State Auditor Jeff McMahan Goes To Prison

6/11/2020

The Daily Oklahoman posted coverage of the McMahan scandal. Here is an exerpt:

Jeff McMahan was sentenced to eight years and a month for taking bribes from a southeast Oklahoma businessman. Wife, Lori McMahan, was sentenced to six years and six months on related charges.

"I am saddened when the political process is corrupted. Seeing people imprisoned generates mixed prosecutorial emotions,” U.S. Attorney Sheldon J. Sperling said Friday.

Jeff McMahan, a Democrat, was accused of showing favoritism as auditor to businessman Steve Phipps in exchange for cash, jewelry, campaign contributions, fishing trips, and trips to places like New Orleans and Boston.
The former state official was convicted of three felony counts June 14. He resigned two days later.
Sperling said after the sentencing that the McMahans were convicted of conspiracy to commit "dishonest public service mail fraud” and of racketeering through illicit interstate travel.

The charges stemmed from an investigation by the FBI, the IRS and the state Ethics Commission. Sperling said Friday he was "impressed” the prosecution led to legal reform.

"The state auditor’s office no longer has authority over abstract companies,” he said. "A huge temptation towards corruption has been statutorily removed.”

Read The Oklahoman's Full account at: http://newsok.com/

OKGOP State Chairman, Gary Jones; posted this assessment:

Anatomy of a Scandal

July 29, 2007

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.
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.

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