11 12 13 14 15 16 a7 18 19 20 24 22 23 24 25 Page INTERVIEW OF MARGIE GOLDSCHMIDT July 30, 2007 (on cD) Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503~585~620110 1a 13 14 15 16 17 18 19 20 21 22 23 24 25 Page TRANSCRIPT OF INTERVIEW (Telephone connection not transcribed.) MS. GOLDSCHMIDT: Hello? MS. PARSONS: Hi, Margie? MS. GOLDSCHMIDT: Yes. fi MS. PARSONS: Hi. This is Shirley Parsons from DPSST again. How are you? MS. GOLDSCHMIDT: I’m fine. Thank you. MS. PARSONS: And I’m sorry I didn’t get back to you right away. I - MS. GOLDSCHMIDT: ‘That's okay. MS. PARSONS: Okay. I -- I apologize -~ MS. GOLDSCHMIDT: (unintelligible) time. MS. PARSONS: -- for that. MS. GOLDSCHMIDT: Yeah. This is a perfect time. MS. PARSONS: Oh, good. I’m sure that you’re probably aware of the fact that a fellow by the ‘name of Robert Kim sent a letter to DPSST listing -- there was kind of a laundry list MS. GOLDSCHMIDT: Yeah, I know. MS. PARSONS: -- of allegations against Sheriff Giusto and a request by him that we look into all of these allegations to see whether or not Bernie Giusto should be certified in the State of Oregon as a police officer. So when we. received this, we have to take a look at that list and go Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201,Page 1 |jover each and every one of the points to find out if it has any 2 |lmerit at all. And if has any merit, to kind of get down to the 3 |jbottom of it and find out what the facts are. And so that’s -- 4 [that’s what I’m doing ~~ is basically a fact finding mission. 5 MS. GOLDSCHMIDT: Yes. And I’m -- I’m aware of that. 6 ||? have never seen the list of allegations that he brought, but 7 || am -- I guess I’m probably sort of aware of the categories or 8 |Jwhat they fall into. 9 MS. PARSONS: Well, there -- there’ s a lot of them. 10 |}Some of them have to do with the time when you and Bernie were 11 ||seeing one another. Some of them have to do with the time that 12 |Ihe has spent as the sheriff. Some of it has to do with the 13 |}time he was the chief out in Gresham. So, I mean, did it -- 14 ||this list covers a variety of different things over many, many 15 |lyears. 16 NS. GOLDSCHMIDT: Um-hum (affirmative) . 7 MS. PARSONS: And so would -- I’m just! trying to take 18 |]them in order and ~~ and look at each one of them and see if 19 ||there’s fact to go with the allegation. And one of the -- one 20 lof the allegations is that -- that Bernie Giusto learned from 21 |jyou about the relationship that your ex-husband had had with -—- 22 ||I believe it’s one of his employee’s or neighbor’s daughter. 23 ||And a concern there is that Mr. Giusto may have used that 24 |[information in an attempt basically to blackmail your 25 |lex-husband into -- Business Support Services, Ine. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620111 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page MS. GOLDSCHMIDT: (Laughter) Oh, that's ~~ MS. PARSONS: Okay. MS. GOLDSCHMIDT: ©-- the most ridiculous thing I’ve ever heard. MS. PARSONS: And so like promoting him to lieutenant When he wasn’t maybe on the list to be promoted to lieutenant -- MS. GOLDSCHMIDT: -- well, first of all, you know, let’s just stop with that one. Okay. Firet’ of all, T don’t think that Neil -- Neil had nothing to do with him being prom -- promoted to Lieutenant. 1 don’t think Neil even knew that that was occurring -~ MS. PARSONS: Okay. MS. GOLDSCHMIDT: -~ Neil had absolutely nothing to do with it. MS. PARSONS: Okay. MS. GOLDSCHMIDT: And I think my -= my -- I don’t exactly recall, but I would guess that Bernie probably told him, “I’ve been promoted,” and Neii’s like, “Oh, that’s nice.” I mean, I don’t remember the occasion. But that -- that’s the most ridiculous thing I have ever heard. MS. PARSONS: Oh ~~ like I told you, not -~ not all of the allegations necessarily have merit. We just have to look at all of = MS. GOLDSCHMIDT: Yes -- . Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201ao oe wn 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page MS. PARSONS: ~-~ them. MS, GOLDSCHMIDT: I know, and I will address some of these things. And some of them 1 probably won’t. But this one is rid -- is -- is absolutely ridiculous. 1 -- there's no ~~ it’s just complete nonsense. i MS. PARSONS: All right. When apparently you learned through your husband about this relationship: and what I’m hearing is that your husband heard it from your brother? MS. GOLDSCHMIDT: No. That is absolutely -- MS. PARSONS: Okay. MS. GOLDSCHMIDT: -- not true. My brother never talked to -~ my hus -~ my brother never talked to Neil about that situation or Bernie or -- as far as I know. My brother had nothing -- and that was -- you know, I read Fred Leonhardt’s letter. MS. PARSONS: Right. io MS. GOLDSCHMIDT: And I went on line dnd read that. And I went through and highlighted at least 12 things that Fred had in there that. wore sinaccurat MS. PARSONS: All right. Well, I have -- MS. GOLDSCHMIDT: (unintelligible) MS. PARSONS: -- all of the stuff that he said, too. Prom -~ MS. GOLDSCHMIDT: And I’m not necessarily going to go through every one of these with you because my relationship Business Support. Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 1 12 13 14 15 16 17 18 19 20 ar 22 23 24 25 Page with Bernie is -- as far as I’m concerned -- a private matter that I will not address. But I will address some of these things that are just, you know -- as I said that -~ my brother never had a conversation with Neil. MS. PARSONS: All right. And ~~ and your ‘relationship with Bernie, again, is not part -~ part of the scope of this investigation at all. MS. GOLDSCHMIDT: Okay. All right. MS. PARSONS: That's -- that really makes no difference to anyone. I mean -~ MS. GOLDSCHMIDT: Okay. (unintelligible) -~ MS. PARSONS: =~ with regard to this investigation. MS. GOLDSCHMIDT: Okay. MS. PARSONS: Infor -~ MS. GOLDSCHMIDT: I -~ MS. PARSONS: -- information that -- that he may have learned from a friendship with you, that would be more of something that we would look at. People learn things from different friends MS. GOLDSCHMIDT: Right. Well ~~ MS. PARSONS: ~-~ and the fact -~ MS. GOLDSCHMIDT: -- you know, the facts of the matter is that whatever Bernie learned and whenever he learned it, it was so far past these -- this event - MS. PARSONS: Um-hum (affirmative) . Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201oa 8 10 11 12 13 14 is 16 17 18 1g 20 21 22 23 24 25 Page 7 MS. GOLDSCHMIDT: -- there -- it had =- it was way past the -~ the statute of limitations, There was nothing that he could have done about it. There were, I think, people who knew about it perhaps when it was happening. I was not one of them. And so if anybody was going to do anything about that, they had to have done it much earlier and there was -~ you know -- so I think that whole situation is ridiculous, too -- the notion that Bernie should have done something about whatever he learned whenever he learned ity " MS. PARSONS: Um-hum (affirmative). MS. GOLDSCHMIDT: That -~ MS. PARSONS: Yeah. I my ~ MS. GOLDSCHMIDT: There nothing that he -- he could have done. MS. PARSONS: No, you're right. There wasn’t. And you are correct in that. And, again, that legally -- you know, I’ve taken a look at that and a number of peopld have taken a look at that and I think that a lot of them are coming to the same conclusion that you.just-(uninteliigidle) - MS. GOLDSCHMIDT: Well, there was just nothing. I mean, if somebody was going to do something, then it was somebody else long -- much earlier. MS. PARSONS: Exactly. And how -- how much later did you actually learn about it? Because it’s my understanding that you weren't the first person to hear about it? Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 9730) 503-985-6201,a. 12 13 14 15 16 a7 18 19 20 21 22 23 24 25 Page MS. GOLDSCHMIDT: No, I -- I didn’t know about it until Neil was governor. MS. PARSONS: Okay. MS. GOLDSCHMIDT: I knew absolutely nothing. MS. PARSONS: Okay. And, again, I’m going to have to &sk you because it’s in the -- in the list of things is that you =~ MS. GOLDSCHMIDT: And I’m not going. to talk to you about whatever I may or may not have said+to Bernie. MS. PARSONS: Okay. But what I have heard is that your husband told you about this information. That you actually received it from him as opposed to some third party? Ms. GOLDSCHMIDT: Yes, I did. Yes, I did. MS. PARSONS: Okay. MS. GOLDSCHMIDT: 1 did. MS. PARSONS: All right. And at some point in time, Bernie became aware of this information and at Teast it’s my understanding that he had heard about this again while your ex-husband was still th. gc + Is-thai correct? MS. GOLDSCHMIDT: That you have to ask him. I mean, you would have -- you have to ask him when he first heard about this or whatever. But as far as I know, he -- I’m not aware that he -- T don’t know when he first heard about this. But I do believe that it was well after he started to work for Neil. I don’t know that -- I’m not aware that he knew anything about Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201Page 1||this -- 2 MS. PARSONS: Um-hum (affirmative). 3 MS. GOLDSCHMIDT: -- prior to Neil becoming governor. 4 MS. PARSONS: Okay. So when he -- when he accepted 5 ||the position ~~ 6]! MS. GOLDSCHMIDT: 1 don’t think -- I’m not -- all I 7 |lcan tell you is that I am not aware that he knew anything about 8 ||this. I’m not telling you he did or he didn’t, but I -- 9 MS. PARSONS: You don’t think he:-~ 10 MS. GOLDSCHMIDT: (unintelligible) 11 MS. PARSONS: -- you don’t think he did though 12 ||before -- 13 MS. GOLDSCHMIDT: No. No, I don’t, 14 MS. PARSONS: Okay. 15 MS. GOLDSCHMIDT: I don’t think he Be LoP ee eer eet 16 MS. PARSONS: Okay. And then -- 17 MS. GOLDSCHMIDT: -~ there --no, : 18 MS, PARSONS: And then when -- by the time Neil left 19 |]the position as governor - ee 20 MS. GOLDSCHMIDT: You have to ask Bernie what he 21 || knew. 22 MS. PARSONS: Right. Okay. But it would se -- seems 23 ||more likely that he at least knew something about it at that 24 |[time. and - 25 MS. GOLDSCHMIDT: Yeah. He -- he acknowledges that Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 11 12 13 14 15 16 a7 18 19 20 2l 22 23 24 25 Page 1 he did. MS. PARSONS: Right, And do you know if he —~ and I don't -- I don’t know that he was or =~ or not at all -- but was he ever involved in any of the negotiations -- MS. GOLDSCHMIDT: No, 4 MS. PARSONS: ~~ with -~ MS. GOLDSCHMIDT: Not that I’m aware of, no. He had absolutely nothing to do with any of that. And what -- what he even knew about it, I don’t know. You know,’ I was pretty close mouthed about everything because my children were -~ my -- my biggest concern was that my children be protected from this Ms. PARSONS: That was the most important thing, too. MS. GOLDSCHMIDT: Yes. That was all I cared about, and so ~~ MS. PARSONS: Yeah, MS. GOLDSCHMIDT: -- as I said, I -- and then the negotiation for, you know, the settlement didn’? occur until long after Neil was out of the governor’s office. And what oe, ae MS, PARSONS: Right. MS. GOLDSCHMIDT -- that did not occur until Neil was gone from that position. MS. PARSONS: Again, that’s the same information that I have, so ~~ MS. GOLDSCHMIDT: Yes. Business Support Sorvicos, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201won 10 a 12 13 14 15 16 17 18 19 20 an 22 23 24a 25 Page 1y MS. PARSONS: -~ and that occurred later on at some point in time, I guess when it was during divorce proceedings, and ~~ MS. GOLDSCHMIDT: No, it was not during divorce Proceedings. é MS. PARSONS: Okay. So that’s -- MS. GOLDSCHMIDT: -- we we were already ~~ MS. PARSONS: -~ information ~~ MS. GOLDSCHMIDT: -~ divorced. ‘+ MS. PARSONS: All right. MS, GOLDSCHMIDT: We were divorced when he -- this settlement situation took place, and he was married -- MS. PARSONS: Okay. MS. GOLDSCHMIDT: -~ to Diana. MS. PARSONS: Oh, okay. So you were -- when did you -- now, when did you guys get your divorce then? You were out of the -- he was out of the governor's offide. Right? MS, GOLDSCHMIDT: Yes. And I was -- we were divorced -- oh, gosh, officially t guess in 2990, T vuppose. But I -- I have to tell you, I’d have to actually look at my decree because I I have no memory for dates. And you ask me dates, I can’t -~ but -- MS. PARSON: + Um-hum (affirmative). MS. GOLDSCHMIDT: -- but I think it was something like 19 -- either 1990 or '91 when we signed papers. That’s Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 1 12 13 14 15 16 a7 18 19 20 al 22 Page 1 what T can’t tell you without: looking. MS. PARSONS: Right. MS. GOLDSCHMIDT: But -- but this -- the settlement that came with this young woman came long after we were divorced and when he was actually remarried. 7 MS. PARSONS: All right. Long aft -- all right. Long after divorce and he was remarried. MS. GOLDSCHMIDT: And Neil was remarried. MS. PARSONS: And then obviously, because you've read the Fred Leonhardt statement, he has said that on at least several occasions, he and his wife socialized with you and Bernie, and then at least on one occasion also with Ted and Mary and -- at your home? MS. GOLDSCHMIDT: Yes, that is correct. And I -~ MS. PARSONS: Okay. MS, GOLDSCHMID?: yes. MS. PARSONS: Okay. And he -- $ MS. GOLDSCHMIDT: And frankly I have to tell you, those are the kinds of things Berrie dzesa’> necessarily ~ remember, so ~~ you know, if Bernie says they didn’t happen or that he doesn’t remember, he is being accurate about that. Because I know him well enough to tell you that if I said to him, “Do you remember this and this?” He’ 11 look at me and say, “No.” I mean, he just doesn’t -~ he’s got a male’s brain, if I can put it that way. Females remember -- Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 a. 12 13 14 15 16 17 18 19 20 2. 22 23 24 25 Page 1 MS. PARSONS: Chuckles.) MS. GOLDSCHMID?: those things, and men do -- oftentimes do not. So when he says I -~ that didn’t happen, lt’s because he really doesn’t remember whether it did or not. MS. PARSONS: Did -- did you do a lot of entertaining then at that point in time, like were there parties and different things where maybe he wouldn't recall who was at one party or who was -~ and who was at another? MS. GOLDSCHMIDT: Would he -- he: wouldn’t necessarily, but -- MS. PARSONS: Right. MS. GOLDSCHMID! But, you know, we were together for 15 years -- he and I. MS. PARSONS: Um-hum (affirmative) . MS. GOLDSCHMIDT: It was -~ and ~~ MS. PARSONS: A long time, yeah. MS. GOLDSCHMIDT: Yeah. Very long title. And, yes, I -~ I have always done a lot of entertaining. MS. PARSONS: ” Would you say. that-the Leonhardis were close friends of yours? MS, GOLDSCHMIDT: No, I would not exactly say that. We saw them -- I saw -- I was -- ex -- extended myself to be a friend to Fred Leonhardt who was -- I would point out to you -- Fred has not had a job since he was Neil’s speechwriter. And there -- it -- this is a person who is very angry because he Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620114. 12 13 14 15 23 24 25 Page ad didn’t get hired by the governor to be his speechwriter. And I have to tell you that I’m very -- I mean, I was very disappointed because I extended myself to be a friend to -- to Lynn (Phonetic) -- or to Fred, And I don’t think that Bernie and Fred saw each other socially alone much at all, if at all. fonce -- MS. PARSONS: Um-hum (affirmative). was ~~ MS. GOLDSCHMIDT: -~- we were out of, office. MS. PARSONS: Were -- wt MS. GOLDSCHMIDT: Neil was out of office. MS. PARSONS: -- were the Leonhardts more your friends than they were Neil's friends? MS. GOLDSCHMIDT: You know, they -- they were -- they were part of Nejl’s office staff, MS. PARSONS: Um-hum (affirmative). MS. GOLDSCHMIDT: And in that -- in that sense, you know, we -- everybody socialized together becauge I had lots of parties for his whole staff. MS. PARSONS: Um-hum (affirmative). Pt MS. GOLDSCHMIDT: But they were not close friends of Neil -~- you know, Neil -- I don’t even know -- I mean, I really don’t know how to answer your question. MS. PARSONS: Would -- MS. GOLDSCHMIDT: We were all of a member of a kind of -- an office staff family. Business Support Services, Inc. 960 Broadway NE, Sulte 3, Salem, OR 97301 503-585-6201Page a 1 MS. PARSONS: When -- when you and Neil split up, you 2 ||were divorced and -- and you were with Bernie and -- and he’s 3 ||wherever he is, and you invited Fred and Christy over to your 4 |[place, do you think that he had that sort of a relationship 5 |Jalso with Neil, or was -- 6|t MS. GOLDSCHMIDT: No. 1 MS. PARSONS: -~ was that more with you than 8 |] (unintelligible) -~ 9 MS. GOLDSCHMIDT: No, it was more with me. 10 MS. PARSONS: All right. So I’m assuming then you 11 |/must have gotten along with his wife through -- during that 12 || time? 13 MS. GOLDSCHMIDT: I -- yes. I mean, as far as I 14 |/know. But I -- I always liked her. 15 MS. PARSONS: Um-hum (affirmative). 16 MS. GOLDSCHMIDT: I mean -- but we didn’t -- she and 17 |] didn’t socialize together individually. and, ‘you know, 18 |/the -- the time we had dinner with ~~ with the governor, it i34yJwas -- you know, it was -~ it was partly becaus, Towouted Le 20 ||have a chance to talk to Mary, his wife. And I am friends with 21 |[her. 22 MS. PARSONS: Um-hum (affirmative) . 23 MS. GOLDSCHMIDT: And -~ but no -- I mean, you know, 24 |/Fred is -- this is -- I don’t know. As I said, I had lots of 25 |lparties. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 41 12 13 44 15 16 a7 18 Page 1 MS. PARSONS: Um-hum (affirmative). And at that particular dinner party when you had the Leonhardts and Kulongoskis over, were there any other couples or was it just the six of you? MS. GOLDSCHMIDT: It was just the six of us, And IT bm not aware that there was any conversation during that party about anything except Ted’s running for office. There was no conversation about anything else that I’m aware of. Certainly not about Neil or -- wt MS. PARSONS: Did you ever feel like there was some -- that Fred had some animosity toward Neil at all and if -- MS. GOLDSCHMIDT: Well, Fred had a lot of animosity towards the whole world. MS, PARSONS: Okay. MS. GOLDSCHMIDT: I mean, Fred is just an angry person. He’s a very talented individual, and I’think 1 will point out to you that after Neil left office ~~ 1 mean, there -- there’s a lot of inconsistencies in .whoat- Pred ras to’ ~ say. After Neil left office, he asked Fred if he wanted to write some speeches for him because he assumed that he would be giving some speeches as an ex-governor and -- MS. PARSONS: Um-hum (affirmative). MS. GOLDSCHMIDT: -- and Fred -- Fred was quite happy to say yes and to do that for Neil. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 903-585~620110 a. 12 13 14 22 23 24 25 Page MS. PARSONS: Okay. MS. GOLDSCHMIDT: And then I think that it didn’t really work out very well because Neil ended up kind of doing his own stuff. And doing other things. And so, you know, Fred -- as I say ~~ was perfectly happy at that point to -- to do some work for Neil. And if he had this great sense that Neil was, you know, some evil person then -- then it wouldn’t have made sense for him to -- to say yes,, he’d -- but, yeah, Neil -- Fred is a very insecure person and:Neil -- Neil likes Fred fine. Neil likes Fred a lot. Neil thought Fred was a good speech writer. MS. PARSONS: Um-hum (affirmative) . MS. GOLDSCHMIDT: There was no animosity on Neil's part at all. MS. PARSONS: All right. MS. GOLDSCHMIDT: And I -~ as I’m saying, Fred is just an unhappy individual who -- 7 MS. PARSONS: Did -- ree MS. GOLDSCHMIDT: I -~ I feel sorry MS. PARSONS: All right. Did -- MS. GOLDSCHMIDT: And let me ask you something. MS. PARSONS: Sure, Go right ahead. MS. GOLDSCHMID' In the course of whatever you -- when you come to the point in time that you are going to announce your findings in this suit or whatever you want to Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201 Vyse 12 13 14 15 16 17 18 21 22 23 24 25 Page a iq call it, is all of this input that people have going to become public? MS. PARSONS: Some it depends on how far the entire investigation.goes. My part in it is just a fact finding. ' MS. GOLDSCHMIDT: Because I don’t particularly want to be quoted as -- you know, and Margie Goldschmidt said this, this, this, and this. I mean, I -~ because my inclination really was to tell you that the whole business was just totally unwarranted and let it go at that. So I’m actually giving you a lot more information than -- talking to you a lot more than I ever intended to. MS. PARSONS: Well -- but you've cleared up a lot of -- MS. GOLDSCHMIDT: Yeah. MS. PARSONS: -- different things -- MS. GOLDSCHMIDT: Okay. i : MS. PARSONS: -- because ~~ fice set MS. GOLDSCHMIDT: - All right. 3 ~ MS. PARSONS: -- some of the things that -- some of the information we have -~ particularly that your -~ you said your brother is not the one who, you know, came to Neil and then Neil came to you about -- MS. GOLDSCHMIDT: No. MS. PARSONS: -- this incident. Business Support Services, Inc 960 Broadway NE, Suite 3, Salem, OK 97301 503-585-6201wor a1 12 13 14 1s 16 17 18 sehD 20 ai 22 23 24 25 Page MS @MQMMPumipr: No, he didn’t. No, There's just -~ there's a ton of that all the way through. And there -- there’s discrepancies. The -- the young lady was never my babysitter. She never babysat for me, you know, and there's just a lot of stuff in there that’s -~ and I -- that just -- MS. PARSONS: Now -- but -~ again, now her mom apparently worked in the office -- this was in the mayor's office? nt MS. GOLDSCHMIDT: Yes, she did. MS. PARSONS: Okay. MS. GOLDSCHMIDT: What -- this young lady did -~ was not my babysitter. MS. PARSONS: All right. MS. GOLDSCHMID’ : Never. MS. PARSONS: And was she -- so she was just a neighbor lady then that ended up working for yollr husband at the mayor’s office? . GOLDSCHMIDT: Yes. MS. PARSONS: All right. And now, you ~- your brother -- you said -- MS. GOLDSCHMIDT: My brother had nothing -- not a single solitary thing to do with this in any way, shape or form. MS, PARSONS: Okay. Let me tell you -- let me tell Business Support Services, The 960 Broadway NE, Suite 3, Salem, OR 97302 503-585-6201,Page 2 1 |}you what I’ve heard is that the mom, Mrs. 33MM (Phonetic), 2 |lcame to your brother -~ and I don’t even know if they know each 3 |lother -- 4 MS. GOLDSCHMIDT: Yes. Yes, they do. They were next 5 ||door neighbors. 6 |It MS. PARSONS: Okay. And -- and which brother was the 7 ||next -- which one was that? Because. you have two. Right? 8 MS. GOLDSCHMIDT: Yes. But do I need -- I’m not 9 |lparticularly -~ his name is not even relevant. 10 MS. PARSONS: Okay. The only reason is that I would 11 |[call him and just say, “Hey, are you the one that called Neil?” 12 |[so that I can say that I called him and he said no, it wasn’t 13 |]me. 14 MS. GOLDSCHMIDT: No, I’ve already talked to him, 15 |/And I asked him that. And my brother’s like what? No, I’m 16 |[not I don’t want to give you his name. I don’t want him 17 |lcalled. 1 want him left alone. Not that he wold be bothered. 18 |/But I asked him point blank. And my brother is -~ vo MS c-PARSONS: He did ~~ 20 MS. GOLDSCHMIDT: -~ extremely honest and if he had 21 ||talked to Neil, he would have said. And no, he didn’t. And I 22 || knew he didn’t. 23 MS. PARSONS: Okay. Can you do me a favor and talk 24 |[to him and ask him if he would give us a quick call? 25 MS. GOLDSCHMIDT: I will -~ I will give him -- yeah, Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 11 22 23 24 25 Page aq 1/11 be happy to give you his -- his number. MS. PARSONS: Okay. MS, GOLDSCHMIDT: But -- MS. PARSONS: Yeah, that’s great. MS. GOLDSCHMIDT: -- (unintelligible) -~ MS. PARSONS: If you'd -- MS. GOLDSCHMIDT: I will MS. PARSONS: -- just give him our number. MS. GOLDSCHMIDT: -- give him your number, and -~ MS. PARSONS: Yeah. MS. GOLDSCHMIDT: -~- and I will tell you that, no, he did not talk to Neil. MS. PARSONS: And that’s -- that’s perfect. And if he can -- if he even just calls even if we’re not here -- MS, GOLDSCHMIDT: And just leaves a -- MS. PARSONS: And just says “Ai, ” you know, this is so and so and I am —~ you know, I’m Margie’s bréther. No, I did not talk —~ ©MS. GOLDSCHMIDT: Yeah. Okay. MS. PARSONS: -- to -- you know, whatever he needs to. say MS. GOLDSCHMIDT: I will ask him ~~ MS. PARSONS: -~ that -- MS. GOLDSCHMIDT: ~-- to do that. MS. PARSONS: -- that would be just perfect. Business Support Services, Inc 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201wor a 12 13 ua 15 16 17 18 19 20 al 22 23 24 25 Page 22 MS. GOLDSCHMIDT: Okay. MS. PARSONS: And so was there any particular incident then that precipitated your ex-husband into coming to you and talking to you about the incident? MS. GOLDSCHMIDT: Uh -- MS. PARSONS: Was somebody threatening him at all? MS. GOLDSCHMIDT: Let me -= no, but I think that -- that -- yes, the -- the young lady was. There was some -- I mean, this has all -- all been in the newspapers -- this part of it. MS. PARSONS: I -- I know, but you know what? I hate trying -- I hate getting my news -- MS. GOLDSCHMIDT: Okay. (unintelligible) yes ~ MS. PARSONS: -- from the newspaper because -- MS. GOLDSCHMIDT: ~~ the young lady was talking about -- about suing him. And -- and he ~~ at that point, he did come to talk to me, MS. PARSONS: Okay. So my guess is he was probably contacted by an aiivrney for her or by some emissary of hers. then and not some -- not a neighbor or a relative or a friend of -- MS. GOLDSCHMIDT: No. MS. PARSONS: -~ yours? MS. GOLDSCHMIDT: No. That that would probably be accurate, but I can’t even -- I can’t tell you exactly who Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201, 110 1 12 13 14 15 16 a 18 19 20 21 22 23 24 25 Page 2 talked to him because I don’t know. MS. PARSONS: Okay. MS. GOLDSCHMIDT: But I do know it wasn’t my brother. MS. PARSONS: All right. That's -- that’s fine. Like I said, there’s so many things -- ‘ MS. GOLDSCHMIDT: Yes. MS. PARSONS: in here that it takes a long time to just kind of wade -- MS. GOLDSCHMIDT: Right. ” MS. PARSONS: -~ through them because the person who sent the original letter is -- is giving us all second and third and fourth hand -~ MS. GOLDSCHMID' Of course, he doesn’t even know Bernie. MS. PARSONS: Exactly. And so it’s -- so like -~ MS. GOLDSCHMIDT: You know Ae MS. PARSONS: -~ it makes it really difficult because -— MS. GOLDSCHMIDT: Yeah. MS. PARSONS: -- this guy -- MS. GOLDSCHMIDT: Yeah. MS. PARSONS: -- doesn’t have any firsthand information -- MS. GOLDSCHMIDT: No, he doesn’t. And a lot of his information is -- is inaccurate or it’s all -- it’s been in the Business Support Services, Inc 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 11 13 14 15 16 ay 18 19 20 21 22 23 24 25 Page 2d paper, Tt’s been dealt with. It’s just -- you know, it’s a ridiculous thing because it’s a lot of people’s time. Costs the State money to do this. Costs Bernie work time and stress, and it's -- MS. PARSONS: Oh, yeah. I -- I know. And ~~ Y MS. GOLDSCHMIDT: ~~ nonsense. MS. PARSONS: You know, we’re working obviously with, you know, people in his office so that he doesn’t have to deal with all of this -- eee MS. GOLDSCHMIDT: Right. MS. PARSONS: -- because he’s got other staff to -- to handle it. But just in talking to you, there are a number of things that you've told us that say that this piece of information was inaccurate. This one’s inaccurate. This is inaccurate. This is inaccurate. And that’s what we have to find out because -- MS, GOLDSCHMIDT: Right. ua MS. PARSONS: -- as we go through here -- as we go through this-taundry-Kist’ of events -~ MS. GOLDSCHMIDT: Yes, I understand the process, believe me. So what -- MS. PARSONS: Yeah. MS, GOLDSCHMIDT: -~ what’s next on your list? MS. PARSONS: When you were at -- at that ~~ that one party -- you said that you -- Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201ao Rw 10 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 2g MS. GOLDSCHMIDT: I have never been -- I have never been aware of any conversations going on about this subject at my parties. I am totally unaware of their occurrence. MS. PARSONS: Okay. And no one ~~ MS. GOLDSCHMIDT: And -- f MS. PARSONS: -- and no one said anything to you about any of that sort of thing -- MS. GOLDSCHMIDT: No ~~ MS. PARSONS: ~~ afterward -- MS. GOLDSCHMIDT: Never. MS. PARSONS: Okay. MS. GOLDSCHMIDT: And it -- and I have to tell you, T would've -~ well, no, there was -- Bernie never said that there was a conversation going on. I am absolutely unaware of them. MS, PARSONS: Or Mary or -~ you know ~~ MS. GOLDSCHMIDT: No, and I -- MS. PARSONS: -- or Christy -- MS. GOLDSCHMIDT: -~- will tell you, no. MS. GOLDSCHMIDT: Chris -~ Christy never said anything. I am of the opinion that the governor did not know this because of my conversations with Mary. I do not think -- and, you know, I don’t know if you know her or know him, but they are sort of the straight arrow people of the world. MS. PARSONS: Okay. Yeah, No -~ and I don’t ~- Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201we Roe 10 11 12 13 14 is 16 aw 18 19 20 au 22 23 24 25 Page 2g MS. GOLDSCHMIDT: And T am not ~~ MS. PARSONS: -- know them, MS. GOLDSCHMIDT; Oh, Well, I/1l tell -~ I mean, I -- I -- pointblank -- I mean, I’d asked Mary and she didn’t 4 MS. PARSONS: Yeah. See, the thing -- MS. GOLDSCHMIDT: Yeah. MS. PARSONS: -- the thing is I really -- I don’t know pretty much all of the people involved in this -- MS. GOLDSCHMIDT: Yeah. No -~ MS. PARSONS: -- which is -- MS. GOLDSCHMIDT: -- she did -- she didn’t know any of this and so I am not aware of any conversations. MS. PARSONS: All right. You -- because you know more about what went on then I do by far -- MS. GOLDSCHMIDT: Well, I wouldn't count on that, MS. PARSONS: Well, trust menvon know plenty more than I do. But the -~ is there -+ are there things that you think that I shoutd be-duoking at during the course of this investigation that I haven’t thought to ask you or things that I should ask somebody else that you think would be important in this investigation that ~~ MS. GOLDSCHMID! No, not particularly because I have to tell you that -- that a lot of what I know ~~ although I have -- I do have a very close and very good relationship with Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620111 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 2) my hus -- ex-husband -~ MS. PARSONS: Um-hum (affirmative). MS. GOLDSCHMIDT: -- a lot of what I know, I learned from the newspaper. Okay? MS. PARSONS: Okay. i MS. GOLDSCHMIDT: 1 did not ask him a lot of questions. TI have chosen not to, And no, I don’t -- there’s nothing that I could tell you to ask anybody... I think that there are a lot of people whom -- people +- people would say they -- they thought they knew like -- and they didn’t know. A lot of people who worked for Neil didn’t know. A lot -- and there are probably people who know that -- knew about all of this that -~ MS. PARSONS: Um-hum (affirmative). MS, GOLDSCHMIDT: -- I had né idea that they did know. I mean, I just ~~ : MS. PARSONS: Yeah. That -- that happens. MS. GOLDSCHMIDT: (unintelligible) ~ MS.. PARSONS: ~ Acd-if Ubere are things in there that you know that are patently untrue -- MS. GOLDSCHMIDT: Well, I know, for example, that -- that people who worked for him -- like Tom Imeson didn’t know -- I mean, I know those kinds of things. I know he didn’t. And I am of the belief that the governor didn’t, and neither did his wife. But -- so I -- Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201so ee wn 10 4 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 2a MS. PARSONS: Okay. MS. GOLDSCHMIDT: You know -- MS. PARSONS: -~ and see those are the kinds of things that -- MS. GOLDSCHMIDT: I can’t tell you much more than that. MS. PARSONS: Yeah. MS. GOLDSCHMID: I mean, I just -~ because I have never gone around and asked my friends, “Bid' you know? What. did you know?” I’ve never done that. MS. PARSONS: Well -~ and probably your friends would not have known anyway, because -- MS. GOLDSCHMIDT: No. MS. PARSONS: -- had they, they probably would have said something to you about it. MS. GOLDSCHMIDT: Well, that’s probably -- I don’t know. I know there are a few people that ‘did know something that never said anything, and that surprised me. But there are alsc,..you. know ---kt’s avery difficult decision to make on people’s parts. “Do I just keep this to myself? Do I tell somebody?” MS. PARSONS: Well -- and they’re going to be some people who are going to want to protect you and your children, too. MS. GOLDSCHMIDT: Yes. And so I really -- there's Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 11 12 13 14 15 16 a 18 19 20 ai 22 23 24 25 Page 2g nothing I can tell you that hasn’t already been trendled (phonetic) through the newspaper in one way or another. And I do believe that this is an issue that -- that shouldn’t have fallen in Bernie's lap. I -- I don’t know enough about the -- the things having to do with his own department -- to have any bpinion about that at all. MS. PARSONS: Right. And we -~ MS. GOLDSCHMIDT: But I -- I do not. think that he should have been stuck with this one in any way, shape or form. MS. PARSONS: Well, it’s right now it got sent down to us and so -- Ms. GOLDSCHMIDT: Yeah. MS. PARSONS: -~ we have to do it. And, you know, when we find things -- when we can find something out that’s not true in the allegations and we can take a particular one and just dismiss it -- MS. GOLDSCHMIDT: Yeah. MS. PARSONS: -~ then that -- that allows us to go on and move on to som Se timsteads— MS. GOLDSCHMIDT: Right. MS. PARSONS: -- of spending -~ you know, spending a lot of time and spinning our wheels on things that are not accurate information. MS. GOLDSCHMIDT: Yeah, Okay. MS. PARSONS: And so like talking to you and finding Business Support Services, Inc. 960 Broadway Nk, Suite 3, Salem, OR 97301 503-585-620110 1 12 13 14 15 16 a 18 19 20 aL 22 23 24 25 Page 3q out that certain things are inaccurate keeps us from having to waste a lot of time on that. MS. GOLDSCHMIDT: Right. MS. PARSONS: Because then we can move on to something else and get through this whole thing a lot more auickly. MS. GOLDSCHMIDT: Yeah. MS. PARSONS: And so a lot of times, it’s -~ it’s easier to -- to disprove an allegation and,-~ and take it out of the whole mix than -~ MS. GOLDSCHMID* Right. MS. PARSONS: -- it is to -- MS. GOLDSCHMIDT: Yes, I under -- MS. PARSONS: -- prove some things. MS. GOLDSCHMIDT: I understand that. MS. PARSONS: So even -- so the thing is, information that you provide helps us, you know, either way! Things -- MS. GOLDSCHMIDT: Okay. MS. PARSCNS3.%es-bhinys'thatyyou have said, “No, this didn’t happen. This didn’t happen. This didn’t happen,” that helps. MS. GOLDSCHMIDT: Okay. MS. PARSONS: So, yeah, I think you have our number, the e ~~ yeah, you do, the 378-2305 -- MS. GOLDSCHMIDT: Yeah. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 page 3] MS. PARSONS: And if you have any ~~ any other information as you go through -- if you go through Mr. Leonhardt’s statement again and there’s something that jumps out -- MS. GOLDSCHMIDT: Yeah -- MS. PARSONS: -- at you -~ MS. GOLDSCHMID! : I -- well, I’11 tell you that I know that Bernie has no recollection of ever meeting that young woman. . MS. PARSONS: Okay. Because one of the allegations was that he met her at one time in -- in a café when ~~ MS. GOLDSCHMIDT: Yes. MS. PARSONS: ~~ when she spoke -- MS. GOLDSCHMIDT: -- right -- MS. PARSONS: -- with your ex. MS. GOLDSCHMIDT: -- they saw her. And he has no ~~ no recollection of that occurring. And he says; you know, “Perhaps I was there having a drink with them. Maybe I'd already left,” but he savs he-does aot recall that at all. And as I told you ~~ MS. PARSONS: Um-hum (affirmative) . MS. GOLDSCHMIDT: ~-- I -- I believe -- I believe that -- that if he says he doesn’t remember it, he probably doesn't, And so whether it happened or not, I have no idea. But he just looks ~~ Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201,10 11 12 13 4 16 1 18 19 20 al 22 23 24 25 Page 34 MS. PARSONS: Um-hum (affirmative) . Ms GOLDSCHMIDT; -- at -- you know, he -- he does not recall that. ; MS. PARSONS: Okay. And, again, you know, if T have any questions, you know, I’d like to be able to just give you a tall, if that's okay. And then if you could have your brother call us. MS. GOLDSCHMIDT: I will have him call and just leave a message saying that (unintelligible) -->. MS. PARSONS: Yeah. Or he can talk to us -- MS. GOLDSCHMIDT: -- (unintelligible) -- MS. PARSONS: -- (unintelligible) leave a message. Doesn’t make any difference. And then if you go through Mr. Leonhardt’s statement again and there’s something that I have forgotten to cover ~~ MS. GOLDSCHMIDT: Well, I’11 give you a couple of just other examples. It -- it suggests that Didnay his -- Neil’s wife, found out about this when this young woman brought this suit. casey MS. PARSONS: Um-hum (affirmative). MS. GOLDSCHMIDT: That's not accurate, MS. PARSONS: Okay. MS. GOLDSCHMID' I know that Neil did not marry her without discussing this with her. MS. PARSONS: Okay. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201eo eo 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25. Page 33) MS. GOLDSCHMIDT: TI also noted something about Neil’s onerous alimony and had to laugh at that. MS. PARSONS: Okay. Yeah. I think that there was something in there about you wanted more alimony or something? MS. GOLDSCHMIDT: No, no, no, no. Not that I wanted thore alimony. It just simply said something about the alimony in -- in a way that was -- MS. PARSONS: It kind of intimated that -- that -- MS. GOLDSCHMIDT: That Neil was+r-'yeah. There was an inaccurate take on Neil’s alimony to me. MS. PARSONS: Okay. MS. GOLDSCHMIDT: I am -~ I am financially independent and yes, he had to pay some alimony. But I don’t know. It was just -- it was one of those things like -- why -~ how does Fred come up with that description? He has no idea of anything about what the alimony was. MS. PARSONS: Okay. I remember that.’ That had to do -- MS. GOLDSCHMIDT: xe: MS, PARSONS: -~ with apparently -- I think the whole thing was that you -- that he had to unseal -- MS. GOLDSCHMIDT: Yes, he did. MS. PARSONS: -- the div -~ MS. GOLDSCHMIDT: In order to -- to explain what his finances were. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201wn 10 1 12 13 14 15 16 a7 18 19 20 ai 22 23 24 25 Page 34 MS. PARSONS: Because -~ and I think the intimation was because maybe you wanted more money and he had ~~ MS, GOLDSCHMIDT: No, no, no -~ MS. PARSONS: -- to prove that he didn’t have it -- MS. GOLDSCHMIDT: =~ I -~ ' MS. PARSONS: ~-- because he was making -~ MS, GOLDSCHMIDT: No, no (unintelligible) -- MS. PARSONS: ~-- paying the young lady some money. And so he didn’t have the money to pay you,-* I think is how the whole -~ MS. GOLDSCHMIDT: No MS. PARSONS: -- thing went. MS. GOLDSCHMIDT: -~ or that he didn’t have -- but whatever it was -- you know, he would ~~ it was just -- I think in those kinds of cases, that’s kind of typical. But whatever the -- the take was on the alimony, it was not accurate. Not accurate that Diana found out at that point. I ’doh’t remember what all there was. But there was -- oh, there was other stuff in there that Bernie and I shovedsug-atee Halioween party wearing matching costumes -- that he mentioned. And it -~ and -- and we did show up. We happened to be dressed in high school kind of things, and there -~ it suggested that somehow we had planned that. And that was totally inaccurate. MS. PARSONS: Well, I have to tell you that’s the kind of thing that ~ Business Support Services, tne. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 u 12 13 14 15 16 W 18 19 20 21 22 23 24 25 Page 3 MS. GOLDSCHMIDT: That was not accurate ~~ Ms PARSONS: -- that we ~~ MS. GOLDSCHMIDT: I -~ I -- MS. PARSONS: -- yeah. MS. GOLDSCHMIDT: I wore a little rally squad outfit. My daughter was on rally squad. I borrowed one from one of her -- and Bernie showed up, I think, in some kind of a letterman’s jacket. But there was no -~ at no -- planning on that and I remember seeing him and just laughing. And saying, “Hey, you know, we look like we went to high school together,” or something. But it was not at ~~ it was -- the -~ what it suggested was totally inaccurate. MS. PARSONS: Well ~~ and I have to tell you, again, that -- that doesn’t even come under the scope of our investigation. That -- that’s -- MS. GOLDSCHMIDT: No, I understand MS. PARSONS: Yeah -- ‘ MS. GOLDSCHMIDT: ~-- (unintelligible) ~- MS. PARSONS: Yet aot even -- that’s yeah, thats } not even the sort of thing -~ MS. GOLDSCHMIDT: But the point is that there were so many ~) MS. PARSONS: -- inaccuracies -- MS. GOLDSCHMIDT: -~ things in there like that. MS. PARSONS: Yeah. Business Support Services, Inc. 960 Broadway NE, Suite-3, Salem, OR 97301 503-585-620110 a 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 36] MS. GOLDSCHMIDT: Inaccuracies in there. MS. PARSONS: And, again, like I -~ I told you before, we’re not looking into your -- you know, your friend -- you know, your long term friendship -- MS. GOLDSCHMIDT: Right f MS. PARSONS: -~ with -- with Bernie at all. Thats -- that’s -- again, a private matter —- MS. GOLDSCHMIDT: All right. MS. PARSONS: -- that’s your business. MS. GOLDSCHMIDT: But I -- . MS. PARSONS: Um-hum (affirmative). MS. GOLDSCHMIDT: -- I’m only mentioning that because it -- it, again, speaks to the accuracy of the other statements ~~ MS, GOLDSCHMIDT: -- in there. MS. PARSONS: Right. The credibility of -- MS. GOLDSCHMIDT: Yes. é MS. PARSONS: =~ the rest -- MS. GOLDSCHMIDT: Exact lyse mss ome moe MS. PARSONS: -- of the statement. And, again, like I said, yeah, if -- if you look that over and you do find those kinds of things, you know, please feel free to ~~ to just give us a call and if we’re not here, leave us a message. We/1l give you a call -- MS. GOLDSCHMIDT: Okay. Business Support Services, Ine 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 11 12 13 14 15 16 23 24 25 Page 37 MS. PARSONS: -- back. And.the more things that we can dispel, obviously the -- the less we really have to look at and the shorter the investigation, too. MS. GOLDSCHMIDT: Yes. MS. PARSONS: So I -- you know, I really appreciate four -- MS, GOLDSCHMIDT: Well -- and -- and one -- MS. PARSONS: -~ helping. MS, GOLDSCHMIDT: -- of the other issues -- well -- and I don’t know what -- in -- in Fred -- Fred’s letter, he refers to Neil as a pedophile which really makes me unhappy, because Neil is not a pedophile in any way, shape or form. This is the one incident, and it suggests that perhaps there were other victims which was ~~ Fred does -- which -- which would then address -- somehow suggest that Bernie should have done something about this. ‘There weren’t -- there was nobody else, and ~~ A MS. PARSONS: Yeah. MS. GOLDSCHMIDT: -~ given that I teacir highsciwol. I teach 14 year olds. I know exactly the kind of behavior that can go on and particularly if a young woman has been abused, which she was. They become -~ they become predators themselves and this is not in any way to fault her -- not -- but I do understand what happened. They become predators. and she was @ predator and Neil was an idiot. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 1 12 13 14 15 16 a7 18 19 20 al 22 23 24 25 Page 38 MS. PARSONS: (Laughter) MS. GOLDSCHMIDT: So -- but not a pedophile. Okay? MS. PARSONS: Okay. I -~ you know what? I -~ I think T/1l just go -- go with what you said. I’m not going to categorize any of them, but -- O MS, GOLDSCHMIDT: No. But, you know, he was vulnerable like I think many men are to a situation that -- but he is not a pedophile and there’s nev there’s never been anything else to suggest -~ in any way, shape or form. So if Bernie had seen other activity or something that had suggested to him that Neil was involved in doing something, Bernie would have -- I know he would have done something. But there was nothing. MS. PARSONS: Did Bernie ever indicate to you that he had any kind of a concern -~ MS. GOLDSCHMIDT: No, no, no, no. MS. PARSONS: -- about something -- even’ knowing -- MS. GOLDSCHMIDT: No -- MS. PARSONS: -- even knowing whats---, thet Nell: had: had -- MS. GOLDSCHMIDT: No. That -- MS. PARSONS: -- that relationship, did he ever MS. GOLDSCHMIDT: No, no, I’m just ~~ MS. PARSONS: Okay. MS. GOLDSCHMIDT: -- telling you from -- from -~ I -~ Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 a 12 13 14 16 a7 18 20 21 22 Page 3 I know Bernie well enough to know -- this is never something we discussed. But T think anybody who knows Bernie knows that if he had thought there was anything, that he would not have let it go. But there wasn’t anything. There was absolutely nothing. 4 MS. PARSONS: Yeah. MS. GOLDSCHMIDT: You know, nothing there for him to -- MS. PARSONS: And at that point.in’time, also once you found out, you probably would have watched to see if there were any of those kinds of behaviors -- MS. GOLDSCHMIDT: But I knew -- but I -- when I found out, I understood what the situa —- situation was immediately. And I -- Neil is not -- MS. PARSONS: Um-hum (affirmative) . MS. GOLDSCHMIDT: -~ not in any way, shape or form -- MS. PARSONS: Yeah. : ' MS. GOLDSCHMIDT: -- anything but -- you know, I woald guess if we looked around, there are have been enticed by 14, 15 year old girls, and it’s wrong. I -~ I -- again, as I said, I would never want to be characterized as somebody who thought it was acceptable. MS. PARSONS: Oh, yeah, I know. You have daughters, right? MS. GOLDSCHMIDT: Yes. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201,10 11 12 13 14 15 16 17 18 pate dh 20 21 22 23 24 25 Page 4g} MS. PARSONS: So -- MS. GOLDSCHMIDT: -- (unintelligible) -- MS. PARSONS: -~ would know. MS. GOLDSCHMIDT: -- not, but the -- MS. PARSONS: Um-hum (affirmative) . ' MS. GOLDSCHMIDT: -- the -- anyway. MS. PARSONS: Yeah. It’s -- you know, like you said, it’s just a real tough situation. MS. GOLDSCHMIDT: Yes. But Fred,sdrt of now begins to characterize Neil that way because it’s -- it fits whatever it is he wants to achieve. But not because there’s any accuracy to it. Ms. PARSONS: Got it. And, you know, I can’t -- again, I -- you know, I can’t think of anything else. Like I said —— MS. GOLDSCHMIDT: Okay. MS. PARSONS: You're in -~ you're in a’ position where you know more than I do. And so, again, if you do see soweuhing that’s either -- cape gee ie MS. GOLDSCHMIDT: Yeah. I don’t -- MS. PARSONS: -- accurate or inaccurate, give me a call -- MS. GOLDSCHMIDT: Yeah, MS. PARSONS: -~ because -- MS. GOLDSCHMIDT: Well -- and -- but as T said Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-620110 1 12 13 14 15 16 Page 4y overall, I -- from my perspective, anything having to do with the situation with Neil, I just think this is a ridiculous part of it, because it’s already been dealt with by the attorney general's office as far as I’m concerned ~~ understand. MS. PARSONS: Oh, and -~ and, you know, our purview énly has to do with ~- with DPSST and -- MS. GOLDSCHMIDT: Right. MS. PARSONS: -- and, you know, certification -- MS. GOLDSCHMIDT: Right. ” MS. PARSONS: -~ which is a different -~ MS. GOLDSCHMIDT: ~~ (unintelligible) -- MS. PARSONS: -- it’s a different sort of a standard and it’s not -- MS. GOLDSCHMIDT: Yes, I understand -~ MS. PARSONS: -- a criminal one. MS. GOLDSCHMIDT: -- that. I understand that. But I don’t think that in -- that there’s -- 1 don’t think Bernie's done anything amiss. He certainly is a bit hotheaded soucitiwes. : os MS. PARSONS: He is a police officer, so -- MS. GOLDSCHMIDT: Yes, he is. But I -~ I really think it’s -- it’s unfortunate. It’s not fair to him. MS. PARSONS: It’s ~~ well -~ and it’s one of those things where this comes in and -- MS. GOLDSCHMIDT: I understand your pers -- I Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97302 503-985-6201Page 49) 1 |lunderstand your (unintelligible) ~~ 2 MS. PARSONS: Yeah, it’s -- 3 MS. GOLDSCHMIDT: -~ (unintelligible) -~ 4 MS. PARSONS: -- it’s an obligation. Yeah. It’s an 5 |Jobligation. 6 || MS. GOLDSCHMIDT: I totally understand that. 1 MS. PARSONS: Well, I really appreciate it. 8 MS. GOLDSCHMIDT: Okay. 9 MS. PARSONS: TI thank you so much.’ And -- and -- 10 MS. GOLDSCHMIDT: All right. 1 MS. PARSONS: -- if you would, please, have your 12 ||brother call, that would be great. And, again, please -- 13 MS. GOLDSCHMIDT: I will. 14 MS. PARSONS: -- please call if there’s anything else 15 that you see —~ 16 MS. GOLDSCHMIDT: Okay. 17 MS. PARSONS: -~ that you think is -~‘Ais “wrong or 18 |Jamiss or something that you say -- Ab Goffe one “MS. GOLDSCHMIDT: All right. 20 MS. PARSONS: -~ that you can say this is accurate, 21 ||but this isn’t. That would be great. 22 MS. GOLDSCHMIDT: Okay. 23 MS. PARSONS: Okay. Thanks so much. 24 MS. GOLDSCHMIDT: You're welcome. 25 MS. PARSONS: Okay. Business Support Services, Inc 960 Broadway NB, Suite 3, Salem, OR 97301 503-585-6201eee oo 10 a 12 13 14 24 25 Page MS. GOLDSCHMIDT: Bye-bye. MS. PARSONS: Bye-bye. Business Support Services, Inc 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201,10 ry 12 13 14 15 16 a 18 Page 4a) CERTIFICATE I, Cleta M. McMorris, hereby certify that I am an electronic transcriptionist for Business Support Services of Salem, Inc., that as such electronic transcriptionist, I prepared from a duplicated Olympus recording provided by DPSST, the foregoing typewritten interview of the above-entitled matter at the time and place set forth in the caption hereof; and that the foregoing pages, which are numbered 1 through 43, both inclusive, are the true, accurate and complete transcript of the testimony adduced in behalf of. the respective parties. WITNESS my hand as electronic transcriptionist this 8th day of August 2007. & L PH CYeta M. Mcforris, Trangcriptionist eme/cme Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201Pee eee King Theresa From: Gonzalez Beatriz [beatriz.gonzalez@doj.state.or.us] Sent: ‘Tuesday, June 26, 2007 3:37 PM To: King Theresa Importance: High ‘Address for Neil and Diana GOLDSCHMIDT: 1150 King Ave SW Portiand, OR 97205 Possible home number: 603-206-6199 Did you track down Debbie Kennedy? Beatriz A. Gonzalez Criminal Intelligence Specialist Oregon DOJIHIOTA Phone: (603) 378-5123 x 227 ¥4CONFIDENTIALITY NOTICE**##* This e-mail may contain information that is privileged, confidential, or otherwise exempt from disclosure under applicable law. If you are not the addressee or it appears from the context or otherwise that you have reecived this e-mail in error, please advise me immediately by reply e-mail, keep the contents confidential, and immediately delete the message and any attachments from your system. ERROR Oa Cnn Re aiorE ee mH 6/26/2007 A210Ore on Department of Public Safety Standards and Training 4190 Aumsville Hwy SE Kong, Governor Salem, Oregon 97317 503-378-2100 FAX 503-378-3306 hitp:thwwnw.dpsst state.or.us July 24, 2007 ied Mail Return Receipt Requested Neib Goldschmidt 1150 King Avenue Southwest Portland, Oregon 97205 Dear Mr. Goldschmidt: ‘The Department of Public Safety Standards and Training (DPSST) is conducting an investigation in which you may have information. We would like to schedule a time to meet with you. Please contact me at your earliest convenience at (503) 378-2305, by fax at (503) 378-4600, or by email at theresa, king@stale.or.us Sincerely, Theresa M. King, ee Coordinator Standards and Certification Division 3 Department of Public Safety Standards and ‘Training é STATE OF OREGON ce: Senior Assistant Attorney General Darin Tweedt, Oregon Department of Justice Sa iclecayecey CERTIFIED MAIL, RECEIPT CA Ta ee ere SMM OFFICIAL U Pongo | Contes eal ESS agit Oey Coban | SE qf —__| Neil Goldschmiat 1150 King Avenue Pottand, Oregon Sraltwest ila flee 7004 2890 Oooo Gaby 11n810 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PHONE MESSAGE OF NEIL GOLDSCHMIDT July 26, 2007 # Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 So3-b85-6z01, Ata10 a. 12 13 14 15 16 1 18 1g 20 21 22 23 24 25 Page TRANSCRIPT OF INTERVIEW MR, GOLDSCHMIDT: Ms. King, this is Neil Goldschmidt. You left your card at the house and we just got your letter today. I do not intend to appear in this matter or answer any questions or involve myself in any discussions. I have no interest in it at all, and the you know, obviously you have a professional duty to accomplish and I wish you all my best in all your work, but I do not intend to participate. Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201 ~Page 1 CERYTEICATE 2 I, Cleta M. McMorris, hereby certify that I am an 3 Jlelectronic transcriptionist for Business Support Services of 4 ||Salem, Inc., that as such electronic transcriptionist, 1 5 |]prepared from a duplicated Olympus recording provided by DPSST, 6 ||the foregoing typewritten interview of the above-entitled 7 ||matter at the time and place set forth in the caption hereof; 8 |jand that the foregoing pages, which are numbered 1 through 2, 9 |/both inclusive, are the true, urate and complete transcript 10 jlof the testimony adduced in behalf of the respective parties. a WITNESS my hand as electronic transcriptionist this 12 |j27th day of July 2007. 13 u i A VSM btte4 ae Jcleta M, MéMorris, ‘Transcriptionist 18 Vi cme/eme 17 * 18 19 20 21 22 23 24 25 Business Support Services, Inc. 960 Broadway NE, Suite 3, Salem, OR 97301 503-585-6201ee ko eee ‘= Complete items 1, 2, and 8, Also complote tom 4 If Restricted Dovey is desired. 1m Print your namo and address onthe rovers ‘20 that we can retumn the card fo you. 18 Attach this card to tho back ofthe mipieco, 1 __ er an the front if space permits ait Adreased to: Neil Goldschmidt 1150 King Avenue Southwest Portland, Oregon 97205 Malisdoubeallll all errand [. Dato ot Dover | YES, eter delvory acess baton: Tyan “Hfowitesat expen Devel OC.00. ested Dol? ra Foo) Bate Number 704 2890 0000 b2b4 1108 (eter tom bari ab PS Form S811, February 2008 ‘Domoati Ratu Receipt 1. everest rom New 77 CI Yoo ne Fn 2B ann ‘ ‘D Redistered CI Retum Recap for Morchandics Tyee. hudPage of 6" King Theresa From: Shirley Parsons [shirleyjo7 100@hotmail.com] Sent: Friday, August 03, 2007 5:16 PM To: King Therese ‘Subject: Contact with Diana Goldschmidt at their residence ‘Theresa, On 7/24/07, at 9:10am, I went to the Neil and Diana Goldschmidt residence at 1150 SW King Ave. in Portland. The door was answered by Diana Goldschmidt and | identified myself as an investigator with DPSS. I provided her with a business card and requested that Mr. Goldschmidt contact me or you at 503-378-2305. Mrs. Goldschmidt said she would provide the information to her husband, Shirley Booking a flight? Know when to buy with airfare predictions on MSN ‘Travel 8/6/2007 AvieCEE eee ee ECC EEE en ere eee ee Mage 1 of 18, Case of Neil Goldschmidt Former Governor of Oregon ’ Former Secretary of Transportation - President Jimmy Carter's Cabinet Past President - Nike Past Mayor of Portland, OR Confessed to having a sexual relationship with a teenager girl while he was mayor of Portland. The siatute of limitations for any criminal charge has long since run out, and Goldschmidt settled a lawsuit with the teenager, now 42, paying her a reported $250,000 after legal costs. In a public apology, Goldschmidt pleaded: "May a forgiving God mend my broken heart and those I have broken." Email Groups for the Awareness Center This link will bring you to a list of different mailing lists offered by The Awareness Center, We offers several different email groups,which include our general mailing list, press-releases, Jewish survivors of http://www.theawarenesscenter.org/Goldschmidt Neil.html B21 fevPe ee ee eee Bee childhood sexual abuse, Parents of children who were molested, Family members of sex offenders, ete. Make a Donati - Your Financial Support is Needed! Disclaimer: Inclusion in this website does not constitute a recommendation or endorsement. Individuals must decide for themselves if the resources meet their own personal needs. ‘Table of Contents: ' Biography. of Oregon political icon Neil Goldschmidt. (05/06/2004) ‘Statement by Neil Goldschmidt regarding sexual allegations (03/07/2004) Goldschmidt Revelation (05/07/2004) Neil Goldschmidt Aftermath: Attorney Jeffrey Foote of Jeffrey Foote & Associates, P.C., Calls upon Media to Respect His Client's Privacy (05/07/2004) i 5. Years building political clout are erased with one confession. (0/08/2004) 6. Goldschmidt le sympathy (05/08/2004) 7. Kulongoski's view (05/08/2004) 8. Letters (05/09/2004) 9. Goldschmidt's shame and his enemies (05/09/2004) 10. Secret weighs on_a public life (05/09/2004) aeNe Also see: Rabbis, Cantors and Other Trusted Officials «Top) Biography of Oregon political icon Neil Goldschmidt KGW News - Thursday, May 6, 2004 http://www. kew.comy/news-local/stories/kgw_050604_news_goldschmidt_info_.1973f895f.html Background biographical information on Neil Goldschmidt, as provided by his office on ‘Thursday: Goldschmidt has served as U.S. Cabinet Secretary, Governor of Oregon, Mayor of Portland and executive officer of a Fortune 500 corporation. Currently he has a small law practice focused primarily on strategic planning and problem solving for national and international businesses. Goldschmidt serves a limited number of elients on a continuing basis. In addition, he served on the boards of five private corporations, chairs Drug Strategies, Inc. and the Oregon Children's Foundation. He is also a member of the Board of Oregon Health Sciences University. Oregon governor -- January 1987 until January 1991, Goldschmidt led what has been called "The hitp:/Awww.theawarenesscenter.org/Goldschmidt, Neil html 8/24/2007PE eee eee eee eee ee er Pee eee Oregon Comeback,” the revival of a state suffering from nearly eight years of recession, During his term, the 56-year-old Democrat redesigned and reinvigorated the state's economic development efforts; improved the business climate through a series of regulatory reforms, including a major overhaul of the workers! compensation system; and initiated an investment strategy to repair the state's deteriorating infrastructure, NIKE ~ Prior to his 1986 gubernatorial campaign, Goldschmidt was an executive of NIKE, Ine., serving 4s international Vice President from 1981 10 1985. and as President of NIKE Canada from 1986 t0 1987, President Carter Cabinet member -- Goldschmidt served as Secretary of Transportation for President Jimmy Carter from 1979 until January 1981, and was known for his work to revive the ailing automobile industry. He also speatheaded efforts to deregulate the airline, trucking and railroad industries, Mayor of Portland -- Elected in 1972 at the age of 32, he was the nation’s youngest big-city mayor. During Goldschmidt’s years as Mayor, Portiand became a national model for mass transit, building both a light rail system and a downtown transit mall. His administration made a strong commitment to preserving Portland neighborhoods, creating new downtown housing and revitalizing an aging city business core University of Oregon graduate -- Goldschmidt is a graduate of the University of Oregon, where he was president of the student body. He eared a law degree from the University of California's Boalt Law School in 1967 and was a legal aid lawyer in Portland from 1967 until his election the Portland City Couneil in 1970 Personal information -- Goldschmidt was born June 16, 1940, in Eugene Oregon, where his parents still reside. He is married to Diana Snowden. They have four children.” * (Top) Statement by Neil Goldschmidt regarding sexual allegations KATU 2 News - Portland, Oregon - May 7, 2004 hitp:/Avww. katu.com/news/story.asp?ID=67 122 * The following statement was issued on Neil Goldschmidt's behalf by the Portland firm Gard and Gerber. Beginning in 1975, while I was mayor, I had an affair with a high school student for nearly a year. In 1994, I funded a conservatorship in her behalf, believing I was partly responsible for her difficulties coping with her life. For almost thirty years, I have lived with enormous guilt and shame about this relationship. I have also been afraid that it would be exposed to my family, friends and the public whose respect I have sought to http/Awww.theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007EE SENSO MOMSSC ATIC (rormer GOvernor or Oregon), Fage 408 ls earn, How can such behavior be erased when the damage to others and to myself lives on? I have sat in my place of worship each year at Yom Kippur, the day of atonement in my religious tradition, reading in silence, searching for personal peace. And I have found that the answer to that question is that it cannot be erased, The pain and damage that I have caused have been with me constantly. I have known all along that my private apologies and actions, deep and true though they were, would never be enough. I apologize now, publicly and completely. Tam truly sorry for allowing the relationship to happen at all, with someone too young to be responsible or accountable for her actions; for failing my first wife; and for betraying the trust of family, friends and all those who put their trust in me, ‘This moment has arrived at a time when I am struggling with my health, Finding some measure of personal peace, in addition to stepping aside from my public service and business activities, is part of that struggle, part of what [ must do in order to heal, In my life I have been blessed with a loving and supportive family, wonderful children and grandchildren, and a wife who helped me confront this issue. With all sincerity, | pray that God will accept my contrition and protect my family from the pain that a life led poorly in part may bring to their homes. May a forgiving God mend my broken heart and those I have broken. And may Oregonians accept this apology, even if they cannot forgive my actions, Goldschmidt Revelation By Yuno Kim KVAL TV Channel 13 News - May 7, 2004 http://www2.kval.com/x30530.xml? ParentPagelD=x2649& ContentID=x45237é&Layout~kval.xsl&AdGroupID=x30530 Portland - It’s a stunning admission from one of Oregon's most noted political figures. Former Governor Neil Goldschmidt has stepped down from the State Board of Higher Education, admitting he once had a relationship with a 14 year old girl. Goldschmidt says he had a three-year sexual relationship with a 14-year old babysitter when he was Mayor of Portland in the 1970's. He says he's lived with “enormous guilt and shame" for 30 years.Goldschmidt said he decided to make a confession after being told his long-past affair with the teenager was about to be made public and because of his deteriorating health, hutp:/www.theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007PES ee eee ee eee ee eee eer ee Sage 2 OF TR” His disclosure came the same day he resigned as chairman of the Oregon Board of Higher Education, and as chairman of the board of the firm trying to acquire Portland General Electric, Goldschmidt was the govemor of oregon from 1987 to 1991. He also served as Transportation Secretary in the Carter Administration and as Vice President of Nike, He now runs his own consulting firm, (Top) Neil Goldschmidt Aftermath: Attorney Jeffrey Foote of Jeffrey Foote & Associates, P.C,, Calls upon Media to Respect His Client's Privacy 7 Buisenss Wire - May 07, 2004 http://home. businesswire.com/portal/site/google/index.jsp? ndmViewld=news_view&newsld~20040507005490&newsLang=en PORTLAND, Ore.--(BUSINESS WIRE)--May 7, 2004~The following is a statement from Portland attorney Jeffrey Foote, on behalf of his client, who is seeking to maintain her privacy following news reports that former Governor Neil Goldschmiclt was involved with her 29 years ago, when she was a 14 year-old girl: "In the strongest possible terms, | call upon the news media to respect the privacy of my client, My client wishes to keep het name out of the news media, She is asking all of you to respect her strong desire not to be interviewed or for any information about her personal life to be divulged. "It is now within the media's power to further injure this woman or to rise up and act responsibly in reporting this story. My client is not a public figure and wishes to remain out of the public realm, “Even though these activities occurred decades ago, the healing process is essentially life long, Privacy is essential to her continued healing, - “Ifyou have questions, you may contact me. I will confirm that in 1994, my elient reached a confidential settlement with Mr, Goldschmidt in order to provide the financial resources for her to start a new life. T will confirm that she asks to have her name and details of her life omitted from news coverage and her desire for privacy to be respected and honored thoroughly." Contacts: Jefftey Foote Jeffrey Foote & Associates, P.C. Jeffiey Foote, 303-228-1133 ext, 121 cell: 503-228-1556 Top) Years building political clout are erased with one confession http://www theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007‘Lase oF Nn Goldschmidt (ormer Governor of Uregon) Page 6 of 18 Some observers think that Neil Goldschmidt could return to pu By William McCall The Associated Press - May 8, 2004 http:/news.statesmanjournal.convarticle.clm?i=79841 PORTLAND — Just days before a weekly newspaper was about to publish a detailed account of his affair with a 14-year-old girl in the 1970s, former Oregon Gov. Neil Goldschmidt abruptly withdrew from public life, a sudden end to one of the most storied political careers in state history. Goldschmidt, 63, confessed to the relationship with the teenager while he was mayor of Portland, and admitted that he had paid her a financial settlement, In a public apology, Goldschmidt pleaded: "May a forgiving God mend my broken heart and those | have broken." It was a sudden, shocking end to the career of a man known as a political tainmaker in Oregon, a top executive at Nike, and a former member of President Jimmy Carter's Cabinet, Just last fall, Goldschmidt stepped back in the state's political spotlight, taking on two major jobs: higher education reform and buying back the largest utility in Oregon from bankrupt Enron Corp. Goldschmidt, 2 Democrat who was widely praised for helping transform Oregon from a backwater info a national prototype for urban planning, had spent his recent years on the political sidelines as a consultant, privately working the clout accumulated mayor, governor and as transportation secretary under Carter, Everything changed when Willamette Week, a weekly newspaper founded by a former aide, told Goldschmidt Wednesday it was about to publish the story about the relationship with the 14-year-old that began in 1975 when he was mayor ving of him, and those who won't," said fornier Gov. Vie Atiyeh, a just before Goldschmidt was elected to the office. "But it’s a stain There are those who will be forgi Republican who served twa term that's not going to go away". Goldschmidt had issued a statement Thursday saying health problems had forced him to resign from his post as chairman of the Oregon Board of Higher Education and as chairman of the board of a firm trying to acquire Portland General Electric from Enron, Goldschmidt, 63, said his doctor and Mayo Clinic physicians had warned him he was at high risk of a heart attack from blocked arteries, and he recently had suffered symptoms, Brian Gard, his spokesman, said deteriorating health had been a serious concern for months. Soon after that release, though, Willamette Week posted word of their investigation on its Web site. Goldschmidt met that day with the editorial board of The Oregonian, the state's largest newspaper, and confessed the affair, saying he needed to heal himself mentally and spiritually after living in a "personal hell" for 30 years. He spoke of seeking peace through his Jewish faith on Yom Kippur, a day of atonement. Despite his public profile and role as political leader, the former governor was acting according to his http://www. theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007ee at eee eee Seamer ee a eer eee ess Be personal faith by confessing and seeking to atone, said Rabbi Daniel Isaac of Congregation Neveh Shalom, a Portland synagogue "From a Jewish point of view, when one commits a moral wrongdoing, one has committed a sin to another human being that has to be righted," Isaac said, "Whether there is a public punishment involved or not, in point of fact, the wrong committed is between Neil Goldschmidt, the woman involved and God." ‘The statute of limitations for any criminal charge has long since run out, and Goldschmidt settled a lawsuit with the teenager, now 42, paying her a reported $250,000 after legal costs: ‘The damage to his reputation will linger — a fact that Goldschmidt has admitted himself, Goldschmidt has been both a mentor and an important ally to current Goy, Ted Kulongoski, “T was greatly surprised, saddened and upset to leam of the events that occurred while Governor Neil Goldschmidt was mayor of Portland," Kulongoski said Friday, "There is no excusing his actions. My heart goes out to the woman who has had to address this issue in her life for the past thirty years, Several high-level Democrats think that Goldschmidt could return to public life at some point, but one of his most persistent critics, former U.S. Rep. Jim Weaver, also a Democrat, said he doubted Goldschmidt could recover. "He's gone from Oregon politics," Weaver Goldschmidt gets little sympathy By Steve Law J Statesman Joumal - May 8, 2004 http://news.statesmanjournal.com/article.cfim?i=79857 During an interview Thursday with The Oregonian, former Oregon Gov. Neil Goldschmidt explains that he had a sexual relationship with a 14-year-old girl in the 1970s, when he was mayor of Portland. Sexual-assault experts condemn his relations with a 14-year-old, Former Gov. Neil Goldschmidt admitted Thursday that he had an “af sitter nearly three decades ago. with his 14-year-old baby Experts have a different description for it, ‘They allege that it was sexual assault. Or child abuse. Or rape. “To view this as an affair instead of as a crime would be the first mistake,” said Phyllis Barkhurst, executive director of the state Attorney General's Sexual Assault Task Force, http:/Avww.theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007Pee eee Nee A 14-year-old girl might have looked like a woman to the then-35-year-old Portland mayor. But afelelie that age is in no position to have @ healthy, consensual sexual relationship with someone so much ‘olde, experts say. 4 "In the eyes of the law, a 14-year-old can't give consent," said Deborah Thompson, executive director of Sable House in Dallas. "The laws were designed to protect, in some cases, kids from themselves," Barkhurst said. And there's good reason, experts say. Young fdolescents having sex with adults can be scarred forever, they say, even if both parties initially view it as consensual, “The effects of sexual assault are lifelong," said Thompson, whose program aids abused women and girls. "You can't erase it." The long-term effects can be physical, mental and emotional, said Rhonda Stovin, a Keizer counselor who treats sexual-assault victims, "There's no way it could be mutual because you can't give true consent said. you're not really a peer," she Mary Huwe, 50, of Salem said her life changed forever after she was raped in her carly 30s, “We still have feelings. We still have depression. We still have signs to kill ourselves because of what this person did to our bodies," she said. Huwe tumed to drugs and saw two sons follow her example. Both wound up in prison, "feel like what I touched since then, I destroyed it," Huwe said, “It makes youra very bitter person, a very angry person." Many times, a sexual-assault victim ean repress the memory for years, everi decades. Later: as the root of many of their problems, emerges "You're never healed exactly," said Virginia Henderson, youth-services coordinator at Sable House. "You can't have a healthy relationship and you don't know why. You might be promiscuous and you don't know why. Then they realize the real bottom-line issue is the sexual abuse.” Vietim suffered ‘The 14-year-old who had sex with then-35-year-old Goldschmidt has led a troubled life, according to a story Willamette Week had posted online Thursday. ‘That's despite having friends who described her as intelligent, attractive and charming. ‘The weekly Portland newspaper reported that the woman had been given a diagnosis of po: stress syndrome after a rape in 1988, She then was unemployed for six years and lived on a disability stipend. Then, the paper reported, she filed a legal claim against Goldschmidt, and he quickly agreed to pay her nearly $250,000, in exchange for a confidentiality agreement. http://www.theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007SE ESET SEE eee e EEE eEEE PEE Ere Page 7011s Jefliey Foote, a Portland attorney who represents the woman, confirmed Friday that his client reached a confidential settlement with Goldschmidt in 1994 "to provide the financial resources for her to start a new life.” “Even though these activities occurred decades ago," Foote said, "the healing process is essentially lifelong. Privacy is essential to her continued healing.” Goldschmidt gave his version of events Thursday to The Oregonian newspaper but wouldn't other interviews with news media, However, he did issue a written apology. nt any "Beginning in 1975, while I was mayor, I had an affair with a high school student for nearly a year," he stated. In 1994, I funded a conservatorship in her behalf, believing { was partly responsible for her difficulties coping with her life." The ex-governor also asked Oregonians for forgiveness. "May a forgiving God mend my broken heart and those I have broken.,Atid may Oregonians accept this apology, even if they cannot forgive my actions." State Sen. Vicki Walker, D-Eugene, who tangled with fellow Democrat Goldschmidt over his $1 million lobbying earings from Salem-based SALF Corp., said she couldn't sleep Thursday night after learning of Goldschmidt's admissions. It brought up mixed emotions. Walker said she was sexually assaulted repeatedly by her father and 1wo uncles, starting at age 5. "As survivors, we always are on guard," Walker said. Still, she saw some justice from Goldschmidt finally paying a price for his actions, though he escaped criminal charges. ; y "It is so important for women like me, whose abusers have never been brought (o justice," Walker said She also was offended by his portrayal of events. “It's not an affair,” she said, "This was a child who couldn't make those decisions for herself, He had ultimate control." Blaming victims Despite ample evidence of the destructive power of sexual assault on victims, Americans often have mixed views about who is at fault. Experts call it "blaming the vietimn." In Califomia, many voters reacted unsympathetically last year to women who complained of being, groped by actor-turned-governor candidate Amold Schwarzenegger. Many Americans ate sympathetic to Lakers basketball star Kobe Bryant, who faces rape charges in Colorado in a case he describes as consensual sex. Stovin, the Keizer counselor, said high-profile cases like the one involving Goldschmidt are a reminder that sexual offenders can come from any class of people, regardless of their wealth or status. http://www. theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007eel who eee eee eer Se eee ee “When someone comes forward, you need to listen, no matter who they're accusing," Thompson said "There are statistics showing that a victim will falsely accuse in a teeny-tiny percentage of the time.” Other studies show that only one in five sexual assault cases, or perhaps as few as one in 10, gets heard in the criminal justice system, Despite the lingering effects of sexual assault, experts say counseling can provide relief. motionally you may be scarred forever,” Henderson said. "What you do in there is hopefully learn to /e with what happened." Expertstencourage women who never worked through their sexual-assault experiences to contact local ‘women's centers or other programs, “t's never too late to get help," Henderson said. Steve Law can be reached at (503) 399-6615. . (Top) Statesman Journal - May 8, 2004 http:/news.statesmanjournal.com/article.cfin?! 9857 Gov, Ted Kulongoski, a longtime friend and ally of Goldschmidt, released a statement Thursday urging the former governor to rest and take care of his heart problems, But after Goldschmidt's admission of having sex with a young teenager, the governor issued a statement Friday with a different tone. , "Lwas greatly surprised, saddened and upset to leam of the events that occurred while Gov. Neil Goldschmidt was mayor of Portland," Kulongoski stated. "There is no excusing his actions. My heart goes out to the woman who has had to address this issue in her life for the past 30 years." (Top) Letters: NEIL GOLDSCHMIDT Oregonian - Sunday, May 09, 2004 http://www. orcgonlive.com/letters/oregonian/index.ssf?/base/editorial/1084017617220270.xml Acts were criminal ‘The Oregonian erred in running the front-page headline stating that former Portland Mayor Neil Goldschmidt had an affair with a 14-year-old git! (May 7). While mayor of Portland, Goldschmidt committed a felony, third-degree statutory rape, then punishable http:/hvww.theawarenesscenter.org/Goldschmidt_ Neil.html 8/24/2007MAES OF NGL UOKISCAMICA (CORNET VOVEROF OF Uregon) Page tl of 18 by up to five years in prison. Criminal acts are clearly defined by our laws to protect the rights of the vietims and to send a strong message that certain behaviors are unacceptable and will be consistently puinished by society When you marginalize Goldschmidt's crime against this gic! by terming it an "affait” or a "relationship" rather than a criminal act, you send the wrong message to everyone, but most af all you take away the system's perceived authority to rightfully punish perpetrators and to protect victims of crimes, MICHELLE WINNINGHAM Southeast Portland Nature of relationship distorted An "affair"? A grown man begins to have sex with a 14-year-old girl and the media describe it as an "affair"? This would connote the girl as being "the other woman." If' we found out that our current mayor was having sex with a 14-year-old child, well, wouldn't that be against the law? So how come Neil Goldschmidt's sexual abuse of a minor is being construed as an "affair"? | think this is a terrible distortion of the nature of the relationship Goldschmidt formed with this girl, | appreciate that Goldschmidt is making a public statement and owning up to his destructive behavior, However, | take great issue with the media, both print and television, who are reporting this as an “offic.” PAM HOGEWEIDE North Portland No limits on potential suffering . Shame on The Oregonian! Wiser editorial eyes should have caught the highly distasteful error in this headline: "Goldschmidt confesses '70s affair with itl, 14" (May 7), Sexual encounters with 14-year-old children are not and never have been "affairs." Rape, yes (even if "only" statutory), Sexual abuse, yes. Horrifying breach of trust when a powerful adult forever ruins a young girl's life -- yes indeed. We needn't let our sadness for the "mighty fallen" obscure our understanding of the enormity of this crime. There are no statutes of limitations for the suffering felt by victims of sexual abuse. LINDA GOERTZ Southeast Portland No sympathy for Goldschmidt ‘Thirty-five year old men do not have "affairs" with 14-year old girls. It's called statutory rape. I also question the word "sad" in your editorial (May 7). This is not a "sad situation, it's a disgusting situation. http:/Awww.theawarenesscenter.org/Goldschmidt_Neil. html 8/24/2007eee eee ee ee eer Ah, but Goldschmidt's still a publie figure. The public has a right to know! Goldschmidt is a public figure. True, he's not on any public payroll. He's not an elected official. The ‘Texas Pacific Group and Goldschmid's consulting firm are private companies. The higher-ed board ion, chairmanship is a nonpaying volunteer po: Still, i's impossible to argue he's not a public figure with huge influence across Oregon. But does the public have a need, much less a right, to know what a now citizen-volunteer and private businessman did 30 years ago? Maybe. though the burden of proof should be on those who are bent on exposing the deep past. Why is this information important to get out to the public’? What's the point? What's the direct public-policy conneetion? Is the fact that the information happens to be true a defense? I don't think so, There are many truths out in the world. Shouldn't relevance and humanity count for something? What has come out of scooping up this bit of untold history? None! can discern -- not when set against the loss of Goldschmid's special talents to the state, Not when set against the destruction of a man’s life and public reputation, Not when set against the pain this will cause Goldschmict's family and the woman who'll have to relive this episode Neil Goldschmict's politics aren't my politics. Some Goldschmidt passions -- light rail ~ are my boondoggles. But you didn't need to be here long before you understood the man was a big-leaguer —- probably a hall of famer. [t was more than the Neil charisma, He was brimming with his own ideas and respected those of other. He was «full-on foes of nature and, inreasingly as the years passe, a more joyful and compessionate soul. } ‘Until last week. I saw him last Monday and was struck by how drawn and depleted he was, even when discussing one of his favorite topics, higher education. Thursday morning I understood why. What I don't understand -- what, thank God, I will never understand -- is why people felt a need to make this sludge public now. We're now hearing a lot about the many ways Neil Goldschmidt changed the face of Portland and Oregon for the better. The only thing he didn’t clean up, it seems, were our sewers. David Reinhard, associate editor, can be reached at 503-221-8152 or davidreinhard@news.oregonian.com (Top) Seeret weighs on a public life Former Gov. Neil Goldschmidt’s sex relation: high-profile path in a different light with an underage girl sets his periodic retreats from a http://www.theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007PE ee ee eer ee ee eee eee ee et eee Sree Oregonian - Sunday, May 09, 2004 By Gail Kinsey Hill and Harry Esteve ‘One night in February 1990, his personal life crumbling, then-Gov. Neil Goldschmidt gathered his closest friends to help him resolve his political future. Everyone in the room knew his marriage to Margie Goldschmidt was failing, but many thought he could ~ and would ~ run for re-election, He was a dynamic, charismatic and seemingly unstoppable politician whose first four years in office helped ignite what would become one of the strongest economic surges in Oregon history. 1 But Goldschmidt harbored a secret that went far beyond marital problems. When he was 35 and mayor of Portland, he had commitied illegal and shameful acts, He'd had sex with a 14-year-old gitl, an illicit relationship that went on for at least nine months. The next day, Goldschmidt stunned his advisers and the state by announcing he would not seek a second term, with the explanation that his marriage was in tatters and he lacked the strength to lead the state and go through a divorce at the same time. Even those closest to him took him at his word. But in an interview last week with The Oregonian, Goldschmidt acknowledged that was only part of the reason. His past sexual relationship with the teenager "certainly was a factor," he said. "I knew that there would be a day coming,” The disclosure helps explain what many found inexplicable -- that a man of his potential would retreat from public life. cal associates are reasses Now that his three-decade secret is out, many of his polit twists and turns of the Democrat's political path. ig the often peculiar He was the nation's youngest big city mayor in the 1970s, serving two terms. He is eredited with spurring some of Portland's most progressive transformations. He was U.S. transportation secretary under President Carter, He was governor of Oregon. He never went further, however, not only passing on a second term as governor but also several chances to run for the U.S, Senate. "How could it not affect the decisions he made in his public career? It's bound to have done so," said Bill Scott, who was Goldschmidt's mayoral chief of staff and longtime friend. The meeting to discuss Goldschmidt's possible re-election bid was held at the Portland home of Scott, who said he never heard of the sexual abuse of the teenager. He said no one expressed any qualms about Goldschmidt running for office or about his personal life. Scott and other associates believe Goldschmidt based his political decisions on many factors, some personal, some tactical and some simply unknowable {o anyone but Goldschmidt, “I have no idea how (the relationship) influenced his decisions," said Lee Weinstein, a family friend and deputy press secretary while Goldschmidt was governor. Weinstein, too, said he was stunned to learn of Goldschmit’s secret. "Obviously, this is something that has troubled him forever." Secret raises more questions http://www.theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007SS eee ir etme amet eee tera ee ee are ea See eee Goldschmidt resigned Thursday as president of the State Board of Higher Education, as well as stepping away from a leadership position in the proposed purchase of Portland General Electric. Citing a heart ailment and other health problems, he also said he was taking a leave of absence from his consulting firm, Goldschmidt Imeson Carter. According to Oregon laws in 1975, sexual intercourse with a girl younger than age 16 constituted third- degree rape, a felony punishable by up to five years in prison, The statute of limitations at that time was three years from the commission of the crime. Goldschmidt also revealed that he has been making payments to the victim since 1994 as part of a confidesttial legal settlement worth about $250,000, ‘The news swept through political circles and raised immediate questions about how such a high-profile figure could have kept the sexual relationship quiet for so long, Goldschmidt said he began having sex with the girl, who lived nearby, in ‘1975, two years into his first {erm as mayor, He said it continued for about nine months. The woman's lawyer says it lasted closer to three years, At the time, Goldschmidt was building a national reputation as an urban champion, helping revitalize Portland's downtown, which associates attribute to his youthful idealism, vision and strong personality He was pushy, he was moody, he was passionately devoted to the city, they say. Doug Capps, Goldschmidt's chief of staff following Seott’s departure, says he heard rumors about possible sexual philandering by his boss, but heard nothing about an underage girl. “Lwas trying (o think: When would that have ever happened?" Capps said, "There was no physical presence of any individual, It's like Neil was with people on his staff virtually constantly." His next public assignment took him into even headier territory. Based on his Rortland innovations, including the first designs for light rail, President Carter tapped him to be his U.S. transportation secretary. As patt of the vetting process, he was questioned about his background. Asked if he lied about having sexual contact with a teenager, Goldschmidt said, "I wasn't asked. . . . There was never a moment of anxiety" that the matter would come up. Sexual rumors deflected When Carter lost his re-election bid, Goldschmidt was out of a job. To the surprise of many, he didn't look to Congress for opportunities. He went home. “He was always senatorial material," said Lloyd Anderson, who was on the Portland City Council with Goldschmidt and went on to head the Port of Portland. "It was always a puzzle to me why he didn't run." Nike hired Goldschmidt first as international vice president, then as head of Canada operations. It appeared for a time that he had abandoned public life for a lucrative private career. But that lasted only six years. Early in 1985, Ear] Blumenauer, now a U.S. congressman, set up a http://www. theawarenesscenter.org/Goldschmidt_Neil.html 8/24/2007Teer SOO IS meeting at the home of Ginny Burdick to explore a Goldschmidt candidacy for governor, Burdick, who later served as the campaign spokeswoman, said the central topie was money. Goldschmidt worried he wouldn't be able to raise enough to run a competitive race, she said, but nothing was said by anybody about the sexwal relationship -- "not even a hint of anything like this,” said Burdick, now a state senator Goldschmidt jumped into the race later that year, knowing the secret could still come to light. In fact, a rumor about the relationship surfaced during the campaign, he said, but he was able to deflect it, He beat former Secretary of State Norma Paulus and in 1987 moved into the governor's office at the state Capitol. At that time, he said, the gitl he had victimized began making contact with him, Settlement kept confidential Almost immediately, rumors about extramarital affairs began to swirl around Salem, Goldsehmidt's press aides became adept at laughing off the embarrassed queries from reporters, When Gary Hart left the Democratic presidential race in 1987 after he was accused of aduligry, Goldschmidt stayed out of public sight while reporters trolled the Capitol looking for local comment. peculation," said Chuck Bennett, an education lobbyist who was around during the ration. "It was just @ lot of people talking,” "Tremember a lot Goldschmidt ad Bennett said the talk was about rumored adult affairs. He said he heard nothing about Goldschmidt's involvement with an underage girl. When Goldschmidt announced he would not run for re-election, everyone accepted the explanation that the divorce provoked the decision, he said. Now, he said, "You certainly wonder about the explanation that was given at the time, People are probably rethinking what they heard and what was said at the time." After leaving office, Goldschmidt started a consulting business with longtime gssoeiate Tom Imeson, He quickly became a highly sought-after and well-paid adviser, lobbyist and speaker. Reporters stopped asking questions about his private life. Around that time, he met and fell in love with his current wife, Diana Snowden Goldschmidt, who was a senior vice president at PacifiCorp, He shared his deepest secrets with her. Before their engagement, he told her about the girl, It was terrible," Diana Goldschmidt said. "We both cried. [ understood for the first time the true pain he was in, . .. [didn't understand it in the context of the man I loved, it was so far out of character." Soon afier they were married, Neil Goldschmidt agreed to a confidential financial settlement with the woman he victimized. The agreement came after he was contacted by the woman's lawyer in 1994, nearly two decades after Goldschmidt said he stopped what he termed "an affaie" with the girl, His wife helped pay for the settlement. It took a personal visit by Gov. Ted Kulongoski to thrust Goldschmidt back into the public sphere, Kulongoski drove to Goidschmidt’s home in Portland and, over glasses of wine, persuaded him to become head of the State Board of Higher Education, http://www.theawarenesscenter.org/Goldschmidt_Neil. html 8/24/2007ee ee ee eee ee eee ee eee ee Sree eee Kulongoski said he never would have chosen Goldschmidt if he had known about the sexual relationship. “The allegations that have come out, I didn't know anything about, [ had never heard of them," Kulongoski said Saturday, after riding in a parade in North Portland. At least for now, Goldschmidt has withdrawn completely from publie service, planning to spend more time at his winery, the Dusky Goose near Dundee. But some who have watched Goldschmidt leave, and then return to public life believe that he could once again play an influential role in Oregon. Portland Mayor Vera Katz, another longtime associate, said, "I predict he will be back.” ‘ Jeff Mapes and Gordon Oliver of The Oregonian contributed to this report. Gail Kinsey Hill: 303-221- 8590; gailhill@news.oregonian.com Harry Esteve: 503-221-8226; harryesteve@news.oregonian.com (Top) FAIR USE NOTICE Some of the information on The Awareness Center's web pages may contain copyrighted material the use of which has not abvays been specifically authorized by the copyright owner. We are making such material available in our efforts 10 advance understanding of environmental, political, human rights, economic, democracy, scientific, and sactal justice issues, etc. We believe this constitutes a ‘fair use! of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. 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