Alaska

Another Guilty Plea In Alaska Corruption Probe

Zachary Roth | March 12, 2009, 5:38PM

Oe of our favorite wide-ranging probes, the one into corruption in Alaska state government, grinds relentlessly on.

The Justice Department just announced that Beverly Masek, a former member of the state House of Representatives, pleaded guilty today to conspiracy to commit bribery, in connection with cash payments she received from oil-services contractor Bil Allen, in exchange for using her position to take actions that benefited Allen's company.

Masek faces a maximum of five years in prison, and is due to be sentenced in May.

The wide-ranging probe, of course, has already netted Ted Stevens -- the Republican former U.S. senator, who was convicted last fall of making false statement on his Senate disclosure forms in connection to gifts he received from Allen. -- as well as several Alaska state lawmakers in addition to Masek.

Justice Department

Judge To Stevens Prosecutors: "Isn't The Department of Justice Taking Court Orders Seriously These Days?"

Zachary Roth | February 13, 2009, 4:42PM

This just gets worse and worse...

Last week, as we told you, defense lawyers for Ted Stevens formally asked the judge in his case to hold the prosecution in contempt, after a string of incidents in which the government was found to have withheld information from the defense.

And now Judge Emmet Sullivan has done so, reports the Associated Press.

Last month, Sullivan ordered prosecutors to turn over FBI documents concerning a whistleblower complaint against the agent leading the investigation into the former Alaska senator.

But they didn't, provoking the wrath of Judge Sullivan:

"That was a court order," he bellowed. "That wasn't a request. I didn't ask for them out of the kindness of your hearts. ... Isn't the Department of Justice taking court orders seriously these days?"

He said he didn't want to get "sidetracked" by deciding a sanction immediately and would deal with their punishment later. But he ordered them to produce the material by the end of the day.

"That's outrageous for the Department of Justice -- the largest law firm on the planet," he said. "That is not acceptable in this court."

This is just the latest embarrassment for the Justice Department in the case. In late January, the head of the department's Public Integrity Section admitted in writing to Judge Sullivan that he erred when he said that a group of government employees, who were cited in the FBI agent's publicly-filed complaint wanted their story to be made public. Some didn't, it turned out.

Stevens, the former Alaska GOP senator, was convicted last fall of filing false disclosure reports to hide gifts from an oil-services contractor. He is appealing the conviction.

Ted Stevens

D'oh! Another Screwup By Stevens Prosecutors

Zachary Roth | February 6, 2009, 3:17PM

Those Ted Stevens prosecutors are just looking more and more clueless.

The Anchorage Daily News reports that William Welch, the head of the Justice Department's Public Integrity Section, wrote a letter to the judge January 30, admitting that he erred when he said last month that a group of government employees, who were cited in an FBI agent's publicly-filed complaint, alleging improprieties by government officials, "want their story to be made public."

In the complaint, the FBI agent, Chad Joy, had accused a fellow agent and prosecutors of violating FBI policy and fair-trial rules. But Welch has now acknowledged that not all of the employees had agreed to have their names released.

This latest screwup comes on the heels of another slip, in which prosecutors have gone back and forth on whether Joy meets the technical definition of a protected government whistleblower.

As the ADN puts it

:
"Initially, when prosecutors sought to keep the complaint secret, they said he was a protected whistle-blower. When they sought to make the complaint public, they said he wasn't.

The defense has also filed a complaint alleging that a female FBI agent on the case had an improper personal relationship with one of the key witnesses for the prosecution, former oil-services exec Bill Allen.

And even before Stevens, the former Alaska GOP senator, was found guilty in late October of concealing gifts from Allen on his Senate disclosure form -- a conviction he is appealing -- prosecutors were reprimanded by the judge for not turning over key evidence to the defense.

Stevens' defense team has already filed a motion that the charges be dismissed, on account of government misconduct. And in a new filing made yesterday, they went further, arguing that the government should be held in contempt.

"The government still does not get it. Over and over again, it has been caught red-handed making false representations to the Court and the defense," defense attorney Robert Cary wrote.

Ted Stevens

Reid: Free Ted Stevens!

Matt Berman | January 7, 2009, 11:21AM

Former senator Ted Stevens (yes, now actually former) is keeping up the fight against his guilty verdict -- and now Sen. Majority Leader Harry Reid has lent him a hand.

Reid told Politico that he believes Stevens shouldn't serve jail time.

My personal feeling, you guys, I don't know what good that [would do]... He was a real war hero too, you know. He's been punished enough.

Reid said he thinks Stevens was simply behind the curve of modern ethics standards in not disclosing the $250,000 in gifts he received from VECO CEO Bill Allen, saying of the famously internet-unsavvy Uncle Ted that "it's a different world we live in, and Stevens did not understand that."

Sentencing for Stevens had tentatively been scheduled for next month, but it's unlikely that he'll be sentenced any time soon. Last month, lawyers for Stevens asked for a new trial, claiming that the prosecution had presented false evidence and withheld information that could have helped the defense.

Ted Stevens

Stevens Witness: I Lied About Immunity Deal

Zachary Roth | November 21, 2008, 4:30PM

A witness who testified against Ted Stevens has said in a letter to the judge that he falsely denied on the stand that he had an immunity deal with prosecutors in exchange for his testimony.

The witness, David Anderson, a welder who worked on the Alaska senator's home, wrote in the letter that his testimony that there was no immunity agreement "is simply not true". And he wrote that prosecutors "instructed me on how to sugar coat [the immunity deal] and get it swept under the rug during the trial."

The letter was filed today by defense lawyers.

Stevens was convicted on seven counts of having lied on his Senate disclosure forms about gifts he received from an oil-services contractor. Earlier this month, he lost his bid for re-election to the Senate.

Late Update: Anderson's letter contains more eyebrow-raising allegations than we'd first noted. He writes: "There was a contract to have me murdered issued by Bill and Mark Allen."

According to a report on the blog AlaskaDispatch, Anderson is Bill Allen's nephew, and Mark Allen is Bill Allen's son. Anderson clashed with Mark Allen, and therefore Bill Allen, over a woman. To protect his family, both from Bill Allen and from unspecified future charges, Anderson testified against Stevens, he told AlaskaDispatch's Tony Hopfinger, who has written for Bloomberg News and Newsweek.

So obviously, this news is being driven by a lot of different agendas, which we don't yet know enough to evaluate. And the specific details of the Anderson-Allen dispute aren't necessarily relevant. But the key point is that if there's compelling evidence that Anderson gave false testimony, or that prosecutors encouraged him to testify falsely or in a misleading manner, Stevens' conviction could potentially be put in doubt.

We'll keep you posted as things become clearer...

Late Late Update: DOJ has responded to Anderson's claims. AP reports:

The Justice Department responded quickly, saying the government never made any agreement of immunity for Anderson or any of his family or friends. "Mr. Anderson's statement in his November 2008 letter is not true, and the court is aware that it is not true," government lawyers said.

...

[T]he Justice Department said Anderson told two FBI agents in an August 13 meeting that he knew there was no immunity agreement and that the March affidavit was false.

The government agreed not to make him testify against family members, but "Anderson knew that there had been no agreement relative to immunity or promises of immunity by the government as to anyone," the Justice Department said.

Alaska

Blogging Sen. Stevens Testimony

Kate Klonick | October 17, 2008, 12:05PM

Sen. Ted Stevens took the stand yesterday, along with his wife Catherine, to testify in his trial on seven counts of false statements.

He continues that testimony today, so we'll be bringing you context on relevant facts, quotes and happenings from what looks like it will be the final day of this historic trial of a sitting senator.

Morning testimony. . .12:01: One might call Uncle Ted a "traditionalist" after reading this quote on the power dynamic in his household.

From RollCall:

Ted Stevens testified that when Catherine agreed to take charge of the project, "I was happy about that" because she is generally much more concerned than he is about the maintenance and decoration of their homes.

"What goes on in the house is Catherine's business; what goes on outside is my business," he said.

Politico says Stevens read the jury an e-mail he sent to the man who produced architectural drawings for the renovation project in August 2000.

"Now I want you to give us a bill for your work," Stevens wrote to John Hess -- a VECO employee and one of the first witnesses for the defense, but never received a bill. "Under our Senate rules, I must pay you for what you have done," he added.

Direct continues . . .12:44 pm : Well the Stevens' defense has made it pretty clear -- their primary defense is throwing Mrs. Stevens under the bus:

"Who had the check book?" Sullivan asked his client.

"Catherine," Stevens said.

"Who got the bills?"

"Catherine," Stevens responded.

"Catherine maintained the checkbook?"

"She did," Stevens said. "She got all the bills and paid all the bills."

As you can see from the focus of the defense questions, they're looking to defend the senator on two fronts: 1) that he tried to pay his bills, even asking for them from the architect while citing Senate rules; and 2) that he didn't even know what was going on in the house anyway! That was women's work!

No Free Lunch Edition . . . 1:13 pm: This just in from the AP, Stevens wouldn't even let his buddies pick up the tab on lunch! Let alone hundreds of thousands in home renovations.

"I pay my bills wherever I am," Stevens said. "I don't let people buy my lunch or buy my dinner. Wherever I am, I pay my bills."

Sadly, Stevens also turned on the testimony of former VECO CEO Bill Allen -- who was one of his best friends until he decided to testify against Ted.

Stevens blames Allen, his one-time friend and drinking buddy, for adding freebies to the project without telling him. Stevens sat stonefaced Friday as he accused Allen of lying on the witness stand. Allen testified that Stevens knew he wasn't getting billed for everything and just wanted invoices to protect himself.

"That's just an absolute lie," Stevens said. "I heard it. It's an absolute lie."

Flashback to Catherine's testimony Edition . . .1:43pm: TPM Reader ML points out an interesting moment in Catherine's testimony yesterday:

Morris also questioned Mrs. Stevens about her husband's Senate staff walking their dogs, paying their credit card bills, cutting their grass and doing other personal work for her family.

"Sometimes," said Mrs. Stevens, who added that if they did, the staffers were paid. [emphasis ours.]

Hmmm . . . who does that remind you of?

Cross examination is coming Edition. . . 3:13pm: Roll Call is reporting that direct questioning will be wrapping up this afternoon and cross examination will probably start before they recess for the weekend. Disappointing that this won't be wrapped up by the end of the day.

Crocodile Tears Edition. . . 5:13pm : Apparently, even though Sen. Stevens and his attorneys haven't hesitated to sacrifice Catherine Stevens to the DOJ wolves, the seven-term senator still gets misty-eyed over her, Roll Call reports.

"I was happy that she was going to get a chance to be home" and to spend time with their daughter, Stevens said, referring to his wife's decision to leave work and its impact on their household finances. Fighting back tears, Stevens said that his wife had been traveling a great deal for her job with a foundation, and "she had worked awful hard. ... She deserved the rest."

Politico has some great color on the senators' cross examination, in which the prosecutor sharply questions Stevens' ignorance and passivity when it came to the home renovations.

"You were a lion of the Senate but you didn't know how to prevent another man from putting items in your house?" Morris asked.

"You're making a lot of assumptions that are unwarranted. There are no gifts there, ma'am," Stevens said.

Stevens is known for his temper and has even embraced that reputation, wearing Incredible Hulk ties on the Senate floor when he knows he has a tough debate ahead. He's not wearing any Hulk garb today.

Stevens, a former U.S. attorney before he served 35+ years in the Senate, got a little testy as questioning continued, deigning to offer his expertise.

"I think you better rephrase your question," he told Morris as she continued her questioning. "That question is tautological."

Things broke up around 4:45 pm. We'll be back on Monday bringing you the best in reporting on the final days of the Stevens' trial.

Ted Stevens

Stevens' Prosecution To Call One More Witness

Kate Klonick | October 9, 2008, 11:14AM

Looks like the government has another chance to redeem its bungled prosecution of Sen. Ted Stevens.

Judge Emmet Sullivan announced this morning that the prosecution will be able to call one more witness, Dave Anderson, a former VECO employee who worked on Stevens home renovations, the AP reports. The allowance should offset the judge's ruling yesterday that excluded a portion of VECO's records that reference Anderson work on Stevens' home. The judge also ruled he would be instructing the jury that the government knowingly used false evidence in its case.

The decision delays the defense's case, which was set to begin today. Former Secretary of State Colin Powell and Hawaii Sen. Daniel Inouye are expected to testify for the defense.

Late update: Anderson has been a character around Alaska scandal for a while.

According to Anchorage Daily News' coverage of his testimony, Anderson was working "10 hours a day, six days a week," on Stevens' renovations -- and so was contractor Robert Williams. Anderson's testimony compensates for the excluded evidence of VECO records.

Ted Stevens

Judge Throws Out Key Evidence in Stevens Trial

Zachary Roth | October 8, 2008, 6:46PM

The judge in the Ted Stevens trial today threw out two major pieces of evidence, after it was revealed that prosecutors failed to provide the defense with crucial information.

According to Politico:

Judge Sullivan is throwing out a portion of the business records from Veco Corp., whose former CEO, Bill Allen, allegedly spent $188,000 renovating Stevens' home in Girdwood, Alaska. Two former Veco employees, Rocky Williams and Dave Anderson, are on the company's records as having spent significant time working on Stevens' home in late 2000 and early 2001.

But prosecutors never presented testimony from Williams, who was suppose to be the foreman on the home project, and instead shepherded him out of Washington right before the trial started, all without informing Stevens' attorneys.

And Anderson told the grand jury that he was in Portland, Ore., not Alaska, in late 2000, when Veco's records have him as working on Stevens' home. Prosecutors knew that Anderson had told the grand jury that and did not tell the defense team.

So Judge Sullivan excluded the portion of Veco's records that reference Anderson and Williams' work on Stevens' home, and he will instruct the jury that the government knowingly used false evidence in its case.

Judge Sullivan will also exclude all evidence from a 1999 car swap between Allen and Stevens in which Stevens got a new Land Rover from Allen in return for a beat-up 1964 Mustang and some cash.

Prosecutors failed to turn over to Stevens' defense team a copy of the check which Allen used to pay for the Land Rover. Defense counsel alleged that they their case had been hurt when they cross-examined Allen over the transaction, which they only did because -- they asserted -- they didn't have Allen's original check.

Bill Allen

Bill Allen's Millions Focus of Cross Examination

Kate Klonick | October 7, 2008, 1:20PM

With the juicy audio recordings between Sen. Ted Stevens and former VECO CEO Bill Allen concluding Allen's direct testimony, the once-close-friend of the 84-year-old senator took the stand for cross examination.

From Roll Call:

Under cross-examination by Stevens' attorney Brendan Sullivan, Allen acknowledged that the week after he was first contacted by the FBI, he sold VECO for about $380 million to contracting giant CH2M Hill. He also acknowledged that his plea agreement with the government suggested that prosecutors would view his cooperation as VECO's cooperation.

About $70 million of the sale price was held back because of concerns about legal liability the company might have faced because of the ongoing investigation, as well as potential tax and environmental issues that are more routine in such sales, Allen said.

We already knew that the defense would be making this argument. Just a few weeks ago, they claimed that Allen's government cooperation would mean he received a windfall of $40 million from the company that bought Allen's oil pipeline company, VECO. The claim was disputed by the company itself in subsequent filings.

But, in general, Allen's soft fall from grace, despite guilty pleas on conspiracy and bribery have been well documented.

Ted Stevens

More in the Adventures of Bill and Ted

Kate Klonick | October 6, 2008, 3:49PM

Despite recent snafus, Sen. Ted Stevens' trial continues today, with tapes of phone conversations between Stevens and former VECO CEO Bill Allen being played for the jury.

"I think they're probably listening to this conversation right now," Stevens presciently says in one of the recordings.

"We might have to pay a fine and spend a little time in jail," he continues in the recordings from the fall of 2006, the AP reports. "I hope it doesn't come to that."

The friendship between Stevens and the former VECO CEO was laid out in Allen's testimony against the seven-term senator from Alaska last week. Allen himself pleaded guilty to three counts of bribery and conspiracy in 2007.

"Ted, I love you, you know," Allen said in one of the tapes, illustrating how close the two once were.

"Let's get through this and get back to our boot camps again," Stevens said, referring to trips the friends would take together, The Hill recounts from the trial today.

While seeming to contradict the 84-year-old senator's defense -- that he was unaware that he was not being billed for over $250,000 in gifts and home renovations -- many of the recordings are tinged with pathos given Allen's testimony against Stevens.

"Let's stick this thing out together, OK?" Stevens says during one conversation mentioned by the AP.

"I don't think we've done anything wrong," Stevens told Allen in another recorded conversation where he tried to cheer up his longtime friend and encourage him to have a positive attitude and to get some exercise, according to McClatchy. "I can't think of a thing of anything we've done that's wrong."

Late update: More highlights from the Stevens' audio bonanza, include multiple F-Bombs from the geriatric incumbent senator; a rundown of his sleep schedule and the lessons learned from Martha Stewart.

But don't take our word for it! Listen for yourself:

Ted Stevens Talks with Bill Allen, Fall 2006
Audio Exhibit 1

Audio Exhibit 2

Audio Exhibit 3

Ted Stevens

Stevens' Lawyers Move to Throw Out Trial. . . Again

Kate Klonick | October 6, 2008, 9:10AM

If the headline seems familiar, it should. Just last week, Sen. Ted Stevens' attorneys lost a motion for a mistrial. By our count, this is the fourth attempt by the defense to toss out the case against the seven-term senator, but we could have missed a few along the way.

From the AP:

"Until today, defense counsel have refrained from alleging intentional misconduct by the government," [Stevens'] lawyers wrote in court papers. "We can no longer do so in good conscience."

. . .The latest mid-trial motion to end the trial says the newly disclosed documents show Allen originally told investigators that he believed Stevens would have paid for work on a mountain cabin if billed -- proof, the defense says, that the senator never intended to hide anything.

Rather than turn over the first statement to the defense as required by rules of evidence, the government "intentionally procured from Allen a contradictory statement" and then "concealed its actions" from the court, the defense papers say.

Late update: It's important to note that the prosecution is stepping up to make sure their "human error" that led to last week's defense attempt for a mistrial, is being properly investigated. The government requested an internal probe with the Justice Deparment's internal investigators (Office of Professional Responsibility) to look into their delay in turning over FBI reports to opposing counsel.

Late late update: Judge Emmet Sullivan said the trial would go on today as planned, with the jury hearing recorded phone calls between Stevens and Allen. Sullivan ordered the prosecution to file a formal response by the end of the day in response to the defense's motion, the AP reports.

Ted Stevens

Bill And Ted's Excellent Adventure Bogus Journey

Kate Klonick | October 1, 2008, 5:58PM

The 26 year friendship of indicted Sen. Ted Stevens and former VECO CEO Bill Allen has been on display while Allen testifies as the prosecution's key witness in the sitting senator's trial.

Allen described his annual fishing trips (pictured at left) and visits with the senator, where they would walk and smoke cigars and drink wine "now and then."

"We really liked each other, you know?" Allen reminisced, yesterday. "Ted really worked hard. Ted loved Alaska and I loved Alaska."

Besides recounting his history with Stevens in his testimony Tuesday, Allen spent much of the afternoon detailing a transaction where he traded a new Land Rover for Stevens' 1964 Mustang convertible. The Land Rover was worth approximately $44,000 while Stevens' Mustang -- including a $5000 payment to Allen -- was worth a little over $32,000.

In their decades of friendship, Allen gave Stevens over $250,000 worth of gifts -- everything from grills to home renovations -- gifts that Stevens failed to include on his Senate disclosure forms. Stevens claims that he was unaware of all of the work that Allen was doing on his home, and that he never asked Allen for free work or favors.

This morning, the prosecution submitted thank-you notes from Stevens to Allen, in an attempt to prove that Stevens knew that he was receiving favors from Allen.

"You continue to amaze me, the way you can keep so many balls in the air at one time," Stevens wrote in an August 2000 note, the AP reports. "It was great to see you at the Bogart movie and I thank you for all that you are doing on the house."

Allen's testimony was cut short this afternoon when the judge recessed early to accommodate a juror's schedule. The trial will resume tomorrow with the prosecution expected to wrap up its case before Friday.

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

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.

Ted Stevens

Stevens Claims Smear Campaign by Prosecution

Kate Klonick | August 26, 2008, 11:01AM

Attorneys for Sen. Ted Stevens (R-AK) fought back Monday after prosecutors filed a discovery motion that hinted at possible quid pro quos between Stevens and VECO executives.

"The government wishes to smuggle in suggestions of bribery and corruption that it has not charged and cannot prove," Stevens' attorneys wrote in their motion. Stevens is charged with making false statements for failing to mention over $250,000 in gifts on his Senate disclosure forms -- not with taking bribes.

From the AP:

Prosecutors also want to present somewhat unrelated evidence that they believe shows the Alaska senator got a sweetheart condominium deal, his daughter got a discounted car and his son got a job from VECO.

In court documents filed Monday, Stevens suggested the Justice Department was making accusations haphazardly, hoping to damage his reputation at trial. Those accusations have nothing to do with the crime he's charged with, attorneys said.

"They are an obvious attempt to smear the Senator's character," defense attorneys wrote, adding later that the Justice Department was "continuing its assault on the senator's family."

Dick Cheney

Cheney Link to Stevens Case

Zachary Roth | August 25, 2008, 10:48AM

The corruption case against Sen. Ted Stevens (R-AK) is already yielding some interesting fruit.

Newsweek reported Saturday that, in a 2006 conversation secretly recorded by the FBI, Stevens and Bill Allen -- the oil-services executive who allegedly provided Stevens with $250,000 in financial gifts -- discussed how to get a pipeline bill through the Alaska legislature.

Stevens told Allen: "I'm gonna try to see if I can get some bigwigs from back here and say, 'Look ... you gotta get this done'." Two days later, Vice President Cheney took the unusual step of contacting Alaska lawmakers directly, urging them in a letter to "promptly enact" the legislation. Stevens confirmed to Newsweek that he had indeed asked Cheney to write the letter.

Newsweek notes that the former executive director of Cheney's energy task force had gone on to work as a lobbyist for BP, which would have built the pipeline. The magazine doesn't name the task force director, but it appears to be Andrew Lundquist. And it's worth pointing out that Lundquist -- who had worked as the Bush-Cheney campaign's energy expert in 2000, earning the nickname "Lightbulb" from the president -- has also worked as a top aide to Stevens.

Newsweek also reports that DOJ prosecutors did not include Cheney's letter in their motion and did not respond when the magazine asked why.

Alaska

Whatever Happened to the Man Who Brought Down Alaska?

Kate Klonick | August 18, 2008, 4:05PM

Former VECO CEO Bill Allen, the oil executive who orchestrated Sen. Ted Stevens' (R-AK) home renovations and whose testimony led to the indictment and conviction of a number of state legislators, has had a relatively soft fall from grace. Since testifying, little has been seen of Allen, whose sentencing on his May 2007 guilty plea has been continuously delayed as he remains free on a $10,000 unsecured bond.

As those connected to him fall to federal indictments, Allen is enjoying the windfall from the sale of steeped-in-corruption-VECO, for $146 million. Thanks to a carefully negotiated plea deal, two-thirds of that profit went to Allen and his three children. Oh, and did we mention he has no passport or travel restrictions?

According to the Anchorage Daily News, just seven months after his plea deal, Allen and two of his children bought a small jet, with an estimated value of $2 million. The plane has been flying all over the west, notably landing at airports near New Mexico racetracks, where all of the Allen children own licensed racehorses. And though he still owns his half-million dollar Anchorage home, Allen is reportedly spending the majority of his time in New Mexico:

Dick Cappellucci, a New Mexico licensed horse trainer from El Paso, Tex., who used to work for Allen's son, Mark Allen, and once owned a race horse with Mark, said Bill Allen is living on his son's Double Eagle Ranch. The county lists the ranch as a 46-acre property.

Mark Allen himself "is building a fancy, fancy place over there," Cappellucci said.

. . . Recently, the Allens have been showing up big at horse sales, Cappellucci said. "They've spent a lot of money in the horse business."

"A lot of money in the horse business," might be an understatement. According to the ADN, Mark Allen spent $726,000 for eight horses shortly before the sale of VECO.

But all is not as rosy as it might seem for Allen and Co. and their soft money bed at the race track. According to Bob Bundy, Allen's defense lawyer, Allen is "just kind of marking time. . . waiting for the axe to fall. . . it's not a very happy situation."

John Cowdery

Cowdery Pleads Not Guilty

Kate Klonick | August 11, 2008, 6:59PM

It's hard to believe it's been a month since Alaska State Senator John Cowdery (R) was indicted on charges of bribery and corruption.

He proclaimed his innocence at the time, and now, after getting his arraignment postponed, he's finally made his plea official.

From the Anchorage Daily News:

An Anchorage state senator with ties to disgraced oil field services company Veco Corp. pleaded not guilty to federal counts of bribery and conspiracy. John Cowdery, 78, was arraigned Monday in U.S. District Court. His trial was set for Oct. 6.

He was arraigned on charges of conspiring to bribe a fellow state senator with $25,000 in Veco money.

If the name VECO sounds familiar, it should. It's the same oil field services company behind the recent indictment of Sen. Ted Stevens (R-AK).

VECO's a gravy train that a number of Alaskan politicians rode straight to jail.

Alaska

BP Declines to Discuss Allegations That It Helped Cover Cost of Stevens' Home Renovations

Kate Klonick | August 4, 2008, 12:04PM

BP appeared unfazed by allegations that it may have helped cover costs related to Sen. Ted Stevens' (R-AK) home renovations, and declined to say whether they were investigating the matter, or discuss it in any way with TPMmuckraker.

"We have done a significant amount of business with VECO over the years. They were one of the largest oil contractors in the state, and we don't discuss our business with our contractors," a BP press representative said this morning.

As we previously reported, the Anchorage Daily News published a Sunday expose of two former VECO employees who oversaw construction on Stevens' home. One of those employees, David Anderson, claimed that a VECO client, BP Exploration, had "possibly" borne the costs of some of the Stevens' renovations.

But curiously, Anderson himself backpeddled on his statements in a second story, published late last night, by the ADN:

Last week, Anderson said some of the labor charges were passed on to an oil company that was paying Veco to build a North Slope module at the time in its shop, probably BP, though not necessarily with the knowledge of the oil company. He affirmed that Saturday.

But on Sunday, Anderson said he was mistaken and only knew for sure that Veco covered the costs, not that they were passed through to a Veco client. That accounting took place in a Veco office outside the scope of his job, he said Sunday.

Stevens was indicted last week on seven counts of false statements, stemming from his failure to disclose the $250,000 worth of renovations made to his home by the oil company VECO. He pleaded not guilty at his arraignment, and his trial is scheduled for September 24, where Anderson may testify.

Ted Stevens

VECO Employees Shed Light on Stevens' Renovations

Kate Klonick | August 4, 2008, 9:43AM

Two VECO employees shed new light on who was behind the idea to renovate the home of Sen. Ted Stevens (R-AK), the Anchorage Daily News reported yesterday.

The two employees, David Anderson, the nephew of former VECO CEO Bill Allen, and Robert "Rocky" Williams, a trusted VECO worker, told the ADN that they met with Allen over drinks at the Alyeska Prince Hotel in the spring of 1999 or 2000. It was during this meeting that the three men first discussed plans to renovate the Stevens' home.

Stevens was indicted last week on seven counts of false statements, stemming from his failure to disclose the $250,000 worth of renovations made to his home by the oil company VECO.

Anderson, who had a falling out with Allen over the construction and once claimed that his uncle threatened his life, told the ADN that there were numerous projects that Stevens was not billed for -- and Anderson would know, since he handled the billing:

Among the electricians' tasks was to wire up a switch for a generator that would automatically turn on whenever the power went out, Anderson said. Allen told him to buy an oversized power plant to install in the back yard. It was so heavy that Anderson had to order in a Veco crane from the shop to lift it over the garage from the driveway and set it in place in the back.

It was another gift that Stevens got for free, Anderson said. "I know, because I ran the paperwork -- I did all the purchase orders."

The generator is not mentioned in the indictment.

Anderson and Williams worked closely with Stevens' wife, Catherine Stevens, who had a say over much of the renovations:

Williams said Catherine Stevens wanted to put her touch on the place, which she and Stevens had bought as a 12-year-old house in 1983.

"So she picked out the carpet, she picked out the tile," Williams said. "She made it her place and that was what Ted wanted . . ."

In addition to shedding light on the work done to the Stevens' home, the ADN also speculates about the likely identities of two of the three anonymous parties in the Stevens' indictment, stating that Person A is Bob Persons, a local business owner who diligently oversaw the renovations, and Company A is Christensen Builders, a local construction company owned by Augie Paone, already known to have done work on the Girdwood chalet.

Anderson initially told the ADN that the "at least some" of the costs for the renovation were passed on to VECO clients, like "BP Exploration." Late yesterday, ADN ran a second story, saying that Anderson backed away from those statements.

Ted Stevens

September Trial Date Set For Sen. Ted Stevens

Andrew Tilghman | July 31, 2008, 4:28PM

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.

Ted Stevens

The Ted Stevens Story On Today's TPMtv

Andrew Tilghman | July 30, 2008, 5:10PM

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.

Ted Stevens

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

Andrew Tilghman | July 29, 2008, 5:31PM

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.

Ted Stevens

Stevens Declares Innocence in Public Statement

Kate Klonick | July 29, 2008, 4:41PM

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.

Ted Stevens

Stevens Resigns from Two Committees

Kate Klonick | July 29, 2008, 4:30PM

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.

Ted Stevens

Financial Disclosure Forms at Center of Stevens' False Statements

Kate Klonick | July 29, 2008, 3:23PM

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.

Ted Stevens

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

Andrew Tilghman | July 29, 2008, 2:44PM

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."

Ted Stevens

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

Kate Klonick | July 29, 2008, 12:48PM

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.

Alaska

Ben and Ted's Excellent Investigations

Kate Klonick | July 14, 2008, 12:41PM

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.

Alaska

Indicted AK State Sen. Cowdery Proclaims His Innocence

Kate Klonick | July 11, 2008, 4:28PM

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.

Don Olson

Olson Has Been Cooperating with FBI For a Year

Kate Klonick | July 11, 2008, 11:42AM

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.

Don Olson

State Sen. Don Olson Is Mystery "Senator A"

Kate Klonick | July 10, 2008, 5:56PM

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.

Alaska

Another State Legislator Indicted in Alaska Corruption Probe

Kate Klonick | July 10, 2008, 1:36PM

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.

Vic Kohring

Corrupt AK Politician Waves to Commuters Before Being Hauled Off to Fed. Pen.

Kate Klonick | June 30, 2008, 2:02PM

Convicted former-State Rep. Vic Kohring didn't seem to be the least bit fazed that today is his last day of freedom for 3 and 1/2 years.

Before turning himself over to federal marshals, Kohring spent the morning standing next to a home-made sign on the Glenn Highway in Alaska, waving to pedestrians and sipping hot chocolate (picture at left):

He said he's not scared of going to prison, but has been Googling the Southern California facility he'll live in for up to 3 and a half years. He could rattle off the population of the nearby town and the high temperature last week (103 degrees).

Said he might write an autobiography while in jail, call it "Absolutely Innocent." Plans to read a lot. Write a lot of letters.

. . . He said he spent the weekend with his family, and has been doing things like stopping mail to his mail box and closing his bank account. Packing.

"It's almost like going away on a vacation. A .... Government sponsored vacation," he said.

Kohring was convicted in November 2007 and sentenced last month for accepting bribes to advocate a natural gas pipeline. His trial was central in bringing Sen. Ted Stevens (R-AK) into the VECO scandal, with the testimony of VECO CEO Bill Allen. Allen testified that he was blackmailed by his nephew, who was doing home renovations for Stevens, which were paid for in part by VECO.

[Late Update]: The ADN has obliged us with some great video from Kohring's roadside debacle and a heckler who stopped by to tell him to "give it up and go prison". . . which he does at the end of the clip. Enjoy.

Veco

Alaska: Gov's Aide Pleads Guilty And The Finger Points... Where?

Paul Kiel | March 4, 2008, 2:19PM

As David noted over at TPM last night, James Clark, the former chief of staff to ex-Gov. Frank Murkowski (father of current senator, Lisa Murkowski) will plead guilty today to a conspiracy charge related to the sprawling Veco investigation.

The main thrust is this: in the 2006 election, Murkowski was Veco's man. That's because he supported the construction of a trans-Alaska gas pipeline that would be a major boon to Veco, an oilfield contractor. Never ungrateful, Veco set up a deal with Clark to pay $68,550 for two polls and a political consultant. The arrangement was kept secret, breaking campaign finance laws and raising the question of whether the money amounted to a bribe.

One of the pollsters involved has been identified: Anchorage pollster David Dittman confirmed to The Anchorage Daily News that he's "polling company A" in the plea documents. The others involved, a pollster and consultant who are both based outside Alaska, have not been identified yet. And it's quite possible that this was not a one-time deal, since funding polls was something of a habit for Veco.

Clark's plea deal makes it clear that he will be at prosecutors' beck and call for the next several months -- wherever they want him to testify, whoever they want him to testify against, he'll be there and required to tell them everything.

But who, exactly, he might implicate is unclear. Will it be Clark's former boss Frank Murkowski? Clark, in a statement released to the press, indicates that it will not -- well, at least for the Veco-funded polls. He apologized to Murkowski for breaking the law under his nose and regretted that "some people will unfairly attribute what I have done to him."

Read more »

Ted Stevens

Corrupt Oil Exec Focus of Reopened Underage Sex Case

Paul Kiel | February 4, 2008, 5:26PM

Yeesh. There's muck and then there's Alaskan muck.

Bill Allen, the former CEO of Veco, has been the government's star witness in a number of corruption cases against state lawmakers, and he would surely be at the heart of any case against Sen. Ted Stevens (R-AK) and his son Ben, should the current grand jury investigation result in an indictment. So a checkered past would be sure to come up.

This would surely qualify. The Anchorage Daily News has the whole sordid tale, and I won't recount it here. Suffice it to say that the central allegation concerns whether Allen had a sexual relationship with a crack-addicted 14 year-old named Bambi Tyree back in the mid-90s; Allen is said to have provided a stream of gifts to her and her family, ranging from a car to $5,000. The main fact witness for that allegation seems to be another drug addict who was Tyree's boyfriend when she was 18 (he was 36). It's not clear what Tyree herself says about it. And Allen's lawyer denies that there was ever any such relationship.

In any case, Anchorage police began investigating anew late last year. A prior investigation was dropped in 2004 at the request of federal prosecutors, who were investigating a broader sex and drug ring. Why has it started again? "To make sure there's nothing else out there that we're missing," says one police captain. Somehow I've gotta believe it's more complicated than that.