TPM Muckraker

Bill Allen

Bill Allen is the former CEO of the now defunct Alaskan oil company VECO. Allen pleaded guilty on May 7, 2007 to bribery and corruption charges. In his plea, Allen admitted to bribing three Alaska state representatives and two state senators. His testimony has been instrumental in the convictions of former Alaska Reps. Pete Kott and Vic Kohring and in the indictments and investigations of many other politicians, including Sen. Ted Stevens (R-AK).

Key Points:

Guilty Plea

Bill Allen pleaded guilty along with VECO Vice-President Rick Smith on May 7, 2007 to bribing five Alaska state legislators in exchange for contracts and favors. Allen's official convictions were extortion, bribery, and conspiracy to impede the IRS.

The plea agreement recommends Allen serve five to twelve years in prison, a lighter sentence in return for Allen helping with related FBI corruption cases in Alaska. Allen's VECO Corp. was sold to Colorado-based company CH2M Hill a little over a month after the plea.

Testimony in Trials of Alaska State Politicians

Bill Allen has served as the star witness in multiple Alaskan corruption trials since his guilty plea. His testimony and recorded conversations that have come up in trials have ranged from damning to bizarre.

A great example of this testimony from Allen came in the trial of former Alaska House Speaker Rep. Pete Kott. A phone conversation came up in court documents between Allen and Kott about sleeping pills and pills for "(explicit language for sex)" that Allen had given him. However, more damning was another phone conversation between the two men, during which Allen said "Well [expletive]. I put more money into Pete Kott then he's ever even thought about." Allen further testified that he planned on giving Kott a well paying job as a VECO lobbyist. Kott was understandably convicted.

Allen's involvement in the trial of Alaska State Rep. Vic Kohring also led to Kohring's conviction. During the trial, the prosecution presented an FBI video tape showing Allen and VECO Vice-President Rick Smith handing several hundred dollar bills to Kohring. Kohring reported to prison on June 30, 2008.

Allen also has a habit of name dropping other Alaskan politicians during these trials. In Kott's trial, Allen admitted that he had paid former State Senate President Ben Stevens (R) bogus consulting fees. He also admitted that VECO employees had worked on Ben's father Sen. Ted Stevens' (R-AK) Girdwood home renovations, a claim that would later factor into Stevens' indictment.

Relationship with Sen. Ted Stevens (R-AK)

There are few relationships quite like the one shared by Bill Allen and Sen. Ted Stevens (R-AK). The two men were once great friends. They did everything together from camping out with some wine to late night phone chats, during which Allen (at least once) professed his adoration for Stevens: "Ted, I love you, you know."

But alas, these days are no more. When Stevens was indicted on July 29, 2008, Bill Allen was the man at the center of the indictment. The indictment hinged on Stevens not disclosing renovations and gifts for Stevens' Girdwood home that Allen paid for. This relationship does not appear to be a one way street either, with Stevens doing his part to keep Allen flush as well.

Allen, with his prior success with conviction-ready testimony, was the clear choice for the star-witness for the prosecution in Stevens' federal corruption trial. Stevens' defense attempted to discredit Allen's testimony as much as possible, even going so far as to admit as evidence Allen's alleged sexual relationship with a minor.

Not withstanding the allegations, Allen's testimony took place and concluded on October 6, 2008. His testimony served as a testament to the relationship he shared with Stevens, exposing both their past emotional and financial bonds as Allen admitted to not charging Stevens for thousands of dollars worth of gifts.

Written and researched by Matt Berman

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