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.

Labels: Gene Stipe, Jeff McMahan, Randall Erwin

Posted at 3/27/2007 11:35:00 AM