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.

Bill Would Overhaul Appointment of Replacement Officeholders

Lawmakers have voted to change the way vacancies in statewide offices are filled.

House Bill 1322, by state Rep. Mike Reynolds, would allow Oklahoma voters, not the governor, to choose the person who fills any vacated statewide office.

Reynolds filed the legislation to prevent any scandals from occurring similar to the one experience recently in Illinois, where Illinois Gov. Rod Blagojevich was accused of trying to “sell” an appointment to the then-vacant U.S. Senate seat.

“The appointment power can easily be abused and Oklahoma has seen more than its share of corruption already,” said Reynolds, R-Oklahoma City. “My bill will simply remove that temptation and ensure the people of Oklahoma choose the people they want to serve in office.”

If any major office is vacated before the end of the officeholder’s current term that position would remain unfilled until the next general election under the proposal. Currently, the governor is allowed to appoint a successor.

Reynolds noted that Gov. Brad Henry actually endorsed a similar course of action when former State Auditor Jeff McMahan was under federal investigation. During that controversy, Henry urged McMahan to step aside during the investigation. McMahan later resigned from office after being convicted.

Reynolds also noted that vacancies in the state Legislature are filled through the election process and not by gubernatorial appointment.
In recent years, two major statewide officeholders have resigned due to legal troubles: McMahan and former Insurance Commissioner Carroll Fisher. Other vacancies have occurred in the offices of State Treasurer and Corporation Commissioner.

House Bill 1322 passed out of the House Rules committee and now proceeds to the floor of the Oklahoma House of Representatives.

Reynolds Calls on McMahan to Name Names

State Rep. Mike Reynolds today urged former State Auditor and Inspector Jeff McMahan to cooperate with federal investigators working to weed out corruption in Oklahoma government.

“When he was sentenced this week, Mister McMahan indicated he was simply a ‘naïve’ man caught up in a corrupt system,” said Reynolds, R-Oklahoma City. “If that’s the case, Mister McMahan should specifically identify all the individuals engaged in corruption. There’s no reason to shield those people from prosecutors.”
McMahan was sentenced this week to eight years and one month in federal prison as the result of a public corruption case that involved illegal campaign contributions and the acceptance of bribes.
In court papers, McMahan claimed that he and his wife were “politically naive newcomers” who got caught up in an already corrupt system, according to the Tulsa World.

“I agree with Mister McMahan on one thing: He was involved in a corrupt system,” Reynolds said. “However, so far he has refused to identify that corruption and provide evidence to federal investigators. It’s time he backs with rhetoric with action. I agree with Mister McMahan on one thing: He was involved in a corrupt system,” Reynolds said. “However, so far he has refused to identify that corruption and provide evidence to federal investigators. Rather than looking for sympathy, I suggest he instead look for atonement by revealing the names of the people that corrupted him and help rid Oklahoma of this corruption.”

llinois Scandal Prompts Oklahoma Reform Proposal

In light of allegations that Illinois Gov. Rod Blagojevich effectively tried to “sell” an appointment to the now-vacant U.S. Senate seat in that state, one Oklahoma lawmaker is filing legislation to ensure similar corruption cannot occur in Oklahoma.

State Rep. Mike Reynolds said today he will file legislation that would allow Oklahoma voters, not the governor, to choose the person who fills any vacated statewide office.

If any major office is vacated before the end of the officeholder’s current term that position would remain unfilled until the next general election under the proposal. Currently, the governor is allowed to appoint a successor.

“The Illinois scandal makes clear that the appointment power can easily be abused and we’ve had more than our share of corruption in Oklahoma already,” said Reynolds, R-Oklahoma City. “My proposal will simply remove that temptation and ensure the people of Oklahoma get to choose the people they want in office.”

Reynolds noted that Gov. Brad Henry actually endorsed a similar course of action when former State Auditor Jeff McMahan was under federal investigation. During that controversy, Henry urged McMahan to step aside during the investigation. McMahan later resigned from office after being convicted.

Reynolds also noted that vacancies in the state Legislature are filled through the election process and not by gubernatorial appointment.

In recent years, two major statewide officeholders have resigned due to legal troubles: McMahan and former Insurance Commissioner Carroll Fisher. Other vacancies have occurred in the offices of State Treasurer and Corporation Commissioner.

Reynolds say Governor Involved in Illegal Contributions

Gov. Brad Henry has apparently funneled $10,000 in illegal contributions to a partisan organization according to ethics records uncovered by state Rep. Mike Reynolds.

Campaign reports show that Henry donated $5,000 of his surplus campaign funds to the Young Democrats of Oklahoma in 2007 and again in 2008.

However, it is illegal for a candidate to give his or her campaign funds to any partisan organization other than a state party and its affiliates (county parties).

As a result, the Young Democrats of Oklahoma are not an official party affiliate under campaign finance law and cannot legally receive the governor’s surplus funds.

“These transactions are an obvious violation of state law,” said Reynolds, R-Oklahoma City. “Our state leaders must be held to high ethical standards that ensure fair and legally funded elections in Oklahoma. The governor’s actions do not pass that test.”

After the Young Democrats of Oklahoma received Henry’s contributions, Reynolds said that money may have been illegally used to fund the campaigns of Democratic candidates.

However, the Young Democrats of Oklahoma have failed to file any reports with the state Ethics Commission since early 2008, missing several legally required reporting deadlines that would have revealed how Henry’s money was expended.

“I don’t know why the Young Democrats would repeatedly fail to file reports in advance of the election if they have nothing to hide,” Reynolds said.

The Oklahoma City lawmaker suggested an official investigation should be launched, but noted Attorney General Drew Edmondson has also been involved campaign finance controversies. In 2007, officials learned Edmondson had given thousands of dollars in apparently illegal contributions he claimed were the result of a misunderstanding.

Edmondson also failed to investigate former State Auditor Jeff McMahan’s use of illegal straw donors in political campaigns – actions that resulted in a federal investigation and conviction for McMahan.

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.

Judge delays start of McMahan trial

A federal judge has agreed to delay the criminal trial of state Auditor and Inspector Jeff McMahan and his wife, Lori.

The judge on Friday moved the trial from March 3 to June 2.

A federal grand jury indicted the pair last month on nine counts, including conspiracy, mail fraud and violating the Travel Act to commit bribery.

They are accused of accepting improper trips and illegal campaign contributions from a southeast Oklahoma abstract company owner.

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

McMahan turns over day-to-day duties.

McMahan turns over day-to-day duties after pleading not guilty to conspiracy, mail fraud and bribery.

Can He do this ?

Oklahoma Auditor and Inspector Jeff McMahan announced Friday afternoon that he will turn over the day-to-day operations of the office to assistant State Auditor Michelle Day.

McMahan and his wife Lori McMahan were arraigned Friday morning in federal court in Muskogee on nine felony counts of conspiracy, mail fraud and state bribery. The couple pleaded not guilty.



"I will continue to be available to the office for consultation during the ongoing efforts to prove my innocence," McMahan said in a statement.

McMahan plead not guilty to conspiracy, mail fraud and bribery

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.

VIDEO: Reynolds Calls for Legislative Investigation of State Auditor

For more info click here

Reynolds Calls for Legislative Investigation of State Auditor

FOR IMMEDIATE RELEASE:
Contact: State Rep. Mike Reynolds
Capitol: (405) 557-7337

Resolution Calls for
Legislative Investigation
of State Auditor

Special Committee Would be
First Step toward Impeachment

OKLAHOMA CITY (January 24, 2008) - State Rep. Mike
Reynolds today filed legislation to create a special
committee to investigate State Auditor and Inspector
Jeff McMahan and determine whether Articles of
Impeachment should be pursued.

"Given the very serious charges leveled against Mister
McMahan by federal investigators, the members of the
Oklahoma House of Representatives now have a clear
constitutional duty to investigate those charges and
determine if impeachment is appropriate," said
Reynolds, R-Oklahoma City.

House Resolution 1051, by Reynolds, calls for the
creation of a Special Investigating Committee of
the House of Representatives "to conduct a
comprehensive and detailed study and investigation
of the activities of Jeff McMahan, State Auditor and
Inspector ..."

The committee would have the power to subpoena
witnesses, documents and records; take testimony
under oath and request punishment for contempt
for "any disobedience of process."

Speaker Lance Cargill (R-Harrah) would appoint
the committee members.

The process outlined in the resolution is similar to
the one used during the investigation and eventual
impeachment of former Insurance Commissioner
Carroll Fisher.

McMahan has been indicted on one count of
conspiracy, six counts of mail fraud and two counts
of violating the federal Travel Act to promote bribery.

Following McMahan's indictment, several officials
suggested the auditor should step aside until a
conviction or acquittal occurred, but Reynolds said
that may not be legally permissible.

Reynolds noted there is no provision in the
Oklahoma Constitution allowing an elected official to
"step aside" while still retaining office. In fact, he said
some legal experts believe McMahan will effectively
vacate his office should he step aside and, as a result,
could then actually be impeached for "nonperformance
of duty."

Reynolds said he will ask Attorney General Drew
Edmondson to issue a formal opinion on that legal
question.

Statement from Jeff McMahan's attorney

Click here to read

Governor Henry Wants State Auditor To Step Aside Amid Grand Jury Allegations

Governor says allegations are very serious.
By Beth Myers
Friday, January 18, 2008

Governor Henry says the grand jury allegations against State Auditor and Inspector Jeff McMahan are very serious allegations and he is greatly concerned about them. In a statement he says, "Before I pass judgement, I want to review all the available information and hear the auditor's public response to the charges. In the meantime, however, I believe it would be appropriate for the auditor to step aside on administrative leave and turn over the office's day to day operations to his chief deputy while the allegations are resolved. It is important to protect the public interest in this matter and ensure that the daily functions of the auditor's office are not impeded by the ongoing legal proceedings."

Grand jury indicts McMahan

Grand jury indicts McMahan, wife
By SUSAN HYLTON World Staff Writer

A federal grand jury on Friday indicted Oklahoma State Auditor and Inspector Jeff McMahan and his wife, Lori McMahan, on nine felony counts involving conspiracy, fraud and racketeering.

The indictment alleges that McMahan and his wife received cash, other items of value, supplies and straw donor contributions far exceeding the amount limited by law. U.S. Attorney Sheldon Sperling said he expects the McMahans to be arraigned next week.

The conspiracy began in February 2002 and ran through August 2007, indictment alleges. Sperling said the object of the scheme was for the McMahans to receive bribes and gratuities in exchange for favorable treatment.

"This is a sad day," Sperling said. "Political offices should not be for sale."

Count 1, conspiracy to commit mail fraud, is punishable by up to five years in prison and a fine of up to $250,000. Counts 2 through 7 are mail fraud and are punishable by up to 20 years in prison and a fine of up to $250,000 for each count.

Counts 8 and 9 are tied to bribery allegations; they are punishable by up to five years in prison and a fine up to $250,000 for each count.

The FBI has questioned McMahan several times regarding his connections to Steven Phipps, a former business partner of former state Sen. Gene Stipe.

McMahan has admitted that Phipps took him on a fishing trip, a trip to New Orleans and a trip to a casino in Biloxi, Miss. He also has admitted that Phipps has sponsored several fundraisers for him.

Phipps co-owned several abstract companies with Stipe. McMahan's office regulates the abstract industry.

FBI investigators obtained a search warrant and in August went to the home of McMahan's sister-in-law, where they seized an unidentified item of jewelry.

Kevin Krahl, attorney for Lori McMahan, said she received a pair of earrings from Phipps.

Sources have said that FBI agents also went to McMahan's home to confiscate campaign records.

Phipps has pleaded guilty to paying kickbacks to lawmakers who funnelled state money to his businesses and has agreed to cooperate in the ongoing grand jury investigation.

Grand jury indicts Demo Oklahoma State Auditor and Inspector

State auditor McMahan and wife indicted

By Tony Thornton and Michael McNutt
Staff Writer
Fri January 18, 2008

MUSKOGEE — A federal grand jury indicted state Auditor and Inspector Jeff McMahan and his wife today, accusing them of accepting improper cash and gifts from a southeast Oklahoma businessman.

The nine-count indictment alleges Jeff and Lori McMahan received jewelry, trips and excessive contributions to Jeff McMahan's first campaign in 2002.

In return, the indictment alleges, the auditor granted special favors to an unnamed abstract company owner. That businessman is Steve Phipps of Kiowa, The Oklahoman confirmed.


McMahan's office regulated the abstract industry until Jan. 1. The Legislature last year created a separate agency for that purpose amid reports of McMahan's ties to Phipps.

"Political offices should not be for sale," U.S. Attorney Sheldon Sperling said upon the indictment's release.

The indictment came shortly after Phipps testified behind closed doors this morning. Phipps has appeared several times before the grand jury since cutting a deal with federal prosecutors nearly a year ago. He awaits sentencing on a conspiracy count.

The McMahans weren't arrested Friday. Sperling said he expects them to appear in Muskogee's federal courthouse next week.

Jeff McMahan's attorney, Rand C. Eddy, said the McMahans have cooperated fully with investigators.

"While they are capable of errors in judgment or in association, Jeff and Lori are innocent of the charges," Eddy said.

Lori McMahan's attorney, Kevin Krahl, called the indictment "unfortunate."

"We answered every question they posed to her," Krahl said.

What indictment alleges

Both Jeff McMahan and Lori McMahan, a Tecumseh schoolteacher, face the same nine counts: one conspiracy count, six mail fraud counts and two counts of violating the Travel Act to promote bribery.

The maximum total prison time possible for the nine counts is 135 years.

The Travel Act allegations concern trips the McMahans allegedly took on Phipps' tab. One trip was to New Orleans in the summer of 2003; the other was to Boston for the 2004 Democratic National Convention.

During the New Orleans trip, Phipps gave Lori McMahan — with her husband's knowledge — a ring that cost $1,640, the indictment alleges.

The indictment actually mentions two other trips allegedly paid for by Phipps: a fishing trip involving McMahan and his teenage son; and a second trip to New Orleans by Jeff and Lori McMahan in October 2004.

Phipps also contributed, either directly or indirectly, $77,600 to McMahan's 2002 campaign through straw donors, according to the indictment.

In addition, Phipps handed an envelope containing $10,000 to Lori McMahan on Oct. 22, 2002, the indictment states.

The cash exchange allegedly occurred at a Shawnee restaurant. Lori McMahan told her husband she and Phipps had business to conduct, the indictment states.

Reaction swift

Gov. Brad Henry said today it would be "appropriate" for McMahan to take an administrative leave of his office.

"Before I pass judgment, I want to review all the available information and hear the auditor's public response to the charges," the governor said. "In the meantime, however, I believe it would be appropriate for the auditor to step aside on administrative leave and turn over the office's day-to-day operations to his chief deputy while the allegations are resolved."

Oklahoma Republican Party Chairman Gary Jones, who opposed McMahan in the 2002 and 2006 general elections, called for McMahan to resign.

"The honorable thing to do would be for him to step down," Jones said. "The problem is that he's not known to do the honorable thing."

Jones alleged during his 2006 campaign that McMahan received questionable contributions in the 2002 campaign.

He repeated his request Henry name a special prosecutor to look into a scheme uncovered by federal authorities in which state money was used for business ventures and to reimburse "straw donors" on political campaigns.

"They need somebody without a conflict of interest," Jones said.

When Jones made his original request in June, Henry, a Democrat as is McMahan, said a separate probe is unnecessary because "an extensive investigation" is under way, said his spokesman, Paul Sund.

Auditor's staffers testified

FBI agents searched the McMahans' home in Tecumseh in August, looking for jewelry and campaign records. The agents later went to the home of Lori McMahan's sister and recovered jewelry thought to have been bought by Phipps.

The McMahans have been using separate attorneys since last summer, when prosecutors told the couple they might have conflicting legal interests.

Witnesses who testified before a federal grand jury in Muskogee include several current and former employees of the auditor's office, along with McMahan's predecessor, Clifton Scott.

The same grand jury indicted former state Sen. Gene Stipe and his brother Francis in October as part of an ongoing probe of political corruption.

The panel's investigation prompted former state Rep. Mike Mass to plead guilty last year to a conspiracy count. He will be sentenced after testifying at Francis Stipe's upcoming trial.

Separate investigation netted former insurance commissioner

McMahan is the second statewide elected official in four years to be indicted on corruption charges.

A state grand jury indicted then-Insurance Commissioner Carroll Fisher in 2004 in an unrelated case. He eventually was convicted of embezzling money from his campaign and lying on a campaign report. He is serving a three-year prison term and still faces felony charges, including tax evasion and accepting bribes in return for favorable treatment.

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 )