Published: August 23, 2008 12:00 am            

Bankruptcy trustee seeking more than $11,000 from Terrill

OKLAHOMA CITY --?The trustee assigned to state Rep. Randy Terrill's bankruptcy is seeking more than $11,000 from Terrill's estate, documents filed this week with the Western District Federal Bankruptcy Court show.

In a motion filed Tuesday, Edmond attorney John D. Mashburn -- who was reappointed as the creditor's trustee in the bankruptcy -- asked the court to direct Terrill "to immediately turn over ... $11,301 to the trustee."

"Randall Terrill was in possession, custody or control of property of the estate worth not less than $11,301 at the time of debtors' bankruptcy filing and is liable to account for and turnover the same to the Trustee without prejudice," Mashburn wrote.

Additionally, Mashburn asked the court to force Terrill to "immediately produce full and complete copies of all 'Campaign Contributions and Expenditures Reports'" from his 2004 campaign including "copies of all schedules and supporting documentation, copies of all checks, receipts and invoices for all reimbursements paid to debtors, records of all consulting fees paid to debtors (with documentation of the date such fees were earned and invoiced) and records of all loans from any party and all loan repayments."

Mashburn's motion also raised questions about Terrill's work as an adjunct professor at the Hillsdale Freewill Bible College in Moore.

"The trustee is further informed, by statements purportedly made by Randall Terrill to the press, that Randall Terrill was employed as a college professor prior to the date of the debtors' bankruptcy petition," Mashburn wrote, "that compensation for such employment was not reported in debtors' schedules and that Randall Terrill reportedly further stated that he was assured by his counsel that he did not need to report the income."

Because of that, Mashburn asked the court to "direct debtors to immediately produce full and complete copies of debtors' state and federal tax returns for (the) tax years 2004 and 2005 with all schedules, worksheets, 1099's and W-2s."

Mashburn also asked the court to force Terrill and his wife, Angela, to "immediately produce full and complete copies of all bank statements, deposits and checks for all accounts upon which debtors had signatory control for the months of July 2005 through July 2006."

Contacted Friday, Terrill's attorney, Jeffrey E. West, said he had just received Mashburn's motion and planned to respond to it. "I've just got the filing," he said. "I've gotten in touch with Mr. Terrill and we'll be discussing it next week."

The 23-page motion is the latest in a series of filings which surround the newly reopened 2005 bankruptcy case.

Earlier this summer, Mashburn asked the court to reopen the case after published reports in a south Oklahoma City Hispanic newspaper alleged irregularities between Terrill's bankruptcy petition and his state campaign filings.

At that time, Mashburn said state Ethics Commission records show Terrill had received funds from his campaign, which could be considered an asset.

"On July 18, the trustee received information that the debtor, Randall Terrill, was owed money by his campaign committee, 'Randy Terrill for State Representative 2004' at the time of his bankruptcy filing and that, subsequent to his bankruptcy filing, the committee repaid Mr. Terrill," Mashburn wrote in a July 18 motion. "Based upon the following information, the trustee believes there are assets which may be recovered and administered for the estate and the estate should be re-opened to allow further investigation and action by the trustee, the United States Trustee or other parties."

Terrill --?a Republican from Moore, and chairman of the House of Representatives' powerful Revenue and Taxation committee -- said in July that he "didn't mind the trustee taking a second look to make sure everything was done properly."

Since then, Terrill's attorney filed a motion on Aug. 8, asking the court not to reopen the case.

Friday, Mashburn declined to comment. "I prefer not to make a statement at this time," he said.

Terrill, the author of HB 1804, the state's controversial immigration law, has served as a member of the Oklahoma House of Representatives since 2004. In July he won a hard-fought primary campaign against attorney Curtis Bruehl, capturing 2,109 votes to Bruehl's 724 votes.

Terrill faces Moore Democrat Troy Green in the fall November election.

M. Scott Carter 366-3545 scarter@normantranscript.com

        

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