New auditor seeks to restore trust
Former bank official ready to take on challenge.
New state auditor seeks to restore trust

By Michael McNutt
Published: July 11, 2008

Oklahoma's new auditor and inspector says his top priority is restoring public confidence and trust in the office.


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"I believe the taxpayers of the state of Oklahoma deserve somebody to fulfill this office that's qualified,” said Steve Burrage, a longtime Antlers banker and a certified public accountant. "I have the time to do it. I relinquished daily operations of my bank a couple years ago and I look forward to serving the taxpayers of Oklahoma.”

Burrage, a Democrat, was appointed Thursday by Gov. Brad Henry, less than a month after Jeff McMahan resigned as state auditor after a federal jury convicted him and his wife on three felony corruption-related counts.

Burrage, 56, began his duties Thursday after being sworn in by Oklahoma Supreme Court Justice Steven Taylor.

Burrage met Thursday with the auditor's staff and said he expects to make no changes.

He said he wants to gain the trust and respect of the office's staff and employees.

"They have done an outstanding job of fulfilling the duties of that office in absence of the previous auditor,” he said.

Burrage said he intends to seek election to a full four-year term as auditor in 2010.

Before being sworn in as auditor, Burrage said, he resigned from two posts — a state board that provides group insurance for state employees and the Oklahoma City branch of the Federal Reserve Bank.

Burrage has more than 30 years experience in banking and accounting. He has led FirstBank of Antlers since 1982, serving as its president and chief executive officer. He is now chairman of the board.

He also is a certified public accountant and was a partner in Burgess and Burrage Certified Public Accountants from 1977 to 1982.

"It is extremely rare that you have someone of the caliber of Steve Burrage who is willing to step out of the success that they've had in the private sector and step into the public sector,” Henry said.

"Steve has impeccable credentials and a reputation that is beyond reproach,” he added. "Steve Burrage is without question the most qualified auditor and inspector in our state's history.”

Burrage, the father of three grown children, earlier had won races to serve on Antlers' city council and school board.

He is the brother of Michael Burrage, an Oklahoma City attorney and a former U.S. District judge, and the uncle of state Sen. Sean Burrage, D-Claremore.

Campaign records show Steve Burrage donated $4,000 to Henry's 2006 re-election campaign.

Who were applicants?
The governor said a "good number of applicants” sought the post.

Henry, a Democrat, said he considered members of both political parties.

Applicants included Republican Michelle Day, the acting auditor since McMahan resigned last month.

She had been running the office since January after McMahan was indicted and he turned over daily operations to Day, the deputy auditor and the office's attorney.

Henry said Day and her staff have done "a great job” under difficult circumstances.

"That office has (been) run without any question of difficulty or impropriety,” the governor said. "I hope that Michelle will continue to work side by side with Auditor Burrage.”

Gary Jones, the Republican who narrowly lost to McMahan in 2002 and 2006, also applied.

"It's the governor's appointment to make,” said Jones, now chairman of the Oklahoma Republican Party.

Henry's other appointees
This is the fourth time Henry has filled a vacancy in a statewide elective office. He named Kim Holland as insurance commissioner in 2005 to replace Carroll Fisher, who resigned to avoid a Senate impeachment trial, and named Scott Meacham that same year as state treasurer to succeed Robert Butkin, who resigned to take a job at the University of Tulsa. Both Holland and Meacham were elected to full four-year terms in 2006.

In 2007, Henry appointed Jim Roth to the Corporation Commission to replace Denise Bode, who went into the private sector. Roth, a Democrat, is seeking election to fill the remaining two years of the term.

Jurors last month found Jeff and Lori McMahan illegally accepted excessive campaign money, jewelry and trips from southeastern Oklahoma businessman Steve Phipps.

In return, the state auditor, with his wife's help, provided favors for Phipps' abstract companies, the jury determined.

Jurors found the couple guilty on one conspiracy count and two counts of violating the Travel Act to promote bribery. The Travel Act counts involve trips the McMahans took at Phipps' expense in 2003 and 2004.

Jurors acquitted both on five mail fraud counts.

The McMahans are awaiting sentencing.


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The first thing they need to do is investigate this fraudulent I-40 realignment. They'll find more abuses past the one at the STB.
Richard, Oklahoma City - Jul 11, 2008 1:50 PM
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Francis Stipe has made several trips to Antlers in the last
few weeks -- working on 'deals'.

The Stipes ofter deal with the Burrage bank. It got started
when Gene Stipe helped Michael Burrage get his Federal Judge appointment -- for a sweet deal on a oil loan.

Gene and friends have supported Sean Burrage from the
beginning.

Very tight working relation. Jeff McMahan and Clifton Scott
before him were part of the Stipe 'machine'.

They have now put a new replacement in -- to carry on business
as usual.
Harold, McAlester - Jul 11, 2008 12:04 PM
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A little info on the Burrage family. They have very close ties to former Senator Stratton (the tort lawyer's best friend) Taylor. State Senator Sean Burrage was a member of Taylor's law firm in Claremore. Add in the fact they are from Little Dixie, ie SE Oklahoma (Antlers) and Michael Burrage (former federal judge) is also Gene Stipe's defense attorney and long time friend and you see good old boy politics as usual out of the Governor. With a Stipe and Taylor buddy watching state finances and Drew "look the other way if its a Democrat" Edmondson watching the state laws how screwed up can one state get?
Steven, Guthrie - Jul 11, 2008 11:31 AM
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Here is the big one for Burrage to show his metal? The Gov's friends, e.g., Barry Switzer, for one are promoting this scheme --- Oklahoma's tax credit abuse has --- cost at least a $billion --- with virtually no real business development. Oklahoma's plan based on a 30% tax credit, allows some to perform a paper shuffle and --- take 200% of the investment in tax credits, they can sell for cash. --- All the while the investors --- are only required to put 25%, in the venture. --- Eliminating all risks and enjoying --- an immediate 75% profit. --- Sounds like a simple no brainer, but just try stopping something like this with so many big donors and state officials reaping the profits. Yes, --- it is not illegal for state officials, to benefit. --- The same law requires state officials to hide how much the program is costing, where the money is going and the identities of everyone benefiting. This program operates outside the state budget and with total autonomy, void of oversight! How sweet can it get? Details are on --- http://prowlingowl.com
Nick
Nite, Oklahoma City - Jul 11, 2008 9:32 AM
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