Arbaugh: 'I realized we had crossed the line' As Phipps Handed Over Cash
By Susan Hylton/Tulsa World Staff Writer in Muskogee ~ Former deputy state auditor & inspector Tim Arbaugh, on the stand in the federal trial of State Auditor & Inspector Jeff McMahan, nearly broke down on the witness stand Thursday in describing what he said was an illegal campaign contribution.
Arbaugh testified that he got into Kiowa businessman Steve Phipps’ vehicle at a Garfield's parking lot in Shawnee where he saw two stacks of cash.
It was Oct. 22, 2002, and the campaign of his soon-to-be boss, McMahan was in trouble, especially in Tulsa County, the former abstract registrar testified in U.S. District Court.
One of the stacks, topped by a $100 bill, was meant for Arbaugh, he said. It was $2,500 to infuse illegally into the campaign for last-minute advertisements.
The other stack was much bigger, Arbaugh said.“It looked like a lot. He told me it was $10,000,” Arbaugh said.
When Assistant U.S. Attorney Ryan Roberts asked Arbaugh what Phipps was planning to do with the money, Arbaugh paused in silence for a moment to control his emotions.
He finally responded: “He told me he was going to give it to Jeff and Lori.”
In providing further detail, Arbaugh nearly broke down again.“It was at that point where I … I'm sorry,” he said, taking another moment to gather his words. “It was at that point that I realized we had crossed the line.”
The McMahans are on trial in a nine-count indictment alleging conspiracy, mail fraud and accepting bribes.
Phipps owned several abstract companies with Gene Stipe and the auditor’s office regulates the abstract industry.
Phipps testified Wednesday that he helped illegally finance McMahan’s campaign, along with taking the couple on trips to New Orleans and buying Lori McMahan jewelry in an effort to receive political favors.
Arbaugh testified that he got into Kiowa businessman Steve Phipps’ vehicle at a Garfield's parking lot in Shawnee where he saw two stacks of cash.
It was Oct. 22, 2002, and the campaign of his soon-to-be boss, McMahan was in trouble, especially in Tulsa County, the former abstract registrar testified in U.S. District Court.
One of the stacks, topped by a $100 bill, was meant for Arbaugh, he said. It was $2,500 to infuse illegally into the campaign for last-minute advertisements.
The other stack was much bigger, Arbaugh said.“It looked like a lot. He told me it was $10,000,” Arbaugh said.
When Assistant U.S. Attorney Ryan Roberts asked Arbaugh what Phipps was planning to do with the money, Arbaugh paused in silence for a moment to control his emotions.
He finally responded: “He told me he was going to give it to Jeff and Lori.”
In providing further detail, Arbaugh nearly broke down again.“It was at that point where I … I'm sorry,” he said, taking another moment to gather his words. “It was at that point that I realized we had crossed the line.”
The McMahans are on trial in a nine-count indictment alleging conspiracy, mail fraud and accepting bribes.
Phipps owned several abstract companies with Gene Stipe and the auditor’s office regulates the abstract industry.
Phipps testified Wednesday that he helped illegally finance McMahan’s campaign, along with taking the couple on trips to New Orleans and buying Lori McMahan jewelry in an effort to receive political favors.
Labels: McMahan Trial, Steve Phipps, Tim Arbaugh
posted by Mike McCarville @ 1:34 PM
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