Monday, March 31, 2008

Stipe trial nears; witness lists filed





Stipe trial nears;
witness lists filed

By James Beaty
Senior Editor


Federal prosecutors have filed a witness list with 40 names for the upcoming trial of McAlester businessman Francis Stipe, with a number of McAlester-area residents set to be called as witnesses in the case.

Both prosecution and defense attorneys were set to attend a pre-trail conference at the Eastern District of Oklahoma U.S. Courthouse in Muskogee today.

Stipe is currently set to begin trial on April 7 on a four-count indictment accusing him of conspiracy, mail fraud, witness tampering and engaging in illegal monetary transactions.

Former Congressional candidate Walt Roberts has been named as a witness for federal prosecutors. An investigation of his failed 1998 congressional campaign ultimately resulted in the conviction of Francis Stipe’s brother, Gene Stipe, on federal charges of conspiracy and perjury.

Chris Clark, a former McAlester businessman who served as treasurer for the Walt Roberts congressional campaign, is also on the federal witness list.

Two of the main witnesses against Stipe are expected to be former District 17 state Rep. Mike Mass, of Hartshorne, and Kiowa businessman Steve Phelps.

In addition to Mike Mass, his wife, Suzanne, and their son, Lucas, are named on the government witness list. So is Mike’s brother, Steve Mass.

The witness list filed by Assistant U. S. Attorney

Gay Guthrie includes the custodian of records for the First National Bank and for BancFirst.

Also set to be called as government witnesses are Greg Brown, of The Bank N.A., and Roi Nelson, of the First National Bank, along with McAlester businessman Bradley Million.

Also named on the witness list is Chester Dennis, director of the Kiamichi Economic Development District of Oklahoma.

He’s expected to take the stand following FBI agent Jim Dawson.

Prosecutors also plan to call Richard “Dick” Dudley, who has served as chairman of the McAlester Foundation.

McAlester realtor John Freeman is also on the government’s witness list.

Roy Hatridge, the operator of McAlester Pet Products, is listed as a government witness.

Other witness include McAlester realtor Randy Saunier and Gregory L. Shores, an accountant for Gene Stipe, whose offices federal prosecutors raided last March.

Former McAlester Economic Development Service Director Jason Smith is also named on the federal witness list.

So is Charlene Spears, the longtime secretary and assistant for Gene Stipe.

Francis Stipe, 76, could face a total of 45 years in federal prison if convicted and given the maximum penalty on all charges.

In additional to the potential prison time, he could be fined a total of $1 million upon conviction of all four counts.

One of the counts in the federal indictment accuses Gene and Francis Stipe of witness tampering in connection with Francis Stipe’s purchase of a mortgage on Mike Mass’ home last February.

Mass pleaded guilty to mail fraud last April with the condition that he cooperate with prosecutors. His sentence is still pending.

Another allegation in the indictments involves a $48,000 kickback allegedly made to Mass after he steered money from the state legislature to help buy the American Pet Products dog food plant property in McAlester from Gene Stipe.

Francis Stipe and Gene Stipe had been indicted on the charges at the same time last October.

However, the case against Gene Stipe has been put on hold while he appeals a ruling by District Judge Ronald White which determined he is incompetent.

The order also directed that Gene Stipe undergo treatment at a federal prison hospital in Springfield, Mo., to see if he may become competent enough to assist his attorneys in defending himself against the federal charges he faces.

White has ordered that Gene Stipe remain under house arrest while a ruling on the appeal is pending.

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