The Perry Daily Journal (Perry, Okla.), Vol. 100, No. 132, Ed. 1 Thursday, July 15, 1993 Page: 2 of 14
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P. 2, Perry Daily Journal Thursday, July 15, 1993
Probes Heating
Up By State,
Federal Agencies
Say Something
Good About
Perry Today!
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By RON JENKINS
Associated Press Writer
OKLAHOMA CITY (AP)
— Things appear to be heat-
ing up in the state and fed-
eral investigations of tran-
sactions made by the form-
er chief trader in the office
of state Treasurer Claudette
• Henry.
On Wednesday, the head
of the Oklahoma Securities
Department said he was
nearing a decision on
whether to act against
brokers involved in the tran-
sactions, which one official
contends cost taxpayers $6
million.
In other developments:
— Mrs. Henry confirmed
to The Associated Press that
she had been questioned by
the FBI about transactions
by Patricia Whitehead, who
recently resigned. The trea-
surer defended Ms. White-
head and said she knew of
no improper trading in her
office
— State Auditor Clifton
Scott, whose investigative
audit began of the trea-
surer’s office began in
January, said he “would not
be surprised if charges are
not filed" in the case.
— And sources said some
of the transactions by Ms.
Whitehead resulted in fees
to brokers that were more
than 100 times more than
they should have been.
Irving Faught said he is been in her office, but she
reviewing the transactions did not feel compelled to
in light of accusations of hire an attorney in the case,
alleged third-party fees. Dan Vogel, spokesman for
Faught said he had not the FBI office in Oklahoma
made a final decision on City, said he could not com-
whether any violations of ment on whether or not a
the Oklahoma Securities Act federal probe is under way.
have occurred. Sources say the case also
He said he knows the tran- is being looked at by the of-
sactions are the subject of fice of Attorney General
state and federal investiga- Susan Loving and the Inter -
tion, but it is his duty under nal Revenue Service.
state law to take action on They said the case is not
any securities violations. before the multicounty
“This thing deserves to be grand jury meeting in Okla-
looked at from all angles," homa City, but the grand
he said. “You’re talking jury’s subpoena power was
about Oklahoma taxpayer used to secure private finan-
dollars.
cial records of Ms. White-
“I’m intent on getting this head.
thing out and resolved. I Ms. Whitehead has an un-
think we’re pretty close to listed telephone number and
being ready. I’d like to get could not be reached.
under way within a couple of
weeks.”
Faught said if any viola-
tions occurred, he could
take administrative action
to revoke a license or file
suit in district court He said
he might hold hearings or
negotiate a settlement with
brokers.
Mrs. Henry, in an inter-
view with The AP, said she
is frustrated because she
has not been given any spe-
cifics of alleged impro-
prieties. Until she does, she
said she is sticking by her
support of Ms. Whitehead.
She said FBI agents had
Father Killed
When Children
Stick Together
“There’s no question that
the $6 million is a misuse of
funds that should have gone
into the state General
Fund,” Scott said.
Mrs. Henry said she was
warned by Scott at a break-
fast meeting about alleged
improper trading by Ms.
Whitehead, but did not think
much of it
Site said allegations of
“shaving points" were
made at the meeting. "What
does shaving points mean?
That sounds like a football
game or a basketball
game,” Ms. Henry said.
Scott’s office confirmed a
KOCO-TV report Tuesday
that showed one purchase of
a $25 million treasury note
by Ms. Whitehead netted
$187,500 for brokers, while
the profit on similar tran-
sactions in surrounding
states was between $500 and
$8,000.
“They (the treasurer’s of-
Safe deposit boxes
By ELLEN KNICKMEYER authorities who came to fice) paid the highest pur-
Associated Press Writer Dutton’s secluded, brushy chase price in the world on
OKLAHOMA CITY (AP) acreage to try to help, said that particular security on
— Lonnie Dutton's children Bill Chambers, the oldest that day on Wall Street,"
stuck together, sometimes boy's principal. said Steve Tinsley, who is
squeezing in four to a seat on "It’s a tragedy he felt like heading up the investigative
the school bus into town. he had to take it upon him- audit.
So Dutton’s two oldest self,” Chambers said. Tinsley said most of the
boys, ages 12 and 15, acted The only time Chambers broker fees went to Plan-
together earlier this week ever had to take the 15-year- ners Independent MGM of
when it came time to do old to task was when he San Diego, Calif., even
something about their heard the boy was throwing though the transactions was
father’s alleged sexual a basketball on the school made with Adler Coleman
abuse of their 10-year-old bus. The boy stopped. Inc. of New York.
sister. A member of the football The yet-to-be-completed
One of the boys held a and basketball teams, the investigative audit, sources
deer rifle at his sleeping teen-ager never signaled his said, showed even more
father’s head, and the other problems at home with bad glaring examples of alleged-
pulled the trigger, an at- grades or bruises any more ly excessive fees going to
torney says, than he did with words, Planners - including a fee
“Probably both were so Chambers said, of about $250,000 on a $25
scared neither one knew “He was just an all Amer- million transaction in
what to do separately," said ican, apple pie little boy," December, 1992.
Robert Perrine, the Norman Chambers said. Ms. Whitehead once work-
lawyer appointed for the The children had been iso- ed for Planners and had
12-year-old. lated since school let out for been a longtime business
Authorities had been to the summer, forbidden by associate of Planners of-
Dutton’s rural Grady Coun- their father to bring friends ficial Patrick Joseph Kushe,
ty home, about 50 miles over or to go to friends’ Scott said.
southwest of Oklahoma homes. Chambers said. In addition to the transac-
City, several times to in- “His dad taught him to tions with Adler Coleman
vestigate relatives’ allega- stay to himself," Chambers and Planners, investigators
tions the unemployed, said of the oldest boy. “I are checking into some 1991
divorced man was abusing guess when it came to hand- purchases involving Mabon
his three sons and one ling his problem, he solved Securities Corp. of New
daughter. it himself, just like he had York.
Late Monday they found been taught.” The treasurer’s office
Dutton, 39, dead on his People in town remark on stopped trading with Mabon
couch, killed by a single shot the similarity to a case 15 after news stories question-
to the head fired at close miles away in Cement last ed whether the company
range, summer. Fifteen-year-old had a licensed represen-
The two boys are in the Billie Joe Powell received a tative in the state,
custody of juvenile auth deferred sentence for shoot- Scott said the examples of
orities and probably will not ing her sleeping father to trades several “basis
be tried as adults. Assistant death after years of sexual points” over normal broker
District Attorney Richard abuse. fees stopped this year after
Van Dyck said. The state Townspeople then raised his audit got well under way.
has turned their sister and the money to post her bond. He said his auditors
8-year-old brother over to an People in Grady County received considerable
aunt. appear as supportive of the resistance from Mrs.
The four were sexually, Dutton boys. Henry’s office on requests
physically and emotionally “A lot of people are say- for certain records and once
abused, and the sexual ing. 'If he did what they said had to ask for assistance
abuse of their sister par- he did, something needed to from the attorney general to
ticulariy disturbed the older be done,’” said Joe Tunnell, compel Mrs. Henry to turn
boys, said Sarah Evans, an head football coach at Rush over some documents.
Oklahoma City lawyer ap- Springs High, Mrs. Henry deniedherof-
pointed for the 15-year-old. “All I can say is every- fice had been uncooperative
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Fear of their father ap- body’s just standing behind and said she was “working
parently kept the children the boys,” said one female with" Scott when Attorney
from saying anything to the relative of the Duttons, who General Susan Loving inter-
declined to give her name, vened.
Perrine said he hopes both Scott said one problem en-
boys receive counseling, countered by his auditors
The worst possible punish- was that Mrs. Henry’s office
ment for the oldest boy didnotkeep taped telephone
would be separating the conversations showing
children, Chambers said, quotes from three brokers
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“He did this because of his on any given transaction,
siblings, and what the sys- Mrs. Henry contended
tem usually does is split that was the "work pro-
them, doesn't it?” Cham duct” of her office and re-
bers asked, quested an attorney gene-
“When they takeaway the ral’s opinion.
reason he did this, I think On Feb. 22, Ms. Loving
it’s going to be so much issued a legal opinion
harder on him,” he said, stating the recordings were
“He was defending his fami- not exempt from the Open
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Main Bank:
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Watson, Milo W. The Perry Daily Journal (Perry, Okla.), Vol. 100, No. 132, Ed. 1 Thursday, July 15, 1993, newspaper, July 15, 1993; Perry, Oklahoma. (https://gateway.okhistory.org/ark:/67531/metadc2256911/m1/2/: accessed May 28, 2024), The Gateway to Oklahoma History, https://gateway.okhistory.org; crediting Oklahoma Historical Society.