Newspapers Online: Feds Move Stipe Probation Jurisdiction; Is It Part Of A Crackdown?
The jurisdiction of former Senator Gene Stipe’s probation has been moved to U.S. District Court in Muskogee from the U.S. District Court for the District of Columbia, the Tulsa World and The Oklahoman report today on their websites.
The report immediately set off speculation that federal authorities are preparing a crackdown on Stipe; a possible additional action could include an effort to seize his assets, some speculate, under RICO statutes.
The report immediately set off speculation that federal authorities are preparing a crackdown on Stipe; a possible additional action could include an effort to seize his assets, some speculate, under RICO statutes.
The decision streamlines the process for federal officials as a probation violation report is expected to be filed against Stipe, who lives in McAlester, in connection with an FBI and grand jury investigation that alleges kickbacks and illegal campaign contributions.
The order was signed by U.S. District Judge James Robertson in Washington and accepted by U.S. District Judge Ronald A. White for the Eastern District in Muskogee.
Stipe, a Democratic legislator for five decades, is alleged to be part of an illegal scheme with his estranged business partner Steven Phipps and three former lawmakers in which $2.27 million in state funds was earmarked to a purported nonprofit organization. It is alleged the money was then funnelled to businesses owned by Stipe and Phipps, and that lawmakers received kickbacks through the businesses.
Former House Democrat Mike Mass pleaded guilty to mail fraud last week in U.S. District Court in Muskogee for his part in the scheme. He could receive up to five years in prison and/or a $250,000 fine.
In addition, the FBI affidavits allege that Stipe and Phipps were part of a straw-donor scheme to help elect State Auditor and Inspector Jeff McMahan and U.S. Rep. Dan Boren.
The allegations are similar to those that landed Stipe on probation in the first place. Stipe pled guilty in 2004 to illegally funnelling $245,189 into the failed 1998 congressional campaign of protege Walt Roberts. Stipe received five years' probation, six months of home detention and $735,000 in fines.
The order was signed by U.S. District Judge James Robertson in Washington and accepted by U.S. District Judge Ronald A. White for the Eastern District in Muskogee.
Stipe, a Democratic legislator for five decades, is alleged to be part of an illegal scheme with his estranged business partner Steven Phipps and three former lawmakers in which $2.27 million in state funds was earmarked to a purported nonprofit organization. It is alleged the money was then funnelled to businesses owned by Stipe and Phipps, and that lawmakers received kickbacks through the businesses.
Former House Democrat Mike Mass pleaded guilty to mail fraud last week in U.S. District Court in Muskogee for his part in the scheme. He could receive up to five years in prison and/or a $250,000 fine.
In addition, the FBI affidavits allege that Stipe and Phipps were part of a straw-donor scheme to help elect State Auditor and Inspector Jeff McMahan and U.S. Rep. Dan Boren.
The allegations are similar to those that landed Stipe on probation in the first place. Stipe pled guilty in 2004 to illegally funnelling $245,189 into the failed 1998 congressional campaign of protege Walt Roberts. Stipe received five years' probation, six months of home detention and $735,000 in fines.
Labels: Dan Boren, Gene Stipe, Jeff McMahan, Mike Mass, Steve Phipps
posted by Mike McCarville @ 3:22 PM
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