Bill Allen

State's Key Witness Set to Testify This Afternoon at Stevens' Trial

Kate Klonick | September 30, 2008, 11:23AM

Former VECO CEO Bill Allen, whose work on Ted Stevens' home is at the center of the senator's ongoing trial, is set to testify for the prosecution this afternoon.

Allen, who pleaded guilty to bribing Alaska state lawmakers, has been the jewel in the FBIs crown, providing testimony in trials against many of the legislators he once paid for votes.

Stevens' attorneys have worked hard to try to disqualify Allen's testimony, demanding medical records for Allen and accusing him of receiving $40 million for his cooperation with the government.

Allen is expected to testify to the $250,000 worth of gifts and services he and VECO provided to Stevens, which included home renovations, a car, a new grill and interior furnishings.

Ted Stevens

Construction Workers On Stevens' House Say They Worked For VECO

Zachary Roth | September 26, 2008, 3:27PM

At the center of the case against Ted Stevens, the Alaska Republican senator whose trial opened this week, are renovations to his home that the prosecution alleges were paid for by the oil-services contractor VECO.

And today, four construction workers testified that when they worked on Stevens' home, they either worked for VECO or reported to its staffers.

On of the workers testified that Stevens' wife, Catherine, once brought them muffins. On Wednesday, Stevens' defense lawyer seemed to try to shift responsibility onto Catherine Stevens, by claiming that she was the driving force behind the renovations and handled the project's finances.

Stevens is charged with failing to report gifts, of a value of $250,000, on Senate financial disclosure forms.

Ted Stevens

Opening Statements Start In Ted Stevens' Trial

Kate Klonick | September 25, 2008, 10:21AM

The trial of Sen. Ted Stevens has officially begun, with attorneys making their opening statements at 9:30 this morning to the jury of mostly white-collar professionals.

It has been just under two-months since the sitting senator was indicted on seven counts of false statements for allegedly lying on his financial disclosure reports on gifts he received from the oil pipeline company, VECO. Stevens demanded a speedy trial and attempted to have the case moved to Alaska in part to accommodate his ongoing re-election campaign in Alaska. District Court Judge Emmet Sullivan complied with a quick court date, but declined to move the trial out of the jurisdiction in which the charges were filed -- Washington, D.C.

Among the witnesses scheduled for today, is John Hess, a former VECO engineer whose initials are on the renovation plans to Stevens' home, the Anchorage Daily News reports.

The star witness in the case is former VECO CEO Bill Allen. In attempts to discredit Allen, Stevens' attorneys have requested his medical history and recently alleged in court filings that Allen is receiving a windfall of $40 million for his cooperation with the case, a charge which has been disputed in subsequent filings.

Stevens own appearance on the stand has been the subject of much debate, with Stevens saying he intends to testify but will follow the advice of his lawyers.

We'll be bringing you updates throughout the day on this historic trial, so stay tuned.

Bill Allen

Stevens' Defense: Allen Gets $40M for Cooperation

Kate Klonick | September 23, 2008, 5:43PM

Attorneys for Sen. Ted Stevens are doing their best to discredit Bill Allen, the former VECO CEO and key witness in the government's prosecution.

In documents filed yesterday, the defense claimed that Allen would receive a windfall of $40 million in return for his cooperation with the investigation.

"Defense counsel have recently learned that Mr. Allen stands to gain an additional $40 million of a total of $70 million in 'hold back' cash from the sale of Veco to CH2M Hill if he continues to cooperate with the government and if Veco continues to avert indictment," court documents filed Monday said.

But CH2M, the company that acquired the VECO from Allen, rebutted Stevens' attorneys' claims stating that the defense "misconstrues the terms" of CH2M's agreement with Allen.

From court documents filed today:

The principal purpose of the holdback, which is a common provision in the context of typical acquisition transactions, is to cover CH2M HILL for undisclosed liabilities, such as those relating to tax, environmental, and human resources.

Use of the holdback in connection with a breach of Mr. Allen's cooperation agreement or an indictment of VECO is available only upon a showing of damages, and then only in the amount of the damages resulting from the event.

The Allen family's right to the holdback funds is not conditioned, as the defense suggests, on Bill Allen's cooperation or VECO not being indicted.

Ted Stevens

Stevens' Request to Attend to Senate Business Could Give Jury "Negative Impressions," Judge Warns

Kate Klonick | September 23, 2008, 11:32AM

With Congress working around the clock to stave off the collapse of the U.S. financial market, indicted Sen. Ted Stevens (R-AK) doesn't want his constituents to think he's not representing them in the midst of crisis.

So even though Stevens is in a crisis of his own -- the federal trial to determine whether he failed to report over $250,000 in gifts and home repairs on his financial disclosure forms began yesterday -- he asked permission from the judge to be excused from courtroom appearances so he can attend to Senate business on the bailout.

Judge Emmet Sullivan warned Stevens and his attorneys that this might give the jurors the idea that Stevens didn't care about his trial.

"We don't want to have any negative impressions going on," Sullivan told Stevens, according to an article by The Hill. "People reach the wrong impressions for the wrong reasons."

From the AP:

Being absent as Congress considers a historic $700 billion bailout of the financial market could make it look like the corruption charges have made it impossible for Stevens to do his job.

Prosecutors didn't oppose Stevens' plan to leave court but they said Stevens shouldn't be able to use the crisis to cast himself as a dedicated senator in front of jurors. The judge said Stevens could leave court but jurors would not be told why.

Ted Stevens

Ted Stevens' Trial Begins with Jury Selection

Kate Klonick | September 22, 2008, 11:42AM

The trial of Alaskan Sen. Ted Stevens on seven counts of false statements begins today in Washington, D.C. Stevens, a seven term Republican, arrived in court this morning for jury selection. Opening statements are expected to begin either Tuesday afternoon or Wednesday morning.

The trial, which Stevens requested be as speedy as possible, is expected to last a month, ending shortly before the election. Originally, Stevens attempted to have the trial moved to Alaska, to accommodate his campaign for re-election. The motion was overruled, but the judge has stated that the trial will recess for Fridays, to allow the sitting Republican time to return to the campaign trail in Alaska.

Potential witnesses in the trial include Stevens himself, as well as former-VECO executive Bill Allen. Democratic Senators Ted Kennedy (MA), Patrick Leahy (VT) and Daniel Inouye (HI), as well as Sen. Orrin Hatch (R-UT) and former Secretary of State Colin Powell were also listed to jurors as possible witnesses this morning.

Stevens pleaded not guilty to making false statements on his financial disclosure forms relating to gifts he received from Allen for renovations on his home in Girdwood, Alaska, among others. 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, a grill, as well as failing to report other gifts, such as a $29,000 bronze statue of a fish. The total amount of gifts is valued at over $250,000.

Alaska

Judge Rules Against Stevens Motion; Denies His Charges Violate the Constitution

Kate Klonick | September 17, 2008, 9:25AM

Indicted Sen. Ted Steven's (R-AK) most recent attempt to have his case thrown out, on the grounds that it violated the constitutional separations that prohibit members of Congress from being prosecuted for legislative actions, has been rejected by a U.S. District Judge.

From McClatchy:

[U.S. District Judge Emmett Sullivan] turned down Stevens' lawyers' request to throw out the seven-count indictment against the senator and said Tuesday in a hearing that if evidence arises at trial that looks as though it violates what's known as the speech-or-debate clause of the Constitution, he will consider barring it.

. . . Sullivan reviewed grand jury transcripts to determine whether witnesses were asked questions that would've violated the speech-or-debate clause, which limits what sort of evidence executive branch investigators can use when they probe acts by members of Congress. He said he saw a handful but that they were "in no way pervasive."

Stevens, in the midst of a re-election bid, didn't attend the court hearing Tuesday. However, he was in Washington at the Capitol.

Ted Stevens

Ted Stevens' "Trial By Ambush"

Kate Klonick | September 12, 2008, 7:21PM

The back and forth in the case against indicted Sen. Ted Stevens (R-AK), continues with the defense filing a rancorous motion charging the prosecution with "trial by ambush."

In a hearing today, the two groups battled over documents and photos, specifically of the Stevens' residence in Girdwood, whose renovation lies at the heart of the indictment, and at one point conducted a length debate over the terminology best used to describe the property.

From the AP:

Defense lawyers indicated they will likely challenge some of the thousands of pictures the Justice Department took of Stevens' house in Girdwood, Alaska, a ski resort town outside Anchorage, which the indictment said the senator often referred as "the chalet."

"We think some were taken with wide angle lenses that distort the size of the home," said Stevens' lawyer Robert Cary, who noted that real estate agents often do the same thing to sell houses.

"It's a modest cabin in Alaska," Cary added.

"A modest chalet?" U.S. District Judge Emmet Sullivan said.

Prosecutor Brenda Morris pointed out that the government didn't call it a chalet; Stevens did. "It was a modest cabin," but the work expanded it into a ski chalet, Morris said. "We didn't take any pictures to make it look more than what it is," she said.

Ted Stevens

Stevens Loses Motion to Dismiss Charges; Trial to Begin in 12 Days

Kate Klonick | September 10, 2008, 4:42PM

Indicted Sen. Ted Stevens (R-AK) might have handily won his primary, but he's not been so lucky with motions.

A judge ruled against Stevens today in his request to throw out the charges against him,

From Reuters:

U.S. District Judge Emmet Sullivan rejected defense efforts to dismiss the charges on grounds that only the Senate may discipline him for any violations of Senate rules and that the indictment was unconstitutionally vague.

Guess we'll be seeing Stevens in court on September 22, as originally planned.

Ted Stevens

Stevens Defense Could Drag Out Trial

Zachary Roth | September 9, 2008, 10:55AM

Indicted Alaska senator Ted Stevens has said he wants his trial to be completed before he stands for reelection in November. But his lawyers are seeking materials that, according to legal experts, are likely to drag out the case.

The Politico lists some of the materials requested by the Stevens team:

• Secret grand jury transcripts, including testimony from a Stevens aide called before the panel, to find out whether the Justice Department used information that may be privileged under the Constitution's "speech or debate" clause.

• Reports from FBI agents who listened in on 105 of the senator's telephone calls -- a fraction of the more than 2,800 calls agents monitored as part of their Alaska corruption probe.

• Medical records to show whether former VECO Chairman Bill Allen, whose company allegedly provided more than $250,000 in "things of value to Stevens," has suffered from a head injury or any other "cognitive impairments" that might affect his testimony.

• Detailed information on all potential government witnesses: their criminal histories, plea deals and immunity agreements, as well as any information the Justice Department may have about their abuse of drugs or alcohol.

• The photographs of Stevens' Girdwood, Alaska, home taken by FBI agents during a search in July 2007. Stevens' lawyers are suggesting that photos the government wants to introduce into evidence were taken with "wide angle lenses or other optics that distorted the perspective in the photos" to make some of the rooms in the house look larger than they really are.

Politico notes the contradiction at the heart of Stevens' defesne: "While Stevens has put a priority on getting the case done quickly, his lawyers seem determined to present the most aggressive defense possible. Those two interests may collide as the trial date draws near."

Stevens is charged with failing to report gifts from supporters worth hundreds of thousands of dollars on financial disclosure forms.

Ted Stevens

In Stevens Case, the Medium is the Massage

Zachary Roth | September 8, 2008, 3:06PM

Here's a little more dish on the case against indicted GOP senator Ted Stevens. The Justice Department released a new filing today, adding a few items to the list of gifts that Stevens allegedly received from "personal friends" and failed to report on financial disclosure forms. Among those items, according to the filing:

- "a $2,695 massage chair."
- "a $3,200 hand-designed, hand-constructed stained glass window, built to specifications provided by the defendant and his spouse."
and:
- "a sled dog, valued at approximately $1,000."

Stevens' trial is scheduled to begin September 24th. He has denied the allegations of wrongdoing.

Sarah Palin

Palin As Reformer? Not Quite...

Kate Klonick and Zachary Roth | September 3, 2008, 8:53PM

As we get ready for the big Sarah Palin speech tonight, it's worth taking a moment to step back from the charges of negligent vetting and media sexism, to focus on what really should be the heart of the issue.

The McCain campaign has presented Palin as a squeaky-clean reformer, who took on corruption in Alaska, and will help to bring a new brand of politics to Washington. But a flurry of reports over the last few days significantly undercut that image.

To be sure, Palin's claims to be a reformer aren't toally without merit. Before becoming governor, she went after the state GOP chair, Randy Ruedrich, for doing work for the party on public time and working closely with a company he was supposed to be regulating. She also filed a formal complaint against Attorney General Gregg Renkes for having investments in an energy company that stood to benefit from a state trade deal. Both Ruedrich and Renkes ultimately resigned their posts, and Ruedrich paid a $12,000 fine.

But let's look at the other side of the ledger. Both as mayor of Wasilla and as governor, Palin has aggressively sought federal earmarks, and has a friendlier relationship with indicted GOP senator Ted Stevens than one would expect for a good-government crusader. She has fired employees who she sees as disloyal. And, in a move reminiscent of the Bush-Cheney White House, she has stonewalled legitimate efforts by the legislature to uncover the truth in the Trooper-Gate affair.

Here's a sampling of reports that complicate Palin's reformist credentials:

• Last year, Palin requested more earmarks per person than any other state -- including some that were criticized by McCain himself.

• Even as mayor of Wasilla, Palin's pursuit of earmarks was aggressive. She oversaw the hiring of a Washington lobbyist -- who, as we reported yesterday, had ties to Jack Abramoff -- to go after federal pork.

• And though Palin touted her opposition to the "Bridge to Nowhere" just last week in her debut speech, she initially supported the project during her run for governor. It was only after the bridge became notorious as an example of pork barrel spending that she changed her position.
• In her run for governor, Palin was endorsed by now-indicted Sen. Ted Stevens. Video of the endorsement has been removed from her government website, but the two appeared together just two months ago at a press conference on energy. The friendly relationship between the embattled senator, who is accused of lying about gifts he recieved from an oil contractor, and the supposedly maverick governor is at odds with Palin's claim to dismantling the "old boys club" of Alaska government.

• As Wasilla mayor, Palin reportedly fired the police chief and attempted to fire the librarian, because she did not feel that she had their "full support in [her] efforts to govern the city of Wasilla." Former city officials allege that the attempts to remove the librarian were a result of her her refusal to censor books at Palin's request.
• Palin has been at the center of the Trooper-Gate scandal that alleges misuse of her gubernatorial power. The affair erupted in July when Palin fired the Public Safety Commissioner Walt Monegan. Monegan later claimed his firing was a result of his refusal to fire Palin's former brother-in-law and trooper Mike Wooten. Palin denied that she, her husband or her staff ever pressured Monegan, a statement she later had to retract when recorded phone calls revealed one of her aides, Frank Bailey, had called a troopers office pushing for Wooten's removal.
• Tonight, the Washington Post published emails from Palin to Monegan in which she appeared to complain that Wooten was still employed, apparently undercutting her claim that she discussed Wooten with Monegan only in the context of the security of her family.
• As a result of the Trooper-Gate allegations, an independent investigator has been appointed by the state legislature. In recent days, Palin has appeared to stonewall the probe. Her lawyer argued in a complaint filed last night that she wold not be made available for her deposition unless the probe were handed over to the state personnel board, whose members are appointed by the governor. Bailey, who had been suspended by Palin with pay for his actions, today backed out of his deposition.
• In a separate civil suit related to Wooten, Palin has claimed executive privilege on over a thousand emails between her and her staff, including Bailey.
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Ted Stevens

FBI Taped More Than 100 Stevens Conversations

Zachary Roth | September 3, 2008, 12:27PM

As part of a wide-ranging probe of corruption in Alaska politics, the FBI secretly taped over 100 phone calls involving indicted GOP senator Ted Stevens.

The revelations were contained in court filings made last night by Stevens' attorneys. Some of the FBI's recordings of phone conversations had already been made public during the corruption trials of other Alaska politicians, but the number of calls involving Stevens had not previously been known.

Stevens faces charges that he lied about gifts worth more than $250,000, including renovations to his home, that he received from Bill Allen, an oil contractor.

Stevens' attorneys appear likely to argue that the calls should not be admitted into evidence. They write in the filing that only conversations relating to people or topics named in a warrant can legally be recorded by the FBI, and Stevens was not named as a target. The FBI did not tap Stevens' phone, but did tap the phones of several contractors in the case.

McClatchy notes another strategy being pursued by the defense:

His lawyers also continued to press their case for throwing out the indictment based on the speech-or-debate clause of the U.S. Constitution, which bars government prosecutors from using speeches and legislation introduced by members of Congress as evidence. Prosecutors said that evidence protected by legislative immunity granted by the Constitution was not shown to the grand jury that ultimately indicted Stevens.

Jury selection for the trial begins September 22, and the trial itself starts two days later. Stevens is also facing a tough re-election fight against Anchorage mayor Mark Begich, a Democrat.

Jack Abramoff

Palin's Lobbyist Has Abramoff Ties

Kate Klonick and Zachary Roth | September 2, 2008, 1:01PM

It looks like Sarah Palin's claim to represent a cleaner brand of politics could be about to take a bruising.

The Washington Post reports today that, while Mayor of Wasilla, Palin oversaw the hiring of a lobbyist, Steven Silver -- a former chief of staff to now-indicted GOP senator Ted Stevens -- to help win federal earmarks for the city.

But Silver appears to have additional ties that could further undercut Palin's image as a squeaky-clean reformer. According to Senate lobbying disclosure reports examined by TPMmuckraker, from 2002 to 2004 Silver listed as a client Jack Abramoff's lobbying firm, Greenberg Traurig. On Greenberg's behalf, Silver lobbied the federal government on "issues relating to Indian/Native American policy," "exploration for oil and gas" and "legislation relating to gaming issues" -- the very issues that Abramoff headed up for Greenberg at the time. In other words, Silver appears to have been a part of "Team Abramoff."

Indeed, one specific bill that Silver lobbied on for Greenberg, according to the forms, was S.627, also known as the Internet Gambling Funding Prohibition Act. A former Greenberg lobbyist confirmed to TPMmuckraker that Silver would have been working to oppose the bill. And it was an earlier version of this very bill that Abramoff famously worked to spike, with the support of Christian conservative leaders Lou Sheldon and Ralph Reed.

There's additional evidence of ties between Silver and Abramoff. Emails released by a House committee in 2006 as part of a probe of Abramoff show the now-disgraced lobbyist scheduling a meeting with Silver in 2001.

Silver is a member of the Anchorage-based law firm of Robertson, Monacle, and Eastaugh, which the Post describes as having "close ties" to Stevens, and Alaska Congressman Don Young, who's under federal investigation for allegedly taking bribes. Since 2005, Silver has contributed $3500 each to Stevens and Young, according to campaign contributions records posted at CampaignMoney.com.

This is far from the first time that Abramoff's trail of corruption has led to Alaska. Last year, Mark Zachares, a former aide to Young, pleaded guilty to accepting tens of thousands of dollars in gifts from Abramoff in return for using his position to advance Abramoff's goals.

Silver did not immediately return a call requesting comment.

Alaska

Anti-Establishment Palin Gained Political Know-How Working on Stevens 527

Kate Klonick | September 1, 2008, 4:43PM

The presumptive Republican vice presidential nominee and Alaska Gov. Sarah Palin has made her albeit-short public service career on ending corruption and turning the Alaskan political establishment on its ear.

Palin has been vocal about not being more of the same in Alaskan poltics. "[Experience is] not what Alaska needed," Palin has said. "The state needed new blood in there. A candidate with new energy and new ideas."

But it looks like Palin got her experience working as a director at the 527 group from the oldest of Alaskan politicians, embattled Sen. Ted Stevens (R-AK).

From the Washington Post:

Palin's name is listed on 2003 incorporation papers of the "Ted Stevens Excellence in Public Service, Inc.," a 527 group that could raise unlimited funds from corporate donors. The group was designed to serve as a political boot camp for Republican women in the state. She served as one of three directors until June 2005, when her name was replaced on state filings.