In another victory for bloggers and the new media, a McIntosh County judge has denied a request by Steve Covington for a restraining order and a temporary injunction sought against the McAlester Watercooler. Congratulations guys! Read more…

Well one thing we can say about new/old OKGOP Chairman Gary Jones, the weekly email has gotten a hell of a lot better. We actually look forward to receiving it now. Before, it was about as entertaining as watchng paint dry! The commentary is more insightful and this week, Jones even adds a little humor.

Gene “Bosshog” Stipe Legacy Keeps Growing

The federal investigation into Gene Stipe and his alleged corruption in SE Oklahoma just keeps growing, with Senate Co-President Pro-Tem Mike Morgan now coming under fire.

A Sunday story by the Oklahoman shows some Oklahoma colleges used non-traditional private financing to build housing projects, and students at several Oklahoma colleges are paying higher housing costs because of it.

Morgan, who’s a Stillwater attorney, was paid more than $230,000 as the acting attorney on some of the projects…all in his Senate district. Reporters Tony Thornton and Randy Ellis also report that huge sums were paid to a title company co-owned by—you guessed it—former State Senator Gene Stipe.

The shady funding method, called off-balance-sheet or no-recourse financing, results in higher interest rates and higher fees paid to underwriters, banks and various attorneys, because the schools bypass competitive-bidding to streamline construction projects. The Oklahoman confirmed that the schools’ financing method is drawing FBI scrutiny.

We’ve made the point here before that the arrogance of power, the corruption that follows and the unquenchable thirst to spend taxpayer dollars has been the trademark of Oklahoma Democrats during their time in the majority, and it’s the mark Stipe has left on the Democratic Party.

With Mike Morgan term-limited, it is uncertain if he will simply slip off into the shadows or if these charges will be pursued further. What is more clear however, is that this cloud of corruption may damage Morgan’s popularity in his own Senate district and could hurt the Democratic nominee who will look to replace Morgan next November.

This letter was recently sent to the editor of Newsok.com

I was disappointed by the design of Oklahoma’s commemorative quarter that features the state bird and wildflower. My submission was much more appropriate. It contained the images of Gene Stipe, David Walters and Judge Donald D. Thompson with the caption: “Celebrating 100 Years of Corruption in All Three Branches of State Government. Instead of one lousy bird on the back of the coin, we could have had three jailbirds.

From The Sunday Sun:

I must respond to the editorial commentary that appeared in your paper on April 15, 2007, to correct some inaccurate statements and explain what I have accomplished in office for the benefit of the citizens living in my district in Eastern Oklahoma County.

First, there was no ‘indictment’ as has been reported because no grand jury of 12 honest citizens would issue one. The attorney general himself filed an ‘Information’ alleging campaign finance violations of which I am innocent. The politically motivated charges and Drew Edmondson’s “presumption of guilt” has resulted in a Bar complaint against him.

Edmondson’s allegations, which you cited in your editorial as “straw donors,” do not concern straw donors at all. Rather, the allegations concern a single in-kind contribution for a mailing to my campaign for $3,980 from a political action committee that was fully and accurately reported in my campaign finance reports filed with the State Ethics Commission. This kind of contribution is entirely legal and proper for 101 state representatives, 48 senators, all of our congressional delegation and every other elected official in the state and countless candidates that received similar PAC contributions and reported them as I did. However, I repaid these funds over a year ago to avoid even the appearance of impropriety.

Your confusion about ‘straw donors’ comes from another case in the news, unrelated to me, in which Gene Stipe and Steve Phipps are accused of using fifteen people as ‘straw donors,’ or donors who use someone else’s money to illegally contribute to a campaign, to contribute tens of thousands of dollars in illegal campaign donations to Gov. Brad Henry, U.S. Representative Dan Boren, State Auditor Jeff McMahan, among others, all Democrats. Even the attorney general received Stipe/Phipps donations and just this month repaid thousands of dollars in illegal contributions from his own campaign coffers. Read more…

There is a popular board game called Jenga, that we believe symbolizes perfectly the alleged tangled and complicated financial scheme unraveling before our very eyes involving Gene Stipe, Steve Phipps, and State Auditor & Inspector Jeff McMahan.

The object of Jenga, is for each player to take take turns taking a block out of the tower of narrow wooden blocks, and then replacing it at the top. The remaining structure, sometimes seems to defy the laws of nature, but eventually, the whole thing comes crashing down and you lose. The Mike Mass indictment is another block removed from the Rural Development Fund Jenga tower. The Tulsa World has a surprisingly in depth piece on the indictment and scandal.

UPDATE: Former Lawmaker Pleads Guilty

MUSKOGEE, Okla. (AP) _ Former state Representative Mike Mass pleaded guilty Friday to a charge that he earmarked state money to benefit a businessman. Mass, 55, entered the plea in federal court in Muskogee to mail fraud conspiracy.

Mass admitted that he received payments from the unnamed businessman in return for money he sent the businessman’s way.

The businessman has been identified in other court documents as Steve Phipps, who owns a dog food plant and a gambling machine company, both in McAlester.

The maximum penalty for the conspiracy to commit mail fraud charge is 5 years in prison and a $250,000 fine, however Mass could face more time than that, according to the financial loss calculated by prosecutors.

MUSKOGEE, Okla. (AP) The personal photographer of former state Senator Gene Stipe says he’s been called to testify before a federal grand jury.

Allen Cherry of McAlester says the subpoena also tells him to bring every photo he’s taken of Stipe during the past five years. Cherry says he’ll be taking about 150 photos with him to the federal courthouse in Muskogee.

The grand jury initially looked into a McAlester dog food plant built on land owned by Stipe. The investigation now includes allegations of kickbacks to three former lawmakers and possible illegal campaign contributions.

Stipe resigned from the state Senate in 2003 and pleaded guilty to a straw donor scheme involving the 1998 congressional campaign of Walt Roberts.

RELATED:

Political observers are scratching their heads. Why would a man who was given a great deal after being convicted of paying straw donors, turn around and allegedly commit the same crime again? This 1998 interview by the The NewsHour with Jim Lehrer, regarding President Clinton’s affair with Monica Lewsinsky, may give us insight into Stipes‘ thinking.

GENE STIPE, Oklahoma State Senator: There’s always a temptation to jump on somebody on somebody that’s down.

KWAME HOLMAN: Sitting in the office of his successful law practice in McAllister, Oklahoma, Democrat Gene Stipe reflected on the rough and tumble world of politics, of which he’s uniquely qualified to do. Stipe, an Oklahoma state senator, has served 50 years in the legislature, longer than any other state legislator in America. Considered one of the last of the old political deal makers, Stipe is also as much a legend in Oklahoma as Carl Albert, himself. When we asked him about President Clinton’s trouble, Stipe blamed it on the tabloid-minded media.

GENE STIPE: It’s no different than it’s always been, except that the exploitation of the media of problems that used to be ignored because they were private, that no longer exists. No one has any privacy.

KWAME HOLMAN: But Stipe said President Clinton shouldn’t be counted out yet.

GENE STIPE: The first year I was elected I rode the train with Harry Truman-if you thought of the national press, he didn’t have a chance-we were all wasting our time riding around with him because he had no future-but he won the presidency and became one of the greatest presidents in a long time in my opinion. I still think there’s hope for Bill Clinton.

MUSKOGEE, Okla. (AP) The personal photographer of former state Senator Gene Stipe says he’s been called to testify before a federal grand jury.

Allen Cherry of McAlester says the subpoena also tells him to bring every photo he’s taken of Stipe during the past five years. Cherry says he’ll be taking about 150 photos with him to the federal courthouse in Muskogee.

The grand jury initially looked into a McAlester dog food plant built on land owned by Stipe. The investigation now includes allegations of kickbacks to three former lawmakers and possible illegal campaign contributions.

Stipe resigned from the state Senate in 2003 and pleaded guilty to a straw donor scheme involving the 1998 congressional campaign of Walt Roberts.

RELATED:

Political observers are scratching their heads. Why would a man who was given a great deal after being convicted of paying straw donors, turn around and allegedly commit the same crime again? This 1998 interview by the The NewsHour with Jim Lehrer, regarding President Clinton’s affair with Monica Lewsinsky, may give us insight into Stipes‘ thinking.

GENE STIPE, Oklahoma State Senator: There’s always a temptation to jump on somebody on somebody that’s down.

KWAME HOLMAN: Sitting in the office of his successful law practice in McAllister, Oklahoma, Democrat Gene Stipe reflected on the rough and tumble world of politics, of which he’s uniquely qualified to do. Stipe, an Oklahoma state senator, has served 50 years in the legislature, longer than any other state legislator in America. Considered one of the last of the old political deal makers, Stipe is also as much a legend in Oklahoma as Carl Albert, himself. When we asked him about President Clinton’s trouble, Stipe blamed it on the tabloid-minded media.

GENE STIPE: It’s no different than it’s always been, except that the exploitation of the media of problems that used to be ignored because they were private, that no longer exists. No one has any privacy.

KWAME HOLMAN: But Stipe said President Clinton shouldn’t be counted out yet.

GENE STIPE: The first year I was elected I rode the train with Harry Truman-if you thought of the national press, he didn’t have a chance-we were all wasting our time riding around with him because he had no future-but he won the presidency and became one of the greatest presidents in a long time in my opinion. I still think there’s hope for Bill Clinton.

State auditor took trips with target of probe

OKLAHOMA CITY (AP) State Auditor and Inspector Jeff McMahan says he took three trips in recent years with the owner of an abstract company who’s now being investigated by a federal grand jury.

Two of those trips he took with Steve Phipps were paid for by Phipps.

McMahan’s office regulates the abstract industry and state Ethics Commission officials say McMahan isn’t allowed to take anything of value from a person or entity he regulates.

McMahan spokeswoman Terri Watkins says Phipps paid for a fishing trip to Lake Texoma for McMahan and former Auditor Clifton Scott. She says he also paid for a trip to Biloxi, Mississippi, where McMahan held an educational course for Phipps’ abstractors.

The two also traveled to New Orleans but Watkins says McMahan paid for his expenses.

Phipps and former state Senator Gene Stipe are under investigation by a grand jury in Muskogee which is looking into several abstract companies the men co-own and possible illegal campaign contributions.

OKLAHOMA CITY (AP) An investigative audit is under way into an agency whose executive director is cited in F-B-I affidavits for allegedly profiting off state funds that were steered to economic development entities in southeastern Oklahoma.

First Assistant Attorney General Tom Gruber disclosed in a March 12th letter approval of the request for an investigative audit of Little Dixie Community Action Agency by the office of Auditor and Inspector Jeff McMahan.

The disclosure comes as the state’s multicounty grand jury was set to begin hearing testimony on Wednesday.

Dixie Community Action Agency was founded in 1968 and has been run the past two years by Randall Erwin, one of three former legislators implicated in a federal probe of alleged kickbacks linked to “special project” money they secured as House members for projects.

Erwin has denied any wrongdoing and says 68-hundred dollars in cash he received from a business partner of ex-Senantor Gene Stipe wasn’t a kickback as alleged in the F-B-I affidavit.

By SUSAN HYLTON
World Staff Writer

MUSKOGEE — Former state Rep. Mike Mass of Hartshorne was at the federal courthouse in Muskogee the same day a grand jury was in session Wednesday, but he said he was not there to testify.

Mass, who is embroiled in an FBI investigation involving former longtime state Sen. Gene Stipe, visited the local office of the Oklahoma attorney general two days after he was subpoenaed to testify in a civil trial involving Stipe and Stipe’s former business partner, Steve Phipps.

The investigation concerns an alleged straw donor scheme in which people who contributed to several Democratic campaigns — including that of U.S. Rep Dan Boren — were reimbursed by companies controlled by Stipe and Phipps. Boren has claimed no knowledge of the scheme. Read more…