Oilton Mayor Arrested In Kickback, Embezzlement Investigation

The Oklahoma State Bureau of Investigation arrested the mayor of Oilton following a months' long investigation of alleged embezzlement. 

The OSBI says it began investigating allegations that Patrick Leon Kennedy, 62, embezzled money last summer. Kennedy is the town's mayor and also supervisor over the Oilton Public Works Authority.

Last July, the Creek County District Attorney requested OSBI investigate the allegations against Kennedy. After an interview with Kennedy at his Oilton home, the OSBI agent arrested Kennedy.

OSBI says it learned during its investigation that Kennedy needed to spend $8,000 left of a loan from the Oklahoma Water Resources Authority or lose the money. Kennedy then met with two OPWA workers and proposed he would approve them to receive contractor payments in exchange for splitting the payments with him, OSBI says.

The workers were to inspect repairs to a sewer line and install an air conditioner in the city sewer plant. 

When the work was completed in October 2016, the two men prepared invoices for their work, which was work they performed while being paid by OPWA for regular jobs, OSBI says.

Both men received payments from OPWA for that extra work, and after they were paid, Kennedy met with the two men at the OPWA office. The men split the cash with Kennedy in exchange for his approving them to do the work and also for approval of the invoices they submitted. OSBI says Kennedy received more than $5,000 in cash. 

The agent arrested him on a warrant charging him with two counts of making/receiving a kickback and one count of embezzlement.

The OSBI booked Kennedy into the Creek County jail on a $30,000 bond.

The two workers involved are witnesses in the case, OSBI says. 

They will not be charged since Kennedy coerced them to participate based on his control over their jobs.