McMAHANS CONVICTED

MUSKOGEE ~ A federal jury today convicted state Auditor and Inspector Jeff McMahan and his wife on three corruption-related counts.

The Oklahoman's Tony Thornton reports: The jury acquitted the McMahans on five mail fraud counts, but convicted them on one conspiracy count and two Travel Act violations. The Travel Act violations involve trips the couple took at the expense of a businessman whose companies were regulated by the auditor's office.

A judge allowed the McMahans to remain free on their own recognizance pending sentencing.

Prosecutors previously said convictions would result in likely prison terms under federal sentencing guidelines.

Three jurors appeared to wipe tears as or after the sentences were read. As they filed out of the courtroom about 2:15 p.m., none looked at the McMahans.

Jeff McMahan, 48, seemed to choke up as the guilty verdict on the first count of conspiracy was read, then exhale as the judge announced "not guilty" to the first of the five mail fraud counts.

His wife,43, sat clutching her husband's wrist but showed no emotion as the verdicts concerning her were read.

Jeff McMahan's attorney, Rand C. Eddy, said he was "extremely disappointed" by the verdicts. He said it's unclear whether his client will resign.

The auditor faces a likely impeachment trial if he doesn't step down.

Lori McMahan's attorney, Kevin Krahl, said his next step is to "just go figure out the sentencing possibilities ... evaluate our options and go from there."

Assistant U.S. Attorney Gay Guthrie, who has led the government's prosecution of several corruption cases that began with Phipps, said he has "tremendous respect" for the criminal justice system.

"In that respect, I accept this jury's verdict. I will move on to the next case."

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