Campaign Gifts Match Payments

More than a dozen donors made suspect political contributions to Henry, McMahan.

The Oklahoman found these contributions to the 2002 campaigns of state Auditor and Inspector Jeff McMahan, Gov. Brad Henry and congressional candidate Mike Mass from people who also received payments around the same time from Phipps Enterprises or other companies owned by Gene Stipe and Steve Phipps:

Jeanette Lambert received $3,300, March 28, 2002; donated $3,000, March 26, 2002

Steve Phipps received $6,000 April 1, 2002; donated $2,000, March 12, 2002 and $3,000, March 15, 2002

Ramona Forrester received $1,800, April 15, 2002; donated $2,600, April 15, 2002

More than a dozen campaign donors to state Auditor and Inspector Jeff McMahan or Gov. Brad Henry contributed about the same time they were paid similar amounts by companies now under federal investigation, in apparent violation of the law, The Oklahoman has learned.

Also, five people donated to former state Rep. Mike Mass' unsuccessful 2002 congressional campaign about the same time they were paid, records show.

The donors include more people than those the FBI already has alleged were illegal "straw donors” to another campaign.

The FBI is alleging former state Sen. Gene Stipe and business partner Steve Phipps used straw donors to give illegal, excessive donations to a number of political candidates. The FBI so far has only identified donations to U.S. Rep. Dan Boren's 2004 campaign as part of the alleged scheme.

A straw donor is someone who donates with someone else's money. Boren, McMahan and Henry have denied they knew of any illegal schemes to fund their campaigns. Mass could not be reached for comment.

"I would not knowingly take an illegal contribution — ever,” McMahan said Friday.

"My wife and I have sat and thought about it,” McMahan said. "Why, if someone did do this, what could they get in return? Because I've given them nothing. I've given no one any favors in return for contributing to our campaign.”

The FBI alleges Stipe and Phipps used a company called Phipps Enterprises to reimburse people who gave to Boren's campaign.

Internal financial records obtained by The Oklahoman show 14 donors gave $38,650 to McMahan in 2002 on the same day, a few days before or a few days after they were paid. Many of the donors are employees of companies owned by Stipe and Phipps.

For instance, Karen "Suzie” Carper, an employee of National Pet Products in McAlester, gave McMahan's campaign $3,000 on Oct. 15, 2002. Phipps Enterprises paid her $3,000 three days later. Carper declined comment.

The internal records show Henry received four similar donations to his 2002 campaign totaling $17,500. For example, Carol Coffman, who worked at one of Stipe's and Phipps' abstract companies, received $2,800 on Jan. 14, 2003, the same day she contributed $2,500 to Henry.

The Oklahoman previously reported many of the 21 alleged straw donors to Boren also are listed as donors to McMahan, Henry and Mass.

The FBI has not said yet whether it believes those donations to McMahan, Henry and Mass are illegal, too. But the internal records obtained by The Oklahoman confirm many of those donations are at least questionable. And the records identify others who may have been used in straw donor schemes.

Donors signed disclosure forms, McMahan says Henry has written checks to charities totaling $42,500 for money his campaigns or inauguration committee received from Gene Stipe, Phipps Enterprises or nine people the FBI has identified as straw donors to Boren's campaign, a spokesman said Friday.

"Even the perception that a problem might exist is unacceptable to me,” Henry, a Democrat, said previously.

McMahan received $35,863.89 in cash and in-kind contributions from 15 people the FBI accused of being straw donors to Boren, his 2002 campaign records show.

McMahan, a Democrat, has said neither his 2002 campaign nor his 2006 campaign have any money left to donate if their contributions are found to be illegal. He has stressed that contributors signed statements that they were using their own funds to make donations.

"We made sure we got contributor statements from everyone who contributed,” he said Friday. "I assumed they were legal contributions. There were contributor statements signed, and that's what I took them for. ... My opponent was out there saying he was going to eliminate the abstract industry. It was after that that we started receiving the abstract donations.”

McMahan's Republican opponent in 2002 and 2006, Gary Jones, said the findings confirm what he's been alleging for two years.

"Gene Stipe in 1998 attempted to buy him a congressman and was found guilty and was removed from office because of it. In 2002, he was successful in buying himself a state auditor,” Jones said.

He claimed McMahan subsequently "provided the cover” for Stipe and Phipps to use state taxpayer money for their own benefit.

One donor, Francis Stipe, who is Gene Stipe's brother, said, "I don't recall what I did, but I have no comment.”

Francis Stipe's wife said the Stipes have done nothing wrong. She referred to newspaper stories about the investigation as "harassment.”

Several attempts to reach other donors identified for this story were unsuccessful. Some have unlisted home phone numbers, others didn't return phone messages and some who are abstract company workers were said to be out of town. A woman who answered at the home of donor Joycelyn Maye twice hung up on a reporter without identifying herself.

The questionable donations to Henry's campaign came after Gene Stipe was known to be under investigation for a straw donor scheme involving the 1998 congressional campaign of Walt Roberts.

That investigation led to Stipe's resignation from the Senate in 2003 after a 53-year legislative career. He eventually pleaded guilty to financing $245,000 in illegal contributions to Roberts' unsuccessful campaign.

A judge fined Stipe $735,567 and sentenced him to six months of house arrest and five years of probation in that case.

Federal probation officials are preparing a violation report for Stipe concerning some of the new FBI allegations. A judge could revoke Stipe's probation and send him to prison.

Stipe's brother, Francis, and his longtime secretary, Charlene Spears, also admitted roles in the Walt Roberts straw donor scheme. Both also received large payments from Phipps Enterprises in October 2002 within days of similar contributions to McMahan's campaign.

FBI agents identified the straw donors to Boren's campaign earlier this month in an affidavit used to obtain a federal search warrant for the offices of Gene Stipe and his accountant.

Contributions correspond with property sale Gene Stipe, Francis Stipe and two other people each made large contributions to McMahan after receiving payments from Phipps Enterprises on Oct. 22, 2002. That was the same day Gene Stipe sold property he owned in McAlester to the McAlester Foundation for use as a dog food plant owned by Phipps Enterprises.

The McAlester Foundation paid $190,000 for the property. A year earlier, the county assessor listed its market value at $75,665.

Money used to buy the property came in part from $419,000 in state money and $250,000 in McAlester city sales tax proceeds earmarked for the McAlester Foundation to benefit the dog food plant.

Francis Stipe admitted in a recent court hearing that he was one of three McAlester Foundation board members who signed the check for the property closing. He received a $3,000 payment from Phipps Enterprises the day before giving $3,500 to McMahan's campaign.

Gene Stipe received a $5,000 payment from Phipps Enterprises on Oct. 22, 2002, the same day he gave $5,000 to McMahan.

Others who received checks that day possibly in return for contributions to McMahan were Roy Hatridge, a partner in the dog food plant, and Melia Rose, a board member of Rural Development Foundation. The FBI alleges Phipps and Stipe created that foundation to funnel taxpayer money into their businesses.

The $3,500 check from Phipps Enterprises to Francis Stipe was classified as "rent,” while Rose's was classified as "accounting fees” and Hatridge's as a commission payment. Hatridge declined comment.

Stipe and Phipps now are embroiled in a lawsuit over their abstract companies. Stipe claims Phipps embezzled money and diverted much of it to his other companies without Stipe's knowledge.

Phipps' attorneys claim the lawsuit is an effort to disguise Stipe's role in possible criminal activity

For those don't know Gene Stipe.....he's one of the most slippery Okie crook politicians you've ever seen....But it looks like he may yet see his due.

Henry is as dumb as a box of rocks....so I'd love to see his butt in trouble.

Won't hold my breathe though.....

I wish I could turn a 10 to 12% profit on my investments in 30 days time!

2 posted on 03/25/2007 9:13:18 AM PDT by InABunkerUnderSF (Everything I need to know about Palestinian nationalism I learned on June 5, 1968.)

Sure me too...!! Ha!!

The problem with this story is it's been going on a long time...and it's a "can of worms".

Reminds me a lot of the Clinton's tangled webs they wove. The Sheeple can't follow it...and they lose interest.

3 posted on 03/25/2007 9:21:11 AM PDT by Osage Orange (Diplomacy is the art of saying 'Nice doggie' until you can find a rock. - Will Rodgers)

I'm sure no one is surprised that OKie Dems are on the take. The Democrat Party is a criminal enterprise in virtually every state.
I'd say ol' Billy Rose came out smelling like a rose, though, getting $4000 and giving $3500. Crooks just don't play by the rules.

The thing is.....everyone with any sense here in OK...knew Gene Stipe was crooked for 40-50 years. But nobody ever DID anything about it. NOBODY!!

5 posted on 03/25/2007 3:34:55 PM PDT by Osage Orange (Diplomacy is the art of saying 'Nice doggie' until you can find a rock. - Will Rodgers)

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