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Thu, Dec 04 2008 

Published September 17, 2008 02:27 pm -

Terrill reponds to trustee's motion


By M. Scott Carter
The Moore American

OKLAHOMA CITY

State Representative Randy Terrill and his wife Angela have asked a federal judge to deny a motion by the trustee in their 2005 bankruptcy to turn over more than $11,000.

The Terrills’ request — filed last Friday in the Western Oklahoma District Federal Bankruptcy Court — asked federal judge T.M. Weaver to “deny the motion to turn over property as it applies to the turnover of the alleged $11,301 requested by the trustee and if needed set this matter for hearing.”

The couple’s attorney — Oklahoma City attorney Jeffrey West — filed the motion the same day an extension for more time granted by Weaver expired.

In his 16-page motion, West noted that “it is clear Mr. Terrill did contribute (without any intent or expectation of repayment) $11,301 to his own campaign for goods or services from June 2003 to October 2004.

But Terrill, West argued, “has never received any money for repayment of any loan.”

“Mr. Terrill contributed these funds one year prior to filing bankruptcy when he was solvent and not bankrupt,” West wrote. “All contributions were made to pay the ordinary and routine expenditures of the campaign. In addition, neither a promissory note or repayment schedule was contemplated nor was an expectation of repayment ever intended by Mr. Terrill.”

The Terrills’ bankruptcy was reopened Aug. 7 by Weaver — the same federal bankruptcy judge who originally ordered Terrill’s discharge — after stories published in an Oklahoma City Hispanic newspaper alleged irregularities between Terrill’s bankruptcy petition and his state campaign filings.

Those campaign filings are at the center of the dispute between Terrill and Edmond attorney John D. Mashburn, the creditor’s trustee for the case.

In July, Mashburn asked the bankruptcy court to reopen the case, saying state campaign reports showed Terrill had received funds from his campaign. Those funds, Mashburn said, could be considered an asset in his bankruptcy.

However Terrill said those funds were not “loans in the original sense” and in their motion Friday, the Terrills claimed “there is a distinction between Randy Terrill the person who filed for bankruptcy and the separate legal entity known as Randal Terrill for State Representative.”

“Mr. Terrill was the only one paying the campaign bills during these reporting times. But the money he contributed to his campaign was no more his money than any other contributor.”

Additionally, the Terrills’ attorney said some of Terrill’s 2004 campaign filings contained “scrivener errors” that, according to state law, “can and will be amended.”

“In fact,” West wrote, “other than the scrivener errors … the ‘loans’ do not exist and only the reporting errors make it appear that ‘loans’ did exist.”

“At no time was a promissory note or repayment schedule ever completed to indicate (that) Mr. Terrill had actually loaned the campaign money and at no time did Mr. Terrill have the intent or expectation of a loan repayment by the campaign.”

West said Terrill made an error in reporting the funds and claimed Terrill was following the advice of officials with the Ethics Commission.



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