State Auditor convicted of felony corruption.

[Oklahoma] State Auditor and Inspector Jeff McMahan faces automatic suspension from office after a federal jury convicted him and his wife on three of eight felony corruption-related counts.

Jurors found that 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.

After 13 hours of deliberations over two days, jurors found the couple guilty on a 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.

Prison sentences are likely. Federal sentencing guidelines treat public officials more harshly in corruption cases, which would portend a longer sentence for Jeff McMahan than his wife.

Outside the courthouse, jury foreman Michael Miracle said that after hearing nine days of testimony and arguments, he considered the state auditor "a small fish in a big pond with a lot of whales.”

"Granted, he's an elected official, and he should be held to a higher standard. But there's a lot of other people that were involved,” Miracle said. "I just don't think Mr. McMahan was one of the ringleaders.”

An emotional verdict
Three jurors appeared to wipe tears as or after the sentences were read. As they filed out of the courtroom about 2:15 p.m., none looked at the McMahans.

Jeff McMahan, 48, seemed to choke up as the guilty verdict on the first count of conspiracy was read, then exhale as the judge announced "not guilty” to the first of the five mail fraud counts.

His wife, 43, sat clutching her husband's wrist but showed no emotion as the verdicts concerning her were read.

Jeff McMahan's attorney, Rand C. Eddy, said he was "extremely disappointed” by the verdicts. He said it's unclear whether his client will resign.

In a written statement Saturday, Gov. Brad Henry called on Jeff McMahan to step down.

"Auditor McMahan has had his day in court and a jury of his peers has spoken,” Henry said. "In light of the guilty verdict, I believe he should resign his office immediately so the state of Oklahoma can move forward under the leadership of a new state auditor and inspector. It is critical to restore public trust in that position.

"As governor, it will be my duty to appoint a successor. I will begin that process as quickly as possible.”

In a separate statement, House Speaker Chris Benge said impeachment proceedings are likely if Jeff McMahan doesn't quit.

"We will now await Mr. McMahan's decision on whether he will resign his position on his own or if the House will need to move forward with the impeachment process,” Benge said. "I certainly hope the House doesn't have to have an expensive and redundant impeachment proceeding, but we stand ready to do so if necessary.”

Lori McMahan's attorney, Kevin Krahl, said his next step is to "just go figure out the sentencing possibilities ... evaluate our options and go from there.”