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Home · Articles · News · Politics · Not Paying His Dues
September 14th, 2011 NIGEL JAQUISS | Politics
 

Not Paying His Dues

Labor Commish Brad Avakian, now running for congress, has a record of paying taxes late—and hitting up lobbyists for a job.

news1_bradavakian_3745Labor Commissioner Brad Avakian - IMAGE: Rick Bowmer, AP
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Tags: brad avakian
Oregon Labor Commissioner Brad Avakian may be the toughest candidate to beat in the 1st Congressional District special election to replace U.S. Rep. David Wu (D-Ore.).

Avakian brings a robust political résumé to the contest—five years in the Oregon Legislature and nearly four more in statewide office enforcing civil rights and wage laws. The 50-year-old lawyer had already declared his intention to take on the seven-term incumbent Wu in the 2012 Democratic primary before Wu resigned last month.

Avakian’s aggressive stance has given him an edge over his two principal opponents, state Rep. Brad Witt (D-Clatskanie) and state Sen. Suzanne Bonamici (D-Beaverton), who later joined the race. Avakian—in his initial fundraising report—raked in $195,000, a strong showing.

Allies say Avakian has done well as labor commissioner, a low-profile political office charged with overseeing apprenticeship programs, pursuing deadbeat employers and enforcing civil rights laws. 

“Brad has done a superb job,” says former Secretary of State Bill Bradbury, who’s endorsed Avakian. “He has done a marvelous job of paying attention to all of those issues.”

But Avakian also faces questions about his personal finances and his ethical judgment. 

While a legislator in 2005, Avakian asked lobbyists to help him find a job, sending them an email request with his résumé attached, according to records obtained by WW.

Records show Avakian twice failed to pay his taxes, in one case incurring a $13,000 federal tax lien. The Oregon State Bar briefly suspended his license when he failed to pay his bar dues. And four creditors have sued him over unpaid bills—including a creditor who took him to small claims court last year after he failed to pay a medical bill.

Avakian tells WW he doesn’t recall writing the email to lobbyists. But he does recall telling lobbyists and Portland lawyers he was closing his law firm and looking for other opportunities, and he says he sees no problem with doing so. He says he doesn’t recall the details of the court cases but acknowledges running into financial trouble in the past—including when he had his wife, Debbie, on his legislative payroll at $4,500 a month, as he did in 2005.

He says he’s made good on all his past debts.

“Debbie and I have had some really good times and struggled at some times,” Avakian says.  “A lot of people I’ve helped have hard times, too.”

An Eagle Scout, Avakian grew up in Aloha and wrestled at Oregon State (as a svelte 151-pounder), where he earned a psychology degree. He counseled juvenile offenders for four years before enrolling at Lewis & Clark Law School. He practiced law in Portland for 15 years, for a time as  partner with ex-Portland City Commissioner Jim Francesconi.  Avakian lost a 1998 state Senate race but then won a House seat representing Beaverton in 2002. He claimed a vacant Senate seat four years later. 

Avakian chaired the Senate Environment Committee and led the passage of Oregon’s nationally recognized renewable energy standard, which calls for 25 percent of electricity to come from renewable sources by 2025. 

He says his candidacy is a logical step in a career characterized by an ability to bring diverse groups together for a common goal—whether pushing through Oregon’s renewable energy standard or finding common ground on civil unions, both of which he helped do in 2007.

“The 1st Congressional District is my home and where I grew up,” Avakian says. “Currently in Washington, campaigns never end. What I’ve shown throughout my career is when the race is over, I have the ability to forget campaigning and govern.”

Avakian considered running for governor and attorney general before launching a campaign for secretary of state in 2008.  He was running far back in a four-way primary race when Labor Commissioner Dan Gardner resigned. Then-Gov. Ted Kulongoski named Avakian to fill the post.

As labor commissioner, Avakian has had a few high-profile cases, including an investigation into sexual harassment allegations against John Minnis, a former legislator and chief of the state’s police training and standards agency. And he has taken on the Typhoon! restaurant chain for allegedly mistreating Thai chefs.

His agency also chases down deadbeat employers who have failed to pay their workers. The Oregon Bureau of Labor and Industries conducts more than 5,000 workplace investigations a year, and on Avakian’s watch has recovered more than $11 million for workers who got stiffed.

Avakian hasn’t always paid his own bills promptly, however. Records show a collection agency sued Avakian in Washington County court last year over $461 he owed to the Portland Clinic.

In 2005, creditors sued Avakian in small claims court: twice in Multnomah County and once Marion County. No claim was for more than $800. In each case, the bills had gone unpaid for so long they had been turned over to collection agencies.

In 2003, the Oregon State Bar briefly suspended Avakian’s license for failing to pay his bar dues. A spokeswoman for the bar declined to say how frequently that happens, but lawyers say the bar sends numerous requests for payment prior to suspension.

Avakian was outspoken in his support for higher funding for K-12 education as a lawmaker. In 2010, he supported Measures 66 and 67, two state tax increases voters passed. 

Records show Avakian hasn’t always paid his own taxes on time. In 2005, the Internal Revenue Service filed a $13,120 lien against Avakian for unpaid federal income taxes. 

Avakian says the lien dated back to 2002, when he was focused on politics rather than his law practice. He fell behind on a payment plan, the IRS issued a lien, and he refinanced his house to pay it off.

Washington County records show that Avakian failed to pay his property taxes of about $4,000 in 2006. He paid them seven months late, incurring interest charges of about $500. 

Avakian says he has no recollection of that omission but thinks it might have been related to a snafu at his mortgage company, which was supposed to include his taxes in his monthly payment. “As soon as we found the taxes weren’t being paid, we made sure the balance was made up,” he says.

Jim Moore, a Pacific University political science professor, says Avakian’s repeated failure to pay his bills is concerning. 

“It looks like a pattern,” Moore says. “And the pattern becomes troubling because he is holding businesses and taxpayers to a standard that he has trouble meeting himself.”

Moore notes Avakian is hardly the first politician who has struggled financially.  The danger, Moore notes, is that cash-strapped politicians have often leaned on lobbyists and others for financial favors.

“It may be that he’s just somebody who has trouble making his private finances work,” he says.

Avakian says the difference between his current BOLI salary—$72,000—and a congressman’s $174,000 salary was not a factor in his decision to run. As a lawmaker, Avakian was vocal about the hardship of serving in Salem; legislators now get about $21,000 annually, plus $105 per day when in session. 

At the end of the 2005 session, he sent an email from his personal account seeking lobbyists’ help in landing a job. 

“Now that the session has ended, I have decided not to return to my employment/business law practice,” Avakian wrote in August 2005. “Instead, I am looking to make a transition now to something else, legal or administrative.  If you come across any opportunities, please give me a call at [Avakian’s phone number]. Attached is a résumé which you may feel free to pass on.”

Oregon ethics law prohibits using one’s public office for private gain. Avakian defends his job-seeking request to lobbyists.

“I think the email was appropriate,” he says. “It would be inappropriate to use my public position for personal gain. That was not the intent, nor was it the result.”

Now Avakian is in the biggest race of his life. And while he got in earlier than Bonamici and enjoys greater name recognition than Witt, neither of his competitors has made a habit of winding up in small claims court. 

Avakian says the totality of his public service—including his management of his agency’s $24 million biennial budget—far outweighs a few unpaid bills.

“In the end, I’ve always paid my obligations,” he says. “I think constituents are much more interested in the jobs and training programs I’ve created, and the work I’ve done for them.”

 
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09.14.2011 at 06:41 Reply

It sounds like he is just like Kurt Schrader was about paying his property taxes, I will pay them when I get around to it.  Politicans are not expected to follow the rules like the rest of us.

 

09.14.2011 at 08:02

Avakian has shown himself to be a petty overly ambititous man whose jealousy of Attorney General John Kroger is almost pathological.

Avakian lost to UNDERVOTES when he was elected BOLI Commissioner. That is quite an accomplishment

 

09.14.2011 at 09:42 Reply

So what?  This si the 1st District and based on history the bar is not that high.  Besides Merkley had the same sort of issues with renters and he got elected no problem.

 

09.14.2011 at 11:49 Reply
Bee

Come on. If Avakian was in anybody’s big pockets, he wouldn’t have neglected to pay a few small, triple-digit debts over the years. His salary was in the Oregon legislature was ridiculously small; he obviously wasn’t soliciting the uberrich for money, and he got into the same position that many householders do. He let a few comparatively small bills slide and then paid them, and paid several taxes late.

In all cases he paid every debt,  with a  late penalty.

I am in Bonamici’s district. I have spoken with both Bonamici and Avakian.   Avakian listened attentively.   Bonamici blew me off in a way that was arrogant and insulting.

 

09.15.2011 at 09:51

Brad Avakian is the politician who came across as arrogant to me, and from what I've seen he's not very honest.  The columns states that he has reported $195,000 in campaign funding.  I'd like to know who's giving him all that loot.  And with all that money rolling in, why do people have to take him to court or suspend him to get him to pay his bills?

I've known Senator Bonamici for years, and I've never witnessed her "blow anyone off" or be "insulting" in any way, even when it would have been well deserved.  She is honest and caring and has strong integrity and backbone.  Senator Bonamici helped me when Brad Avakian refused.

It was Brad Avakian's job as the Labor Commissioner to see to it that my crime victims rights were protected in the workplace and make sure that the investigation was thorough.   Instead, he chose to turn a blind eye.  I'm very curious if the employer whom my complaint was against gave him campaign donations.  If so how much and when?  Something sure seemed suspicious to me.

 

09.15.2011 at 10:20
Ken

@Julie:

Your arguments here are flawed. I'm not, in any way, defending Avakian, but there's a few things that you should understand.

First, Avakian's donations and campaign contributions *cannot* be used by him to pay personal debt, there's a whole list of Federal Election Campaign (FEC) laws that prohibit this, and frankly it would be worse behavior than his using public office to job hunt.

Second, you clearly have a very personal bias against Avakian based upon actions you believe he should have taken which he apparently did not. For this, we only have to take your case at face value, and additionally, it is so specific as to be completely unrelatable to 99.99% of the rest of his potential constituents.

Finally, you end your comment with a thinly veiled hint of corruption (a serious statement, indeed), without even a whisper of any ability to support that.

Sorry, but from my point of view, your comments are completely without merit.

That being said, I still don't trust Avakian.

 

09.15.2011 at 10:57

@Ken:
Your opinion of the merit of my comments means nothing to me and less than 99.99% of the rest of his potential constituents argee with you.  Haven't you read the comments?  Folks are concerned and becoming more outraged.

If my case was not properly investigated or pursued, because Brad Avakian received huge campaign donations from the corporation whom my complaint was against, that would be of interest to nearly 100% of his potential constituents.

In addition, if he is willing to ask for favors in the form of a new career from his lobbists, then what would stop him for asking for other unlawful benefits?

Feel free to continue to attack, I think you're somewhat amusing.

 

09.15.2011 at 11:26
Ken

@Julie:

Shocker! Less than 99.99% of everyone won't agree with anyone...

"If... because... would..." A hypothetical, a caveat and a conclusion based upon the two former statements?

Your "If" statement should have been followed up by an appeal higher up the chain in state government instead of grousing about alleged failure. For all you know, the case *was* properly investigated.

Your "because" is unsubstantiated (and almost libelous)... you reach for allegations of corruption and graft to support a conclusion you already reached that was an "if"?!

At least your "would" comment makes some sense... IF your purely hypothetical situation WOULD have happened because of the unsubstantiated corruption you seek, then yes... many would be concerned.

In addition, any job/benefit he received, in and of itself isn't an "unlawful benefit." It's the act of using a state office for personal gain that is illegal. But again, from here, you simply leap to a hypothetical "what if"...

If you can't understand the difference between an argument analysis and an "attack," then I'm clearly simply feeding a troll...

 

09.15.2011 at 12:57

I am simply curious if campaign fund contribution records are public knowledge or if they have to be subpoanaed?

It would be very interesting to see if there is a correlation to the contributions Mr. Avakian received and the actions his office failed to take in relation to case before him which may have involved one on his contributor's.

The facts in my case would be easy to explain to a real investigator. BOLI put their decision in writing, so the problem I have with their investigation would be clear, no "he said, she said."

 

09.15.2011 at 01:08

Campaign contributions are public record, and the names of donors are easily found online via sites like opensecrets.org. Here are Avakian's donations to date:

Operating Engineers Union $5,000
Plaid Pantries Inc $5,000
Willamette Dental $5,000
Williston Financial Group $5,000
Cain Petroleum $3,000
Emerick Construction $2,500
Hamilton Construction $2,500
Kodiak Pacific Construction $2,500
Letter Sent: 6 $2,500
Owner Software Co $2,500
P&C Construction $2,500
Pacific Crest Securities $2,500
PCC Structurals $2,500
Powells Books $2,500
Salem Clinic PC $2,500
Space Age Fuel Inc $2,500
Wsco $2,500
State of Oregon $2,050
Hoffman, Hart & Wagner $2,000
Fred Shearer & Sons $1,500
NW Natural $1,500
Perkins Coie $1,500

 

09.15.2011 at 01:40
Ken

Campaign finances are public record... as a matter of fact, candidates must disclose their campaign finances by Sept. 30th.

After that, you may have a point... may not. Even if the company donated to Avakian, it doesn't mean that you can prove it had any impact on your case...

 

09.15.2011 at 02:11

I am a little confused, because these numbers don't match Mr. Avakian's report of $195,000 in donations.  Are there other donations that aren't manditory to report? 

I visited the website, but Mr. Avakian didn't show up as a candidate.  I will continue to search and report what I find.

This is getting very interesting.  I'm intrigued by the way "Ken" is already making it sound like it would just be a coincidence if one Mr. Avakian's donors was also a defendent in a claim being "investigated" by his bureau. 

By the way... I'm pretty sure "Ken" is familiar with my case and knows exactly who I am.

 

09.15.2011 at 02:40
Ken

@Julie:

Yes, I'm guessing you are confused... *sigh*

The reason that the numbers don't add up is because, as I tried to explain, the campaign disclosures aren't due until Sept. 30th.

And not only confused, but paranoid... I'm not suggesting anything. I only stated that just because a company donates to someone, that doesn't mean the candidate is "in their pocket," or can/would have any influence on a specific case.

Not everything is about you...

Speaking of "you," Julie... I have no clue who you are. "Ken" is Kenneth Jones, a prior-service Army veteran and a recent University of Maryland graduate, who just moved back home this past summer and resides in the West Sylvan neighborhood.

There, that's it... no more feeding the trolls. Go off on whatever wild, paranoid, libelous assumptions you wish, Julie.

*wash my hands of this one*

 

09.16.2011 at 11:26

Here is the link to one of Brad Avakian's "best senior investigator's" twitter page:

http://twitter.com/#!/lloydperez

September 29.2009 Lloyd Perez tweeted:

"Polanski's victim said courts do more harm than him.  Drop the case.  Stop Re-victimization!"

This comment is very inappropriate for a Senior Investigator for the Oregon Bureau of Labor and Industry to make on a public social networking website. I was told it is official misconduct.

Roman Polanski's victim was a 13 year old girl whom he drugged and then sexually assaulted.

Lloyd Perez posted this comment shortly after I asked to have him removed as the senior investigator on my crime victims rights case.  I too, was very upset about the treatment I was receiving from the justice system.

 

09.14.2011 at 12:49 Reply
Ken

Regardless of whether or not Avakian's fiscal issues are or are not the same issues many of us private citizens regularly face, it is a cop-out to say, "Oh, well... we've all done it too."

As an elected official, we *SHOULD* be able to hold him to a higher standard than the rest of us bear, that is part and parcel of seeking an elected office. 

That Moore recognizes Avakian's issues as a "pattern" is even more troubling... 

And finally that Avakian himself does not see any ethical problems with using his state office job to seek private employment and/or gain is perhaps the most telling (and troubling) statement of his character.

 

09.21.2011 at 01:29

@Julie ... am I correct that you don't like Brad Avakian because he denied your employment claim?  Here's some comfort, then -- I represent an employer who was ordered to pay the wages of employees from the PRIOR  business, who she never hired; while I hope the Court of Appeals will reverse what I see as a terrible decision, it's certainly pro-employee.

 

 

09.21.2011 at 04:10

Actually, I'm just curious how much Brad's "Name Recognition Campaign" may have been paid by my ex-employer.

Mr. Avakian was raising funds for his "Name Recognition Campaign" during our investigation.  I noticed, online, that he did a little campaign speech out in this corporation's community, just after handing down his decision to dismiss my case against them.  They investigated the wrong claim.  I never claimed what they investigated.  What happened to me was far worse.  My claim was notorized.  They signed their findings that were nonrelated to my claims.

Did your client donate to Mr. Avakian's "Name Recognition Campaign" back in 2009, or any other campaign that he's been running?  I'm just curious if that would have made a difference in her case?

 

09.21.2011 at 06:40

@Ken  You are not correct, the reason I don't like Brad Avakian is because he is dishonest and employs dishonest people.

By the way, didn't you "Wash your hands" of me?

 

09.21.2011 at 08:21
Ken
@Julie: Cripes on a cracker, just HOW clueless are you? Look at the top of this post, see the posting time/date: 09.14.2011 at 12:49 That's right... more than TWO DAYS before your last post. I'm sorry that you've got nothing better to do than flog a dead horse that is literally a week old, but best of luck with whatever perceived injustice you have received... I get the feeling you could use all the luck you can get.

 

09.21.2011 at 08:31
Ken
@Julie Oh, and by the way, the person you're addressing, who addressed you directly (in any sort of recent manner) was one "Jonathan Radmacher"... NOT Ken... please, try to keep up.

 

09.21.2011 at 08:48

@Ken

It doesn't matter what name you use, Bee, Jonathon, Dick, Harry.  You are still obviously, Brad Avakian and his crew.  You are condescending, like him, rude, like him, and you talk in circles, like him.  Use any name you want, it's obvious who you are.  Washed up!

 

09.21.2011 at 08:51
Ken

@Julie, you are, by far the nuttiest troll I've ever encountered, and considering that I used to be a moderator on NewsVine, that's saying a lot.

I've been accused of plenty, called plenty of names, but I've never been accused of being a State Commissioner, or a Democrat...

I WISH I knew you... that way I could point and laugh, or at least know what batshit-crazy looks like in person.

 

09.21.2011 at 08:54
Ken

But, I am washing my hands of you now... even if it's a mildly entertaining diversion, it just isn't worth any more of my time.

Even if it was, trying to reason with someone who can't even comprehend the linear nature of time.

@Johnathan:

Sorry man, you'll never be able to convince this nutty housefrau that you're you, and I'm me... but best of luck... hahaha.

 

09.21.2011 at 08:59

Uh, Julie, given that I'm actually using my full name (unlike, well, YOU), you could use one of the many available search engines.  Or you could read what I posted -- I am appealing a decision that Mr. Avakian made against my client.  I only mention it because it was against my client (a very, very small business), and could never be seen as some kind of anti-worker decision (again, it was wrong, but that's a different issue)

 

09.21.2011 at 09:01

Brad, (Ken) You're a sick man.  Maybe you should go "wash your hands".  They are very dirty.

 

09.21.2011 at 09:06
Ken

Yes, Julie... I did wash my hands of you... WAAAY back with the time/date: 09.15.2011 at 02:40

THIS post was posted on 09.14.2011 at 12:49... BEFORE you ever posted here.


If anything, you're stalking me...

Best of luck, Johnathan... you're going to need it.

 

09.14.2011 at 01:46 Reply

I'm not in his District, and am not sure of how this might affect the race, but it seems like a pretty thorough job of reporting -- thanks.

 

 

 
 

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