Showing posts with label Steve Phipps. Show all posts
Showing posts with label Steve Phipps. Show all posts

Monday, April 5, 2010

VOTER FRAUD PENALITIES MAY INCREASE!

Hat Tip to Steve Fair

Weekly Opinion/Editorial

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.

Saturday, January 26, 2008

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


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

Friday, January 25, 2008

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.

Friday, January 18, 2008

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

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.

Wednesday, January 2, 2008

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 )