Note: Throughout the following direct quotes from various sources will be presented in Bold. Commentary of the Editors of Bubbaworld will appear in Italic.
Just about anywhere one goes there are stories of "ghosts". Stories of haunted houses, churches, bridges, barns and factories abound. It's seldom if ever that one hears of a department of government being haunted but that is exactly what happened at the Oklahoma State Department of Health.
Initial news media reports of "ghosts" infesting the Oklahoma State Department of Health surfaced in May of 2000 as an outgrowth of a federal investigation into corruption at the department.
By the time the "ghosts" were fully exorcised from
the Oklahoma State Department of Health, the Multi-County Grand
Jury investigating the scandal had issued 302 subpoenas for
witnesses and evidence, head from 150 witnesses, examined 1242
exhibits and issued 12 indictments involving 15 individuals and
159 separate criminal counts.
Additionally the grand jury found that some current and former
members of the Oklahoma Legislature had used their influence to
secure employment at the health department for family members,
friends and associates, often without regard to the
qualifications of those hired. In several cases this involved
jobs which were nothing more than "shames" with no real
worked expected or required.
These and other instances of corruption, abuse and criminal conduct at the Oklahoma State Department of Health were documented in a report prepared by the Fedilis Group Inc. The report is the result of an independent investigation ordered by Acting Director of the department, Jerry Regier in May of 2000 as the scandal broke. The degree of corruption existing within the department was revealed in The Fedilis Report. This report should be read by anyone wishing to understand the depths to which the department sank.
In July of 2001, the Multi-County Grand Jury released its Final Report on the investigation into the health department scandal. What follows are direct quotes from that report:
"Our examination of the Oklahoma State Department of Health practices has revealed serious deficiencies, and at times blatant disregard for state statutes, regulations and policies and procedures, in the following areas: the manner in which employees are hired, supervised and retained; the manner in which state funds are disbursed for employees' salary and travel; the lack of regulation regarding employee's work hours and leave use; and improper use of state equipment."
"We have been informed that various members of the Oklahoma Legislature may have circumvented policies and procedures at the OSDH in order to obtain or protect employment for certain employees, supervisors and officials of the OSDH. In fact, we were informed that it was common knowledge in the OSDH that certain legislators directed OSDH officials and supervisors to take, or refrain from taking, specific actions and to pay political appointees a higher salary regardless of their qualifications."
"We have also learned of instances when legislators would give specific directives to OSDH employees to perform certain tasks, regardless of the employees job duties and absent approval from the employee's chain of command."
Both the grand jury report and Fedilis Group report indicate the problems at the Oklahoma State Department of Health were systemic. Some of those indicted held the highest offices in the department and had for years. In some instances the "Ghosts" had been haunting the department for several years at the time of their discovery and exorcism.
Dr. Jerry R. Nida - Health Commissioner:
Resigned as Director of the Oklahoma State Department of
Health at the height of the scandal. Nida attributed his
resignation to "medical reasons". He held the post of
Health Commissioner for six years. On 7/27/01 an indictment
charged Nida with knowlingly signing false employee time reports.
On 10/19/01, Nida pleaded guilty to to conspiracy to sign false
time reports. Nida received a three year deferred sentence and
was ordered to perform 240 hours of community service. As part of
his plea deal Nida agreed to testify against two others accused
in the scandal. Of his involvement in the "Ghost
Employee" scandal, Nida was quoted as saying:
"While serving as commissioner of health, I signed some
time sheets from January 1995 to July 1998 for Roger Pirrong
without checking the accuracy of the time reported to me. I had
reason to know that they were not accurate and Mr. Pirrong did
not correct them."
"I was intimidated by legislative members. I felt like -
if I did not treat him specially - there would be consequences,
not for me personally, but for the department."
On 3/14/02, The Oklahoma State Board of Medical Licensure and
Supervision suspended Dr. Nida's medical license for 60 days
and placed him on three years probation owing to his involvement
in the "Ghost Employee" scandal and his guilty plea to
conspiracy charges.
On 10/21/02, Oklahoma County District Judge Bass-Jones modified
Nida's 3 year deferred sentence to a one year deferred
sentence in response to a motion from Nida's defense
attorney.
Roger C. Pirrong - Deputy Health Commissioner
On 5/10/01, an indictment against Roger C. Pirrong, age 67 and a 35 year employee of the Oklahoma State Department of Health was unsealed. The indictment alleged four counts of obtaining money by false pretenses. Pirrong was accused of accepting $352,084 in salary from 1995 until 1998, a period in which prosecutors allege he did not work. Pirrong took full-time annual and sick leave starting in December 1998 and shared leave in the fall of 1999 until his retirement. He retired from the Oklahoma State Department of Health in April 2000. Pirrong who had been in ill health for several years served as state registrar of vital records. His signature appears on the birth and death certificates of many Oklahomans. During the investigation of Pirrong's absences from work, Mary Lynn Hillemeyer, his assistant, testified that weeks would go by when he did not show up for work due to illness. She further indicated that during late 1997 or early 1998, he might only come into the office during the lunch hour. She also testified that then Commissioner of Health Jerry Nida told her in 1997 to fill in Pirrong's time sheets as if he had perfect attendance and that "modifications" would be made later. Hillemeyer indicated that she did not know if corrections were made to those time sheets. While awaiting trial on the alleged charges Roger C. Pirrong died on 12/01/01 having suffered a stroke a week earlier.
Brent VanMeter - Deputy Health Commissioner
In addition to being a deputy health commissioner, VanMeter
was state coordinator of nursing home inspections. It was that
position which brought VanMeter to the attention of the FBI which
was conducting a four year investigation into a "kickback
scandal" involving Oklahoma nursing homes and the Oklahoma
State Department of Health. As a result of that investigation
VanMeter was arrested by the FBI on federal bribery charges while
in his office on 5/02/2000. Following VanMeter's arrest, he
was fired by the Oklahoma State Health Department on 5/04//2000,
the same day he was arraigned on the federal charges. A copy of
the affidavit pertaining to VanMeter and submitted by FBI agent
Mark D. Seyler is
Available Here. In order to understand the degree of
corruption existing within the Oklahoma State Department of
Health, it is recommended that the VanMeter affidavit be reviewed
in detail.
As the scandal was breaking over the health department, Acting
Director Jerry Regier, in May of 2000 hired out outside firm to
conduct an investigation of health department operations and to
prepare a report on the findings of that investigation. On
9/21/00 the report by Fidelis Group Inc. was presented to the
State Board of Health, and released to the news media. That
report Available
Here is a scathing indictment of Brent VanMeter and details
the degree to which he controlled and corrupted the department
for his personal gain. It is highly recommended reading.
On 10/18/00, a federal jury found Brent VanMeter and nursing
home operator James Robert Smart guilty on bribery charges. On
12/18/00 VanMeter and Smart were each sentenced to three years in
prison and a $50,000 fine. Both men are to be under supervision
for three years following their release from prison. On 1/18/01
VanMeter and Smart reported to federal prison to being their
sentences.
On Feb 20, 2002 Brent VanMeter and nursing home operator E.W.
"Dub" Jiles were indicted by a federal grand jury on
charges alleging bribery and money laundering. On 11/22/02,
VanMeter pleaded guilty to one count of conspiring to deprive
Oklahomans of the right to honest services from a state official.
Additional charges involving money laundering and bribery are
expected to be dropped as part of the plea deal. Jiles is
scheduled to go to trial in March of 2003 and VanMeter is
expected to be the star prosecution witness. VanMeter is facing a
possible sentence of five years in prison and/or a fine of
$250,000. He also agreed to forfeit $14,753 as part of the plea
agreement.
VanMeter is currently awaiting trial in Oklahoma County Distict
Court on the state conspiracy charges involved in the "Ghost
Employee" scandal. His state trial is scheduled for
4/21/03.
Editor's note: Nida, Pirrong and VanMeter were charged together in criminal felony complaint number CF-2001-4155 on 7/27/01. The official court record of that case is Available Here. VanMeter was charged, along with James Walker on the same date in a second felony criminal complaint, that one is number CF-2001-4154. That is the case scheduled for trial on 4/21/03. The official court record of that case is Available Here.
Doyle Carper - Deputy Health Commissioner
As a Deputy Health Commissioner, Doyle Carper was in charge of county health departments in the state of Oklahoma. He held that position for three years prior to his firing in June of 2000. On 7/27/2001 Carper was charged with conspiracy to defraud the state. During the "Ghost Employee" investigation it was discovered that Carper had four "ghosts" on the payroll which he knew were doing little or no work for the state. Carper was accused of signing payroll and travel reports for the four "ghosts". On 9/16/02, Carper entered a guilty plea to the charge and did so without benefit of any type of "plea bargain" with the state. On 11/25/02, Carper received a three year deferred sentence and was ordered to perform 150 hours of community service. During the "Ghost Employee" investigation Carper was reported to have told health department officials, "he knew keeping the employees on the payroll was going to be his downfall someday." Carper had worked for the health department since 1967, with the exception of a two year break during the Vietnam war. During a pre-sentencing investigation he reportedly told probation officers that he was promoted in a system where certain practices were in place and any attempt to change them would be futile.
Editor's note: The official court record of the case against Doyle Carper is contained in criminal felony complaint number CF-2001-4153 and is Available Here.
James E. and Rebecca Lane - An Alleged Ghostly Couple
Of all the alleged "Ghosts" discovered in the
"Ghost Employee" scandal none approach the husband/wife
team of Jim and Rebecca Lane in the number of charges filed
against them. James E. (Jim) Lane is in his late 60's and a
former Oklahoma Senator, serving as such between 1969 and 1980.
Jim Lane was on the payroll of the health department for 10 years
prior to his retirement in May of 2000, as the "Ghost
Employee" scandal was sweeping the agency.
Rebecca Lane is in her middle 40's and became an employee of
the health department in 1990, took a six year unpaid leave of
absence between 1992 and 1998 and resurfaced as a health
department employee in 1998. She was fired from the health
department in June of 2000.
Both Lanes were listed as environmental health consultants with
the department and both were indicted for defrauding the state by
accepting pay for work they never performed. Rebecca Lane was
indicted on twenty counts of obtaining money by false pretense on
12/21/2000 in criminal felony case number CF-2000-7052 Available Here. Jim Lane was indicted on
1/26/2001 on sixty-seven counts of making a
false/fictitious/fraudulent claim in criminal felony case number
CF-2001-492 Available Here.
On 5/01/02, James E. (Jim) Lane, in a plea deal, pleaded guilty
to 1 amended count of conspiracy to file false claims against the
state. In exchange all other charges were dropped. On 6/03/02,
James E. Lane, was sentenced to 10 years in prison, with five of
those years suspended. He was also ordered to pay $14,000
restitution.
On 01/15/03, Oklahoma County District Judge Ray C. Elliott
released Jim Lane from prison, Lane having served seven months of
his five year sentence. In releasing Lane, Judge Elliott was
quoted as saying:
"If the intention was that an example be made of you,
the point has been made.”
Jim Lane indicated that he has a job lined up, working for HCFS
Inc, a company owned by Oklahoma Senator Gene Stipe. According to
media reports, Jim Lane has already paid $29,000 in restitution
and still owes $76,000.
On 01/27/03, Rebecca Lane pleaded guilty to one count of willful omission to perform a duty by a public officer in a plea deal with prosecutors. As part of the deal all other charges were dropped. Rebecca Lane received a one year suspended sentence, was ordered to perform 500 hours of community service and to make restitution in the amount of $33,000.
Editor's note: The Lane's cases have provided
fascinating glimpses into not only the operations of the Oklahoma
State Department of Health but also the Oklahoma Legislature.
For example on 3/01/02, Jim Lane's attorney filed the
"defense witness list" for Lane's pending trial.
The list contained 99 names, including the names of 26 Oklahoma
Legislators, as well as former legislators, prominent lobbyists
and state officials setting off a "panic attack" of
sorts in the state capitol as many of those named moved to
distance themselves from Lane.
On 4/26/02, Lane's attorney filed a motion to compel 24
legislators to testify via video tape as part of his planned
defense based on a claim of being an "unofficial
lobbyist" for the health department. Whether this was a
legitimate defense move or simply a ploy intended to leverage a
plea deal one can only speculate. However the fact is that after
Lane's second motion, the one requesting video taping of
legislators testimony, a deal was struck within less than a
week.
One of the more fascinating aspects of Rebecca Lane's case
surfaced when her attorney objected to the introduction into
evidence a portion of Rebecca Lane's grand jury testimony.
According to media reports, Assistant Attorney General Lisa
Goodspeed asked Rebecca Lane what job she was assigned when she
went to work for the health department. Lane replied,
""I don't know. They have certain categories, and I
don't exactly know."
Makala Sue Bannister - A Scholarly Ghost
Makala Sue Bannister was a health department employee from
1995 until she resigned from the department in June of 2000. She
was charged on 10/13/2000 with eight counts of obtaining money by
false pretenses. Later a 9th count alleging violations of the
computer crimes act was added. The charges involved the time
period from October 1999 through April 2000, a time frame when
Bannister was carried and paid as a full time employee of the
heath department while she was in fact enrolled as a full time
student in the University of Oklahoma Dental School and
performing little if any work for the health department.
In March of 2000, while on spring break from the OU Dental
School Bannister's time sheet indicated she worked for three
days and was off sick for two days. During the investigation
Bannister revealed that during that time frame she was in fact in
Bolivia.
On 6/29/01, Bannister entered a "blind" guilty plea to
one count of obtaining money by false pretenses and made
restitution in the amount of $14,900, the amount she was paid for
the period in question. On 10/24/01, Bannister received a three
year deferred sentence and was ordered to perform 300 hours of
community service over the course of her three year probation.
Her attorney indicated that he felt it would be difficult for her
to perform so much community service while a full time student.
The official court record from Bannister's case, criminal
felony case number CF-2000-5887 is Available Here.
Frederick Joe Pierce - The Ghost in the Storage Room
On 11/16/2000 the Multi-County Grand Jury indicted Frederick Joe Pierce, age 42 of Talihina, Oklahoma on 11 counts of obtaining money by false pretense. The grand jury charged that Pierce received 11 pay checks totaling $22,359.82 for work he did not perform for the health department.
Pierce was employed by the Oklahoma State Department of Health as a regional health consultant under a federal grant program in July of 1999. He was fired in June of 2000. When investigators exploring the "Ghost Scandal" checked Pierce's Oklahoma City office they learned that it was being used as a "storage room".
On 1/09/02, Pierce pleaded guilty to all 11 counts of the indictment, as part of a plea deal under which prosecutors agreed not to attempt to revoke Pierce's probation from charges involving a stolen car ring in the 1980's. Pierce was sentenced to 11 one year concurrent sentences which were suspended. As part of the plea agreement Pierce agreed to testify against his direct supervisor and former Deputy Health Commissioner, Doyle Carper. Pierce paid $22,359.82 in restitution at the time of his sentencing. The official court record from Pierce's case is Available Here .
Jamie Lynn Pirrong - A Ghostly Daughter-In-Law
On 08/08/2001, Jamie Lynn Pirrong, age 34, of Newalla, Oklahoma and the Daughter-In-Law for former Deputy Director Roger C. Pirrong was indicted on felony charges of obtaining money by false pretense. At the time of her firing from the health department in September of 2000, she was listed as a health facilities consultant and had been an employee of the agency for 13 years.
On 10/16/2001, Jamie Lynn Pirrong in a plea deal with prosecutors pleaded guilty to an amended charge of willful omission of duty by a public officer, received a one year suspended sentence and was ordered to pay $4,075.44 in restitution. Pirrong admitted in court documents that she received pay for 39 days of work, even though she had been absent on those days. The official court record from Pirrong's case, criminal felony case number CF-2001-4326 is Available Here .
Vernon Ray Johnson - A Highly Traveled Ghost
On 09/22/2000, the Multi-County Grand Jury investigating the "Ghost Employee" scandal at the Oklahoma State Department of Health indicted Vernon Ray Johnson, age 62 on 33 counts. One count alleged obtaining money by false pretense and 32 counts alleged making false travel claims. It was alleged that Johnson received at total of $68,939.19 in pay from the state between Oct. 1, 1997, and June 1, 2000 while doing no actual work for the department and that he filed false travel claims totaling $12,863.91 between August 1997 and April of 2000. Johnson was listed as an "Eldercare" consultant with the health department and was listed as working in the LeFlore County Health Department office in Talihina, Oklahoma. Johnson was fired in June of 2000 as the "Ghost Employee" scandal was breaking open.
Johnson's indictment was the first involving an allegation of "Ghost Employment" and is the last pending such case, as of the time of this writing.
During Johnson's preliminary hearing on 2/23/01, witnesses testified regarding Johnson's employment and history with the department and his connections to powerful state officials.
George Dowell, administrator of the LeFlore County Health Department, testified that in 1996 he got a call from Doyle Carper, deputy health commissioner. In that call Carper instructed Dowell him to meet with Johnson regarding a job with the department.
Deanna Corn testified that Johnson at times received calls from State Representative and Democratic Party Chairman Mike Mass or his secretary. She also testified that Johnson would tell her that he had to go to "party and hang out with Mike Mass". Rep. Mass according to media reports acknowledged knowing Johnson for years and admitted to helping Johnson get a job with the health department. Reports indicated that Rep. Mass readily acknowledged that he often recommends people for state jobs.
Corn also testified that Johnson told her:
"if he knew the gravy train was going to be this good, he
would have gotten on it a long time ago." Corn stated that
she understood the comment to mean that Johnson was getting paid
and not having to work.
Johnson's case, criminal felony case # CF-2000-5554 was originally set for trial on 01/28/02. It was subsequently re-scheduled for 09/09/02. Prior to trial, in a plea deal, Johnson pleaded to five of the numerous counts against him and received a five year deferred sentence. The official court record on the case is Available Here
While this article covers but a portion of the scandal that swept over the Oklahoma State Department of Health during the summer of 2000, it does provide a glimpse into the degree of corruption common in Oklahoma government. This is not the first scandal that has swept the state and it isn't the last. Currently a kickback and fraud scandal is sweeping the Oklahoma Tax Commission.
The largest governmental corruption scandal in US history took place in Oklahoma, when over 200 County Commissioners and suppliers either pleaded guilty or were found guilty in a massive kickback scandal during the 1980s. Prior to that, several Justice of the Oklahoma Supreme Court were found to be involved in corruption, bribery and other criminal conduct. A former Governor of Oklahoma, David Hall, was arrested on federal corruption charges within days of leaving office. Hall was subsequently convicted and served time in federal prison.
Every decade it seems there's at least one new and major scandal in Oklahoma government. Most if not all of them were the outgrowth of the "Good Old Boy Network" that has and still controls government in the State of Oklahoma. We here at Bubbaworld can't help but wonder, when if ever the Average Okie is going to say enough is enough and address the root of all governmental evil in Oklahoma, the State Legislature and the Good Old Boys that own it.