Oklahoma Auditor and Inspector Jeff McMahan and his wife, Lori McMahan, pleaded not guilty in federal court Friday on nine counts of conspiracy, mail fraud and state bribery.The McMahans were ordered to report the federal probation office in Oklahoma City by Jan. 28, pending a trial that has been set for March 3.
As part of the conditions of their release, the McMahans were ordered to stay within the eastern and western federal districts of Oklahoma and not to speak to any potential witnesses in the case. Jeff McMahan, a Democrat, remains in office, despite a public calling by Gov. Brad Henry and Attorney General Drew Edmondson to step down.
McMahan is in the second year of his second term in office.
The McMahans had no comment following their court appearance.
The indictment alleges that McMahan and his wife received more than $100,000 in cash, other items of value, supplies and straw donor contributions far exceeding the amount limited by law through Kiowa businessman Steven Phipps, who was a former business partner of former state senator Gene Stipe.
Conspiracy to commit mail fraud is punishable by up to five years in prison and a fine of up to $250,000. The six counts of mail fraud are punishable by up to 20 years in prison and a fine of up to $250,000 for each count. The two counts of bribery are punishable by up to five years in prison and a fine of up to $250,000 for each count.
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