Former Oregon state board director faces $20,000 ethics fine, but he's not here

James Raussen faces a $20,000 fine after an investigation into his conduct as director of the Oregon Educators Benefits Board, a low-profile state entity that purchases insurance benefits for public school teachers. 

The Oregon Government Ethics Commission levied the civil penalties in a 10-count ethics case that began two years ago. The commission issued its final order by default at its November meeting after Raussen failed to appear at an earlier hearing. 

That may have been because he is out of the country.

Raussen, who couldn't be reached for comment, is listed as an executive consultant in Southeast Asia with a background in healthcare and risk management on his LinkedIn profile. 

“It's a large fine compared to what we normally give," said Ronald Bersin, the commission's executive director. "This was the maximum fine they were allowed to give.”

Previous coverage:Head of teacher benefit board resigns while under investigation

The order is the culmination of a case that emerged from Raussen's activities in 2016.

Raussen's violations ran the gamut of unethical behavior, records show. He accepted gifts of food and tickets to sports games from insurance companies that did business with the state, improperly used of a state vehicle to visit Northwest wineries and extended a business trip to Las Vegas for an extra night on the taxpayer's dime, according to the order. 

Details include:

• Five insurance companies treated Raussen to meals at fancy restaurants that exceeded the state's $50 limit on gifts. For example, The Standard, an insurance product company, paid for a meal at Oswego Grill where the average cost per person was $87.80. At another restaurant, the tab averaged $189.62 per person. 
• Moda, another insurance company, paid for a $157 Portland Trail Blazers playoff game in a studio suite with a dinner buffet and alcohol and meals in other restaurants. 
• While on a trip to an evening school district meeting in Pendleton, Raussen arranged for a hotel stay in Walla Walla, Wash. With a state vehicle, Raussen and a subordinate employee went wine tasting in Walla Walla before the meeting and the day after the meeting. 
• On a separate trip to John Day, Raussen made a detour to go wine tasting in Hood River. 
• While traveling to Las Vegas for a conference, Raussen and a subordinate spent an extra night after the conference ended.
• Raussen took 40 hours of time off work without dipping into his vacation time. 

The commission found he used his official position for financial gain and improperly received gifts from companies that have an interest in his decision-making. 

Heidi Williams, the state board's former chief operating officer, also faced ethics accusations because she accepted restaurant meals and went with Raussen to wine tastings and to Las Vegas, records show. Williams contended the extra night in Las Vegas was authorized by her boss. Ultimately, she accepted a written reprimand from the commission in 2017.

As the ethics case progressed, Raussen requested a hearing and contested the matter in August 2017. He didn't attend a pre-hearing conference and subsequent hearing this year, which led to the default order.

Raussen has 60 days to pay the penalty or appeal the order, which the commission approved Nov. 2. The case began in 2016, when Raussen was placed on leave and resigned after less than a year at the board's helm. 

Raussen hasn't filed any notice of appeal, Bersin said. If there is no appeal and the penalty is unpaid, it's assigned to the Oregon Department of Revenue for collections.

In general, the Department of Revenue can take steps to collect the money, such as putting liens on property and assets in Oregon and garnishing U.S. bank accounts, Revenue Department spokesman Rich Hoover said.

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Contact reporter Ben Botkin at bbotkin@StatesmanJournal.com, 503-399-6687 or follow him on Twitter @BenBotkin1