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Only an absolute moron would take a picture like this, while at
the same time, allegedly engaging in bribery and other illicit
schemes
An event that was as inevitable as the sun rising in the east occurred last Friday. Jeff McMahan and his wife Lori were FINALLY indicted on conspiracy and
bribery charges.McMahan, who claimed he didn’t know shyster Steve Phipps – accepted gifts, in addition to, hunting and gambling trips from him. It makes you wonder? Are these people just that stupid, cocky, or both? How could you not think that people weren’t going to notice your alleged illegal dealings?
Here’s one example of their stupidity and greed. Lori McMahan allegedly received a pair of $500 earring as a gift from Stipe. Now, instead of getting rid of the earrings – that you can never wear in public again – she stashes them at her sister’s house! If she wasn’t so greedy, that one less count could have knocked a few years off that long prison term she’s facing.
“Reliable sources tell the Oklahoma Political News Service there will be two more indictments handed down this Friday from a Federal Grand Jury.” (1/14/08)
Read more:
Statement from Oklahoma GOP Chair Gary Jones:
“Today is a disappointing day for Oklahoma with the nine count federal indictment of State Auditor and Inspector Jeff McMahan and his wife. The office of State Auditor is one that requires a person that will conduct themselves in a manner that is above reproach. I agree with Governor Henry the Auditor should step down immediately until this situation is resolved. “
Tulsa Today: (1/2/08) McMahan brother accused of political felony
OKPNS FLASHBACK: Jeff McMahan’s “Other” Scandal
Reliable sources tell the Oklahoma Political News Service there will be two more indictments handed down this Friday from a Federal Grand Jury.
Embattled State Auditor & Inspector Jeff McMahan and former lawmaker Randal Erwin are said to be under investigation by the FBI for numerous alleged misdeeds. OKPNS will continue to investigate and pass along any information we receive.
Hat tip:You can hear it all…Thru the GRAPEVINE!
From the Tecumseh Countywide News & Shawnee Sun:
The case of the stolen campaign trailer was laid to rest Tuesday when a City of Tecumseh employee pleaded no contest to a charge of concealing stolen property and was given a deferred sentence.
The charge against Justin Lewis of Macomb will be dismissed if he successfully completes the five-year deferred sentence, including two years of supervised probation, $1,808 in restitution, 100 hours of community service and some court costs.
District Judge Doug Combs went against the recommendation of District Attorney Richard Smothermon in granting the deferred sentence. Smothermon, who handled Tuesday’s appearance himself, said he had, “from day one, recommended a three-year suspended sentence if he would disclose who actually did it.” Read more…
“I was told that Jeff McMahan was going to take the deal and plead guilty to one felony count. He told someone he was given till the end of November or both he and his wife were both going to be charged.
Word is his wife told him if he didn’t take the deal she was going to testify against him. She was worried that both might end up in prison leaving no one to take care of the kids.
Also things are very tense at the auditor’s office as they think there is a mole. Someone from the office testified to the Grand Jury and has been providing information.
Also I was told that more than 20 employees were questioned about a state ethics investigation into McMahan.”
Today our State Auditor Jeff McMahan’s wife met with Federal Agents looking into possible political corruption. Corruption? What Corrutpion?
Today our State Auditor Jeff McMahan’s wife met with Federal Agents looking into possible political corruption. Corruption? What Corrutpion?
Message from Chairman Jones
This week, convicted felon and former Senator Gene Stipe will appear before a federal judge in Muskogee facing the possibility of having his payroll revoked and going to prison. After many decades of alleged wrong doing, Stipe was convicted and removed from office in 2003, was given a suspended sentence, and has been on probation since that conviction.
We are now reading daily reports about another ongoing scandal involving Stipe, Stipe’s partner, former Democrat lawmakers, and several current high ranking elected Oklahoma Democrats including Attorney General Drew Edmondson, State Auditor Jeff McMahan and even Governor Brad Henry. The FBI met with our very own State Auditor for the third time last Thursday.
You have to wonder how a scandal this widespread could go on right under the noses of those officials who Oklahoma voters elected to keep it from happening. And second, why our state officials aren’t investigating the matter.
It’s actually pretty simple. The officials that could look into this mess are too closely tied to those responsible, and therefore they can’t see the forest because of the trees.
Attorney General Drew Edmondson and State Auditor Jeff McMahan (along with others) have accepted tens of thousands of dollars in illegal contributions from Stipe and his associates. Yet they will not remove themselves from the investigation. When the governor was asked to name an independent agent to do the investigation, Edmondson responded that the request was political.
Absolutely, Mr. Edmondson…this is political. It involves large illegal political contributions to your campaign and that of the state auditor. It is political Mr. Edmondson, because the campaign consultant for both you and the auditor has been named as a recipient of state funds, which were illegally funneled through the Rural Development Foundation. It is political Mr. Edmondson, and that is exactly why you should remove yourself and demand the state auditor be removed as well
Court documents mention that Jason McMahan was read his rights on November 2nd and questioned about the theft. It also reports that McMahan admitted to owning a pickup that fit the description of the one seen pulling the trailer away at 2am in the morning when it was stolen.
Tecumseh Countywide News & Shawnee Sun:
A City of Tecumseh employee was bound over for arraignment and trial Tuesday morning in connection with the theft of a campaign trailer almost a year ago.
Justin Lewis of Macomb faces up to five years in prison if convicted of knowingly concealing stolen property, in this case a trailer which belonged to a supporter of Gary Jones, a candidate for state auditor & inspector in last year’s election against incumbent Jeff McMahan of Tecumseh.
Jones, now chairman of the state Republican Party, offered a $2,500 reward for information leading to the conviction of whoever stole the trailer, but to date no one has been charged with the theft. Jones was in the courtroom for Tuesday’s hearing.
Special District Judge David Cawthon found sufficient evidence to hear the case after a preliminary hearing Tuesday. Among the witnesses were Tecumseh Police Detective J.R. Kidney and Pottawatomie County Sheriff’s Deputy Jim Patten.
Kidney testified that he and another deputy found the trailer on property belonging to Lewis on Nov. 2, six weeks after it disappeared in Tecumseh. Read more…
By Gary Jones
OKGOP Chairman
1) Larry Witt and Steve Phipps conspired to funnel corporate contributions into the 2002 State Auditor campaign of Jeff McMahan. FBI affidavits and witnesses have testified that such money was paid to them for the purpose making said contributions. Estimated totals range from $75,000-$100,000. These funds made up a large portion of McMahan’s total contributions and had a significant impact on the election results.
2) Steve Phipps met on numerous occasions in the office of the State Auditor with legislators including Mike Mass to discuss and arrange for state funds to be funneled into a scam non-profit foundation, Rural Development Foundation, located in an abstract company owned by Phipps and Gene Stripe in Antlers, Oklahoma. Both Mass and Phipps have pleaded guilty to federal charges and are now waiting sentencing to connection to the scheme.
3) After denying for months McMahan admitted to going on fishing and gambling trips paid for by Phipps. Such trips would constitute something of value received by an individual regulated by McMahan and his office and may be grounds for removal from office.
4) Duane Smith from the Oklahoma Water Resources Board has reported that he was called into a meeting with the State Auditor Jeff McMahan, Mike Mass and Steve Phipps. During the meeting Smith said he was advised that Mass had put wording in the agency appropriation bill to funnel funds to a trust authority setup by Phipps to aid in selling water from Lake Eufaula. McMahan advised Smith to help get that done and he would make the audit look clean. In 2006 McMahan asked the governor to perform an audit on OFRW. The audit failed to reveal the connection between McMahan and Phipps the principle person being audited and also failed to disclose items which should have been reported and in effect provided the cover-up McMahan had promised.
5) Larry Witt (Ry-son Oil) is seeking to purchase shares in several abstract companies owned by Steve Phipps. The sale of Phipps’ shares can not take place without approval of Jeff McMahan, State Auditor.
6) Witt was named in the university housing bond scandal involving Senate president Pro-Temp Mike Morgan. Morgan is also said to responsible for funneling state funds to but Stipe and Phipps’ train that is sitting and rusting in Guthrie.
Jeff McMahan and his office should be removed from the approval process as there exist a clear conflict of interest by McMahan in this matter.
A cause of action should be filed against Phipps, Stipe and Witt to recover state funds illegally obtained. The corporate assets of Phipps Enterprises and Corporate Finance Group should be frozen until such action has been litigated.
Related:
ObserverBlog: “The Education of Jeff McMahan”