Former Head Of Auditor's Abstract Division Identified As Key Player In Alleged Illegal Acts
The former head of Auditor and Inspector Jeff McMahan's abstract division, Tim Arbaugh (pictured), has been identified as a key player in arranging alleged illegal acts on behalf of McMahan and his benefactor, southeastern Oklahoma abstract company owner Steve Phipps. The indictment against McMahan and his wife refers to Arbaugh as "schemer number two," but does not identify him by name. Phipps was "schemer number one." Based on descriptions of their actions in the indictments, and previous knowledge of Arbaugh's involvement in the operation of McMahan's office, his role was determined. The indictment details several alleged illegal acts by "schemer number two" that point to Arbaugh's identity; first was his role in arranging a 2002 campaign fundraiser and second was his role in orchestrating the recording of McMahan's campaign jingle. Arbaugh was known to have been involved in both.
Arbaugh, who was fired by Democrat McMahan in March after allegations of straw donors to his campaign drew attention, operates a bed and breakfast in Guthrie, The Victorian Garden Inn, with his wife. Federal investigators, a source claims, have questioned Arbaugh about any financial involvement Phipps may have had in the operation of the bed and breakfast by the Arbaughs. They acquired it in 1994, records show. Last April, The Oklahoman's Tony Thornton reported that Arbaugh was involved in successful efforts to secure state money to buy a train owned by disgraced former State Senator Gene Stipe, Phipps' abstract company empire partner. The indictment alleges that Arbaugh was employed by McMahan at Phipps' insistence, and had to be retained in that job if McMahan wanted Phipps' financial help in his 2006 reelection campaign. McMahan and his wife, Lori, now face a 9-count federal grand jury indictment alleging they conspired with Phipps, took illegal campaign donations and committed mail fraud. Phipps and his abstract company partner, Stipe, operated a string of abstract companies across the state. As auditor, McMahan was charged by law with regulating the abstract industry. That law was changed after the ties between McMahan and Phipps became clear. Arbaugh, who has not been indicted, allegedly arranged for some McMahan campaign expenses to be paid for illegally by Phipps, was McMahan's agent in using the powers of the office to delay a competing abstractor's application to operate to help Phipps, was McMahan's agent in seeking cash from Phipps so the McMahans could attend the Democratic National Convention in Boston, and, at McMahan's direction, misused the power of the office to benefit Phipps in a lawsuit with Stipe over ownership of their abstract companies.
Arbaugh, who was fired by Democrat McMahan in March after allegations of straw donors to his campaign drew attention, operates a bed and breakfast in Guthrie, The Victorian Garden Inn, with his wife. Federal investigators, a source claims, have questioned Arbaugh about any financial involvement Phipps may have had in the operation of the bed and breakfast by the Arbaughs. They acquired it in 1994, records show. Last April, The Oklahoman's Tony Thornton reported that Arbaugh was involved in successful efforts to secure state money to buy a train owned by disgraced former State Senator Gene Stipe, Phipps' abstract company empire partner. The indictment alleges that Arbaugh was employed by McMahan at Phipps' insistence, and had to be retained in that job if McMahan wanted Phipps' financial help in his 2006 reelection campaign. McMahan and his wife, Lori, now face a 9-count federal grand jury indictment alleging they conspired with Phipps, took illegal campaign donations and committed mail fraud. Phipps and his abstract company partner, Stipe, operated a string of abstract companies across the state. As auditor, McMahan was charged by law with regulating the abstract industry. That law was changed after the ties between McMahan and Phipps became clear. Arbaugh, who has not been indicted, allegedly arranged for some McMahan campaign expenses to be paid for illegally by Phipps, was McMahan's agent in using the powers of the office to delay a competing abstractor's application to operate to help Phipps, was McMahan's agent in seeking cash from Phipps so the McMahans could attend the Democratic National Convention in Boston, and, at McMahan's direction, misused the power of the office to benefit Phipps in a lawsuit with Stipe over ownership of their abstract companies.
Labels: Gene Stipe. Jeff McMahan, Lori McMahan, Steve Phipps, Tim Arbaugh
posted by Mike McCarville @ 9:05 AM
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