TPM Muckraker

Posts on “Alaska: July 2008” in July 2008

September Trial Date Set For Sen. Ted Stevens

A federal judge has granted Sen. Ted Stevens' request for a speedy trial -- calling for jury selection to begin just weeks before the elections this fall.

Stevens (R-AK) is set for trial Sept. 24 on seven counts of making false statements on his Senate financial disclosure forms, court documents show.

Accused of taking more than $250,000 in undisclosed gifts from the CEO of an Alaska-based oil services firm, Stevens said he wants to "clear his name" before voters decide whether to give the 84-year-old lawmaker a seventh term.

The schedule outlined allows less than two months for all pretrial preparations, a remarkably quick turnaround for a federal case.

For now, the case is scheduled for trial before Judge Emmet G. Sullivan in Washington, DC. The judge has not yet ruled on Stevens' attorney's request that the case be moved to federal district court in Alaska, where Stevens is a popular political patriarch.

The Ted Stevens Story On Today's TPMtv

One year after the feds searched his Alaska home, and one day after a grand jury handed up a seven-count indictment, Sen. Ted Stevens is the subject of today's TMPtv. Muckraker reporter Kate Klonick recaps Ted's troubles and tells us what that means for the GOP in Alaska and nationwide.



Sen. Ted Stevens To Face Arraignment In Federal Court Tomorrow

Sen. Ted Stevens (R-AK) is due in federal court in Washington tomorrow for arraignment on seven counts of failing to disclose gifts from an Alaska oil firm.

The 84-year-old senator is scheduled to appear at 1 p.m. before U.S. District Judge Emmet G. Sullivan, who was appointed by President Clinton in 1994.

Stevens was ordered to contact pretrial services for a preliminary interview before the arraignment.

The federal prosecutors expected to handle the case are Joseph W. Bottini and James A. Goeke, court records show.

The Ted Stevens' Road to Ruin

We've had a lot of coverage today at TPMmuckraker on the freshly indicted Sen. Ted Stevens (R), but we've actually been following Uncle Ted and his son, Ben, here at TPMm for more than a year.

So for the benefit of our readers we thought we'd wrap it up into one neat little package so you can see how an 84 year-old U.S. Senator can go from free gas grills to federal indictment.

Ladies and gentleman, we present: The Ted Stevens' Road to Ruin, the ultimate in Ted Stevens' timelines.




Feds Allege Stevens Did Foreign Favors For VECO, But Provide Few Details

So what did VECO get in return?

Federal prosecutors unveiled a narrowly focused indictment today for Sen. Ted Stevens (R-AK), limiting the criminal charges to the senator's disclosure forms and what the Alaska-based energy services firm did for the lawmaker.

But there was, briefly, a small set of allegations about the longtime senator did for the company.

Among them, federal prosecutors say, Stevens provided: "funding requests and other assistance with certain international VECO projects and partnerships, including those in Pakistan and Russia."

We've heard allegations of favors related to Pakistan before.

In the late 1990s, VECO built a $70 million pipeline for Pakistan and the military dictatorship running the country was slow to pay its bill. That is until Pakistan needed help from Congress on a trade issue, and Stevens was positioned to block the legislation at issue. Pakistan paid its tab soon after concluding it might help them out on Capitol Hill, according to the Los Angeles Times.

As for Russia, it's unclear exactly what the prosecutors are referring to. VECO did a lot of business in Russia, often subcontracting work for large multinational oil companies. Also in 2005, VECO hired Steven's son, Ben Stevens, to lobby the World Bank to get money the company needed for a spill cleanup job in Russia.

It's hard to know precisely. And that's probably one reason the feds limited the prosecution of Stevens to false statements made on his financial disclosure forms. Proving quid pro quo in court is exceptionally hard.

Stevens Declares Innocence in Public Statement

Sen. Ted Stevens (R-AK) who was indicted today on seven counts of false statements, has released a statement through his Senate office:

I have proudly served this nation and Alaska for over 50 years. My public service began when I served in World War II. It saddens me to learn that these charges have been brought against me. I have never knowingly submitted a false disclosure form required by law as a U.S. Senator. In accordance with Senate Republican Conference rules, I have temporarily relinquished my vice-chairmanship and ranking positions until I am absolved of these charges. The impact of these charges on my family disturbs me greatly. I am innocent of these charges and intend to prove that.

Stevens Resigns from Two Committees

From Roll Call:

Sen. Ted Stevens (R-Alaska), who has been indicted on seven counts of making false statements on his financial disclosure forms, has stepped down from his post atop two committees, according to a senior GOP aide.

Republicans may vote as early as Wednesday afternoon to select replacements.

Consistent with GOP bylaws that require Members who are under felony indictment to relinquish their ranking posts on committees, Stevens, the longest-serving Republican Senator, has officially stepped down as ranking member of both the Senate Commerce, Science and Transportation Committee and the ranking member of the Senate Appropriations Subcommittee on Defense.

Financial Disclosure Forms at Center of Stevens' False Statements

The recent indictment of Sen. Ted Stevens (R-AK) is up in TPMmuckraker's document collection, but here's a quick and dirty summary of the seven counts of false statements which are based on his personal financial disclosure forms from 1999 to 2006.

According to the indictment, Stevens concealed "things of value," estimated at around $250,000, from his publicly filed personal financial disclosure forms over the past seven years. It is this concealment, and not the legality of accepting those "things of value," that is at issue.

We've reported extensively on those gifts from VECO and VECO's former CEO Bill Allen which are the primary exchanges named in the indictment.

While Allen pleaded guilty to bribery charges over these gifts in 2007, it's important to note that no bribery charges are being filed against Stevens.

For the DOJ comments on the indictment, check out our video of the press conference.

Sen. Ted Stevens Took Undisclosed Gifts Worth $250K, Including Viking Gas Grill

Sen. Ted Stevens (R-AK) was indicted today for accepting more than $250,000 in undisclosed renovations and repairs for his home in Girwood, Alaska, according to Stevens' indictment.

Stevens' friend William Allen, the head of VECO company, was providing most of the labor and some supplies for the projects, but never charged Stevens for the work, according to the indictment today.

In 2000, Stevens and Allen began discussing renovations for his home, putting together a plan that would eventually include a full basement, first-floor addition with multiple bedrooms and a bathroom, the indictment said.

It was a massive undertaking. Workers took the small home and jacked it up on stilts, then built a new first floor underneath with two bedrooms and a bathroom, the indictment said.

Then workers added a garage with a workshop and a second-story wraparound deck. VECO employees and contractors also installed electrical, plumbing, framing, heating, and flooring materials, the indictment said.

In 2001, Allen gave Stevens some furniture, a new Viking gas grill and a new tool shed full of tools, according to the indictment.

In 2002, VECO continued work on the outside of the house, installing a first-floor wraparound deck, a plastic roof between the first- and second-floor decks, and a lighting system worth a total of about $55,000, the indictment said.

In 2004, VECO installed some kitchen appliances in the house, the indictment said.

In 2005, the company did some repairs to the roof and gutters, the indictment said.

In 2006, Stevens called Allen and asked him to repair his boiler system. Allen instructed the contractor to divide the bill into two parts, supplies and labor. Allen told the contractor to send the bill for supplies to Stevens and the labor to Allen, the indictment said.

Stevens knew this, and at least once asked Allen to send him the invoice for the labor, but Allen never did and Stevens never reimbursed him, the indictment said.

The home renovations were not the first time Stevens had accepted favors from Allen.

Back in 1999, Stevens mentioned to Allen that he wanted to get a new car for his daughter. That led to a deal in which Allen gave Stevens a new 1999 Land Rover Discovery, worth $44,000. In exchange, Stevens gave Allen a 1964½ Ford Mustang and $5,000. Prosecutors say the Mustang was worth less than $20,000.

In September 2000, Stephens wrote Allen an email about the work:

"we've never worked with a man so easy to get along with as [a VECO employee], Plus, everyone who's seen the place wants to know who has done the things he's done. . . . You and [PERSON A] have been the spark plugs and we are really pleased with all you have done. hope to see you and the chalet soon. best teds."


BREAKING: U.S. Sen. Ted Stevens Indicted in Federal Court

From Reuters:

Sen. Ted Stevens from Alaska, the longest serving U.S. Republican senator ever, was indicted on seven counts related to his holding of public office, a federal law enforcement official said Tuesday.

Late update: It's worth noting that this comes a few days before the one year anniversary of the date federal agents raided Stevens' Girdwood home.

Ted Stevens, 84, has been a frequent character on TPMmuckraker. For a good profile on the indicted Senator, see here.

No one answered at Stevens' Senate Office in D.C. and the answering machine recording said that the office was closed. In a call to his Anchorage campaign office, the staffer who answered responded, "What?" when asked for a comment on the indictment, followed by a long silence. The staffer would not give further comment on whether or not the office knew that the indictment was handed up today.

Late late update: From McClatchy:
The Justice Department will be making a statement at 1:20 to announce the indictment.

The Anchorage Daily News reports that the indictment comes from a federal grand jury in Washington, D.C.

Late late late update: The AP is reporting the indictments are seven counts of false statements.

Our calls to Brendan Sullivan, Steven's attorney, were not immediately returned.

We have a copy of the Stevens indictment titled, United States of America v. Theodore F. Stevens, it can be viewed here.

The seven counts of false statements appear to be referencing seven years of false statements made on his financial disclosure forms relating to gifts he received from former VECO CEO Bill Allen for the renovations on his home in Girdwood, Alaska, among others.

Allen pleaded guilty to giving more than $400,000 worth of "illegal benefits" to politicians and their families in late 2007.

The DOJ Presser just started.

"As a member of the US Senate, Sen. Ted Stevens was required to file financial disclosure forms. . . to monitor or deter conflicts of interest within the US Senate and its membership."


Between 1999-2006 he accepted gifts from VECO, include substantial amounts of material and labor in his private residence. These allegations include addition of new first floor, new bedrooms and bathrooms.

The total amount of gifts is valued at over $250,000.

In a Q&A, it was revealed that Stevens will be turning himself in and will not be arrested. Stevens' attorney received a call earlier today informing him of his client's indictments.

Filing false financial disclosure statement can result in civil and criminal penalties, including up to 5 years in prison.

The DOJ is not alleging bribery or any kind of quid pro quo, and mentioned that the investigation is continuing.

Don Young is Like a "Rat Head in a Coke Bottle"

We reported earlier that Rep. Don Young (R-AK) falsely claimed that he was named "Hero of the Taxpayer" by the non-partisan reform group, Taxpayers for Commonsense.

But Taxpayers for Commonsense denies even having such an award, yet alone awarding it to Young, a long-time target of the political watchdog.

As it turns out, Young was named "Hero of the Taxpayer", by the conservative group Americans for Tax Reform, founded and run by Republican lobbyist Grover Norquist.

But now even Norquist is throwing Young under the bus, issuing a press release late this afternoon slamming the Congressman and claiming he "betrays taxpayers."

"Republicans that vote for tax increases are like rat heads in Coke bottles,"Norquist said. "They ruin the Republican brand for all members. It should be readily apparent to a former 'Hero of the Taxpayer Award' recipient that you don't vote for tax hikes."

According to the press release, Young voted for H.R. 2642, the Blue Dog Tax Hike-- a move that makes him ineligible to receive ATR's "Hero of the Taxpayer Award" in 2008.

We called Young's campaign press contact for comment, Mike Anderson, who told us that the bill was a lot more complicated than it looked.

"If you vote for the bill you vote for veterans and Alaska has 75,000 veterans, but you're also colored as pro-increasing taxes, but if he voted against the bill, he's anti-raising taxes but anti-veteran," Anderson told TPMmuckraker. "Young said that he had to take care of the veterans. Veterans have always been very important."

Don Young's Campaign Apologizes for Ad Mistake, Will Correct

As we earlier reported, Rep. Don Young (R-AK) has been running a radio ad laying claim to a fictitious award from Taxpayers for Commonsense.

In a statement released this morning, the Young camp responded with an apology in this brief press release:

In recent radio ads, we mistakenly credited the wrong organization with giving Congressman Young the Hero of the Taxpayer Award. We apologize for any inconvenience this may have caused. Please be assured that the ads are being corrected to reflect that Americans for Tax Reform awarded the Congressman with this award for his commitment to the American taxpayer and his support of legislation to decrease taxes.

The troubling text of the radio ad is transcribed below:

Now that Parnell is in the "Club for No Growth" they're running false ads accusing Don Young of pushing higher taxes on Alaskans when the opposite is true. Don Young was even presented the 'Hero of the Taxpayer Award' by Taxpayers for Common Sense. Sean Parnell ought to be ashamed, Don Young ought to be re-elected.

In our humble opinion, Don Young ought to get a fact-checker.

Don Young Gives Self Fictitious "Hero of the Taxpayer" Award from Watchdog Group

Rep. Don Young (R-AK) has been called many things in his day, but we're pretty sure a "Hero of the Taxpayer" isn't one of them.

But according to a new radio campaign ad being run by Young, he was given just such a title in an award given to him by the watchdog group Taxpayers for Common Sense.

This seemed a little odd to us, as we're pretty familiar with Taxpayers for Common Sense, and pretty sure Don Young is probably the last person to receive such a dubious honor.

And sure enough according to the group named in the ad, Young's claim is patently false.

"I wish people would let us know when we give them awards," Steve Ellis, Vice President for Taxpayers for Common Sense told TPMmuckraker. "We don't even have a 'Hero of the Taxpayer' award to start out. But we did scrub through our records and we found out that we had given him an award-- the 'Golden Fleece' award in 2003 for the Bridge to Nowhere."

According to Ellis, "The Golden Fleece Award" is given for "extreme cases of wasteful government spending."

But as it turns out, Young's claim isn't completely without merit. He was in fact named a "Hero of the Taxpayer," a few weeks ago, but not by Taxpayer for Commonsense. Americans for Tax Reform, an interest group founded by Republican lobbyist Grover Norquist, honored Young with that distinction in late June.

We've captured the radio audio for the ad. Note that Don Young "approves this message."

The relevant portion starts at about 33 seconds. The transcript is here:

Now that Parnell is in the "Club for No Growth" they're running false ads accusing Don Young of pushing higher taxes on Alaskans when the opposite is true. Don Young was even presented the 'Hero of the Taxpayer Award' by Taxpayers for Common Sense. Sean Parnell ought to be ashamed, Don Young ought to be re-elected.

We'll call the Young camp as soon as it's morning in Alaska.

Late update: The Young campaign released a statement that apologized for the mix-up in the attribution of the award and said they would duly revise it.

Indicted AK Senator Steps Down From Leadership Post

The cookie continues to crumble for Alaska State Sen. John Cowdery (R), who was indicted on two federal charges of bribery and conspiracy earlier this month.

Cowdery, who is set to be arraigned on August 11, stepped down from his post as chairman of the Legislative Council on Monday.

From the Anchorage Daily News:

Calls for him to resign rang out shortly after the indictment was made public, specifically from Republican Minority Leader Gene Therriault and [Gov. Sarah] Palin.

Therriault, who leads a five-person minority caucus that does not include Cowdery, has long called for Cowdery's resignation since former Veco executives said during the trials of other lawmakers that Cowdery was part of their inner circle.

Cowdery has not resigned, even though frequent health problems have kept him away from Juneau.

Cowdery told [Senate President Lyda] Green in a letter that he was not well enough to continue with his responsibilities as the council chairman.

"The day-to-day operations of the committee and its oversight is a time intensive job that demands the full attention of the chairman to work smoothly and efficiently," Cowdery wrote to Green on Monday. "Due to my continuing health issues I feel I cannot fulfill the duties required of me to fully accomplish the goals of the Legislative Council."

Ben and Ted's Excellent Investigations

There are only two elected officials left standing in the musical chairs among those publicly tied to the state's massive political corruption scandal: current U.S. Sen. Ted Stevens (R) and his son, former State Sen. Ben Stevens (R).

The indictment of Alaska State Sen. John Cowdery (R) last Thursday, means all of the state legislators whose offices were raided in August of 2006 (except Stevens) -- Cowdery, Vic Kohring (R), Bruce Weyhrauch (R), Pete Kott (R) and Don Olson (D) -- are now either cooperating with federal investigations, convicted or indicted. The FBI warrant allowing the search named former VECO executives Bill Allen and Rick Smith.

Allen and Smith were indicted and pleaded guilty. Their testimony at the trials of Kott, Kohring and Weyhrauch helped convict the three indicted state representatives. While Kott and Weyhrauch's convictions are pending appeal, Kohring recently began his 3.5 year prison sentence. Cowdery's recent indictment on two counts of bribery and conspiracy named an anonymous "Senator A" who was later revealed by Cowdery's lawyer as Olson. Olson followed with a statement that he has been cooperating with the U.S. attorney's office for over a year, and is unlikely to be indicted.

That leaves just the Stevens boys without a fall out. Both are under federal investigation for their ties to VECO, but the investigation of Uncle Ted also stretches to his suspicious pet projects.

As one juror at Kohring's trial observed after his conviction, "they didn't get the sharks. They got the minnow." Cowdery appears to be the last of the "minnows," but does that mean federal prosecutors will be going after bigger game in the near future?

And don't forget the other big fish: Seemingly more tenuous, but still present is the ongoing federal investigation into U.S. Rep. Don Young (R), for his own ties to VECO.

Indicted AK State Sen. Cowdery Proclaims His Innocence

Alaska State Sen. John Cowdery (R) was "holed-up" in the Prospector Hotel in Juneau yesterday, when he was indicted on two charges of bribery and corruption. He flew to Anchorage, where the Federal Court is located, arriving on Thursday night.

From KTUU in Anchorage:

He was asked at the ariport [sic] if he plans to fight the charges.

"I'm going to win it," Cowdery said. "I'm not guilty."

Cowdery said he had nothing more to say and that his attorney has already said it.

Cowdery's attorney released this statement:

"We believe, along with many others who are familiar with Sen. Cowdery's long and exemplary service to the people of this state, that the government has done a substantial disservice to Sen. Cowdery in charging him. This will be exposed for the mistake it is."

Cowdery is expected to be arraigned today at 5:30 ET.

Olson Has Been Cooperating with FBI For a Year

The mysterious Alaskan "State Senator A" -- a.k.a. Sen. Don Olson (D) -- has been cooperating with federal prosecutors for "about a year" on their investigation of the massive public corruption scandal involving half a dozen state senators -- including former State Sen. Ben Stevens-- bribery by local oil and gas company VECO.

According to the Anchorage Daily News, Olson testified to a federal grand jury last month and has been "interviewed maybe a half dozen times about the events" covered in the recent indictment of State Sen. John Cowdery (R). Cowdery is charged with two counts of bribery and conspiracy.

Though Olson was cited in the Cowdery indictment as being the target of a bribe, it is unlikely that he's about to be charged with anything:

Olson has no assurance that he won't be prosecuted, but [Olson's attorney Paul] Stockler said it appears highly unlikely that he will be.

"I don't believe Donny Olson did anything wrong," Stockler said. Olson never received the $25,000.

State Sen. Don Olson Is Mystery "Senator A"

From the Anchorage Daily News:

The indictment identifies the senator Cowdery was trying to influence only as "state Senator A," but [Cowdery's attorney Kevin] Fitzgerald said that person is Donny Olson, D-Nome, who at the time was running for lieutenant governor.

The document describes a series of phone calls as well as a June 25, 2006, breakfast meeting. Olson, Cowdery and Veco chief executive Bill Allen met at the Sunshine Grill in Anchorage, Olson's lawyer, Paul Stockler of Anchorage, said this morning.

[Late Update]: Gov. Sarah Palin (R) has called for Cowdery to resign from the Alaska Senate.

Another State Legislator Indicted in Alaska Corruption Probe

Alaska State Sen. John Cowdery (R) was indicted today on two counts of conspiracy and bribery. Cowdery is the latest Alaskan politician to fall in the wide-reaching public corruption scandal.

Former VECO Corp. CEO Rick Smith testified in September of last year that he had bribed Cowdery, and four other State Senators, including Stevens, for favorable legislation on an Alaska gas pipeline.

Cowdery was a former co-worker and friend of former State Senator Ben Stevens, who has been the subject of an ongoing investigation by the FBI.

Cowdery's indictment can be found here.

Don Young Turns to Lobbyist "Wolfpack" for Financial Aid

Rep. Don Young (R-AK) and his staff were quick to issue a denial last month of anything more than "friendly" ties between the Alaskan Representative and the group of nine federal lobbyists who, according to the "Intern Survival Guide," were given preferential treatment when calling the office. But now his fiscal relationship to the "A Team," as they were called, has become less tenuous.

Mike Anderson, Young's Chief of Staff, solicited campaign donations in June 2007 from 27 individuals -- 23 of whom were lobbyists -- and which included all of the "A Team," the Anchorage Daily News reported. Raising the specter of a Young defeat, Anderson wrote: "[Y]ou and your clients will be impacted by these elections."

The group, dubbed the "AK Wolfpack" by Anderson in the email, includes Rick Alcalde of the Coconut Road earmark and Randy Delay, brother of former House majority leader Tom Delay.

The email, who's subject is "How Can I Help?," was sent on June 8, 2007 from Anderson's personal Yahoo address. Citing the case of defeated Rep. Richard Pombo, a close Republican ally of Young's in the House, Anderson outlined the Democratic threat as a "call to action". . . check-writing action:

For those of you who volunteered and served and watched November's elections, many of you observed or even worked former Congressman Richard Pombo's race. While each of you may have different opinions as to what may have contributed to to the election results, at the strategic level, we will all agree it is a textbook case in how Outsiders can reach into a district with money, volunteers, and a well coordinated attack defeat an incumbent not necessarily on his/her record, but on innuendo and perception.

If you think that Young's article in the NY Times being released the same day as Steven's article in the Wash Post was a coincidence, then I have a beluga whale in the Potomac to show you. If you think that the DNC or DCCC is not interested in turning Alaska blue, then you must have an unlisted phone number to your telephone booth.

You must believe that these forces, when combined, will have a major play and impact on Senator Ted Stevens or Congressman Don Young's election! And if that is the case, then much, much closer to home --- you probably understand that you and your clients will be impacted by these elections.

To some, this may be a scary proposition -- an opportunity to wring our hands and speculate. To others, it becomes a call to action -- to develop and execute a plan. I know into which of these two groups I fall into -- and where you AK Wolfpack members fall into, too.

Since the email was sent, over $90,000 has been contributed to Young's campaign either from the individuals on the list, their firms, or their firm's clients.

Besides those previously known to have ties to Young, through the "A Team," the remaining members of the "Wolfpack" are comprised of many former staffers for Young and Sen. Ted Stevens (R-AK). For all those named to the "AK Wolfack," see the ADN.

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