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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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."

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.

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."

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.

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.

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.

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.

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.

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.

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.

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.

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.