Bode's Money Plea Has Some Seeing Red

A letter from Corporation Commissioner Denise Bode, asking recipients to help her pay herself back the balance of the $345,174 she put into her losing campaign for the 5th District seat in Congress, has some Republicans seeing red.

GOP sources say the campaigns of Ernest Istook and Todd Hiett, in particular, are ticked about the letter because both their campaigns have been cash-strapped and donors will only give so much.

"Why couldn't she wait until the general (election) is over?" one frustrated Istook supporter said in an email to The McCarville Report Online. He said he had donated to Bode in the primary and will donate again: "But it ain't gonna be much and it ain't gonna be now," he said, explaining he's given to Istook several times and to other Republican candidates as well.

The October 9th Bode letter asks supporters to help unburden her of the debt to herself. Opensecrets.org shows "candidate self-financing" by Bode totaled $345,174, or 28.8 percent of the total she spent. It shows an outstanding debt of $250,000.

Liberal Interest Money Flows To Jennifer Seal Campaign, Conservatives Back David Dank

Organized labor and other liberal interest groups have jumped into numerous campaigns for the Oklahoma Legislature this year, supporting Democrats, while conservative Republican groups are supporting Republicans.

Examples of the liberal-conservative split in support can be found in numerous races but one of the most interesting examples is the race for House District 85 in Oklahoma City, where Democrat Jennifer Seal faces conservative Republican David Dank, husband of outgoing Rep. Odilia Dank, who defeated Seal 60-40 percent two years ago.

The race is a classic conservative (Dank) versus liberal (Seal) race where the contributors to the campaigns mirror their political philosophies.

Dank, for example, has relied on longtime conservative Republican donors and groups, while Seal has relied on contributions from organized labor and established liberals like Senator Cal Hobson, David Fleischaker, David Walters, and the former publisher of the Oklahoma Observer, Helen Troy, and the fundraising help of Troy's husband, Frosty, liberal gadfly.

Dank has raised $130,000 and spent about $118,000 on his campaign, while Seal has raised $86,000 and spent about $56,000, their latest Ethics Commission reports show. Unlike Seal, Dank had a multi-candidate primary and an expensive runoff in which he defeated Chip Keating, son of former Governor Frank Keating. Much of his money was expended in the primaries.

Nowhere is their philosophical split more evident than in two endorsements: The conservative National Rifle Association's Political Victory Fund endorsed Dank, the liberal Sierra Club endorsed Seal.

While Dank's contributor list reads like a "Who's Who" of the conservative establishment in Oklahoma City, Seal's list reads like a catalog of liberal interests. For example, among Seal's donors are the Sierra Club, Central Oklahoma Stonewall Democrats, and numerous organized labor entities. Walters, the former governor who was caught in the fundraising scandal in his own 1990 campaign and who now campaigns for liberal candidates here and elsewhere, gave Seal $700. Fleischaker and his wife, writer Pam Fleischaker, regularly excoriate President Bush, Republicans, Republican candidates, pro-life advocates and those who advocate less government. Hobson, who lost his Senate leadership position due to an addiction to alcohol, routinely blocked conservative legislation. Seal, like Hobson, supports gay rights and refused to answer questionnaires from Oklahomans For Life and the Oklahoma Family Policy Council.

McMahan Rips Jones Over TV Commercial

State Auditor & Inspector Jeff McMahan ripped into his Republican opponent, Gary Jones, today with the following news release, printed in its entirety:

Republican Gary Jones drug Oklahoma political campaigns to a new low this week by dramatically distorting Christmas-time video footage of his opponent in a desperate attempt to deceive voters and divert attention from his own stalled campaign and personal failures.

The doctor who owns the footage said he was “shocked and outraged” by the illegal use of his proprietary material.

“This is an improper use of material that belongs to me. I did not authorize its use. I did not sell the material to Mister Jones. I would never allow this type of material to be used in a political commercial like this,” Dr. Don White of Edmond said.

White is a clinical hypnotherapist who routinely does stage shows, events and parties where he hypnotizes guests and gets them to do or say something they would never normally do.

“This material was copied illegally from one of my shows. Gary Jones should know this recording should not have been made and he is, in my opinion, illegally and improperly using this material and I demand he stop immediately."

White also demanded television stations stop airing the ad or face the potential consequences. An attorney representing White is contacting Jones’ campaign and television stations, demanding the ad be pulled down or face potential legal action.

White said that while he had McMahan under hypnosis at a holiday party he gave him an instruction that he could not count or use the number 6, thereby causing McMahan to appear to be unable to count. White said the skit is a standard show routine that is done “all in fun and is particularly funny when you have an accountant, banker or auditor on the stage.”

The holiday festival footage was taken prior to McMahan taking office four years ago.

“Gary Jones’ entire campaign when talking about Jeff McMahan is a lie. He lies to the press. He lies to Oklahoma voters,” Pat Hall of the McMahan campaign said.

“Gary Jones has taken advantage of Jeff McMahan’s good-natured participation in festivities, where everyone was enjoying the most important holiday of the year, and used it in a desperate smear campaign,” Hall said.

Hall said Jones has resorted to the smear campaign to cover up Jones taking campaign contributions from indicted scam artist who robbed taxpayers, and from the fact that he was audited and cited for improperly shuffling money in his brief tenure as a Comanche County Commissioner.

“Gary Jones was such a poor manager of taxpayer dollars that his actions may have forced the people of Comanche County to repay nearly $200,000 to a federal agency,” Hall said on behalf of the campaign.

Jones and his former business partner, according to court records, also battled it out in court after a special court-appointed accountant found Jones making questionable payments to himself from company funds. Jones paid his partner a cash settlement in the case.

“Gary Jones from all appearances cannot manage his own money. He looks like a failed businessman who has never conducted the types of audits done by the state agency he seeks to lead.

“If Jones is elected, he could turn the only state agency guarding the expenditure of our tax dollars into a cesspool of corruption and personal political vendettas,” Hall said.

The McMahan release is the latest development in the combative race. McMahan has taken tens of thousands of dollars in his two campaigns from abstractors he regulates, including Gene Stipe and his abstracting empire partner now under federal investigation, Steve Phipps of Kiowa. Jones has focused on those contributions, and contributions from dozens of auditor & inspector office employees, in criticizing McMahan.

Frates Interests Pump $41,000 Into Case Campaign

Those associated with Oklahoma City insurance company executive Rodman A. "Rod" Frates pumped $41,000 into Republican insurance commissioner candidate Bill Case's campaign in October, Case's new finance report shows.

The sum is more than 50 percent of the total $78,705 Case reported raising in the period.

Insurance Commissioner Kim Holland has filed a lawsuit against Frates and his C. L. Frates Company, alleging fraud and conspiracy. For details, see our story of October 24.

Case's report shows donations from Edward McLauchlin of C. L. Frates Company, $5,000; Gary Isbell of C. L. Frates Company, $5,000; Glenda Lierle of C. L. Frates Company, $5,000; Clifford Frates of Los Angeles, $5,000; and Rod Frates, $5,000. Family members in Colorado and California also donated the maximum.

Listed as donating $1,000, bringing her total to Case to the maximum $5,000, is Arizona attorney Jill Graham, identified as being involved in the "Just The Facts America" attack on Holland. She is "of counsel" to Stephen Jones' Enid law firm. For details, see our previous stories.

TvPoll/KWTV: Henry 58.6-33.8% Over Istook, Askins-Hiett In Dead Heat At 46.5-46.3%

A new TvPoll.com voter survey, reported Monday night on KWTV-Channel 9, finds Governor Brad Henry poised to secure a huge victory over Congressman Ernest Istook a week from Tuesday, although the spread is not as wide as reported by SoonerPoll.com for the Tulsa World and KOTV-Channel 6 last Sunday.

The new poll shows Henry at 58.6 percent, Istook at 33.8 percent.

In the lieutenant governor's race, the poll found Democrat Jari Askins at 46.5 percent and Republican Todd Hiett at 46.3 percent, a virtual dead heat.

Attorney General Drew Edmondson leads challenger James Dunn 56-29 percent.

Labor Commissioner Brenda Reneau leads challenger Lloyd Fields 48.8-30.4 percent.

Insurance Commissioner Kim Holland leads challenger Bill Case 40.7-36.1 percent.

Auditor & Inspector Jeff McMahan leads challenger Gary Jones 39.3-33.4 percent.

State Treasurer Scott Meacham leads Howard Barnett 53.4-30.3 percent.

Corporation Commissioner Bob Anthony leads challenger Cody Graves 55.7-31.5 percent.

Measuring sentiment on the controversial attack on Insurance Commissioner Kim Holland, the poll asked about the influence of outside interest groups. The results: Take into consideration - 12.6 percent; Listen, but no impact - 37.3 percent; Don't like - 39.4 percent; Unsure - 10 percent.

Margin of error was placed at +/-3.59 percent, with 744 interviews.For Dr. Keith Gaddie's insight into the "back-of-the-poll" numbers, go to www.tailgatepolitics.blogspot.com.

Oklahoma Poll: Henry 68%, Istook 24%

(Originally posted Sunday 10/29/06) The latest poll results couldn't be much worse for Republican Ernest Istook, who seeks to unseat incumbent Governor Brad Henry.

The new "Oklahoma Poll" conducted by SoonerPoll.com for the Tulsa World and KOTV-Channel 6 found Henry at 68.4 percent and Istook at just 24.7 percent with only about 7 percent saying they don't know for whom they'll vote.

The new poll, conducted of 500 voters October 19-23 with a margin of error of +/-4.19%, shows the widest gap between the two candidates thus far. In earlier polls, Henry enjoyed a lead of about 2-to-1.

The poll found Henry's approval rating at its highest point yet: 80.2 percent, a stunning number. Istook's approval rating was 36.7 percent, disapproval 38.4 percent. As poll consultant Al Soltow of the University of Tulsa told the World, only a catastrophe could prevent a huge Henry victory on November 7th.

Henry won the governor's office in 2002 with an upset victory over Republican front-runner Steve Largent and Independent Gary Richardson. He got only about 43 percent of the vote. He now appears poised to win not by just a plurality, but by a number of landslide proportions.

McMahan Reports $86,353 8/8-10/23

Auditor & Inspector Jeff McMahan added $86,353 to his campaign from August 8th to October 23rd, his latest CR1 finance report filed with the Oklahoma Ethics Commission shows.

Among the donors are numerous abstractors and office employees; they have been among McMahan's most prevelant donors in his past reports.

Listed as last-minute donors on a new CR4 filing are Wilbur Smith, president of Pre-Paid Legal of Ada, $500; Harland Stonecipher, Pre-Paid Legal's CEO, $500; Norman attorney Ken McBride, $500; and the AFL-CIO PAC, which gave $3,000.

Jones Spends $60,000 To Air McMahan 'Can't Count' Videotape From Phipps' Christmas Party

UPDATE: Gary Jones put $60,000 of his own money into his campaign to finance his final week of television advertising, a just-filed CR4 campaign finance reports shows. Jones reported his campaign received $63,500 in the past 24 hours; Larry Nichols, CEO of Devon Energy, donated $2,500 and the Edmond Republican Women's Club donated $1,000.

Jones told KTOK radio talk show host Gwin Faulconer Lippert Sunday night that the videotape of Jeff McMahan was taken during a Christmas party hosted by Oklahoma abstractor Steve Phipps. He said McMahan was hypnotized as part of the evening's entertainment. He said he was given the videotape by an anonymous source.

KTOK subsequently reported that the man who hypnotized McMahan was angry about the videotape and threatening legal action, although what that might be was unspecified.

(Originally posted at 5:58 a.m. Saturday, 10/28/06) Republican Gary Jones opened his television advertising campaign Saturday with a spot that says incumbent Auditor & Inspector Jeff McMahan (left) can't even count to 10. The television commercial shows McMahan using his fingers to count to 10 and he omits "6."

The television commercial was posted at midnight on Jones' website.

In the video, McMahan stands with a woman holding a microphone; what appears to be a Christmas tree is in the background. McMahan has his hands out in front of him and counts "1, 2, 3, 4, 5, 7, 8, 9, 10."

"Where was 6?" writing on the screen asks. The commercial suggests McMahan has no "accounting skills" even though as auditor, he's supposed to account for funds in numerous entities.

The Jones-McMahan race is a repeat of four years ago, when McMahan narrowly defeated Jones. Controversy over McMahan this year has included allegations from a former Tulsa office manager that she was fired for not supporting McMahan in 2002 and a second worker who joined the first in saying the Tulsa auditor's office was turned into an adjunct campaign office for McMahan four years ago.

Jones apparently loaned his campaign the money to place the commercial on television stations. He refuses to accept donations from abstractors, who are regulated by the auditor & inspector. As a result, Jones has raised only a small percentage of the sum McMahan, who has taken tens of thousands of dollars from abstractors, has raised.

Reneau Reports $4,500 In Late Contributions

Labor Commissioner Brenda Reneau's campaign reports she raised $4,500 last week. A CR4 form filed with the Ethics Commission shows $500 came from an executive with Vox Printing, $1,000 came from the Associated General Contractors Political Action Committee and $3,000 came in three donations from executives of Bridgeport Holdings LLC of Oklahoma City.

Holland Refused Donation From Jones' Wife

State Insurance Commissioner Kim Holland told The McCarville Report Online Monday that she refused to accept a $2,500 campaign donation from the wife of Enid attorney Stephen Jones.

Holland was asked about the donation because Jones, in an email to TMRO last week, wrote, "incidentally, my wife gave $2,500 to Kim Holland's campaign months ago." Our examination of Holland's campaign finance reports did not show a donation from a member of the Jones family.

Holland said the check was presented to her by "a third party" last May and she declined to accept it because, "I didn't want to take a donation tied up with folks involved in (former Commissioner Carroll) Fisher's problems."

Jones represented Tulsa businessman Gene E. Phillips in the Fisher scandal. More recently, he represented Philllips' son, Bradford A. Phillips, in an examination of an insurance company by the Oklahoma Insurance Department. For details, see our previous stories.

Jones, two out-of-state "of counsel" attorneys to his firm, and a Bartlesville woman he represented in a 2005 divorce action, have donated $39,000 this election cycle to just two candidates, $19,000 to Republican insurance commissioner nominee Bill Case and $20,000 to Oklahoma County judicial candidate Bill Graves. See our story below for details. Jones himself has made multiple other donations, including $1,500 to Democrat David Prater, who seeks to unseat Oklahoma County District Attorney Wes Lane.

Holland said she refused a second donation, this one from a person in Florida, who also had involvement in the Fisher scandal.

Hastert-Fallin Event Closed To News Media

A fundraising event for Lt. Governor Mary Fallin, 5th District congressional candidate, featuring U. S. House Speaker Dennis Hastert in Oklahoma City Monday morning was closed to the news media and Hastert refused to meet with reporters.

Hastert, under fire in the congressional page scandal, had been scheduled for the event before the page scandal erupted.

Congressman Ernest Istook apparently did not attend the Hastert event.

Insurance Agents Endorse Holland, Others

The Independent Insurance Agents of Oklahoma (IIAO), the state’s largest insurance and property casualty agents association, has endorsed incumbent Commissioner Kim Holland in her campaign for a full term as State Insurance Commissioner. Holland, a Democrat, was appointed in 2005 by Governor Brad Henry to fill the unexpired term of former Commissioner Carroll Fisher.

“We’re honored to endorse Commissioner Holland in her campaign for a full term,” said Bruce Magill, IIAO Chairman. “Commissioner Holland has restored honesty and integrity to the Insurance Commissioner’s position at a time when it was desperately needed. She has been extremely open to our concerns, has met on a regular basis with IIAO leadership to discuss regulatory issues and has assisted IIAO members to further identify issues that can improve the insurance-related services they provide to Oklahomans.”

During the 2006 legislative session, IIAO and the Oklahoma Insurance Department worked together to ensure approval of several important insurance industry reforms including passage of a surplus lines law and a pilot program to identify steps to reduce the number of uninsured drivers on Oklahoma roads and highways.

IIAO also announced legislative endorsements in eight state senate and 27 state house seats. Candidates endorsed answered an IIAO survey and interviewed with association officials.

Candidates (incumbents noted) receiving IIAO endorsement are:

SD#2 – Ami Shaffer SD#12 – Rep. Brian Bingman SD#18 – Mark Wofford SD#22 – Sen. Mike Johnson SD#24 – Anthony Sykes SD#26 – Todd Russ SD#38 – Sen. Mike Schulz SD#40 – Sen. Cliff Branan

HD#10 – Rep. Steve Martin HD#14 – George Faught HD#23 – Rep. Sue Tibbs HD#25 – Todd Thomsen HD#26 – Rep. Kris Steele HD#29 – Skye McNiel HD#32 – Rep. Danny Morgan HD#33 – Rep. Lee Denney HD#37 – Stan Paynter HD#40 – Rep. Mike Jackson HD#41 – John Enns HD#45 – Rep. Thad Balkman HD#46 – Scott Martin HD#49 – Rep. Terry Hyman HD#50 – Dennis Johnson HD#53 – Rep. Randy Terrill HD#59 – Rep. Rob Johnson HD#62 – T.W. Shannon HD#69 – Fred Jordan HD#70 – Rep. Ron Peters HD#77 – Rep. Mark Liotta HD#80 – Rep. Ron Peterson HD#83 – Randy McDaniel HD#85 – David Dank HD#87 – Rep. Trebor Worthen HD#94 – Rex Barrett HD#95 – Charlie Joyner HD#96 – Rep. Lance Cargill

Legislators, without general election opponents, received a commendation from IIAO for their excellent work during the 2006 session relating to matters of importance to independent insurance agents. They are Rep. Lucky Lamons, Rep. Mike Shelton, Rep. Wayne Rousselot and Rep. John Carey. Due to the importance of workers’ compensation and its impact on Oklahoma’s economy and the insurance system, IIAO also endorses Labor Commissioner Brenda Reneau for re-election.

Tulsa Today: McMahan May Face Can

By David Arnett, Publisher, Tulsa Today ~ If anyone needs proof that 100 years of one-party rule in Oklahoma is a ticket for corruption, Jeff McMahan’s run for reelection as Oklahoma State Auditor and Inspector appears to be the outstanding example – so outstanding that the Federal Bureau of Investigation (FBI) may soon forward charges comparable to those proven against former state legislator Gene Stipe. (For Arnett's complete story, click on "Tulsa Today" above.)

McAlester News-Capital: Mass FEC Fine Paid By Steve Phipps-Gene Stipe Abstract Company

Follow the Money

By James Beaty, Senior Editor, McAlester News-Capital

A federal court affidavit filed by the FBI shows the Pushmataha County Abstract Company issued a $30,000 check to District 17 state Rep. Mike Mass, D-Hartshorne, on Nov. 5, 2003.

The $30,000 check came from the abstract company’s escrow account.

A few days later, Mass signed a conciliatory agreement with the Federal Election Commission requiring him to pay a $30,000 civil penalty — the exact amount of the check issued to him through the abstract company’s account.

Mass agreed to pay the $30,000 penalty for assisting former state Sen. Gene Stipe in funneling illegal contributions into Walt Roberts’ 1998 Congressional campaign, according to FEC records.

The Pushmataha County Abstract Co. is owned by Phipps Enterprises Inc. Pittsburg County District Court records identify Phipps and Stipe as partners in Phipps Enterprises Inc., and Corporate Finance Group.

The purpose of the $30,000 check from the abstract company’s escrow account to Mass in 2003 is recorded as being for a real estate closing, the FBI affidavit states.

The FBI has been unable to find any evidence of a real estate transaction involving Mass during that time period, according to the affidavit filed by FBI Special Agent Gary Graff.

However, the FBI did cite records that as a state legislator, Mass allocated a total of $1,490,667 of his special projects money that ultimately went to Phipps’ business interests for fiscal years 2003 to 2005.

Meanwhile, a flurry of legal motions have been filed in Pittsburg County District Court in connection with Stipe’s lawsuit against Phipps, Steve Phipps Enterprises Inc. and the Corporate Finance Group, Inc.

Stipe filed the lawsuit in July 2005 seeking to dissolve a business partnership with Phipps and seeking hundreds of thousands dollars in payments and damages.

Lawyers representing all the parties met in Pittsburg County Associate District Judge James Bland’s Courtroom on Thursday — with several issues now set to be heard in November.

In court filings, Stipe’s attorneys ask that a receiver be appointed to dissolve the partnership between Stipe and Phipps.

Stipe’s attorneys referred to the $30,000 paid to Mass from the Pushmataha County Abstract Company’s escrow account and noted that the matter is being investigated by the FBI.

In response, Phipps attorney Mike Miller has filed a sworn affidavit from Stipe’s former longtime assistant Charlene Spears.

In the statement, Spears said she worked as Stipe’s assistant for more than 20 years, including the time period from January 2002 until 2004.

“I am aware that Stipe had or claimed to have an interest in both Phipps Enterprises Inc. and Corporate Financing Group Inc.,” she said in the affidavit.

Spears said Stipe and Phipps each owned a quarter interest in an entity known as American Project Development, created to identify and facilitate capital improvement projects. Spears said she and Mass were among the 10 percent owners.

Spears also said Stipe and his accountant were provided monthly general ledgers regarding the finances of Phipps Enterprises, CFG and American Projects Development.

“In 2003, Mr. Stipe expressed a desire to help Mike Mass pay the fine that had been levied against Mass by the Federal Election Commission,” said Spears, who also pleaded guilty to charges in connection with the Roberts campaign.

“I am aware that Mr. Stipe directed that a payment of $30,000 be paid from funds due Stipe from either CFG or PEI (Phipps Enterprises Inc.) to facilitate the payment of the fine assessed against Mr. Mass,” Spears said in her sworn court affidavit.

Stipe could not be reached for comment before press time.

Stipe’s attorneys have not yet responded to Spears’ affidavit, but did refer to the FBI investigation of Phipps Enterprises Inc, and the $30,000 payment to Mass from the abstract company.

“These allegations, submitted through extensive sworn testimony of a federal agent, of improper use of funds of Pushmataha County Abstract Company, Phipps Enterprises and potentially CFG, as well, reinforce the necessity of appointing a receiver in this case to protect the interests of Stipe in the venture, and holding companies,” Stipe’s lawyers said in a statement signed by attorney Stacie L. Hixon.

“Further the investigation obviously creates a risk that the government itself may eventually seize the assets of Phipps Enterprises or some of its holdings, including the abstract companies.”

Appointment of a receiver appears to best way to protect the interests of those involved until the case is resolved, Hixon said in court documents.

The FBI affidavit stated that a $30,000 check from CFG had been signed by Larry Witt and made payable to Phipps Enterprises on Oct. 31, 2003. The check was endorsed by Phipps and deposited in the Pushmataha County Abstract Company escrow account on Nov. 5, 2003 — the same day it was made payable to Mass, the affidavit states.

An interesting source of information, and speculation, about Phipps and Stipe is the local blog, "McAlester WaterCooler."

Holland Attack Linked To Stephen Jones Associate; New Jones Connection To Maximum Donor Found

(Originally posted at 7:52 a.m. Saturday, 10/28/06) A television station's public file shows that an attorney who is "of counsel" to Enid insurance company attorney and prominent Republican Stephen Jones provided a script of a commercial attacking Insurance Commissioner Kim Holland.

Attorney Jill Graham (left, shown with her husband in their engagement photo) of Goodyear, Arizona, emailed the script to Oklahoma City advertising company owner Kirk Shelley of Shelley Strategic Services on October 19th, the public file at KFOR-Channel 4 shows.

Graham was identified by The McCarville Report Online earlier this week as a $5,000 donor to Holland's opponent, Republican Bill Case. She, Jones and another out-of-state "of counsel" attorney, Deanna Juhl of Mountain Home, Idaho, gave Case a total of $14,000. Neither woman listed her affiliation to Jones' law firm on Case's reports to the Oklahoma Ethics Commission.

And TMRO has found yet another direction connection to Jones from a maximum donor to Case. In 2005, Jones represented Terry Gann Holmes of Enid in her divorce action against husband Bobby D. Holmes, Garfield County court records show. Today, Holmes is a counselor at Jane Phillips Elementary School in Bartlesville. When she donated $5,000 to Case on June 9th, she used the name Terry Gann Holmes, identified herself as an "educator" at "Jane Phillips Elementary" and listed a Bartlesville post office box number for her address. When she donated $5,000 on June 22nd to Oklahoma County judicial candidate Bill Graves, former state representative, she listed her name as Terry A. Gann, gave her occupation as "Assistant Principal" and her place of employment as "Jane Phillips Elementary School" and used a Bartlesville street address, Ethics Commission records show. The school's website lists her as a counselor. She did not respond to our request for an explanation about the differences in the listings.

Graham and Juhl also donated $5,000 to Graves. So did Sherral Jones of Enid.

When the revelation of the connections to his firm was made, Jones reacted indignantly to the suggestion there was any connection to the donations, the secret front group "Just The Facts America" of Austin, Texas, and the Holland attack (see story below). Contacted by reporter Nolan Clay of The Oklahoman, who found the email linking Graham to the Holland attack, Jones had no comment. Graham told Clay she isn't "authorized to discuss any client matters with you...."

The Jones law firm has been connected to Texas businessman Gene E. Phillips and his son, Bradford, owner of Liberty Bankers Insurance and other firms. The Phillips name became known here in the scandal that toppled former Insurance Commissioner Carroll Fisher. Jones denied earlier this week that there's any involvement on the part of Bradford Phillips and his company with JTFA (see story below).

Holland told The Oklahoman she doesn't know for certain if (Gene) Phillips is behind the attack on her: "We know the ties. It rather speaks for itself," she said. And Holland revealed that she has upset Gene and Brad Phillips because she has worked to restrict risky real-estate related investments made by his insurance companies. TMRO, meanwhile, learned from multiple sources that Holland's agency conducted a lengthy examination of the practices of a Brad Phillips company and while the exam found no major problems, Jones and Phillips reportedly were angry, first because the exam was conducted and second, because the exam was lengthy and exhaustive.

The revelation that Jones' associate, Graham, is involved in the Holland attack follows the disclosure, by TMRO, that the man orchestrating the attack is controversial Mike Dubke, president of Americans For Job Security of Alexandria, VA. Dubke made the initial television buy through his Crossroads Media, located in the AJS office. A second television buy obviously employed Shelley as the agency of record.

When the controversy over the attack erupted, Shelley emailed TMRO's Mike McCarville numerous times about why companies want anonymity when they attack politicians; he never revealed his own connection to the attack and he described the attack commercial as "stupid."

Here are excerpts from several of Shelley emails to McCarville: "Why can't businesses go after incumbents who hurt their business? Because they could get hurt worse. I'm getting very tired of the do-gooders wondering who's funding ads. I'd like the media to actually ask -- is what the ads say true? So, what is a company to do? Well according to the do gooders -- nothing. They have to sit back and take it, Oklahoma suffers and incumbents get a free ride. I'm beginning to think that many so called journalists don't like analogous groups making major campaign donations is because it makes them look lazy -- which, alas many are. Let's look at Holland, this lady is an federal indictment waiting to happen, yet most of the major stories about her race is who's funding the ads, while she get's a free ride on her campaign contributions."

And from another Shelley email: "What is obvious to me is that the Holland attack ads are a response from some company that is being hurt by Holland. But, they can't do anything publicly because she can hurt them. If you want to get rid of the ads, the easiest way is to discuss what they are saying. In my years with Right to Work (which is a 501/c/4) we set it up to keep contributors anonymous. Simple reason, unions don't play nicely with their critics. Same with petty incumbents with power. As long as a 501/c/4 or 6 doesn't libel someone, they are operating legally and able to exercise their first amendment rights and get a message out. Thankfully, the truth is still a good defense. But don't be surprised if they are not going to stick their heads up and I don't blame them. BTW, from a political consultant standpoint, I think the ads are stupid. They don't give you enough information to make a good judgment, they are designed to sell the web site which isn't all that well done and is full of hyperbole. The best medium for the Holland message was really direct mail because it is so complicated. But I do give the group credit for trying."

Shelley also expressed curiosity about TMRO's original story about the donations of Jones, Graham and Juhl to Case.

Lane To Prater: 'Put up or shut up'

Oklahoma County District Attorney Wes Lane and his challenger, Democrat David Prater, faced off Sunday morning on KFOR-Channel 4's popular "Flash Point" show with Kevin Ogle, Burns Hargis and Mike Turpen.

Sparks flew as the two debated Lane's record and Prater's termination as an assistant in Lane's office.

Prater insisted figures that Lane uses to show success as a prosecutor are too high and he's not nearly as successful as he claims.

Lane produced a list of cases his office has tried and said to Prater, "Put up or shut up, David." He challenged Prater to provide a case-by-case list to prove his contention.

Prater said he was terminated because his wife, former KWTV-Channel 9 reporter Tamara Pratt, worked at the station when it "outed" stories about Lane's wife and substance abuse.

Lane fired back, saying there was no connection; he ripped Prater for bringing "our wives" into the debate. They, Lane said, are not involved and had nothing to do with the campaign.

The race has turned into one of the more interesting ones this year; one poll, now several weeks old, showed Lane with a 20 percent lead over Prater.

Istook Struggling For Cash?

It appears Congressman Ernest Istook's campaign is struggling to raise money in the home stretch of his bid to unseat incumbent Governor Brad Henry.

Already being outspent by a huge margin, Istook does not appear to be gaining any ground. His latest two CR4 (late contributions) filings with the Oklahoma Ethics Commission show that he's raised only $10,500 in large, reportable donations in the second half of the month.

One CR4 shows $10,000 in donations; a second shows just $500. Small donations do not have to reported until his next CR1 report, due at month's end.

Henry does not show any reportable sums raised in the same time period.

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You Go, Girl!

Lynne Cheney, wife of Vice President Dick Cheney, strongly criticized CNN Friday for its "Broken Government" series of specials in the run-up to the November mid-term elections and for its airing of tapes of snipers shooting American soldiers in Iraq.

Taylor Joins Bloomberg In Gun-Grabbing Move

Tulsa Mayor Kathy Taylor has become an active participant in the gun control efforts of New York City Mayor Michael Bloomberg. News accounts detail Taylor's participation in out-of-state events put together by Bloomberg's gun control coalition of mayors.Taylor was among mayors who attended the organizational meeting of the group at Gracie Mansion in New York. Remarkably, there's been little news coverage of her activist role in the Tulsa media.

Enid Law Firm Members Donate $14,000 To Case; Ethics Reports Don't Show Affiliation

(From this week's Archives 10/25/06) Three members of an Enid law firm that represents Texas insurance executive Bradford A. Phillips and previously represented his father, the controversial Gene E. Phillips, have donated $14,000 to the Republican nominee for state insurance commissioner, Bill Case, but you wouldn't know it by examining Case's Ethics Commission reports. Case seeks to unseat incumbent Commissioner Kim Holland, Democrat now under attack by a secret Texas group, "Just The Facts America."

Case's campaign finance reports on file with the Oklahoma Ethics Commission do not reveal the connections of two of the three donors to Enid attorney Stephen Jones' law firm. The connections were made by The McCarville Report Online using legal resources, directories, and a newspaper account of a criminal case in Altus.

Jones, who confirmed to TMRO that he represents Phillips and his Liberty Bankers Insurance Company, donated $5,000 to Case on May 26th. (A complete statement from Jones is included below, in this revised article.)

Two other Jones law firm associates who are donors to Case's campaign were identified by TMRO. They are:

Deanna Juhl ~ Juhl listed a Mountain Home, Idaho, address, Case's report shows, when she gave $4,000 on June 28th. Juhl is licensed by the Oklahoma Bar Association and has an Oklahoma telephone number. Her speciality is "insurance defense" in the Jones firm. Her listing on Case's report gives her occupation as "attorney" but does not list a company affiliation as required by Ethics Commission rules; "not given" is the notation on Case's report. A possible explanation for the Idaho address is that she could maintain a residence there.

Jill Graham ~ Graham listed a Goodyear, Arizona, address, Case's report shows, when she gave $4,000 on June 28th; she listed the same address when she donated another $1,000 on August 10th. Graham is licensed by the Oklahoma Bar Association and has an Oklahoma telephone number. Her initital OBA listing gives the Arizona address but lists her email address as "jgraham@stephenjoneslaw.com." Her listing on Case's report gives her occupation as "attorney" but does not list a company affiliation as required by Ethics Commission rules; "not given" is the notation on Case's report. Documents examined by TMRO show she registered with the OBA as Jill Juree Parker; she was married in Tulsa County in March 2005. In an Altus Times story, she is reported as acompanying Jones to a September 2005 hearing in a Jackson County criminal case. A possible explanation for the Arizona address is that she and her husband maintain a home there, while she has a home in Enid.

Jones said, on Wednesday morning, that the two attorneys are not employees of his firm. He said, "They are 'of counsel' (independent contractors). Deanna Juhl lives in Idaho married to an F15 pilot deploying to the Middle East. Jill Graham lives in Arizona, married to an F16 pilot who is a graduate of West Point."Jones also said that it is no secret the women are associated with his firm and argued that if they listed their affiliation as "of counsel" to his firm they'd have to list their similar affiliations with other firms.

Jones described this report as "inadequate, incomplete and rushed."

He added, "As previously outlined in an e-mail to you, Deanna Juhl and Jill Graham are independent contractors who work for me on an hourly basis. As such, they need not list an affiliation with my office to the Oklahoma Ethics Commission unless they list every other lawyer they are doing contract work for. So, your pronouncement, 'you wouldn’t know it,' is somewhat short of the mark. You suggest something is left out which is required. It is not."

"Same with your reference to a 'secret Texas group.' Secret? Why, Mike, it is publicly registered with the Texas Secretary of State and its principals are well known. Secret? How do you do it, Holmes? Mrs. Juhl and Mrs. Graham have been listed on my stationery and the front door of my office, they are listed on my web page, and in the Martindale-Hubbell Legal Directory. There is no secret of their past association with me, contrary to the implications of your report. However, when their husbands were transferred, their status changed from employee to independent contractor. Both women are married to military officers. Mrs. Juhl’s huband is a fighter pilot who flies the F-15 and is being deployed to the Middle East. Mrs. Graham’s husband is a West Point graduate and an Air Force officer with the rank of Captain. He is also a fighter pilot (F16). Ken and Deanna Juhl live in Idaho because that is where he is stationed. However, her legal residence is Illinois where she votes and has a driver’s license. She is also admitted to the Bar of three states. She does not have a 'home' or 'residence' in Oklahoma. Please correct the mis-impression you have left. When she is in Oklahoma, she either stays with friends or at the Vance Air Force Base visiting quarters. Likewise, Mrs. Graham maintains her residence with her husband in Arizona (though soon they will move to Utah). When she is in Enid or Oklahoma City, she stays with friends. Neither of these women maintain a permanent residence, home or apartment in Oklahoma. They come to Oklahoma as needed. Mrs. Juhl works primarily on insurance defense cases and last September assisted me in the Brian Watts murder trial in Alva. She entered an appearance in the case and appeared every day in court. Mrs. Graham’s work is primarily in criminal matters and she assisted me in the successful defense of Melinda Bautista in a murder case in Altus last spring. Again, she filed an entry of appearance, appeared in court, and her participation was well reported. I have more than two dozen insurance clients, and many are listed in the A.M. Best Guide to Insurance Attorneys. Less than one percent of my work or income is for the insurance companies associated with the 'Phillips Group.'

"You are certainly correct that Deanna, Jill and I contributed to Bill Case’s campaign. However, while you are throwing statistics around, I have contributed over $100,000 to Republican and Democratic candidates in Oklahoma and outside the state this year, so Case represents 5% of my personal contributions. Incidentally, my wife gave $2,500 to Kim Holland’s campaign months ago.

"It is true that Brad Phillips is one of four sons of Gene Phillips. Mr. Gene Phillips does not own any insurance companies. You are in error. He may have owned insurance companies in the past, but not in recent times. Worse for you, yet, is the fact that not only did he not own the company that donated the furniture, he was neither a director, shareholder nor employee. Please correct your statement. Moreover, 20 entities, including law firms, donated furniture. They relied upon written opinions by the State Auditor and General Services. That two years later the Governor did not accept the gifts does not mean they were illegal or inappropriate. While there may have been a 'scandal' involving Carroll Fisher which forced his resignation and conviction (though it is on appeal), those matters did not involve Gene Phillips or his companies and no charge has been filed against Gene Phillips or his companies. Your report on what Mr. Fisher did is superficial at best and woefully incomplete. Mr. Fisher initially turned down the 'Phillips Group' and awarded the application to the other bidder who failed to raise the financing and defaulted. The owner of American Reserve came to the 'Phillips Group' and asked them to resubmit the bid. This the 'Phillips Group' did. A full public and open evidentiary hearing was held and under the law, the OID was compelled to award the company to the 'Phillips Group' because (1) there was no other bid, (2) they met their burden of proof, (3) the OID counsel did not oppose it, and (4) the owners of American Reserve requested it. Fisher made a condition of the application that Mr. Gene Phillips not be involved in the day-to-day management, and he has not. The companies, according to A.M. Best reports, are significantly stronger today and no irregularity has been found in any examination or audit.

"As for your claim Gene Phillips is 'controversial,' I suppose he is, but so am I, and for that matter, so are you.

"I have previously answered your question concerning Brad Phillips. As I recall, you asked whether Brad Phillips or Liberty Bankers Insurance Company is involved 'in any way' in Just the Facts America, which you described as a 'mysterious Texas group attacking Holland.' As your own reporting shows, they are not 'mysterious,' you had no difficulty finding this organization which is publicly registered with Texas officials. And you, Mike, reported in detail the background of its founder, counsel and representatives. Nothing mysterious there. However, to answer your questions, for the second time, neither Brad Phillips nor Liberty Bankers Insurance Company is involved in any way in Just the Facts America."

The donations from Jones, Juhl and Graham represent almost 25 percent of the total $52,000-plus Case had raised as of his last report, when he had only $4,500 in cash on hand.

Controversial Americans For Job Security President Placed 'She' Anti-Holland Commercials; Document Shows He's Advertising Agency 'Partner'

(From this week's Archives 10/26/06) The president of the controversial Americans For Job Security, Mike Dubke, has been indentified by The McCarville Report Online as the man leading the $250,000 attack on State Insurance Commissioner Kim Holland.

TMRO learned that the television commercials attacking Holland were placed by Dubke, a conservative Republican power broker who routinely launches attacks on Democrats, and sometimes moderate Republicans, in election years from his suburban Washington office in Olde Town Alexandria, Virginia.

The commercials were placed through Crossroads Media, located at the same address as AJS. Dubke, over the last five years operating as an advertising agency, has placed attack radio and television commercials in races all over the country. He has been investigated, threatened and described as a "political jackal" because he represents groups that don't disclose the sources of their money. He says that is deliberate, because keeping the sources secret means the debate is on his targets rather than his donors.

AJS is located in Suite 555 at 66 Canal Center Plaza in Alexandria, VA. Crossroads Media, listed in Oklahoma television station documents as the agency on the anti-Holland commercials, is located in Suite 555 at 66 Canal Center Plaza in Alexandria, VA. A Federal Election Commission document located by TMRO lists Dubke as "Crossroads Media/Partner."

The television commercial attacking Holland contains a "header" that viewers do not see; the header TMRO obtained confirms the run time, client, code and content name of the commercial for the television station's sales department and producers who ensure it airs at the proper time. The header on the Holland attack commercial reads: "Client: JTFA - Title: SHE - 10.12.06 - Code: JTFA101206."

AJS was formed, as previously reported by TMRO, with a $1 million donation from the American Insurance Association, now headed by former Montana Governor Marc Racicot. Here's what the site "Direct Democracy" reported about AJS: "And where does AJS money come from? We don't really know, though there are hints. AJS began with a $1 million donation from the American Insurance Industry." Here's what opensecrets.org reports about the group: "AJS has been closely linked with the insurance and health care industries."

Also associated with AJS, and a longtime personal and professional associate of Racicot, is influential Washington attorney Benjamin L. Ginsberg of Patton Boggs; Ginsberg wrote letters in the Holland controversy to Oklahoma television stations and to the executive editor of The Oklahoman, who had protested the use of the newspaper's stories and headlines in the Holland attack commercial.

AJS is among many organizations that operate in secret; those who give it money are not publicly disclosed. It's the same with the front group attacking Holland, "Just The Facts America," an entity formed in Austin, Texas, by Republican activist James B. Cardle just 36 hours before the Holland attack was launched. JTFA, formed as a non-profit, 501(c)(6) organization, does not have to disclose the sources of its funding. Thus far, TMRO has been able to estimate, the group has spent about $175,000 to defeat Holland and likely will spend $250,000 by election day.

AJS was identified earlier this election year as the source of robo calls attacking Republican congressional candidates Denise Bode and Mary Fallin. Ironically, Fallin's own survey research firm, The Tarrance Group, was affiliated with AJS as recently as the last election cycle.

AJS has been described by many publications. The Texas Observer, following a contentious election in Texas two years ago, wrote this: "'We don’t know who is funding [Americans for Job Security],' notes Fred Lewis of Campaigns for People. 'Is it Chinese businessmen who want to outsource jobs to China? Here is the reason that disclosure is so important: The public is entitled to know if AJS is just a bunch of insurance companies.'

"Dubke understands that keeping the membership of AJS secret will be viewed as suspect. The group does it, he contends, to prevent the media, or voters for that matter, from making the messenger the message.

"'We figured we would take that knock and that’s a knock that we are willing to take,' he says. 'We feel that the fact that our issues are being spoken about, more so than one or two members, is much more important.' The calculation is an understandable one. No one has been willing to hound AJS for its work on behalf of faceless special interests in the systematic and sustained way AJS attacks candidates. It’s too bad, since if ever there was a case where the messenger is the message, this is it."

The involvement of AJS in Texas politics, attacking Republicans as well as Democrats, once prompted Travis County District Attorney Ronnie Earle to investigate, but it apparently was determined the group operated within the limits of the law, if not within what some consider political propriety.

Washington Monthly's Nicholas Confessore has studied AJS and similar groups and in a lengthy profile, wrote this: "...Americans for Job Security (is) located in a tidy brick building on the northern border of Alexandria's new white-collar sprawl. 'It's so much cheaper out here than being downtown,' says AJS's president, Michael Dubke, as he greets me at the front door and leads me into a nondescript conference room. Like many of its neighbors, AJS is organized as a 501(c)(6), which is to say a not-for-profit 'business league' or trade organization. But as trade organizations go, it is rather unusual. Not only is the group's membership--several hundred individuals, corporations, and other trade organizations--secret, but by all appearances, the members don't share a particular line of business. Despite a budget of millions of dollars a year, AJS doesn't have the kind of public relations or policy staff that, say, the Chamber of Commerce does. In fact, Dubke, a cheerful, clean-cut 33-year-old with the rangy build of an ex-jock, is AJS's sole employee. The group has no Web site, puts out no policy briefs or press releases, and does no lobbying on the Hill.

"About the only thing that AJS does is buy television, radio, and newspaper advertisements--lots of them. This is a source of pride for Dubke. 'Ninety-five percent of the money that we take in membership [dues] is spent on our grassroots lobbying,' he tells me, like a discount carpet salesman bragging about his low overhead. 'We spend our money on product.'

"During the hotly contested 2000 race, widely regarded as a watershed election for issue advertising, AJS spent about $9 million on political ads. A chunk of the money went towards attacking Democratic presidential candidate Al Gore for his prescription-drug plan, with ads airing in such key media markets as Spokane, Wash., and Tampa, Fla. (All told, according to a study by the Brennan Center, AJS was the most active outside group supporting Bush in 2000.)

"But AJS didn't stick to the presidential race. It also spent millions of dollars on behalf of Republican candidates in closely-fought Senate races in Michigan, Nebraska, and Washington. During the midterm elections two years later, with Democratic control of the Senate at stake, AJS dumped another $7 million into advertising, again mostly in key races, notably Minnesota's.

"Traditional 501(c) groups run ads on a narrow set of issues important to their members. This year, for instance, the NRA might run ads attacking candidates who support extending the ban on assault weapons, while the Sierra Club might air spots against candidates who support drilling in the Arctic National Wildlife Refuge. AJS, by contrast, is more catholic in its interests. During the last two election cycles, the group's campaign ads have addressed taxes, education, tort reform, prescription drugs, immigration, dam removal in the Pacific Northwest, even federal regulation of drinking water--'basically anything we label a 'pro-paycheck' message,' Dubke remarks.

"Much like a political party, AJS only seems to lurch into action at election time, even if one of its many core issues is being debated in Congress at some other time. Traditional Washington trade associations expend most of their resources trying to affect the legislative process, but Dubke sees this as a waste of time. 'Our main purpose is to get these public policy issues out into the debate,' he told me. 'I have yet to have somebody tell me when is a better time to talk about public policy issues' than during campaign season.

"Aside from timing, about the only thing AJS's ads have in common is that nearly all of them attack Democrats, usually those in tight races.

"And although groups running 'issue ads' are not supposed to coordinate with candidates, in at least some cases AJS appeared to do just that. During 2000, for example, AJS launched a massive ad campaign in support of embattled incumbent Sen. Spencer Abraham (R-Mich.). As Newsweek reported that year, funding for the ads came from the tech industry, which cut checks to AJS at the request of then-Senate Majority Leader, Trent Lott (R-Miss.), Abraham's mentor. In 2002, the group ran ads in Alaska, where incumbent Republican Sen. Frank Murkowski was in a tight race with the state's Democratic lieutenant governor. According to published reports at the time, AJS's ads followed a conference with Murkowksi's political consultant and used the same themes that Murkowski's own campaign was employing."

There are indications today that the actitivies of AJS may, once again, call attention to its 501(c)(6) status with the Internal Revenue Service. TMRO is told that two attorneys are examining its role in Oklahoma politics this year. The section of the IRS code that deals with such "business leagues" gives them tax-exempt status and allows dues as tax-deductible business expenses, "but not the portion of dues that the business league uses for lobbying and political purposes," Public Citizen's Congress Watch reported. "...they may not be primarily engaged in efforts to affect the outcomes of elections," it states. AJS has been cited by a New Stealth PACs study as among those groups that "may have violated the terms of their 501(c) status." That statement is based on the study's conclusion that the group's election-related activities raised questions "as to whether they violated the terms of their tax status."

FBI Found $125,000 In Cash In Phipps' Safe

A Federal Bureau of Investigation agent found $125,000 in cash in a safe owned by southeastern Oklahoma abstractor and businessman Steve Phipps last January, a federal court affidavit reveals.

The same 42-page affidavit, the contents of which were first reported by The Oklahoman, confirmed an FBI probe of Phipps, State Rep. Mike Mass and former State Reps. Jerry Hefner and Randall Erwin.

Special Agent Gary W. Graff reported that on January 26th, Special Agent James Dawson served a search warrant at Phipps' home in Kiowa and during the search, found a safe in the hallway coat closet of the main floor. He reported Dawson opened the safe and found $125,000 in cash.

"Phipps informed SA Dawson that the cash was income, and that Phipps had paid all relevant taxes. As the seizure of cash was not addressed in the affidavit supporting the search warrant, the cash was not seized and was left in the safe at the Phipps residence," Graff wrote.

A federal grand jury has been probing Phipps, who was an abstract company business partner of former State Senator Gene Stipe. The FBI affidavit says Phipps' Rural Development Foundation appears to have been a conduit through which state money routed to it by the three legislators flowed to other Phipps enterprises.

Phipps also has been tied to State Auditor & Inspector Jeff McMahan. Phipps and Stipe have been described as "fund-raising machines" for McMahan in his 2002 campaign. Stipe, his associates and Phipps and abstract company employees poured tens of thousands of dollars into McMahan's campaign in 2002, and abstractors have continued this election cycle, donating a huge part of McMahan's total donations. The auditor & inspector licenses and regulates abstractors.

Phipps, an associate who has been interviewed by the FBI confirmed to TMRO, often bragged about his personal friendship with McMahan. McMahan has confirmed to radio station KTOK that he has been interviewed by the FBI and said he is not under investigation himself.

Barnett Demands Meacham Pull 'False' Ads

State Treasurer candidate Howard Barnett (right) demanded Friday that his opponent, incumbent Democrat Scott Meacham, withdraw two advertisements which, Barnett says, make false claims concerning his record.

“Put simply, these ads are not distortions or even manipulations of the facts. They are total misrepresentations of the truth,” Barnett said. In his letter to Meacham, Barnett outlines the false claims made by his opponent and the facts surrounding the issues.

“In one instance, my opponent tries to tie together two unrelated events that took place nine months apart,” Barnett explained. “In another, he misrepresents the proposal of a bipartisan panel and attempts to attribute it solely to me. The other points raised in the ads are as inaccurately presented, as well.”

Barnett said he believes voters should examine the records of candidates running for political office in order to make an informed decision.

“Voters should compare our records as they decide for whom they will vote. But to do that, they need accurate, truthful information” he said. “These ads are an inaccurate portrayal of my public service. In some cases, they are inaccurate accounts of history. These ads should be withdrawn immediately.

“Should he choose not to withdraw the ads, he will have proven only one thing: Scott Meacham will say anything to win an election," Barnett said.

SoonerPoll Shows Democrats Lead In Five Key Oklahoma State Senate Races; Coffee Protests

A Special Report By Dr. Keith Gaddie (Upated By Mike McCarville) ~ The Tulsa World and KOTV-Channel 6 have released the results of the latest SoonerPoll.com, conducted by Shapard Research of Oklahoma City. The results show Democrats leading in the five Senate races considered key to Republican efforts to take control of the Senate this year. Polling was conducted October 18-21.

SoonerPoll.com contacted leading Democrats and Republicans and political observers to identify the five races deemed most competitive. In all five, Democrats lead by fairly sizeable margins, indicating a big year for Democrats should these numbers hold.

Senate Minority Leader Glenn Coffee said the polls are "old news."

The results, with the margin of error calculated at +/-5.3 percent, with 335 interviews:

Senate District 2, Democrat Sean Burrage versus Republican Amy Shaffer. Democrat 48.7%, Republican 39.2%, Undecided 12.2%. The Oklahoman endorsed Shaffer on Friday morning.

Senate District 12, Democrat John Mark Young versus Republican Brian Bingman. Democrat 46.7%, Republican 38.9%, Undecided 14.7%. The Tulsa World and The Oklahoman have endorsed Bingman.

Senate District 16, Democrat John Sparks versus Republican Ron Davis. Democrat 51.7%, Republican 37.7%, Undecided 13.0%.

Senate District 18, Democrat Senator Mary Easley versus Republican Mark Wofford. Democrat 49.5%, Republican 37.7%, Undecided 12.9%.

Senate District 26, Democrat Tom Ivester versus Republican Todd Russ. Democrat 56.5%, Republican 31.5%, Undecided 12%.

From the World: "The undecided numbers do seem like a lot," said poll consultant Al Soltow, vice president for research at the University of Tulsa. "Two weeks out from the election, they range from 12 percent to 16 percent. The question I have is, how many of those who say they're undecided at this late date will vote at all?"

Coffee said the polls are "old news" and do not reflect GOP momentum in several key state Senate races. "Attack ads launched this week by an East Coast liberal group (The Democrat Legislative Campaign Committee/DLCC) proves that Democrats are worried about losing their majority in the Oklahoma Senate," he said. "These polls are old news - about 10 days old, in fact. They don't reflect the current reality on the ground, which is that Republicans have gained momentum in our key races," Coffee said.

"Our plan is to win three or more seats on election day, not to be ahead in a newspaper poll taken three weeks before the election. I strongly believe that our strategy is working, and that voters in these districts are on track to make history by electing the first-ever Republican majority in the state Senate," he said.

Coffee questioned why the Tulsa World did not release polling data for Senate District 24, where one of the Democrats' most vulnerable incumbents, Daisy Lawler, is in big trouble in her race against Republican challenger Anthony Sykes.

"Daisy Lawler and her liberal East Coast friends from the DLCC are already spending tens of thousands of dollars on attack ads to prop up Daisy's failing campaign. This is evidence that Daisy Lawler is in huge trouble in this conservative district, which doesn't like her liberal voting record - from giving in-state tuition and scholarships to illegal immigrants to voting to block an amendment to immediately eliminate the death tax," Coffee stated.

In Senate District 18, Coffee said an attack ad launched by incumbent Mary Easley and the DLCC is backfiring.

"We're seeing significant Democrat voters moving toward Republican Mark Wofford because of these misleading attacks. The Wofford campaign has already received dozens of calls of support from Democrat voters who can't believe that Mary Easley is attacking Wofford and fibbing about her own liberal record on illegal immigraton," Coffee said.

Coffee said that in Senate District 12, trial lawyer John Mark Young has stooped to attacking Brain Bingman's character, and is hiding from his own record as a trial lawyer of representing some of Creek County's worst criminals. "Democrats were caught off guard by U.S. Senator Tom Coburn's TV ad supporting Republican Brian Bingman, so now the Young campaign has brought in a group of Washington, DC, liberals backed by Hillary Clinton and Howard Dean to falsely attack Brian Bingman's character," Coffee said.

In Senate District 2, trial Lawyer Sean Burrage is trying to hang on to a razor-thin lead that is shrinking daily, Coffee said. "Despite spending half-a-million dollars donated by power-hungry trial lawyers, Sean Burrage's campaign is gasping for air. He has spent a fortune on TV ads, yet our internal polling shows he hasn't moved an inch in weeks and is actually losing ground to Republican Ami Shaffer," Coffee said. "Ami Shaffer has soundly defeated Sean Burrage in every debate, and the average Democrat voter is shifting away from Burrage, who is the powerful politicians' choice, and moving toward the people's choice, Ami Shaffer."

Coffee said there is also an indication that Republicans are picking up momentum in several other Democrat-held districts: Senate District 26, where Republican Todd Russ is facing trial lawyer Tom Ivester; Senate District 16, where Republican Ron Davis is running against liberal John Sparks; and Senate District 32, where Democrat incumbent Randy Bass is being challenged by Lt. Col. (ret.) Ed Petersen.

Owen Shackelford, executive director of Oklahoma State Senate Democrats, responded, "I find it interesting that while Senator Coffee questioned the legitimacy of the polling data released by the Tulsa World, he didn't question the truthfulness of the ads being aired by the DLCC. I guess he's conceded that what they say is correct. Glenn Coffee, Ernest Istook, and Todd Hiett are on the same sinking ship, and they'll do or say anything at this point to try and save themselves."

Pollster and pundit Dr. Keith Gaddie is a partner in TvPoll.com with Bill Shapard. He is the co-host of the "Tailgate Political Hour" on KTLR-890AM in Oklahoma City and is often quoted as an elections expert.

The Oklahoman Files Lawsuit Against JTFA

The Oklahoman has filed a federal lawsuit against the secretive Texas group "Just The Facts America," the newspaper revealed Friday. Austin Republican activist James B. Cardle (pictured) heads the group, which refuses to reveal its members or the source of its funding.

Reporter Nolan Clay included the lawsuit information in a story about the group, which is attacking Insurance Commissioner Kim Holland with a television commercial and website.

The Oklahoman complained about use of articles and its masthead two weeks ago when the television commercial first appeared. A slightly-altered version is now airing.

"A slightly different ad without the masthead has appeared after The Oklahoman complained and filed a federal lawsuit," Clay wrote. He quoted Sue Hale, executive editor, as saying, "The Oklahoman has sued Just The Facts America for trademark and copyright infringement. The suit is pending."

McMahan Goes Negative In First Commercials

State Auditor & Inspector Jeff McMahan has gone negative in his first campaign commercials in the Tulsa market, making claims about Republican nominee Gary Jones.

McMahan also has someone building an anti-Jones website. That McMahan opened his advertising with an attack on his challenger is an indication to some that McMahan knows he faces a stiff challenge from Jones, whom he narrowly defeated four years ago in their first matchup. Four years ago, Jones beat McMahan by 30,000 votes in Tulsa County.

The negative attack on Jones apparently began in Tulsa today, with claims that Jones has been a poor businessman. In Oklahoma City, McMahan began airing a positive spot that shows him shooting a shotgun, ostensibly shooting down "fraud."

Jones, we're told, will begin his television commercial ad campaign on Saturday.

Employees, Abstractors Continue McMahan Donations, Finance Reports Show

Employees of his office and abstractors he regulates continue to pour money into Auditor & Inspector Jeff McMahan's campaign, Ethics Commission documents show.

The McCarville Report Online's previous reports have detailed the substantial donations from office employees and abstractors and McMahan's latest campaign finance filing, an amended CR4 report listing late donations, shows he received another $20,757 from 22 donors, 10 of them employees or abstractors. Other CR4's add $1,750 from abstractors and employees.

Among the largest new donors listed is auditor Kelly Corbin of Pawhuska, who gave $1,000.

The largest donor listed is Norman attorney Richard Bell, who gave $2,000. Attorney Nicole Bell of Norman gave $1,000.

Istook Faces Poll Gauntlet

Congressman Ernest Istook faces a gauntlet of polls in the next five days that likely will show, as previous polls have, that Governor Brad Henry has a substantial lead over him with less than two weeks before voters cast their ballots.

Polls in the final days of elections often become "self-fulfilling prophecies" even if they don't agree on the percentages for each candidate. For a campaign waging a come-from-behind effort, such polls can take the wind out of volunteers, hamper fundraising, frustrate the candidate and his family and generally wreak havoc on the campaign.

If new polls that are due Sunday (Tulsa World/KOTV-Channel 6 "Oklahoma Poll") and Monday (TvPoll.com for KWTV-Channel 9) show Henry with anything like the latest SurveyUSA poll for KFOR-Channel 4, it could be a painful period for Istook. The SurveyUSA poll showed Henry at 64 percent, Istook at 32 percent.

It was a SurveyUSA poll four years ago in the governor's race that first spotted Henry's surge to victory.

Muskogee Phoenix Endorses Gary Jones

From the Muskogee Daily Phoenix: Gary Jones, the Republican candidate for state auditor and inspector, has a solid reputation and the background for running the auditor’s office efficiently and effectively.

This state has a problem with corruption, and the latest scandal ties a legislator and two former legislators to about $3 million in state rural development funds given to an Oklahoma businessman who allegedly rewarded the legislators with an interest in one of his companies.

Unfortunately, the name of the incumbent state auditor, Jeff McMahan, has come up in the investigation. McMahan was quoted in a newspaper report as saying, “I wish I’d never heard of Steve Phipps,” the businessman connected to the legislators under investigation.

According to reports, Phipps, who is in the abstracting business — among other enterprises — and other state abstractors donated about $150,000 to McMahan’s campaigns. There may be nothing to the donations, but these type of ties come up too much in state politics. We also do not need any suspicion on an office whose job is to uncover corruption. Again, McMahan has been aggressive at his job, but we have some reservations.

Jones has been a leader in his party and a successful businessman for years. He is a Certified Public Accountant and has earned distinction as a commissioner in Comanche County.

He will work just as hard as the state auditor.

Wofford Rips 'Secret' Ad Attack; Morgan Fires Back, Calls For Ethics Filing, 'Public Disclosure'

A group of East Coast liberals is trying to buy State Senate District 18 for incumbent Mary Easley with a misleading television attack ad launched Wednesday morning against State Senate candidate Mark Wofford of Wagoner, his campaign charged.

"This TV attack ad against Mark Wofford is deceptive and misleading, and it is a real indication that the East Coast liberals believe their friend Mary Easley is in big trouble," said State Senate Republican Leader Glenn Coffee.

"These liberals are so desperate to prop up Mary Easley's failing campaign that they're blaming Mark Wofford for votes in the Legislature before he has even been elected," Coffee said.

The group -- The Democrat Legislative Campaign Committee (DLCC) -- is supported by East Coast liberals like Hillary Clinton, Howard Dean, and John Kerry, Wofford's statement said. "This is the same shady organization that spent $300,000 on TV ads without disclosing the source of the funds during the special election for Senate District 38 last May. Oklahoma Senate President Pro Tem Mike Morgan, D-Stillwater, is part of the liberal group's national leadership," the statement added.

Morgan fired back, saying there's nothing secret about the DLCC. "The facts are clear. The DLCC did air television ads in support of our candidate in the recent special election in Senate District 38. And the DLCC began airing ads in two Senate races today. However, unlike their Republican counterpart- the RSLC- they complied with Oklahoma law and filed with the Oklahoma Ethics Commission. Despite spending thousands and thousands of dollars on direct mail in the special election, the RSLC has still not filed with the Oklahoma Ethics Commission. Clearly, they are breaking the law. "Sen. Coffee’s friends in Washington," Morgan continued, "have a reckless disregard for the law. I think it’s time that someone demands some accountability. The RSLC has already begun spending thousands of dollars on direct mail in the last two days. As of this moment, they still haven’t filed with the Oklahoma Ethics Commission. I think it’s time that they disclose just who is paying for these attack pieces."

"Small businessman and volunteer firefighter Mark Wofford has a message of new leadership and conservative values that is connecting with the voters of Senate District 18, while Mary Easley's liberal voting record on issues like illegal immigration is turning off voters," Coffee said. "Mary Easley and Mike Morgan are so desperate to hang on to power that they have brought in their liberal East Coast allies to help," he stated.

Tulsa World: DHS Worker Was Punished

OKLAHOMA CITY -- A Department of Human Services employee told a legislative committee Tuesday that he was punished for trying to report the names of illegal immigrants seeking public benefits from the state.

SurveyUSA: Henry 2-to-1, Askins Leads Hiett

A new SurveyUSA poll for KFOR-Channel 4 shows Governor Brad Henry leading Congressman Ernest Istook 2-to-1, 64-32 percent, with two weeks to election day.

The poll also found Democrat State Rep. Jari Askins leading Republican House Speaker Todd Hiett 52-42 percent in their race for lieutenant governor. Independent E. Z. Million had 2 percent and the undecided was at 3 percent.

Istook Raises Cash, But Lags Far Behind Henry

Congressman Ernest Istook is raising some campaign cash in the home stretch, but he still lags far behind the assets of Governor Brad Henry.

Ethics Commission CR4 reports show Istook has raised $18,000 in late, large donations, while Henry has reported none since July. Through July, Henry had raised $13,638 in late donations, his reports show.

Istook's problem is demonstrated in the cash on hand figures for both campaigns as of August 7th: Henry had $2.47 million, Istook had just $29,000.

Holland Files Fraud, Civil Conspiracy Lawsuit Against Rod Frates, Frates Insurance, Others

Insurance Commissioner Kim Holland has filed a multi-count lawsuit against prominent Oklahoma City business executive Rodman A. Frates, his company C. L. Frates and Company, and three others. The lawsuit, filed August 2nd in Oklahoma County District Court and unreported until now, accuses Frates of fraud, breach of contract, negligence, civil conspiracy, breach of fiduciary duty and unjust enrichment.

It accuses others named in the suit of professional negligence, civil conspiracy and allowing Hospital Casualty Company to sink into "deepening insolvency."

Efforts to have the lawsuit dismissed, court records show, have not been successful; a hearing is set for November 8th.

Whether the lawsuit figures in the attempt by the mysterious "Just The Facts America" to defeat Democrat Holland is unknown. JTFA launched its Internet-television commercial blitz against Holland 10 days ago, just 36 hours after the group was formed as a 501(c)(6) entity in Texas; as such, it does not have to disclose the names of its members or donors. The front man for JTFA, prominent Texas Republican activist James B. Cardle, has not responded to questions about his group. Benjamin L. Ginsberg, the high-powered Republican attorney in Washington who represents JTFA, also has not responded to questions.

The lawsuit, which could involve millions of dollars, names Holland as the receiver of Hospital Casualty Company and identifies the Frates Company, Frates, Madison Consulting Group, Terry Biscoglia and Grant Thornton as having been "entrusted to operate HCC and provide professional services to ensure its solvency and continued operation." The lawsuit alleges HCC instead became insolvent.

"From 1977 until 2004," the lawsuit alleges, "HCC provided hospitals and nursing homes in Oklahoma with professional liablity insurance. The Defendants were entrusted to operate HCC and provide professional services to ensure its solvency and continued operation. From investigation, the Receiver has discovered the insolvency of HCC and the deepening of the insolvency is the direct result of the failure, negligence, and fraud of the Defendants."

The lawsuit identifies Rodney "Rod" Frates as president and chief executive officer of C. L. Frates and Company and vice president of HCC. Madison Consulting Group of Georgia provided actuarial services to HCC. Biscoglia, from Georgia, is a professional actuary. Grant Thornton LLP, based in Illinois, was HCC's independent auditor.

C. L. Frates and Company manages insurance assets that approach $225 million, industry sources told The McCarville Report Online.

Here are the allegations leveled by Holland against each of the defendants:

C. L. FRATES AND COMPANY ~ Breach of contract, alleging the company failed to fulfill its contractual obligations.

C. L FRATES AND COMPANY AND RODMAN A. FRATES ~ Negligence, alleging the company and Frates "failed to comply with industry standards for managing an insurance company...." Breach of fiduciary duty, alleging the company and Frates failed "to ensure that HCC's policies (and especially policies covering nursing homes) were properly underwritten" and that the company and Frates "failed to follow Oklahoma laws regarding the regulation of insurance." Fraud, alleging that the company and Frates were in total control of HCC and "defrauded HCC by affirmative misrepresentations and material omissions." Preferential transfer, alleging the money Frates received from HCC should be recovered "for the benefit of the estate, its policyholders, and other creditors." Unjust enrichment, alleging the company and Frates "have in their possession funds which, in equity and good conscience, they should restore to HCC."

MADISON CONSULTING GROUP AND TERRY J. BISCOGLIA ~ Professional negligence, alleging that "HCC reserves and related actuarial values were not fairly stated...."

RODMAN A. FRATES AND TERRY J. BISCOGLIA ~ Civil conspiracy, alleging the two "conspired to ensure that HCC's loss and loss adjustment expense reserves were kept at a minimal level that HCC was able to fund. Rod Frates and Biscoglia furthered this conspiracy by manipulating the reserve ranges included in Biscoglia's actuarial reserve studies to allow HCC's posted reserves to fall with in Biscoglia's range of reserves."

GRANT THORNTON LLP ~ Professional negligence, alleging the firm failed to properly audit HCC and that, "For each of the years audited by Grant Thornton, HCC's financial statements were false and misleading with regards to the sufficiency of HCC's reserves for expected losses and loss adjustment expenses." Breach of contract, alleging the company failed to "complete the 2002 and 2003 audits of HCC's statutory financial statements and issue its audit reports thereon, (and thus) HCC violated Oklahoma law."

C. L. FRATES AND COMPANY, RODMAN A. FRATES, MADISON, BISCOGLIA AND GRANT THORNTON ~ Deepening insolvency, alleging that as a result of the acts and omissions of the defendants, HCC "existed in a state of near insolvency for at least the last five years before the Court imposed a receivership on it."

In each allegation, the lawsuit claims that HCC "suffered substantial damages in excess of $10,000." An attorney familiar with such litigation said the sums involved in such cases can reach into "the many, many millions."

Rod Frates is active in numerous civic groups and public causes, as is C. L. Frates and Company. His brother, attorney Kent Frates, is a former Republican member of the Oklahoma House of Representatives.

Tulsa World: Demo Leaders Question House Speaker-designate Lance Cargill's Expenditures

OKLAHOMA CITY - Democratic leaders are questioning why the Republican speaker-designate, Rep. Lance Cargill of Harrah, has spent so much of his campaign funds when his re-election is all but assured.

Cargill has spent $262,000. His Democratic opponent, Abe Warren of Harrah, had spent $58.50 as of Aug.10, when their last reports were filed with the State Ethics Commission.

For Nickles, Watts, Life After Congress Is Green

Former U. S. Senator Don Nickles and former Congressman J. C. Watts have something in common other than their previous Oklahoma public service: Both are now Washington lobbyists and their firms are raking in big bucks.

For Watts, who began his lobbying and business career after deciding not to seek reelection in 2002, his decision to form his own companies has been hugely, and immediately, rewarding. In 2005, the former congressman's six entities generated more than $25 million. Records, and Watts' own website, confirm that number. Under the umbrella of "J. C. Watts Companies," Watts also operates Watts Consulting Group, CLS Washington, Mustang Equipment, HR Empowerment and Winn Watts Development Group. J. C. Watts Companies is his "corporate holdings" entity; Watts Consulting Group specializes in "government and corporate relations," while CLS Washington is in the "engineering, construction and project management" business. Mustang Equipment handles "John Deere authorized equipment sales and service" and HR Empowerment specializes in "workforce diversity training." Winn Watts Development Group works on "affordable housing solutions." Watts' website says the parent company "is a multi-industry business headquartered in Washington, D. C. with operations in Oklahoma, Texas, Massachusetts, and Korea. We are a certified Minority Business Enterprise (MBE) by the National Minority Supplier Development Council."

Officials in Watts' businesses includes himself, as founder and chairman; Elroy Sailor as founder and chief executive officer; Jon Vandenheuvel as founder and president; Darin Carrington as chief financial officer; and Randy Evans as chairman of the board.

Watts' lobbying business, the Center for Responsive Politics reports, generated $1,750,000 last year. He took in about a million dollars in his first year, 2003, and about $1.6 million in 2004. His clients, and the sums they paid J. C. Watts Companies in 2005: Albany State University, $40,000; Benham Cos., $40,000; Black Farmers & Agriculturalists, $20,000; Black Television News Network, $50,000; Bowl Championship Series, $60,000; CompuCredit Corporation, $140,000; FM Policy Focus, $360,000; Gospel Communications, $60,000; Grambling State University, $20,000; John Deere Co., $120,000; Langston University, $20,000; Mississippi Valley State University, $40,000; NASCAR, $60,000; National Association of Insurance Commissioners, $200,000; Oklahoma Heart Hospital,$60,000; Robinson Aviation, $160,000; SBC Communications, $100,000; Syntroleum Corp., $60,000; Texas College, $40,000; United Keetoowah Band/Cherokee Indians, $40,000; US Virgin Island Military Museum and Veterans Memorial Complex, $60,000. Watts also is on the boards of director of numerous companies and is represented by the Washington Speakers Bureau.

Nickles' start in the lobbying business has been successful, more so in his first year than was Watts' start. Opensecrets.org reports that Nickles generated $3,720,000 in his first year in business. His clients, and the sums they paid The Nickles Group in 2005: American Hospital Association, $220,000; American International Group, $40,000; American Society of Anesthesiologists, $150,000; Apria Healthcare, $120,000; Bristol-Myers Squibb, $200,000; Charity Capital Funding Plan, $160,000; Cleveland Clinic, $180,000; Comcast Corp, $100,000; COMPETE, $270,000; General Electric, $230,000; General Motors, $270,000; Intellectual Ventures, $160,000; Invacare Corp., $170,000; Medtronic, Inc., $110,000; Multi-Employer Pension Alliance, $120,000; National Association of Home Builders, $160,000; National Marrow Donor Program, $180,000; Nestle USA, $100,000; Pfizer Inc., $120,000; Pharmaceutical Research and Manufacturers of America, $30,000; Vonage Holdings, $200,000; Wheelchair/Aqua Global/Health/Education Foundations, $160,000; YMCA of the USA, $170,000.

Those involved in The Nickles Group include Nickles, as chairman and chief executive officer; Stacey Hughes as partner; Hazen Marshall as partner; Cindi Merifield Tripodi as partner; Rachel Jones Hensler, vice president; and Brian Wild, vice president.

Henry, Istook Argue Over Killer's Clemency; Record Supports Henry's Contention, At Least In Part

Governor Brad Henry and Congressman Ernest Istook argued Monday night, in their televised meeting on KOCO-Channel 5, over Henry's 2004 action in granting clemency to death row inmate Osvaldo (also reported as "Osbaldo") Torres, and a check of Henry's statement at the time supports, at least in part, his contention, disputed by Istook, that the U. S. government asked Henry to consider clemency.

However, in their contentious discussion, the governor indicated it was the Justice Department that had contacted him; his news release of two-plus years ago says the government contact came from the U. S. State Department. Henry apparently was unprepared for the Istook comment on Torres and seemed uncertain, at first, how to respond.

Istook's campaign issued a broadside Tuesday in which it said, "The best Henry could come up with was to falsely state that 'The case that the Congressman cites, what actually happened is his own federal justice department asked us to step in….' That is wrong. The U.S. Department of Justice made no such request."

Here is the text of Henry's statement at the time: May 13, 2004, Oklahoma City – Gov. Brad Henry today commuted the death sentence of Osbaldo Torres to a sentence of life without the possibility of parole. The decision comes after the state Pardon and Parole Board voted May 7 to recommend clemency for Torres, a 29-year-old Mexican national. Torres had been convicted and sentenced to death for the 1993 murders of an Oklahoma City couple, Francisco Morales and Maria Yanez. Torres’ co-defendant, George Ochoa, was identified by an eyewitness as the actual gunman. Ochoa also received a death sentence. “My heart goes out to the family of Mr. Morales and Ms. Yanez. This was difficult decision, but I believe clemency is warranted by a number of issues involved in this case,” Gov. Henry said. He made his decision after a thorough review of the case that included meetings with prosecutors in the state Attorney General’s office, Torres’ appellate defense attorneys and relatives of the murder victims. “It is important to remember that the actual shooter in these horrific murders was also sentenced to death and faces execution,” Gov. Henry said. “Osbaldo Torres will spend the rest of his life behind bars for his role in this deplorable crime.” The Governor also noted that Torres had not been notified of his right to contact the consulate of his native Mexico to seek legal representation. Such rights are ensured under the 1963 Vienna Convention on Consular Relations. Signed by the U.S. in 1969, that treaty is also important in protecting the rights of American citizens abroad. The International Court of Justice ruled on March 31 that Torres’ rights were violated because he had not been told about his rights guaranteed by the 1963 Vienna Convention. Under agreements entered into by the United States, the ruling of the ICJ is binding on U.S. courts.“I took into account the fact that the U.S. signed the 1963 Vienna Convention and is part of that treaty,” the Governor said. “In addition, the U.S. State Department contacted my office and urged us to give ‘careful consideration’ to that fact.” Earlier today, Torres was granted a temporary stay of execution by the Oklahoma Court of Criminal Appeals. “Despite that stay, I felt it was important to announce the decision that I had made upon a careful and thorough review of the entire case,” Gov. Henry said. The Governor has denied the three other clemency recommendations he has received since taking office in January, 2003. Under state law, the Governor can only consider clemency if it is recommended by the Oklahoma Pardon and Parole Board.

Istook pounded Henry for what Istook said has been the parole of "1,500 drug dealers" since he's been governor. Henry said many of those paroles meant the inmates would be supervised upon release rather than being turned out on the streets without supervision in a short time.

Fallin To Campaign For State Senate Candidates

Lt. Governor Mary Fallin will head into State Senate Districts 2 and 18 on Wednesday to campaign for Republicans Ami Shaffer and Mark Wofford.

Fallin, who faces Dr. David Hunter for the 5th District seat in Congress, will campaign for the two Republicans, thought to be locked in close elections. Shaffer faces Democrat Sean Burrage and Wofford faces Senator Mary Easley.

Republicans view the two races as among five or six that are pivotal to their effort to take control of the Senate in the November 7th elections.

JTFA Attorney Tied To American Insurance Association President, Americans For Job Security

A Special Report By Mike McCarville ~ Washington attorney Benjamin L. Ginsberg's role as legal counsel for the mysterious Texas group "Just The Facts America" indicates JTFA's backers are among the nation's foremost Republican high rollers, and our inquiries show a surprising connection to a second group that's been involved in Oklahoma politics this year. Ginsberg also played a role in the controversial "Swift Boat Veterans For Truth" effort in the 2004 presidential election, a connection certain to be noted by Democrats, and, via other another connection we found, has a long-standing, personal, professional and direct connection to the president of the American Insurance Association.

First, the JTFA: It is the group behind the joint Internet-television commercial attack on Oklahoma Insurance Commissioner Kim Holland, a Democrat appointed by Governor Brad Henry and facing her first election campaign. JTFA's front man is Texas Republican James B. Cardle, a member of Texas Governor Rick's Perry's campaign steering committee and member of a health care services study in Texas five years ago. The attack includes allegations that Holland's taking donations from those in the insurance industry she regulates (true, her Oklahoma Ethics Commission reports show), that she's had herself reimbursed for mileage on her personal vehicle (apparently true, based on Office of State Finance documents, the argument being that she was fulfilling her duties on the trips), that she's used her staff to campaign on state time (this allegation is contained in a tort claim filed by her former executive administrative assistant earlier this month) and that she doesn't meet the educational level required for many OID employees (she's a high school graduate, while some OID positions require a college degree).

That JTFA is well-funded is obvious; records at Oklahoma television stations show the initial television commercial buy was about $150,000. Sources with whom TMRO talked say they expect the total expenditure will top $250,000 before the attacks are over. Because JTFA filed in Texas as a non-profit organization just 36 hours before the attack began, it is not required to disclose the names of those who are members, or the source of the group's funding. Thus, it is a secret entity.

Attorney General Drew Edmondson criticized the group, saying it has provided "no information as to who is paying the bills. The public has a right to know what interests in Texas want to elect a new insurance commissioner. Everyone has a constitutional right to free speech, but we have a right to pull them out of the darkness and into the sunshine of public disclosure."

Ginsberg's involvement in the controversy, revealed when he fired off letters to Oklahoma television stations and to the executive editor of The Oklahoman, Sue Hale, tweaked The McCarville Report Online's curiosity; Ginsberg is among Washington's most expensive, well-connected and influential lawyers. What's his interest in the Oklahoma insurance commissioner's race? we wondered.

Our search for information about Ginsberg's role in JTFA turned up a second connection to Oklahoma politics, a fresh one involving those controversial "robo-calls" in the Republican primary for Congress in the 5th District. And a third one that may tie directly to the attacks on Holland.

We've known of Ginsberg for years; he's a legal icon in Republican circles. One Washington consultant, asked about Ginsberg, said that retaining him requires "deep pockets and even deeper connections." And he warned: "Be careful. He's not some Oklahoma rube attorney."

From Wikipedia: "Benjamin L. Ginsberg, partner for Patton Boggs, LLP, represents numerous political parties, political campaigns, candidates, members of Congress and state legislatures, Governors, corporations, trade associations, vendors, donors and individuals participating in the political process.

"In the 2004 and 2000 election cycles, Ginsberg served as National Counsel to the Bush-Cheney presidential campaign. In 2000, he played a central role in the Florida recount. He also represents the campaigns and leadership PACs of numerous members of the Senate and House, as well as the Republican National Committee, National Republican Senatorial Committee and National Republican Congressional Committee. He serves as counsel to the Republican Governors Association and has wide experience on the state legislative level from directing Republican redistricting efforts nationwide following the 1990 Census and being actively engaged in the 2001-2002 round of redistricting.

"In 2004, Ginsberg gave legal advice to the famed 527 group Swift Boat Veterans for Truth. Though his simultaneous activities with the 'Swifties' and the 2004 Bush Campaign could be considered questionable, his activities were not illegal. Nonetheless, Ginsberg resigned as legal counsel from the Bush Campaign after his position was made public.

"He came to Patton Boggs in 1993 after serving for eight years as counsel to the Republican National Committee, the National Republican Senatorial Committee, and the National Republican Congressional Committee. Prior to entering law school, he spent five years as a newspaper reporter for The Boston Globe, Philadelphia Evening Bulletin, The Berkshire (Mass.) Eagle, and The Riverside (Calif.) Press-Enterprise.

"Ginsberg appears frequently on television commenting on law and politics. He is currently a Fellow at the Institute of Politics, Kennedy School of Government, Harvard University. He is well-known as having been a significant force behind the Republican Party's efforts to redistrict state congressional districts in favor of Republican candidates. Ginsberg has lovingly named his dog Gerrymander.

"Ginsberg is a 1974 graduate of the University of Pennsylvania. At Penn, he was very involved in the school's prestigious newspaper, The Daily Pennsylvanian, where he served as a reporter (1970-72), contributing editor (1972) and editor-in-chief (1973)."

Second, Americans For Job Security: Among Ginsberg's numerous connections is a tie to the group "Americans For Job Security." Remember that during the GOP 5th District primary, "robo-calls" from AJS were placed that attacked Corporation Commissioner Denise Bode and Lt. Governor Mary Fallin. The other four candidates in the primary race weren't mentioned, fueling speculation that one of them was behind the calls. The other candidates were State Rep. Kevin Calvey, Oklahoma City Mayor Mick Cornett, State Rep. Fred Morgan and Dr. Johnny Roy; most of the finger-pointing was aimed at Cornett, who disavowed any knowledge of the calls. Here's what The Hill in Washington reported about the controversy: "The race could also be colored by an investigation into potentially illegal prerecorded telephone messages attacking Fallin and Bode that were placed earlier this week. State Attorney General Drew Edmondson issued a release Tuesday saying the calls might have broken the law because they didn't give recipients a contact phone number for the organization placing them, Americans for Job Security, which is based in Alexandria, Va. The release said the calls might violate the Telephone Consumer Protection Act and could lead to action in criminal or civil court. Americans for Job Security is a nonprofit issue-advocacy group and is exempt from the TCPA. Reached by The Hill yesterday, President Michael Dubke said the attorney general's office told him it was not investigating his organization but instead making sure one of the other candidates wasn't behind the calls. Dubke said the attorney general's office told him one of the candidates had done prerecorded calls incorrectly in the past, and he got the impression the office was making sure that candidate wasn't responsible for the calls. Dubke said only Americans for Job Security paid for the calls."

Third, the American Insurance Association: Americans For Job Security was founded with a $1 million donation from the American Insurance Association, records located by The McCarville Report Online show. Like JTFA, AJS takes great pains to hide the names of its donors and the sums they provide. Here's what the Campaign Finance Institute reports about AJS: "Americans for Job Security, a 501 (c)(6) trade association, grew out of the Coalition, a loose confederation of business groups that ran issue ads in 1996 to oppose the AFL-CIO's $35 million campaign. After the Coalition split in 1997 over a dispute over strategy, Robert Vagley, president of the American Insurance Association (AIA), formed Americans for Job Security. The AIA contributed $1 million to found AJS; the American Forest and Paper Association also gave $1 million. David Carney, onetime political director in the Bush White House, serves as executive director of AJS. Michael Dubke, former head of the Ripon Society, is the president of AJS. Benjamin Ginsberg, counsel to AJS, was also counsel to George W. Bush's presidential campaign. Others associated with AJS include Republican consultant Eddie Mahe and Leigh Ann Pusey, a former aide to Newt Gingrich, who now serves as AIA's chief lobbyist."

The Texas Observer, writing about the veto of bills by Governor Rick Perry in 2001, took note of the interest of AJS officials in insurance legislation: "David Carney (also a consultant to Perry's campaign), the former political director of the first Bush White House, now heads Americans for Job Security. Robert Vagley, president of the Washington-based American Insurance Association, formed the group in 1998, to counter the influence of increased labor spending in Congressional elections. The group specializes in issue ads, spending $10-12 million in 2000 to take issues like 'regulatory reform' straight to the public. Benjamin Ginsberg, an attorney with George W. Bush's presidential campaign, is also affiliated with the group. Also killed in the so-called 'Father's Day Massacre' veto bash was another insurance reform, HB 2430, which would have funded an ombudsman position to help Texans navigate the complex health care system and protect their rights. Bill sponsor Elliott Naishtat summed up the fate of the bill, which had broad bi-partisan support, in one line: 'The insurance industry didn't like it.'"

There's more about that "Father's Day Massacre" on June 17, 2001, when Perry veoted 78 bills. Here's the analysis of the Austin Chronicle on two bills the insurance industry opposed and Perry vetoed: "HB 1862: Prompt Payment for Health Care Providers - This veto pissed off doctors, now at the mercy of HMOs for timely reimbursements under multiple and confusing rules. The gov complained that the bill would allow doctors to sue insurers rather than using binding arbitration -- where the insurers always win. Translation: the insurance lobby owns the gov. HB 2430: Insurance Ombudsman's Program - Another Naishtat bill, developed over many months with input from across the board, created a fledgling program to help consumers navigate insurance problems with state help. Perry said he vetoed it because it was 'insufficiently funded' -- but that principle would end every state program except corporate welfare. This looks like a vindictive chop with a clumsy ax. Fingerprints: the insurance lobby."

At the time Ginsberg was legal counsel to the Bush-Cheney '04 campaign, its chairman and his obvious associate was former Montana Governor Marc Racicot, who served from 1993 to 2001. He previously served as the state's attorney general. Racicot was chairman of the Republican National Committee from January 2002 to July 2003. In 2000, Bush rushed Racicot into Florida to take charge of his vote recount effort; the attorney he worked with: Ginsberg. In 2004, when Ginsberg resigned as legal counsel to the Bush-Cheney campaign after his connection to the Swift Boat Veterans for Truth was revealed, Racicot released a statement calling Ginsberg a "friend, public servant and statesman."

Today, Racicot is president of the American Insurance Association.

The registered lobbyist in Oklahoma for the American Insurance Association is attorney Justin Whitefield, listed as "Of Counsel" to former Attorney General Larry Derryberry's law firm. Whitefield's firm, his lobbyist registration on file with the Oklahoma Ethics Commission shows, is Capital Resource Group, located at the same address as Democrat Derryberry's law firm on North Lincoln. Whitefield also was a partner with prominent Republican Bob Funk (founder of Express Personnel Services) in the purchase of a $450,000 yearling horse earlier this year and of two other horses for $600,000, auction results posted by the 2006 Keeneland September Yearling Sale and the 2006 Fasig-Tipton Selected Yearling Sale show.

Another interesting twist is that the national survey research firm shown as working for AJS in 2004 is the Tarrance Group, the same firm that now polls for Fallin in Oklahoma. Thus, the incongruity of AJS attacking Fallin, the client of a polling firm it has used.

Ginsberg did not respond to our earlier questions about JTFA; thus ignored, we didn't ask for his comments for this story.

Sources used in preparing this report included, but were not limited to: Wikipedia, stealthpacs.org, Campaign Finance Institute, The Washington Post, PattonBoggs.com, The Hill, Congressional Quarterly, opensecrets.com, Public Citizen, Americans For Job Security, Oklahoma Office of State Finance, Oklahoma Insurance Department, Oklahoma Ethics Commission, Human Events, Texans For Public Justice, Wall Street Journal, Omaha World-Herald, bloodhorse.com, warandpiece.com, American Insurance Association, kmax.blogspot.com, answers.com, New York Times, The Nation, Texas Observer, counterpunch.org, Detroit News, San Diego Union-Tribune, Austin Chronicle, martindale.com, findlaw.com, sourcewatch.org, Newsweek, and itaa.org, plus confidential conversations with U, V, W, X, Y and Z located in Alexandria (VA), Austin (TX), Oklahoma City, Potomoc (MD) and Washington.

Four Years After His Last Campaign, GRDA's Kevin Easley Still Spending Donated Money

Former State Senator Kevin Easley hasn't had a campaign in four years, but his still-maintained committee has spent almost $100,000 in the past three years and it appears most of it went to him.

Now the CEO of the Grand River Dam Authority, Easley last was reelected in 2002 and raised almost $365,000 for that campaign. He ended the campaign, his Ethics Commission reports show, with $144,315 in cash on hand.

Easley resigned from the Senate to take the GRDA post early in 2004 and there was immediate controversy over the circumstances since he'd had a hand in writing legislation that impacted the GRDA.

The records show Easley has kept the account open and apparently has paid regular sums for "office expense" and "political community activities." His expenditures include payments to an Internet vendor, an attorney and for "business meals and meetings."

The Ethics Commission's filings show monthly payments of $500 for "office expense" without the name of the recipient listed. There are four such payments listed for the period April 1-June 30, 2006 during which Easley spent $4,943, bringing his fund's balance down to $47,323, or about $97,000 less than it contained three years ago.

Other expenditures include those for "phone expense" ($650), flowers, travel, "news reports," charity events and "Internet Service - Political Interest" ($720).

His report for the period January 1 to March 31 of this year reports a $10,416 expenditure listed as "JP Morgan Market Loss." There is no further explanation.

The Ethics Commission's handbook outlines how leftover campaign funds can be used and apparently there's no provision that bars a non-candidate today from maintaining a candidate account from yesterday, even if it was four years ago. The rules state that left-over funds can be given to the state, returned to donors, given to charity, retained for a future campaign for a 6-year period, used to defend legal actions, used for community or political activity or given to the state or local central committee of a political party.

Easley stirred controversy recently, when it was revealed he was going to open a GRDA office in the Bricktown area in downtown Oklahoma City. At a Washington hearing, U.S. Senator Jim Inhofe criticized Easley for his management of the electric power entity, particularly for costs associated with the new office in Bricktown. Inhofe questioned why the northeastern Oklahoma entity needs a posh office in downtown Oklahoma City. Inhofe said the GRDA board should remove Easley or change the authority's structure to provide more oversight.

Easley represented a Tulsa district in the Senate; the seat is now held by his mother, Senator Mary Easley. His brother, Mike, was dismissed as an Oklahoma Bureau of Narcotics and Dangerous Drugs supervisor for attending college courses while claiming to be on the job.

Tulsa World: Poll Calls Irk Liotta

By Tom Droege, World Staff Writer

State Rep. Mark Liotta said his phone was ringing off the hook Saturday with automated calls from a political poll that he considers harassment. The barrage of calls to the Republican and some of his constituents has become so bad that the Legislature should try to ban such calls, he said.

"The phone rings all morning long, and they can't do anything about it except take the phone off the hook," Liotta said Saturday of his constituents. "I know there's political free speech, but this is harassment."

Liotta is running for re-election in House District 77. He will face Eric Proctor, a Democrat, on Nov. 7.

Liotta said the computerized call asks three questions: Do you plan to vote? If you do, will you vote for (candidate A) or (candidate B)? Do you normally vote for the Republican or Democrat? Not only are the repeated calls annoying, Liotta said, but they ask about candidates not in the resident's district. "It's asking you how you would vote in an election you can't vote in," he said.

The call also gives a phone number, (405) 216-3110, which connects to a voice mailbox. That further irritated Steve Bigelow of Tulsa, who said he received roughly a dozen of the calls Saturday. "There's no person to talk to to say 'Hey, quit calling me,' " he said. The calls to Bigelow opened with an apparently digitized voice saying "This is Mike with Oklahoma Polling," he said.

Liotta said that although the calls were possibly the result of an automated system gone haywire, he thought they might be trying to identify swing voters. He also said he wanted to assure his constituents that the calls are not from his campaign. He has never used recorded calls or polls, he said.

Blogger's Story About San Diego-Istook Link

Posted at OkGOP Chat is a story from California blogger James Hartline that's sure to create some ripples in Oklahoma, and possibly in Washington.

'Hush," Reneau Tells Fields

Labor Commissioner Brenda Reneau and challenger Lloyd Fields faced off Sunday morning on "The Verdict" and after repeated interruptions by Fields as Reneau was stating her case for reelection, she told him to "hush." Reneau had sat silent as Fields criticized her for what he said was her failure to show up for work. Fields repeatedly interruped and tried to talk over Reneau; she told the former legislator he'd had his turn and it was hers. He continued to try to talk over her.

"The Verdict" will be shown again on Cox Channel 7 in Oklahoma on Monday at 9:30 a.m. and 10:30 a.m., on Tuesday at the same times, on Wednesday at 11 a.m., Thursday at 10 a.m. and 11:30 a.m. and Friday at 9:30 a.m. It also will be shown again on Cox Channel 3 in Tulsa on essentially the same schedule.

Oklahoman Endorses Edmondson, Meacham, Garrett, Reneau, Holland

The Oklahoman on Sunday endorsed four Democrats and one Republican seeking statewide office. The newspaper's editorial recommended the reelection of Democrat Attorney General Drew Edmondson, Democrat Superintendent of Public Instruction Sandy Garrett and Republican Labor Commissioner Brenda Reneau. It recommended the election of Democrat State Treasurer Scott Meacham and Democrat Insurance Commissioner Kim Holland. Meachan and Holland were both appointed to office by Governor Brad Henry.

The newspaper sidestepped endorsements in the races for corporation commissioner and auditor and inspector, but gave no reasons for declining to endorse either incumbent Republican Corporation Commissioner Bob Anthony or incumbent Democrat Auditor & Inspector Jeff McMahan. Anthony faces Democrat Cody Graves; McMahan faces Republican Gary Jones.

World Profiles Hot Burrage-Shaffer Senate Race

The Tulsa World profiles the candidates in that hot Senate District 2 battle in its Sunday edition. Democrat Sean Burrage and Republican Ami Shaffer are fighting to win the seat, viewed as one of the most pivotal in the GOP's struggle to take control of the State Senate this year. To read The McCarville Report Online's previous report on this race in September, go to the Google bar at the top of this page, click on tmrcom.blogspot.com and type in "Senate District 2."

Photos courtesy Tulsa World: At left, Senate President Pro Tem Mike Morgan and Sean Burrage discuss Senate District 2 strategy; at right, Senate Minority Leader Glenn Coffee and Ami Shaffer pause from door-knocking.

A First: Unmarried 'Households' A Majority

By Maxim Kniazkov at Yahoo! News

It is by no means dead, but for the first time, a new survey has shown that traditional marriage has ceased to be the preferred living arrangement in the majority of US households.

The shift, reported by the US Census Bureau in its 2005 American Community Survey, could herald a sea change in every facet of American life -- from family law to national politics and its current emphasis on family values.

The findings, which were released in August but largely escaped public attention until now because of the large volume of data, indicated that marriage did not figure in nearly 55.8 million American family households, or 50.2 percent.

More than 14 million of them were headed by single women, another five million by single men, while 36.7 million belonged to a category described as "nonfamily households," a term that experts said referred primarily to gay or heterosexual couples cohabiting out of formal wedlock.

In addition, there were more than 30 million unmarried men and women living alone, who are not categorized as families, the Census Bureau reported.

By comparison, the number of traditional households with married couples at their core stood at slightly more than 55.2 million, or 49.8 percent of the total.Unmarried couples gravitated toward big cities such as New York, Chicago, Los Angeles and San Francisco, while the farm states in the Great Plains and rural communities of the Midwest and West remained bastions of traditionalism, according to the survey.

The trend represented a dramatic change from just six years ago, when married couples made up 52 percent of 105.5 million American households.

It indicated that efforts by President George W. Bush and his allies, who over the past five years have made a concerted effort to shore up traditional marriage and families through tax breaks, special legislation and church-sponsored campaigns is bearing little fruit.

The shift, experts said, also raises the question about the future effectiveness of so-called "family value" politics currently played by both Republicans and Democrats. Douglas Besharov, a sociologist with the American Enterprise Institute, a Washington-based think tank, said it is difficult for the traditional family to emerge unscathed after three and a half decades of divorce rates reaching 50 percent and five decades out-of-wedlock births.

"Change is in the air," Besharov said in a recent interview with the State Department journal called US Society and Values. "The only question is whether it is catastrophic or just evolutionary." He predicted that cohabitation and temporary relationships between people were likely to dominate America's social landscape for years to come. "Overall, what I see is a situation in which people -- especially children -- will be much more isolated, because not only will their parents both be working, but they'll have fewer siblings, fewer cousins, fewer aunts and uncles," the scholar argued. "So over time, we're moving towards a much more individualistic society."

In the opinion of Stephanie Coontz, who heads the Council on Contemporary Families, growing life expectancy as well as women's earning potential are impacting the traditional marriage in unexpected ways.

If before World War II the typical American marriage ended with the death of one partner within a few years after the last child had left home, she pointed out in the journal, that today couples can look forward to spending more than two decades together in an empty nest. "The growing length of time partners spend with only each other for company, in some instances, has made individuals less willing to put up with an unhappy marriage, while women's economic independence makes it less essential for them to do so," Coontz wrote.

Dunn Fires At Edmondson Over Holland Attack, Claims Media Ignores 'Abuses'

Republican attorney general candidate James Dunn said Saturday afternoon that Attorney General Drew Edmondson's suggestion the Ethics Commission adopt new rules to prevent attacks like the one on Insurance Commissioner Kim Holland "is illegal, it is a prior restraint on the First Amendment, it is an attempt to change the rules to protect a temporary insurance commissioner and her attorney general buddy. Edmondson and Holland are attempting to shift the focus from compelling allegations against Holland."

"It's simply an outrageous suggestion, and every journalist and every citizen should be angry. Frankly, the press in Oklahoma is going to have to get more aggressive: Mr. Edmondson has gotten a press pass on his abuses, and frankly I think he thought he could get away with another careless suggestion that sounds more like a Taliban leader than a responsible elected official," Dunn said.

"Over the past year," Dunn's statement said, "several news reports across the nation and region detailed abuses in the attorney general'as office, (particularly those of sexual intimidation and harassment against employees who were involved in the poultry lawsuits), which were so profoundly troubling that Dunn called for a federal grand jury to investigate. Oklahoma press ignored that event, and now Dunn says Edmondson expects and receives press passes on such questionable behavior as Edmondson's financial arrangements with law firms that make obscene profits, profits that have been funneled back to Edmondson and to Commissioner Holland.

He added, "It is ironic that both Mr. Edmondson and Mike Turpen's law firm, Riggs Abney, are the only ones trying to rescue the embattled insurance commissioner" Dunn says. I don't know who Just the Facts America is, but I know that Mr. Edmondson and Ms. Holland have not denied the charges. I do know that Mike Turpen and Riggs Abney's client, Pre-Paid Legal of Ada, has funneled tens of thousands of dollars to Holland and Edmondson's campaigns. That's been going on for years, and the mainstream press seems to have been struck dumb regarding that arrangement, but they are panting about discovering just who might be behind that...."

"Mr. Edmondson's call to essentially repeal the 1st Amendment during elections should be the most troubling to journalists. Perhaps he is fearful that Just the Facts America is coming after him, since virtually no investigative work has been done on his seedy arrangements. But as a citizen of Oklahoma, I hope the mainstream media begins to shine light on the powerful, and begin to look seriously at why a seemingly responsible public official would limit free speech, instead of encourage it," Dunn added.

NRA-PVF House, Senate Endorsements Listed

The National Rifle Association's Political Victory Fund has endorsed numerous candidates, Democrat and Republican, for election to the Oklahoma Legislature. Here's the list of candidates in contested races:

SENATE: District 4, Democrat Kenneth Corn; District 10, Democrat Joe Sweeden; District 18, Democrat Mary Easley; District 22, Republican Mike Johnson; District 24, Democrat Daisy Lawler; District 32, Democrat Randy Bass; District 34, Republican Randy Brogdon; District 38, Republican Mike Schulz; District 40, Republican Cliff Branan; District 46, Republican Joshua Jantz.

HOUSE: District 10, Republican Steve Martin; District 14, Republican George Faught; District 20, Democrat Paul Roan; district 23, Republican Sue Tibbs; District 25, Democrat Darrell Nemecek; District 26, Republican Kris Steele; District 27, Republican Shane Jett; District 28, Democrat Ryan Kiesel; District 32, Democrat Danny Morgan; District 33, Republican Lee Denney; District 35, Republican Rex Duncan; District 40, Republican Mike Jackson; District 43, Republican Colby Schwartz; District 44, Democrat Bill Nations; District 45, Republican Thad Balkman; District 46, Republican Scott Martin; District 49, Democrat Terry Hyman; District 53, Republican Randy Terrill; District 55, Republican Ryan McMullen; District 62, Republican T. W. Shannon; District 64, Republican Ann Coody; District 69, Republican Fred Jordan; District 70, Republican Ron Peters; District 77, Republican Mark Liotta; District 80, Republican Ron Peterson; District 85, Republican David Dank; District 87, Republican Trebor Worthen; District 92, Democrat Richard Morrissette; District 93, Democrat Al Lindley; District 94, Republican Rex Barrett; District 96, Republican Lance Cargill; District 98, Republican John Trebilcock.

As previously reported, NRA-PVF also endorsed Governor Brad Henry, Attorney General Drew Edmondson, treasurer candidate Howard Barnett, Congressmen John Sullivan, Dan Boren, Frank Lucas and Tom Cole, and Lt. Governor Mary Fallin in the District 5 race.

Texas Ethics Commission Fined JTFA Spokesman

Records in the Texas Ethics Commission reveal that James B. Cardle, spokesman for the controversial "Just The Facts America" entity that is attacking Oklahoma Insurance Commissioner Kim Holland in television commercials and on a website, was fined $500 earlier this year for failure to file a report on time.

Cardle, a conservative Republican activist who apparently heads the mysterious JTFA, was levied the fine for failure to file a semiannual report that was due on January 17, 2006 for his Texas Free Enterprise Fund.

He apparently appealed the fine, but the Ethics Commission voted 7-0 to enforce it, minutes of its May 12th meeting report.

JTFA was formed about 36 hours before the Holland attack commercials began to air. Its members, and thus the source of the $150,000-plus that's being spent in an effort to defeat Holland, are not known. It is registered in Texas as a non-profit entity.

Who Is Jim Cardle And Why Does He Want To Defeat Kim Holland? Many Questions, Few Answers

A Special Report By Mike McCarville ~ Who is Texan James B. Cardle and why does the conservative Republican activist want to defeat Oklahoma Insurance Commissioner Kim Holland? And what's the source of the $150,000 spent thus far on television commercials that attack Holland without naming her?

"These ads are not being run by Holland's opponent," Attorney General Drew Edmondson said Thursday. "They come from some organization in Texas with no filings with the Ethics Commission and no information as to who is paying for the ads. The public has a right to know what interests in Texas want Oklahoma to elect a different insurance commissioner. Everyone has a constitutional right to free speech, but we have a right to pull them out of the darkness and into the sunshine of public disclosure."

Edmondson said the commercial is "clearly electioneering and in violation of (the) rules."

UPDATE: As of mid-afternoon Friday, the Texas Secretary of State's office shows Just The Facts America was formed on October 11th, about 36 hours before the attack commercials began to appear in Oklahoma.

The questions about the mysterious Texans have hung on the line like a wet blanket since late last Friday, when Cardle's heretofore-unknown "Just The Facts America" launched a joint Internet-television commercial blitz designed to defeat Holland in the November 7th election. JTFA, as the group is called by its Washington attorney Benjamin L. Ginsberg of Patton Boggs, is located, its initial news release said, at 815A Brazos, #417, Austin. Nothing was known here about Cardle, or JTFA, when the controversy erupted.

That Cardle's a Republican mover-and-shaker and Holland is a Democrat seems way short of being the answer to the basic question of why Cardle and JTFA wants to send her packing and have spent at least $150,000 (the initial tv buy) thus far to try to do it. And forget, The McCarville Report Online is told, that Cardle's association with former Oklahoma U. S. Senator Don Nickles could be the answer. (That's Cardle on the right in the photo above showing Nickles after he spoke to Cardle's Austin Economic Council last year.)

A prominent Republican insider, asked why Cardle is after Holland, replied, "She just pissed off the wrong people." That cryptic response, coupled with no additional information, simply increased TMRO's curiosity and launched us on a six-day search for information.

Research by The McCarville Report Online shows that Cardle is involved in numerous groups and apparently is one of the owners of Texas Insider, a state political online newsletter; he was a founder of its predecessor, Texas Digest. He is the co-founder and chairman of the Austin Economic Council, president of the Texas Free Enterprise Fund, heads the Texas Club for Growth and the Lone Star Foundation, and is president of the Texas Citizens Action Network. He is closely allied with the Republican governor of Texas, Rick Perry, and with President George W. Bush. He is listed as the owner of Cardle Consulting & Development Solutions and has a string of connections to nationally-known Republicans, both operatives and elected officials.

As with many things political, especially involving political attacks where attempts are made to keep the source of the attack funding secret as in this case, accurate information is hard to come by. Two State Capitol reporters in Austin told The McCarville Report Online they've never heard of Just The Facts America, but they are familiar with Cardle. One described Cardle as "a smoke-and-mirrors political guy."

We first tried going directly to Cardle in Austin, sending an email and calling. Two days after our inquiries, we've had no response from him. Next, we went to JTFA attorney Ginsberg, posing several questions about Cardle's interest in an Oklahoma political race, the sources of funding for JTFA, and Cardle's relationship to another prominent Texan. We asked Ginsberg, via email Wednesday afternoon, "1) What is the particular interest of 'Just The Facts America' in the post of insurance commissioner in the State of Oklahoma? In short...why is this entity funding this effort? 2) What entity, entities or individuals have provided funding to 'Just The Facts America' to pay the consultants, website developers, television commercial producers and television stations in this effort? 3) What personal, public service association or business relationship, if any, is there between James B. Cardle and (name redacted by TMRO) of Texas? Is (he) associated in any way with 'Just The Facts America'?" Ginsberg had not responded as of Friday morning.

It is Ginsberg's position, as outlined in a letter sent last Friday to Oklahoma television stations, that JTFA, "a Texas-based membership organization, is devoted to maintaining ethics in government, as well as encouraging officeholders to be honest about their motives and political allegiances." A search of Internet sources for JTFA, however, reveals nothing about the entity or its financial supporters or their motives and political allegiances. In short, JTFA seems to exist only in Oklahoma despite its Austin mailing address; perhaps its registration in Texas is so new it hasn't found its way into public records yet. The logical conclusion is that JTFA was created solely to go after Holland.

Oklahoma City communications expert and host of the weekly KWTV-Channel 9 segment "Your Vote Counts" Scott Mitchell, who distributed JTFA's news release last Friday, told TMRO early this week he knows little about the group and simply is acting as a facilitator, the local contact, and is not an advocate. We asked Mitchell, via email early Thursday morning, "Who is Jim Cardle? Inquiring minds want to know. And what is his interest in the Oklahoma Insurance Department? How much is being spent on the anti-Holland campaign? From what sources is the money coming to fund the effort?" There has been no response.

A source described JTFA as being "just like a chamber of commerce, with members who contribute" and, he added, the way JTFA is structured (apparently as a non-profit entity), there's no requirement that its membership list, or the sums they give, be publicly disclosed.

In researching Cardle's background and connections, several news reports in Texas were found that mention Cardle's association with a Timothy R. "Tim" Phillips, who is president of the Americans For Prosperity Foundation, a conservative business issues advocacy group that, among other issues it addresses, is opposed to congressional pork barrel projects, or "earmark" spending. Earlier this year, Phillips was in Oklahoma City on that subject (he's shown at right in a television commercial announcing his trip to Oklahoma City) and questioned a federal million dollar earmark for a water taxi in Bricktown. AFPF has offices in numerous states, including Oklahoma's office on Avondale Drive in Nichols Hills.

AFPF's Austin office address, 807 Brazos, No. 210, puts it immediately adjacent to Cardle's JTFA, at 815A Brazos, No. 417, leading to speculation the two are somehow connected. Adding to that perception is an April 28th "coalition" letter from Phillips' AFPF signed by numerous politically-involved Texans including Cardle.

To further the speculation, the Oklahoma representative of Phillips' Americans For Prosperity Foundation is Mike Osburn, who managed then-Senator Nickles' Oklahoma City field office and was his political and policy representative across the state. Contacted by TMRO, Osburn flatly denied any knowledge of a connection between AFPF and JTFA: "I did not help arrange for Sen. Nickles to speak to Jim Cardle's group last year or at anytime," Osburn told us. "I don't know who Jim Cardle is nor do I know with what group he is associated." Asked if he had any involvement in the anti-Holland effort, he replied, "I certainly had no role whatsoever with anything anti-Holland and until reading your email I was unaware that there was anything like that (rumor) out there." Osburn said on Wednesday he would forward our email "to AFPF's national office so that they can maybe provide more insight into some of your questions."

UPDATE: Friday afternoon, a spokeswoman for AFPF at its Washington headquarters said that Phillips and Cardle often are allied on conservative issues. Annie Patnaude said Phillips lives in Georgia. She added, "Mr. Cardle has spoken at some Americans for Prosperity-Texas events as a partner in the fight for lower taxes, less spending, and limited government. Our relationship with Mr. Cardle is that of an ally. Mr. Cardle has been asked to speak at AFP-TX events and sign coalition letters as an ally in the fight for more accountable government."

Whether there's a connection between Cardle and Phillips in JTFA is speculation; we tried to contact both men directly without success. Asked if the two are connected, Patnaude said, "not to my knowledge."

Who is Tim Phillips? The Atlanta Journal-Constitution reported on March 4th, under the headline (Jack) Abramoff and (Ralph) Reed Used (Grover) Norquist To Launder E-Lottery Money, that "Abramoff was lobbying for...eLottery Inc against a bill in Congress that would have banned most online betting. First the money was sent by eLottery to Americans for Tax Reform...headed by Grover Norquist, who knew both Reed and Abramoff. Norquist then wrote a check for $150,000 to a group called Faith and Family Alliance of Virginia Beach. Faith and Family Alliance wrote a check for the same amount to Reed's Century Strategies...One of Faith and Family's founders, Tim Phillips, was a vice president for Century Strategies."

Tim Phillips, one GOP consultant who has known him for years says, came out of Virginia GOP politics and was on the staff of a congressman from that state before hooking up with the controversial Reed, former head of the Christian Coalition, and eventually winding up in Texas.

A Democratic National Committee website mentioning Phillips carried this story: "Reed received $4.2 million from Abramoff's firm for lobbying in Texas in 2001 and 2002 before registering as a lobbyist, a Class A misdemeanor punishable by up to a year in jail and a $4,000 fine. In Texas, his efforts to close one tribe's casino were surreptitiously funded by rival tribes. His firm also received $150,000 from Jack Abramoff's client, eLottery, as part of his effort to kill an anti-gambling bill. (The money was used to attack GOP House members who backed the bill.) Reed rallied the religious community against the casinos and met with state lawmakers to kill a bill that would reopen the Tiguas casino (another Abramoff client), according to his e-mails. Tim Phillips, VP of Ralph Reed's Atlanta-based Century Strategies, and Tim Cox, co-owner with Phillips of the political consulting firm New Dominion Strategies, helped create a supposedly 'non-partisan' tax-exempt organization in Virginia called the Faith and Family Alliance. Robin Vanderwall served as the organization's Executive Director. Robin Vanderwall is now cooperating in the Abramoff investigation. Washington Post quotes (Nov. 3) 'Vanderwall is now serving a seven-year prison term after he was convicted of soliciting sex from a minor on the Internet. In telephone interviews and correspondence from state prison, Vanderwall said the nonprofit group, Faith and Family Alliance, was used as a pass-through to fund Abramoff's campaign against an Internet gambling ban and to attack U.S. House candidate Eric I. Cantor in his 2000 primary race.' Money was sent from a client of Abramoff's to Americans for Tax Reform [Grover Norquist's], which kept a portion. The rest was routed to Faith and Family, records show. Vanderwall then made out a check for the identical amount and sent it to the political consulting firm where Phillips is vice president. That firm was founded by former Christian Coalition director Ralph Reed, an Abramoff friend. The money was meant to attack conservative Republicans who backed the Internet Gambling Prohibition Act, a review of records shows. Four days before Virginia's June 12 GOP primary, the Alliance sent out a mailing attacking congressional candidate Eric I. Cantor to boost the prospects of his opponent State Sen. Stephen H. Martin, who had hired Tim Phillips. Virginia 's Republican attorney general candidate Robert F. McDonnell paid $1,460,133 to Phillips and Cox's firm, New Dominion Strategies. McDonnell also had used Vanderwall as his campaign manager."

So most of the questions about JTFA, its members and thus, the source of the money being poured into the attempt to defeat Holland, remain unanswered. It seems clear that none of those involved want to provide answers.

Political People & Events

Lt. Governor Mary Fallin and Dr. David Hunter faced off Thursday night in a debate televised by KFOR-Channel 4. Democrat Hunter challenged Fallin to return a donation from U. S. House Speaker Dennis Hastert's political action committee, saying, "You've got questionably-tainted money" without offering any evidence that's the case. Hunter makes that assertion, he said, because Hastert is under fire in the Mark Foley scandal. Fallin said there's no reason to return the money. Hunter also criticized the war in Iraq; Fallin said she'd like to see the war end as soon as possible, but does not advocate that the U. S. "cut and run" and she'd rather we fight the war against terrorists there than in the U. S. Fallin is poised to bury Hunter on election day; polls show her at about 60 percent.

The Oklahoma Democratic Party has paid a $1,000 fine to the Federal Election Commission for failure to file some 2002 finance reports in timely fashion. The late reports apparently were tied to expenditures the party made on behalf of 4th District congressional nominee Darryl Roberts that year.

U. S. Senator Tom Coburn has endorsed House Speaker Todd Hiett for lieutenant governor.

Jean Gumerson, longtime Oklahoma City civic and Republican political activist, died Thursday. She was 83. She was inducted into the Oklahoma Hall of Fame and was for years president of the Presbyterian Health Foundation.

The Oklahoma Council of Public Affairs and Citizens Against Government Waste unveiled their new "Oklahoma Piglet Book" on Thursday. The book reveals examples of government waste and inefficiency in state government. The groups also called for a new state web site that would show how state tax dollars are spent. U. S. Senator Tom Coburn said the state site could be fashioned after a federal site authorized by legislation approved by Congress earlier this year. "It's the start of creating transparency and ultimately leading to accountability for elected officials in Oklahoma," Coburn said.

Edmondson Says It's 'Electioneering'

Attorney General Drew Edmondson said late today that the television commercial attacks on Insurance Commissioner Kim Holland clearly constitute "electioneering" and the Ethics Commission should take action to prevent a recurrence in the future.

He referred to $150,000 in commercials now airing, paid for by the mysterious Texas-based entity "Just The Facts America." For more details on the controversy, check The McCarville Report Online Friday morning.

Coming Friday: Who Is Jim Cardle And What's The Source Of The $150,000-Plus Spent Thus Far To Attack Insurance Commissioner Kim Holland?

A conservative Texas Republican, Jim Cardle, is out to defeat Insurance Commissioner Kim Holland and the secret group he represents has thus far spent more than $150,000 on its anti-Holland television buy alone. But why? Does his friendship with former Republican U. S. Senator Don Nickles have anything to do with it? Cardle (at right) is shown with Nickles at an event in Austin last year sponsored by Cardle. The McCarville Report Online is asking questions; look for our full report soon. To quote Matt Drudge: DEVELOPING.

Oklahoman Editor Cites Copyright In Holland Ads; DC Lawyer Cites First Amendment

A new fight broke out today in the controversy over those television commercials attacking Insurance Commissioner Kim Holland, and this one involves the editor of The Oklahoman.

The McCarville Report Online learned that Sue Hale, executive editor of The Oklahoman, wrote to the attorney for "Just The Facts America" that the use of the newspaper's materials in the commercial violates copyright laws.

Benjamin L. Ginsberg of Patton Boggs in Washington, the group's attorney, fired a letter back today telling Hale he has reviewed "your puzzling letter concerning JFTA's use of the Oklahoman's nameplate and story in an advertisement entitled 'She,' which is currently airing on Oklahoma television stations."

The controversy erupted late last Friday, when "Just The Facts America" distributed a news release calling attention to a website and announcing the television spots were about to air. The spots attack Holland, without naming her, for accepting donations from those she regulates, for allegedly having herself reimbursed for driving back and forth to her home in Tulsa, and for her educational background. Holland's attorney, Richard Mildren, fired off a letter to state television stations seeking to stop the spots. Ginsberg responded to that letter, saying the commercial is fair commentary and does not name Holland.

Ginsberg's letter to Hale, dated today, questions the contention that material in the newspaper cannot be part of discussion and, "It is abundantly clear that the advertisement at issue lies at the heart of JFTA's First Amendment right to discuss Kim Holland's ethical transgressions."

Ginsberg notes that Holland's campaign website reprints an Oklahoman article in its entirety" and asks, "Would you mind sending us the letter you sent to the Holland campaign?"

Ginsberg concludes his letter: "We sincerely hope you will not continue to contradict your newspaper's otherwise firm commitment to First Amendment ideals. Should your policy against my clients continue, I fully expect that you plan to begin enforcing it against every political party, candidate, political action committee, corporation, and individual in the state of Oklahoma and elsewhere. As I am sure you are aware, the use of newspaper quotes and newspaper nameplates in political discourse is widespread."

Photo: Insurance Commissioner Kim Holland

Fired Insurance Department Executive Assistant Claims Holland Uses Office, Staff To Run Campaign, Altered Records To Cover It Up

The former executive administrative assistant to Insurance Commissioner Kim Holland has filed a $175,000 Tort Claims Act complaint alleging, among other things, that Holland has used the Insurance Department offices, and employees she hired, to run her election campaign and that records have been altered to cover it up.

Holland said, "These claims are totally false."

Karen Russell filed the claim on October 10th with the Office of Risk Management in the Department of Central Services.

She writes that she was fired in November 2005 by Craig Knutson, Holland's chief of staff.

Russell worked in the commissioner's office for four years and was fired, she wrote, because "someone" she believes to be Knutson, went through her purse and found a note she had written about Holland not paying for university of Oklahoma football tickets.

Russell claims that from the day Holland became commissioner, "the ethical climate at the OID began to deteriorate." Russell alleges there has been a "misuse of federal and state funds."

Russell writes that shortly after Holland became commissioner, a number of employees were called to a conference and introduced to two consultants: "Amazingly, the two consultants, Diana Hartley and Susan Hardy-Brooks, turned out to be personal friends and associates of Commissioner Holland and Craig Knutson. Even more shocking, Diana was hired as 'Communications Director,' a position that did not previously exist." Russell contends in her filing that Holland had no authority to create a new division.

"It soon became clear," Russell alleges, "that the new 'Communications Division' was actually a division whose primary function was to operate and manage the on-going political campaign of commissioner Holland and to get her re-elected to office. In other words, the taxpayers of Oklahoma have been paying Chilton Marshall and others in the 'Communications Division' to run Commissioner Holland's campaign out of the OID, at taxpayer expense."

Russell claims that Holland met often with Hartley, Mike Carrier (Holland's "official campaign manager") and Chebon Marshall ("Chilton Marshall's brother and Mike Carrier's business partner") in his office. She claims Chilton Marshall "was also frequently conducting campaign business during work hours." She alleges Chilton Marshall "is the veritable definition of a 'ghost employee' as she only worked on OID business (as compared to Commissioner Holland's campaign) about ten (10) hours per month."

Russell also alleges that Marshall's "time records have been altered or disguised to make it appear that they were working on state matters, but they were not."

She wrote that her "troubles with Craig Knutson and Commissioner Holland came to a head in October 2005. Heisman Trophy winner Steve Owens was in the OID office meeting with Commissioner Holland. Commissioner Holland asked Mr. Owens for tickets to the OU-Texas game, which were later hand-delivered to the OID office. I was aware that Commissioner Holland did not pay for the tickets. I made a note to myself and placed it in my purse, as this was another area where Mr. (Carroll) Fisher had also run into trouble." Russell said she wrote the note because she was "becoming concerned about my own liability." She wrote that after Holland and Knutson became aware she knew about the tickets, Holland paid for them. Holland said she would never accept free tickets.

In her claim, Russell alleges she was wrongfully terminated in retaliation because she was documenting "unethical and illegal conduct," that her character was defamed by being fired, that a breach of contract occurred, that a breach of good faith and fair dealing occurred, that Knutson and others trespassed by searching her purse, that Holland and Knutson engaged in a conspiracy to wrongfully terminate her employment, that there was the intentional infliction of emotional distress and that there was intentional interference in Russell's attempt to find a new job because "the OID provided false job reference information for me...." Russell seeks $175,000 in compensation.

Dan Boren's Popularity Evident In Donations

Congressman Dan Boren, D-2nd District, is a popular fellow if donations to his campaign fund are any indication.

Boren's 2005-2006 campaign has raised $971,342; he's spent $447,851 and had $349,032 on hand as of his last report to the Federal Election Commission.

That Boren has raised such a sum without a Democrat primary opponent, and facing a not-a-chance-of-winning Republican indicates monied givers have taken to the freshman congressman.

This year, Boren's reports examined by Open Secrets show, he's raised $316,190 inside the state and $63,555 outside the state. Individuals have donated $517,488 and political action committees have donated $451,972; that's a 53-47 percent split, with the 47 percent from PACs considered high by most entities that monitor federal campaign financing.

The influence of Boren's father, University of Oklahoma President David Boren, can't be overlooked. The zip code with the largest sum of money donated to Boren this year is 73072, in Norman, with $22,300, and the largest single sum of dollars donated by the employment of the donors is the University of Oklahoma, $15,500. Those connected to BancFirst were second, at $10,350. The second best zip code for Boren is in Tulsa, 74114, where donations totaled $21,950.

Oklahoma City as a whole gave Boren $110,000 and Tulsa gave him $98,000. Enid donors gave $5,500.

TvPoll: Everything's Roses For Henry

A new TvPoll for KWTV-Channel 9 in Oklahoma City shows incumbent Governor Brad Henry is in a bed of roses as Election Day nears.

Witness: (1) 75.4 percent believe the state is headed in the right direction; (2) 54.9 percent rate the current economy as excellent or good; (3) 57.4 percent expect the good economy will remain and 23.5 percent believe it will get better; (4) 52.3 percent say their families' financial situation is about the same as a year ago and 23.9 percent believe it will get better; (5) Henry's approval rating is now a staggering 78.4 percent.

The wide-ranging poll covered numerous issues as it sought to get a finger on Oklahoma's pre-election pulse. The poll was taken of 1,260 registered voters on October 12-13 by automated (so-called "robo") calls.

President Bush's approval rating was at 56.8 percent, disapproval at 42.4 percent.

Other findings: (1) The state's budget surplus should be rebated to taxpayers, 32.3 percent said; 22.2 percent said it should be put into the Rainy Day Fund and 30.4 percent said it should be split between refunds and the Rainy Day Fund. (2) Both political parties do about the same job when it comes to handling state government spending, with 37.8 percent citing Democrats and 36.2 citing Republicans. (3) 75.8 percent said it is very important that at least 65 percent of each education dollar reach the classroom; at present, it is 56 percent. (4) 89 percent said they are opposed to allowing illegal immigrants to receive in-state tuition to colleges and universities. (5) 51.7 percent said they disapprove, somewhat or strongly, to the expansion of Indian gaming in the state; 44.1 percent said they somewhat or strongly approve. (6) 64.2 percent said they approve of the state lottery; 34.5 percent said they disapprove.

TvPoll.com is owned by pollster Bill Shapard and Dr. Keith Gaddie, professor of political science at the University of Oklahoma and nationally-known political pundit.

Photo: Henry, Ernest Istook ending Tuesday night's debate in Lawton

Poll Methodology Controversy Continues

The controversy over how polls are conducted continues to rage across the country as well as in Oklahoma. In Oklahoma, the local TvPoll.com conducts polls for KWTV-Channel 9 and SurveyUSA, a national firm, polls for KFOR-Channel 4; both utilize automated calls. Polling entities that utilize "live" interviewers on behalf of political and business clients include Cole Hargrave Snodgrass And Associates for its "Sooner Survey" and Wilson Research Strategies. We've reported on this split in the polling community before and the Washingtonian recently weighed in on the subject with the article reprinted below.

He’s Ahead! He’s Behind! Which Polls Can You Trust? Midterm elections are coming, and each day brings another poll or forecast. How believable are they?

We asked some of the city’s best political minds to handicap the polling landscape. Here’s the skinny on five polls—two reliable, three less so.

1. Mason-Dixon works with newspapers in states across the country for its research. This firm is methodologically sound and shoots straight.

2. Selzer and Co., which polls independently in Iowa, Indiana, and Michigan on behalf of media clients, has its states’ demographic quirks down pat.

3. The Wall Street Journal’s print reporters are aghast at how media outlets and campaigns conflate the WSJ Online Zogby Poll with the real Journal poll, which is conducted by a bipartisan team of pollsters in conjunction with NBC News. For the online version, John Zogby’s firm culls its data from a geographically and demographically weighted self-selected pool of Internet respondents. There is no hard evidence that the method is valid enough even to be interesting.

4. Thumbs-down to the autodialers. These are the robo pollsters that use the phone book or another database to find respondents who answer questions by punching in digits on a telephone. First the bad: Scott Rasmussen’s Rasmussen Reports. His demographic weighting procedure is curious, and we’re still not sure how he prevents the young, the confused, or the elderly from taking a survey randomly designated for someone else. Most distressing to virtually every honest person in politics: His polls are covered by the media and touted by campaigns that know better.

On the plus side, while skepticism is warranted, SurveyUSA’s poll seems to be on the leading edge of autodial innovation. Its numbers generally comport with other surveys and, most important, with actual votes.

5. Quinnipiac College is an A-list, established, academic polling outfit, but the farther away from Connecticut, the worse its polls become. We don’t know why or how Quinnipiac acquired the experience to poll Florida, a complicated, diverse state that vexes even the most experienced pollsters. Like the autodialers’, Quinnipiac’s results can fluctuate wildly even when nothing indicates the race should be in flux. —Garrett Graff

Lawyer Letters Fly In Holland Attack Episode

Letters from lawyers are flying today as part of the attack on Insurance Commissioner Kim Holland, launched last week by an Austin, Texas entity.

The McCarville Report Online obtained a copy of a letter, sent in response to a "cease and desist" letter sent by a prominent state law firm, that defends television commercials obviously aimed at Holland but not mentioning her by name.

The letter, from the Washington law firm Patton Boggs and signed by attorney Benjamin L. Ginsberg, says it was written "in response to the puzzling letter you received from Riggs, Abney, Neal, Turpen, Orbison and Lewison" last Friday as the commercials began to appear. Ginsberg argues that the commercials are not an "electioneering communication" as defined by Oklahoma law.

Ginsberg writes that the commercial falls under protection of the First Amendment to free speech and "should not fall victim to her bullying."

Attorney Richard Mildren wrote the letter on behalf of Holland. In his letter to the television stations, he argued that "Just The Facts America" is not registered as a political entity in Oklahoma and its product is an "inaccurate and inappropriate political commercial."

Texas-Based Group Levels Accusations At Holland; She Issues Defense, Claims 'Illegal Entity' At Work

From TMRO's Archives of 10/13/06 A Texas-based group unveiled a website and television spots late Friday that attack Insurance Commissioner Kim Holland, alleging she has engaged in "unprofessional conduct."

The group claims that she's taken "tens of thousands of dollars" from out-of-state insurance executives and charged the state mileage for driving her personal vehicle back and forth to her home in Tulsa.

Holland issued a defense (Oklahoma Democratic Forum/Kim Holland's Answer) of herself, saying the attacks come via "secret funding of an illegal entity."

The television spot shows Holland in silhouette and does not name her. The spots began airing in Friday's 6 p.m. newscasts in Oklahoma City.

The Texas group,"Just The Facts America," is based in Austin and is represented in Oklahoma by Scott Mitchell, who operates a company that specializes in communications. He is a frequent television guest discussing politics in Oklahoma City.

The news release mentions Jim Cardle as speaking for the group; he is an Austin businessman and a founding director of the Austin Economics Club. An attorney, he is active in the Texas Club For Growth.

Some Candidates Use Donations To Reimburse Themselves For Travel, Others Don't

Examination of Ethics Commission campaign finance reports by The McCarville Report Online finds that most statewide candidates apparently don't claim reimbursement for auto mileage or vague travel "expenses" from their campaign funds.

The "expenditures" reports filed as part of each candidate's full report give no real detail, with few exceptions, about how campaign funds are expended. Unlike the listings of donors, which require detail as to occupation and place of employment, there apparently is no requirement that expenditure details be anything more than a general entry; the entries seldom list a specific recipient of the money. (In federal campaigns, full disclosure means the expenditures information required is precise and includes the name of the vendor, payment and purpose of the payment.) Some of the travel expenses on the reports could include reimbursements to campaign staff members.

Of the 18 major candidates whose reports we examined, 13 listed no apparent personal reimbursement payments for "mileage" or related travel expenses. The exceptions appear to be Republican Attorney General candidate James Dunn, Republican Insurance Commissioner candidate Bill Case, Democrat Labor Commissioner candidate Lloyd Fields, Democrat Corporation Commission candidate Cody Graves and Democrat Auditor & Inspector Jeff McMahan. Governor Brad Henry and his challenger, Republican Congressman Ernest Istook, are among those who list no personal reimbursements.

Here's what our examination of the expenditures reports show as totals for the major candidates for "mileage" or "travel" reimbursements:

GOVERNOR ~ Governor Brad Henry - 0. Congressman Ernest Istook - 0 (Istook's campaign apparently leases a vehicle in which he travels and the payment is $492 per month.)

LIEUTENANT GOVERNOR ~ State Rep. Jari Askins - 0. State Rep. Todd Hiett - 0.

ATTORNEY GENERAL ~ James Dunn - $1,868. Attorney General Drew Edmondson - 0 to $11,396 (This figure includes "Reimbursement-misc expenses" of $1,466 and payments of $561, $2,054, $2,797, $1,636, $143 and $3,300 for "Food/travel/lodging-misc expense"and likely includes expenses for campaign workers as well as the candidate.)

STATE TREASURER ~ Howard Barnett - 0. (Barnett's campaign is the only one we found that lists "travel" reimbursements by the name of the staff member who received them.) Treasurer Scott Meacham - 0.

INSURANCE COMMISSIONER - State Rep. Bill Case - $1,407 for "Fuel, district travel" which Case said is all reimbursement for gasoline. Insurance Commissioner Kim Holland - 0.

SUPERINTENDENT OF PUBLIC INSTRUCTION ~ Bill Crozier - No reports on file. Superintendent Sandy Garrett - 0.

LABOR COMMISSIONER ~ Lloyd Fields - 0 to $16,800 in payments of $3,400, $8,200 and $5,200 for "Capital One-lodging, food, gas" and the credit card payment sums could include campaign worker expenses. Labor Commissioner Brenda Reneau - 0.

AUDITOR & INSPECTOR ~ Gary Jones - 0. Auditor & Inspector Jeff McMahan - $12,979. His report for January 1st to March 31st shows payments to "Jeff McMahan reimbursement-travel/expenses" on January 5, January 12, January 18, January 24, February 8, February 12, February 28, March 10, March 13, March 21 and March 29. That specific entry disappears in his next report, the period April 1st to July 10th, and apparently is replaced by "Professional Expense-campaign expense" payments of $1,500 on April 14, May 1, May 15, June 1, June 14, and June 29. For the period July11th to August 7th, his reports show similar payments of $750 and $1,139.

CORPORATION COMMISSIONER ~ Commissioner Bob Anthony - 0. Cody Graves - $1,734, some of which may be to campaign workers.

Examination of the reports show that Insurance Commissioner Kim Holland has made an effort to comply with reporting requirements for donor information; she has filed amendments to all her reports this year to provide occupational and address information that the original reports lacked.

Istook Says Henry Paroles Too Many Drug Dealers

Ernest Istook says Governor Brad Henry is giving paroles to too many drug dealers. The Republican nominee says Henry is "pretending" he's tough on drug dealers.

"On average, once a day, Brad Henry has put a drug dealer back on the streets with our children, usually after serving only one third of their sentence," Istook said. "And many of these were convicted of making meth," Istook said at a Capitol news conference.

Istook disputed Henry's that he's tough on drugs. A Henry campaign television spot highlights a law Henry signed that has been credited with dramatically reducing methamphetamine labs.

"Mr. Henry should quit pretending that he's tough on drugs. He claims he personally reviewed each of these cases...so he cannot shift the blame to someone else," Istook said.

Paul Sund, Henry's director of communications, said Istook is distorting Henry's record.

Sooner Survey: Treasurer's Race A Toss-up

The Sooner Survey finds that the race for state treasurer is a toss-up, with Democrat incumbent Scott Meacham and Republican Howard Barnett still not known to voters.

The survey found that 79 percent don't know enough about Meacham (left) to rate him and 85 percent don't know enough about Barnett (right) to rate him.

And, "Undecided" and Meacham lead the race right now, at 36 percent each, followed by Barnett at 28 percent.

The survey was taken September 21-22 of 500 registered voters.

Pat McFerron, director of survey research, said the survey indicates that Meacham, closely identified with Governor Brad Henry who appointed him to the post, "should be careful about (tying himself closely to Henry) doing so in an overt manner. When voters are given arguments both in favor and opposed to having a state treasurer tied closely to Governor Henry, a strong plurality (44%) prefers to have an independent treasurer."

McFerron writes that "Brad Henry is not showing coattails at this time. It is a Henry coalition, not a Democrat coalition."

McFerron concludes that this race is far from over and how undecided voters "break will depend on the television and advertising campaign activities during the last 20 days of the campaign."

Cole, Boren Lead Congressional Fundraising

Congressman Tom Cole, R-4th District, leads members of the congressional delegation in dollars raised thus far this election cycle, new Federal Election Commission reports show.

Cole has raised $913,743 and has $516,534 in cash on hand.

Congressman Dan Boren, D-2nd District, has raised $909,59 and has $349,032 in cash on hand.

Congressman John Sullivan, R-2nd District, has raised $724,432 and has $374,191 in cash on hand.

Congressman Frank Lucas, R-3rd District, has raised $477,648 and has $553,249 in cash on hand.

Jeff McMahan Confirms Interview By FBI Agents; Denies He's A Target In Phipps Probe

By Jerry Bohnen, NewsRadio 1000 KTOK

The FBI has interviewed him about his ties to three southeast Oklahoma Democrats and a Kiowa businessman under government probe, confirms State Auditor Jeff McMahan.

But he denies he is a target of the probe and blames his problems on his Republican opponent.

"There was (sic) two gentlemen that I visited with. But they just asked me what kind of relationship or connection that I have with the sub-state planning districts," explained McMahan. "I said none."

He went on to say he explained to the agents how certain legislative funds pass through his office but are distributed equally to the planning districts.

"What the deal is," said McMahan, "I took legal campaign contributions from individuals that live in the southeast part of the state. Perfectly legal contributions who get absolutely nothing in return but good government."

He blames his problems on his Republican challenger Gary Jones. "He just, he just keeps trying to tie me to these individuals from southeast Oklahoma. It can't be done because we've given no favors."

McMahan is referring to the FBI investigation of Democrats Randall Erwin, Mike Mass and Jerry Hefner and their alleged relationship with Kiowa businessman Steve Phipps. Mass, Hefner and Erwin allegedly used their positions in the legislature to funnel nearly $3 million dollars in state money to different businesses run by Phipps.

Some reports claim the deal to funnel the money to Phipps was cut in secret meetings held in McMahan's office. He denies it. "The only time I ever remember even talking to Randall Erwin and Mike Mass was just to say that there was no funds, special project monies going through this office," he claimed in an interview today as he arrived at the State Capitol. "There is absolutely no substance to it. And when we get the authority from the legislature, we're gonna audit every special project monies that come out of the legislature."

Blog Raises Questions About GOP 'Victory '06 Effort'

Oklahoma Political News Service has raised questions about the administration of the Oklahoma Republican Party's "Victory 2006" operation and the sum paid the woman who heads it. No comment yet from Republican State Chairman Tom Daxon.

Fallin Boosts Fund By $441,622, Nears $1.5 Million

Lt. Governor Mary Fallin has boosted her campaign war chest by almost a third since August 3rd, raising $441,622 and increasing her total raised to $1.480 million.

Fallin's latest report to the Federal Election Commission reveals the figures and shows she has $247,012 in cash on hand. The report shows Fallin raised $1,480,186 in the period August 3 to September 30.

Fallin ran first in the multi-candidate GOP primary and easily defeated popular Oklahoma City Mayor Mick Cornett in the runoff.

Her opponent, Democrat Dr. David Hunter, filed his report (late) today. It shows he's raised $191,188 and has $79,080 in cash on hand. In the reporting period July 6-September 30, he raised $90,891, far short of the sum Fallin raised.

Sex With Clients, Sex Ratings List, 'Light Bulb Bombs' Put Sparks In Shawnee Democrat's Campaign For The State House

Sex with law clients, a sex ratings list, domestic disturbance police reports and "light bulb bombs" in his house are providing salacious sparks in Shawnee, where lawyer Joe Freeman finds himself whispered about as he seeks to win a seat in the Oklahoma House of Representatives.

Democrat Freeman came under fire in McClain County District Court in Purcell on July 26th, when Judge Noah Ewing presided over a hearing in which attorney Larry Balcerak of Pauls Valley sought to have Freeman disqualified as the attorney for Pamela Boyd (Casey), suing her husband for divorce.

Boyd admitted, under questioning, that she had sex with Freeman.

Balcerak represents William Frank Casey and brought the proceeding, he told the court, because he has "ethical obligations under Title 5 of the Oklahoma Statutes to bring before the Court...." and "where an attorney has violated some rules of professional conduct, as an officer of the court, I'm sworn to...under Rule 8.3...to bring that to the Court's attention and the Bar Association's attention." He added, "It is highly unethical under the Bar Association rules to have sexual relations with your client during cases. And this hasn't happened just once. This isn't an isolated instance. This case has been going on since June of '03 through the current. There's no excuse for that." Balcerak argued that Freeman should be disqualified as the woman's attorney because, "She is not, under our case law, entitled to an attorney of her choosing if it violates the integrity of the Bar and that's what we have, your Honor. It's not just an allegation. We have it in writing and you've heard testimony from independent witnesses in this case. So to protect the integrity of this case and of the Bar, we're asking the Court to force the disqualification of Mr. Freeman at this time."

Freeman represented himself at the hearing and questioned the witnesses.

The transcript of the hearing provides startling information in addition to the admission of sexual intercourse between attorney and client.

Testimony showed that Shawnee police took domestic disturbance reports from Boyd on several occasions, one of them involving an instance in which Freeman allegedly wrestled with Boyd as he tried to take from her a piece of paper that listed female law clients he was having sex with, and how he rated them. "The piece of paper that showed that he was having sex with clients and you were rated second to the last?" Balcerak asked at one point in pinpointing the source of the dispute.

Shawnee Police Detective Anthony Grasso testified that he was called to investigate a break-in at Freeman's home in August 2005. Asked if he found anything in the house that was suspicious, Grasso replied, "Well, we did find the lightbulbs had a liquid in there and we did have the bulbs removed by the bomb squad from Oklahoma County and those items were sent to the OSBI laboratory and sure enough, it was determined that there was gasoline inside the bulbs and they probably would have ignited if the light switch was turned on." The investigation into the lightbulb bombs remains open today.

There's no word on possible Oklahoma Bar Association action against Freeman, who in a January article in the Shawnee News-Star was listed as the municipal judge in McLoud. The article reported Freeman has practiced law in Shawnee since 1995 and is active in numerous community groups, including Project Safe and the Lion's Club. He also is a YMCA board member.

Freeman faces Republican incumbent Rep. Kris Steele in the election.

Photo of Joe Freeman by the Shawnee News-Star/Ed Blochowiak

Source: Transcript of Proceedings in the District Court of Garvin County, Pamela Boyd, nee Casey, Petitioner/Plaintiff vs. William Frank Casey, Respondent/Defendant, Case No. FD-03-125T, MOTION TO DISQUALIFY COUNSEL, reported by Rhonda K. Collini, CSR, McClain County District Court, Purcell.

Oklahoman To Huckabee: Buzz Off

The Oklahoman says Arkansas Governor Mike Huckabee probably "will win few friends and influence no one who supports (Attorney General Drew) Edmondson or is undecided in the attorney general's race" with his criticism of Edmondson for his "aggressive stance on scenic river pollution" last week.

Huckabee's visit to Tulsa and Oklahoma City to "boost his own presidential bid and trash" Edmondson, the editorial says, was political: "He's a lame duck who has an eye on the White House. As a conservative Republican, he conceivably would run well in Oklahoma. But he hurts his chances by failing to support actions that most Oklahomans want to restore quality to the water of its most scenic river."

Fox News, Reid Mullins, Flash Point Favorites

Fox News Channel, KTOK's morning man Reid Mullins and KFOR-TV's popular "Flash Point" show on Sunday mornings were the top picks in our TMRO online poll measuring your favorite sources for broadcast political news.

Nothing scientific about our poll, but here are the results nonetheless: Fox News Channel - 26%; KTOK's Mullins In The Morning - 21%; Flash Point - 19%; KTLR-AM 890's "Tailgate Political Hour" (4-5 p.m. Monday-Thursday) - 10%; Channel 9 - 8%; KTOK's "News Studio B" - 7%; Tulsa radio station KRMG's morning show - 6%; Channel 5 - 3%.

Oklahoman Praises Askins, Endorses Hiett

The Oklahoman praises Democrat Jari Askins but endorses Republican Todd Hiett in an endorsement of Hiett in its Sunday edition.

The newspaper's editorial board wrote that it backs Hiett because of the possibility Republicans could tie Democrats in the number of Senate seats held at 24-24 and that "would mean the lieutenant governor would cast tie-breaking votes, possibly including matters such as leadership positions and committee chairmanships. Although Askins would make a fine lieutenant governor, we fear continued Democratic control of the Senate will impede the state's progress as it enters its second century."

Esquire Magazine Endorses Oklahoma Candidates

By M. Scott Carter, Norman Transcript Staff Writer

In what could be a first for both journalism and politics, a national magazine has endorsed candidates in every one of the country's 504 House, Senate and gubernatorial races, including Oklahoma.

Esquire Magazine -- a monthly publication about popular culture, fashion and politics targeted toward men -- announced the endorsements in its November issue. In an article entitled Esquire Endorses America, editor-in-chief David Granger said the project was done to "encourage us all to vote."

"I've never seen this done before," Granger wrote in his column. "And now that we've done it, I understand why. It's an immense amount of work."

Saying that the country needed "a strong centrist majority in Congress," the magazine endorsed "hundreds of incumbents" and also called for the election of "hundreds of freshman" resulting, in what it said, "would be a significantly altered ratio of Republicans to Democrats."

In Oklahoma, Esquire jumped back and forth on the ideological field, calling for the re-election of Democratic Governor Brad Henry, but urging voters to keep Republican Frank Lucas. In the Governor's race, Esquire said "Henry has cut taxes, increased education spending and strengthened his state's health care system" and said the race won't be close, "for good reason."

Istook, Esquire said, "is big on family values or something." Esquire also endorsed first district Republican John Sullivan -- with reservations -- saying Sullivan "works hard for his constituents but his strict conservatism, however, isn't a perfect fit for this mixed district, and if the challenger were more credible, this endorsement would be different."

In the state's second congressional district, the magazine called for the re-election of Democrat Dan Boren and said it supported incumbent Republican Frank Lucas to continue in the third district.

Lucas, Esquire said, was creative and independent. "Lucas's work on incentive-based ranch land conservation marks him as a creative legislator, and his opposition to the White House's 'intelligence czar' on separation-of-powers grounds marks him as an independent one."

However, the 104-year-old magazine wasn't as kind to incumbent Republican Tom Cole. Cole, Esquire said, "deserves to get the chop" for placing "all his chips inthe Bush basket" and calling a Bush loss a bin Laden victory in 2004. This judgment, Esquire said, was made easier by the "shining credentials and democratic principals of his opponent, Hal Spake."

In the state's fifth district race, Esquire also supported the Democratic challenger. Calling Lt. Governor Mary Fallin a "family-values mouthpiece and little more" Esquire said her opponent, surgeon David Hunter, was "informed, measured and realistic -- qualities which are sorely lacking in Congress right now."

Oklahoman Reports FBI Affidavit Claims Steve Phipps Made Erwin, Hefner, Mass Partners in Gambling Machine Company

The Oklahoman's Tony Thornton reported in the newspaper's Sunday edition that a Federal Bureau of Investigation affidavit alleges southeastern Oklahoma abstractor Steve Phipps, Gene Stipe's former partner, made three legislators partners in his gambling machine company after they routed almost $3 million in state funds to Phipps' Rural Development Foundation and other businesses.

The legislators named are former State Rep. Randall Erwin of Nashoba, former State Rep. Jerry Hefner of Wagoner and State Rep. Mike Mass of Hartshorne.

The Oklahoman's story comes on the heels of a story in The McCarville Report Online earlier in the week in which three sources claim Mass, Erwin and Phipps met with State Auditor & Inspector Jeff McMahan in his Capitol office early in 2003 to discuss appropriations for the Rural Development Foundation. As auditor, McMahan licenses and regulates abstractors. Phipps and other abstractors have donated almost $150,000 to McMahan's campaigns.

The Oklahoman's story is based on an FBI agent's affidavit filed in U. S. District Court in Muskogee; the document became a public record last Wednesday. The affidavit "unravels a maze of alleged financial transactions, mostly between Phipps' companies, to hide payments and justify obtaining more state money," Thornton reported.

Thornton's multiple stories detail how Phipps allegedly directed use of the state money the Rural Development Foundation received.

Does Federal Probe Of Rural Development Foundation Extend To McMahan, Erwin, Mass?

(From TMRO's Archives 10/11/06) SIXTH IN A SERIES ~ A federal investigation into the controversial Rural Development Foundation (RDF) in Antlers may now include questions about an alleged meeting that included RDF consultant Steve Phipps, State Auditor & Inspector Jeff McMahan, State Rep. Mike Mass and former State Rep. Randall Erwin, it has been learned.

The questions could be important because the man behind the foundation, Kiowa resident Phipps, was a partner with State Senator Gene Stipe in nine abstract companies, and McMahan licenses and regulates abstractors. Phipps, Stipe and other abstractors were heavy donors to McMahan's 2002 campaign. A former top administrator in McMahan's office said it appeared a clear conflict of interest to him for McMahan and the auditor's office to be involved with Phipps in any way.

Federal agents have been told that McMahan used his office in Room 100 of the State Capitol for a meeting with Phipps and legislators Erwin, D-Nashoba, and Mass, D-Hartshorne, in early 2003 to discuss language that had been inserted into an appropriations bill to obtain money for Phipps and the foundation, multiple sources claim.

The McCarville Report Online also is told that at least one member of the Oklahoma Legislature who was not involved in the meeting has detailed information about the meeting and has been interviewed by agents of the Federal Bureau of Investigation.

The three sources may already have been interviewed by FBI agents. It appears certain that Phipps himself has been interviewed by the FBI; one source in southeastern Oklahoma who is in a position to know said he believes that the federal probe has increased in intensity in recent weeks.

It's also believed the FBI has interviewed the person listed in Oklahoma Secretary of State records as the agent of RDF, Melia Rose of Stuart. She is listed as the donor of $3,500 to McMahan on August 15, 2002, and of $1,050 on October 18, 2002, and is shown as giving the maximum $5,000 in McMahan's 2002 campaign. Her place of employment is listed as "RWD #11" on McMahan's report; "RWD" is a normal abbreviation for "rural water district."

On April 20th, The Oklahoman reported, the FBI raided Phipps' Antlers office where one of his abstract companies is located and where, it is believed, the records of the foundation were located. On what information the FBI acted, and what federal laws agents may suspect had been violated, is not known. The Oklahoman's story, in May, is the most definitive report on the records seizure available.

The allegation that McMahan was helping abstractor Phipps, who along with his employees was a huge donor to McMahan's 2002 campaign, comes on the heels of the revelation that secret tape recordings were made of multiple conversations with McMahan and others in the auditor & inspector's office in 2002 and 2003. Those recordings, in part, have been detailed in previous stories here and on Oklahoma City radio station KTOK. Those reports detail several conversations McMahan had with former Tulsa auditor & inspector office employees Dana Webb and Lisa Long, both of whom say the Tulsa office became an adjunct campaign headquarters for McMahan following his victory in the primary election to become the Democratic nominee for auditor & inspector to succeed the long-time, and highly-respected, incumbent, Clifton Scott. TMRO and KTOK are in possession of other secret recordings that have not yet been detailed. The previous articles can be found in our archives for the period beginning October 1st.

Phipps, the sources say, regularly used McMahan's Capitol office for meetings with legislators and others. A former McMahan employee, a highly-placed administrator in the agency at the time, said he believed it was inappropriate and a conflict of interest for McMahan to be helping Phipps "do anything" since the auditor's office licenses and regulates abstractors. He said he was not aware, at the time, of the huge sums of money Phipps and his associates had poured into McMahan's 2002 campaign. At the time of the purported meeting, Phipps was the co-owner, with then-Senator Stipe, of nine abstract companies mainly in southeastern Oklahoma. As previously reported by The McCarville Report Online and KTOK, Stipe, Phipps and their associates, including those involved in the Rural Development Foundation, were generous donors to McMahan's 2002 election campaign at critical times, particularly just before the primary in which McMahan's campaign was out of money and sputtering; using the abstractor donations to fuel the closing days of the primary, he defeated two opponents. McMahan's campaign finance reports on file with the Oklahoma Ethics Commission reveal he accepted $81,000 in donations from Stipe, his brother, his secretary; members of the RDF (at least two of whom worked for Phipps in the abstract companies); Phipps and numerous employees of the Stipe-Phipps abstract companies.

Following Stipe's federal conviction, on April 1, 2003 via guilty pleas to multiple charges in the Walt Roberts campaign finance scandal in which Stipe admitted using straw donors to put $245,000 of his own money into Roberts' campaign, McMahan, as the state official who licenses and regulates abstractors, was required by state law to revoke the licenses of the nine companies. He attempted to do so and then approved new licenses for Phipps to continue as the owner of about half a dozen abstract companies. The federal investigation into Stipe's illegal campaign activities resulted in his brother, Francis, being fined $35,000 and in Mass being fined $30,000 for their participation in the campaign finance scheme, an FEC document reflects.

Phipps and Stipe are adversaries in a legal action initiated by Stipe. Stipe also is in a legal battle with his longtime former secretary, Charlene Spears; she, too, is listed as a donor to McMahan's 2002 campaign. Spears also was a figure in the campaign finance scandal that was Stipe's undoing and has been interviewed repeatedly by the FBI. She entered a guilty plea to federal charges in the scandal, as did former State Senator Jim E. Lane, D-Idabel. They were prosecuted by attorneys in the Public Integrity Section of the Department of Justice in Atlanta, Georgia.

McMahan's campaign finance reports reveal he has accepted 220 donations from abstractors totaling about $149,000 in his 2002 and 2006 campaigns. For details, see our archives for the week of October 1st.

The Rural Development Foundation and a dog food company in McAlester that never got off the ground have made news in the past because of Stipe's connection to them. The Oklahoman reported that the address for RDF matched that of a Stipe-Phipps abstract company. Phipps, records show, was the "consultant" for RDF. In a September 2003 news release from the Oklahoma House of Representatives, Phipps outlines plans for development of a water delivery system that would provide water to communities in Creek, Lincoln, McIntosh, Okfuskee, Okmulgee, Pottawatomie and Seminole counties. He said RDF was "pondering" such a plan. In 2003, Phipps and RDF obtained permission from the Oklahoma Water Resources Board to take 25 billion gallons of water yearly from Lake Eufaula.

Records examined by The Oklahoman's investigative team, it reported, show that RDF ultimately received $1.1 million in state financing; $350,000 of it from the Department of Commerce then headed by present Tulsa Mayor Kathy Taylor, and $350,000 of it from the Oklahoma Department of Agriculture, Food and Forestry. David Arnett, publisher of the online Tulsa Today, reported many of the details on April 2, 2006; his complete report can be found below on this page. Arnett reported that the $350,000 from the Department of Agriculture was transferred to the Department of Commerce in a document signed by Taylor on September 9, 2004. Thus, the entire $700,000 in that transaction apparently was under Taylor's control.

"The question most taxpayers should be interested in is how someone could set up a foundation, quickly secure a water rights agreement and then get that much money from the Commerce Department with no track record of accomplishments on a purely speculative deal?" Arnett asked in his article.

The sources allege McMahan met with Phipps, and with Erwin and Mass, to plan how the state money for the Rural Development Foundation would be obtained via appropriations bills. McMahan, who as auditor is charged with the responsibility of auditing state entities, was an active participant in the discussion, one source says. The two other sources say Phipps was a regular visitor to McMahan's Room 100 at the Capitol and often held meetings with legislators, state officials and lobbyists there. McMahan, they said, sometimes was present and sometimes was not present. Mass is completing his final term in the House; he is term-limited. Erwin left the House and is now executive director of the Little Dixie Community Action Agency. He recently was severely burned when two explosions rocked his family's new home, a cabin outside Nashoba; at last report, he is recuperating from burns and surgery.

Top left, State Rep. Mike Mass; center right, Auditor & Inspector Jeff McMahan

New Political Websites Mark Election Year

Democrats in the Oklahoma Senate have a website that's a wealth of information about their candidates for the Senate this year and vendor resources the candidates can use. The new site is another reflection of the growth of the Internet and how it is revolutionizing the dissemination of political news and information in this high-speed, high-tech era. It presents information on individual candidates and races from the Democrat perspective sans hyperbole. At last count, Oklahoma interests have added four new political websites or blogs (this one among them) in recent months. The newest site is www.oklahomademocrats.blogspot.com, which appears to be a satirical spoof from an unidentified operator, poking fun at Democrat positions. Its apperance has angered "regular" Democrats at www.demookie.com, the long-running site where Democrats do no wrong and Republicans do no right. (Pun intended.)

Fox News: Successfully Engaging Liberals

By Brian Anderson in Human Events

Fox News turned 10 last week, and it has every reason to celebrate.

Launched by media tycoon Rupert Murdoch and former political consultant Roger Ailes as a refuge for viewers fed up with real or perceived liberal bias elsewhere in the media, Fox is the undisputed ratings champion of cable news. It has been trouncing CNN, MSNBC and CNBC for years, and it sometimes draws a fatter audience share than all its competitors combined, though viewership has slumped a little of late. Pugnacious Bill O’Reilly and conservative tough guy Sean Hannity have become two of the nation’s most powerful broadcasters thanks to this kind of ratings pull. Fox is the news media success story of the last decade.

Liberals aren’t celebrating the channel’s birthday, though. Even before an angry Bill Clinton exploded at “Fox News Sunday” anchor Chris Wallace a couple of weeks ago, accusing him of “a nice little conservative hit job” after getting pressed about his record on fighting al Qaeda, Democratic pols and advocates have relentlessly attacked the cable network, accusing it of being a Republican propaganda mill. Al Gore likened Fox to a right-wing “fifth column.” Leftist groups, including MoveOn.org, funded the documentary Outfoxed, which purports to expose the channel’s nefarious Republican agenda, and petitioned the Federal Trade Commission to ban Fox’s use of its famous “Fair and Balanced” slogan as deceptive advertising.

“When a news outlet is allowed to blur the lines between opinion and journalism and call it ‘fair and balanced,’ I think it’s confusing to consumers of information in this country, and it’s dangerous to democracy,” fretted an official at Common Cause, one of the organizations joining the petition. Hollywood celebrities never miss an opportunity to bash “Faux News.” Comedy Central’s witty “Colbert Report” is a nightly satire of the channel and of O’Reilly in particular.

What explains all this hysteria? Success, of course.

The propaganda charge is a bit unfair, at least when it comes to the network’s presentation of news. In the 2004 presidential race, Fox pollsters consistently underestimated President Bush’s support. In its final pre-election poll, Fox had Kerry winning by a couple of points, one of the only polls to show the Democrat on top. I’m not sure a right-wing fifth column would do that.A recent comprehensive study by UCLA political scientist Tim Groseclose and University of Missouri-Columbia economics Prof. Jeffrey Milyo found Brit Hume’s “Special Report”—Fox’s most straightforward news show—more centrist than any of the three major networks’ evening newscasts, all of which leaned left.

The program is a model of smart news television. And although it’s true that the network’s opinion shows are, as they’re supposed to be, noisily opinionated, it’s equally true that Fox’s biggest star, O’Reilly, is no mainstream Republican. He regularly charges the oil companies with price-gouging and attacks big business for squashing the little guy. And who can say what host Greta Van Susteren’s politics are? She mostly zeroes in on lurid murder mysteries and scandals.

Liberals troop in and out of the Fox studios every day—some of them such as host Alan Colmes and news analyst Marvin Kalb are affiliated with the channel. There’s no doubt, of course, that Fox News is more conservative than CBS or CNN. But after all, that was its founding mission.

Fox’s real ethos is not Republican but anti-elitist—a major reason it connects with so many Americans and annoys so many coastal elites. “There’s a whole country that elitists will never acknowledge,” Ailes once observed. “What people resent deeply out there are those in the ‘blue states’ thinking they’re smarter.”

This anti-elitism shows itself in Fox’s pro-U.S. stance in covering the Afghanistan and Iraq wars and its broadcasters’ use of terms such as “terrorist” instead of “militant” to refer to, well, terrorists. Since the Vietnam War era, mainstream journalists have tended to see such blunt language and side-taking as unsophisticated, a betrayal of journalistic objectivity.

Another aspect of Fox’s anti-elitism: Christians, far from being seen as lunatics or curiosities—as too often is the case in the mainstream media—actually get some respect.“We regularly have on the Rev. Franklin Graham, Dr. James Dobson and other religious leaders, just as we put on Pat Ireland and Eleanor Clift,” Hannity told me a while back. “Most Americans believe in God and have that as their foundation in life. So why shouldn’t we have as guests people that they like, respect and want to hear from?”

What really frustrates liberals about Fox, though, is simply that, along with talk radio and the conservative blogosphere, it has helped shatter the left’s near-monopoly on news and information. Fox’s opinion-driven programming gives conservatives and liberals a chance to get a hearing for their ideas. But Democratic politicians and activists who go on Fox also must defend their views, often against tough questioning, something that happens less often on the networks, where most journalists are left-of-center, as survey after survey has shown.

Even more significant, Fox came on the scene a decade ago as a professional news organization that could define and report news as something different from what the elite consensus says it is. To take one of many examples, the corruption of the United Nations’ oil-for-food initiative in Iraq, initially downplayed by the mainstream media because of their sympathy for internationalism, was uncovered—deemed newsworthy—on Fox.

All this wouldn’t matter if Fox News weren’t so influential. But it is. According to the Pew Research Center, more than 20% of Americans now claim to get news from it, and lots of them (37%) are Democrats or independents. The network’s success has also sparked a “Fox effect,” leading some competitors to become more open to right-of-center opinions: MSNBC’s “Scarborough Country,” hosted by former Republican Congressman Joe Scarborough, is a prime example. Until a few years ago, Democrats never had to deal with all these mediatized conservatives.

Nothing would please liberals more than to drag the nation back to the days when the New York Times and CBS News determined what was newsworthy. A group of congressional Democrats has warned Fox to end its supposed anti-Democratic bias—or else. Should Democrats retake Congress, an effort to shut down, or at least muzzle, Fox, is far from inconceivable, as creepy and illiberal as that sounds.

Something Fox News doubtless is keeping in mind as it pops the champagne corks this week.

Mr. Anderson is the senior editor of City Journal and most recently the author of "South Park Conservatives."

Sally Kern Rips NEA, OEA

Rather than support parental and local community efforts to deter teenage sexual activity, the National Education Association is actively undermining those initiatives, State Rep. Sally Kern said Friday.

"There's no doubt that abstinence is the best way for teenagers to avoid the pitfalls of unplanned pregnancies and sexually transmitted diseases, but the NEA and its surrogates apparently don't want that message taught to our children," said Kern, an Oklahoma City Republican and former public school teacher.

A new report cosponsored by the National Education Association with the Sexuality Information and Education Council of the U.S.(SIECUS) attacks abstinence programs and calls for federal lawmakers to cut funding to the programs, she said. Although the NEA report claims abstinence programs do not work, Kern noted other studies conducted by both the federal government and public universities have found abstinence programs do deter sexual activity among teenagers.

"Frankly, sex education decisions should be made at the local level and I don't know why a labor union feels the need to interfere," Kern said. She urged Oklahoma teachers who support local control and community values to contact the Oklahoma Education Association, the local state affiliate of the NEA, and voice their opposition to the union's anti-abstinence efforts.

This is not the first time the OEA and its affiliates have worked to undermine the teachers and communities the group claims to represent, Kern said.

Although Oklahoma's teacher retirement system is one of the worst funded in the nation, the OEA actually lobbied - successfully - to kill a bill that would have poured millions of dollars into the system this year, Kern said. The legislation, which would have placed millions of dollars in surplus funds into the retirement system, passed the Oklahoma House of Representatives on an overwhelming, bipartisan vote of 92-3, but the OEA successfully lobbied Senate leaders to kill the bill without a vote, she added. In addition, when state lawmakers tried to boost the salaries of veteran teachers by up to $3,800 this year, the OEA successfully lobbied to slash the pay raise. As a result, teachers with only a year's experience in Oklahoma now receive roughly $4,800 more than their Texas counterparts, but Oklahoma teachers with 20 years' experience are paid approximately $3,800 less than Texas teachers with the same experience.

The OEA's actions mean Oklahoma will continue to have trouble retaining its veteran teachers in the education market, Kern noted. "The OEA has actively opposed every serious plan that would benefit experienced teachers and retired educators, and now they are opposing common-sense and community values by targeting abstinence programs," Kern said. "I don't know who the union represents, but it sure isn't the teachers or parents I know."

Oklahoma Campaigns A Growth Industry

Political campaigns in Oklahoma are a growth industry, with candidates having raised $33.3 million thus far in the 2005-2006 election cycle. The figure includes $25.6 million raised by candidates for state offices and $7,740,209 raised through mid-summer by congressional candidates.

The total thus far almost certainly is a record and it's about 75 percent of the total the money-watchers expect will be recorded when the elections are over.

The congressional campaign figures come from Open Secrets, a Washington-based entity that monitors spending in campaigns for federal office.

The new figures show Republican congressional candidates in the state have raised $4,979,575 compared to just $1,415,819 for Democrats. Of the $7,749,209 total, itemized receipts account for $6,411,104, meaning the balance came in small, non-reportable sums.

Has Fallin Topped $1.5 Million?

With new Federal Election Commission reports due to be filed in the next three days, there's word today that Lt. Governor Mary Fallin has now raised about $1.5 million in her race with Dr. David Hunter for the 5th District seat in Congress.

Fallin's last report, in August, showed at that time she had raised $1,035,811. Thus, if she is indeed near $1.5 million now, she's boosted her total by almost a third since defeating Oklahoma City Mayor Mick Cornett in their August primary runoff.

Her last report showed Fallin had $158,895 on hand; The McCarville Report Online is told the new report will show she has about $250,000 on hand with television, radio and other media advertising essentially all placed and paid for.

Fallin's campaign for Congress has benefitted from her years in statewide office; many of her donors are those around the state who have supported her in previous races for lieutenant governor.

Suspicion Confirmed: SurveyUSA Finds Mary Fallin At 62%, Dr. David Hunter At Just 33%

A new SurveyUSA poll for Oklahoma City television station KFOR-Channel 4 finds Lt. Governor Mary Fallin, no surprise to most, with 62 percent compared to 33 percent for Democrat Dr. David Hunter. Independent Matthew Woodson had 3 percent and 2 percent were undecided. Those figures, if accurate, mean this race is over.

Follow The Money: $25.6 Million Already Raised By Statewide, Legislative Candidates This Year

Follow The Money reports that candidates for statewide and legislative offices, and party committees, have raised $25,650,160 in Oklahoma thus far this year. The total, it reports, represents about 75 percent of the final numbers with new campaign finance reports due soon.

The Washington-based group lists candidates for governor as having collected $7.7 million. Candidates for other statewide offices have collected $4 million. Candidates for Oklahoma House seats have collected $5.960 million and Senate candidates have collected $4.956 million. Party committees have raised almost $3 million.

Governor Brad Henry's last report shows he's received $3.085 million, while his challenger, Republican Congressman Ernest Istook, reported the receipt of $1.079 million. The man Istook defeated, Tulsan Bob Sullivan, reported $1.095 million in receipts. Many expect Henry's next report will put him near $4 million raised.

The total raised in the state this year is expected to set a new record.

Congressional Races? What Congressional Races?

Oklahoma's five seats in Congress will be filled in three weeks and odds are four of them will be filled by those who occupy them now and the fifth will be filled by the runaway winner of the Republican runoff.

The elections prompt some to ask, "What congressional races?" In Tulsa's 1st District, incumbent Republican John Sullivan faces Democrat Alan Gentges of Bartlesville and Independent Bill Wortman of Tulsa. Observers there say it's a Sullivan win walking away. In northeastern Oklahoma's 2nd District, Democrat Dan Boren will demonstrate his growing political muscle by dispatching Snow rancher Patrick Miller, a Republican who's been on the ballot before. In western Oklahoma's 3rd District, Congressman Frank Lucas will bury Tulsan Sue Barton, described in an Associated Press story as one of those involved "in the decision of two lesbian couples to file a lawsuit against the state and federal laws that deny recognition to same-sex unions." Barton said in the article that she and her partner obtained a "civil union in Vermont in 2001." In the 4th District, Congressman Tom Cole's Democrat opponent is Hal Spake of Norman; Cole should win easily. In Oklahoma City's 5th District, the only open seat race this year, Lt. Governor Mary Fallin should move to Congress, easily defeating Democrat Dr. David Hunter and Independent Matthew Woodson. Fallin finished first in the multi-candidate GOP primary and dispatched popular Oklahoma City Mayor Mick Cornett easily in their runoff.

OCPA To Unveil New 'Oklahoma Piglet Book'

Citizens Against Government Waste (CAGW) and the Oklahoma Council of Public Affairs (OCPA) will release the 2006 Oklahoma Piglet Book, the definitive guide for reducing waste, fraud, abuse, and mismanagement in the state government, at a press conference with U. S. Senator Tom Coburn. The press conference will take place on Thursday, October 19.

There will be a conference call for reporters who are unable to attend the press conference. To participate, please call 512-597-6483 shortly before 1 p.m. Access code: 655896#

Featured speakers will include Dr. Coburn, OCPA president Mark Nichols, and CAGW President Tom Schatz. CAGW’s mascot, Porky, will also be in attendance. Oklahomans are threatened by the rampant loss of tax dollars to fraud and waste. A spokesman said that a public opinion poll taken in August found that 64 percent of Oklahoma voters said they believe the state government wastes between 10 cents and 59 cents of every dollar it collects. More recently, an auditor found improper use of state agency credit cards, a problem that also exists on the federal level. The Oklahoma Piglet Book gives enough examples like these to make any Oklahoma taxpayer cringe.

The Oklahoma Piglet Book combines elements of two perennial CAGW publications, the Congressional Pig Book and Prime Cuts, with OCPA’s knowledge of the Oklahoma state budget. The report and press conference will offer solutions to budget problems, such as a public spending database similar to the one recently established at the federal level by legislation co-sponsored by Dr. Coburn.

Hard copies will be distributed at the press conference. The report will be available online at www.cagw.org and www.ocpathink.org. For answers to further questions, to schedule an interview, or to order a hard copy, please contact Alexa Moutevelis (202-467-5318, amoutevelis@cagw.org) or Brian Hobbs (465-602-1667, Brian@OCPAThink.org).

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government. OCPA is a public policy research organization whose mission is to formulate and promote public policies consistent with the principles of free enterprise and limited government.

Huckabee, Edmondson Exchange Barbs; Edmondson Criticizes Arkansas For 'Poor Job'

Arkansas Governor Mike Huckabee says his state's poultry industry has been made a "scapegoat" by Oklahoma Attorney General Drew Edmondson. His comments came in Tulsa during the first day of a 2-day tour of Oklahoma on behalf of Republican candidates and his own possible 2008 presidential campaign.

Edmondson, a Democrat, is suing chicken and turkey processors over alleged pollution of the Illinois River watershed. "To single out the poultry industry and make them the scapegoat is also, I think, very offensive to us," Huckabee said of Edmondson's actions.

The industry has spent "millions of dollars of their own resources over the past 20 years to voluntarily push for higher levels of compliance with those strict environmental protections," he said. Huckabee also defended his state's regulation of the poultry industry and called one of Oklahoma's pollution goals "unattainable."

Edmondson fired back, saying that Huckabee is "clearly a poultry company apologist." Arkansas is attempting to intervene in Oklahoma's federal lawsuit against the poultry industry. Edmondson filed the suit in 2005 after 3 1/2 years of negotiations with Arkansas poultry producers. Huckabee characterized the lawsuit as a political act by Edmondson. He said Edmondson "seems totally bent toward making this a platform for his own political future than he does in actually solving the dispute." Edmondson said in a statement that Huckabee "should be ashamed of the poor job Arkansas has done in regulating the poultry industry.

Huckabee's second day, in Oklahoma City, got off to a rocky start when he failed to show for a scheduled 7 a.m. interview on news/talk radio station KTOK.

In Arkansas, the online Arkansas Times reported on Huckabee's long-active political action committee: "One of Gov. Mike Huckabee's trademark slush funds is no more. We learned this week that his chief of staff, Brenda Turner, notified the secretary of state in July that the Conservative Leadership for Arkansas Political Action Committee (CLAPAC) was going out of business." For more details, click here, then go to "News" and read Max Brantley's column.

SD 24: Can Sykes Defeat Democrat Lawler?

A month ago, wags said the Senate District 24 race between incumbent Democrat Senator Daisy Lawler and Republican challenger Anthony Sykes was a close one. Today, they seem less certain.

Earlier, Sykes appeared to be gaining ground based on Lawler's support of a law that provides in-state tuition for illegal immigrants. Some in the district say that today, that issue appears to have run its course.

Lawler now has the endorsement of the National Rifle Association's Political Victory Fund even though Sykes shares the same "A" rating given her. Her endorsement was based on her votes in the Senate on key NRA issues, while Sykes' rating was based on his answers to a questionnaire; the NRA-PVF always gives more weight to actual votes. Result of the NRA endorsement of Lawler is that a key conservative issue, protecting the 2nd Amendment, is not in play.

Lawler also has a decided dollar advantage; her last report, filed in early August, shows that at that time, she had raised $113,400 compared to just $9,000 for Sykes.

Sykes should benefit from a fundraising reception being held tonight at the Yellow Rose Theater in Moore. Special guests are Senate Minority Leader Glenn Coffee and U. S. Senator Jim Inhofe.

The race is one of about half a dozen that GOP leaders have on their list of possible pickups in their quest to take control of the State Senate for the first time in history.

The district has grown more Republican in recent years. Sykes is from the "Republican" north end of the district, Moore and Cleveland County, while Lawler is from the "Democrat" south end of the district, Comanche and Duncan. The district includes parts of Cleveland, Grady, McClain and Stephens counties.

McMahan Releases Credit Card Audit

By Peter J. Rudy, NewsRadio 1000 KTOK

State Auditor Jeff McMahan says the state's credit card system has the potential to be abused by state employees.

But McMahan says discovering how much waste there's been will require looking at every receipt and that will take a long time. McMahan says one agency might have 24 credit cards each with the ability to purchase 25-thousand dollars of goods at a time.

McMahan denies there's any link between the release of this audit and the November election. He says the audit has been five months in the making and he's not going to stop doing his job just because he's up for re-election.

Inhofe On The Stump For Hiett

Republican U. S. Senator Jim Inhofe is on the stump this week for House Speaker Todd Hiett, GOP nominee for lieutenant governor. Details of the tour they'll take indicate they'll cover lots of ground. Hiett faces Democrat State Rep. Jari Askins in November.

Stipe Withheld Own Donation To McMahan Until Last Minute, Campaign Finance Records Show

SEVENTH IN A SERIES ~ To hear some tell it, then-State Senator Gene Stipe of McAlester and his abstracting empire partner, Steve Phipps of Kiowa, were "fund-raising machines" for Jeff McMahan, Democratic nominee for state auditor & inspector, in 2002, but Stipe and his brother withheld their own substantial donations to McMahan until the last minute. The $8,500 in donations are shown as being made on October 23, 2002, meaning they didn't appear on McMahan's finance report until long after the election was over.

Thanks in no small part to the $81,000 (at least) that Stipe, Phipps, their associates and abstract company employees poured into McMahan's 2002 campaign, McMahan defeated two Democratic primary opponents and edged out Republican Gary Jones in the general election. This year's contest is a rematch. Jones resigned as Republican State chairman to challenge McMahan.

Stipe, one of the most controversial characters ever in Oklahoma politics, was under federal investigation in 2002 for his (later) admitted role in funneling an estimated $300,000 of his own money into Walt Roberts' 1998 congressional campaign through straw donors. Stipe later admitted guilt to a string of federal charges, including the admission he tried to cover up what he'd done and lied to federal investigators. He was forced to resign from the Senate seat he'd held for almost 50 years, surrender his law license, and pay the maximum possible federal fine of about three-quarters of a million dollars. His brother, Francis, paid a $35,000 federal fine for his involvement in the scheme and State Rep. Mike Mass paid a $30,000 fine for his involvement.

At the time, Stipe and Phipps owned nine abstract companies centered in southeastern Oklahoma but including one in Stillwater they operated in partnership with a businessman there. The state auditor licenses and regulates abstractors, essentially having life and death control over them. McMahan's campaign finance reports on file with the Oklahoma Ethics Commission reveal, as previously reported here, that 220 abstractors and abstract and title company employees, poured at least $149,000 into McMahan's campaign, much of it in the critical primary election period. Several of the donors were involved in the controversial Rural Development Foundation which is under federal investigation; it was located at the same address as the Stipes-Phipp abstract company there and some of those involved in RDF were abstract company employees. RDF obtained more than a million dollars in state financing and questions are now swirling around how and why that occurred. Some suggest federal investigators are interested in a 2003 meeting allegedly held in McMahan's Capitol office attended by McMahan, Phipps and State Reps. Randall Erwin and Mike Mass. Sources claim the meeting was to discuss appropriations for RDF.

McMahan's finance report for the final election year 2002 period, covering the time frame October 22 to December 31, 2002, lists Stipe as donating the maximum $5,000 and his brother, Francis, as donating $3,500. The report was certified as correct and filed on April 28, 2003 by McMahan's campaign treasurer, Michael L. Doyle. The report's first page erroneously shows it covers the period "11/22/02" to the end of the year when in fact it covers the period 10/22/02 to the end of the year.

Was Stipe trying to hide his donation by waiting until the last minute? "I bet he just didn't want it out there for anyone to use against McMahan," said a veteran of Democrat-Republican wars in McAlester. "Worked, too, 'til just recently," he added, referring to The McCarville Report Online's articles detailing donations to McMahan from Stipe, Phipps and other abstractors. The Oklahoman has reported extensively on the Stipe-Phipps connection, including the revelation, in May, that agents of the Federal Bureau of Investigation had swooped into Phipp's Antlers abstract company/RDF office and confiscated records last April.

2/20/2005 - 8:34:13 PM - Couldn't Make This Stuff Up - Posted By Brandon Dutcher, Oklahoma Council of Public Affairs

Tony Thornton reports today in The Oklahoman: "Former state Sen. Gene Stipe has spent the last year as an economic development consultant to fulfill his court-ordered community service obligation, records show. His work includes lobbying state officials and advising the McAlester economic development board about how to secure state and federal money." The mind reels.

But there's more. The bulk of Stipe's "community service" has consisted of "advising city officials and lobbying to obtain city, state and federal money for three projects: The Tandem Technologies plant, which is planned for construction on land owned by Stipe's brother, Francis Stipe; building an industrial access road that runs past the proposed biotech location and into the Steven W. Taylor Industrial Park, cutting through several pieces of property, including land owned by Francis Stipe; and reopening 60 miles of railroad tracks closed by Union Pacific. The line would provide an alternate source for transporting bomb-making materials....

"Records show Gene Stipe also received community service credit for work on two properties he owns or once owned," Thornton reported.

Apple, Watts Break GOP Ranks To Endorse Democrat Cody Graves Against Bob Anthony

Former Republican corporation commissioners Ed Apple and J. C. Watts broke Republican ranks today and endorsed Democrat Cody Graves in his race to unseat incumbent Republican Commissioner Bob Anthony.

Two of the state’s best known former commissioners, Watts, and Democratic populist Jim Townsend, led the list of former commissioners backing Graves, a release from Graves said.

Besides Townsend, Democrats Hamp Baker, Norma Eagleton, Charles Nesbitt and Rex Privett are supporting Graves.

“I am honored to have the unwavering support of these men and women who have shown, once again, that they are true leaders for the people of Oklahoma,” Graves said. “I am a Democrat and I am proud of it, but the goal of my campaign has been to unite people in a single cause – to protect Oklahoma taxpayers and their interests."

Graves currently runs a company that helps major businesses monitor and reduce their utility costs.

Watts, who also served as Oklahoma’s 4th District Congressman, said, “I have known Cody Graves for years and I believe he is truly the best person to serve as our next corporation commissioner. My decision to endorse and support Cody is based upon Cody’s sincere desire to do more to open commission operations to public review and to strengthen the agency’s consumer protection efforts to ensure taxpayer’s and their interests are protected. To me this is not a decision about which political party a person belongs to, but a decision about what is in the best interest of the people of Oklahoma."

Apple said, “Cody is simply the best man for this job. His experience, his honesty, his ability to fairly judge matters are all reasons I support his election. I’m voting for Cody Graves because we need a new commissioner now more than we ever have before.”

Details Of Phipps' Lawsuit Against Stipe

Web-Posted Sep. 23, 2005 02:19: AM

A former business partner has filed a legal brief alleging former state Sen. Gene Stipe broke federal law by running title insurance companies despite having two felony campaign fraud convictions.

In a counterclaim to a lawsuit filed earlier by Stipe, Steve Phipps alleges Stipe should have known that anyone convicted of a felony crime involving dishonesty cannot own or operate an insurance business because he had been an attorney for more than 50 years. Upon conviction, the crime would be punishable by up to five years in prison.

Court documents don't identify the abstracting and title insurance companies the men own. The state Insurance Department sent Stipe a letter Aug. 10 to notify him the agency had learned of his ownership in the title insurance company and instructing him to fill out an application if he wanted to participate in the insurance business in Oklahoma.

The department's general counsel, Michael Ridgeway, reminded Stipe of the prohibition of certain felons operating an insurance business and told Stipe to contact the agency "if you believe these statutes do not apply to your situation."

Stipe, who served 53 years in the Oklahoma Legislature and was the state's longest serving lawmaker when he resigned in 2003, sued Phipps last month in Pittsburg County District Court and sought to dissolve their partnership.

Stipe, who sought repayment of a $750,000 loan plus damages, claimed he and Phipps formed two corporations -- Phipps Enterprises and Corporate Financing -- with Stipe's money and Phipps failed to perform as promised.

Stipe's attorney, John Carwile of Tulsa, said he hadn't seen the countersuit and had no comment.

After resigning from the Legislature, Stipe pleaded guilty to federal conspiracy and perjury charges in a scheme to illegally funnel money to a Walt Roberts' failed 1998 congressional campaign. He was ordered to pay a $735,567 fine, perform 1,000 hours of community service and serve six months in home detention and five years of probation.

Tulsa Today Still Asking Kathy Taylor Questions About Phipps Deal In Little Dixie

By David Arnett, Publisher of Tulsa Today Sunday, 02 April 2006

Tulsa Today has discovered that Tulsa mayoral candidate Kathy Taylor, in her first year as Oklahoma Secretary of Commerce, used taxpayer money to fund a questionable foundation with close ties to former Democrat state senator and convicted felon Gene Stipe in a purely speculative venture in direct competition with the City of Tulsa.

Using tax money for political purposes is the core of corruption and this case hurts the City of Tulsa directly.

Our search was sparked by candidate Taylor's heavy advertising which touts her abilities as a business manager. So how good is she? Tulsa Today began our inquiry with a search of the public records of the Department of Commerce and specifically how they spend public money. One specific line item with little detail in the 2004 Commerce Department Appropriations Bill implemented under Taylor's authority includes $350,000 to the Rural Development Foundation.

Rural Development Foundation is relatively new (est. 2002) and yet in 2003 gained permission from the Oklahoma Water Resources Board to siphon 25 billion gallons of water from Lake Eufaula each year.

According to an Oklahoma House of Representatives press release dated September 9, 2003, the Rural Development Foundation was "pondering" development of a system that would convey water to communities in Lincoln, Pottawatomie, Okfuskee, Creek, McIntosh, Okmulgee and Seminole counties. Does Oklahoma give money to just anyone for pondering? Could you make a career of pondering?

"We would either deliver raw water to their own treatment plants or reservoirs, or sell them filtered water, or maybe it would be a combination of the two," said Steve Phipps of Kiowa in the press release. He described himself as a consultant to the tax-exempt foundation, which is based in Antlers.

The system envisioned by the foundation probably would include a water filtration plant constructed near a water intake valve that would be installed near the junction of U.S. 69 and Interstate 40, in McIntosh County, Phipps related. "That would enable us to provide potable water from McAlester to Glenpool and from Sallisaw to Seminole," he said. Phipps admitted in the press release that the plan had not advanced beyond the conceptual stage. The City of Tulsa serves water to the City of Glenpool in part with a 36-inch main line extending past 141st Street South. Thus, Taylor's Commerce Department allocation to Rural Economic Development Foundation funds potential competition with and potential reduction of revenue to the City of Tulsa.

The address of Rural Development Foundation office is recorded as 111 Main Street, Antlers Oklahoma. Steve Phipps also owns an abstract business in Antlers, the Pushmataha County Abstract Co., at that same address. According to an Oklahoman story Phipps' business partner is Gene Stipe, 79, a former state legislator currently on probation after pleading guilty to one misdemeanor and two felony counts in a federal campaign corruption case. Stipe admitted he fraudulently put more than $245,000 of his own money into Walt Roberts' failed 1998 congressional campaign and orchestrated a cover-up after coming under investigation. Several members of the Rural Development Foundation's Board are also employees of Phipps/Stipe abstract companies including Pat Payne and Jeanette Lambert.

As Commerce Secretary, Kathy Taylor was responsible for managing the entire Department appropriation, including the $350,000 to this foundation. The question most taxpayers should be interested in is how someone could set up a foundation, quickly secure a water rights agreement and then get that much money from the Commerce Dept with no track record of accomplishments on a purely speculative deal?

Checking further, Tulsa Today discovered that Rural Development Foundation also received $350,000 from the Oklahoma Department of Agriculture, Food, and Forestry in 2004. Further, an agreement between the Department of Agriculture and the Department of Commerce transfers that $350,000 to the Commerce Department effective June 30, 2005. That agreement is signed by Kathryn L. Taylor and dated September 9, 2004. Thus, Rural Development Foundation apparently gathered a total of $700,000.00 in Oklahoma taxpayer funds.

Then-Commerce Secretary and now Tulsa mayoral candidate Taylor was providing public money to Rural Development Foundation. Taylor knew or should have known of the political and business relationships between Rural Development and admitted felon Gene Stipe. Did Taylor know the Foundation planned to compete with the City of Tulsa in the sale of water to the City of Glenpool? If Taylor did not know, then how good a manager was she as Secretary of Commerce for the State of Oklahoma? The intent was published. How good could she be as mayor of the City of Tulsa if her administrative authority is used to reduce Tulsa revenues by encouraging a competing water provider within Tulsa's metropolitan area?

From the public record of her work experience, Kathy Taylor is a lawyer with limited business experience as a corporate counsel. Further business experience could be claimed from Vanguard Car Rental USA Inc., but such appointment would have been made by her husband, William Lobeck, or maybe by her, as it remains unclear how much ownership she maintains in the company.

Her appointment to the transition team and later as Secretary of Commerce for Governor Brad Henry followed significant campaign donations to his election effort.

Tulsa Today made several requests for comment on this story and others from Tulsa mayoral candidate Kathryn L. Taylor, and we continue to await a response. (TMRO Note: And continues to wait today.)

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.

Everyone Wants To Be A Blogger, Says Washington Post Online Editor Len Downie

By David S. Hirschman in Editor & Publisher

WASHINGTON ~ Speaking at the Online News Association's annual convention in Washington, D.C., last week, Washington Post editor Len Downie looked back on the changes in newsgathering and production over the past decade, and listed some of what he thought would be the biggest challenges for news organizations in the near future.

Downie said that when it first became apparent that the Internet would change the news business, executives and editors worried that its influence would erode the quality of journalism, increase competition, and become a distraction for the reporters and editors working on the print edition of the paper. But he said instead that the increased focus on the Web has "improved journalism a lot, way more than we could have expected."

He said that the 24/7 news cycle has changed his newsroom for the better, with reporters always tuned in to what's happening and constantly trying to find stories to report for the Web site -- and that reporters could add more detail because the Web had "unlimited newshole." "I was known for writing long as a reporter, I edit long, and now there's a place to put it all," he said.Reporters love newsroom blogs, said Downie, because they put writers in better touch with their readers: "Everyone in our newsroom wants to be a blogger."

And the blogs that pick apart every article that the Post produces are a good thing, said Downie, because they "keep the paper honest" and, even if their commentary isn't positive, bring people to the site."Blogs are not competitors and not problems," he said. "Instead we have a very interesting symbiotic relationship. Our largest driver of traffic is Matt Drudge.

"While it's true that competition for print media has increased tremendously due to the Web, the Washington Post's overall audience has now become huge compared to what it once was, Downie added. And instead of weakening the paper's brand, as he said it was feared, it has strengthened it and made the Washington Post well known around the world.

Listing some main challenges for the future, Downie worried that as people's attention spans become shorter due to the Web and more readers access news from mobile plaforms on the go, the "contemplative" features of journalism would suffer; he wondered whether online ads would eventually make up the difference from lost print revenue, and whether the results would pay for the kind of professional journalism that people expect; he asked whether edited and verifiable content -- and branded content in general -- would continue to be important.

Downie speculated that perhaps in the future content sharing between old media and new media would be less of a one-way street, with print media taking cues and integrating ideas from multimedia integration and blogs.

David S. Hirschman (dhirschman@editorandpublisher.com) is online editor of E&P.

Bob Burke Chairs Democrats For Fallin

Oklahoma City attorney Bob Burke will chair a growing group of Democrats for Mary Fallin, the Fallin congressional campaign announced today.

Burke, a prolific author who specializes in Oklahoma history and biography, served in the administration of Governor David Boren and managed his Senate campaign in 1978.

He was a key member of the Fallin Commission on Workers Compensation Reform that crafted the first major workers comp reforms in the late 1990s.

“I had the privilege then of working with Mary Fallin on a vital issue, and I was impressed with the fair and thoughtful approach she brought to the task,” Burke said. “It is an honor to help lead and organize so many of my fellow Democrats to support her campaign for Congress.”

“I am thrilled to have Bob’s support,” Fallin said. “He and the other leaders of Democrats for Fallin know that the Fifth District needs a representative who will work for all of the people. As a state legislator and later as Lieutenant Governor, I have worked amicably with many, many elected officials from the Democratic side of the aisle. The mainstream in Oklahoma is conservative and traditional, and that is where I stand.”

Both of Fallin’s parents served as mayor of her hometown, Tecumseh, and were elected as Democrats.

Burke urged Fifth District Democrats who may be voting for their party nominees for other offices to “split your ticket for Mary. She is by far the best qualified and most in-tune with our state and district.”

Poll Finds Some Races Tightening

Photo by Calvin Rees posted on www.demookie.com: Democrats rally at the Czech Festival in Yukon

As anticipated, some races for secondary statewide offices appear to have tightened as election day 2006 nears. A new (October 9th) TvPoll.com measurement for KWTV-Channel 9 follows a late September poll that found some surprisingly close numbers in some races.

The new poll found Attorney General Drew Edmondson at 54.9, with Republican challenger James Dunn at 30.2 percent and the undecided at 14.9 percent.

Labor Commissioner Brenda Reneau had 44 percent to 36.1 percent for Democrat Lloyd Fields with about 20 percent undecided.

Insurance Commission Kim Holland had 36.2 percent to Republican Bill Case's 35.6 percent with 28.2 percent undecided.

Auditor & Inspector Jeff McMahan had 39.5 percent to 35.4 percent for Republican challenger Gary Jones.

Treasurer Scott Meacham had 46.8 percent to Republican Howard Barnett's 34.1 percent with about 19 percent undecided.

Corporation Commissioner Bob Anthony had 45.7 percent to Democrat Cody Graves' 39.1 percent with 15.2 percent undecided.

For an analysis of the results, see Keith Gaddie's comments at www.tailgatepolitics.blogspot.com.

Democrat Expands McMahan Allegations

Lisa Long, longtime Tulsa County Democratic Party activist and former employee of the auditor & inspector's office whose allegations against Auditor & Inspector Jeff McMahan, coupled with those of former employee Dana Webb, spurred The McCarville Report Online's recent series of articles, has posted a lengthy message on the state's top Democratic chat board about McMahan.

TvPoll.com/KWTV Report Henry Maintains Lead Over Istook, Askins Takes Lead Over Hiett

A new TvPoll.com poll taken for Oklahoma City television station KWTV-Channel 9 finds Governor Brad Henry maintains his substantial lead over Republican Ernest Istook and Democrat State Rep. Jari Askins has opened a lead over Republican House Speaker Todd Hiett for lieutenant governor.

The poll found Henry at 59.5 percent, Istook at 33.2 percent and the undecided at 7.3 percent. On September 26th, the last TvPoll found Henry at 55.5 percent, Istook at 33.3 percent and the undecided at 11.2 percent.

In the lieutenant governor's race, Askins had 48 percent to Hiett's 41.3 percent with Independent E. Z. Million at about 1.7 percent and the undecided at 8.9 percent. In September, the race was a dead heat.

Keith Gaddie of TvPoll has posted his analysis of the results at www.tailgatepolitics.blogspot.com.

Rove Appears For Istook

White House adviser Karl Rove says Congressman Ernest Istook is "a leader" who wants to make it "easier to open and operate a business in Oklahoma...wants to make it attractive to create jobs here in Oklahoma...wants to make taxes fair and only necessary." His remarks came during a Monday night fundraiser for Istook at the Oklahoma History Center. It's unknown how much money was raised for Istook's campaign; tickets were $100, reception entry was $500 and the reception and a photo with Rove was $1,000.

Pondering The November Turnout...

The Norman Transcript ~ If the political pundits are correct, the turnout for the General Election a month from today will be something less than pitiful.

The state's election board secretary predicted a lower turnout than four years ago when more than a million voters turned out. This year, for the Primary Election in July, only 24 percent of those registered bothered to vote. In the August Runoff Election, only 17 percent showed up at their polling site.

There are several reasons for the lack of interest, according to some who have weighed in on the matter: The salacious e-mail scandal involving former U.S. Rep. Mark Foley has sickened some voters. The lingering war in Iraq, too, may suppress voter turnout.

Some fear outrage on the federal issues may trickle down to the states. Oklahoma's governor, lieutenant governor and other statewide offices are up for grabs and candidates fear voters will stay home.

But it could work the other way around. Voters could send a message of frustration and concern by turning out in droves.

Those not registered still have a chance. Voters can still register by Oct. 13 at local election boards, tag agencies and Department of Human Services offices.

They can also download forms from the state Election Board's Web site, www.ok.gov/-election/. Voters can register by mail by sending in a copy of their identification. First-time voters who registered by mail will be asked to show their identification the first time they vote.

Gourley: House District 85 Race Is 'Dank's bold reforms vs. Seal's left-wing backers'

J. Leland Gourley, editor-in-chief of Friday, writes that the race for House District 85 in northwest Oklahoma City pits Republican David Dank's "bold reforms vs. (Democrat Jennifer) Seals' left-wing backers."

He writes that Seal's website scrolls the names of those who have endorsed her, "the AFL-CIO, the state teachers union, the OKC local teachers union, the Teamsters union, the leftist environmental organization (Sierra Club). And screaming Howard Dean's 'Democracy for Americans'."

Gourley writes that "Dave makes specific program promises" that conservative voters will embrace. Dank seeks to succeed his wife, Odilia, in the district. He defeated Chip Keating, son of former Governor Frank Keating, in the GOP primary.

Former Auditor Employees Aware Of Edmondson's Ties To McMahan, Employment Of Family Member

Two former employees of the state auditor & inspector's office in Tulsa who allege state laws were broken by state employees on behalf of Jeff McMahan in his 2002 campaign apparently did not take their complaints to Attorney General Drew Edmondson because they were aware of Edmondson's close ties to McMahan and McMahan's hiring of Edmondson's niece on his staff, The McCarville Report Online has been told.

The women, Dana Webb and Lisa Long, have alleged the Tulsa auditor's office became an adjunct campaign headquarters for McMahan once he won the Democratic nomination in 2002 and faced Republican Gary Jones. They say state property was misused for campaign purposes and that donations for McMahan were solicited and collected on state property in violation of state law.

With their allegations just now seeing the light of day, some have asked why they waited so long and why now, a month before this year's election featuring a rematch of the McMahan-Jones race of 2002, are they just making their 4-year-old allegations public. In a Saturday morning program on Oklahoma City radio station KTOK, station Capitol Correspondent Bill Bateman asked why the women hadn't taken their complaints to Edmondson.

"They didn't trust him," a source said Monday. The source said the women were leery of Edmondson because he had supported McMahan and they had been told McMahan had hired a member of Edmondson's family on his staff; the women confirmed that. In addition, they say they knew Edmondson and McMahan were "hunting buddies." Long said today, "Sure we knew all about that."

The family member is identified as Erin Edmondson, a niece who is described as a skilled computer expert on McMahan's staff. Insiders claim that Edmondson helped McMahan's sister, Joni Kidney, find a job in state government in the Department of Agriculture. Kidney is now listed as the contact for the Department of Central Services' Property Distribution Division.

A Democratic Party source, asked about the Edmondson-McMahan connection early today, confirmed that Erin Edmondson works for McMahan, and has since shortly after McMahan's took office in January 2003. He defended Edmondson and added that if the women had gone to Edmondson with their allegations, he probably would have sent them somewhere else to recuse himself from an investigation given his family tie to McMahan and their close association. The source said the Ethics Commission probably would have been the entity Edmondson would have recommended.

The McMahan controversy is a hot topic on the Democratic forum, www.demookie.com, where some posters are critical of the two former employees; as usual, some of the posters don't have a clue what they're writing about and don't seem inclined to find out.

SD 18: Can Easley Stave Off Wofford's Challenge?

State Senator Mary Easley is in a battle to keep the Senate District 18 seat in Tulsa she now holds and her challenger is Republican Mark Wofford of Wagoner. The race is one of six or seven that Republicans view as key to their efforts to take control of the State Senate this year and thus, the Democratic and Republican parties alike are pulling out all the stops to help their candidates.

Republicans recently said Easley's campaign was in such trouble that Governor Brad Henry dropped everything and made an "emergency" visit to tout Easley at a Wagoner fundraiser. Not so, says Henry's spokesman. He says the Henry visit was on the governor's schedule for two weeks before the event.

Democrats have spread word that Wofford is such a weak candidate he is "stumbling all over himself" in his race. Republican sources and several inside the district, however, say that's false and that Wofford, much younger than Easley, is waging an aggressive, door-to-door, in-the-trenches campaign that they believe will propel him to victory. Wofford ran for the House District 12 seat in 2004 and lost a close race to Democrat Wade Rousselot; Rousselot won by just 1.6 percent, or 239 votes.

Easley got a boost last week when the National Rifle Association's Political Victory Fund, which gives Wofford an "A" grade on 2nd Amendment issues, endorsed Easley and gave her an "A+" rating on gun issues. Easley also has been endorsed by the Tulsa World.

Easley had a huge fundraising lead based on their last campaign finance reports; she reported having raised $72,000 through early August, and had spent $37,000. Wofford reported having raised $13,700 and had spent $10,500.

Democrat Bloggers Criticize Auditor & Inspector Jeff McMahan Over Lawsuit Reform Fundraiser

State Auditor & Inspector Jeff McMahan, Democrat, is being criticized on the state's top Democrat Internet forum, www.demookie.com, for his involvement in an October 3rd fundraiser for Oklahomans For Lawsuit Reform. The event was held at the home of prominent Republicans Bob and Nedra Funk in Yukon. The invitation lists 11 elected officials; McMahan is the only Democrat listed.

A post on the forum from "Tulsa Trial Lawyer" describes the Republicans on the invitation as "evil people" and adds, "McMahan will NEVER...get my vote."

Another well-known Democrat said, "I'm shocked and disappointed."

"1968 Activist" wrote, "What the hell is McMahan doing fundraising for tort reform?"

The invitation for the event lists Democrat McMahan with these Republicans: U. S. Senator Jim Inhofe, U. S. Senator Tom Coburn, Congressman Ernest Istook, Lt. Governor Mary Fallin, House Speaker Todd Hiett, House Speaker-Designate Lance Cargill, Corporation Commissioner Bob Anthony, Corporation Commissioner Denise Bode, Senate Minority Leader Glenn Coffee, and Senator Harry Coates.

The comments began when the forum's administrator posted a copy of the invitation and noted McMahan's involvement.

Fallin Campaign Uses Internet Site Ads

Lt. Governor Mary Fallin is using advertisements on Internet sites in her campaign to become the next member of Congress from the 5th District. The ad pictured here was taken from her hometown (Tecumseh) newspaper's site.

Televised Political Debates Listed

There will be four televised political events of interest in the final three weeks of the election year, three of them debates between Governor Brad Henry and challenger Ernest Istook. The fourth features Lt. Governor Mary Fallin and Democrat Dr. David Hunter, candidates for Congress in the 5th District. Here's the list of scheduled events:

October 17th, 5-6 p.m., KSWO-Channel 7, Lawton, Henry and Istook, sponsored by the Lawton-Ft. Sill Chamber of Commerce and held at Cameron University.

October 19th, 7-8 p.m., KFOR-Channel 4, Fallin and Hunter, Rose State College, Midwest City.

October 23rd, 7-8 p.m., KOCO-Channel 5, Henry and Istook, sponsored by AARP Oklahoma, Nigh Center, University of Central Oklahoma, Edmond.

November 2nd, 7-8 p.m., KFOR-Channel 4, Henry and Istook, sponsored by the Midwest City Chamber of Commerce, Rose State College, Midwest City.

Tulsa World Endorses Meacham

The Tulsa World today endorsed Democrat Scott Meacham for state treasurer. Meacham faces Republican Howard Barnett of Tulsa. Meacham was appointed to the post by Governor Brad Henry when Treasurer Robert Butkin resigned to become dean of the Law School at Tulsa University. The editorial said Barnett is qualified, but the newspaper's nod goes to Meacham for the work he's done since being appointed.

Photo of Meacham and family with supporters at Saturday's Czech Festival in Yukon from www.demookie.com.

KTOK Capitol Correspondent Says Auditor Revelations Have Prompted 'Contributions from strangers' To McMahan Campaign

Revelations about the sources of his campaign money and allegations by two former employees of the Tulsa auditor & inspector's office have prompted "contributions...from strangers" to Auditor & Inspector Jeff McMahan's campaign, radio station KTOK's Capitol correspondent, Bill Bateman, asserted Saturday on the station's weekly program, "News Studio B."

Bateman told host Jerry Bohnen, the station's news director, that there is no evidence of campaign activity today within McMahan's State Capitol office even though no one had made such an assertion. Earlier this week, former Tulsa District Manager Dana Webb alleged the Tulsa office became an adjunct campaign headquarters for McMahan in his 2002 campaign. Former employee Lisa Long, a longtime and well-known Tulsa County Democratic party activist, corroborated Webb's allegations, which include the solicitation of donations by other employees within the office from employees and others, the sale of campaign t-shirts and the use of state equipment to print campaign materials. Webb was fired by McMahan in January 2003 shortly after he took office because, she said, she supported one of his Democratic primary opponents and then supported Republican Gary Jones, McMahan's opponent again this year. Long resigned in August of 2002 because, she said, she told McMahan she would not support him and realized her future in the office was thus bleak. She is now an executive with the Cherokee Nation Casino & Resort and is helping Governor Brad Henry and other Democrats in their campaigns.

Asked by Bohnen about responses by McMahan to Ethics Commission reports that show McMahan has accepted 581 donations from his office's approximately 165 employees over the past five years (and the implication they gave under pressure), Bateman replied, "He says it's a lie." Bateman said an unnamed McMahan campaign official told him that many of the donations listed are for $10 t-shirt sales. Bateman did not indicate he checked McMahan's campaign reports to verify that. TMRO did check the reports; they do show 29 donations this year that are in amounts ($10, $20, $30) that could be payment for campaign t-shirts; the 29 donations are among more than 100 employee donations this year that total about $17,500, or an average of about $175 per employee donation.

Bateman said he is in the auditor's Capitol office daily and, "there is not a McMahan anything in there," he said. "I cannot speak with authority" about his other offices, he added. He said McMahan said the allegations by Webb are "bogus." Bateman seemed unaware that Long had corroborated Webb's allegations. He said McMahan said that when he took office, the Tulsa office was three years behind in audits, the implication being Webb was responsible. Tape recordings made by Webb of conversations reveal she discussed the audits with McMahan and in those tape recordings, he blamed other employees in the office for the "mess" the Tulsa office was in. Bateman seemed unaware of the existence of the recordings even though their content was detailed in stories on The McCarville Report Online.

Bateman said the question is, "If you're accusing somebody of criminal wrong-doing...pressuring campaign contributions on company time, in a state office, using state equipment and using state personnel, that's criminal." He said "it never went to the attorney general in the form of a complaint...."

Bateman continually mentioned that the allegations were against McMahan himself, even though that is not the case; the allegations leveled by Webb and Long involve employees in the Tulsa office. They have not accused McMahan personally of anything, other than "chasing" donations from abstractors that he regulates and using the Tulsa office to make contact with office employees on campaign matters. Bateman seemed unware of that important distinction.

Bateman said that "six months ago" Jones tried to "unload that story (the allegations) and failed on two occasions to supply the promised documentation, transcripts, tapes and so on about the conversations that allegedly took place between Jeff McMahan and Dana Webb."

Bateman said the question is, "From what source do these (allegations) spring?" Bohnen said they came from Dana Webb and Lisa Long.

Bateman said the allegations are "having a very bizarre effect...it's raising contributions to the McMahan campaign from strangers." McMahan's next campaign finance report should reveal whether that's true.

Article Details FBI Probe Of McAlester Foundation

By David Arnett in Tulsa Today Monday, 12 June 2006

The daily newspaper has again shown what it takes for them to follow a Tulsa Today story – The Oklahoman and the Federal Bureau of Investigation (FBI). We have been laughing about that for several months, but that is not all that goes on behind the scenes. Sad though it may be, it is not the politicians that have been bad for America – it is the media and, most recently on the Tulsa scene, cults of personality promoted by some pundits.

Published by Tulsa Today on April 2, 2006, a story titled, “Kathy Taylor/Gene Stipe Questions” called national attention to the state funding of a shady organization called the Rural Development Foundation. In 2003, the Foundation gained permission from the Oklahoma Water Resources Board to siphon 25 billion gallons of water from Lake Eufaula each year. On Sept. 9, 2003, Foundation spokesman and consultant Steve Phipps said Oklahoma tax money should go to the group for “pondering” a water delivery system.

We asked then – as we ask now – about a career of pondering. Does the University of Oklahoma offer a degree path in pondering? Every writer on this staff is convinced they could be successful as professional “ponderers” and, apparently, the Oklahoma Legislature will fund pondering at a much higher rate than good journalism earns.

The Oklahoman covered the story in a front page exclusive on May 22 of this year as the FBI investigation became public. No fact of the Tulsa Today story was found to be incorrect, but that publication dug deeper, reporting that the Foundation has received at least $1.1 million of tax money since 2002. Further, Foundation officials never provided the state Commerce Department with a final report showing how it spent the money. They also have not returned any of the agency’s phone calls or letters since November 2004, commerce attorney Don Hackler told The Oklahoman.

The Foundation’s Steve Phipps is a known associate/partner of Gene Stipe, 79, a former state legislator currently on probation after pleading guilty to one misdemeanor and two felony counts in a federal campaign corruption case. Stipe admitted he fraudulently put more than $245,000 of his own money into Walt Roberts’ failed 1998 congressional campaign and orchestrated a cover-up after coming under investigation.

FBI agents raided the Stipe/Phipps’ abstract business in Antlers, which was also listed as the office for the Foundation on April 20, according to an article in The Oklahoman that quoted Vicki Rust, who works in a law office across the street. They wrote that she was delivering documents to the company when a half-dozen law officers entered.

“They just asked everybody to stop what they were doing and step away from the computers, “Rust told The Oklahoman. “I thought it was a big joke until somebody laid a badge down.”

Loveless Puts OKGOPChat.com On Market

Kyle Loveless, creator of the Republican blog OKGOPChat.com, has posted a message offering it for sale. Loveless writes he's become tired of the "hassle" of the site and will accept offers for it. Loveless operates Phoenix Consulting and is co-host of the "Tailgate Political Hour" on Oklahoma City radio station KTLR-AM 890 that airs from 4 to 5 .m. Monday-Thursday. He is a former assistant to Congressman Ernest Istook.

Democrat Blog Rips Whetsel, Lane Fundraiser

Demookie.com, popular blog visited regularly by dozens of posters, rips Oklahoma County Sheriff John Whetsel, a Democrat, and Republican Oklahoma County District Attorney Wes Lane today for a planned Lane fundraiser that is being staged by Whetsel and "members of the Oklahoma County DA Staff."

A poster on the site questions the propriety of Lane's staff members participating in the fundraiser given reports on The McCarville Report Online about employee donations to State Auditor & Inspector Jeff McMahan.

Lane said this afternoon that he is "not hitting up my staff" for donations. He said the event is for previous contributors who might want to donate again. He said he has returned one donation check to a staff member when he found out it had been offered; he added that several, however, were accepted by his campaign and deposited before he knew about them. "I just don't pay attention to them (contributions)," he said. Lane has about 150 employees on his staff.

Lane's campaign finance reports on file with the Oklahoma Ethics Commission list three employee donations totaling $700 thus far in 2006.

The fundraiser is a golf tournament at the Greens Golf & Country Club on Monday at 8 a.m. Monday is a holiday when county employees are off. Gold sponsors are expected to donate $1,000; silver sponsors are $500; bronze sponsors are $300; individuals are $200.

Huckabee Plans 2-Day Oklahoma Tour

The Oklahoma Republican Party announced Friday that Arkansas Governor Mike Huckabee will conduct a two-day tour of Oklahoma next week to benefit the state party's efforts to support GOP candidates.

Huckabee is considered a possible candidate for the Republican nomination for president in 2008.

Huckabee's tour begins Wednesday with a five-kilometer run in Tulsa at 7 a.m. Later, he will participate in press availability at the Doubletree-Warren Place Hotel (Parkview West Room) in Tulsa at approximately 10:15 a.m.

Other activities include a noon luncheon in Bartlesville and two afternoon receptions; one in Pawhuska to benefit Eddie Fields, Republican candidate for House District 36, and one in Sapulpa for Brian Bingman, Republican candidate for Senate District 12. That evening he will headline a roundtable session, reception and dinner at the Doubletree Hotel to benefit the Oklahoma Republican Party.

The morning of October 12th, Huckabee will host a breakfast in Oklahoma City for his PAC, Hope for America, followed by a reception in Del City for Rex Barrett, candidate for House District 94. For lunch, Huckabee will headline a roundtable session in Norman on behalf of the state GOP. His schedule will conclude with an afternoon press conference in Oklahoma City on the steps of the State Capitol.

Huckabee became Arkansas' 44th elected governor after winning the November 1998 election with the highest percentage of the vote ever received by a Republican gubernatorial nominee in Arkansas. He was elected to another four-year term in November 2002.

Huckabee is the immediate past chairman of the National Governors Association and the past chairman of the education commission on the states. Among his other roles, he previously served as chairman of the 37-state Interstate Oil and Gas Compact Commission. Huckabee was named "Public Official of the Year" by Governing magazine in 2005. He was also recognized by Time as one of the top five governors in the country.

Currently ranked as the second-most senior governor in the country, Huckabee is recognized as a national leader in health care reform. One of several key initiatives, the governor created the ARKids First program, a initiative that provides health insurance to tens of thousands of children who previously had no access to health coverage. He also led a ballot initiative in 2000 that devotes all of the state's tobacco settlement money to improving the health of Arkansans.

Huckabee's efforts to improve his own health have received national attention as well. Diagnosed with Type II diabetes in 2003, he lost 110 pounds.

Earlier this month, Huckabee was asked to participate in a national get-out-the-vote effort sponsored by the Republican National Committee. He has campaigned on behalf of GOP candidates, state parties and organizations. Through his PAC, Hope for America, he has visited more than 20 states, including Oklahoma.

Fallin Refuses Employee Donations Because She's 'Never felt comfortable' In Accepting Them

Lt. Governor Mary Fallin, the Republican nominee for Congress in the 5th District, refuses to accept campaign contributions from members of her office staff because she's "never felt comfortable with taking contributions from staff," her campaign manager told The McCarville Report Online today.

Denise Northrup was asked about Fallin's position on employee donations because her campaign finance reports do not list a single employee as a donor, in contrast to the reports of Auditor & Inspector Jeff McMahan, whose reports show he's taken 581 separate donations totaling $96,000 from 164 office employees.

Northrup said, "It's just something she doesn't do."

NRA's Henry Endorsement Letter

Oklahoma City (From The Governor's Office) - The National Rifle Association has endorsed the re-election bid of Gov. Brad Henry. The letter of endorsement, signed by NRA State and Local Affairs Director Randy J. Kozuch, was delivered to the governor today.

"I am thankful for the endorsement and support of the National Rifle Association and its thousands of members in Oklahoma and around the nation," Gov. Henry said. "The NRA plays a vital role in protecting the freedoms granted by the Second Amendment, and I am pleased the NRA recognizes the work of my administration and our strong support of the Second Amendment."

Gov. Henry, an avid hunter and fisherman, has consistently protected the rights of gun owners. While in the State Senate, he voted for Oklahoma's concealed carry law. More recently, he signed the Stand Your Ground Law, protecting the Castle Doctrine and preserving the right of Oklahomans to defend themselves whenever they are threatened with deadly force. Gov. Henry also signed a law prohibiting state officials from seizing the firearms of lawful citizens during an emergency, and he opposes a state handgun licensing law.

"You have proven to be a close ally and friend of Oklahoma's freedom-loving firearm owners by signing the nation's first bill to prohibit employers from banning locked, lawfully-owned employee firearms in company parking lots and by also signing Oklahoma's 'Stand Your Ground' bill giving law-abiding citizens the right to protect themselves and their loved ones," Kozuch writes in the letter.

"This strong record of service as Governor of Oklahoma clearly illustrates your commitment to protecting the rights of law-abiding firearms owners and sportsmen."

Gov. Henry has an A rating from the National Rifle Association. He has also been endorsed for re-election by the Oklahoma Rifle Association.

"Throughout my time in public office, I have sought to protect our right to bear arms," Gov. Henry said. "As a lifelong Oklahoman and sportsman, and as a husband and father, I know how vital our Second Amendment rights are to our safety, our freedom, and our way of life."

Former Employee Says McMahan Chased Abstractor Donations In Successful 2002 Campaign

FIFTH IN A SERIES ~ A former employee of the State Auditor & Inspector's office in Tulsa tells The McCarville Report Online that Jeff McMahan personally chased donations from abstractors in his 2002 campaign. The auditor & inspector regulates abstractors and issues their certificates of authority to do business. She said McMahan ended one meeting so he could get to an abstractor's office "to pick up a check."

Lisa Long, a longtime Democratic Party activist who now works for the Cherokee Nation Casino & Resort, said she is breaking her silence over what she witnessed in the auditor's Tulsa office because "there's a need to know" about what she and others observed about campaign activities centered around the Tulsa office once McMahan became the Democratic nominee. At the same time, Long is a fierce defender of her former boss, Clifton Scott, whom McMahan replaced, and said Scott always was careful to avoid even the appearance that office employees and state property were being used for political purposes. Scott was auditor & inspector for 20 years and now heads the Oklahoma School Land Commission.

Another former employee, Dana Webb, was district manager of the Tulsa office in January 2003 when McMahan fired her for supporting other candidates, Democrat John Fodge and then Republican Gary Jones, for the office. Webb's allegations of questionable campaign use of the Tulsa office spurred this week's TMRO examination of McMahan's campaign finance reports and the discovery that he has received 581 separate donations totaling almost $96,000 from his office's 164 employees.

That examination of McMahan's campaign finance reports also revealed that he has received 220 donations totaling $149,000 from abstractors, who are licensed and regulated by the auditor & inspector. Much of his early abstractor support, in 2002, came from disgraced former State Senator Gene Stipe and his then-abstract company partner, Steve Phipps of Kiowa, their associates and employees of their nine abstract companies. (For more background, see previous articles this week.)

A well-known Oklahoma Democrat said he recalls that McMahan has seemed "obsessed" with donations from abstractors. "He said once there's a lot of cash out there and 'I'm gonna get it,'" he recalled in a "don't use my name yet" interview with TMRO. Long recalled that during the meeting in Dodd's office, McMahan complained that his opponent, Jones, was talking about abstractor donations to McMahan. McMahan made the remark that "only 24 percent" of his contributions were from abstractors.

Long, who has been active in Governor Brad Henry's campaigns, and the campaigns of other top statewide and local Democrat candidates, corroborated Dana Webb's account of political activities in the Tulsa office after McMahan won the Democratic nomination, and said that during a late August 2002 meeting at the offices of 1st congressional candidate Doug Dodd in Tulsa, McMahan was impatient to leave that meeting to pick up a check from an abstractor. She said, and a secret tape recording of the meeting confirms, that he complained that he'd had to "beg" abstractors for donations and then had to "work" abstract company employees for donations, going back to them time and again. In the secret recording of the meeting, one of the women says, "But abstractors have been very good to us," and laughter followed. McMahan said he didn't know where one Tulsa abstract company was located and those in the meeting got a phone book, looked up the street address, and gave it to him. He said he had to leave to make sure he could pick up a check by 4 p.m. The name of Buffalo Abstract Company was mentioned by McMahan.

Long said she resigned from the auditor & inspector's staff after 15 years of service in September 2002 and later went to work at the casino because she could not support McMahan and knew her future there if he won was bleak. She recalled an incident in which he came into her office and closed the door behind him: "He said 'I need you on my team,'" she recalled. "I told him I just couldn't do that. He said it again and he had that look on his face...so I knew I had no place there." State law prohibits retaliation against a state employee for declining to engage in political activities. McMahan said this week that since he left the auditor & inspector's payroll in April 2002 to campaign, he could not have had an influence over office employees. However, Long and Webb say he frequently was in the Tulsa auditor's office after that time and came and went as he pleased, often interacting with, or conferring with, employees.

Despite that, the two women say, McMahan was dismissive of the quality of the Tulsa staff during their meeting at Dodd's headquarters. They recall him saying that the "group" in Tulsa "doesn't work" and "isn't a fit." The secret recording includes a lengthy discussion of the Tulsa office staff and McMahan's comments about their work.

During the conversation, the recording reveals, McMahan made it clear that Jim McGoodwin, then the auditor's director of special investigations, was making personnel changes "before Clif leaves," the implication being that changes were being made by McGoodwin on his own; McMahan said McGoodwin had made some "rash decisions" and that "even Clif doesn't know what he's doing," they recalled McMahan saying. McGoodwin now is McMahan's deputy state auditor and general counsel. The women cited the comments on the secret recording as evidence of their belief that once McMahan won his party's nomination, Scott effectively lost control of the far-flung auditor's operation and the Tulsa office became, essentially, an adjunct campaign headquarters.

Long said that after McMahan became the Democratic nominee to succeed Scott, "the whole atmosphere (inside the Tulsa office) changed...more political." She said Scott always insisted that any political work not be done on state time and that there was to be no use of state property for any campaign purpose. "That all changed," Long said. She said she, like Webb, witnessed the use of a state copier and copy paper to produce materials for fundraisers, that several employees openly solicited donations for McMahan inside the office, that fundraisers for McMahan were often planned by some in the office and that campaign t-shirts were sold inside the office to employees and others. "All that is true, what Dana said," she added. All such activities are banned by state law. Under state law, however, there is a 3-year statue of limitations on prosecution, so any investigation of those activities, as requested Thursday in an interview with radio station KTOK by Republican auditor & inspector nominee Gary Jones, could not include these allegations.

McMahan, in an interview with KTOK that aired early Friday, described TMRO's reports on his fundraising as a "smear" campaign.

Inhofe, Finnerty Uninjured In Plane Mishap

U. S. Senator Jim Inhofe and his spokesman, Danny Finnerty of Tulsa, escaped injury Thursday night when the prop on Inhofe's single-engine airplane hit a runway. The two had just landed at Jones Riverside Airport and were taxiing when the incident occurred. It's not the first plane mishap involving Inhofe, a veteran pilot who logs hundreds of flight hours each year. A few years ago, Inhofe lost a propeller while in flight and made a successful emergency landing.

Jones Questioned McMahan's Reports Months Ago

By State Report in David Arnett's Tulsa Today Friday, 30 June 2006

The Oklahoma State Auditor and Inspector’s race intensified this week as Gary Jones, Republican candidate questioned the ethics reports of his opponent State Auditor Jeff McMahan.

“McMahan’s numbers just don’t add up,” said Jones, a Certified Public Accountant. “It is not uncommon to make mistakes filling out ones ethics reports but the auditor’s numbers are off by over $70,000.00.

Jones offered a detailed recap of McMahan’s final report of his 2002 campaign reporting. Jones said the report shows McMahan had total monetary receipts of $364,464.16 (line 10 form C1R) and had expenditures made of $289,880.02 (line 17 form C1R). Based upon those numbers, Jones said the fund balance should be $74,584.14 on line 25 of the report. Jones noted that the actual figure on McMahan’s report is $2,573.59 – a difference of over $70,000.00 The $2,573.59 figure was carried forward and reported as the starting balance on McMahan’s 2006 campaign.

Jones pointed out that by McMahan not carrying forward a figure of $79,806.00 listed as an independent expenditure on an earlier report could account for one possible reporting error. “However, that presents an even bigger problem for the State Auditor since independent campaign expenditures are prohibited and illegal from candidate committees,” Jones continued. Jones also noted that according McMahan’s 2002 campaign report, as of March 31, 2002, McMahan had raised $99,169.00 and spent $17,072.16 leaving him a balance of $81,989.79. McMahan’s March 31, 2006 report shows he has raised $204,122.19 but only had $52,559.39 funds remaining, indicating McMahan is showing to have spent over $150,000.00 compared to just over $17,000 at the same time four years ago, Jones said. “This becomes of real concern when one notes the number of expenditures for personal reimbursements to both Jeff McMahan and his wife,” Jones added.

“I believe how a candidate manages their finances in a campaign and how they report them is very important. Jeff McMahan should immediately correct his math and acknowledge his poor bookkeeping to the Oklahoma Ethics Commission,” Jones said.

Jones Calls For McMahan Investigation

By Jerry Bohnen, NewsRadio 1000 KTOK Thursday, October 5, 2006

The revelations of huge numbers of campaign contributions by employees of State Auditor and Inspector Jeff McMahan to his re-election bid prompt his Republican opponent Gary Jones to call for an official investigation.

"I think it's time for some type of investigation," said Jones in an interview with KTOK News. "I don't know whether it's Ethics or whether it's some other type of investigation. But I think there are some very serious allegations here which need to be looked at."

Jones, the former State Republican party chairman and former candidate for State Auditor and Inspector is referring to a review of the contributions published this week by The McCarville Report Online. In the series of reports, it was revealed the 164 persons who work at the State Auditor's office had made 581 separate contributions to McMahan's campaign in the past five years. More than 180 of those contributions were made in the past year as McMahan started his re-election campaign.

"The large number of contributions and particularly the pattern of contributions I think is something that is very disturbing and quite obviously needs to be looked at," continued Jones, who suggests it appears the workers are under pressure to give money to McMahan's campaign. He wants an official state investigation "to come in and look at and get people under oath and get their testimony because some very serious allegations have been made."

He went on to say the problem is the pattern of contributions: "When you look and see that there are large amounts of contributions made on particular days and then you find out those days correspond with required meetings that the employees would have to attend----." Jones promised if he is elected he would prohibit contributions by State Auditor's employees to his campaign. "That way you would remove any doubt," he said.

NRA Releases Letter Endorsing Henry

The National Rifle Association, representing hunters and sportsmen across the United States, has endorsed Governor Brad Henry for reelection as it did in the primary election period.

"I am grateful to the National Rifle Association for their continued support," Gov. Henry said. "Oklahomans treasure the right to bear arms and, as a lifelong hunter and sportsman, I understand how crucial the second amendment is to our culture, our way of life, and our freedom."

In the letter of endorsement the NRA's Chris Cox, executive director of the NRA's Institute for Legislative Action wrote to Gov. Henry in the primary, he said, "Your exemplary record of service as Governor of Oklahoma clearly illustrates your commitment to protecting the rights of law-abiding firearm owners and sportsmen. You have proven time and again to be a close ally and friend of Oklahoma's freedom-loving firearm owners."

The governor has also been endorsed in the general election by the Oklahoma Rifle Association and has an A rating from the NRA.

Who Loves Jeff McMahan? 220 Abstractors Have Showered Him With $149,000 Since 2002

Stipe, Phipps And Associates Were Big Donors In 2002 Campaign Before Stipe's Federal Felony Conviction; 88 Abstractors Had Donated $67,710 To McMahan's 2006 Campaign As Of Early August

FOURTH IN A SERIES ~ State Auditor & Inspector Jeff McMahan, who has life-and-death control over the certificates of authority for abstract companies to operate, has received about $149,000 in donations from 220 abstractors and abstract company employees for his 2002 and 2006 campaigns.

Abstractor support of McMahan began in his first campaign for the office in 2002, when 132 abstractors and employees in their offices donated $81,000 at critical times in McMahan's campaign. A large part of the total came from then-abstract company partners Gene Stipe and Steve Phipps, who owned nine abstract entities doing business mostly in southeastern Oklahoma, and their associates and employees. Stipe, the Democrat former state senator forced to resign and surrender his law license after conviction on federal felony counts tied to illegal congressional campaign contributions, perjury, conspiracy and trying to obstruct a Federal Election Commission investigation, formed the companies with Phipps, of Kiowa. The two split and at last report were faced off in a legal battle instituted by Stipe last year.

The auditor and inspector oversees abstract companies and abstractors, issuing and renewing individual licenses and permits and certificates of authority. His office compiles the state directory of abstract companies, officials and owners upon which The McCarville Report Online's analysis of abstractor donations to him was based. He can take action to censure, revoke or suspend abstract company certificates of authority to operate and is required by state law to take action against any abstract company if a principle is convicted of a state or federal felony. Thus, when Stipe was convicted, the law required McMahan to seek to revoke the certificates of authority for the nine firms in which Stipe and Phipps were were partners. (Today, Phipps is listed as involved in abstract companies in Hugo, Stigler, Wilburton, Idabel, Pawnee and Antlers.) Prior to the revocation filing, the Stipe-Phipps connection to McMahan proved beneficial to McMahan; a computer-assisted review of donors to McMahan's 2002 campaign reveals that Stipe, Phipps and their abstract company associates poured approximately $75,000 into the campaign, much of it in the period leading up to the Democratic primary in which McMahan faced two opponents. Stipe and Phipps each gave the maximum, $5,000. Stipe's former longtime secretary, Charlene Spears, also implicated in the federal criminal investigation against Stipe, gave $3,000. Stipe's brother, Francis, gave $3,500. A partner of Stipe and Phipps in several abstract companies, Larry Witt of Stillwater, gave $5,000. There are approximately 50 donations that can be tied to Stipe, Phipps, Witt and their associates or employees or with an entity known as the Rural Development Foundation, formed by Phipps with the same address as an abstract company owned by the pair. The foundation has been in the news because of a controversy over the construction of a dog food factory in McAlester that, despite big promises, never got off the ground, and because of Stipe's involvement in it. The manager and an owner of the dog food factory are listed as the donors of $8,000.

The state auditor's office also is involved in the administration of the state's Rural Economic Action Plan (REAP) and development projects that sometimes involve land transactions that require abstracts and titles.

Legal documents identify the 2002 Stipes/Phipps/Witt abstract companies as Latimer County Abstract Company in Wilburton, Oklahoma Abstract and Title Company in Stillwater, Choctaw County Abstract and Title Company in Hugo, Payne County Title Company in Stillwater, Guaranty Abstract Company in Stigler, Meurer Abstract and Title Company in Stillwater, Southern Abstract and Title Company in Idabel, University Land Title Services in Stillwater, and Pushmataha County Abstract Company in Antlers. Phipps was listed as the president of all the companies at the time.

McMahan donations from those tied to the companies range from $300 to the $5,000 maximum. Many of them are in amounts of $1,000, $2,000, $2,500 and $3,000 given on the same date.

Thus far in his 2006 reelection campaign through August 10th, McMahan reports he's received $67,710 from 88 abstractors. Eleven are listed on his last Ethics Commission report as having given $8,550 in the period July 11th to August 10th.

Abstractors have done more than just donate to McMahan; they've been active fundraisers for him. On August 17th, at a meeting of the Oklahoma Land Title Association, it was announced that "receptions" for McMahan would be held on August 24th and September 12th. The September reception was at the office of American Guaranty Title in Yukon, hosted by abstractors Mark Bilbrey and Chaney Haynes, donors of thousands of dollars to McMahan's campaign.

McMahan's most recent Ethics Commission report lists donations from J. Herschel Beard of Madill, owner of Marshall County Abstractors, $200; Sharon Gotcher Adams of Coyle, Pioneer Abstract Company, $2,000; Wade Rice of Watonga, Blaine County Abstract Company, $500; Dave Faulkner of Claremore, president of Rogers County Abstract Company, $750; Patsy Cravens of Tulsa, Tulsa Abstract and Title Company, $500; Dax Junker of Tulsa, company not listed, $600; Joe Robinson of Tulsa, $750; Robert Getchell of Tulsa, $750; Title Services of Oklahoma LLC of Tulsa, $750; Todd Humphrey of Enid, First American Title Company, $750; and Clifford Cox of Edmond, Capitol Abstract Company, $1,000. The last seven donations were made on the same date, July 19th.

McMahan's report for January 1st to March 31st, 2006, lists donations from Sharon Gotcher Adams of Coyle, Pioneer Abstract Company, $1,500; Danita Francis of Stillwater, company not given, $500; Sharon Gotcher Adams of Coyle, Pioneer Abstract Company, $1,000; Steven Boone of Ponca City, Security Abstract Company, $1,000; Ben Crawford of Frederick, Crawford Abstract Company, $100; and Vernon Merrifield of Newkirk, Albright Abstract Company, $500.

McMahan's report for April 11th to July 7th, 2006, lists donations from Marty Askins of Duncan, company not given, $10; Charles Nichols of Chandler, $10; Beverly Jones of Jay, Grand River Abstract & Title Company, $1,000; Jim Blevins of Oklahoma City, Purcell Abstract Company, $2,500; and Connie Dixon of Oklahoma City, Oklahoma City Abstract & Title Company, $500.

The abstractor registrar in McMahan's office is J. Tim Arbaugh.

Next: Chasing those dollars

Jeff McMahan photo from mcmahancan.com.

Oklahoman Reports Istook Aide May Be Victim

The Oklahoman reports that the deputy campaign manager for Congressman Ernest Istook's gubernatorial race may be a victim in the growing page scandal in Washington. The newspaper's copyrighted story says the former page is Californian Jordan Edmund, 21. It also reports that Edmund has hired Enid attorney Stephen Jones to represent him; Jones confirmed that. It is not known why Edmund would need an attorney. For details, go to www.newsok.com.

State Office Employee Donations Not The Norm, Analysis Of Finance Reports Indicates

An analysis of campaign finance reports on file with the Oklahoma Ethics Commission for a number of statewide elected officials indicates that large numbers of contributions from employees in state offices to their elected bosses are not the norm, at least in the past 14 months. The analysis was performed following TMRO's revelation that State Auditor & Inspector Jeff McMahan's reports show 581 contributions from his agency's approximately 165 employees in his past two campaigns, many of them coming in his current reelection campaign.

The analysis shows the following for the elected officials listed:

Attorney General Drew Edmondson (D) - 3

Lt. Governor Mary Fallin (R) - 0

School Superintendent Sandy Garrett (D) - 75

Governor Brad Henry - At least 1 (Henry's donor list is so large the Ethics Commission server can't seem to call it up; we're still trying!)

Insurance Commissioner Kim Holland (D) - 0

Auditor & Inspector Jeff McMahan (D) - 182 for the time period covered by reports for the other officials; 581 since July 1, 2001

Labor Commissioner Brenda Reneau (R) - 1

Fans Headed To Dallas Can Expect Cheaper Gas

AAA of Oklahoma says drivers are paying an average of $.71 less for gas this year than they did during OU/Texas weekend '05.

By Melissa Gandall, NewsRadio 1000 KTOK With the average price of gas in Oklahoma near $2.10 per gallon, making the drive to Dallas for the annual OU/Texas weekend will be a lot cheaper this year.

AAA of Oklahoma spokesman Chuck Mai says that's about 71 cents less than we paid last year and the savings could be even more, if you fill up in Oklahoma City, where many stations are still selling gas for less than $2.00 per gallon. Mai says the average savings for the 412 mile round trip drive to the Cotton Bowl will be about $13 over 2005.

GOP Candidate Rips Democratic Official's 'Chauffeur' Remark, Demands Apology

LAWTON - State House candidate T.W. Shannon today demanded an apology from Comanche County Democratic Party Chairman Mike Weddington for an email containing a "false, negative and inflammatory personal attack" and describing Shannon as qualified only to be a "chauffeur."

"Chairman Weddington's comment that I am only qualified to be a chauffeur reflects an attitude that is out of step with most people in Lawton, and - quite frankly, sets our community backward a half century," Republican Shannon said. Shannon called on his opponent Janice Drewry to immediately disavow the statement. Shannon said he has a degree from Lawton Public Schools, Cameron University, and a law degree from Oklahoma City University. He has served as a congressional aide for four years, working as a staff assistant and field representative, and has worked in business a number of years.

Weddington's email stated that: "I cannot find anything in his past that would qualify him as anything more than a chauffeur."

"Comparing and contrasting the qualifications of candidates is what spirited campaigns are all about. I believe my years of public service will speak for themselves. However, when my opponent's county chairman, denigrates my educational and political credentials to that of a domestic laborer, I can't help but question the true motive. While Chairman Weddington may only see me as qualified to drive his car, I think most voters of the district will see an experienced, energetic leader who is more concerned with providing working families with job opportunities, affordable healthcare, and educational opportunities. "

Weddington's email went on to suggest that Shannon is not from Lawton: "This is absurd...I am a 3rd generation Lawtonian. My family has been in this community since the early 40's. I grew-up here, met and married my wife here, and I am now raising my daughter here."

"Not only is the comment grossly inaccurate, it reflects the negative campaign that my opponents apparently intend to wage," he added. "I have knocked on hundreds of doors in this district for six months and it's clear among voters...stop the partisan mudslinging and and get back to the business of serving the people."

Weddington's comments came in a widely circulated email to other county Democrat Party officials and supporters.

"This comment is outrageous and it defies the advice that I give to kids in my Sunday School class. I encourage them to get their education, work hard, become productive members of society, and create opportunities for your families. " Shannon said. "This is the American dream, available to all who aspire to do better. As a conservative, that's what I believe."

A&I Employees Make 581 Separate Donations To McMahan; Total Near $96,000 Since 2001

THIRD IN A SERIES ~ Employees of the auditor & examiner's office have made 581 separate donations totaling about $96,000 to Auditor & Inspector Jeff McMahan's campaigns for the office he now holds, a computer-assisted examination of his campaign reports since July 1, 2001 reveals.

Wednesday afternoon, McMahan told Oklahoma City radio station KTOK that he has never "strong-armed" anyone for a contribution. He said such claims are false, even though no one has made such an accusation. A former district manager of the Tulsa auditor & inspector's office, Dana Webb, told TMRO earlier this week that other office employees turned that office into an adjunct campaign headquarters for McMahan, soliciting donations and using state property to print campaign materials.

There are about 165 employees in the office. They work in two Oklahoma City offices (State Capitol, Shepherd Mall) and field offices in Tulsa, Ada, and Weatherford. Almost every employee is listed in McMahan's finance reports over the 5-year period.

Interest in McMahan's donations increased this week when the former district manager of the auditor & inspector's Tulsa office, Dana Webb, alleged that donations from state employees were encouraged and being solicited and accepted on state property, that state property was used to print campaign materials, that McMahan campaign items were sold in the office and that the Tulsa state office essentially became an adjunct campaign headquarters for McMahan.

State law and Oklahoma Ethics Commission rules prohibit such activities; each violation is considered a felony under the law.

Some of the donations from employees to McMahan were listed as "in-kind" and most often involved expenses for fundraising events.

Webb said that some employees in the Tulsa office often talked about "$250 donations" from office workers for such things as golf tournament sponsorships and other events to raise money for McMahan's campaign. His finance report for the first quarter of 2002 lists nine Tulsa office employees as donors of $250 each on March 1st and the day before. The nine office employees listed as giving $250 each at that time are Kelly Corbin of Pawhuska, Kerri Carter of Hominy, Terri Ross of Tulsa, Christopher Stephens of Claremore, Tisha Carroll of Jay, Gary Gibney of Jenks, Clarence McClain of Tulsa, Susanna Conaway of Tulsa and Jesse Badley of Ralston.

As previously reported here, McMahan received 102 donations totaling $17,467 from office employees this year alone, through August 10th. The 2001-2006 totals make McMahan hands down the most popular elected official in the state with those who work for him; few other statewide elected official list any significant number of office employee donations and some list none. Some, like Lt. Governor Mary Fallin, refuse to accept donations from members of their staffs to avoid even the appearance of impropriety. Other than McMahan, only School Superintendent Sandy Garrett lists any large number of donations from those in her agency; she lists 75.

The McCarville Report Online's new computer-assisted analysis of McMahan's campaign finances includes reports back to July 1, 2001. Some of the reports are a sea of employee donations; the report for the period July 1st to September 30th, 2003, for example, lists 86 donations with 80 of them from employees.

The reports show the following number of individual employee donations followed by the sum for the period:

7/1-9/30/01 - 5/$600

10/1-12/31/01 - 41/$6,468

1/1-3/31/02 - 52/$7,182

4/1-6/30/02 - 38/$10,960

7/1-8/12/02 - 39/$5,957

8/13-9/3/02 - 7/$3,335

9/4-10/21/02 - 99/$18,962

11/22-12/31/02 - 12/$2,119 This sum was part of about $24,000 McMahan collected immediately after his election and used to pay off a $20,000 loan at BancFirst in Shawnee. As reported yesterday, two former top administrators in the office say they each signed $2,000 promissory notes to help McMahan secure the loan. Despite a state law requirement that loan guarantors be listed as contributors, the names of the two, or others who allegedly signed similiar promissory notes at the same time, do not appear on McMahan's reports for this period. The two say the promissory notes were signed in Room 100 of the State Capitol, an office assigned to the auditor & inspector. Former Auditor & Inspector Clifton Scott told Oklahoma City radio station KTOK on Tuesday that he introduced McMahan to officials at the bank and told McMahan about a 1982 campaign in which promissory notes were used to secure a loan. Election laws since then, however, have changed; in addition, the Oklahoma Ethics Commission now exists to enforce donation rules and laws.

1/1-3/31/03 - 13/$2,200

4/29-6/30/03 - 44/$4,225

7/1-9/30/03 - 80/$2,300

10/1-12/31/03 - 9/$970

1/1-3/31/04 - None

4/1-6/31/04 - 26/$3,720

7/1-9/30/04 - 2/$99

10/1-12/31/04 None

1/1-3/31/05 - 1/$500

4/1-6/30/05 - 28/$3,451

7/1-9/30/05 - 5/$2,100

10/1-12/31/05 - 14/$2,850

By years, the totals are: 2001-2002, 306/$57,783; 2003, 133/$7,495; 2004, 28/$3,819; 2005, 48/$8,901; 2006 to August 10th, 66/$17,467.

Next: Who loves Jeff McMahan?

Congressmen Support Foley Probe

Members of Oklahoma's congressional delegation support a thorough investigation into the activities of now-disgraced former Congressman Foley, the Republican who resigned when sexually-explicit emails between him and Capitol pages were revealed. Comments from the congressman can be read on the Oklahoma Political News Service site.

Poll Shows 82% Want English As Official Language

A new poll by Wilson Research Strategies of Oklahoma City shows that 82 percent of those polled want English as the official language of the state. Details are posted on the Oklahoma Political News Service.

Rinehart Target Of OSBI Probe, KOCO Reports

Oklahoma County Commissioner Brent Rinehart is the target of a probe by the Oklahoma State Bureau of Investigation which seized county records yesterday, KOCO-TV Channel 5 reported Tuesday. Reporter Kevin Sims, who broke the original story, said OSBI agents seized financial records for both Rinehart and County Commissioner Stan Inman. The records apparently have to do with purchases for the two districts. Rinehart told the station that no records were taken from his personal office.