DEPARTMENT OF JUSTICE

CRIMINAL JUSTICE DIVISION
INVESTIGATION REPORT CASE/FILE NO.: DATE OF REPORT: SPECIAL AGENT: ATTORNEY: CPC0001-09 June Ron Nelson Donna Maddux

I. OVERVIEW On January 21, 2009, Multnomah County District Attorney Michael Schrunk and Portland Police Chief Rosanne Sizer jointly sent a letter to Attorney General Kroger asking for an investigation into whether Portland Mayor Sam broke any laws in connection with his relationship with Beau Breedlove. In response, the Oregon Department of Justice conducted an exhaustive investigation, which included interviews with more than 50 witnesses; an extensive review of City Hall records including telephone and email accounts; a review of Breedlove’s cell-phone records; and a forensic examination of Breedlove’s phone, Adams’ phone and computers. Based on the results of our investigation, this report addresses three key allegations: 1. Did Adams have sexual contact with Breedlove in 2005 while Breedlove was a minor, in violation of ORS 163.4151, 163.435 or 163.445? CONCLUSION: There is insufficient evidence to support the allegations that Adams committed the crimes of sexual abuse in the third degree, contributing to the sexual delinquency of a minor or sexual misconduct. Inconsistencies in Breedlove’s statements regarding the two alleged incidents of kissing before his 18th birthday and Breedlove’s role in bringing his characterization of his relationship with Adams to the attention of the media has compromised his credibility as a witness in this investigation. In the absence of any corroborating evidence, proof of the allegation that Sam Adams

ORS 163.415 Sexual abuse in the third degree. (1) A person commits the crime of sexual abuse in the third degree if the person subjects another person to sexual contact and: (a) The victim does not consent to the sexual contact; or (b) The victim is incapable of consent by reason of being under 18 years of age. (2) Sexual abuse in the third degree is a Class A misdemeanor.

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engaged in criminal sexual conduct with Breedlove is solely dependant upon Breedlove’s credibility. We conclude that there is not sufficient credible evidence to justify criminal prosecution. 2. Did Adams commit official misconduct in violation of ORS 162.4152 by hiring a Portland Mercury reporter in 2008 in an effort to stop her from pursuing a story about Adams’s relationship with Breedlove during Adams’s campaign for mayor? CONCLUSION: No evidence exists to support the allegation that Adams hired former Portland Mercury reporter Amy Ruiz in an effort to stop her from pursuing the story of Adams’ relationship with Breedlove. The evidence overwhelmingly shows that Adams was not involved with the hiring of Ruiz. 3. Did Adams commit official misconduct in violation of ORS 162.415 or theft by deception in violation of ORS 164.0853 by lying about his relationship with Breedlove when questions about that relationship first emerged or in Adams’s mayoral campaign?
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ORS 162.415 Official misconduct in the first degree.

(1) A public servant commits the crime of official misconduct in the first degree if with intent to obtain a benefit or to harm another: (a) The public servant knowingly fails to perform a duty imposed upon the public servant by law or one clearly inherent in the nature of office; or (b) The public servant knowingly performs an act constituting an unauthorized exercise in official duties. (2) Official misconduct in the first degree is a Class A misdemeanor.
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ORS 164.085 Theft by deception.

(1) A person, who obtains property of another thereby, commits theft by deception when, with intent to defraud, the person: (a) Creates or confirms another’s false impression of law, value, intention or other state of mind that the actor does not believe to be true; (b) Fails to correct a false impression that the person previously created or confirmed; (c) Prevents another from acquiring information pertinent to the disposition of the property involved; ***** (2) “Deception” does not include falsity as to matters having no pecuniary significance, or representations unlikely to deceive ordinary persons in the group addressed. * * * (3) In a prosecution for theft by deception, the defendant’s intention or belief that a promise would not be performed may not be established by or inferred from the fact alone that such promise was not performed. *****

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CONCLUSION: The evidence does not support the allegation that Adams engaged in criminal official misconduct or theft by deception. Adams did not mobilize city resources to promote or further his claim that he did not engage in sexual contact with Breedlove. Further, there is no evidence that Adams conveyed false statements about his relationship with Breedlove to potential campaign supporters in a direct effort to obtain contributions.

II. SYNOPSIS OF INVESTIGATION A. 1. FACTS RELATED TO THE ALLEGATION OF SEXUAL ABUSE Undisputed Facts

In March of 2005, Breedlove worked as a volunteer intern for Oregon State Representative Kim Thatcher in her Capitol office in Salem. Breedlove was 17 and had graduated from high school nine months prior. In March of 2005, Adams was serving as a Portland City Commissioner. On March 24, 2005, Adams traveled to Salem to meet with legislators and to discuss transportation issues. Adams and Breedlove first crossed paths when Adams briefly passed Representative Thatcher’s office. Although details vary, Adams and Breedlove both acknowledge that, before Adams left the building Adams was provided with a card that included Breedlove’s name, phone number and a brief note from Breedlove. Adams said he lost the card containing Breedlove’s contact information. He called Representative Thatcher’s office on March 31, 2005, and spoke with a woman who provided Breedlove’s number. Adams called Breedlove that day and the two began communicating by cell phone and text message. Available records show regular cell phone and text message communication through April, May, June and July of 2005. Adams’ phone records show the following call history to Breedlove: 2 calls on March 31st; 19 calls in April; 8 calls in May; 5 calls in June; 12 calls in July; 1 call in August; and one call in November. Breedlove’s phone records are available for the time period including April 13, 2005 – May 11, 2005. According to Breedlove’s records, from April 13 – April 29, Breedlove called or text messaged Adams 31 times. From May 1 – May 11, Breedlove called or text messaged Adams 11 times. Within a few weeks of their initial communication, Adams and Breedlove agree that they arranged to meet for the first time over lunch at the Macaroni Grill in downtown Portland. Neither claims to be able to recall the exact date of this lunch meeting, but both agree it was most likely in April of 2005. Breedlove’s age came up in conversation during the meal. Adams says he was surprised to learn Breedlove was only 17. After 3

lunch, Adams drove Breedlove to the train station where the two parted company. A point of dispute arises, however, about events during that drive. As discussed below, Breedlove alleges that he and Adams kissed at some point during their drive while Adams denies that this occurred. Breedlove said he subsequently received notice of a First Thursday event at City Hall and decided to attend.4 Breedlove said he contacted Adams prior to the First Thursday event and let Adams know that he planned to attend. Neither claims to remember the precise month on which this event fell. Both agree that it was before Breedlove turned 18 on June 25, 2005 and that it was most likely in May.5 Accounts of the specific events of this night vary greatly, but include a number of undisputed elements. Breedlove said he arranged to have a friend give him a ride from Salem to Portland that evening. Breedlove arrived at City Hall alone and with a gift for Adams. Adams said he pulled a few staff members into his office and told them that there was a 17-year-old at the event who was interested in him. Adams said he asked staff members to help keep some distance between Adams and Breedlove during the event. Adams introduced Breedlove to his staffers and others present. Adams also asked his staffers to attend to Breedlove during the evening. By all accounts, Adams networked the crowd during the event and did not interact significantly with Breedlove. Breedlove remained for the entire event, which began around 5:00 p.m. and typically would have ended around 8:00 p.m. Adams and Breedlove left City Hall together after the event and walked to the Lotus Restaurant. Adams and Breedlove later left the restaurant when Breedlove’s friend arrived to pick him up. Adams and Breedlove both state there was no intimate physical contact between them either during or after their meal at the Lotus restaurant. At some point, Breedlove invited Adams to Breedlove’s 18th birthday party at Breedlove’s parents’ home in Salem. Adams attended the party on June 25, 2005. Adams and Breedlove both state that there was no intimate physical contact between them during the party. Adams and Breedlove continued to communicate by phone and text message after the June 25, 2005 party and into July 2005. At some point, they scheduled a Saturday evening date at Adams’ residence, which included consensual sexual conduct. Breedlove

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First Thursday at City Hall was an event hosted by Commissioner Adams as part of his role as the Arts Commissioner. These events occurred in concert with Portland First Thursday art-gallery openhouse functions on the first Thursday of each month. During these events, Adams would introduce artists whose works were on display in City Hall. These events were open to the public. According to staffers, Adams would regularly circulate through the crowd and network with attendees.
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Considering the date of their first contact by phone, their intervening lunch, and the fact that Adams was out of town for the June 2005 First Thursday function, it is likely that Adams and Breedlove both attended the First Thursday event that occurred on May 5, 2005.

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and Adams continued to communicate via cell phone and text through July 30, 2005. Cell phone and text message communication dropped off abruptly after that date. In September of 2005, Breedlove left Oregon for a job in Hawaii. 2. Disputed allegations a. The Drive after Lunch at Macaroni Grill

In his statements to DOJ investigators, Breedlove asserts that during the drive to the train station after lunch at the Macaroni Grill in April 2005 — when Breedlove was still underage — Adams stopped at a traffic light, leaned over and kissed him on the lips. Breedlove said he considered it a mutual kiss and has described it as “brief” and “romantic.” Breedlove and Adams say they parted company at the train station without further physical contact. Adams acknowledges that he was attracted to Breedlove and considered the lunch to be a date based on their cell phone and text message exchanges leading up to the lunch, which Adams described as mildly flirtatious. Adams denies any kissing or intimate physical contact with Breedlove while they were driving to the train station after lunch. Adams contends that he had cleared his calendar that afternoon with the hope that, if lunch went well, he and Breedlove could also attend a movie across the street. When Adams learned over lunch that Breedlove was only 17, he claims he immediately dismissed the idea of extending their lunch date and informed Breedlove that he could not be involved with someone under age 18. Adams claims that he was surprised that Breedlove did not mention his age at some point before arriving for their date. Adams claims that it is common for him to greet or leave friends with a hug or quick kiss on the cheek. Adams said he does not specifically recall such an exchange with Breedlove at the train station on this day, but he acknowledges that this type of exchange may have occurred. b. First Thursday According to Breedlove, Adams personally invited him to the First Thursday event. Breedlove recalls baking cookies as a gift to Adams and taking those with him to City Hall. Breedlove claims that he presented the gift to Adams and Adams accepted the gift. Breedlove claims that, after the event ended and most of the public had left the building, he and Adams entered the men’s restroom on the second floor. According to Breedlove, no one else was in the restroom at that time. He alleges that, after using the restroom, they embraced each other body to body and engaged in a long, mutual kiss on the lips. Breedlove described the incident as “passionate” and “making out.” He could not describe who initiated the contact. Breedlove claims, “it just happened.” Breedlove further asserts that, after the kiss, as he and Adams were leaving the restroom, a uniformed security guard was entering. Breedlove described the guard as an older, white male. Breedlove claims the security guard said at that time that he had seen Adams enter the restroom and was concerned because Adams had been in the bathroom 5

for a long time. Adams denies that the kiss in the restroom occurred. Adams also does not recall being in the restroom at the same time as Breedlove. In September of 2007, Adams publicly stated that he invited Breedlove to First Thursday at the end of their lunch. Adams currently maintains that he does not remember extending a personal invitation to Breedlove, but was aware that Breedlove planned to attend. Adams claims that Breedlove presented him with a gift that night that included a vase and a shirt. Adams indicates he did not accept the gift and that he discussed with Breedlove that it would be inappropriate for him to accept the gift because Breedlove was 17 years old and Adams could not get involved with someone that age. Adams reports that he accompanied Breedlove to the Lotus Restaurant because, at the end of the event, Breedlove told him that his friend could not pick him up for another 30 to 45 minutes. Adams claims he did not want to leave Breedlove by himself in City Hall, but also did not think it was a good idea to be alone with Breedlove. Adams suggested they wait for Breedlove’s friend in one of the closest public restaurants. 3. Absence of Corroborating Witnesses

DOJ’s investigation identified no witnesses who could corroborate Breedlove’s claim that Adams kissed him while driving to the train station after lunch at the Macaroni Grill. The investigation also identified no witnesses to corroborate Breedlove’s claim that he and Adams kissed in the City Hall bathroom during the First Thursday event. Breedlove asserts that an “older, white male” security guard witnessed Breedlove and Adams leaving the restroom after they kissed. This witness would not have direct knowledge of any intimate physical contact between Breedlove and Adams, but such a witness might corroborate that Breedlove and Adams were in the bathroom together, something Adams denies. In 2005, City Hall security guards were employed by DePaul Industries Securities Services. Available DePaul employees who worked at City Hall during the relevant time period in 2005 were contacted. None of the employees recalls witnessing Adams and Breedlove in the restroom. With one exception, none of the security guards interviewed said they recall hearing anything about this incident from other guards. One security guard — Glenn Clark — claims to have information about this encounter. Clark served as a security guard in City Hall from 2004 through April 15, 2005. In a written statement that Clark provided to The Oregonian, Clark states that he and Security Officer Jacoby Demissie worked the same shift during a First Thursday event sometime between January 2005 and April 2005. Clark reports that, about 7:30 or 8:00 p.m., Demissie came down from the second floor of City Hall and walked over to the front of the security desk where Clark sat. Clark claims that, in a flat tone, Demissie said words to the effect that “I just saw Sam Adams having sex with this younger guy in the bathroom.” Clark believed Demissie was saying that Adams and the younger man were doing more than kissing or making out. Clark claims he then asked if the younger 6

guy was underage and Demissie responded “no.” Clark did not visit the second floor himself and reports that no one overheard his conversation with Demissie. He further states that he did not repeat Demissie’s remarks to anyone. Clark claims he forgot about this conversation with Demissie until he ran into another former City Hall security guard at a bar on Super Bowl Sunday 2009. Clark states that the other former security guard mentioned that Willamette Week was trying to find former security guards who worked at City Hall and that the discussion triggered Clark’s memory of his conversation with Demissie four years prior. Jacoby Demissie was a DePaul Securities guard assigned to City Hall in 2005. Demissie states that he does not recall ever seeing Adams engaged in sexual activity in the restroom or telling Clark those details Several factors undermine Clark’s claim. Demissie contradicts it. Demissie is African American, which does not match Breedlove’s description of the security guard as an older white male. Finally, Clark served as a security guard in City Hall until April 15, 2005, and thus was not so employed on the May 5 First Thursday event that Breedlove most likely attended. (Footnote: First Thursday fell on April 7 in 2005. Based on interviews with Adams and Breedlove, it seems unlikely that just seven days separated the first call between the two of them on March 31, the Macaroni Grill lunch date and Thursday, April 7.) Breedlove was asked by this investigation to provide names and contact information for his close friends and associates from 2005 who could verify his account. None of the individuals interviewed recall Breedlove sharing the exact details of the two alleged kissing incidents, but at least two individuals interviewed do recall Breedlove mentioning a date, kissing or a sexual relationship with Adams between April and July of 2005. None can recall with certainty whether the discussions about sexual contact or kissing happened before or after Breedlove’s 18th birthday. Breedlove declined to provide information for two friends who were later interviewed based on Breedlove’s cell phone and text message activity for April and May of 2005. Lacey Visto, who described her relationship with Breedlove in 2005 as “close,” recalled Breedlove telling her about meeting Adams at the legislature. She maintains that Breedlove’s initial interest in Adams was romantic and that he wanted to move his relationship with Adams forward at a rapid pace. (Should somehow add that this contradicts Breedlove’s description of his initial interest in Adams) She stated that Breedlove pursued the relationship aggressively. She recalls Breedlove indicating that Adams was hesitant due to their age difference and the fact that Adams was a public figure. Nathan Torres, who drove Breedlove to Portland the night of the First Thursday event, states that Breedlove never mentioned any kissing with Adams during the ride back to Salem.

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Credibility Issues 7

With no corroboration, proof of the alleged kisses rests squarely on Breedlove and his personal credibility. a. Breedlove i. Inconsistent Statements Over time, Breedlove has provided different statements about the critical events that allegedly occurred between him and Adams. Breedlove has stated that no kiss occurred on the day they had lunch at the Macaroni Grill6. He has stated that the only kiss that day occurred while Adams was driving him to the train station7. He has also said Adams kissed him when Adams dropped Breedlove off at the train station8.

ii.

Breedlove’s Active Role in Generating Media Attention

It appears that Breedlove quietly orchestrated a behind-the-scenes resurgence of this story after he moved to Portland from Michigan in November 2007, fueling the story through January 2009. Despite this, in statements to Adams and the media, Breedlove never hints at his direct role in bringing the story to public light. To the contrary, during his interview and erotic photo shoot with Unzipped magazine, Breedlove blames a “spurred lover” for tipping off the Portland media, and further claims “that guy has caused me and my family a ton of stress and turmoil.” Breedlove has benefited, both in notoriety and financial gain, from his role in bringing his characterization of his relationship with Adams to the attention of the media. (Then I’d put this section in an addendum if we still want it)It appears that Breedlove quietly orchestrated a behind-the-scenes resurgence of this story after he moved to Portland from Michigan in November 2007, fueling the story through January 2009. Although there may be legitimate reasons for Breedlove bringing the story to light

January 22, 2009. Breedlove provided a statement to Adams’ attorney Sam Kauffman and investigator Kara Beus asserting that he and Adams engaged in no sexual contact or kissing at any time before Breedlove’s 18th birthday.
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January 24, 2009. Breedlove’s attorney, Charlie Hinkle, emailed a statement to Adams’ attorneys that includes the following statement by Breedlove: “After lunch, Sam drove me to the train station. When he dropped me off at the train station, he kissed me.” January 24, 2009. Breedlove asserted in an interview with The Oregonian that on the day of their lunch, Adams leaned over and kissed Breedlove on the lips while stopped at a traffic light near Pioneer Square.
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at that time, it is likely that a jury would view the timing of the disclosures as an additional reason to doubt Breedlove’s credibility. This view is bolstered by the fact that — in statements to Adams and the media—Breedlove never hints at his direct role in bringing the story to public light. The following provides an overview of related key events: November 2007. Breedlove moved to Portland from Michigan and arranged to meet with The Mercury reporter Amy Ruiz at the Pioneer Square Starbucks. Breedlove did not show up for the meeting. January 2, 2008. Ruiz, still with The Mercury, received an anonymous email suggesting that Breedlove and Adams had a sexual relationship in 2005. The anonymous source agreed to meet with Ruiz to verify his identity, but requested that his identity be kept confidential. January 2, 2008. Breedlove met Ruiz at the Higgins restaurant. He admitted that he was her source but refused to go on record. He expressed a desire for Ruiz to independently confirm his story about his relationship with Adams so that it can be reported without his participation. Breedlove provided sources for Ruiz to consult to corroborate his claim that he had a sexual relationship with Adams in 2005. January and February 2008. Ruiz attempted to confirm Breedlove’s story with other sources including Breedlove’s former teacher, a friend from 2005, a Salem colleague and others. None of the individuals contacted by Ruiz sufficiently supported Breedlove’s story, including those whose names and contact information were provided by Breedlove. Late February 2008. Based on an inability to corroborate Breedlove’s story, and Breedlove’s refusal to go on record, The Mercury stopped pursuing Breedlove’s leads and did not publish a story. April 2, 2008. Breedlove posted a statement on his MySpace page which was anonymously emailed to Willamette Week. This email reignited Willamette Week’s interest in the Breedlove/Adams story. Breedlove met with Willamette Week reporters three times between April 2008 and January 2009 and requested on all occasions but one that he not be quoted for publication. January 9, 2009. Breedlove called Ruiz to make sure she had not spoken with Adams about what Breedlove had told her or about the fact that Breedlove was her anonymous source. January 9, 2009. The following anonymous email was sent to Willamette Week, The Oregonian, the Portland Tribune, Just Out, the Statesman Journal, The Mercury and KOIN-TV: “I suggest you follow up on Sam 9

Adams and Beau Breedlove. You should contact Mark Merkle. He knows and has talked to some people already.” The message included Merkle’s cell phone number. January 15, 2009. A Willamette Week reporter and editor met with Adams and confronted him with their information. January 20, 2009. Breedlove issued a press release/public statement through Harvest Public Relations and Marketing. The statement read, in part: “The past day of news coverage regarding my brief 2005 relationship with Mayor Sam Adams has been stressful, to say the least. … While my first instinct was to tell the truth, I also wanted to protect Sam Adam’s [sic?] reputation, considering our valuable friendship.” January 20, 2009. Breedlove sent the following text message to Adams: “I support you Sam. I am sorry this happened.” January 24, 2009. The Oregonian ran a front-page interview with Breedlove. This was the first of many print, radio and television interviews for Breedlove. January 24, 2009. Breedlove sent a text message to Adams that read in part: “I didn’t call or text you because I didn’t think I should, but the Oregonian essentially blackmailed me, and said to the effect, that if I didn’t speak, they were going to publish about the Hawaii incident in the Sunday paper. So I interviewed with them.” February 2009. Breedlove accepted Unzipped magazine’s offer to be featured on the magazine’s May cover and traveled to Los Angeles for a nude photo shoot and interview. In the article, Breedlove discussed his “spurned lover who tipped off the Portland media to the Adams affair. Beau states the man – many years his senior, just like Mayor Adams – did it after he and Beau had a messy breakup. ‘That guy caused me and my family a ton of stress and turmoil.’” iii. Breedlove’s Felony Conviction

In 2006, Breedlove pleaded guilty to theft in the second degree, a Class C felony, in Hawaii. Breedlove was caught leaving Macy’s department store with over $750 in clothing. As part of his plea agreement, he was sentenced to five years supervised probation. Under Oregon Evidence Code Rule 609(1)(a), prior felony convictions are admissible in criminal proceedings to attack the credibility of a witness. b. Adams i. Adams admits to lying about the salient facts 10

Adams has admitted that he lied about the nature of his relationship with Beau Breedlove, both publicly and privately. According to Adams, these lies began with his statements to John Veniza in July of 2005 and ended with his interview with Willamette Week on January 19, 2009. In September of 2007, when confronted with rumors that he and Breedlove had a sexual relationship while Breedlove was 17 years old, Adams denied the allegation. As part of his private and public denials, Adams crafted a story that featured him in a mentoring relationship with Breedlove. Adams admits and Breedlove concurs that, in the summer of 2007, Adams called Breedlove and asked him to lie if questioned about the sexual nature of their relationship. At the time, Breedlove agreed to conceal the truth. Adams has admitted that his description of his relationship with Breedlove in 2007 and 2008 was predicated on a lie and that he made a number of inconsistent statements about the details of his interactions with Breedlove to further his inaccurate portrayal of their relationship. ii. Adams’ public claims of cooperation with this investigation.

Throughout the first three months of the investigations, Adams’ legal team repeatedly delayed investigative access to Adams’ computers, cell phone and email accounts. At the same time, Adams was asserting to the press and to city staff that he intended to fully comply with this investigation. DOJ first requested access to Adams’ computer and phone records on January 23rd, but it was not until April 6th that all requested materials were finally made available to DOJ investigators. (Then I’d reduce the details of this section to an addendum): On Thursday, January 23, 2009, DOJ Criminal Division Chief Counsel Steven Briggs requested immediate access to Adams’ computers and cell phones. Adams’ attorney, Robert Weaver, agreed that Briggs and Special Agent Ron Nelson would pick up Adams’ city computer at City Hall on Saturday, January 25th. Weaver indicated he would call on Saturday to schedule the exact time to meet. Weaver never called as planned. Weaver did call and leave a message for Briggs on Sunday, requesting more time and suggesting that, in his absence the following week, DOJ should work with his partner at Garvey Schubert Barer, Sam Kauffman. On Monday, January 27 DOJ’s Attorney in Charge of the Organized Crime Section, Donna Maddux, contacted Sam Kauffman and reiterated DOJ’s request for immediate access to Adams’ computers and cell phones. A request was also made for a complete listing of electronic data sources utilized by Adams, including but not limited to telephones, computers, email accounts and social networking accounts. Kauffman informed Maddux that Adams’ computers and cell phones were currently in the possession of Kauffman’s law firm. On Wednesday, January 29th Maddux and Nelson traveled to the Portland law offices of Garvey Schubert Barer to meet with Kauffman. Earlier that day, Maddux 11

provided Kauffman with DOJ consent-to-examine forms. During the meeting, Kauffman provided a one-page list of Adams’ electronic data sources. Kauffman refused to provide any additional information or equipment. He also refused to provide passwords to email accounts which would allow DOJ investigators access to those accounts. He indicated that Garvey Schubert Barer forensic experts had created a forensic image of Adams’ city computer and he offered to provide DOJ with a copy at a later date. Maddux and Nelson insisted on having direct access to Adams’ hardware in order to conduct an independent forensic review. Kauffman refused requests to allow Nelson to take the computer at that time. Arrangements were made for Nelson to return to Kauffman’s office to pick up Adams’ city laptop the following day. On February 3rd, Maddux sent Kauffman a letter reiterating DOJ’s request for consent to review Adams’ personal computers, phone and electronic accounts. On February 9th, Kauffman requested a two-day extension. The response letter was received on February 12th and indicated that Adams would produce his two personal computers and his PDA/cell phone, in addition to providing user names and passwords for Adams’ email and social networking accounts. Nelson arranged to pick up Adams’ personal computers and his PDA from Garvey Schubert Barer on February 17th—25 days after DOJ’s initial request. Forensic examination of Adams’ PDA revealed a missing memory card. On February 18th, Maddux contacted Kauffman to inform him of the missing memory card and to request any and all memory cards used with Adams’ PDA since April 2005. On February 23rd, Kauffman reported to Maddux that “while we can confirm that the Mayor sometimes used the memory card slot on the PDA, there is no particular memory card that goes with the PDA.” Maddux reiterated DOJ’s request for any and all memory cards used with Adams’ PDA during the relevant time period. On April 2nd, in response to a number of outstanding questions related to Adams’ electronic data sources, Kauffman indicated that Adams had consented to production of two PDA memory cards that were previously in Adams’ possession and were now in the possession of Garvey Schubert Barer. Nelson arranged to pick up the memory cards on April 6th. Adams’ delay in complying with requests for electronic data in the course of this investigation raises additional questions. While this investigation was requesting access to Adams’ equipment and pushing for full cooperation but not receiving such cooperation, Adams was asserting, to the press and to city staff, that he intended to fully comply with this investigation. Conclusion

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Adam’s credibility has been called into question, but proof that the alleged kisses occurred rests squarely on Breedlove and his personal credibility. Breedlove’s account of the two incidents of kissing before his 18th birthday is called into question by the inconsistencies in his statements in 2009. He has benefited, both in notoriety and financial gain, from his role in bringing his characterization of his relationship with Adams to the attention of the media. In combination with the issues raised based on his prior felony conviction, Breedlove’s own conduct has compromised his credibility as a witness in this investigation. Because proof of the allegation that Sam Adams engaged in criminal sexual conduct with Breedlove is dependant upon Breedlove’s credibility, we conclude that there is not sufficient credible evidence to justify criminal prosecution. B. FACTS RELATED TO POTENTIAL OFFICIAL MISCONDUCT CHARGES STEMMING FROM THE HIRING OF AMY RUIZ Amy Ruiz was employed by the Portland Mercury in the fall of 2007 when Breedlove returned to Oregon and contacted her. In January and February of 2008, Ruiz met with Breedlove and attempted to find corroborating evidence to support his claims. On February 29, 2008, Ruiz met with Adams to discuss the anonymous email she received on January 2, 2008. The email contained specifics about Breedlove and Adams kissing in a City Hall men’s restroom. It included a reference to a security guard who might have information. Ruiz recalls showing the email to Adams, who said: “whoever wrote this believes it.” Adams claims he denied the allegations. In consultation with her editor, Ruiz said she later dropped her pursuit of the story because she could not find anyone to confirm Breedlove’s allegations. Ruiz states that she noticed the Planning and Sustainability Advisor position posted on the web at “CommissionerSam.com” on or about October 27, 2008. After she saw the opening, she provided her resume to Adams’ Chief of Staff Tom Miller. Eventually, Lisa Libby called and asked her to come in for an interview. On December 22nd, Ruiz received a call requesting that she return for a final interview and was offered the job. Ruiz asserts that she never had any contact with Adams during the hiring process and that no one raised the Breedlove story. Libby and Miller give similar accounts. Libby served as the Senior Policy Director for Commissioner Adams at the time and said she was responsible for posting the job. She reviewed between 35 and 40 applications and selected 10 individuals for interviews. Ruiz was one of the individuals contacted. Before the final interviews, Libby suggested to Miller that existing city planner Radcliffe Dacanay might be a good fit for the new bureau. Dacanay had not applied for the position. Miller reports that he and Libby approached Dacanay about the position of Policy Advisor in the new bureau and that Dacanay declined. Dacanay confirmed that Libby and Miller offered him the new position in the first or second week of December 2008 and that he declined. Libby claims that based on first-round interviews, she narrowed the pool down to 13

three applicants and asked Adams Chief of Staff Tom Miller to sit in on the second interview. Miller advised that when he became the Chief of Staff for Mayor Adams, he and Adams agreed that Miller would have control over the hiring and firing of personnel. This is confirmed by Adams and other staffers. After the final interviews, Libby and Miller agreed that Ruiz was the top candidate for the position. Libby and Miller confirm that Ruiz’s work on the Breedlove story was never discussed during the hiring process. Libby claims that immediately after the second interview of Ruiz, Miller walked over to Adams’ office. Libby further reports that Miller returned in a matter of minutes and indicated that Ruiz would be offered the position. Neither Miller nor Adams recall if Adams was actually consulted for approval before the position was offered to Ruiz. According to Libby, Miller reported to her that Adams was fine with their choice. Ruiz was offered and accepted her current position. Conclusion Based on this information, there is no evidence that Adams hired Ruiz in an effort to cover-up her investigation and reporting of the Breedlove/Adams story. C. ALLEGATION OF OFFICIAL MISCONDUCT OR THEFT BY DECEPTION BASED ON ADAMS’S LIES ABOUT THE NATURE OF HIS RELATIONSHIP WITH BREEDLOVE None of the persons interviewed reported being asked to do or say anything on city time or in any capacity with regards to Adams’s denials about his relationship with Breedlove. In the fall of 2007, Adams handled his press by himself. His denial of the rumors prompted by comments from Ball was posted on a web site that Adams hosted himself without the use of city resources. When the story first broke, Adams granted interviews to reporters who arrived at City Hall, but did not take proactive steps or other efforts to mobilize city resources or staff to dispute Ball’s story. In January 2009, the only press interaction that involved city staff occurred on January 15. A Willamette Week reporter and editor asked to talk directly with Adams that day and the discussion occurred after regular work hours in Adams’s office. Amy Ruiz and then-Spokesman Wade Nkrumah asked to be present; Adams did not direct them to be present. Ruiz was aware, based on a conversation she had with reporter Nigel Jaquiss earlier that day that her hiring and her qualifications for her position were partly at issue. No one involved in the campaign recalled any campaign materials or contribution requests that included or mentioned Adams’s denials of a sexual relationship with Breedlove. There are no references to Breedlove or the rumors surrounding the relationship in any campaign or fundraising materials we reviewed. Campaign staff consistently stated that the Breedlove story was a non-issue by the time the mayoral campaign pushed forward. Conclusion

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Based on this information, there is no evidence that Adams improperly used city resources to further the lies he told about his relationship with Breedlove or sought campaign contributions based on those lies.

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SCOPE OF INVESTIGATION A. INTERVIEWS During this investigation, the following persons were interviewed on the dates indicated in 2009:9 1. Sam Adams – May 28 (Portland Mayor) 2. Mario Aguilar - March 16 (Friend of Beau Breedlove) 3. Jane Ames – February 11, February 19 and June 10 (Adams staff) 4. Robert Ball – February 4 (Real estate developer) 5. Jesse Beason – February 12, February 19, and June 11 (Previous Adams staff) 6. Pollyanne Birge – February 17 and June 12 (City of Portland staff) 7. Beau Breedlove – February 23, March 26, April 14, May 1 and June 10 8. Kate Brown – April 20 (Secretary of State) 9. Roland Chlapowski – February 12, February 19 and March 18 (Adams staff) 10. Catherine Ciarlo – February 12 and June 12 (Adams staff) 11. Glenn Clark – March 18 (DePaul Industries Security Guard) 12. Radcliffe Dacanay – April 8 (City of Portland Planning Bureau) 13. Jacoby Demissie – March 20 (Previous DePaul Industries Security Guard) 14. Carol Duong – February 11 and April 9 (Adams staff) 15. Cevero Gonzales – February 12, May 4, May 18 and June 12 (Adams staff) 16. David Gonzales – February 25 (Previous Adams staff) 17. James Graham – March 11 (Former DePaul Industries Security Guard) 18. Warren Jimenez – March 12 and March 17 (Adams staff) 19. Gordon Johnston – February 27 (Previous Adams volunteer) 20. Vera Katz – March 11 (Previous Portland Mayor) 21. Robert Kieta – March 6 (City of Portland staff) 22. Ty Kovatch – March 12 (Chief of Staff for Commissioner Randy Leonard) 23. Jason Landon – March 23 (DePaul Industries Security Guard) 24. Alacia Lauer – April 9 (Adams staff) 25. Randy Leonard – March 12 (Portland City Commissioner) 26. Lisa Libby – February 11, May 27 and June 12 (Adams staff) 27. Maria Lim – February 11 (City of Portland staff; previous Adams staff) 28. Richard Lloyd-Jones – June 11 (C & E Systems) 29. Thomas Miller – March 4 and June 10 (Chief of Staff for Mayor Sam Adams) 30. Scott Moore – January 27 (Former Mercury newspaper reporter) 31. Warren Newberry – February 11 (Adams staff)

9

Mark Merkle, an ex-boyfriend of Beau Breedlove, refused to be interviewed as part of this investigation.

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32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51.

Wade Nkrumah – February 5 (Previous Adams staff) Arissa Oliveros – February 27 (Former DePaul Industries Security Guard) Shoshannah Oppenheim – February 17 and June 15 (Adams staff) Paul Peterson – February 11 (Adams staff) Megan Ponder – June 11 (Adams staff) Amy Ruiz – February 17, February 23 and June 11 (Adams staff; former Mercury newspaper reporter) Obadiah Rutledge – January 27 and April 8 (Administrative Specialist/Reading Clerk, Oregon House of Representatives) Kimberly Schneider – February 11 (Adams staff) Kathryn Skorniak – February 13 (Friend of Beau Breedlove) Sierra Stringfield – April 13, April 24 and June 12 (Adams staff) Maria Thai Mai – February 27 and June 15 (Former Adams staff) Kim Thatcher – February 3 (Oregon State Representative) Robert Tybie – March 5 (Former DePaul Industries Security Guard) Grace Uwagbae – February 11 and April 8 (Adams staff) John Vezina – February 18 (Friend of Adams in 2005) Lacey Visto – May 28 (Friend of Breedlove in 2005) Adam Villarreal – April 6 and April 20 (Friend of Beau Breedlove) Mark Weiner – January 29, April 6 and June 11 (Political Consultant to Adams) Davis Wilson – March 31 (Former day porter at Portland City Hall) Jennifer Yocum – February 11 and June 10 (Adams staff)

B. DIGITIAL, ELECTRONIC AND TRADITIONAL INFORMATION REVIEW This investigation included an extensive review of the following records (see Attachment #1 for greater detail): Portland City Hall security records (April 2005 – June 2005) Adams’ cell phone records (January 2005 – December 2005 and April 2008 – February 2009) City archived emails for Adams (dates) Adams’ personal email accounts (January 2007 – March 2009) Adams’ city calendar (April 2005 through July 2005) Breedlove phone records (April 12, 2005 through May 12, 2005) All known print, television and radio interviews featuring Breedlove, Adams or others relating to this investigation Social networking sites for Breedlove and Adams (Facebook and MySpace) Campaign brochures, emails, letters and 30-second television ad A Blackberry Pearl cell phone used by Breedlove was examined. Breedlove voluntarily provided his phone to our investigators on March 26, 2009. Text messages from January 22, 2009 – March 5, 2009 were recovered. The following computers, cell phone and memory cards used by Adams were examined. 17

Office laptop Home computer Personal laptop Sprint cell phone Text messages from January 21, 2009 – January 28, 2009 were recovered. Two SIM/memory cards linked Adams’ cell phone

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