The indictment, issued Oct. 15 by the U.S. Attorney’s Office for the District of Oregon, alleges Cazares failed to send the federal government $1.5 million in taxes over eight consecutive quarters. The taxes included Social Security and Medicare contributions, as well as federal income taxes withheld from employees’ paychecks.

Prosecutors allege the conduct occurred while Cazares led La Mota and affiliated limited liability companies, including 503 Staffing, which handled payroll. The charges are allegations; Cazares would be presumed innocent unless proven guilty. Each count carries a maximum sentence of five years in prison if she is convicted.

The case adds to years of scrutiny over the business dealings of Cazares and her longtime personal and business partner, Aaron Mitchell. The couple’s cannabis companies have faced tax liens and lawsuits from former business partners over unpaid bills and disputed business arrangements.

The case also revives questions about the couple’s political connections in Oregon. In 2023, then-Secretary of State Shemia Fagan resigned after it became public that she had signed a $10,000 consulting contract with Cazares and Mitchell while her office was auditing the Oregon Liquor and Cannabis Commission, which regulates cannabis businesses. The couple had also hosted political fundraising events, including for Fagan and Tina Kotek, who is now governor.

Mitchell and companies linked to him were issued $7.9 million in Oregon tax liens in 2026, according to state revenue records cited in reporting on the liens. The balances included marijuana, personal income and withholding taxes, including $3.4 million in personal income taxes for 2021.

The federal indictment names Cazares. The U.S. Attorney’s Office did not say whether Mitchell is being investigated in a separate matter.