Witnesses: Lawmakers took bribes

MUSKOGEE, Okla. (AP) _ Three witnesses in the federal trial of a McAlester businessman testified that three former state lawmakers accepted bribes for steering state funds to a gambling-machine maker.

Mike Stokes, general manager of Indian Nation Entertainment, testified Thursday that former state Reps. Mike Mass, Jerry Hefner and Randall Erwin were paid in cash based on 10 percent of the gross income of the machines.

Francis Stipe, 76, is on trial for conspiracy, mail fraud, witness-tampering and engaging in an illegal monetary transaction.

Stokes told the jury that when Indian Nation Entertainment owner Steve Phipps decided to start paying by check, Mass did not object but that Hefner and Erwin refused to take checks.

The jury was shown voided checks, supposedly for consulting fees, made out to Erwin and Hefner for $17,500 each.

Reached at his office in Hugo, where he is executive director of the Little Dixie Community Action Agency, Erwin said he never gave approval for Indian Nation Entertainment to receive ``one dime'' from the state.

``I know nothing about any money going to INE from project money. I would never have been a part of that,'' Erwin said.

Erwin said he was paid a consulting fee for setting up meetings and was partially responsible for placing 28 machines at the Keetoowah casino in Tahlequah.

Phipps, Stokes and Mass have immunity from prosecution in the case in exchange for testimony in the Stipe trial. Hefner and Erwin have not been charged.

Hefner is now a Wagoner County commissioner. He did not return messages.

After resting on Thursday, the government on Friday asked the court to order Steve Covington to testify to further advance its case.

Covington is a close business associate of former state Sen. Gene Stipe's and has been described as his chief of staff. Gene Stipe, who is Francis Stipe's brother, has helped finance Covington's small loan businesses.

Meanwhile, the defense team has indicated that it might call Francis Stipe to testify when the trial resumes Monday.

The case focuses on his role in securing state funds to purchase property owned by his brother, Gene Stipe, for the National Pet Products property and paying a $48,000 kickback to Mass.

Gene Stipe, 81, faces the same charges, but his trial has been delayed because of mental competency issues related to dementia.