Mike Mass Bankruptcy Numbers Don't Add Up, McAlester News-Capital's Editor Reports
By Doug Russell, News Editor, McAlester News-Capital
It’s there in his own documents. State Rep. Mike Mass was paid by at least two companies owned by Steve Phipps — one while working in the legislature.
But the numbers don’t add up.
Documents filed by Mass in a 2005 bankruptcy list three sources of income for 2003: the state of Oklahoma, Kiamichi Economic Development District of Oklahoma and American Projects Development. The documents also list two sources for 2005: the state of Oklahoma and Indian Nation Entertainment.
Only his salary from the Oklahoma House of Representatives is listed in 2004. That includes only the income listed as coming from employment or the operation of a business. Another area of the document, for income that wasn’t received from employment or the operation of a business, lists an additional $23,061 for the three-year period. Those are listed as $6,560 from casino winnings and/or a retirement account in 2005, $11,601 from casino winnings and something listed only as Devon in 2004, and $4,900 in 2005 from casino winnings and a life insurance policy for the death of Mass’ father.
Both American Projects Development and Indian Nation Entertainment, listed by Mass in the employment or business income section, are owned by Phipps, a Kiowa businessman and school board member whose actions are under scrutiny from the FBI.
Court documents indicate Mass claimed income of $49,600 in 2005. Of that, as much as $38,400 came from the state as payment for Mass’ service in the legislature. Mass received $29,435 “for tax purposes,” according to Ray Carter, a spokesman for the Oklahoma House of Representatives. The other portion of his gross salary was for items such as health insurance and a retirement account, which are collected before taxes are taken out.The remaining money was from INE and casino winnings, according to the court filing.
An FBI affidavit filed in connection with an investigation into the Pushmataha County Abstract Co., another Phipps holding, alleges that Mass was listed as a consultant with INE for $6,000 per month. The document indicating Mass was a paid consultant was dated Nov. 3, 2003, according to the affidavit.
In addition, the affidavit alleges Mass and former Reps. Randall Erwin and Jerry Hefner were each 10 percent partners in INE and each was paid at least $20,000 between March 2004 and June 2005. Mass is also alleged to have received $56,790 from INE between May 2005 and January 2006, according to the affidavit.
The $89,232.80 claimed for 2003 came from the state, KEDDO and American Project Development, according to the bankruptcy filing. Of that, about $20,000 was from KEDDO, which hired Mass for six months between his terms as a state representative.
Mass was sworn in on Aug. 18, 2003, to complete the unexpired term of former Rep. Richard Lerblance, D-Hartshorne, who had successfully made a bid for the state Senate seat vacated by former state Sen. Gene Stipe. Records show that Mass received a $14,179 gross salary for the remainder of the year, Carter said. That means the remaining $55,053.80 income from 2003 would have to come from APD, if the bankruptcy filing is correct.
But, as was previously reported in this newspaper, an FBI affidavit alleges that Mass received $30,000 from the Pushmataha County Abstract Co. on Nov. 5, 2003. A few days later, he signed an agreement with the Federal Election Commission to pay a $30,000 fine for helping Stipe funnel illegal campaign contributions to a failed 1998 congressional campaign by Walt Roberts.
The purpose of the check was allegedly for a real estate closing, but the FBI was unable to uncover any evidence of a real estate transaction involving Mass during that time period, according to the affidavit.
Although Mass listed only his salary from the state House of Representatives as income for 2004 on his bankruptcy filing, the affidavit by FBI agent Gary Graff alleges he was paid $122,610 from APD between September 2002 and June 18, 2004. That appears to indicate that Mass received some sort of payment from APD in 2004 — which was not listed as income for bankruptcy purposes.
The affidavit also alleges that between fiscal years 2003 and 2005 Mass allocated a total of $1,490,667 in state money to companies owned by Phipps.
It’s there in his own documents. State Rep. Mike Mass was paid by at least two companies owned by Steve Phipps — one while working in the legislature.
But the numbers don’t add up.
Documents filed by Mass in a 2005 bankruptcy list three sources of income for 2003: the state of Oklahoma, Kiamichi Economic Development District of Oklahoma and American Projects Development. The documents also list two sources for 2005: the state of Oklahoma and Indian Nation Entertainment.
Only his salary from the Oklahoma House of Representatives is listed in 2004. That includes only the income listed as coming from employment or the operation of a business. Another area of the document, for income that wasn’t received from employment or the operation of a business, lists an additional $23,061 for the three-year period. Those are listed as $6,560 from casino winnings and/or a retirement account in 2005, $11,601 from casino winnings and something listed only as Devon in 2004, and $4,900 in 2005 from casino winnings and a life insurance policy for the death of Mass’ father.
Both American Projects Development and Indian Nation Entertainment, listed by Mass in the employment or business income section, are owned by Phipps, a Kiowa businessman and school board member whose actions are under scrutiny from the FBI.
Court documents indicate Mass claimed income of $49,600 in 2005. Of that, as much as $38,400 came from the state as payment for Mass’ service in the legislature. Mass received $29,435 “for tax purposes,” according to Ray Carter, a spokesman for the Oklahoma House of Representatives. The other portion of his gross salary was for items such as health insurance and a retirement account, which are collected before taxes are taken out.The remaining money was from INE and casino winnings, according to the court filing.
An FBI affidavit filed in connection with an investigation into the Pushmataha County Abstract Co., another Phipps holding, alleges that Mass was listed as a consultant with INE for $6,000 per month. The document indicating Mass was a paid consultant was dated Nov. 3, 2003, according to the affidavit.
In addition, the affidavit alleges Mass and former Reps. Randall Erwin and Jerry Hefner were each 10 percent partners in INE and each was paid at least $20,000 between March 2004 and June 2005. Mass is also alleged to have received $56,790 from INE between May 2005 and January 2006, according to the affidavit.
The $89,232.80 claimed for 2003 came from the state, KEDDO and American Project Development, according to the bankruptcy filing. Of that, about $20,000 was from KEDDO, which hired Mass for six months between his terms as a state representative.
Mass was sworn in on Aug. 18, 2003, to complete the unexpired term of former Rep. Richard Lerblance, D-Hartshorne, who had successfully made a bid for the state Senate seat vacated by former state Sen. Gene Stipe. Records show that Mass received a $14,179 gross salary for the remainder of the year, Carter said. That means the remaining $55,053.80 income from 2003 would have to come from APD, if the bankruptcy filing is correct.
But, as was previously reported in this newspaper, an FBI affidavit alleges that Mass received $30,000 from the Pushmataha County Abstract Co. on Nov. 5, 2003. A few days later, he signed an agreement with the Federal Election Commission to pay a $30,000 fine for helping Stipe funnel illegal campaign contributions to a failed 1998 congressional campaign by Walt Roberts.
The purpose of the check was allegedly for a real estate closing, but the FBI was unable to uncover any evidence of a real estate transaction involving Mass during that time period, according to the affidavit.
Although Mass listed only his salary from the state House of Representatives as income for 2004 on his bankruptcy filing, the affidavit by FBI agent Gary Graff alleges he was paid $122,610 from APD between September 2002 and June 18, 2004. That appears to indicate that Mass received some sort of payment from APD in 2004 — which was not listed as income for bankruptcy purposes.
The affidavit also alleges that between fiscal years 2003 and 2005 Mass allocated a total of $1,490,667 in state money to companies owned by Phipps.
posted by Mike McCarville @ 11:43 AM
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