start of a roundtable discussion on 'Insourcing American Jobs' January 11, 2012 at the Eisenhower Executive Office Building, next to the White House, in Washington, DC. AFP PHOTO/Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
Oregon Gov. John Kitzhaber speaks during a legislative forum at the Capitol in Salem, Ore., Tuesday, Jan. 27, 2015. Kitzhaber and legislative leaders outlined their priorities for the 2015 legislative session at a Capitol forum organized by The Associated Press. (AP Photo/Don Ryan)
Oregon Gov. John Kitzhaber speaks during the annual Oregon Business Summit in Portland, Ore., Tuesday, Jan. 6, 2015. The state's business community has outlined a legislative wish list centered on improvements in education, infrastructure and natural resource policy. (AP Photo/Don Ryan)
FILE - In this Jan. 12, 2015 file photo, Oregon Gov. John Kitzhaber escorts his fiancee, Cylvia Hayes, onto the House floor before he is sworn in for an unprecedented fourth term as Governor in Salem, Ore. Kitzhaber announced his resignation Friday, Feb. 13, 2015, amid allegations Hayes used her relationship with him to enrich herself. (AP Photo/Don Ryan, file)
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SALEM, Ore. (AP) - Oregon Gov. John Kitzhaber announced his resignation Friday over a deepening influence-peddling scandal surrounding his fiancée and on the same day the U.S. Attorney's Office issued a subpoena demanding records and electronic communications pertaining to the pair.

The subpoena was the first acknowledgment of a federal investigation against Kitzhaber and Cylvia Hayes. It marks yet another turn in a scandal that brought down Oregon's longest-serving chief executive.

Kitzhaber's resignation, which is to take effect Wednesday, cleared the way for Secretary of State Kate Brown to assume Oregon's highest office and become the nation's first openly bisexual governor.

Kitzhaber insisted he broke no laws.

"Nonetheless, I understand that I have become a liability to the very institutions and policies to which I have dedicated my career and, indeed, my entire adult life," he said in a statement.

The announcement of the planned resignation capped a wild week in which Kitzhaber seemed poised to step down, then changed his mind, but ultimately bowed to calls from legislative leaders that he quit.

It's a stunning fall from grace for a politician who left the governor's office in 2003 and then mounted a comeback in 2010 and returned to his old job.

"This is a sad day for Oregon. But I am confident that legislators are ready to come together to move Oregon forward," said Brown, also a Democrat. Unlike most states, Oregon does not have a lieutenant governor. The secretary of state is next in line to succeed the governor.

The subpoena - served on the state Department of Administrative Services - demands records not just pertaining to the pair, but also to 15 others. They are people involved with the Kitzhaber administration and with companies Hayes did business with as a consultant while she was also working as an adviser to the governor.

The subpoena orders the agency to produce documents for a federal grand jury before March 10.

A spokesman for the agency, Matt Shelby, said the subpoena was received Friday afternoon. He said the agency would provide whatever requested records are in its possession.

The Oregon attorney general, a Democrat like Kitzhaber, said she planned to continue a criminal investigation of the governor and Hayes.

The subpoena seeks records pertaining to 15 other people besides Kitzhaber and Hayes. They include Kitzhaber's chief of staff, policy advisers, Kitzhaber's lawyer and secretaries.

The records to be turned over include those on contracts awarded to Hayes, records of payments, minutes of meetings and other material.

In addition to the written statement, Kitzhaber released audio of himself reading from it. At the end, his voice trembled, and he seemed to choke back tears.

His statement was defiant, saying it was "troubling" that "so many of my former allies" had chosen to "simply accept" that he had done something wrong, probably referring to other Democrats who did not come to his aid as pressure grew.

Kitzhaber called Brown back to Oregon from a conference in Washington, D.C., earlier this week. People close to Kitzhaber say he asked her to return after deciding to resign but then changed his mind. That led to a Wednesday meeting between Kitzhaber and Brown that she described as "strange."

By Thursday, the leaders of the state House and Senate said he had to go. Other top officials in the overwhelmingly Democratic state also said Kitzhaber should resign.

"I finally said, 'This has got to stop,'" Senate President Peter Courtney said after he met with Kitzhaber.

Kitzhaber handily won re-election in November to a fourth term after surviving the botched rollout of Oregon's online health care exchange.

But the allegations surrounding the work of his fiancee were more damaging, dominating headlines in the state following his victory.

A series of newspaper reports since October have chronicled Hayes' work for organizations with an interest in Oregon public policy. At the same time, she was paid by advocacy groups and played an active role in Kitzhaber's administration, a potential conflict of interest.

The spotlight on Hayes led her to reveal that she accepted about $5,000 to illegally marry a man seeking immigration benefits in the 1990s. Later, she admitted she bought a remote property with the intent to grow marijuana.

A fiercely private person, Kitzhaber has been forced to answer embarrassing and personal questions about his relationship. In response to questions at a news conference last month, Kitzhaber told reporters that he's in love with Hayes, but he's not blinded by it.

Kitzhaber, 67, met Hayes, 47, before the 2002 election, when he was governor and she was a candidate for the state Legislature. She lost her race, but they later reconnected after Kitzhaber's term ended.

Hayes used the title "first lady," though the couple never married, and she took an active role in his administration. They were engaged last summer.

Before the health care debacle, Kitzhaber had racked up a series of successes.

The former emergency room doctor persuaded lawmakers to overhaul the state Medicaid system, then persuaded the Obama administration to give Oregon $2 billion to implement it. He spearheaded cuts to retirement benefits for public employees, despite being elected with considerable help from unions whose members lost out.

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