Former state Rep. Mike Mass pleaded guilty Friday to federal mail fraud charges stemming from the FBI’s latest investigation into schemes to divert public economic development money into the pockets of legislators and their business friends. The investigation also includes looking into illegal “straw man” campaign contributions to U.S. Congressman Dan Boren and others; however, Boren is not implicated in any wrongdoing, according to federal court documents filed by the U.S. Attorney.On the other hand, former longtime state Sen. Gene Stipe, the Huey Long-type political power boss of Little Dixie’s Democratic Party machine, is implicated in the kickback and illegal campaign contribution scheme that could land him in jail.
Stipe is already on probation for his conviction stemming from campaign finance violations in the failed Walt Roberts 1998 congressional campaign. That conviction forced Stipe from his legislative office and his lucrative law practice.
The current Stipe story has been doggedly pursued and reported by McAlester News-Capital reporter James Beatty. Beatty has reported that the corruption may have led to a loss of $3 million in public funds.
This week’s plea bargain, which could lead to a maximum 5 years in prison for Mass, marks another unraveling of the lingering Stipe political rope which has controlled McAlester-area politics for half a century. It means Mass is cooperating with federal prosecutors and will likely testify against Stipe and others about the alleged funneling of state money through local economic development organizations to Stipe's private businesses and into the pocket of Mass – a scheme outlined in the indictment papers and related search warrant documents filed in federal court in Muskogee.
During Stipe’s reign as legislator from McAlester from 1950 to 2003, the populist senator developed a political machine unprecedented in Oklahoma history. His practice of controlling and influencing local hiring by state agencies, including the Department of Human Services, the state Health Department and the state Tourism Department, and county government departments allowed him to amass significant power from those seemingly indebted to him.
In short, if you wanted a job in state or county government in Stipe’s district, you had to get his blessing. For much of Stipe’s tenure, the majority of county commissioners, mayors, city managers and law enforcement officials in his district were considered the “capos” of Stipe’s political organization. Many of those Stipe supporters are now gone, however, having jumped ship or been freed of their allegiance by Stipe’s recent disgraceful fall from senatorial authority.
One of the last ones was Mass, himself a former chairman of the state Democratic Party (a position he obtained due to the influence of Stipe).
Mass is alleged to have made $250,000 from the corruption. But at his plea hearing in federal court he asked for and obtained a court-appointed public defender.
Beatty asked prosecutors the obvious question. Where did all the money go?
“It’s in the wind . . . he blew it,” was the answer.
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Read more on the Mass plea bargain and Stipe investigation here.
