Federal prosecutors seek leniency in corruption sentencing of Oklahoma businessman

 
BY NOLAN CLAY | Published: May 21, 2009   

MUSKOGEE — Federal prosecutors Wednesday asked for leniency for a businessman who paid kickbacks to legislators, saying he broke a "code of silence” and gave extraordinary help to a political corruption investigation.

Steve Phipps of Kiowa is to be sentenced next week by U.S. District Judge Ronald White. He faces up to five years in federal prison. He pleaded guilty in 2007 to a federal conspiracy charge, admitting he paid three legislators kickbacks for their efforts in getting his companies $2.7 million in state taxpayer money.

He also has admitted to other crimes for which he was not charged. The admissions include testimony that he and a business partner, former state Sen. Gene Stipe, used straw donors to make illegal excessive donations to political campaigns.

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