« previous | MUCK HOME | next »
Veco’s Adventures in Sub-Contracting
As we reported a couple of days ago, the federal investigation into a bribery scheme centering on one of Alaska's biggest oil services companies has crossed paths with Senator Ted Stevens (R-AK). And Stevens' problems seem to come down to some highly creative methods Stevens used to remodel his Alaska home.
According to contractor Augie Paone, it all started when a group of unnamed "friends" got together to renovate the senator's house as a weekend project. The group of friends ended up being unable to pull it off. But in the group’s defense, the job was pretty ambitious. The plan was to ratchet the one-story house off its foundation, build a new first floor and then place the old first floor on top of the new first floor. Unfortunately for the do-it-yourselfers, they ran into a few problems.
That’s when the local contractor, Paone, came into the picture. Paone has provided most of the sordid details in this story, since none of the other players are talking. According to Paone, it wasn’t Stevens who sought him out to fix the mangled construction, but oil company Veco Corp. It's not clear how involved Veco had been in the do-it-yourself phase of the remodeling. But Paone says Veco was in charge when he came on board. Veco hired Paone and and collected and reviewed the $100,000 worth of invoices he submitted as the project progressed. Paone would then receive payments signed by Stevens -- checks which according to Paone appeared to come from a special account created for the renovation.
Paone says he didn’t know Stevens before working on the house and dealt with Veco during the project. He told a local television station he doesn’t think the arrangement raises any red flags.
"The senator doesn't know me, so some of the people I had contacts with were more familiar with the senator, so they kind of took over his interests and they kind of overviewed the billings. After they saw them, it was just faxed over to the senator and the senator a few days later just mailed me a check," Paone said.Here’s the straightforward arrangement: oil company decides to remodel senator's house, oil company finds contractor, contractor creates new first floor in senator's house, contractor sends invoices to oil company, oil company reviews bills, oil company faxes bills to senior senator, senior senator pulls cash from a special account set up specifically for the construction and pays contractor, senior senator never speaks to contractor. The arrangement looks fairly questionable on its face. And it looks even more questionable when you take Veco's track record into account. The person from Veco who hired Paone was Veco CEO Bill Allen. Allen happens to have just pled guilty this month to federal conspiracy and bribery charges for “giving things of value” to local lawmakers. In a court document accompanying his guilty plea, the Anchorage Daily News noticed a seemingly irrelevant description of what the company did not do while he was in charge: "Veco was not in the business of residential construction or remodeling." So far Stevens has refused to explain the arrangement. But it has piqued the FBI’s interest and investigators are looking into it. Paone says the FBI interviewed him about six months ago and that he testified before a grand jury in December. In response to questions about the remodeling, Stevens’ spokesman sent me a statement saying the senator is not commenting.
Advertisement
Comments (50)
Edog9 wrote on May 31, 2007 6:39 PM:Could this be the end of Senator Stevens?
regular lurker wrote on May 31, 2007 6:43 PM:Why such an elaborate scheme to pay for a home renovation? I could understand if Stevens had hired an architect and said, just make it happen...but Vecco isn't in the business of home renovations.
maybe Stevens thought he had an oil well hidden under there...
Aredubya wrote on May 31, 2007 6:43 PM:His career may be going down the tubes!
*rimshot*
JohnW1141 wrote on May 31, 2007 6:49 PM:Stevens and Domenici may be on the endangered list.
Big Mitch wrote on May 31, 2007 7:09 PM:Be cautious about counting Ted Stevens out too early.
He is still known as Uncle Ted up here, in Alaska. His son, on the other hand, has dirty hands and will pay the price.
Please visit the Schapira blog, "What we know so far ..." at http://schapira.blogspot.com
"... and tell 'em Big Mitch sent ya!"
Edog9 wrote on May 31, 2007 7:18 PM:Uncle Ted may well still be elected, but he'll likely hold office from a jail cell.
yellowdogfox wrote on May 31, 2007 7:19 PM:I'm excited by the prospect of a group of my friends coming over to renovate my house some weekend, but I've decided not to hold my breath.
ASchwartz wrote on May 31, 2007 7:32 PM:Hmm??? This "arrangement" is similar to the one former Representative Jim Trafficante had with some local Youngstown (OH) builders. That "arrangement" ended up with Trafficante doing time in a federal facility. What's good for the Representative from Youngstown should be good for the Senator from Alaska.
ASchwartz wrote on May 31, 2007 7:32 PM:Hmm??? This "arrangement" is similar to the one former Representative Jim Trafficante had with some local Youngstown (OH) builders. That "arrangement" ended up with Trafficante doing time in a federal facility. What's good for the Representative from Youngstown should be good for the Senator from Alaska.
ASchwartz wrote on May 31, 2007 7:33 PM:Hmm??? This "arrangement" is similar to the one former Representative Jim Trafficante had with some local Youngstown (OH) builders. That "arrangement" ended up with Trafficante doing time in a federal facility. What's good for the Representative from Youngstown should be good for the Senator from Alaska.
kuparuk wrote on May 31, 2007 7:34 PM:Psst. TPM keeps referring to Veco as an "oil company." Veco isn't an oil company. They are a service contractor (read, "body broker").
The *are* scum. But they aren't an oil company.
apeman wrote on May 31, 2007 7:54 PM:Is the house near the bridge to Nowhere,AK?
za wrote on May 31, 2007 8:08 PM:two questions:
1. What was an oil company, who admits to having nothing to do with home renovations, doing "handling" the project?
2. Who made the deposits to that special checking account?
Mrs. K8 wrote on May 31, 2007 8:10 PM:The piece of info which should have had Ted Stevens quaking in his boots some time ago was the seeming non-sequitur in the legal document concerning Allen's guilty plea, as noted above:
"Veco was not in the business of residential construction or remodeling."
Now why, oh why, would Allen be asked to agree to have that non-sequitur inserted in his guilty plea document?
Senator Stevens, over to YOU!!!
Anonymous wrote on May 31, 2007 8:12 PM:"maybe Stevens thought he had an oil well hidden under there..."
***********************
Shhhhhhhh!! Don't give him any ideas for excuses!
Mark_W wrote on May 31, 2007 8:17 PM:The headline reads "Stevens Not A Target..." how is that possible? This deal seriously stinks.
Pinson wrote on May 31, 2007 8:19 PM:You gotta love this Paone guy. The morons at Veco obviously forgot to send him the check that would have paid for his memory. Oops.
Mrs. K8 wrote on May 31, 2007 8:24 PM:Mark W --
From what I understand, "target" is a legal term of art. Stevens could, instead, be considered a "subject." If I understand correctly, a target is the final kingpin the grand jury is ultimately aiming its sights on, usually with plenty of other subjects falling by the wayside with indictments galore before nailing him/her.
Somebody should ask if Stevens is considered a "subject."
[If my understanding is way off, please, legal eagles, correct me!]
Mrs. K8 wrote on May 31, 2007 8:27 PM:Forgot to add this:
I also think it's true that up until the moment the "target letter" goes out to the named target, that individual is, technically speaking, not yet a "target."
[Again, if I'm not correct in this, I hope someone steps in to enlighten all of us.]
za wrote on May 31, 2007 8:56 PM:and question number 3:
3. Was there any quid pro quo for the services Veco supplied for "running" the project?
Robin Boerner wrote on May 31, 2007 9:13 PM:I am sure Uncle Ted would still be elected even while under indictment. The last governor Murkowski put his half wit daughter up as his replacement in the US Senate and said with a straight face that she was the most qualified person in the state to take his place. He may have well been right, the morons up here voted her in on her own on 2004.
This is a state you have to see at least once. Just think twice about living here. In a state where 1/3 of the population gets it's living from the federal tit in some way it is like the rest of the Right Wing War Profiteer nut jobs...corrupt and incompetent.
The best thing that could happen to Alaska is that the next Democratic House, Senate, and President cut the federal dollars coming to this frozen shithole by at least 50%. When the corrupt have to work honestly for their take maybe they will leave.
Michael Powe wrote on May 31, 2007 9:50 PM:"The end of Senator Stevens"? The guy must be 80, he's been in the Senate since 1968. He fought in WWII, fer cryin out loud. Come on ...
i hope they nail him for this bit of "creative" remodelling -- the ex-gov of CT just did 10 months for that same kind creative interaction with "supporters." but Stevens could be living in the family plot by the time the investigation is completed.
mp
daveminnj wrote on May 31, 2007 9:55 PM:robin, please, don't hold back.
Black Flag wrote on May 31, 2007 10:25 PM:tell us how you REALLY feel!
Could he be related to Conrad Burns? They look like they might be brothers--nothing will eat you up worse than a mean, dishonest heart.
Robin Boerner wrote on May 31, 2007 11:03 PM:I guess I was pissed Dave..
I had just got off the phone with Steve in the new Governor Sarah Palin's office. Everyone is expecting her to be the white knight to save Alaska from the scum. Unfortunately dealing with her office so far is showing me she may not be as crooked as the typical Alaskan politician but she may be clueless enough for the corrupt to just do their business as usual.
To make it simple. Look at the graphic at the link at my name. It seems there are an excess of Military Intelligence Lt Colonels in Alaska.
Sarah Palin's office sees no conflict of interest in that graphic. Just happens to be a Military Intelligence US Army Lt Colonel Reservist/Anchorage Police Dept Cop investigating an assault in an effort to disrupt a federal lawsuit against the US Army. Anyone else think the the Great Decider Boy War King would let the LT Colonel keep his career if he found the US Army minion was wrong?
Bottom line is this state is corrupt and/or incompetent to the core. And, like the constant din of the noise in Manhattan, Alaskans are deaf to it.
putnam wrote on May 31, 2007 11:08 PM:And this locally entrenched crackpot has national influence and power all out of proportion to his constituency's size. I'm from Brooklyn. If Alaska gets two Senators, Brooklyn should get eight. Then we'd see some cool urban homes.
johnnydoughey wrote on May 31, 2007 11:52 PM:This is actually something common in the petroleum industry.
Johann wrote on May 31, 2007 11:59 PM:First, the company thinks there might be an oil reserve on the property. The company then receives an ingress and egress for getting on and off the property. It then raises the home up high enough to search under the foundation for the oil. Finally, the company remodels the dwelling and puts it back into living condition with the caveat that it is now high enough to search under it once again if needed later on. The company (and the senator) will probably get off easily after repeating the same moves with some of the agency heads investigating any wrongdoing...
"Allen happens to have just pled guilty this month to federal conspiracy and bribery charges for “giving things of value” to local lawmakers."
Why is it a crime to give bribes to elected officials, but not a crime for elected officials to receive those bribes? Who were the elected officials Allen "gave things of value" to? And why are thwy not also facing federal conspiracy and bribery charges?
Anonymous wrote on June 1, 2007 12:11 AM:mrs k8--
you don't need to be the kingpin to be a target. IN a conspiracy case, many people may be targets but there is only a kingpin or two.
This is a way for a prosecutor to start turning up the heat on an unwilling or uncooperative witness. You get a notice from the prosecutor that you are a target--it focuses the mind somewhat.
Arabiflora wrote on June 1, 2007 12:15 AM:"Stupid is as Stupid does" [Forest Gump].
Thank you, Senator Stevens-- I finally understand that phrase.
JNagarya wrote on June 1, 2007 12:46 AM:This'll teach you the consequences of being opposed to porkbarreling: you elect someone from your state to Congress who won't porkbarrel. Then the pork you don't get is given to Sen. Ted Stevens (AK-cRook).
Otherwise, Veco's claim that it doesn't do residential remodeling is obviously true.
SC = small. As in, Why does Sen. Stevens look so small despite being an overfed porker?
George Kaplan wrote on June 1, 2007 12:57 AM:Uncle Ted kicked off his re-election campaign Wednesday. He says he has no real competition and he appears to be correct. Before the 2006 elections the AK Democratic party was suing the the state for previous election voting facts, seems some districts have more votes than voters. The state said the info belonged to ESS/Diebold it contained proprietary information. Since when is a public election a private companies property? After the 2006 election the AK Dems dropped their legal proceeding, never did get a good answer as to why they did this. The election results were full of co-incidence (exact same percentages for both officeholders and a controverial ballot measure) I thought it was unusual but evidently the Dems were satisfied. Most of the Alaska precincts voting uses electronic voting machines, how can one expect it to be honest?
ewastud wrote on June 1, 2007 1:08 AM:Stevens may not have been officially informed that he is a "target" yet. However, that official notification may just be days away, from the looks of it.
Ed*ard Teller wrote on June 1, 2007 1:21 AM:Here's a question for you,
Yesterday Stevens was in Girdwood for the groundbreaking of a new public facility there. Then he mushed on up the tubes to Fairbanks for an evening fundraiser. Don Young was there for both events. What is interesting to me about the Fairbanks fundraiser is this:
"Staff Sgt. James Moore, who introduced Stevens, called him a “warrior of the Senate.”
“To be a soldier you must have the ability to tolerate pain and stress,” Moore said. “These are not only on the battlefield, sir, but also in Washington, D.C.”"
http://newsminer.com/2007/05/31/7260
If SSgt Moore was in uniform when he introduced Stevens at a partisan fundraiser, is that a violation of any military, civil or political statute or regulation?
I'm trying to determine if that is the case and if pictures were taken.
sc - fear - seems appropriate enough, eh?
Robin Boerner wrote on June 1, 2007 1:39 AM:If SSgt Moore was in uniform when he introduced Stevens at a partisan fundraiser, is that a violation of any military, civil or political statute or regulation?
I'm trying to determine if that is the case and if pictures were taken.
sc - fear - seems appropriate enough, eh?
Posted by: Ed*ard Teller
Date: June 1, 2007 01:21 AM
Only illegal if you are raising money for the liberal, Anti-American, scum sucking Democrats.
Of course if it's for a fine upstanding....well short shit...Republican Senator such as Stevens...The Great Decider will demand that the War Gods smile upon you, Cheney will cast a spell with his icy glare eyes lasor eye's so that every Muslim Mutants fingers curl and they can't wire those IED's. Oh, and if that soldier raised enough moola for Ted, well then, he gets a free Halliburton key chain and Blackwater camelback.
It's all in there...Bush's latest signing statements. Cheney bought him new crayola's. And a goat book.
Ed*ard Teller wrote on June 1, 2007 1:48 AM:Hey, Robin!
I'm looking for a definitive answer. If it is a violation of campaign laws or whatever, I'm seriously considering filing a formal compaint before 5:00 p.m. AST tomorrow.
eva wrote on June 1, 2007 1:59 AM:Ed*ard Teller @ 1:21--
Yes, highly illegal, at least for civilians, appropos the Hatch Act. I was under the impression that it's even more of a big deal for military... usually they have stricter rules than the civs, not the other way around.
any photographic evidence? not sure what you would do, but documenting is a good first step. it won't nail stevens, but it'll get this soldier to quit running around raising money in uniform.
Ed*ard Teller wrote on June 1, 2007 2:46 AM:eva,
I'm not looking to get the poor schmuck in trouble. I'm looking to force the Stevens campaign to have to deal with one more negative issue in the press. Besides, if it is a violation of campaign law or the Hatch Act, it is just plain wrong.
Ed*ard Teller wrote on June 1, 2007 3:03 AM:Johann said "Why is it a crime to give bribes to elected officials, but not a crime for elected officials to receive those bribes?"
It is a crime. Alaska State Representative Vic Kohring has been charged by the Feds for doing just that.
Also, back in August/September when the first wave of busts came down, Kohring's office was searched by the FBI. When they left, according to Kohring then, he was told he was "not a target."
JT wrote on June 1, 2007 8:42 AM:Ed*ard Teller,
If SSgt Moore was in uniform when he introduced Stevens at a partisan fundraiser, it appears to me to be a violation of a message issued by the Secretary of Defense in September 2002 which includes the following:
"12. SUPPORT OF POLITICAL EVENTS BY MILITARY PERSONNEL. [...] ALL MILITARY PERSONNEL, INCLUDING NATIONAL GUARD AND RESERVE FORCES, ARE PROHIBITED FROM WEARING MILITARY UNIFORMS AT POLITICAL CAMPAIGN OR ELECTION EVENTS. REFERENCES J, K, L, M AND N PERTAIN. [...]"
http://www.military.com/MilitaryCareers/Content/0,14556,MPDC_All_News_061206,00.html
For some reason I've been unable to open any web copy of the actual regulations pertaining to uniforms, so I can't cite chapter and verse on that, but the above seems to point pretty strongly to the conclusion that the sergeant was in violation of regs.
TominDallas wrote on June 1, 2007 8:54 AM:It looks like Stevens really should have quit over the Bridge to Nowhere.
stinger wrote on June 1, 2007 10:26 AM:The schmuck SHOULD get in trouble - anyone who's reached the rank of Staff Sergeant is a career soldier (having served multiple terms of enlistment and passing tests of military knowledge to attain promotions) and definitely knows better.
ALL MILITARY PERSONNEL, INCLUDING NATIONAL GUARD AND RESERVE FORCES, ARE PROHIBITED FROM WEARING MILITARY UNIFORMS AT POLITICAL CAMPAIGN OR ELECTION EVENTS.
Robin Boerner wrote on June 1, 2007 10:28 AM:Edward....sorry. As you see yes it's a crime. The biggest problem you will have is trying to get someone, anyone to do anything with that complaint. I could take two thousand words here listing everyone I have talked to trying to get the Bush Administration and the Republicans in Alaska and the US Army to follow the rules.
I can guarantee you that if this guy wore a uniform and raised money in Alaska for Ted Stevens that's ok with the law. His Commander in Alaska right now is probably Col. Hazen Baron. His phone number is 907-384-2100. Even if you find a photo of this guy in uniform, at the fund raiser with a collection plate in his hand, Col Baron will do nothing.
Check out this Alaska Report story to see why I am so sure of that. Col Baron is acting USARAK Commander because his boss got promoted:
http://www.alaskareport.com/z46115_army_nomination.htm
You can find my cell phone number at the link below. More US Army hijinks in Alaska. If I can help let me know. That is my fiance' in the Alaska Report story.
Good luck dude...
JNagarya wrote on June 1, 2007 1:42 PM:"It looks like Stevens really should have quit over the Bridge to Nowhere.
"Posted by: TominDallas
Date: June 1, 2007 08:54 AM"
If Stevens is a pirate, then how come it's a bridge instead of a plank?
SC = knot. As in, Time him up in knots and keelhawl the swab.
Ed*ard Teller wrote on June 1, 2007 3:34 PM:SSgt Moore was in uniform when he introduced Senator Stevens on Wednesday, according to the reporter who wrote the News-Miner story cited by me above. I just got off the phone with the young man, who is beginning to realize the possible importance of this story. Fairbanks TV stations 11 and 13 (NBC and CBS, IIRC) photographed parts of the fundraiser.
Moore's conduct and the Stevens campaign's actions were clear and willful violations of the Hatch Act and a direct order from the Secretary of Defense -
Slippery Slope wrote on June 2, 2007 11:56 AM:SECDEF MSG 0312052112Z
UNCLASSIFIED//
SUBJ: DOD PUBLIC AFFAIRS POLICY GUIDANCE CONCERNING POLITICAL CAMPAIGNS AND ELECTIONS
Clearly there are double standards.
Take, for example, what is going on with the DoD going after Adam Kokesh. Adam is on Individual Ready Reserve (IRR) status, yet the military is trying to take away his Honorable Discharge and veterans benefits for being in partial uniform (with no identifying insignias) while participating in a demonstration.
Kokesh protests a corrupt, American troop killing occupation – he gets prosecuted
Moore supports a corrupt Republican Senator – he gets a pass.
To read more about Kokesh, go take a look at:
wlgriffi wrote on June 2, 2007 2:25 PM:http://www.ivaw.org/node/861
LOL!! Doesn't any Alaskan know that "It isnt what you know. It's who you know" is the golden rule in politics. The rule applies to all parties.
salmonshark wrote on June 4, 2007 6:23 AM:Campaign Donation Special
FOR A LIMITED TIME ONLY!!
Give generously to:
UNCLE TED'S CAMPAIGN/LEGAL DEFENSE FUND
Get a free FBI investigation.
(while supplies last)
Security Code: glass
Give Liberally And Stevens Skates.
Jewel Walker Sr. wrote on July 13, 2007 12:58 PM:My wife and I have been directly ivolved,assaulted,harmed and refused all dueprocess of law,along with with 30 years of corruption in government offices.So we are the subjects of all sorts of government corruption,to date.We are senior retired territoral citizens,with verry little to live on after state agencies have extorted our incomes for well over 35 years,with false cases and no due process afforded us.We are official experts if ever on state and federal corruptions.So us start an email process of educating the general public on corruptions in Alaska governments.
sean wrote on August 30, 2007 11:06 AM:I worked for VECO for 10 years and I worked with Bill Allen's brother. Everyone even us grunts knew what was going on guys were sent to town all the time to work on politician's houses. It was common to see someone that worked on the slope and ask where they have been and they would say "Oh I was working on Steven's house". BP knew about the "arangements" and gave their blessing by granting VECO fat contracts. BP, Exxon, and ARCO all funneled bribes to Alaska politians through VECO.