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Thursday, September 20, 2007 

Tell Me Something I Don't Know


Today our State Auditor Jeff McMahan's wife met with Federal Agents looking into possible political corruption. Corruption? What Corrutpion?

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Posted at 10:06 AM |  
Monday, August 27, 2007 

Where has Drew been?

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

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Posted at 1:13 PM |  
Friday, August 03, 2007 

City Worker Bound Over In Missing Trailer Case

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...

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Posted at 12:21 PM |  
Sunday, July 29, 2007 

Anatomy of a Scandal

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"

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Posted at 7:10 AM |  
Monday, June 25, 2007 

OKGOP Chairman: "Special Prosecutor Needed to Probe Campaign Contributions"

FOR IMMEDIATE RELEASE
Contact: Gary Jones
June 25, 2007 405-528-3501


This Wednesday Steve Phipps is scheduled to plead guilty as part of a plea agreement with the United States Government in connection with an FBI investigation of political corruption in Southeast Oklahoma. His estranged business partner, former Democratic State Senator Gene Stipe, will be back in court Thursday for a probation revocation hearing. Stipe, who is in the midst of a 5 year-probation sentence for illegal campaign activities, appears to be facing the judge in connection to similar charges of illegally funneling contributions to Congressman Dan Boren’s 2004 congressional campaign.

The federal investigation into the corrupt political shenanigans of Gene Stipe has sparked a grassfire of additional illegal activities and has grown to include a number of high level Democrats. While the federal government is doing its job, the same can not be said of the State of Oklahoma. While federal prosecutors are handing out indictments for federal crimes, justice will not be served without a state investigation and charges sought at that level. The feds have filed charges in connection with donations to Boren, but what about more than a hundred thousand dollars in contributions to State Auditor Jeff McMahan, Attorney General Drew Edmondson and Governor Brad Henry? To add insult to injury it appears that it was our own state tax dollars illegally funneled into these campaigns.

The Oklahoma officials normally responsible for investigating and prosecuting state related crimes have been implicated and may very well be involved themselves. It is imperative that Governor Brad Henry name a special prosecutor to pursue charges in this corruption ring. Attorney General Drew Edmondson has made comments that state charges may be pursued. However, he himself has been caught up in the straw donor scam along with the state auditor, not to mention the Democrat Leader of the Oklahoma Senate, Mike Morgan.

It's time for an independent state investigation. It’s time for Governor Henry to show leadership and name a special prosecutor. We need someone to investigate these crimes and stop those who are abusing our state and our citizens. Sadly, political corruption has been a part of our past hundred years. It need not be tolerated in our future.

Related

BUBBAWORLD dot NET: "Big Week for Gene Stipe"

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Posted at 11:50 AM |  
Friday, June 15, 2007 

Judge Says No to Watercooler Restraining Order

In another victory for bloggers and the new media, a McIntosh County judge has denied a request by Steve Covington for a restraining order and a temporary injunction sought against the McAlester Watercooler. Congratulations guys! Read more...

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Posted at 7:36 AM |  
Tuesday, May 01, 2007 

Rinehart Responds to Sun Editorial

From The Sunday Sun:

I must respond to the editorial commentary that appeared in your paper on April 15, 2007, to correct some inaccurate statements and explain what I have accomplished in office for the benefit of the citizens living in my district in Eastern Oklahoma County.

First, there was no ‘indictment’ as has been reported because no grand jury of 12 honest citizens would issue one. The attorney general himself filed an ‘Information’ alleging campaign finance violations of which I am innocent. The politically motivated charges and Drew Edmondson’s “presumption of guilt” has resulted in a Bar complaint against him.

Edmondson’s allegations, which you cited in your editorial as “straw donors,” do not concern straw donors at all. Rather, the allegations concern a single in-kind contribution for a mailing to my campaign for $3,980 from a political action committee that was fully and accurately reported in my campaign finance reports filed with the State Ethics Commission. This kind of contribution is entirely legal and proper for 101 state representatives, 48 senators, all of our congressional delegation and every other elected official in the state and countless candidates that received similar PAC contributions and reported them as I did. However, I repaid these funds over a year ago to avoid even the appearance of impropriety.

Your confusion about ‘straw donors’ comes from another case in the news, unrelated to me, in which Gene Stipe and Steve Phipps are accused of using fifteen people as ‘straw donors,’ or donors who use someone else’s money to illegally contribute to a campaign, to contribute tens of thousands of dollars in illegal campaign donations to Gov. Brad Henry, U.S. Representative Dan Boren, State Auditor Jeff McMahan, among others, all Democrats. Even the attorney general received Stipe/Phipps donations and just this month repaid thousands of dollars in illegal contributions from his own campaign coffers. Read more...

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Posted at 10:38 AM |  
Tuesday, April 17, 2007 

Jones Trailer Culprit Charged

UPDATE: Tecumseh city employee charged in campaign trailer theft

Sources tell OKPNS to stay tuned to how close this city employee is to State Auditor & Inspector Jeff McMahan. We were the first to break this story last week:


Exclusive

Wednesday, April 11, 2007

Sources close to the Tecumseh police investigation, tell OKPNS that the unsolved mystery of who swiped former auditor candidate Gary Jones'campaign trailer may be solved soon.

Once the arrest(s) are made, many will owe Jones an apology, including the current auditor Jeff McMahan, who accused Jones of staging the disappearance. McMahan's campaign vehemently denied any involvement in the disappearance.

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Posted at 1:16 PM |  
Friday, April 13, 2007 

Mike Mass Indicted

There is a popular board game called Jenga, that we believe symbolizes perfectly the alleged tangled and complicated financial scheme unraveling before our very eyes involving Gene Stipe, Steve Phipps, and State Auditor & Inspector Jeff McMahan.

The object of Jenga, is for each player to take take turns taking a block out of the tower of narrow wooden blocks, and then replacing it at the top. The remaining structure, sometimes seems to defy the laws of nature, but eventually, the whole thing comes crashing down and you lose. The Mike Mass indictment is another block removed from the Rural Development Fund Jenga tower. The Tulsa World has a surprisingly in depth piece on the indictment and scandal.


UPDATE: Former Lawmaker Pleads Guilty

MUSKOGEE, Okla. (AP) _ Former state Representative Mike Mass pleaded guilty Friday to a charge that he earmarked state money to benefit a businessman. Mass, 55, entered the plea in federal court in Muskogee to mail fraud conspiracy.

Mass admitted that he received payments from the unnamed businessman in return for money he sent the businessman's way.

The businessman has been identified in other court documents as Steve Phipps, who owns a dog food plant and a gambling machine company, both in McAlester.

The maximum penalty for the conspiracy to commit mail fraud charge is 5 years in prison and a $250,000 fine, however Mass could face more time than that, according to the financial loss calculated by prosecutors.

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Posted at 6:46 AM |  
Thursday, April 12, 2007 

Stipe's Personal Photographer Called By Grand Jury

MUSKOGEE, Okla. (AP) The personal photographer of former state Senator Gene Stipe says he's been called to testify before a federal grand jury.

Allen Cherry of McAlester says the subpoena also tells him to bring every photo he's taken of Stipe during the past five years. Cherry says he'll be taking about 150 photos with him to the federal courthouse in Muskogee.

The grand jury initially looked into a McAlester dog food plant built on land owned by Stipe. The investigation now includes allegations of kickbacks to three former lawmakers and possible illegal campaign contributions.

Stipe resigned from the state Senate in 2003 and pleaded guilty to a straw donor scheme involving the 1998 congressional campaign of Walt Roberts.


RELATED:

Political observers are scratching their heads. Why would a man who was given a great deal after being convicted of paying straw donors, turn around and allegedly commit the same crime again? This 1998 interview by the The NewsHour with Jim Lehrer, regarding President Clinton's affair with Monica Lewsinsky, may give us insight into Stipes' thinking.

GENE STIPE, Oklahoma State Senator: There's always a temptation to jump on somebody on somebody that's down.

KWAME HOLMAN: Sitting in the office of his successful law practice in McAllister, Oklahoma, Democrat Gene Stipe reflected on the rough and tumble world of politics, of which he's uniquely qualified to do. Stipe, an Oklahoma state senator, has served 50 years in the legislature, longer than any other state legislator in America. Considered one of the last of the old political deal makers, Stipe is also as much a legend in Oklahoma as Carl Albert, himself. When we asked him about President Clinton's trouble, Stipe blamed it on the tabloid-minded media.

GENE STIPE: It's no different than it's always been, except that the exploitation of the media of problems that used to be ignored because they were private, that no longer exists. No one has any privacy.

KWAME HOLMAN: But Stipe said President Clinton shouldn't be counted out yet.

GENE STIPE: The first year I was elected I rode the train with Harry Truman-if you thought of the national press, he didn't have a chance-we were all wasting our time riding around with him because he had no future-but he won the presidency and became one of the greatest presidents in a long time in my opinion. I still think there's hope for Bill Clinton.

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Posted at 3:10 AM |  
Wednesday, April 11, 2007 

EXCLUSIVE: Stolen Campaign Trailer Mystery Solved?

Sources close to the Tecumseh police investigation, tell OKPNS that the unsolved mystery of who swiped former auditor candidate Gary Jones'campaign trailer may be solved soon.

Once the arrest(s) are made, many will owe Jones an apology, including the current auditor Jeff McMahan, who accused Jones of staging the disappearance. McMahan's campaign vehemently denied any involvement in the disappearance.

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Posted at 12:10 PM |  
Saturday, April 07, 2007 

OK Press: Day Late, Dollar Short

New media lesson of the day

The Oklahoma Political News Service posted yesterday at 1:00 in the afternoon that Drew Edmondson's campaign had given an illegal contribution to Jeff McMahan. We actually had the tip in our inbox at 8:38, but due to other pressing commitments, we couldn't post it till early afternoon. If Simian sycophants and the mainstream OK press want to declare this morning that Rep. Mike Reynolds discovered the discrepancy, Fine. Our readers know where they read it first. (By the way, thanks for reading Representative!) It only illustrates another example of the lazy press in Oklahoma and the "pseudo consultants" who really don't understand the power and emergence of the blogosphere and the "new media."

Blogs will always be more timely and scoop the old school press simply because of the immediacy of the internet. While the old school media have a staff of reporters, blogs have legions of citizen reporters, tipsters, and insiders who have access to vast amounts of information a beat reporter will never have. Sorry to have to break news to you that you probably already know old school press, but your industry is dying, and unless you become more "progressive" (a word we hate but is applicable here) you will go the way of the Dodo bird and the Ford Edsel. Blogs ARE your competition but don't necessarily have to be your enemy; they can and actually do compliment your efforts.

You now see all around the country, major newspapers embracing the blogosphere. In the neighboring state of Missouri, the newspapers in St. Louis, Kansas City, Springfield and Columbia, each have political blogs and a reporter assigned to update that blog. They frequently link to posts by popular local and statewide bloggers and have no problem giving a "hat tip" to a blogger who breaks a story before they do. They've learned you can either try to beat the blogs (impossible) or join them. Unfortunately as incestuous as the relationship is between the press and Democratic politicians in Oklahoma, don't expect much change anytime soon.

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Posted at 8:23 AM |  
Friday, April 06, 2007 

Birds of a Feather...

EXCLUSIVE: Edmondson campaign illegally gives to Jeff McMahan (Go figure???)

One would think that the chief law enforcement official for the state of Oklahoma would know that it is illegal for a campaign committee to contribute to another candidate. Edmondson's campaign gave the embattled and ethically challenged state auditor $500 back in '05. Was this a simple oversight, or another example of the sheer audacity and arrogance of Edmondson?

Edmondson and his cronies probably assumed they didn't have to worry much about the OK press, especially when you have the Tulsa World publisher giving you $2,000. Don't expect the OK lapdogs to cover this story or follow up on it. The Oklahoma Political News Service will continue to investigate.

Related: Edmondson Says He Plans to Keep $1,000 Contribution From Stipe

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Posted at 1:04 PM |  
Thursday, March 29, 2007 

Is Time (Finally) Running Out For Jeff McMahan?

State auditor took trips with target of probe

OKLAHOMA CITY (AP) State Auditor and Inspector Jeff McMahan says he took three trips in recent years with the owner of an abstract company who's now being investigated by a federal grand jury.

Two of those trips he took with Steve Phipps were paid for by Phipps.

McMahan's office regulates the abstract industry and state Ethics Commission officials say McMahan isn't allowed to take anything of value from a person or entity he regulates.

McMahan spokeswoman Terri Watkins says Phipps paid for a fishing trip to Lake Texoma for McMahan and former Auditor Clifton Scott. She says he also paid for a trip to Biloxi, Mississippi, where McMahan held an educational course for Phipps' abstractors.

The two also traveled to New Orleans but Watkins says McMahan paid for his expenses.

Phipps and former state Senator Gene Stipe are under investigation by a grand jury in Muskogee which is looking into several abstract companies the men co-own and possible illegal campaign contributions.

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Posted at 10:15 AM |  
Tuesday, March 27, 2007 

State Audit Shows Widening Investigation

OKLAHOMA CITY (AP) An investigative audit is under way into an agency whose executive director is cited in F-B-I affidavits for allegedly profiting off state funds that were steered to economic development entities in southeastern Oklahoma.

First Assistant Attorney General Tom Gruber disclosed in a March 12th letter approval of the request for an investigative audit of Little Dixie Community Action Agency by the office of Auditor and Inspector Jeff McMahan.

The disclosure comes as the state's multicounty grand jury was set to begin hearing testimony on Wednesday.

Dixie Community Action Agency was founded in 1968 and has been run the past two years by Randall Erwin, one of three former legislators implicated in a federal probe of alleged kickbacks linked to "special project" money they secured as House members for projects.

Erwin has denied any wrongdoing and says 68-hundred dollars in cash he received from a business partner of ex-Senantor Gene Stipe wasn't a kickback as alleged in the F-B-I affidavit.

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Posted at 9:35 AM |  
Monday, March 19, 2007 

The Ties That Bind

State Auditor & Inspector Jeff McMahan hypnotized at a Steve Phipps Christmas party.




From The McCarville Report Online:

Jeff McMahan's claims that he knows Steve Phipps only casually are wilting under scrutiny. Here are the public facts at this time: 1 - Phipps' son sang the jingle McMahan used in his 2002 campaign; 2 - McMahan was a guest of honor at a Phipps' Christmas party where he was hypnotized as part of the entertainment; 3 - Gene Stipe at one point described Phipps as McMahan's campaign manager; 4 - Phipps and Stipe were described as McMahan's "money machine" in the 2002 campaign; 5 - Phipps was an active fundraiser for McMahan in 2002 and, some claim, early in the 2006 campaign as well; 6 - Democratic consultant Pat Hall, McMahan's 2002 primary campaign operative, was listed as a paid consultant for Phipps' Rural Development Foundation according to the latest FBI affidavit filed in the Stipe-Phipps investigation. Read more...

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Posted at 6:30 AM |  
 

If You Lie With Dogs, You're Going to Get Fleas - The Democratic Gene Stipe Dilemma

From Bounded Rationality:


It's not like the Republicans, at least on the national level, have clean hands on campaign fund shenanigans. But in Oklahoma, the Democrats have the corner on the notoriously corrupt market. Case in point: Gene Stipe. Apparently he likes to set up all his most powerful colleagues with illegal campaign contributions, in such a way that everyone can say they didn't know about the contributions. Pretty slick. The candidates can use the money during the campaign, and then just give it away to charity after the campaign.

This is easy easy. Have the guy that's already in big trouble do all the dirty work. That way, the candidate can quickly distance themselves from the malfeasor.

Somehow, if a candidate gives the illegal money to charity, and say they didn't know about the contributions, that absolves them of any responsibility. That's weak logic.

Here is an opinion from the Techumseh Countywide News and Shawnee Sun Online News


The Democrats who are getting dragged through at least a little mud as a result of the latest contribution talk are in order of descending rank: Gov. Brad Henry of Shawnee, U.S. Rep. Dan Boren who used to be from Seminole, Atty. Gen. Drew Edmondson of Muskogee and State Auditor and Inspector Jeff McMahan of Tecumseh. Three of the four, you may notice, are either hometown boys or the next thing to it. Read more...

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Posted at 6:09 AM |  
Thursday, March 15, 2007 

Ex-lawmaker At Site As Grand Jury Meets

By SUSAN HYLTON
World Staff Writer

MUSKOGEE -- Former state Rep. Mike Mass of Hartshorne was at the federal courthouse in Muskogee the same day a grand jury was in session Wednesday, but he said he was not there to testify.

Mass, who is embroiled in an FBI investigation involving former longtime state Sen. Gene Stipe, visited the local office of the Oklahoma attorney general two days after he was subpoenaed to testify in a civil trial involving Stipe and Stipe's former business partner, Steve Phipps.

The investigation concerns an alleged straw donor scheme in which people who contributed to several Democratic campaigns -- including that of U.S. Rep Dan Boren -- were reimbursed by companies controlled by Stipe and Phipps. Boren has claimed no knowledge of the scheme. Read more...

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Posted at 12:40 PM |  
Wednesday, March 14, 2007 

Jones Calls for Immediate Reforms in Auditor's Office

Gary Jones, CPA and two time opponent of State Auditor Jeff McMahan called on the legislature and the Governor to implement immediate reforms in the Oklahoma State Auditor's office

Jones said these reforms are necessary to help prevent scandals like the current one involving straw donors and the funneling of state funds to Gene Stipe and his partner Steve Phipps.


(1)Remove the abstract division from the authority of the state auditor's office.

"The auditor should not be regulating they should be auditing," said Jones. "Since the law was changed giving the state auditor control over abstractors they have become the primary funding source for campaign contributions to their hand picked auditor candidate. This would also stop the practice of approving or disapproving abstract permits in exchange for campaign contributions."


(2)Make state auditor employees merit employees

Jones believes this would free them from pressure to contribute and campaign in order to keep their jobs. He also believes this would also allow employees of the office to assist in any investigations that might be forthcoming now or in the future.

Jones said he proposed these changes during his campaign.

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Posted at 2:40 PM |  
 

OKPNS FLASHBACK: Jeff McMahan's "Other" Scandal



EXCLUSIVE: Tape Reveals Former A&I Employee Fired In Retaliation


Taped Jeff McMahan accuses fired employee of supporting opponent in 2002

The Oklahoma Political News Service has obtained a recording between former A&I employee Dana Webb and State Auditor & Inspector Jeff McMahan. Webb was dismissed from her job as Tulsa manger of the A&I office soon after the 2002 election. McMahan is heard on this eight minute recording reassuring Webb that her work ethic was not in question for her dismissal. He goes on to tell Webb that he was "trashed in Tulsa" (the election result) and that he felt Webb had "supported Jones." McMahan also assured Webb, "We're going to find you a job".

The McCarville Report Online is doing an excellent series on this allegation and another allegation swirling around State Auditor and Inspector Jeff McMahan. The allegation concerns top A&I employees who say they guaranteed a McMahan Campaign Loan in October 2002.

"Two former top employees in the state auditor & inspector's office have told The McCarville Report Online they each signed $2,000 promissory notes [from] a Shawnee bank in October 2002 to secure a last-minute $20,000 campaign loan for Jeff McMahan, then locked in a close election battle with Republican Gary Jones."

McMahan has repeatedly said that he does not compel his employees to contribute to his campaign or compel them to work for his campaign in their free time. OKPNS will continue to investigate.

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Posted at 2:00 PM |  
Tuesday, March 13, 2007 

McMahan Fires Abstract Division Director

In a one-paragraph letter, McMahan informed Tim Arbaugh that as of 5 p.m., ``your services with the state auditor and inspector will no longer be required and your employment with this office will terminate. You will need to turn in keys immediately.''

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Posted at 5:34 PM |  
 

McMahan Doesn't Have Money To Refund


From TMRO:

State Auditor & Inspector Jeff McMahan apparently couldn't refund almost $40,000 in questionable campaign contributions even if he wanted to, examination of his December 31st campaign finance report indicates.

McMahan, under fire as part of a Federal Bureau of Investigation probe into the alleged illegal campaign donation scheme of former Senator Gene Stipe and his abstract company partner, Steve Phipps, received the sum from those identified as straw donors to other campaigns. The FBI alleges the illegal donations were orchestrated by Stipe and Phipps. Read more...

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Posted at 1:36 PM |  
Monday, March 12, 2007 

"Sleepy" Daxon Calls for McMahan's Resignation

We guess now is better than never for Chairman Daxon to call for State Auditor and Inspector Jeff McMahan's resignation. It's not like these allegations and the "proof" hasn't been floating around for awhile.

Sources close to Chairman Daxon tell OKPNS that Daxon advised Jones last fall to wait bringing the story out because it would be so damaging that the Democrats would ask McMahan to withdraw from the ballot and substitute another candidate. For the record, Oklahoma law would not have allowed Democrats to substitute another candidate.


Our sources also told us that Daxon recommended to Jones that he should direct his focus on McMahan no longer having a certificate of compliance for his audit reports.

Mike McCarville did an exhaustive examination of the shenanigans before the election. Oh we forgot, Chairman Daxon was too busy coming up with the brilliant plan to use
door hangers during last fall's campaign.

Chairman Daxon, here's a way to redeem yourself. How about calling for an independent investigation into the attorney general's
Poultrygate scandal?

From the McCarville Report Online:

Republican Party Chairman Tom Daxon called today for the resignation of Auditor & Inspector Jeff McMahan after a federal investigation alleged he received illegal campaign donations. Appearing on Oklahoma City radio station KTOK's "First News With Reid Mullins" this morning, Daxon said there is the "appearance...and fact" that wrong-doing occurred in the financing of McMahan's 2002 and 2006 campaigns. He said that confidence in the auditor and inspector's office is at stake and McMahan should resign. For KTOK's continuing coverage, tune to AM-1000. Read more...

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Posted at 10:25 AM |  
Friday, March 09, 2007 

FBI Says Stipe Illegally Funded Congressman Boren's 2004 Campaign

We admit we're not big fans of today's reality shows. To us, they poignantly illustrate the void of creativity currently in the entertainment industry. But there is one show that has our attention every week. That show is the NBC Dateline series "To Catch a Predator".

It has our interest, not because of the luridness of grown men having sexually charged online chats with underage girls and sometime underage boys. Or the sick perverts often driving several hours and hundreds of miles to the teenage decoy's home to engage in their disgusting fantasies.

No. It is the fascination that with all the publicity the show has garnered over the months, there are still people who will risk everything; reputation, marriages, careers, and freedom to still attempt to break the law. There once was an episode of a pervert being busted twice in the same show! Our fascination is similar to the almost magnetic attraction human beings have with watching fist fights or traffic accidents. This brings us to former state Senator Gene Stipe

The FBI says Stipe continued to illegally fund political campaigns EVEN AFTER HE WAS CONVICTED OF DOING THE SAME THING!

The Oklahoman reports today that an unsealed affidavit says Stipe gave over $34,000 dollars to Congressman Dan Boren's 2004 primary campaign by reimbursing friends and associates for their contributions. Boren says he wasn't aware of the scheme.

The March 2004 contributions were made two months after Stipe was sentenced to house arrest and fined more than $735,000 dollars for a similar scheme in a 1998 congressional campaign.

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Posted at 11:00 AM |  
Wednesday, October 11, 2006 

Feds Investigating McMahan, Erwin, & Mass?

The McCarville Report Online:

Does Federal Probe Of Rural Development Foundation Extend To McMahan, Erwin, Mass?

SIXTH IN A SERIES ~ A federal investigation into the controversial Rural Development Foundation (RDF) in Antlers may now include questions about an alleged meeting that included RDF consultant Steve Phipps, State Auditor & Inspector Jeff McMahan, State Rep. Mike Mass and former State Rep. Randall Erwin, it has been learned.

The questions could be important because the man behind the foundation, Kiowa resident Phipps, was a partner with State Senator Gene Stipe in nine abstract companies, and McMahan licenses and regulates abstractors.

In a possible related article:
OKLAHOMA CITY (AP) State Senator Kenneth Corn is calling for more prison space.

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Posted at 11:45 AM |  
Thursday, October 05, 2006 

Who Loves Jeff McMahan? 220 Abstractors Have Showered Him With $149,000 Since 2002

The McCarville Report Online:

FOURTH IN A SERIES ~ State Auditor & Inspector Jeff McMahan, who has life-and-death control over the certificates of authority for abstract companies to operate, has received about $149,000 in donations from 220 abstractors and abstract company employees for his 2002 and 2006 campaigns.

Abstractor support of McMahan began in his first campaign for the office in 2002, when 132 abstractors and employees in their offices donated $81,000 at critical times in McMahan's campaign. A large part of the total came from then-abstract company partners Gene Stipe and Steve Phipps, who owned nine abstract entities doing business mostly in southeastern Oklahoma, and their associates and employees. Stipe, the Democrat former state senator forced to resign and surrender his law license after conviction on federal felony counts tied to illegal congressional campaign contributions, perjury, conspiracy and trying to obstruct a Federal Election Commission investigation, formed the companies with Phipps, of Kiowa. The two split and at last report were faced off in a legal battle instituted by Stipe last year.
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Posted at 9:30 AM |  


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