A story of seven tainted races

 
By Tony Thornton | Published: June 5, 2008    Comment on this article Leave a comment

MUSKOGEE — Southeast Oklahoma businessman Steve Phipps testified Wednesday he provided $70,000 in illegal campaign contributions to Gov. Brad Henry in January 2003, within days after Henry took office. A spokesman for Henry quickly said that the governor did not know the money came from "straw donors” reimbursed by Phipps.

During his third day of testimony in the criminal trial of state Auditor and Inspector Jeff McMahan, Phipps said Henry was among seven political candidates — all Democrats — for whom he infused illegal cash. He said this was done mainly through "straw donors,” or people who gave under their own names but with Phipps' money.

However, Phipps admitted that not all of those candidates were aware of his actions.

The other races: Mike Mass' unsuccessful bid for Congress in 2002; Dan Boren's 2004 congressional race; John Edwards' 2004 presidential bid; McMahan's 2002 race; several of state Auditor and Inspector Clifton Scott's races, ending in 1998; and Jerry Hefner's 2006 race for Muskogee County commissioner after Hefner left the House of Representatives.

Phipps also claimed that Scott knowingly accepted his illegal campaign money for years and gave favors to Phipps in return.
Scott denied any improprieties.

"I really don't know what to think of it,” Scott said when told of Phipps' testimony. "I knew he had fundraisers for us; they never were what I thought were large amounts. If there were straw donors, I wasn't aware of it.”

Asked if he recalled Phipps asking him for favors, Scott said: "I don't know what he's talking about. I can't recall any.”

Money donated at event
McMahan and his wife, Lori, face nine felony counts related to their relationship with Phipps, an abstract company owner whose businesses were regulated by the auditor's office. Phipps, who is cooperating with prosecutors as part of a plea agreement, admitted Tuesday that he and two business partners, including former state Sen. Gene Stipe, funneled $157,882 into Jeff McMahan's 2002 campaign.

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