Free furniture: In 2007, Carroll Fisher, former state insurance commissioner, started serving a 14-month prison term after he was caught depositing a $1,000 campaign contribution from his state campaign funds into his personal bank account when it was overdrawn in 2003. Fisher was reprimanded by the State Ethics Commission for soliciting office furniture from those he regulated. The governor said that Fisher could not keep more than $33,000 worth of furniture, artwork and kitchen equipment he had sought as "gifts to the state."
The Tulsa World said;
Carroll Fisher was then sentenced in 2009, in a bribery case, to six months in a private lock-down facility in Tulsa.
Oklahoma County District Judge Kenneth Watson spared Fisher, 69, from more time in state prison. Defense attorneys argued the former official already has been punished and humiliated enough.
"This is a man who has been very much humbled by what he’s experienced,” defense attorney Bob Wyatt said.
The prosecutor, Assistant Attorney General Joel-lyn McCormick, had asked that Fisher get seven more years in prison for his breach of the public trust.
The judge decided the punishment after Fisher pleaded no contest to accepting bribes. The bribery trial had been set to begin Feb. 23.
Fisher was ordered to report March 2, 2009 to the Riverside Intermediate Sanction Facility in Tulsa. He must pay for his stay. The judge said Fisher can participate there in a work-release program. Fisher will be on probation for four years and six months after his release and must complete 150 hours of community service. He also must pay $5,000 to the state Victims Compensation Fund.
The judge agreed Fisher’s future already had been ruined by his earlier felony conviction in a campaign-corruption case. After losing an appeal, Fisher spent about 14 months in prison in that case. The judge noted prison records show Fisher apparently suffered the embarrassment of his grandchildren seeing him imprisoned there.
After 50 years at the height of political power, Gene Stipe was taken down when term limits started bringing in Republicans to state government in sufficient volume to keep an eye on the "good ol' boys".
The Tulsa World said; Gene Stipe: The McAlester Democrat is served a five-year probationary sentence for federal campaign violations and perjury and is in trouble again. After having served more than 50 years in political office, Stipe allegedly continued to hatch political campaign schemes by reimbursing "straw donors" who funneled money to Democratic campaigns. In the long run, Stipe, 81, may not be remembered so much for his recent problems, at least in his old stomping grounds in southeastern Oklahoma's "Little Dixie," said Keith Gaddie, political science professor at the University of Oklahoma. At his height, Stipe "was such a colorful character," Gaddie said. Stipe fit the role of "the old-line, rural politician, the cigar-chomping country lawyer" who had a charismatic quality inside the courtroom, he said.
In the first decade of the new millennia, an old political machine crumbled under the weight of it's own corruption. The following is a summary of the Daily Oklahoman's reporting from the Muskogee Federal Courthouse.
Read the full coverage at the Daily Oklahoman.
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Occasionally an elected official gets caught. But in this case the criminal comes forward on his own. Paul Anderson did just this, in 2002.
The Tulsa World said;In Payne County, District Attorney Paul Anderson shocked the legal profession in 2002 when he admitted embezzling $84,000 over five years. He pleaded guilty to three counts of embezzlement and was sentenced to two years in prison. He served less than nine months but made full restitution. Lt. Gov’s bodyguard quits amid allegations of affair
December 8, 1998 AP
Mrs. Fallin, a Republican who was elected to a second term last month, filed for divorce last week. At a hearing, Fallin’s attorney raised an allegation about the lieutenant governor having an affair with an unidentified bodyguard.
In a statement Monday, Public Safety Commissioner Bob Ricks said rumors surfaced in early September about ”alleged unprofessional conduct between a member of the executive security detail and the lieutenant governor.”
The statement said the trooper first denied the allegations, but was again questioned late last month and ”admitted to unprofessional conduct and was permitted to resign. That resignation was accepted last week. His admission did not indicate that sexual activity was involved.”
Lana Tyree, Mrs. Fallin’s attorney, later issued a statement saying the lieutenant governor would have no comment.
”Out of legitimate concern for the privacy and welfare of her minor children through the Christmas holidays, Lieutenant Governor Mary Fallin, having denied the allegations, will not respond to or debate these issues in the media and will make no further public comment,” the statement said. Mrs. Fallin, 43, and her husband have two children, ages 11 and 8.
In court, Mrs. Fallin had said the allegations of an affair with a bodyguard were a rumor started by her husband. At last week’s hearing, District Judge Jerry Bass prevented Fallin’s attorney from pursuing questions about an alleged affair.
In response to a question from his wife’s attorney, Mr. Fallin said he had hired a private investigator to follow her.
Another hearing in the divorce case is set for next Monday.
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Sex scandal roils Oklahoma politics:Official accused of having affair with trooperGov. Keating Accused of HypocrisyDecember 12, 1998 Kansas City Star (MO)
Lame Duck Appointee Attempt:
Since 1990, the Republicans controlled the commission when they held 2 of the 3 seats. When Commissioner JC Watts was elected to congress in November of 1994, the lame duck governor, David Walters; sought to give the Democrats control of the Commission by appointing former state attorney general Charles Nesbitt as a temporary successor to JC Watts. Gov. Elect, Frank Keating intended to name Ed Apple to the temporary post. The case ended up being argued before the Oklahoma Supreme Court. Oklahoma's governor is sworn in a week after the US Congress swears in their members to a new term. The Daily Oklahoman recapped the drama this way...A brief accompanying Nesbitt's petition claims Watts' commission seat "was vacant at the latest on Jan. 3, the date of commencement of the congressional term for which Commissioner Watts was elected," thus allowing Walters to appoint a replacement. Watts says he did not officially resign his commission seat until Jan. 9, after Keating became governor and gained the right to appoint Apple. When Gene Stipe's political machine imploded, several other elected officials also paid a price for their corruption. Jim Lane was one of them. The Tulsa World said; Ghost employee: Former state Sen. Jim E. Lane of McAlester was sentenced in 2003 to three years probation and two months home detention for his role in funneling illegal money into Walt Roberts' unsuccessful 1998 congressional campaign. Of the more than $200,000 in illegal money that ended up in the Roberts campaign, most was tied to Stipe, but Lane was directly tied to less than $70,000. Lane's sentence in the Roberts case came only six months after he was released from prison where he served seven months of a five-year sentence for defrauding the state as a "ghost employee."http://www.tulsaworld.com/archives/political-famous-then-infamous-of-past-years/article_9b276ed7-2b5a-567d-80fe-4de30fc37d6c.html
Then in 1990 a scandal emerged from the gubernatorial campaign of winner and Democrat David Walters. Walters won, but the campaign was accompanied by a barrage of press reports that he had raised and spent more money that any previous candidate. Investigations by the state attorney general and Oklahoma County district attorney led to charges of campaign violations. Walters finally pleaded guilty to misdemeanor charges. Critics attacked the outcome as letting him escape too easily from more serious charges. Still, the publicity probably moderated some of the worst excesses of campaign finance. And in this case reform had occurred with little federal intervention, in itself a significant gain. One of the more prominent politicians convicted in the last 25 years of the state's history was former Gov. David Walters. Walters pleaded guilty in 1993 to a misdemeanor charge of violating a state campaign law in a plea agreement that dismissed eight felony charges of conspiracy and perjury. The conviction also led to his decision not to run for governor again. Walters, a Democrat, became president of Walters Power International, a company that provides huge electricity-generating mobile plants sometimes located in remote regions. ![]() Tulsa Public Schools Claimed Poverty While Running A Loan Business With SurplusesRoughly a decade after Okscam came to light, a major scandal broke that grew out of the misuse of education bonds issued by school districts. A word about bonds is in order. Federal officials allowed local officials to issue education bonds to tide them over financially tight periods, as when property tax receipts for schools were late coming in. The bonds were never intended as a means for local education officials to make money, a distinction that was to become quite important as the bond scam unfolded.Bonds Without A Vote Of The ElectorateDuring the 1980s, a major bond underwriting company, Stifel, Nicolaus, and Co., was active in promoting the use of bonds to finance public projects. Stifel also engaged in promoting candidates for office via contributions to their campaigns. The Stifel bond company formed a political action committee (PAC) to channel political contributions to candidates, and also channeled contributions through company officers and lobbyists. By these means, they could contribute quite legitimately, just as other businesses did.Over time, their contributions went to large numbers of legislators, executive branch officials, and others in public life. The list of Oklahoma politicians who received Stifel contributions, via perfectly legitimate channels, added up to a "who's who" of people and organizations in public life. One wonders if those who failed to receive Stifel contributions felt that something was wrong with them. A major development in the use of education bonds occurred when the legislature in 1987 changed the law governing the issuance of bonds to allow school districts to issue such bonds without a vote of the people. Three of the key legislators on the committee that formulated the changed law were recipients of Stifel contributions via the channels described. Stifel worked closely with the State School Boards Association to pass word to school districts that they could issue the school bonds without a vote locally. Officials of the Association received large sums in fees. By 1990, some 270 school districts, plus some vo-tech schools and a few counties, were participating. Unfortunately, many of these participating school districts used the school bonds in the wrong way. They used inflated estimates of their education needs and then issued bonds to meet these needs. Since they overestimated needs, they had money from the bonds beyond that needed immediately. They used the extra funds to make deposits in banks, often in Japan, and then drew interest on the bonds in the banks. How The IRS Broke The SchemeAt this point the districts were using the bonds not just to meet needs, but also to make money on the interest collected. And they were to find out that, in doing so, they ended up in serious difficulties with the IRS and other federal officials. In 1991, The Daily Oklahoman launched a series of investigative reports on the school bond program. These reports traced the political influence of Stifel in initiating the bond program and in channeling extensive campaign contributions to large numbers of political figures in the state. The impact of these stories was devastating. School districts began dropping out of the program and participation fell drastically. Then federal authorities became interested, including the IRS, FBI and the SEC. Eventually, two of the state's largest urban school districts were informed that they had misused their education bonds and owed the IRS large sums. Stifel finally pulled out of the state entirely. In 1996, a onetime leading Stifel official, Bob Cochran, was convicted in federal court of misdeeds connected with the education bonds program, although a year later an appeals court reversed Cochran's conviction. Most noteworthy here is the initiative from within the state, since it was The Daily Oklahoman that led the way, not federal officials. It is true that federal law enforcement authorities did reinforce the work of the reporters. State law enforcement officials never did contribute much. All in all, this state newspaper deserves much credit for leading reform efforts from within.In 1991 investigative reporting by the state's leading newspaper, the Daily Oklahoman, averted a potentially major scandal based on the misuse of bonds for education purposes. That education bonds could be a hazard if not properly handled became apparent when the state's two largest school districts found themselves charged by the IRS with back taxes amounting in each case to several hundred thousand dollars. The metro districts had been using education bonds not as a legitimate supplement to school spending but as a means of making money via interest accrued on the bonds. Initially the education bond program was hugely popular, with many school districts large and small signing on. However, the investigative reports created skepticism and withdrawals. Had these districts not dropped out of the program, they could have been held liable by the IRS just as the metro districts had been. The investigative reporting by the Oklahoman disrupted the bond scam. Federal intervention, apart from the potential IRS threat, was minimal.
Read more: http://newsok.com/article/2445027
Harry Holloway, of the Oklahoma Historical Society There were several claims of fraud and shiftiness for years. But none could be proven. Oldtimers still say that the 1984 mayoral race was wrought with corruption by the many broken machines that led to long lines at the polls, but only in the heavily Republican precincts! 1987 Tulsa County Election Board Secretary Harmon Moore Jr. resigned amid allegations of embezzlement; he later was convicted and sentenced to seven years in prison for embezzling public funds. Embezzlers: Also in Tulsa County, election board secretary Harmon Moore was sent to prison in 1987 for embezzling public funds. He was convicted of converting $16,713 in public funds to his own use. |
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