Phipps Says He's Guilty
Steve Phipps, the former longtime business partner of former State Senator Gene Stipe, pleaded guilty Wednesday to a mail fraud charge and admitted paying kickbacks to three state legislators.
Phipps, 52, admitted in federal court in Muskogee that he paid the lawmakers, who have since left office, for their help in funneling taxpayer money to private businesses. He has been cooperating with federal prosecutors. The charge carries a maximum penalty of five years in prison.
Phipps was freed on $20,000 bond by U.S. Magistrate Kimberly West. Phipps became the second person to plead guilty to a felony charge linked to alleged kickbacks to legislators. Former Rep. Mike Mass pleaded guilty to a similar charge in April and also is cooperating with federal authorities.
"I agreed with Mike Mass and others on a plan to have state funds appropriated by the legislature and steered to an entity known as the Rural Development Foundation," Phipps said. "The RDF then provided funds to National Pet Products and Indian Nation Entertainment, businesses then largely owned and operated by me. In order to secure state funding for RDF, that would then be provided to INE, I agreed to periodically pay Rep. Mike Mass and two other influential state legislators each a percentage of the gross income from the gaming machines that were manufactured as the result of the state funding."
Phipps, 52, admitted in federal court in Muskogee that he paid the lawmakers, who have since left office, for their help in funneling taxpayer money to private businesses. He has been cooperating with federal prosecutors. The charge carries a maximum penalty of five years in prison.
Phipps was freed on $20,000 bond by U.S. Magistrate Kimberly West. Phipps became the second person to plead guilty to a felony charge linked to alleged kickbacks to legislators. Former Rep. Mike Mass pleaded guilty to a similar charge in April and also is cooperating with federal authorities.
"I agreed with Mike Mass and others on a plan to have state funds appropriated by the legislature and steered to an entity known as the Rural Development Foundation," Phipps said. "The RDF then provided funds to National Pet Products and Indian Nation Entertainment, businesses then largely owned and operated by me. In order to secure state funding for RDF, that would then be provided to INE, I agreed to periodically pay Rep. Mike Mass and two other influential state legislators each a percentage of the gross income from the gaming machines that were manufactured as the result of the state funding."
Labels: Campaign Finance Scandal, Gene Stipe, Steve Phipps
posted by Mike McCarville @ 10:46 PM
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