Tulsa World: Oklahoma Republican chairman sues over lost elections

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Oklahoma Republican chairman sues over lost elections

By TIM TALLEY Associated Press Writer
Published: 11/24/2009 12:07 PM
Last Modified: 11/24/2009 4:27 PM

OKLAHOMA CITY — Oklahoma Republican Party Chairman Gary Jones has filed a lawsuit against convicted former Auditor and Inspector Jeff McMahan and others alleging they used fraudulent campaign finance practices to cheat Jones out of being elected state auditor and inspector.

Jones' lawsuit, filed Monday in Logan County, alleges that McMahan and his wife, Lori, former state Auditor and Inspector Clifton Scott, former state Sen. Gene Stipe and businessman Steve Phipps conspired to violate state campaign finance laws to give Jeff McMahan "an illegal, unfair and unethical election advantage" in elections in 2002 and 2006.

The allegations mirror those by federal prosecutors during a public corruption trial in Muskogee last year in which McMahan, a Democrat, was accused of showing favoritism in his official actions as state auditor to Phipps in exchange for cash, jewelry, campaign contributions, fishing trips, and travel to places such as New Orleans and Boston.

Prosecutors alleged McMahan accepted the items in exchange for favorable treatment of Phipps' abstract companies, which were once regulated by the auditor and inspector's office.

Phipps, a key prosecution witness at McMahan's trial, admitted that he and two business partners, including Stipe, funneled $157,882 into McMahan's 2002 campaign. The legal limit is $5,000 per person.

McMahan was convicted on felony counts of conspiracy and accepting bribes on June 14, 2008, and resigned two days later, forestalling an impeachment effort in the state House. He was sentenced in January to eight years and one month in federal prison.

Lori McMahan was sentenced to six years and six months on related charges.

Jones' lawsuit alleges the defendants committed fraud, interfered with his opportunity to be elected auditor and inspector, violated federal racketeering statutes and caused emotional anguish.

"Politics is unfair enough without people violating the law," said Jones, a certified public accountant who estimated he spent $250,000 campaigning for the statewide position. "It's a tough game."

Jones' lawsuit alleges McMahan continued a practice in the auditor and inspector's office that had begun under Scott, who it says "aided and abetted" the defendants by denying permits and licenses to potential competitors during the years he served as auditor and inspector between 1982 and 2002.

Scott said he had not seen the lawsuit.

"This is the first I've heard about it," Scott said from his home in Shawnee. "Don't know anything about it."

Phipps, who pleaded guilty in 2007 to a federal conspiracy charge, was sentenced to one year and one day in prison. It was not immediately clear whether Phipps and the McMahans had legal representation in the lawsuit.

Stipe, 83, was forced out of the Legislature in 2003 after he admitted funneling $245,000 into the failed congressional campaign of Walt Roberts. Stipe, of McAlester, was fined $700,000 and placed on probation.

Last year, a federal judge dismissed a petition to revoke Stipe's probation after a series of mental health evaluations found that he was mentally incompetent to assist in his defense.

An attorney for Stipe, John Carwile of Tulsa, did not immediately return a telephone call to his office seeking comment on the lawsuit.

By TIM TALLEY Associated Press Writer

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	Report Comment im4osu, Broken Arrow (11/24/2009 12:12:36 PM) LOSER = OU
	Report Comment Corvetteguy, Tulsa (11/24/2009 12:26:58 PM) I would have been skeptical of this lawsuit, until the name of former state senator Gene Stipe came up. With that crook mentioned, I would say this is a legitimate case........
	Report Comment Biker Patriot, Broken Arrow (11/24/2009 12:29:37 PM) If Democrats are involved you can be that there's fraud somewhere...or money.
	Report Comment GeneTulsa, Aubrey (11/24/2009 12:32:10 PM) im4osu, You are a looser.. In 102 games OSU has won 14 games against OU... Please grow and realize you and your team will always be second to OU........
	Report Comment getreal, (11/24/2009 12:38:25 PM) Still searching the article for mention of OU/OSU football..
	Report Comment my view, Sand Springs (11/24/2009 12:39:03 PM) GeneTulsa, We'll see, you may have to add one to that 14 very soon.
	Report Comment my view, Sand Springs (11/24/2009 12:41:26 PM) getreal, It didn't, but im4osu and GeneTulsa changed the topic so I followed along.
	Report Comment DaveMoore1, North Charleston (11/24/2009 1:04:35 PM) Sounds like another Whinning Republican running to the court system crying wolf....
	Report Comment beau3985, Tulsa (11/24/2009 1:19:42 PM) DaveMoore1, did you bother to read the article? The guy's got a legitimate case against an already convicted felon.
	Report Comment Ignatz, A nice place where Democrats hold every office in the County. (11/24/2009 1:42:11 PM) beau, exactly how all that translates to proof he should have gotten more votes than the other fellow remains to be seen, particularly with the large passage of time.
	Report Comment FS, Broken Arrow (11/24/2009 2:27:27 PM) my view, Sand Springs (11/24/2009 12:41:26 PM) getreal, It didn't, but im4osu and GeneTulsa changed the topic so I followed along. . ___________ . With regard to the article, I tend to agree with the Corvetteguy - Gene Stipe is involved, therefore, there's some validity to this suit. As far as the references to a ball (im4osu and GeneTulsa) are concerned - I had a very stupid cocker spaniel years ago that had no concern for anything but a ball - would you two happen to be kin to that dumb dog?
	Report Comment Faith, (11/24/2009 2:27:33 PM) What a cry baby. Get over losing.
	Report Comment Webmeister, Tulsa (11/24/2009 2:29:55 PM) Mr. Jones was cheated fair and square by professional Democrat politicians. They've patented the theft of elections with the U.S. Patent Office.
	Report Comment 007, Tulsa (11/24/2009 2:38:15 PM) WAAAAAAAAAAAAHHHHHH GIMME GIMME GIMME.
	Report Comment yep, Tulsa County (11/24/2009 2:58:20 PM) Politicians of both parties have perfected (bastardized) the election process. How else can you explain an 18% public approval rating of congress, and a 90+% re-election rate for incumbents? The founding fathers didn't account for gerrymandering and other creative ways both parties have found to retain their control and minimize the ability of the voting public to oust them. Unfortunately it's the self-serving parties that win out, not the citizens nor those being represented.
	Report Comment my view, Sand Springs (11/24/2009 2:59:17 PM) FS, I was joking and you just made a hateful remark. That's one, one more and I will add you to my list of three on ignore, you'll make four.
	Report Comment FS, Broken Arrow (11/24/2009 3:16:43 PM) Suits me, my view. Enjoy.
	Report Comment FIREHAWK, Tulsa (11/24/2009 3:20:23 PM) Hey...if you can't beat them in the voting booth run to the courts. It worked for baby bush..
	Report Comment Skeptic, Tulsa (11/24/2009 3:59:01 PM) "If Democrats are involved you can be that there's fraud somewhere...or money." - Biker Patriot ROFLMAO! That's really funny! Guess you forgot the Bush years already.
	Report Comment tfromtulsa, Tulsa (11/24/2009 4:40:58 PM) Good for Gary Jones! Now the potential competitors that McMahan denied permits and licenses to during the years he served as auditor and inspector should also sue him. I'll bet the judge gives them EVERYTHING they ask for. To call McMahan a scumbag is an insult to scumbags everywhere.
	Report Comment Ric, Broken Arrow (11/24/2009 4:47:19 PM) Stipes name again... geesh, since the 70's this crook has encroached.
	Report Comment edelweiss, Tulsa (11/24/2009 4:49:22 PM) Repubs are a desperate lot these days. Sounds like the party of "no" is turning into the party of "lawsuits". Time to move forward.
	Report Comment confederateU, (11/24/2009 5:25:23 PM) typical democratic responses - willing to support the criminals and commies czars just because they are democrats.
	Report Comment Rupert Shootman, Tulsa (11/24/2009 5:37:58 PM) McMahan is a democrat and a criminal. Stipe is a democrat and a criminal. Phipps is a democrat and a criminal. In Oklhahoma, there is nothing more corrupt than the democrats. That's why the republicans are slowly but surely winning everything in this state. Just took the Tulsa mayor's seat back. Governor is next. BTW...could it be that Jones is doing this to put the corruption back on the front pages just in time for the 2010 elections? Kind of remind everyone of how corrupt the dems are?
	Report Comment tricky ricky, (11/24/2009 6:05:26 PM) the judge should give him a trial after its over give jones 1.00

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