The Enid News and Eagle, Enid, OK

Local news

August 11, 2010

GOP insurance commissioner candidate says he’s ‘squeaky clean’ as allegations resurface

ENID — John Crawford, facing an Aug. 24 runoff against John Doak for the Republican nomination for state insurance commissioner, publicly has declared himself “squeaky clean.”

But allegations made against him during his first term as insurance commissioner in the late 1990s continue to surface.

In 1998 the Daily Oklahoman reported Crawford was the target of an FBI investigation into alleged fraud and nepotism regarding computer contracts he awarded on behalf of Enid-based insurance company American Standard Life & Accident Co. The FBI probe focused on allegations Crawford’s son, the late John P. Crawford III, profited from the contract.

American Standard Life was declared insolvent and placed in receivership in 1991. When Crawford became insurance commissioner in 1995, he became responsible for either the rehabilitation or dissolution of the Enid insurance company. The liquidation of American Standard was ordered in October 1997 in Oklahoma County District Court.

In 1995, while under Crawford’s control, American Standard allegedly entered into a $60,000 contract with a Nevada firm, Advanced Computer Technology Inc., a company whose registered agent was “John P. Crawford,” the Oklahoman reported.

Elsie Echevarria subsequently said she purchased the company from Crawford, according to the Oklahoman. She allegedly then formed Actuarial Software Inc., just days before signing a $150,000 computer contract for American Standard Life. Actuarial Software Inc. was suspended in 1997 by the state of Nevada. A 1997 lawsuit filed in the case by Nathan Nicholas, son of American Standard Life owner David Nicholas, alleged Echevarria and the younger Crawford were close friends.

The Oklahoman reported sources close to the investigation reported the FBI had banking and other records showing payments from the receivership to Echevarria, and from Echevarria to Crawford’s son.

David Nicholas said his company did not need a new computer system.

“He (Crawford) is putting in the paper that he is squeaky clean,” Nicholas said. “He is anything but that.”

Crawford and his then-chief of staff, Alan Aikins, received letters from the U.S. Justice Department  they were targets of a federal grand jury investigation in Oklahoma City, the Oklahoman reported. John Crawford III received a similar letter, but later committed suicide.

In July 1997 Crawford successfully blocked an audit into questionable expenditures concerning the American Standard Life receivership, the Oklahoma reported.

With the FBI probe ongoing, the elder Crawford lost his 1998 re-election bid to Carroll Fisher. The FBI probe continued into 1999, but did not lead to any criminal charges against Crawford.

“Why do we want to talk about this?” Crawford said. “That is something that happened 12 or 13 years ago. This is nothing but a political ploy. We need to talk about the issues.

“Why are you bringing this up? I am squeaky clean. No charges were ever filed. I did everything according to law. I follow the law and that is all there is to it.”

Doak, who has more than 20 years experience in the insurance industry, said Crawford’s past would prove “negative for the Republican ticket,” should Crawford win the nomination and face Democratic incumbent Kim Holland in November’s general election.

“He is responsible for his past actions and his past records,” Doak said. “My primary concern is I am the most qualified and experienced candidate and the most relevant. It bothers me when someone has to run a campaign on the basis of ‘I’m squeaky clean.’ Why are they having to tell you they are squeaky clean?”

In the July 27 primary Crawford was the top vote getter with 42 percent of the vote, while Doak received 39 percent.

“It is disappointing and discouraging that Crawford thinks Oklahomans are not going to remember the allegations and issues he had,” said Doak.

Enid attorney Stephen Jones, in a letter to the News & Eagle urging the newspaper to endorse Doak, pointed out the past allegations against Crawford.

“I just felt that in view of his record in the past, in part his actions in respect to an Enid company’s receivership, that needed to be brought to public attention,” Jones said.

“As a result of Crawford’s son’s death and Crawford’s defeat in the November 1998 election, the investigation did not result in an indictment,” Jones’s letter said, in part, “but he was not cleared either.”

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