Worker testifies Phipps is boss
Worker IDs Phipps as boss

By Tony Thornton

Published: April 20, 2008

MUSKOGEE — Two answers given by an abstract company manager got lost during Francis Stipe's criminal trial.

It's easy to see why. Pat Payne was among 30 witnesses who testified over five days.

Payne, who testified under the grant of immunity, was asked this question by a federal prosecutor: "Who is your boss?”

"Steve Phipps,” Payne answered without hesitation.

"Is he the owner of Pushmataha County Abstract?” the prosecutor asked.

"Yes,” Payne answered.

Phipps pleaded guilty to a federal conspiracy charge as part of a continuing investigation of political corruption. As a convicted felon, he can no longer hold an abstractor's license. He testified in a civil trial last year he transferred his share of several abstract companies to his wife, Brenda, due to the conviction.

Some of the companies were sold to resolve a lawsuit between Steve Phipps and his ex-business partner, former state Sen. Gene Stipe.

After the court-ordered sale, Brenda Phipps owns the companies in Wilburton, Idabel, Antlers and Hugo. Payne works for the one in Antlers.

Brenda Phipps assured the Oklahoma Abstractors Board earlier this year her husband no longer had any ownership in the companies, said Monica Wittrock, the board's chairman.

Told of Payne's testimony, Wittrock said, "That's interesting — and troubling.”

The board became an official state agency in January and is still awaiting formal approval of its rules. Without those, an investigation can't commence, Wittrock said.

Steve Phipps' criminal defense attorney said a judge last year allowed his client to remain a salaried employee to ease the ownership transition.