U.S. Attorney Says Okla.’s Stipe Illegally Ran Insurance Company

August 7, 2008

U.S. Attorney Sheldon Sperling has filed a complaint against former Oklahoma State Sen. Gene Stipe accusing him of illegally running an insurance company.

Stipe pleaded guilty in 2004 of perjury, conspiracy to obstruct a Federal Election Commission investigation, and conspiracy to violate the Federal Election Campaign Act, and was sentenced to five years’ probation. Stipe currently is in the custody of the U.S. Medical Center for Federal Prisoners in Springfield, Mo., for a mental evaluation, according to the Associated Press. He was ordered to jail in September 2007 for evaluation following a parole revocation hearing.

Sperling says Stipe held an ownership interest in Corporate Financing Group which was the parent company of American Land and Aircraft Title Company. He says that company was the underwriter for insurance policies sold through abstract companies owned by Stipe and others.

Stipe was barred from the insurance industry because of felony convictions.

Stipe was indicted last year on charges related to the alleged use of state money in a real estate deal involving a former business partner.

Source: Associated Press, U.S. Department of Justice

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