Insiders: McMahan In Precarious Position
Will Auditor and Inspector Jeff McMahan serve out the rest of the 4-year term to which he was elected last year?
The question is making Capitol rounds this week following the revelation, by investigative reporter Tony Thornton of The Oklahoman, that agents of the Federal Bureau of Investigation seized an expensive piece of jewelry from the Tecumseh home of McMahan's sister-in-law as part of its investigation into the admitted illegal acts of Kiowa abstract company co-owner Steve Phipps; his partner, former Senator Gene Stipe; and others.
If the jewelry was first given to McMahan, or given with his knowledge to his wife's sister, Capitol insiders say, he could have violated the prohibition against taking anything of value from those he regulates. And then there's the matter of three known trips McMahan took with Phipps and who paid for what. As auditor, McMahan licenses and regulates the abstract industry.
McMahan has declined to discuss the matter with reporters; he has confirmed he's been interviewed three times by FBI agents. The latest was last week in a 90-minute session. McMahan's spokeswoman, Terri Watkins, says he will remain in office despite a call by Republican Rep. David Dank of Oklahoma City that he step aside until the investigation is completed.
The seizure of the jewelry, and campaign records from McMahan's home in Tecumseh, indicates that McMahan himself is a target of the investigation although there's been no confirmation of that.
One legislator said he had a brief conversation with another legislator about possible impeachment proceedings. He added it was "just a passing conversation, speculation mostly." He said that by the time the Legislature convenes in February, "we should know a whole lot more about the jewelry and how it came to be in the possession of McMahan's sister-in-law, and we can make a decision."
That legislator, and others, say the seizure of the jewelry appears to be enough for a state investigation, which apparently would fall to a multicounty grand jury, normally headed by McMahan's friend, fellow Democrat Attorney General Drew Edmondson. Edmondson and McMahan (and Congressman Dan Boren and Governor Brad Henry) both received illegal campaign donations from "straw" donors linked to Phipps and his abstract company partner, Stipe.
Former Insurance Commissioner Carroll Fisher was investigated and impeached, and then resigned, before he could be removed from office in a controversy that began with the revelation he had accepted expensive office furnishings from an insurance company investor. That case is being mentioned today by some when they discuss McMahan's situation.
It's obvious the FBI knew exactly what to look for at the home of McMahan's sister-in-law. The most obvious way they would know exactly what to look for is that Phipps himself told them about the jewelry, believed to be a diamond-studded bracelet, and described it for them. Phipps has pleaded guilty to federal charges and is cooperating in the ongoing investigation. That cooperation, the legislators speculate, apparently places McMahan in a precarious situation given the FBI's action in seizing the items and the clear inference they are evidence.
The Tulsa World, in a Thursday editorial saying McMahan should not step aside yet, raised another question: "More troubling is an admission by McMahan that he took three trips with Phipps, who owns several abstract companies in southeast Oklahoma. The auditor's office regulates the abstract industry. State Ethics Commission rules prevent McMahan from receiving anything of value from people he regulates. Right now two things need to happen: The FBI needs to finish its investigation, and McMahan should continue to do the job that Oklahomans elected him to do."
The question is making Capitol rounds this week following the revelation, by investigative reporter Tony Thornton of The Oklahoman, that agents of the Federal Bureau of Investigation seized an expensive piece of jewelry from the Tecumseh home of McMahan's sister-in-law as part of its investigation into the admitted illegal acts of Kiowa abstract company co-owner Steve Phipps; his partner, former Senator Gene Stipe; and others.
If the jewelry was first given to McMahan, or given with his knowledge to his wife's sister, Capitol insiders say, he could have violated the prohibition against taking anything of value from those he regulates. And then there's the matter of three known trips McMahan took with Phipps and who paid for what. As auditor, McMahan licenses and regulates the abstract industry.
McMahan has declined to discuss the matter with reporters; he has confirmed he's been interviewed three times by FBI agents. The latest was last week in a 90-minute session. McMahan's spokeswoman, Terri Watkins, says he will remain in office despite a call by Republican Rep. David Dank of Oklahoma City that he step aside until the investigation is completed.
The seizure of the jewelry, and campaign records from McMahan's home in Tecumseh, indicates that McMahan himself is a target of the investigation although there's been no confirmation of that.
One legislator said he had a brief conversation with another legislator about possible impeachment proceedings. He added it was "just a passing conversation, speculation mostly." He said that by the time the Legislature convenes in February, "we should know a whole lot more about the jewelry and how it came to be in the possession of McMahan's sister-in-law, and we can make a decision."
That legislator, and others, say the seizure of the jewelry appears to be enough for a state investigation, which apparently would fall to a multicounty grand jury, normally headed by McMahan's friend, fellow Democrat Attorney General Drew Edmondson. Edmondson and McMahan (and Congressman Dan Boren and Governor Brad Henry) both received illegal campaign donations from "straw" donors linked to Phipps and his abstract company partner, Stipe.
Former Insurance Commissioner Carroll Fisher was investigated and impeached, and then resigned, before he could be removed from office in a controversy that began with the revelation he had accepted expensive office furnishings from an insurance company investor. That case is being mentioned today by some when they discuss McMahan's situation.
It's obvious the FBI knew exactly what to look for at the home of McMahan's sister-in-law. The most obvious way they would know exactly what to look for is that Phipps himself told them about the jewelry, believed to be a diamond-studded bracelet, and described it for them. Phipps has pleaded guilty to federal charges and is cooperating in the ongoing investigation. That cooperation, the legislators speculate, apparently places McMahan in a precarious situation given the FBI's action in seizing the items and the clear inference they are evidence.
The Tulsa World, in a Thursday editorial saying McMahan should not step aside yet, raised another question: "More troubling is an admission by McMahan that he took three trips with Phipps, who owns several abstract companies in southeast Oklahoma. The auditor's office regulates the abstract industry. State Ethics Commission rules prevent McMahan from receiving anything of value from people he regulates. Right now two things need to happen: The FBI needs to finish its investigation, and McMahan should continue to do the job that Oklahomans elected him to do."
Labels: Campaign Finance Scandal, Gene Stipe, Jeff McMahan, Steve Phipps
posted by Mike McCarville @ 1:38 PM
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