Jeff McMahan and Lori McMahan Indicted
Oklahoma State Auditor and Inspector Jeff McMahan and his wife Lori McMahan have been indicted by a federal grand jury on nine felony counts involving conspiracy, fraud and racketeering.
Federal prosecutors allege that the McMahans received cash, other items of value, supplies and straw donor contributions far exceeding the amount limited by law.
The investigation of the McMahans and their ultimate indictment are an outgrowth of the investigation of Steven Phipps, a business partner of disgraced former state senator Gene Stipe. Phipps pleaded guilty to paying kickbacks to lawmakers and agreed to cooperate in the ongoing grand jury investigation.
McMahan has admitted that Phipps took him on various trips and sponsored several fund raisers for him.
McMahan is in his second four year term in office having been re-elected in 2006.
The McMahans will likely be arraigned sometime next week.
