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Published July 22, 2008 11:29 pm - OKLAHOMA CITY -- A Moore lawmaker's 2005 bankruptcy petition is being re-examined by an official assigned to the case, after published reports alleged irregularities between the bankruptcy petition and the lawmaker's state campaign filings.

Terrill bankruptcy case reviewed
Trustee questions state campaign reports

By M. Scott Carter

OKLAHOMA CITY -- A Moore lawmaker's 2005 bankruptcy petition is being re-examined by an official assigned to the case, after published reports alleged irregularities between the bankruptcy petition and the lawmaker's state campaign filings.

John D. Mashburn, the original creditor's trustee for state Rep. Randy Terrill and his wife, Angela, filed a motion in Federal Bankruptcy Court last Friday seeking to re-open Rep. Terrill's bankruptcy petition.

Mashburn said state campaign reports show Terrill had received funds from his campaign, which could be considered an asset.

Those funds were not listed on the Terrills' bankruptcy filing.

Mashburn said he didn't "have a political bone to pick" with Terrill and told the Tulsa World "he did not know Terrill was a lawmaker when someone called the attorney and told him Terrill possibly had more assets."

Terrill and his wife filed their Chapter 7 bankruptcy petition Oct. 14, 2005, less than a year after he was elected to the Oklahoma House of Representatives. Terrill's bankruptcy was discharged March 2, 2006.

Last Friday, Mashburn listed eight reasons for his request.

"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. "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."

Monday, Terrill downplayed the story in a statement published on the web-based McCarville Report.

"I don't mind the trustee taking a second look to make sure everything was done properly," Terrill said. "It's unfortunate ... that some ... are trying to damage me politically because of a family bankruptcy filing; I find it despicable that someone would exploit my wife's financial difficulties during college."

While Terrill claims the bankruptcy petition was due to his wife's "financial difficulties in college," court documents show the couple filed the Chapter 7 petition jointly, with Terrill listed as the debtor and his wife listed as the joint debtor.

Prior to his successful race for the Oklahoma House in 2004, Terrill worked for State Labor Commissioner Brenda Reneau and before that for former House Minority Leader Larry Ferguson.

However, Terrill's 2005 bankruptcy petition lists his occupation a "consultant" for the state, and not as a member of the state Legislature. That same listing also shows Terrill claimed payroll deductions of $320 for state retirement, $6.28 for disability insurance, $8.10 for state insurance, and $11.74 for dental insurance.

Those deductions, a state official said, are "not normally paid" to consultants.

"You have to be a state employee to get state insurance," said Department of Central Services spokesman Gerry Smedley.



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