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A jury convicted Oklahoma Auditor and Inspector Jeff McMahan and his wife Saturday on felony counts of conspiracy and accepting bribes. Federal jurors deliberated about 13 hours over the course of two days before finding the two-term Democrat and his wife, Lori, guilty on one count each of conspiracy and two counts each of accepting bribes. Jurors acquitted both of them on five counts of mail fraud.
U.S. Attorney Sheldon J. Sperling said the McMahans took "cash, other items of value, supplies and straw contributions which far exceeded the legal limits of allowed contributions" during Jeff McMahan's campaign for his office.
The charges related to their dealings with southeast Oklahoma businessman Steve Phipps, who testified for the prosecution. Phipps also has been implicated in a case involving three former state legislators who allegedly steered state funds toward his business interests.
The indictment alleged the couple took about $77,600 in illegal "straw donations" in a scheme orchestrated by Phipps, who together with former Democratic state Sen. Gene Stipe owned several businesses that were once regulated by McMahan's office. Stipe resigned in 2003 and faces several felony counts.
"The defendants tried to keep their actions under the radar. They took thousands of dollars in illegal campaign contributions, gifts, jewelry, and trips. They concocted cover stories," Sperling said in a statement. "Public corruption is simply a disgrace."
The McMahans will remain free on bond pending a pre-sentencing investigation.
Whatever the punishment, Democratic Gov. Brad Henry made it clear he wants McMahan to resign his office immediately "so the state of Oklahoma can move forward under the leadership of a new state auditor and inspector.
"It is critical to restore public trust in that position," Henry said in a statement. The governor also said it will be his duty to appoint a successor.
Deputy State Auditor Michelle Day has been serving in McMahan's role since he stepped aside on the day of his arraignment in January. The Oklahoma House started an investigation into McMahan, the first step toward impeachment proceedings, during the legislative session that ended last month.
Rep. David Braddock, D-Altus, co-chairman of the special investigative committee, said by telephone that the committee had an observer in the courtroom monitoring the trial and he anticipated meeting with committee members and the group's general counsel to consider their next move.
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