Saturday, April 28, 2007

The Oklahoman: Morgan Paid By Title Companies Partially Owned By Steve Phipps, Gene Stipe

The Oklahoman reports in its Sunday edition ("Senator's income examined") that Senate Democratic leader Mike Morgan of Stillwater, an attorney, was paid $13,750 by "companies owned in part by two men under investigation for allegedly paying kickbacks to legislators...."
The two men are former Senator Gene Stipe and his abstract/title company empire partner, Steve Phipps of Kiowa.
Investigative reporters Nolan Clay and Tony Thornton report Morgan has not been contacted by the Federal Bureau of Investigation, which is deep into an investigation involving the funneling of state funds to entities owned by Phipps and Stipe, and the use of "straw donors" to funnel illegal donations to numerous political campaigns.
Clay and Thornton report Morgan was paid $5,000 by University Land Title Services in Stillwater in May 2000, and $8,750 by Guaranty Title Company of Oklahoma City in October 2000.
Morgan's attorneys, hired to answer questions about the transactions, told the reporters Morgan did not know the two firms were partially owned by Phipps and Stipe; they said he dealt only with the man he thought was the owner, Larry Witt of Stillwater. They said Morgan "has not been involved in anything inappropriate or improper."
A key part of the on-going FBI investigation apparently has been the funneling of state funds to private businesses owned by Phipps and Stipe. The FBI alleges the two paid kickbacks to three legislators (Randall Erwin, Jerry Hefner and Mike Mass) for helping divert the funds to the Phipps/Stipe businesses. The payments to Morgan apparently were made about three years before the alleged diversion of state funds occurred.

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