VOTER FRAUD PENALITIES MAY INCREASE!

Hat Tip to Steve Fair

Weekly Opinion/Editorial

VOTER FRAUD PENALITIES MAY INCREASE!
by Steve Fair

Mickey Mouse, the Disney creation born in 1928, will not be able to register to vote in Oklahoma if a bill by House Speaker Chris Benge, (R-Tulsa) and Senate Pro Temp Glenn Coffee, (R-OKC) gets through the State House and is signed by the Governor. The bill seeks to deter election and voter registration fraud. Senate Bill #1921 passed the Senate by a vote of 33-10 back on March 9th. Last week, the bill passed out of the House Public Safety Committee by a vote of 6-1 and goes to the full House. It is expected to pass the House by a wide margin. It remains to be seen if the Governor will sign the legislation. He vetoed a Voter ID bill back in April 2009.

SB 1921 would increase the maximum punishment for felony violations of Oklahoma election law from fines of $5,000 to $50,000. It would increase the jail time from two years to five years imprisonment.

"We have seen in recent years groups inflating the voter registration rolls with the likes of Mickey Mouse to the benefit of certain candidates," said Benge, R-Tulsa. "It is our duty to ensure the people of Oklahoma trust our election outcomes."

The measure also adds fraudulent use of an absentee and making a false application to an absentee ballot a felony. It would also make it a felony to knowingly collect or submit voter registration forms that contain false information.

"Clearly the current law was not enough to deter ACORN and groups like it from committing voter fraud. Our hope is that this legislation and stricter penalties will help restore voter confidence in our democratic system," said Rep. Rex Duncan, (R-Sand Spring) who presented the bill in committee. "Free and fair elections are the backbone of our democracy, and it is important that those who would deliberately and purposely sabotage the voting process be prosecuted to the full extent of the law," Duncan concluded.

Oklahoma’s colorful political history is littered with scandals. Most Oklahomans remember the County Commissioner scandal of the 1980s, which had over 200 people indicted/convicted, and the recent McMahan/Stipe/Phipps scandal, but few remember a voter fraud scandal that rocked Oklahoma in the early 80s?

Back in 1983, then Oklahoma State House Speaker Dan Draper and House Majority Leader Joe Fitzgibbon- both Democrats- were convicted of vote fraud. The convictions were later overturned, but it did force Draper to leave office. Draper and Fitzgibbon were accused of mailing illegal absentee ballots in an effort to get Draper’s dad elected to the legislature.

Debates over election fraud are not new. They have been a staple of discussions about elections and democracy in the United States for more than a century. But in recent years, issues of fraud and voting integrity have increasingly come to the forefront of public policy discussions over the health of America’s democracy. With the consistently low voter turnout rates and obstacles to citizen participation motivated various efforts to increase voter registration and turnout—efforts that in turn raised questions about voting integrity. Critics of some reforms—such as Oregon starting mail-in voting, the loosening of guidelines for absentee ballot use, and, most notably, the National Voter Registration Act of 1993 (also known as NVRA or the “motor voter” law)—have charged that these reforms increase the potential for voter fraud. Other frequently proposed reforms, such as Election Day Registration, continue to be criticized on the same grounds. Implemented with the pretense they will make voter registration more convenient, they also make it easier to commit voter fraud.

Benge and Coffee have the right idea- punish those who cheat in elections by increasing the fines and jail time, but they need to take another run at Voter ID. When he vetoed the ID bill in April, Governor Henry said, “At a time when it is difficult to attract more than half of the registered voters to the polls at any given election, we must make voting easier and more convenient for registered voters, not more difficult and confusing.” How is it confusing for a voter to have to show an ID to vote? It has never been easier to cast your vote. Most elections have early in person absentee balloting which has expanded the hours to vote by twenty hours. Twenty! Mickey Mouse said, “Arithmetic is being able to count up to twenty without taking off your shoes.”

Walt Disney famously said about his creation, “When people laugh at Mickey Mouse, it’s because he’s so human; and that is the secret of his popularity.” But he’s not human and while Mickey may be popular, if Senate bill #1921 gets signed into law, Mr. Mouse won’t be voting in Oklahoma elections because those that got him on the voter rolls will be in jail.

House A&B Close Loopholes That Allow Officials Convicted of a Felony to Keep Benefits

A bill by state Rep. Leslie Osborn, which would close loopholes that allow state, county and municipal officials convicted of a felony to keep their benefits, passed out of the House Appropriations and Budget Committee today.

“I am very pleased to see this long overdue legislation passed,” Osborn, R-Tuttle, said. “Public officials should be held to a higher standard and I believe deserve to lose their benefits when they have committed a felony.”

Osborn cited former state Sen. Gene Stipe and district judge Donald Thompson as the types of elected or appointed officials that would stand to lose their benefits in the future.

“They violated the public’s trust and doesn’t deserve to keep those benefits,” Osborn said. “I think it’s a slap in the face to taxpayers to see an official caught doing something wrong and then see him or her continue to collect money from the state.”

House Bill 1385 would remove language that specifies that in order to lose their benefits, elected or appointed officials would have to be in office at the time of the conviction. It would also remove language that specifies that the official had to violate their oath of office.

“It is not enough to take those benefits away only if the oath of office is violated and only if the official is currently in office,” Osborn said. “My only regret is that this bill was not in place in time to punish Sen. Gene Stipe and Judge Donald Thompson. These officials are charged with looking out for the public welfare and when they disregard the law, it is especially tragic. I am very proud of this legislation and proud of my fellow lawmakers for passing it out of committee.”

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.

Judge approves old evidence

A federal judge in Muskogee said Thursday he is inclined to let prosecutors introduce decade-old evidence during Francis Stipe's upcoming criminal trial of congressional campaign fraud.
Stipe's defense attorneys want testimony and evidence concerning Walt Roberts's 1998 campaign excluded, saying it is irrelevant to the four counts Stipe faces.

Stipe, 76, faces an April 7 trial on counts of conspiracy, witness tampering, mail fraud and paying a bribe.

He and older brother, former state Sen. Gene Stipe, were indicted in October in an alleged plot to divert tax money to a McAlester dog food plant built on property Gene Stipe sold.

Legislators Gone Loco — and Other Oklahoma Officials Acting Badly

Sketches: Oklahoma has
something special to share
By David Gerard
Sketches from Three Rivers

Most states don’t do politics like we do it here.

I haven’t heard back from a television producer yet, but I expect to.

I pitched a new reality show — “Legislators Gone Loco.” It has a subtitle, too. The complete title is “Legislators Gone Loco — and Other Oklahoma Officials Acting Badly.”

My suggestion was to film our Oklahoma legislators and officials in action and daily life.

Why leave reality TV to supermodels, cops and criminals, and people abandoned in rugged outposts when a wealth of entertainment resides in state government?

For instance, in January, Rep. Lance Cargill, R-Harrah, the former speaker of the House, explained his lapses in filing timely income taxes for two years and property taxes for six years.

He said he was too busy in the state Legislature, serving us. Hah, try the too-busy excuse next time you’re late.

Oh, and don’t forget Cargill’s friend, Rep. Gus Blackwell, R-Goodwell, who was delinquent 13 years in paying property taxes on his home.

Blackwell’s excuse: He had a misunderstanding with the county treasurer’s office.

Now that’s great reality television, and Blackwell wasn’t done. He wrote a letter complaining some people were on a search-and-destroy mission to get rid of honorable legislators like him.

This is great stuff — better than dumb crooks, well, maybe not quite as good, but close, and hey, we have our crooks, too.

Former state Sen. Gene Stipe, while on probation for making illegal campaign contributions, was accused of doing it again. More than 80 years old and in poor health, a federal court ruled he was mentally incompetent, but Stipe and his attorney maintained he’s competent.

Sure, he’s competent. Before his conviction in 2003, he was in court three times, defending himself against tax evasion charges and two fraud charges. I’d say he has shown great competency in what he has done during his 53-year political career.

Oh, then this is the best.

State Labor Commissioner Lloyd Fields apologized last month for a practical joke. The public doesn’t know exactly what the prank was about — that’s why we need reality TV to follow our politicians — but Fields, apparently after some drinking, tried to leave a bull riding event in Oklahoma City with a bull rider’s guitar.

This is precious, and really, it could only happen in Oklahoma — a state official dashing out of a rodeo with a guitar that doesn’t belong to him, to be apprehended by the bull rider's friends, to be taken to the county detox center, and yes, to not have any charges filed against him.

Most states don’t do politics like we do it here.

We shouldn’t keep this wonderful stuff to ourselves. We should share it with the country.

We need to share one other thing, too — our state Ethics Commission.

Yes, we have one. Guess where? In the basement of the Capitol, in a little room with only seven employees, one investigator, and all these rowdy officials to watch over.

Each year, the office goes to the Legislature for more money, but the commission’s operating budget is half what it was five years ago. The commission’s entire budget this fiscal year is only $517,000, in a state with a $7 billion budget.

Commissioner John Raley told me the office was severely understaffed and underfunded.

“We have a backlog of cases because we have limited resources when it comes to investigations,” Raley said. “Sometimes it takes months to respond to allegations that are made.”

Rep. Lucky Lamons, D-Tulsa, put a bill before a House committee to adequately fund the Ethics Commission. Raley said a majority opposed it. He said one legislator called it a “political stunt.”

I expect to hear from the reality show producer any day.

Reach Gerard at 684-2920 or dgerard@muskogeephoenix.com.

Letters to the Editor: Better behavior expected

Better behavior expected
Letters to the Oklahoman Editor

"Labor chief sent to detox in incident” (news story, Feb. 19) tells of state Labor Commissioner Lloyd Fields being suspected of "borrowing” a guitar while possibly being under the influence. "Auditor case moves ahead; State House votes in favor of forming impeachment panel” (news story, Feb. 19) describes our state auditor encountering a little impeachment problem (he's already been indicted) and "State picks up tab for Cargill's mailed apology (Associated Press news story, Feb. 19) is about our former House speaker (who resigned that post) using our tax dollars to send apology letters to his constituents, after he had difficulty remembering to pay his property taxes and file his state income tax returns.

These revelations follow the excellent adventures of Carroll Fisher, Gene Stipe and a few others who've graced the headlines within the past couple of years. It's about time we notified these folks that they work for us and we expect better behavior than we've gotten lately. Oklahomans are honest, decent, hardworking folks. The attributes are apparently in limited supply at the state Capitol.

Jeff Wyatt, Choctaw

State corruption cases come in bunches

State corruption cases come in bunches
By RON JENKINS

OKLAHOMA CITY (AP) _ It's been a rough time for some elected officials in Oklahoma in recent months, leading citizens to question what's going on and causing soul searching over the state's level of corruption.

Gov. Brad Henry is among those who discount the notion that public corruption is any more prevalent in Oklahoma than in most other states, despite a rash of officials being charged with crimes or caught in embarrassing situations.

"Oklahomans are some of the most caring, most ethical people in the country and I think Oklahoma state elected officials are, too," Henry said. "Unfortunately, we've had some unfortunate situations here in the last several months.

"But we need to let the criminal and legislative processes play out and see what happens before we make any ultimate determinations."

William S. Price is a former U.S. attorney in Oklahoma whose office won convictions against 240 county commissioners, former commissioners and material suppliers during the late 1970s and early 1980s in what the FBI classified as the most widespread corruption case in U.S. history.

Price believes public corruption in Oklahoma could be a systemic problem caused partly by a lack of checks and balances in the county commissioner system of government, with officials developing bad habits they take with them to higher office.

But he also says he does not believe corruption is a cultural problem in Oklahoma, like it is elsewhere in the country.

"We never had trouble getting convictions," he said. "I think when the people of Oklahoma learn of corruption involving their public officials they tend to demand their resignation. They tend to put them in jail."

"I don't think we are any more corrupt than anybody else by a long shot," adds John Raley, a former U.S. attorney in Muskogee and a member of the Oklahoma Ethics Commission. Raley is an outspoken proponent of restricting spending by lobbyists and increased public disclosure of activities of legislators and state officials.

Figures compiled by the Public Integrity Division of the Justice Department in a 2007 report to Congress lends credence to the comments of Henry, Price and Raley.

The report showed that over a decade ending in 2006, there were 106 federal convictions in public corruption cases involving judicial districts in Oklahoma City, Tulsa and Muskogee.

That is a fraction of convictions in jurisdictions in larger states, led by 574 in northern Florida, 412 in northern Illinois, 399 in central California, 377 in New Jersey, 362 in northern Ohio, 359 in eastern Pennsylvania and 352 in southern New York.

But in the last few months, those "unfortunate situations" Henry spoke of have dominated the news amid calls in the Legislature for ethics reform.

Among other things:

— State Auditor and Inspector Jeff McMahan and his wife have been hit with federal charges tied to allegedly accepting jewelry and other gifts, plus excessive campaign contributions, from a man implicated in another public corruption case.

— Rep. Lance Cargill was forced to resign as House speaker after he faced insurrection from fellow caucus members over ethics questions and late payment of income and property taxes. Some lawmakers said their constituents were angered by the tax disclosures.

— Labor Commissioner Lloyd Fields was compelled to issue a public apology after he was taken from a party for rodeo performers to a detox center. Witnesses said Fields tried to walk away with an expensive guitar at the party. Fields said it was a practical joke gone bad.

Former Insurance Commissioner Carroll Fisher is currently in prison on a state embezzlement charge linked to campaign financing and is awaiting trial on bribery and corruption charges.

The decade began with a scandal at the Oklahoma Department of Health, with the acting commissioner of health being convicted on federal bribery charges.

Meanwhile, the Oklahoma attorney general prosecuted several other Health Department employees and officials as ghost employees who did little or no work for their pay and benefits.

As McMahan awaits a federal trial in Muskogee, the new speaker of the House, Rep. Chris Benge of Tulsa, has appointed a committee to study the possibility of bringing impeachment articles against the state official.

Fisher was impeached by the House in 2004 and resigned before a Senate trial. It was the first impeachment since former Secretary of State John Rogers in 1975. The last trial by the Senate led to the conviction of former Supreme Court Justice N.B. Johnston in a bribery case.

Oklahoma has had its share of high-profile public corruption cases over the last few decades, the most notable leading to a federal prison term in the mid-1970s for former Gov. David Hall. A former Tulsa prosecutor, Hall was convicted in a bribery-extortion case linked to the investment of retirement funds.

David Walters, another former governor, pleaded guilty to a misdemeanor offense tied to an alleged scheme to collect excessive campaign donations when he was a candidate. The offense has been expunged from the court records under an agreement with prosecutors.

In another sensational case from the 1990s, Patricia Whitehead, deputy state treasurer and two others were convicted of federal crimes in a kickback scheme that involved $6.7 million in illegal payments from investment of state funds. Treasurer Claudette Henry was never charged in the case, but the scandal led to her defeat for re-election in 1994. She died after a long illness five years later.

Several legislators and former legislators have been charged with various crimes over the years, ranging from accepting bribes to cocaine distribution.

Most recently, former Rep. Mike Mass pleaded guilty to mail fraud for allegedly conspiring with ex-Sen. Gene Stipe and others to defraud taxpayers through improper use of economic development funds appropriated by the Legislature.

Kiowa businessman Steve Phipps is a key witness for the federal government in that case and in the case against McMahan. Phipps was a longtime business partner of Stipe and was the owner of abstract companies regulated by McMahan's office.

Stipe has been found to have dementia and declared mentally incompetent to stand trial. The government is trying to commit him to a federal prison hospital.

The determination of incompetency against Stipe came as prosecutors were attempting to revoke his probation for a previous campaign law violation.

Stipe's trial is pending in the corruption case in which his brother, Francis, also is charged.

Indictments accuse the Stipes of illegally steering state money to private businesses. They also are accused of witness tampering by purchasing a house for Mass.

While saying Oklahoma juries are among "the least tolerant of corruption," Price said his talks with other prosecutors led him to believe convictions are not so easy to come by in other areas of the country.

He said the Oklahoma public's staunch stand against corruption has not been "true in Louisiana at all, and I don't think it is true in some of the big cities of the Northeast."

On the other hand, he said a tier of northern and midwestern states without huge cities have had relatively little corruption by comparison, mentioning Oregon, Minnesota and Wisconsin and Maine.

Price said local government corruption appears to be a problem in Oklahoma and many southern states that have a county commissioner form of government, where three people exercise a lot of power on their own.

He said Kansas had a county manager form of government and has not had the same problems.

Headless Oklahoma House to convene

Headless House to convene

By MICK HINTON World Capitol Bureau
2/3/2008

The former speaker and a member who wanted to replace him both bowed out with tax problems

OKLAHOMA CITY -- In a history-making session, the body of the House of Representatives will convene Monday without a head.

"It's the craziest thing I ever heard in my life," said Larry Ferguson, a former lawmaker who served for 20 legislative sessions, including eight as the leader of Republicans who were in the House minority.

By Monday's end, however, a new speaker will emerge as the fractured House strives to convince the Senate, the governor and the public that it is ready to do business.

After two top leaders bowed out last week because of embarrassing tax problems, the public is watching, said University of Oklahoma political science professor Keith Gaddie. Residents are alarmed that their leaders have not been paying taxes on time, like they have to, he said.

Speaker Lance Cargill, R-Harrah, resigned Monday; speaker pro tem Gus Blackwell, R-Goodwell, exited the race for speaker three days later. Both acknowledged they had been repeatedly late in paying taxes.

Cargill's resignation occurs at a time when the State Ethics Commission apparently is investigating campaign practices among Republicans under Cargill's leadership in the past two election cycles.

"This better be wake-up time" for whoever ends up leading the House, Ferguson said. "The people out there are tired of reading about this kind of stuff and hearing it on TV."

This follows numerous recent stories about Democrats, including former longtime Sen. Gene Stipe and his excessive campaign donation problems.

Now, Auditor and Inspector Jeff McMahan, a Democrat, has been indicted on multiple counts over campaign irregularities. Former Democratic insurance commissioner Carroll Fisher is in prison after being convicted of embezzling from his campaign funds and of lying on a campaign report.

"Then they hear about the speaker and the wanna-be speaker," Ferguson said.

Four House Republicans have filed to lead the lower chamber for the session. They include Rep. Chris Benge, R-Tulsa, who is the old leadership's choice. He is viewed as a more moderate Republican who can work with both the GOP and Democrats, which he has done as head of the powerful House Budget and Appropriations Committee.

Cargill had the unquestioning allegiance of the freshman lawmakers whom he helped get elected, and they are expected to rally behind Benge when the GOP caucus meets in closed session Monday morning. The next speaker will be elected in open session Monday afternoon, following Gov. Brad Henry's State of the State address.

Benge has said he will keep the current GOP committee chairmen in place so the House can quickly get about its business. It has only three months to deal with a dwindling surplus in the state's $7 billion budget.











Another speaker candidate is Rep. Susan Winchester, R-Chickasha, who was denied a leadership role under Cargill but has supporters among some of the more experienced members.







Candidate Rep. Dale DeWitt, R-Braman, leads the rural caucus of Democrats and Republicans who meet during session to discuss mutual interests.







Another candidate, Rep. John Wright, R-Broken Arrow, leads the Republican Caucus. Last fall, he ran unsuccessfully against Cargill for the position of speaker designate.

All four of these candidates have solid records of paying their taxes on time, county records checks by the Tulsa World show.

This controversy over taxes probably would not have occurred 20 years ago, before tax records were computerized, Ferguson said.

"I've never known a person resigning because of tax problems and an interim leader withdrawing because of the same thing," he said. "This has all left the people confused."

The longtime Republican said several GOP seats are being held by freshmen whose constituents are mostly Democratic, so the party needs to recognize that these seats could be vulnerable.

Ferguson does not expect Democrats to take over of the House, but he is afraid Republicans could lose ground in the fall elections.

The House leadership should look to the Senate, where Republicans and Democrats are evenly split, he said. Surprisingly, "the two parties made progress last session in a bipartisan fashion and both sides got things they wanted," he said.

Ferguson said he has been tempted to talk with University of Oklahoma President David Boren and ask him to call together former seasoned state leaders from both parties. Recently, Boren summoned numerous old Senate colleagues from across the country who gathered at OU. They urged the presidential candidates to quit listening to their entrenched bases and strive for common ground, reaching across party lines.

"Both Republicans and Democrats need to come to the Capitol with the idea of working with the people and being good servants instead of worrying about running for some other office and see how much money they can accumulate," Ferguson said.

"It's gotten pretty much out of control."

Papers cite more in illegal election funds

Tony Thornton and Michael McNutt in the Oklahoman, has a story in today paper about two more abstract company owners making illegal campaign contributions to Jeff McMahan.

Papers cite more in
illegal election funds

By Tony Thornton and Michael McNutt

Court records unsealed Friday accuse two abstract company owners — including the chairman of a new state board assigned to regulate the industry — of making illegal campaign contributions to state Auditor and Inspector Jeff McMahan.

McMahan had to rely heavily on Randy Dittmann for his 2006 re-election campaign because the main money source for his 2002 campaign, Steve Phipps, was under grand jury investigation, according to an FBI agent's affidavit.

Also included in the affidavit are transcripts of taped conversations in which McMahan's wife allegedly tells Phipps that “as long as we all stick to the same story, we'll be fine.”

The affidavit is part of FBI agent Gary Graff's request in August for a warrant to search the McMahans' Tecumseh home.

The affidavit remained sealed in Oklahoma City's federal courthouse for the last five months, as did a separate court filing showing what was seized.

They were unsealed Friday, when Jeff and Lori McMahan appeared in Muskogee's federal court to face a nine-count indictment accusing both of accepting bribes and illegal contributions from Phipps.

The affidavit is based primarily on information provided by two unnamed informants. Those informants are Phipps and Tim Arbaugh, who oversaw the auditor's abstract division for McMahan, The Oklahoman confirmed. FBI agents recorded conversations between Arbaugh and Lori McMahan, according to the affidavit.

Phipps pleaded guilty in June to conspiracy involving bribes paid to former legislators. He is cooperating with investigators as part of his plea agreement.

The affidavit alleges Phipps spoke to Jeff McMahan in code when discussing illegal campaign contributions he made through other people, called “straw donors.”

Dittman denies claims
Gov. Brad Henry appointed Dittmann in November to the Oklahoma Abstractors Board, which legislators created amid reports of McMahan's ties to Phipps.

Dittmann, 51, was recommended by the Oklahoma Land Title Association and state Reps. Chris Benge, R-Tulsa, and Lucky Lamons, D-Tulsa, said Paul Sund, Henry's spokesman. Dittmann is on the land title association's board.

According to the affidavit, Arbaugh told McMahan in 2006 that Dittmann was reimbursing employees who made straw donations to McMahan's campaign.

“How many more employees does he have?” the affidavit quotes McMahan as asking Arbaugh.

Asked last week if he was aware of any illegal contributions being made to McMahan's campaign, Dittmann said, “Any of the campaign stuff, I don't know anything about.”

On Friday, he said: “I have no idea what employees donated funds to anybody's campaign by the use of a credit card. I have never given an employee an illegal bonus for anything. I'd like to see this affidavit ... before I make any further comments,”

To read the full story, click here

OK Auditor and Inspector - McMahan brother accused of political felony

McMahan brother accused
of political felony
By David Arnett
Wednesday, 02 January 2008

Often both comedic and pathetic in some parts of Oklahoma politics is a full-contact criminal enterprise. Jason McMahan, brother of Oklahoma State Auditor and Inspector Jeff McMahan is not currently charged with any crime, but Gary Jones says, “I don’t want anyone out there to misunderstand; I firmly believe that Jason McMahan stole my trailer. I was told by the detective, assistant district attorney and the district attorney that they were convinced that he stole it using his pick-up truck.”

Apparently in Tecumseh, Oklahoma’s connected criminals live free of charge unless the crime catches the attention of the Federal Bureau of Investigation (FBI). This episode is merely grand theft auto. The “Keystone Cops” element is that one person has been charged with possession of stolen property, but no one was charged with stealing it. For that Oklahomans can thank a judge and a district attorney, who was a contributor to Jeff McMahan’s campaigns.

Jeff McMahan is currently under examination by a federal grand jury for campaign irregularities tied to Gene Stipe, Mike Mass and Steve Phipps – first publicly exposed by Tulsa Today. Theft of the trailer which was decorated at the time as a “covered wagon” billboard during Jones’ bid to replace McMahan in the auditors office was also first published by Tulsa Today.

September 16, 2006 Tecumseh police officer Clint Hill took the report of a larceny of the twenty-four foot goose neck trailer Jones had leased for his campaign. At the time of the theft, the trailer was secured with a cable and lock behind Branson McKiddy Realtors in Tecumseh. On September 22, Tecumseh resident David Jett called police to report that he had seen the decorated campaign trailer sometime between midnight and 2 am on the night it was taken. Jett reported that a red extended-cab pick-up truck was pulling the trailer through town.


Jones Campaign Trailer
November 1, Pottawatomie County Deputy Sheriff Dan McClure called Tecumseh Detective Lt. Kidney and, after comparing notes, the two believed they had located the missing trailer on land owned by Justin Lewis. Investigating, the two officers obtained the vehicle identification number (VIN), but a check of that number showed a trailer owned by the City of Tecumseh. David Johnson, Tecumseh City Manager, (a former employee of and major contributor to Jeff McMahan) told officers that the city’s trailer was at the City Barn, but the VIN plate had been removed.

Deputy McClure and Lt. Kidney returned to the trailer and began to impound it when they discovered the covered wagon frame also belonging to Jones approximately 25 yards from the trailer. The trailer had been repainted. While on the scene, Justin Lewis arrived and, according to official documents, admitted he let “someone” park the trailer there. He said he had seen officers in the field so he went to his mother’s house to call the “guy hat put the trailer there” asking that person to come to Lewis’ property to talk to the officers.

Asked if he was a city employee Lewis only said, “You’re good you will figure it out.” Lewis then told Lt. Kidney he could not tell then who the other person was because of “it being a political mess.” When asked what that meant, Lewis said, “You know what I mean.”


Suspect pick-up
Lewis was not arrested and remained at his property when the officers departed with the trailer. Lt. Kidney returned shortly, asking Lewis, “Was it Jason McMahan?”

Lewis said, “You’re good.” Lt. Kidney then asked if Jason McMahan was the one who brought the trailer to his house. Lewis said he, “could not” tell him.

November 3, Lt. Kidney contacted Jason McMahan. At Tecumseh Police Headquarters, McMahan was advised of his Miranda Rights and made the following statements: 1.) McMahan knew Gary Jones had a trailer stolen, but did not know anything about the trailer recovered from Justin Lewis’ field, 2.) McMahan was at work until 12:30 am the night the trailer was stolen, and 3.) McMahan owns a red extended cab pick-up with a gooseneck hook-up, which is required for a pickup to pull the trailer.

The same day, Justin Lewis gave the following written statement after being advised of his Miranda Rights:


Jones Campaign Trailer
“I, Justin Lewis Had a trailer Recovered from my property at 29387 Kimes Ave Macomb OK. Pott County on Nov 2, 2006 at time of Recovery I leared it had Been stolen I Received the Trailer from parties who cant be named at this time and had no prier Knowledge it was stolen until time of Recovery” (sic)

On February 1, 2007 Justin Lewis was interviewed by Deputy Jim Patten of the Pottawatomie County Sheriff’s Office and after being advised of his rights made the following admissions: 1.) When asked what knowledge he had of the trailer he said, “I knew the trailer was on my property,” 2.) When asked if he knew the trailer was stolen he said, “Probably,” 3.) When advised it would be best if he was honest, he said, “You wouldn’t understand, I just can’t say.” Then he volunteered, “I don’t care what happens I’m not saying anything, I’ll just take whatever happens to me.”

Lewis was not taken into custody until a warrant was issued in April of 2007 charging that he knowingly concealed stolen property – a felony.

Jones says, “Anyone can see from official statements that Jason McMahan stole my trailer.”


Suspect pick-up
The night of the theft both Jason McMahan and Justin Lewis were City of Tecumseh Water Department employees, worked out of the City Barn and worked together on the night shift until 12:30 am. The photographs of the red pick-up truck accompanying this story were taken by Lt. Kidney of the “suspect vehicle” which is Jason McMahan’s truck.

If law enforcement or the court system had been timely in the release of this information, it could have made a difference in the election contest between Jason’s brother Jeff McMahan and Gary Jones.

After indicating to Jones that Lewis would be pressured to name the thief or face trail, the Pottawatomie County District Attorney, Richard Smotherman and judge allowed Lewis in late December to enter a blind plea and gather a deferred sentence which means he will not even have a permanent blemish on his record if he stays out of other legal trouble during the time period.

“Basically they swept it under the carpet,” Jones said. “They hid the facts to protect Jeff McMahan’s election, never charged Jason McMahan and let his accomplice skate the system. There is no justice in any of this,” Jones added.

The case had been turned over to the Pottawatomie County District Attorney the day after the trailer had been discovered because Tecumseh Detective Lt. Kidney told Jones, “I felt I had a conflict of interest because it appeared the crime was committed by two city employees and my brother is married to Jeff McMahan’s sister.”

Pottawatomie County District Attorney, Richard Smotherman played in Jeff McMahan’s fundraising golf tournament at least three times. He did offer to recuse himself, but not until after Jones asked him about his donations to McMahan and just days before the plea deal was accepted.



OK Auditor and Inspector, Jeff McMahan
Jones said Lewis’ attorney is also a former employee of Jeff McMahan and a campaign contributor.

Jones said, “If politics had been played cleanly in Oklahoma, I would have more than likely won the 2002 election contest with Jeff McMahan – it was that close and the $80,000 to $100,000 of illegal campaign donations he got made the difference. In the last race [2006] all these stories Tulsa Today published the more mainstream media would not cover because they claimed it was political. Most feel that if those stories or this one had come out before the election– yes I would have won that race as well.”

Jones was later elected Chairman of the Oklahoma Republican Party.

When asked about being afraid of being sued for making accusations Jones replied “The best defensive against slander is the truth. All I have ever wanted is for the truth to be known. If it means that I am sued or that I have to sue to get my day in court so be it. The public deserves the truth.“

“How many times do Oklahomans have to catch Jeff McMahan lying? He lied about his relationship with Steve Phipps, he lied about his relationship with Gene Stipe, and he lied about money and vacations and gifts received while he has held the office of Oklahoma State Auditor and Inspector. Under normal circumstances he would have been prosecuted and thrown out of office a long time ago,” Jones said.

Jones added, “The funny thing is that the Oklahoma State Auditor and Inspector swears an oath to protect Oklahoma taxpayers.”

Last Updated ( Wednesday, 02 January 2008 )

'NUTTY' Stipe Transfers Oil And Gas Interests...

Thu December 27, 2007

Property transfers could bring more legal troubles for Stipe
By Nolan Clay
Staff Writer

Indicted former state Sen. Gene Stipe has transferred his oil and gas interests in counties across Oklahoma to a new company, records show.

A state representative who learned about the transfers confirmed Wednesday he notified the FBI.

Stipe on Nov. 20 assigned his oil and gas interests in Oklahoma County and at least 16 smaller counties to Gene Stipe Exploration LLC, records show. An attorney filed paperwork to start the company Nov. 15.

Stipe has been on house arrest since a judge found him mentally incompetent to face probation revocation proceedings. Stipe was put on probation after admitting to illegal fundraising schemes involving a protege's 1998 failed congressional campaign.

Stipe also faces new accusations after being indicted in October. A federal grand jury accuses him of paying a kickback and other crimes.

Rep. Mike Reynolds, R-Oklahoma City, said he gave information to the FBI because he questioned how Stipe legally could transfer property after being found to be mentally incompetent.

"It seemed rather ironic to me,” Reynolds said.

Stipe's attorneys could not be reached for comment.

U.S. Attorney Sheldon Sperling said, "I would encourage anyone with actionable information in this case or any case to contact either our office or the appropriate investigative agency.”

http://newsok.com/article/3185646/1198734527

Legislator Wants Stipe's Name Removed From Capitol Dome

Calls it an embarassment.
By Jerry Bohnen
Wednesday, October 17, 2007

Republican State Representative Mike Reynolds figures former State Senator Gene Stipe is enough of an embarassment for the State, so he's calling for the removal of Stipe's name chiseled into the dome of the State Capitol.

"I think we need to carefully evalute whether or not it's appropriate to have the Stipe family memorialized on the dome of the capitol," said Reynolds in an interview with KTOK's Peter J. Rudy. But he also explained that the dome is not owned by the State of Oklahoma--rather by a foundation so it would be up to the foundation to remove the name.

"You know--I might even vote for a tax increase if they chisel his name off," remarked the Republican legislator.

Stipe's legal problems have grown in the past year.

First he came under a federal investigation for his alleged role in a scheme of bribery and funneling state money to his private business interests; then the government started efforts to revoke his probation from a previous campaign contrbution scheme and conviction.

This week, a federal prison psychologist form Springfield, Missouri said that after conducting medical and psychological tests on the 80 year old Stipe, he determined Stipe was not mentally competent to handle the revocation hearing in Muskogee federal court.

http://www.ktok.com/cc-common/mainheadlines2.html?feed=119211&article=2800211

http://newsok.com/article/3136806/1191150781

Sun September 30, 2007

How a $441G grant helped Stipe

By Tony Thornton
Staff Writer

SCIPIO — It was heralded as a boon for tourism, the kind that would bring jobs and other economic benefits to Pittsburg County.

Three years later, the federal government has little to show for its nearly half-million-dollar investment in rugged land purchased from former state Sen. Gene Stipe.

Debate continues as to whether Stipe's political clout played a role in a federal grant used to buy his land for a 1,720-acre, off-road trail project near the Scipio community.

The $441,600 Stipe received was the largest grant ever approved for Oklahoma's federally funded Recreational Trails Program.

State officials involved in approving the grant said they scrutinized the matter intensely after learning of Stipe's involvement.

"It went through the normal process,” said David Franklin, chairman of the Oklahoma Trails Advisory Board, which recommended approval of the grant to the state Tourism and Recreation Commission.

However, Franklin said he didn't learn Stipe owned the land until after the grant was approved.


‘A fair price'

Stipe tried selling the Scipio land for years but found no one willing to meet his price of $300 an acre, said Pittsburg County Assessor Jim Kelley, who tried to broker a deal to buy the land in the mid-1980s.
"In 1984, that was way too much. Now, it's a fair price,” Kelley said.

The land, part of roughly 5,000 acres Stipe once owned in the Scipio area, is filled with rocks and scrub oaks.

In 2004, when state and federal officials approved the grant for his Scipio land, Stipe was needing cash. A federal judge and the Federal Election Commission had just fined him more than $1 million for his role in the Walt Roberts campaign fraud case. Stipe also incurred massive attorney bills in that case.

He ended up selling 1,430 acres in November 2004 to a nonprofit group called Oklahoma Trail Riders for $441,600 that the group secured through a federal grant. Stipe donated an additional 290 acres appraised at $93,607 to fulfill a requirement of the grant. Two months later, Stipe sold a right-of-way easement to the motorcycle club for $20,100. The easement provides road access to the trails.

Each state gets Recreational Trails Program grant money based on a percentage of fuel taxes. In fiscal year 2005, Oklahoma got $1,058,213. The program funds motorized and nonmotorized trail projects for towns and entities like the Oklahoma Trail Riders.

The grant program requires recipients to come up with 20 percent of the total funding. The value of the land Stipe donated was considered matching funds. Factoring in the donated land, Stipe got $256 per acre. He also got a tax write-off for his donation.

"At that price, he didn't hurt nobody,” Kelley said.

Eight months before his sale to the motorcycle club, Stipe sold 3,324 adjoining acres of similar land to a Tahlequah man for $600,000, or $180 an acre. The buyer recently resold the land to a Texas man for $1.4 million, or $428 an acre, Pittsburg County property records show. That increase illustrates how property values in southeastern Oklahoma have skyrocketed recently, largely because of hunters seeking lease property.

"It's gone crazy,” said Rick Fender, an assistant assessor in Pittsburg County. "The stuff you used to get for $200 an acre, you can hardly get it for $1,000 now,” Fender said.


Stipe associate found land

Steve Travis, president of the Oklahoma Trail Riders, said approval of the group's grant application took more than three years.

"My opinion is, because of the landowner being who it was, it took longer than it would have otherwise. I think it caused more scrutiny,” Travis said.

He said the group approached a Tahlequah real estate agent around 2001 and asked her to find enough rugged land for motocross trails to be funded through a federal grant.

"She calls us back and says, ‘I think I've got some land for you,'” Travis said.

Records obtained by The Oklahoman show that the purchase went through Crosslin Real Estate in Tahlequah. Louise Crosslin, who operates the company, has business associations with Stipe dating back nearly 40 years.

Coincidentally, Crosslin served on the federal grand jury that indicted Stipe in a 1968 income tax evasion case. She joined him in a business venture a year after his acquittal in that case.

Crosslin Real Estate collected a $28,743 commission from the Scipio land sale, records show.

Travis noted that two independent appraisers determined the land's value. A third appraiser, Stephen Greer of Edmond, then reviewed the work of the other two and recommended a fair price to the Tourism Department. Greer's recommendation of $321 per acre was used to establish the amount Stipe would receive.


Proponents became grand jury witnesses

Those who wrote letters supporting the motocross track have familiar names to the FBI and federal prosecutors. Many of them also helped Stipe obtain state and local tax money for land he sold for a McAlester dog food plant in 2002.
A federal grand jury in Muskogee has spent much of the last year investigating the financing of National Pet Products and whether Stipe also was a part-owner.

Randy Green, who was then McAlester's city manager, said the Scipio trails project would have a "tremendous economic impact” that would create new jobs.

Then-McAlester Mayor Dale Covington predicted the trails project would create 15 to 25 jobs through a 3 percent increase in local hotel/motel taxes.

Both wrote their letters to the Federal Highway Administration on Oct. 8, 2003, long before it was disclosed who owned the property for the proposed trails.

A year earlier, Green urged his city council to spend $250,000 in local tax money as startup funding for the dog food plant, failing to mention Stipe's involvement.

Others who wrote letters supporting the Scipio trails project were Chester Dennis, executive director of the Kiamichi Economic Development District of Oklahoma; and Jason Smith, who then was director of the McAlester Economic Development Service.

Both testified before the grand jury concerning their involvement in the dog food plant deal, as did Green and Covington.


Trails' location is remote

Don't bother trying to find the Scipio Recreational Trails Project without a detailed map of Pittsburg County. The trails are 18 miles northwest of the Oklahoma State Penitentiary, far from any road you'll find on a state map.
Getting there requires traversing winding blacktop county roads to Scipio, then taking a gravel road the final three miles. No signs offer directions.

10-foot sign greets all-terrain vehicle and motocross riders at the trails' entrance. The sign thanks the state and federal government and acknowledges the land donation from "State Senator Gene Stipe,” even though Stipe left office 18 months before the land deal was done.

The Oklahoma Trail Riders' plan, which helped secure the federal money, said the trails would open within two years and thereafter would be open 24 hours a day, seven days a week.

However, the group missed its projected opening by nearly a year. And on a weekday visit last week, the entrance was closed.

The McAlester Chamber of Commerce told federal officials in 2004 that the trails would bring sales tax revenue and jobs to the area.

However, the chamber's executive director, who began working there in 2005, said last week she'd never heard of the project and is unaware of any benefits it has created.

In July 2006, the Tourism and Recreation Commission approved another grant for the Scipio trails. The $51,600 grant was to develop a trailhead, build rest rooms and a payment kiosk, and add more trails.