OLCC official files lawsuit against Oregon governor

Former Oregon Liquor Control Commission (OLCC) director Steve Marks headed the agency for nearly a decade but was fired in January. Now Marks is fighting back, claiming Gov. Tina Kotek fired him over influence from a cannabis business owner.

According to Willamette Week, Marks recently filed a lawsuit for damages (or a writ against a specific agency to address misconduct and announce plans to sue) in Oregon, alleging that Rosa Cazares, CEO of La Mota, and her partner Aaron Mitchell, who is part of Koteks gubernatorial campaign was involved in the decision that led to his sacking. “Marks was summarily ousted from office by Gov. Tina Kotek in early 2023 because Rosa Cazares, prominent owner of one of Oregon’s largest dispensary chains and opponent of cannabis regulations, wanted to get rid of him,” read Gary’s complaint, filed by attorney William. “Cazares entered into a close relationship with the governor and then Foreign Minister Shemia Fagan.”

Cazares and Mitchell donated $68,000 to Kotek when she ran for governor (she took office in January). They also had a $10,000 monthly contract to fund Fagan — an agreement that led to Fagan’s resignation in May.

Willamette Week added that Kotek has denied having a partnership with Cazares and Mitchell, but Mark’s lawsuit for damages challenges that statement. The case also points to an incident in 2018 in which Cazares and Mitchell were accused of placing 148 pounds of cannabis on the black market. The case has been settled as of 2020, the same year records show Cazares and Mitchell donating funds to various politicians.

“In short, because Marks supported and enforced regulations that Cazares viewed as onerous, she bought his downfall through financial bribery,” the allegation reads. “Under Marks’ leadership, OLCC adopted and enforced the regulatory framework that Cazares wanted to abolish… Accordingly, Cazares turned its attention to removing Marks from office.”

In a letter from Gary, there was no explanation as to why Kotek fired Marks. “Governor Kotek has given no reason – and still has not – why she forced Marks out of office, and Marks was given no further notice or opportunity to challenge the reasons for this action,” Gary wrote.

In May, Kotek told OregonLive that she had fired Marks because she wanted to see new leadership at the helm of the OLCC, but claimed that Cazares and Mitchell “…didn’t influence my decision,” Kotek said. She claimed that replacing Marks was one of the many changes she made when she took office. She also added that she does not support a new state liquor warehouse in Canby, Oregon, proposed by the OLCC that would cost millions of dollars. Under Marks’ leadership, the OLCC spent $84 million on the suretyship for this warehouse, but eventually struck a deal that required the state to pay $40.7 million for 33 acres of the warehouse.

“The freshest thing that came to mind was the new warehouse because when I was campaigning I had quite a few swear words about the deal with this warehouse and I was like, ‘Come on, you’ve been at this for years.’ Eight years and we got a bad deal on that warehouse?” said Kotek. “He was on a list that I think we need a new direction around here.” But she also said she made the decision to fire Marks before she found out about the warehouse deal.

In 2022, as part of an investigation, six OLCC executives (including Marks) were caught setting aside Pappy Van Winkle’s bourbon from Kentucky for themselves. They were all reprimanded and eventually either fired or resigned from their posts.