Attorney General Gentner Drummond threatened legal action Wednesday over a proposed state investment contract tied to allies of Governor Kevin Stitt, accusing state officials of steering public retirement funds toward a politically connected startup firm that allegedly failed to meet qualification requirements.
In a sharply worded letter to State Treasurer Todd Russ, Drummond said his office would refuse to approve a contract involving 311 Capital Management LLC and would immediately file suit if the agreement moves forward anyway.
The dispute escalates another major internal conflict within Oklahoma Republican politics as Drummond campaigns for governor in 2026 while Russ faces a high-profile reelection challenge from State Auditor Cindy Byrd.
At issue is a Feb. 17 vote by the Invest in Oklahoma Board to select 311 Capital Management for participation in the state’s Invest in Oklahoma program, which directs portions of public pension and endowment assets into Oklahoma-focused investment funds.
Drummond alleged the firm lacked the experience and financial qualifications required under the state’s procurement standards.
“You cannot hand over public retirement funds to a company that has never invested a single dollar and has no track record,” Drummond said in a statement.
According to Drummond’s office, 311 Capital Management was only months old when the board approved the contract and did not have assets under management or an established investment history.
The attorney general also alleged the procurement process favored politically connected individuals associated with the Stitt administration.
Drummond pointed to what he described as overlapping business relationships involving 311 Capital Management, Citizen Capital LLC and former Stitt chief of staff Stephen Bond Payne. He further alleged qualification requirements were modified shortly before bids closed in a manner that benefited the company.
“This was not a competitive procurement,” Drummond said. “It was a process designed to look fair while delivering a predetermined result to a politically connected firm.”
Drummond additionally alleged a lobbyist connected to Citizen Capital communicated with the Treasurer’s Office during the procurement process, creating what he described as an unfair advantage.
Russ responded Wednesday by accusing Drummond of bypassing his role as legal counsel to create political controversy.
“If AG Drummond had concerns about the legality of the 311 Capital Management selection, he could have raised them at any time directly with the Treasurer’s Office and his client, the Invest in Oklahoma Board,” Russ said in a statement.
“Instead, he chose to bypass the ordinary attorney-client privilege and air a grievance publicly.”
Russ also accused Drummond of using the dispute to generate attention during the 2026 election cycle.
“The State would be better served by an Attorney General who prioritizes providing independent, competent legal counsel over creating unnecessary political drama to generate campaign headlines,” Russ said.
The clash marks the latest public confrontation between Drummond and officials aligned with Stitt, whose administration has repeatedly sparred with the attorney general over ethics disputes, agency oversight and executive authority.
The controversy also injects another politically volatile issue into an already crowded Republican primary landscape where candidates are increasingly drawing contrasts over ethics, transparency and relationships with the governor’s office.
According to Drummond’s office, no public funds have yet been distributed under the proposed contract.
Drummond is demanding the contract award be rescinded and said he will seek a court order blocking the agreement if the state proceeds.
