Man says he rejected offer to lie at Carroll Fisher's preliminary hearing

OKLAHOMA CITY (AP) A Chicago man testified Wednesday that he rejected an offer to lie at former state Insurance Commissioner Carroll Fisher's preliminary hearing. <br/><br/>Joseph Grosz, 59, said an

Thursday, April 28th 2005, 6:32 am

By: News On 6

OKLAHOMA CITY (AP) A Chicago man testified Wednesday that he rejected an offer to lie at former state Insurance Commissioner Carroll Fisher's preliminary hearing.

Joseph Grosz, 59, said an associate of Texas businessman Gene E. Phillips asked him to lie Tuesday night. Grosz also said Phillips offered a settlement of lawsuits Phillips had filed against him.

``I said I've already been in prison once. I will not jeopardize myself again by giving false statements,'' Grosz said.

Fisher has denied allegations that he accepted bribes from Phillips, his family and business associates in exchange for preferential treatment. He faces five felony charges.

Phillips, a wealthy Dallas real estate investor, hasn't been charged.

Grosz was convicted in federal court in 1994 of conspiring to commit a $1.6 million bank fraud. He worked for Phillips before and after he was in prison, and was fired two years ago.

Grosz said his conviction was related ``on a tangent basis'' to his work for Phillips.

Phillips' attorney, Stephen Jones of Enid, said Grosz is lying.

``Almost every word is a lie,'' Jones said afterward.

Jones alleged that Grosz and a business partner, Carey Portman, have been using the Oklahoma case to try to shake Phillips down for money. He also said Portman is facing a federal bank fraud indictment in Illinois.

Prosecutors said they will investigate Grosz's claim to determine if there was witness tampering.

Assistant Attorney General Joel-lyn McCormick said Grosz was visited by the Phillips associate Tuesday night at an Oklahoma City hotel.

She would not say how much money the witness was allegedly offered, but said, ``They weren't going to trade marbles.''

Prosecutors claim the bribes to Fisher included a $25,000 check from Davister Corp., about $20,000 in furniture from New Starr Corp. and $25,000 in campaign contributions identified as from employees of Basic Capital Management.

Another bribe involved a $122,250 real estate commission paid to Fisher's wife for selling a Tulsa apartment complex for Regis Realty Inc., prosecutors allege.

Grosz said Phillips oversees 1,000 employees, more than 200 businesses and $2.5 billion in assets.

He described officers of some companies as being in name only. ``They did their assignments as given to them by Mr. Phillips,'' Grosz testified.

Prosecutors also put on evidence Wednesday that Fisher did not report the $25,000 Davister check and $64,883 from the sale of his private insurance business as income on his 1999 state tax return.

Fisher should have paid $4,688 more in state taxes and $38,296 more in federal taxes, said accountant David Hanigar, who works for the state auditor.

Fisher resigned Sept. 24 after being impeached in the state House and before an ouster action in the state Senate.

He now works in California.