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The Gene Stipe Machine Crumbles

1/24/2025

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Code Of Silence



  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.

MUSKOGEE -- Mike Mass, once an influential state representative and a past chairman of the state Democratic Party, became Wednesday the latest crooked Oklahoma politician to be sentenced to prison.

  A judge ordered Mass to spend two years in federal prison for taking kickbacks to divert taxpayer money to a gaming machine company and a dog food manufacturing company. A prosecutor said Mass, 57, of Wilburton, has a gambling addiction and left his family destitute. The judge ordered Mass to get treatment, if necessary, and to stay out of casinos while on supervision after his release.


  Businessman Steve Phipps was sentenced Wednesday to one year and one day in federal prison for paying kickbacks to Mass and two other legislators. Phipps’ companies illegally received almost $2.8 million and he agreed to pay legislators 10 percent in kickbacks. Both Mass and Phipps had faced up to five years in prison.

  U.S. District Judge Ronald White showed leniency to Phipps for his "extraordinary” cooperation in an ongoing federal probe of political corruption. The judge said the corrupt things Phipps testified about doing "made my skin crawl.” Phipps said, "I am ashamed of my conduct. I have tarnished the political process ... I have tried to make amends.”
  The judge ordered Phipps and Mass to together pay $279,258 in restitution to the state of Oklahoma. Phipps, 54, of Kiowa also must pay a $50,000 fine.
  Phipps’ supporters included Oklahoma country singer Reba McEntire. The two were classmates in Kiowa schools, beginning in the first grade. "It is not often that people admit their mistakes. It is less often they do something to rectify the problem. Steve Phipps will always be my friend,” she wrote the judge May 17.
Testimony key in federal case
  Phipps pleaded guilty to a conspiracy charge in 2007, admitting then he paid kickbacks to three legislators. He also has admitted other wrongdoing, including using straw donors to give excessive contributions to the state auditor’s race and to other campaigns. He was not charged further under a plea agreement with prosecutors that required him to cooperate.
  Phipps’ testimony was considered crucial to the conviction of former state Auditor Jeff McMahan. His cooperation also led to criminal and civil proceedings against former state Sen. Gene Stipe and a guilty plea in a criminal case against Stipe’s younger brother, Francis.

"Prince of Darkness,”


  In court papers, Phipps’ attorney described him as a business partner and protege of the "Prince of Darkness,” Gene Stipe. The defense attorney wrote Phipps refused to become one of Stipe’s "fall guys.” Prosecutors said Phipps is one of the few individuals from southeast Oklahoma "who has had the wherewithal to break an apparent ‘code of silence.’” Mass also pleaded guilty to a conspiracy charge in 2007. Randall Erwin, a second former state representative implicated in the kickback plot, was acquitted at trial in April. Jerry Hefner, the third former state representative allegedly involved, was never charged. Prosecutors would not comment Wednesday about Hefner. Prosecutors said Mass "received the bulk of the $279,258 in kickbacks paid for financial favoritism.”

The judge also showed leniency to Phipps because he suffers from a rare medical condition that would be difficult for prison officials to treat long. A urologist reported Phipps might not survive prison. The judge also said he was concerned Phipps’ companies would fail and his employees lose their jobs if he was in prison for long.

After the sentencing, Phipps’ attorney, Dan Webber, said, "Steve is a strong person. I believe he will get through it. He and his wife will do whatever it takes to keep those businesses open.”  Phipps sought probation and a fine.
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Prosecutor Prosecutes Himself

1/17/2025

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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.
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Fallin's Scandalous Affair

1/10/2025

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Lt. Gov’s bodyguard quits amid allegations of affair

December 8, 1998 AP
Trooper Greg Allen
OKLAHOMA CITY - An Oklahoma Highway Patrol bodyguard for Lt. Gov. Mary Fallin has resigned after admitting ”unprofessional conduct” amid allegations by her estranged husband that she had an affair with a bodyguard.

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.”

The Lost Ogle posted this photo of Mary Fallin's
first marriage being planned at
Hugh Hefner's Playboy mansion
The trooper was not identified and Ricks was reported unavailable for further discussion of the matter.

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.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Sex scandal roils Oklahoma politics: 

Official accused of having affair with trooper

Gov. Keating Accused of Hypocrisy

December 12, 1998 Kansas City Star (MO)
TULSA, Okla. – The debate over precisely what constitutes sexual relations has spread from the nation’s capital to this heartland state, where the lieutenant governor is accused of an improper relationship with a state trooper.
The situation has Republican Gov. Frank A. Keating battling partisan charges of hypocrisy for refusing to publicly criticize his second-in-command, Mary Fallin, while condemning President Clinton’s conduct with Monica Lewinsky as “outrageous” and calling for Clinton’s resignation.
“We have to handle this fairly and professionally and in a nonpartisan fashion, fully independent of what is happening nationally,” Keating said in an interview. “We can’t let the winds of the Washington scandal blow us to the right or left. ”
  The governor added that there was no evidence that sexual intercourse had taken place between Fallin and Greg Allen, a member of her security detail. Keating has nonetheless ordered the state Public Safety Commissioner to leave “no stone unturned” in an official review.
Fallin and Allen – who resigned after acknowledging that he engaged in “unprofessional conduct” – have denied a sexual relationship.
However, Allen admitted that on more than one occasion he had held Fallin’s hand and had comforted her as she wept on his shoulder over her troubled marriage.
He also said that they had kissed – “but merely as you would kiss a friend,” explained his attorney Gary James. For that, James said, Allen initially thought it was best to resign. Allen, who is married, is now asking for his job back.
The firestorm erupted Dec. 4 when Fallin, 43, considered an up-and-coming Republican political figure, announced that she was seeking a divorce. At a sensational court hearing that day, she accused her husband of 14 years of abusing her, of using drugs and of hiring a private investigator to follow her. Joseph Fallin, a dentist, denied the abuse and drugs but admitted hiring the investigator.
“This is about you having an affair with one of your bodyguards, isn’t it?,” Joseph Fallin’s attorney, Bill Liebel, asked Mary Fallin in open court. “That was a rumor started by my husband,” she responded.
The judge quickly called a recess and then barred further reference to the matter. But the cat was out of the bag. A few days later, Public Safety Commissioner Bob Ricks confirmed that Allen had been “permitted to resign,” although the trooper had denied that any “sexual activity” had occurred.
“In all honesty, none of us wanted to know any details,” Ricks said in an interview. “Who wants to go into this salacious area? ” Keating, who is chairman of the Republican Governor’s Association and who has presidential aspirations, is among those who would rather not be dealing with this. But state Democrats seized on the scandal to attack Keating, while avoiding any judgment of Fallin and her marital woes.
“He is a leading critic of the president, and what he is practicing nationally he is not practicing locally,” said Pat Hall, executive director of the state Democratic Party.
A spokesman for Keating responded that the governor’s judgments about Clinton were made after the president admitted an improper relationship with Lewinsky.
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Competing Nominees For Corporation Commission

1/3/2025

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Charles R. Nesbitt

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.
"This is a political controversy," Nesbitt charged. "The Republican Party undertook a power play. They did a real sloppy job of it, but it's for the Supreme Court to decide whether it was effective enough," he said.
Keating, Apple and Watts are Republicans, while Walters and Nesbitt, who served as energy secretary in Walters' Cabinet, are Democrats.
Watts has said that partisan politics did not motivate him to delay his commission resignation. Watts said he announced months ago that if elected to Congress, he would remain on the commission until whoever was elected as the new governor could appoint his successor.
Watts and Commissioner Bob Anthony on Jan. 6 approved a resolution recognizing Keating's appointee as the rightful new commissioner. Nesbitt said that resolution is "invalid" and "illegal. " "As far as the corporation commission is concerned, Mr. Apple is our duly appointed commissioner," commission General Administrator Jay Edwards said Tuesday. "Unless the courts turn that around, that's the way we'll continue to perform. " Since being sworn in Jan. 9, Apple has been participating in commission hearings and voting on and signing orders along with Anthony and commission Chairman Cody Graves.
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Senator Jim Lane's Secret Life As A Ghost Employee

12/27/2024

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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 
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Governor Walters Plea Deal And Avoidance Of Impeachment

12/20/2024

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Gov. David Walters stands before
District Judge John Amick in Oklahoma County
District Court as he pleads guilty to one
misdemeanor count of violating state
campaign finance laws.
 Harry Holloway, of the Oklahoma Historical Society said;
  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.  
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The 1991 School Bond Scandal

12/13/2024

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Tulsa Public Schools Claimed Poverty While Running A Loan Business With Surpluses

Roughly 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 Electorate

During 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 Scheme

  At 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
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Election Board Secretary Harmon Moore Goes To Prison For Embezzlement

12/6/2024

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  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!
  Then, in 1987, The Tulsa World said;

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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Lettergate: Tulsa Mayor Terry Young's Forgery Scandal

11/29/2024

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  When a high official gets involved in wrongdoing, it's usually the cover up that gets him in big trouble.

 The Democrats were 'circling the wagons' when Finis Smith was convicted. They knew it could lead to election losses. When several Democrats wrote to the judge in the Finis Smith trial, they begged for leniency for Smith. That revelation jeopardized several Democrat elected officials.
  Well, evidently some operatives thought it would be good strategy to make the Republicans look like their prosecutions were politically motivated. So another Republican federal prosecutor was targeted for a Democrat dirty trick. A letter was forged with the signature of Federal Prosecutor, Layn Phillips. The Federal investigation traced the source of the letter to a typewriter in Democrat mayor Terry Young's office. Everyone denied involvement and nothing was ever proven.

 Tulsa World said;
One of the biggest stories of 1986 was the so-called "Lettergate" scandal, which toppled Mayor Young's administration. After various public officials, including Young, wrote letters urging leniency for the Smiths, two subsequent letters with then-U.S. Attorney Layn Phillips' named forged on them surfaced. The forgeries suggested Phillips would release names of Democratic officials who had written leniency letters in an effort to damage them politically.
  The forgeries were linked to a typewriter and letter found in Young's office. Young and his staff denied any involvement, and a federal grand jury and special prosecutor left the case unresolved. But the incident no doubt led to the defeat of Young by political newcomer Tom Quinn in a March primary. 

Water & Sewer Commissioner, Patty Eaten, then filed for mayor as an Independent and the left was officially split. 17 other independants also ran.  Political novice Dick Crawford was elected mayor in the general election, beating out 19 other candidates.
The Daily Oklahoman said:
TULSA Republican Dick Crawford won Tulsa's mayoral election Tuesday night, defeating independent candidate Patty Eaton and 18 other challengers.
With 180 of 188 precincts reporting, Crawford had 44,434 votes to Eaton's 32,986, in unofficial results. Crawford will take the mayor's oath May 6, replacing incumbent Terry Young.
Democratic nominee Tom Quinn received 10,589 votes. The 17 other candidates running for mayor polled about 4.5 percent of the vote.
Eaton conceded defeat as she addressed supporters at the Westin Hotel here. She said she had known from the start it was "risky business" to abandon her race for re-election as water and sewer commissioner to run for mayor.
"We had a lot of things going for us, but then we also had a lot of things going against us," Eaton said.

Years later, the Tulsa World wrote a decent summary...

The letter that changed an election

Somewhere in this city some sentimental fool has kept a T-shirt, now 16 years old, with "I Ran for Mayor of Tulsa" printed on the front.
If you can find it in the bowels of your closet you hold a souvenir from perhaps the wackiest city election season in Tulsa history.
The general election of 1986 -- an event held, quite aptly, on April Fools' Day -- was a testament to gonzo political pundit Hunter S. Thompson's axiom: "When the going gets tough, the weird turn pro."
Generally it is wise to let bygone elections be bygones and if ever there was a political season that deserved eighty-sixing in the memory it probably is the political season of '86. But with the 2002 city primary and general elections approaching, it's worth revisiting a moment in city history when voters were especially tuned into city elections.
It took the Tulsa County Election Board 88 hours to print a two-sided ballot for the general election that featured 20 candidates for mayor and 27 more candidates for five other city offices.
This year we will have a smaller pool of candidates upon whose messages we can focus. Sixteen years ago voters had trouble understanding messages because too many candidates were shouting them. Candidates of almost every age and from every walk of life had descended on the ballot like a swarm of locusts.
That year re-election for first-term Mayor Terry Young, a Democrat, had appeared to be a cakewalk. Then came "Lettergate," a bizarre scandal-ette that erupted a month before the primary. A mysterious letter, later proved to be forged, was given to the Tulsa Tribune by a Young political consultant.
The letter implied that then-U.S. Attorney Layn R. Phillips had played politics several weeks earlier when he released names of prominent Democrats who'd written letters to a federal judge urging leniency for ex-state Sen. Finis Smith and his wife, Doris. The Smiths had been convicted on several federal charges and were awaiting sentencing.
When the story broke, Phillips asked the FBI to investigate. The letter, carrying Phillips' forged signature, was traced to a typewriter in Young's offices. Young said he knew nothing about the origin of the letter. A federal grand jury investigated.
While no charges were ever filed, the leniency letter and the letterhead scandal cost Young the election. He lost the Democratic primary by 1,479 votes to political unknown Tom Quinn, owner of a sign company, who acknowledged that the primary was the first time he had ever voted in a city election. The Republican nomination went to another political novice, Dick Crawford.
At the time, the City Charter allowed Independent candidates to file up to 10 days before the general election. Eighteen Independents seized the opportunity to run for mayor and 18 Independents jumped into other city races.
Shortly before the election, then-Election Board Secretary Harmon Moore paused in his hand-wringing to observe: "We will conduct the election April 1. At this point I don't know how, but it will go on one way or the other."
Moore didn't sound at all convincing. He earlier had lamented that he did not know whether to expect 25,000 voters because of apathy and disgust over the political circus, or 150,000 voters because of high interest. (Voter turnout hit a record for a city election at 97,901).
On Election Day, voters were presented with a bewildering array of 47 candidates on the ballot. Included were two Kings, two Quinns, six high school seniors, "a Tom, a Dick but no Harry," (as noted in a Washington Post story about the fluky election) and a retiree calling himself the Candyman, who gave out sweets to anyone nice to him.
A candidate nicknamed "Night Train," also campaigned but never got to fulfill his promise of "restoring good, moral Christian ethics to City Hall."
Some candidates were serious contenders; others, obviously, were jokes waiting to be elected. A few entered races because Democratic and Republican nominees for office were perceived to be political flukes who were ill-prepared to run a large city with complex problems. The front-runner among the mayoral Independents was three-time Water and Sewer Commissioner Patty Eaton, a Democrat.
After the primary, Eaton abandoned her bid for a fourth term to that post, and threw her hat into the mayor's race. She lost the hat and the election by 12,265 votes to Crawford. Quinn ran a distant third. The six high school students received several thousand votes in a turnout that was so large many voters had to cast their ballots while standing on sidewalks outside the polls.
On Election Day, a clown in big shoes waddled the streets of downtown Tulsa wearing a placard that touted a candidate. Overhead, a plane swooped through the skies trailing another candidate's message. A car equipped with a public address system blared still more recommendations. A local radio personality attracted the attention of the New York Times by urging voters to elect him as a write-in candidate. And T-shirts were hawked, emblazoned with the message: "I Ran for Mayor."

Read the full story at the Tulsa World: http://www.tulsaworld.com/archives/how-bad-it-was/article_39df5cec-db61-5fff-b210-19f79aa13463.html 
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Senate Pro Temp Finis Smith Goes To Prison For Fraud

11/22/2024

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 Senate President, Finis Smith, of West Tulsa, was caught with an unreported foreign bank account which he's not reported on his taxes. He and his wife both were sentenced to prison. They owned a Tag Agency. He was disbarred from his law practice.

  The Tulsa World said;
1985
  Former Oklahoma Senate  president pro-tem Finis Smith, along with his wife Doris,  were convicted by a federal court jury here on felony counts  of mail and tax fraud, conspiracy and failure to disclose foreign bank accounts. Finis and Doris Smith, each got six years, and were sent to a federal prison in Texas.
The Daily Oklahoman put it this way..
A federal jury Thursday afternoon found former state Sen. Finis Smith and his wife, former Tulsa County automobile tag agent Doris Smith, guilty of 18 counts each of mail fraud, tax fraud, tax evasion and conspiracy.
The jury deliberated slightly less than eight hours, announcing at 12:35 p.m. that it had reached a verdict. The Smiths gazed stoically ahead as Presiding U.S. District Judge H. Dale Cook's clerk read the verdict on each count. As the verdict was announced, defense attorney Carl Hughes lowered his head to his arms on the table in front of him.
The jury found the Smiths guilty of conspiring to put three family members and a longtime friend in charge of four Tulsa County tag agencies after Doris Smith resigned in 1977 as county tag agent. The Smiths siphoned $68,000 from the four agencies in 1978 through office equipment lease-purchases with the four agents. The jury found that the Smiths illegally waited until filing their 1981 tax returns to report the income.
The jury found that the Smiths sent $50,000 of the lease-purchase proceeds to a bank in Tampico, Mexico, where they opened a series of savings and investment accounts. The couple conspired to hide the accounts' existence from the federal government, the jury ruled, and willfully failed to disclose their ownership of the accounts on their 1978 through 1982 tax returns. The Smiths claimed that the money belonged to a Mexican friend, even though the accounts were in their names.
The Smiths were found guilty of buying two obsolete check-proofing machines for $100, then donating them to the Tulsa County Area Vocational-Technical School and fraudulently claiming the machines were worth $34,000 on their 1979 tax returns.
The jury also found the Smiths guilty of mailing letters to the county assessor's office, falsely claiming that Doris Smith's Dorokee Co. had no taxable assets.
A Tulsa park had been named after Finis Smith.
It was promptly renamed The Challenger Seven park (after
the astronauts killed in a shuttle disaster around that time).
The Smiths served less than 1 year of their 6 year federal sentence.
 Finis Smith and his wife, former Tulsa tag agent Doris Smith, were released as scheduled Monday from the Federal Correctional Institute in Fort Worth, prison officials said.  The Smiths were convicted in November 1985 of mail fraud, tax evasion and failure to report a foreign bank account. They were sentenced to six years in prison.
Last March, U.S. District Judge H. Dale Cook granted the Smiths an indeterminate sentence. The U.S. Parole Commission announced in October that the Smiths would be paroled March 30.  Tulsa U.S. Attorney Layn Phillips agreed not to oppose the granting of an indeterminate sentence if the couple would promise not to appeal the conviction.
Federal court records show the Smiths paid more than $90,000 in fines and court costs in March 1986.
 In 1992, Finis Smith applied to be reinstated to the bar.
The couple could have faced up to 73 years in prison and $2.7 million in fines. After Smith's conviction, the state Supreme Court suspended Smith from practicing law for five years, effective March 1986.
His attorney, state Sen. Gene Stipe, D-McAlester, filed the petition for reinstatement. Smith, 65, told the court he now lives in a trailer in Tulsa. He and his wife's income has gone from $200,000 to nothing, he said.
 
"My abode was and is a travel trailer presently located

in Tulsa," 
Smith said in the affidavit attached to the petition. The statement said he has been a legal resident of Tulsa County for six years, although he has traveled to Texas, Arizona and Washington.
Finis Smith died in 2005. Doris died in 2013. 
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