Stipe Tried To Get Insurance License

From The Journal Record, Oct 12, 2005 by Brian Brus

Former state Sen. Gene Stipe will not be allowed to get a license to work in the insurance industry, Insurance Commissioner Kim Holland announced Tuesday.

"We want to make sure that people we license and regulate are held to the highest standards of ethics and honesty," Holland said. "Mr. Stipe has been convicted of several felonies that involve dishonesty, and that is not the type of character we want in control of the insurance-buying public's money."

Stipe, who still operates a law firm in his hometown of McAlester, did not return phone calls for comment Tuesday.

Stipe had served in the Legislature for more than 50 years before he resigned in 2003 in the face of felony counts of perjury and conspiracy to obstruct a Federal Election Commission investigation involving his part in funneling $200,000 into the 1998 congressional race of his protege, Walt Roberts. He pleaded guilty in federal court in Washington to the two felonies and a misdemeanor count of conspiracy to violate the Federal Election Campaign Act.

Federal law prohibits felons from participating or engaging in the interstate business of insurance, but leaves open a loophole: An insurance commissioner can grant special permission within the state.

Holland's office became involved when Stipe filed a lawsuit in which he stated he is a partner in ownership and operation of abstracting and title insurance companies.

Holland said that although Stipe is not licensed as an insurance agent and does not appear in state filings as an owner of an insurer, she was concerned about his claim. Stipe was sent an application used by the Insurance Department to investigate felons.

After reviewing his application and supporting documents, she decided that consumers and the insurance industry would not benefit by giving special permission to Stipe, a prepared statement from Holland's office said.

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