Caught On Tape: Lori McMahan, Steve Phipps

The Oklahoman's Tony Thornton reports today that an FBI affidavit released Friday contains damning allegations against Auditor and Inspector Jeff McMahan's wife, Lori. Like McMahan, she faces a 9-count federal grand jury indictment.

The allegations come as the FBI reveals it has tape recordings of conversations Lori McMahan had with abstract company owner Steve Phipps. The affidavit provides partial transcripts of conversations between Phipps, Tim Arbaugh (McMahan's abstract division chief) and Lori McMahan concerning alleged cash payments totaling $27,000 from Phipps. In return, according to the indictment, the auditor gave special treatment to Phipps' companies.

The alleged payments took place in 2002. The conversations took place in February 2007.

Concerning Phipps' alleged payments totaling $17,000 for campaign signs, the affidavit quotes Lori McMahan as saying, “I can go down for that if you, you know, if you have to tell about it, it'll be me that goes down with it. I took it and I did it.”

According to the affidavit, she instructed Phipps that if the FBI asks whose cash paid for the signs, “It wasn't yours.”

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