Wednesday, May 28, 2008

Hall, McGoodwin Likely To Testify At McMahan Trial, Sources Say

Capitol lobbyist Pat Hall and Office of State Finance official Jim McGoodwin are likely to be among those called to testify in the federal trial of Auditor & Inspector Jeff McMahan and his wife, Lori, sources tell The McCarville Report Online.

The trial is scheduled to begin next week.

A source said he would not be surprised if Tulsa Mayor Kathy Taylor, former secretary of commerce, also is called as a witness.

Another almost-certain witness will be Tim Arbaugh of Guthrie, deputy auditor fired by McMahan as the scandal unfolded. Arbaugh is identified in FBI affidavits. One affidavit provides partial transcripts of conversations between Steve Phipps, Arbaugh (McMahan's then-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.

Asked if it is true he will appear as a witness, Hall told TMRO, "I would prefer for the U.S. Attorney to answer that question or Mr. McMahan's attorney."

Hall, a former Oklahoma Democratic Party executive director, is among the state's most influential lobbyists. A source says he's likely to be questioned about his knowledge of the activities of the McMahans and Phipps, the eastern Oklahoma abstract company owner implicated in the scandal that has engulfed McMahan and other public officials. Hall was also a consultant for Phipps' Rural Development Foundation and, according to an FBI affidavit, was paid $15,000 by RDF for work as a "water consultant."

McGoodwin now is deputy director of operations for the Office of State Finance and previously served as deputy state auditor and inspector and was director of special investigations in the auditor's office at the time laws allegedly were violated by McMahan and his wife. They face nine felony counts.

Taylor held the state office when a huge state grant was given to Phipps' interests by the Department of Commerce.

McMahan also faces a House committee formed to consider his impeachment.

McMahan and his wife were indicted by a federal grand jury in January on nine counts including conspiracy, mail fraud and violating the Travel Act to commit bribery. The McMahans have pleaded not guilty.

The charges stem from dealings with Phipps, who is identified in the nine-count indictment as a co-conspirator. Federal prosecutors say the charges are tied to favoritism shown to Phipps by McMahan as well as excessive political donations to McMahan during his 2002 campaign.

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