Phipps On Hot Seat In Francis Stipe Trial
Muskogee (By Susan Hylton, Tulsa World) ~ A federal judge is being asked to grant a compulsory order so that one of the government's star witnesses will answer all questions during the trial of McAlester businessman Francis Stipe (pictured).
"Steven R. Phipps has indicated that if called as a witness he may refuse to answer some questions, invoking his constitutional privilege against self-incrimination," states the application for the order submitted by U.S. Attorney Sheldon Sperling.
Stipe, 76, goes to trial Monday in U.S. District Court in Muskogee on charges of conspiracy, mail fraud, witness-tampering and illegal mone tary transactions.
The crimes are punishable by as much as 45 years in prison and $1 million in fines.
Judge Ronald White ordered Phipps, a Kiowa businessman, to appear at a motions hearing before the start of the 9 a.m. trial. Phipps pleaded guilty in June as part of a plea agreement with the government on one count of conspiracy to commit mail fraud. The charge stemmed from his role in a scheme to pay kickbacks to legislators in exchange for earmarking $2.7 million to companies he operated. The maximum penalty is five years in prison and a $250,000 fine. The government vowed to recommend a lesser sentence against Phipps if he provided substantial assistance in the investigation into po litical corruption in southeastern Oklahoma. In addition, authorities agreed to bring no other criminal charges against Phipps.
Phipps' attorney, Dan Webber, said his client reserved his right to insist on "use" immunity for his testimony at trial. While the timing of the motion might seem noteworthy, Webber said, the action is routine. "This was done because the investigation has looked into both potential federal and state violations," he said. "Mr. Phipps does not have an agreement with state prosecutors. This provision allows Mr. Phipps to testify fully and completely, and simply means state prosecutors can't use his testimony."
Prosecutors allege that Francis Stipe recouped a $50,000 loan to the failed congressional campaign of Walt Roberts by obtaining state funds used by the McAlester Foundation to buy property from Stipe's brother, former state Sen. Gene Stipe.
The property was leased to National Pet Products, which is owned by Phipps. Gene Stipe allegedly had a secret interest. The state funds were steered by former state Rep. Mike Mass, a Democrat, who pleaded guilty to receiving about $250,000 in kickbacks.
Mass also has agreed to cooperate in the case and has not been sentenced.
Prosecutors also believe that the Stipe brothers tried to intimidate or persuade Mass not to testify before the federal grand jury and at trials by having Francis Stipe buy Mass' home mortgage in February 2007.
Gene Stipe, 81, faces the same charges as his brother, but unresolved questions of his mental competency related to a dementia diagnosis have delayed a trial and probation revocation hearing. He is on house arrest, serving a five-year probation that expires early next year
"Steven R. Phipps has indicated that if called as a witness he may refuse to answer some questions, invoking his constitutional privilege against self-incrimination," states the application for the order submitted by U.S. Attorney Sheldon Sperling.
Stipe, 76, goes to trial Monday in U.S. District Court in Muskogee on charges of conspiracy, mail fraud, witness-tampering and illegal mone tary transactions.
The crimes are punishable by as much as 45 years in prison and $1 million in fines.
Judge Ronald White ordered Phipps, a Kiowa businessman, to appear at a motions hearing before the start of the 9 a.m. trial. Phipps pleaded guilty in June as part of a plea agreement with the government on one count of conspiracy to commit mail fraud. The charge stemmed from his role in a scheme to pay kickbacks to legislators in exchange for earmarking $2.7 million to companies he operated. The maximum penalty is five years in prison and a $250,000 fine. The government vowed to recommend a lesser sentence against Phipps if he provided substantial assistance in the investigation into po litical corruption in southeastern Oklahoma. In addition, authorities agreed to bring no other criminal charges against Phipps.
Phipps' attorney, Dan Webber, said his client reserved his right to insist on "use" immunity for his testimony at trial. While the timing of the motion might seem noteworthy, Webber said, the action is routine. "This was done because the investigation has looked into both potential federal and state violations," he said. "Mr. Phipps does not have an agreement with state prosecutors. This provision allows Mr. Phipps to testify fully and completely, and simply means state prosecutors can't use his testimony."
Prosecutors allege that Francis Stipe recouped a $50,000 loan to the failed congressional campaign of Walt Roberts by obtaining state funds used by the McAlester Foundation to buy property from Stipe's brother, former state Sen. Gene Stipe.
The property was leased to National Pet Products, which is owned by Phipps. Gene Stipe allegedly had a secret interest. The state funds were steered by former state Rep. Mike Mass, a Democrat, who pleaded guilty to receiving about $250,000 in kickbacks.
Mass also has agreed to cooperate in the case and has not been sentenced.
Prosecutors also believe that the Stipe brothers tried to intimidate or persuade Mass not to testify before the federal grand jury and at trials by having Francis Stipe buy Mass' home mortgage in February 2007.
Gene Stipe, 81, faces the same charges as his brother, but unresolved questions of his mental competency related to a dementia diagnosis have delayed a trial and probation revocation hearing. He is on house arrest, serving a five-year probation that expires early next year
Labels: Francis Stipe, Gene Stipe, Steve Phipps
posted by Mike McCarville @ 10:19 AM
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