Former Senate President Pro Tem Mike Morgan and Two Others Charged with Conspiracy, Extortion, and Bribery

OKLAHOMA CITY—Sanford C. Coats, United States Attorney for the Western District of Oklahoma, and James Finch, Special Agent in Charge of the Federal Bureau of Investigation, jointly announce that a federal grand jury has returned a 63-count indictment against former Oklahoma Senate President Pro Tem MICHAEL STEVEN MORGAN, 56, of Stillwater, Oklahoma; attorney N. MARTIN STRINGER, 70, of Oklahoma City, Oklahoma; and lobbyist WILLIAM ANDREW SKEITH, 52, of Edmond, Oklahoma, that includes charges of conspiracy, extortion, bribery, and mail fraud. According to the indictment, these individuals had businesses pay Senator Morgan for favorable treatment in the legislature and with state officials. The indictment also alleges that these payments were disguised as fees for Senator Morgan's services as an attorney.

"The crimes charged in this indictment go to the heart of our republic and how our system of government operates," said U.S. Attorney Coats. "When elected officials decide public policy based on secret payments, they abandon this country's core principle that government should be of the people, by the people, and for the people."

"It is unfortunate when some politicians choose to betray the trust of the very people who expect and deserve their elected officials to represent the constituents' best interest and not the politicians' self-serving financial interest," said FBI Special Agent in Charge Finch. "The FBI will continue to ensure this type of corruption does not go unaddressed."

First Scheme—Company A

One of Mr. Stringer's clients was a business identified in the indictment as "Company A." Company A also hired Mr. Skeith as its lobbyist. The indictment explains that during the spring of 2005, this business was trying to get state and local approval for a new landfill. It is alleged that when Company A was faced with opposition to the landfill in the legislature and among county commissioners, Mr. Stringer and Mr. Skeith had Company A place Senator Morgan on a legal retainer of a flat $50,000 per year. In exchange, the indictment alleges, Senator Morgan used his position as an elected official to keep harmful legislation from passing and to push for bills that would cut back the power of county commissioners to regulate landfills. All told, the indictment alleges that Company A paid Senator Morgan $141,664.52 from 2005 until 2008, when he left the Senate. These allegations form the basis for charges of conspiracy, extortion, and mail fraud.

Second Scheme—Company B

The indictment further alleges that Mr. Stringer and Mr. Skeith shared another client, identified as "Company B." This business was hoping to build a power plant in northeastern Oklahoma with the Grand River Dam Authority. Starting at the end of 2004, Company B began paying Senator Morgan at a rate of $5,000 per month. The indictment states that by the time Senator Morgan left the legislature, he had received $250,000 from Company B, supposedly for serving as one of its attorneys. But, according to the indictment, Senator Morgan was taking money in exchange for official acts. Before Company B could build a power plant with the Grand River Dam Authority, it needed to change state law on public competitive bidding and bonding for public construction which, the indictment alleges, Company B accomplished in the 2005 legislative session. The indictment also alleges that Mr. Stringer and Mr. Skeith included Senator Morgan in meetings with public officials to suggest that he supported Company B's new power plant in his capacity as a leader in the Senate. These allegations form the basis for charges of conspiracy and mail fraud.

Third Scheme—Company C

Finally, the indictment charges Senator Morgan with taking 12 $1,000 bribe payments in 2006 and 2007 from a business that owned assisted-living centers, identified as Company C. It is alleged this business had been at odds with the Oklahoma Department of Health, which was attempting to impose regulations on assisted-living facilities. It is further alleged that in exchange for payments disguised as legal fees, Senator Morgan authored Senate Bill 738, which became law at the end of the 2007 session and helped Company C by lifting some of its regulatory burdens. These allegations form the basis for a bribery charge. They do not involve Mr. Stringer or Mr. Skeith.

On each of the conspiracy, extortion, and wire fraud counts, each defendant faces a potential penalty of 20 years in prison and a fine of $250,000. With respect to the bribery count, former Senator Morgan faces a potential penalty of 10 years in prison and a fine of $250,000. Furthermore, the indictment seeks forfeiture from each of the defendants in the amount of the proceeds of the crimes.

The public is reminded that the indictment is merely an accusation and that the defendants are presumed innocent unless and until proven guilty.

These charges are the result of an investigation conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Vicki Zemp Behenna.

Reference is made to the indictment for further information.