Holland Revokes Phipps' Insurance License

State Insurance Commissioner Kim Holland has revoked the insurance license of abstract company owner Steve Phipps, center of an ongoing federal investigation into illegal campaign financing that also involves former Senator Gene Stipe and Auditor and Inspector Jeff McMahan, who regulates the abstract industry. The investigation also involves three former Oklahoma legislators, including former Democratic Party Chairman Mike Mass.

Holland's administrative order was signed on Monday and released today.

The order cites Phipps' guilty plea and orders his license to sell title insurance revoked immediately. Holland's order states that Phipps, who entered the guilty plea in U.S. District Court in Muskogee in June, used "fraudulent and dishonest business practices" and demonstrated "incompetence, untrustworthiness and financial irresponsibility in the conduct of business in this state."

Phipps has pleaded guilty to mail fraud and reportedly is cooperating with FBI agents in the ongoing investigation. Results are being presented to a federal grand jury in Muskogee. Phipps and Stipe were partners in an abstract company empire that spanned the state. The investigation has centered on illegal campaign donations to federal and state campaigns and the funneling of state money to entities controlled by Phipps and Stipe, and subsequent payments from those entities to other of their enterprises and, apparently, to candidates for office.

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