The Oregon Department of Justice says it will not pursue a criminal investigation into Jackson County Fire District 5, more than a year after the local district attorney referred concerns about possible fraud, theft and employee misconduct.
In a letter sent to the district last week, the DOJ said it reviewed materials provided by the DA’s office and met with district leaders, but concluded there wasn’t enough evidence to justify an investigation.
“The information was not sufficient to give rise to a reasonable belief that an investigation would lead to evidence of provable criminal conduct,” the letter stated.
District 5 Board Chair Greg Costanzo said he expected a different outcome.
"But they are the decision-makers that we put in office, so you do have to just kind of take it and move forward," he said.
The letter said DOJ staff reviewed additional materials related to the case and met with Costanzo, Fire District Chief Mike Hussey, legal counsel Lori Cooper and others.
"We have again concluded that the information available to us is insufficient to merit a criminal investigation," the letter stated.
District Fire Chief Mike Hussey said the district has since forwarded more information to the Jackson County Sheriff's Office for consideration. If deemed relevant, it could be sent to the district attorney and possibly to the DOJ.
"There were just a few other documents that we felt were worthy of passing on," Hussey said. "We're not passing judgment. We're just trying to do our diligence and hand them over to the authorities and then let them determine whether or not there's enough to investigate."
A spokesperson for the DOJ said they haven't received any additional information as of Wednesday.
The DOJ's decision comes after a turbulent year for the fire district. The agency faced a massive budget shortfall, board resignations and the termination of its former chief, Charles Hanley. He was terminated in August 2024 after an independent investigator sustained allegations that he covered up sexual harassment, bullied employees and interfered with a government promotion board.
Hanley has since filed a lawsuit alleging retaliatory defamation against current and former board members, according to reporting by The Rogue Valley Times.
Costanzo said at this point, he’s focusing on moving forward.
"I am turning the page," he said. "I do think we did our due diligence, and the system made decisions."
He said the fire district continues to struggle with staffing and fiscal management.
The district serves 23,000 residents across three fire stations in Phoenix, Talent and unincorporated Ashland. It currently operates under an intergovernmental agreement with nearby Fire District 3, which provides administrative support and oversight of Chief Hussey.
Hussey said he's looking to the future.
"A lot of times, [it's] just waiting for an answer," he said. "Progress is impeded because you don't know what the answer is going to be, and every time we get an answer, I feel we're able to check the boxes. That one's behind us now. We get to narrow our focus more on service to the community."
