State's multicounty grand jury takes up Swadley's scandal

Oklahoma's new multicounty grand jury has begun looking into the state's dealings with Swadley's Bar-B-Q.

Testifying Thursday was Mike Jackson, the executive director of the Legislative Office of Fiscal Transparency.

The watchdog office created by top lawmakers was the first to raise red flags about the deals with Swadley's to operate restaurants in six state parks. The executive director told a House Special Investigative Committee last year that the Oklahoma Tourism and Recreation Department lost $12.4 million in taxpayer funds because of insufficient oversight.

Grand jurors hear testimony in secret behind closed doors at the attorney general's office. Jackson was seen leaving the grand jury area Thursday morning with a large folder. The grand jury's chief adviser, Gayland Gieger, walked him to the door and thanked him.

The Oklahoman confirmed from sources his appearance was connected to Swadley's. He declined comment.

Grand jurors also heard Thursday morning from agents with the Oklahoma State Bureau of Investigation.

More: Swadley's deal cost Oklahoma taxpayers $12.4 million, state watchdog says

Testimony the first confirmed in Swadley's case since Attorney General Gentner Drummond took over investigation

The involvement of the grand jury in the Swadley's scandal has been expected ever since the state's new attorney general, Gentner Drummond, announced in January he was taking over control of the investigation.

Still, the first confirmed grand jury testimony about Swadley's is a significant milestone. Any decision by the grand jury on criminal charges is likely months away.

Gov. Kevin Stitt, a Republican, faced criticism last year during his successful reelection bid because of the deals. "We can't even trust Stitt with barbecue," his Democratic opponent, Joy Hofmeister, regularly said from the campaign trail.

The Oklahoma Tourism and Recreation Department in April 2022 canceled its agreement with Swadley's Bar-B-Q due to "suspected fraudulent activity and questionable business practices."

Days later, the leader of the Tourism and Recreation Department resigned, and the state sued Swadley's Foggy Bottom Kitchen for breach of contract.

Swadley's countersued, saying the "Tourism Department got exactly what it wanted with rapid construction of first-class restaurants during a pandemic."

The lawsuit is still pending in Oklahoma County District Court.

Also Thursday, grand jurors returned two indictments.

An Ardmore attorney, Jason David May, 39, was charged in one indictment with five felony counts of filing false court documents.

A murderer and two other convicts were accused in the other indictment of gang-related attacks in prison in 2021.

Grand jurors next meet Sept. 19-21.

This article originally appeared on Oklahoman: Oklahoma grand jury hears first testimony in Swadley's scandal