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La Mota CEO indicted in Oregon over alleged $1.5 million payroll-tax shortfall
A federal grand jury in Portland charged Rosa Cazares with eight counts alleging she failed to pay more than $1.5 million in payroll taxes for La Mota and a staffing company. The indictment covers alleged nonpayments from 2020 to 2021; Cazares has not been convicted.
La Mota CEO Rosa Cazares has been indicted by a federal grand jury in Portland on eight counts alleging she willfully failed to collect, account for and pay more than $1.5 million in federal payroll taxes for the cannabis chain and 503 Staffing, a payroll processing company.
The charges cover eight calendar quarters, from March 2020 through December 2021. An indictment is an accusation, and the charges must be proven in court.
If convicted, Cazares could face prison, fines and restitution. The potential sentence would be determined under federal sentencing guidelines and other statutory factors.
Cazares referred questions to her attorney, Ron Hoevet, who declined to comment. The indictment does not name or charge La Mota business partner Aaron Mitchell.
The company and its leaders have faced scrutiny over taxes, debts and political connections. In 2023, then-Oregon Secretary of State Shemia Fagan disclosed that she had taken a consulting job with a La Mota affiliate while her office was auditing the state’s marijuana program. Fagan resigned, and federal investigators later subpoenaed five state agencies for records involving her, Cazares and Mitchell. Fagan also agreed to pay a $1,600 ethics fine.
Separately, the Oregon Department of Revenue filed more than $7.9 million in tax liens against Mitchell in August over unpaid tax balances, according to a report at the time. Mitchell is not charged in the new indictment.
La Mota operates 45 stores in Oregon and New Mexico, according to the company’s website.