Defense claims OK Auditor unable to track household cash
11 June, 2008
The trial of OK Auditor and Inspector Jeff McMahan and his wife continues this week with Lori McMahan taking the stand. In her testimony, Mrs. McMahan claimed she took large sums of money, trips, and expensive jewelry from Steve Phipps without her husband’s knowledge. Steve Phipps had business interests regulated by McMahan’s State Auditor office.
The Oklahoman reports that Lori McMahan testified that Phipps gave her the following:
- $10,000 in cash late in 2002
- $5,000 on Oct 22, 2002
- cash for campaign signs
- trip to New Orleans with Mr. and Mrs. Phipps and another couple
- expensive jewelry on at least two occasions
- trip to New Orleans in October 2004
- at least $3,000 to attend the 2004 DNC Convention
- more than $100,000 in illegal contributions to the auditor’s 2002 campaign
I would understand if Jeff McMahan didn’t see an extra few hundred dollars slip into their household budget, or if he missed some of his wife’s new jewelry. However, how could he miss piles of cash plus two trips to New Orleans, plus a trip to the DNC convention, plus the new jewelry? He’s the state AUDITOR AND INSPECTOR. He should have used his business skills to take a cursory look at his own household budget and campaign account.
This case is a breathtaking example of why Oklahoma needs more transparency and needs term limits for statewide elected officials.
And remember: Jeff McMahan is STILL receiving a paycheck from honest, hardworking OK taxpayers.
The Oklahoman has more here.


Comment posted by Brian Downs on 11 Jun, 2008
Even more mind-numbing is the fact that Governor Brad Henry has not exercised any political capital, his bully pulpit, or public opinion to convince a fellow Democrat state leader to resign. This is the worst example of leadership in this case. We all knew that the southeastern Oklahoma good-ole boy network existed, but to turn a blind-eye to the corruption from the Governor’s office is just plain scary. Citizens will chalk this up to another story of a crooked politician, but it runs much deeper than that. The voters of Oklahoma should take notice of the state-wide candidates in 2010 and make sure their not cut from the same cloth of leadership as Brad Henry & Jeff McMahan.