By Rep. Jason Murphey

A key figure in the ongoing federal trial for former State Senator Gene Stipe pled guilty this week to crimes related to the abuse of your taxpayer dollars. Because of the ongoing criminal case, past abuses of Oklahoma’s old guard politicians are becoming less and less of a secret.

I believe one of the key reasons for the exposure of these past abuses has been the dramatic shift in power in Oklahoma politics brought on by term limits. Those of us who are fighting to put an end to the abuses of the past face an increased likelihood of success, due in part to the fact that there are many new elected officials who have taken office in the past few years. Many of these individuals have not been corrupted by the political process. Unlike some of their predecessors, they are not career politicians. Oklahoma’s term limit law allows all representatives and senators to serve only twelve years in the Legislature. After that, they are under a lifetime ban from holding office in the Legislature again. I believe this new generation of representatives and senators is fulfilling one of the important visions of our nation’s founding fathers - the vision in which an average citizen dedicates a few years of his or her life to representing the people as a citizen-statesman. At the end of the term of office, the legislator returns to the normal world to live under the very laws he or she helped to create. This helps to ensure that legislators will be more representative of the people instead of becoming a class of the political elite.

As a result of the term limits law, the Legislature is very different from just a few years ago. Gone are many of the old guard power bosses who tightly maintained the status quo. These politicians could have stayed in office almost indefinitely and they held powerful committee chairmanships where they would bottle up reform-minded legislation. They have been replaced by a group of energetic professionals, many of whom wish to enact pro-growth policies (i.e. cutting taxes) to change Oklahoma for the better. And, should some succumb to the temptation to become part of the status quo, they will inevitably be replaced because of term limits. Read more...

Labels: Gene Stipe, OK Legislator's Blog, Rep. Jason Murphy, Term limits

Posted at 4/22/2008 11:37:00 AM |

Labels: Gene Stipe, Jeff McMahan, Lori McMahan, Steve Phipps

Posted at 1/20/2008 10:18:00 AM |

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

Labels: AG, Drew Edmondson, Gene Stipe, Jeff McMahan

Posted at 8/27/2007 03:13:00 PM |

By James Beaty Senior Editor Immunity for straw donors who made illegal campaign contributions in 2004? That’s one of things Steve Phipps testified to during a hearing at the Pittsburg County Courthouse on Thursday. Phipps was called as a witness in connection with a motion filed by his wife, Brenda Phipps, to dissolve Phipps Enterprises Inc. The company was owned by former District 7 state Sen. Gene Stipe and by Steve and Brenda Phipps, until last March, according to testimony from Brenda Phipps. She said her husband, Steve Phipps, signed his interest over to her in March as part of “estate planning” as he prepared to plead guilty to a charge in federal court. Federal agents have served search warrants on property owned by Stipe and Steve Phipps as part of an investigation into corruption and related criminal activity in Eastern Oklahoma. Read more...

Labels: Gene Stipe, Steve Phipps

Posted at 8/10/2007 01:45:00 PM |

After the trials, maybe they can be cellmates or have adjoining cells! By James Beaty Lawyers for former District 7 state Sen. Gene Stipe, of McAlester, say he should be allowed to continue to associate with Steve Covington — a man referred to as the convicted felon’s “best friend.” They also want claims that Stipe violated his probation by associating with Covington tossed out of court. Stipe’s attorneys filed papers with the requests at the Eastern District of Oklahoma U.S. Courthouse in Muskogee, where Stipe faces an Aug. 28 court date. Covington not only worked as Stipe’s personal pilot for 20 years, but he also managed some of Stipe’s properties and served as a caregiver for Stipe and for Stipe’s first wife, Agnes, according to Stipe’s lawyers. Read more...

Labels: Gene Stipe, Steve Covington

Posted at 8/08/2007 01:27:00 PM |

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"

Labels: Gene Stipe, Jeff McMahan, Larry Witt, Sen. Mike Morgan, Steve Phipps

Posted at 7/29/2007 09:10:00 AM |

From the McAlester News-Capital: By James Beaty Senior Editor A court-appointed receiver in the lawsuit between former District 7 state Sen. Gene Stipe and his estranged business partner, Steve Phipps, has demanded that National Pet Products pay $310,000 in delinquent accounts to Phipps Enterprises, Inc. “The deadline for a response has passed and lawsuits are being prepared to recover such substantial funds,” receiver Kraettli Q. Epperson said in documents filed at the Pittsburg County Courthouse. National Pet Products is the dog food plant on the north side of McAlester built on property sold by Stipe, according to court documents and other records. In his report, Epperson said Phipps Enterprises Inc. also owes a substantial amount of taxes. Phipps Enterprises, Inc., is identified in court documents as the company owned by Stipe, of McAlester, and Phipps, who is from the Kiowa area. Read more...

Labels: Frances Stipe, Gene Stipe, Steve Phipps

Posted at 7/26/2007 07:04:00 PM |

Labels: AG, Brad Henry, Gary Jones, Gene Stipe, Jeff McMahan, OKGOP, Sen. Mike Morgan, Steve Phipps

Posted at 6/25/2007 01:50:00 PM |

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...

Labels: Gene Phillips, Gene Stipe, Jeff McMahan, Steve Covington

Posted at 6/15/2007 09:36:00 AM |

Well one thing we can say about new/old OKGOP Chairman Gary Jones, the weekly email has gotten a hell of a lot better. We actually look forward to receiving it now. Before, it was about as entertaining as watchng paint dry! The commentary is more insightful and this week, Jones even adds a little humor. Gene "Bosshog" Stipe Legacy Keeps Growing The federal investigation into Gene Stipe and his alleged corruption in SE Oklahoma just keeps growing, with Senate Co-President Pro-Tem Mike Morgan now coming under fire. A Sunday story by the Oklahoman shows some Oklahoma colleges used non-traditional private financing to build housing projects, and students at several Oklahoma colleges are paying higher housing costs because of it. Morgan, who's a Stillwater attorney, was paid more than $230,000 as the acting attorney on some of the projects...all in his Senate district. Reporters Tony Thornton and Randy Ellis also report that huge sums were paid to a title company co-owned by---you guessed it---former State Senator Gene Stipe. The shady funding method, called off-balance-sheet or no-recourse financing, results in higher interest rates and higher fees paid to underwriters, banks and various attorneys, because the schools bypass competitive-bidding to streamline construction projects. The Oklahoman confirmed that the schools' financing method is drawing FBI scrutiny. We've made the point here before that the arrogance of power, the corruption that follows and the unquenchable thirst to spend taxpayer dollars has been the trademark of Oklahoma Democrats during their time in the majority, and it's the mark Stipe has left on the Democratic Party. With Mike Morgan term-limited, it is uncertain if he will simply slip off into the shadows or if these charges will be pursued further. What is more clear however, is that this cloud of corruption may damage Morgan's popularity in his own Senate district and could hurt the Democratic nominee who will look to replace Morgan next November.

Labels: Gary Jones, Gene Stipe, OKGOP, Sen. Mike Morgan

Posted at 6/04/2007 01:13:00 PM |

This letter was recently sent to the editor of Newsok.com I was disappointed by the design of Oklahoma's commemorative quarter that features the state bird and wildflower. My submission was much more appropriate. It contained the images of Gene Stipe, David Walters and Judge Donald D. Thompson with the caption: "Celebrating 100 Years of Corruption in All Three Branches of State Government. Instead of one lousy bird on the back of the coin, we could have had three jailbirds.

Labels: Ethics Reforms, Gene Stipe

Posted at 5/15/2007 12:37:00 PM |

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...

Labels: Brent Rinehart, Gene Stipe, Jeff McMahan

Posted at 5/01/2007 12:38:00 PM |

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.

Labels: Gene Stipe, Jeff McMahan, Mike Mass, Steve Phipps

Posted at 4/13/2007 08:46:00 AM |

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.

Labels: Frances Stipe, Gene Stipe, Jeff McMahan, Mike Mass, Steve Phipps

Posted at 4/12/2007 05:10:00 AM |

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.

Labels: Gene Stipe, Jeff McMahan, Steve Phipps

Posted at 3/29/2007 12:15:00 PM |

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 |

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...

Labels: Cong. Dan Boren, Gene Stipe, Jeff McMahan, Mike Mass, Steve Phipps

Posted at 3/15/2007 02:40:00 PM |

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.''

Labels: Gene Stipe, Jeff McMahan

Posted at 3/13/2007 07:34:00 PM |

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...

Labels: Gene Stipe, Jeff McMahan

Posted at 3/13/2007 03:36:00 PM |

From Tulsa Today: (excerpt) Gary Jones, a Republican who narrowly lost two elections to Democrat State Auditor Jeff McMahan in 2002 and 2006, told Tulsa Today that it was the trail of campaign contributions from Gene Stipe, Steve Phipps and their employees to McMahan’s 2002 campaign that led to the discovery of the scheme to funnel millions in tax dollars to Stipe, Phipps, and former Democrat State Reps. Mass, Erwin and Hefner. State Auditor & Inspector Jeff McMahanAfter losing the 2002 election, Jones said he had suspected a Stipe-McMahan connection since 2003, after reading the list of straw donors to Walt Robert’s 1998 campaign. “What really threw up a red flag was the article in the Oklahoman in 2004 about the now-famous National Pet Products, the dog food factory in McAlester. The article listed Gene Stipe, Stipe’s brother Francis, his partner Steve Phipps, along with Karen Carper and Roy Hattridge. What else did these people have in common? They were all major contributors to Jeff McMahan’s campaign,” Jones told Tulsa Today. While Jones was serving as Chairman of the Oklahoma Republican Party, he said people sent him information claiming meetings were being held in the State Auditor’s basement conference room involving Reps. Mike Mass and Randall Erwin, and Stipe’s partner, Steve Phipps. “Supposedly, the topic of discussion was how they could all benefit from the expanded gambling laws, and one person told me that Mass was heard bragging that if they got this through, they would never have to work another day in their lives,” Jones said. “The Internet is an amazing tool,” Jones said. “It allows you to do research and find things in minutes that might take years to do manually – or go undiscovered otherwise. I did a Google search of Steve Phipps, and the first thing that popped up was a press release from the Oklahoma House of Representatives about a newly formed organization called the Rural Development Foundation being awarded a water permit for 25 billion gallons of water from Lake Eufaula – and Steve Phipps was listed as their consultant. Searching further on the Oklahoma Secretary of State’s Web site for Rural Development, it revealed that RDF office was located in Antler’s – at the same address as an abstract company owned by Gene Stipe and Steve Phipps.” Jones shared that information with an Oklahoma state representative, whose further research found that RDF had received a $350,000 line item appropriation in the Department of Commerce’s funding bill. He called back later to say that they received another $350,000 as a line item in the appropriation bill for the Department of Agriculture. Jones said his continued Internet searches led him to a Web site called http://www.followthemoney.org/, where he discovered that the board members of RDF had also contributed to McMahan’s campaign. When Jones entered their names into a Google search, it brought up the Oklahoma State auditor’s Web site and listing employees of all the abstract companies in Oklahoma by county. McMahan’s office regulates all Oklahoma abstract companies. Stipe and Phipps’s biggest venture together are numerous jointly owned abstract companies. This latest search by Tulsa Today shows that several board members of RDF were also employees of abstract companies owned by Stipe and Phipps, and that dozen of other Stipe and Phipps employees were also McMahan contributors. Read more... Click here to view contributions to McMahan from Stipe, Phipps, and employees.

Labels: Frances Stipe, Gary Jones, Gene Stipe, Karen Carper, Mike Mass, Randall Erwin, Roy Hattridge, Steve Phipps

Posted at 3/12/2007 10:15:00 AM |