Feds: Alaska Sen. Stevens got favors, VECO got key ally
Originally published Friday, August 15, 2008 at 7:30 a.m.
Updated Friday, August 15, 2008 at 1:16 p.m.
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Stumble It!WASHINGTON — FBI agents spent years investigating Sen. Ted Stevens. They read his e-mails, searched his home and taped his phone conversations with his friends.
This week, the Justice Department offered its first public glimpse at what it uncovered: a direct line of communication from a corrupt Alaska oil contractor to one of the nation’s most powerful senators. When VECO Corp. executives needed help securing business, winning grants or navigating the bureaucracy, they called Stevens.
And when Stevens needed a new generator for his house, a car for his daughter or a job for his son, prosecutors say he called VECO, the same company that oversaw an extensive renovation project on his home.
The Justice Department didn’t bring charges against Stevens for any of that, but they want jurors to see the evidence. Stevens goes on trial next month, not for bribery but for concealing the renovation project and other gifts on Senate financial disclosure forms.
Stevens, the longest-serving Republican senator, is in the midst of an unusually contentious re-election campaign. He says the Justice Department is using innuendo to accuse him of bribery without having to charge it.
Prosecutors argue that, with each transaction and conversation, they add to a mosaic revealing a senator working behind the scenes with friends and favored contractors and hiding his deals from Congress.
In court documents filed Thursday night, prosecutors laid out a series of things they want to discuss at trial, including the senator’s help pushing oil-friendly legislation in Alaska and a 2001 condo deal in which Stevens allegedly parlayed a $5,000 investment into a $103,000 profit in a matter of months.
The oil legislation has become the cornerstone of the government’s investigation. Two VECO executives, founder Bill Allen and vice president Rick Smith, have pleaded guilty to bribing sympathetic legislators with cash, jobs and gifts to push for a state oil tax deal and construction of a natural gas pipeline. Working with the FBI, the corrupt businessmen helped send several lawmakers and political figures to prison.
When the gas pipeline project stalled in the state legislature in 2006, Stevens allegedly offered to use his Washington connections to push it forward.
“I’m gonna try to see if I can get some bigwigs from back here to go up there and say, ’Look, uh, you just gotta make up your mind, you gotta get this done,”’ Stevens told Allen in a phone call, according to court documents.
Days later, federal energy regulators issued a report saying that delays could cripple the project’s future. Stevens also traveled to Alaska to help prod lawmakers into acting.
Stevens has denied any wrongdoing and hopes an unusually speedy trial will clear his name before Election Day. His supporters say he has backed Alaska development and championed pro-oil legislation for years, long before VECO came on the scene.
Prosecutors also plan to present evidence of an unusual Florida condo deal. They say Stevens bought the $360,000 condo in a complex that was being built. Rather than putting down a 10 percent deposit, prosecutors say he put down only $5,000 and his friend, a partner in the development company, kicked in the rest. Six months later, the development company allegedly bought back the condo for $515,000, giving Stevens a healthy profit even after he paid back his friend for the down payment.
Federal rules restrict how prosecutors can use evidence that don’t result in criminal charges. Prosecutors say it bolsters their case that Stevens hid his financial deals on Senate forms, since he didn’t disclose the money his friend gave him to buy the condo.
Prosecutors plan to play taped phone calls that they believe reveal a long-standing relationship of favors between Stevens and Allen. In one call, a lobbyist called Allen, apparently on Stevens’ behalf, seeking a job for the senator’s son.
“I’m not sure why he mentioned it to me, but he asked me to, I think, find out if you had any business contacts in Phoenix with respect to his son,” the unidentified lobbyist said, according to court documents.
Allen came through and hired Stevens’ son, prosecutors said. The company also hired his grandson at the senator’s request, according to the Justice Department.
Finally, prosecutors say they want to present evidence that Stevens may have believed he violated the law. After learning that a friend had been subpoenaed to testify before a Washington grand jury investigating the senator last year, Stevens allegedly sent him two e-mails.
“I hope we can work something out to make sure you aren’t led astray on this occasion,” Stevens allegedly wrote in the first, following up shortly with, “don’t answer questions you don’t KNOW the answers to.”
Community Discussion
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Imagine that! Stephens pushing for a natural gas pipeline.
I do have a question on one thing; he says that he paid every bill presented to him and part of the accusation is that he got discounted work and freebies, how do they plan to show that Senator Stevens KNEW that the prices where discounted and did not show the freebies? The burden of proof has got to show that he knowingly committed a crime, saying he did it during an election is politics. Proving that he KNOWINGLY committed a crime is much harder to do than get some bad publicity every day on issues that have not been proven in a court of law goes against our own set of values we use to judge ourselves.
elieff- no doubt, besides looking out for our interest's with the Natural Gas, what was he thinking? Quit doing your job and start protecting yourself man, they are throwing punches!
I know a popular theme through Stevens' debacle has been how terribly he's being persecuted by the Justice Dept., FBI, etc, as though there is some vast conspiracy in D.C. to undermine his credibility. It's worth noting this is being done not under a Democratic administration as one might be lead to surmise by these outpourings of angst but by a Republican administration that is not newly in office but rather has occupied (most tragically for our nation) the presidency for almost 8 years, now. As we have seen in the trial of Scooter Libby, Karl Rove's escapades, and the machinations of Dick Cheney the present regime is quite capable of playing the most underhanded tricks and committing illegalities with a flagrant disregard for law such as we have not seen since yet another infamous Republican, Tricky Dick Nixon. So why, given the de facto ultimate boss of the JOD and FBI being the Little Shrub, are folks so quick to play the politics card? (And if you don't think Bush has considerable influence over the actions of these and other D.C. departments then I have a Bridge to Nowhere I'd be glad to sell you!)
It's no wonder why they probably won't move the trial to Alaska...the case is already being tried in the court of public opinion...how can you find an unbiased jury when all of the news media is laying out everything in advance. Sounds more and more like a witch-hunt the farther this goes. Should be interesting to see how it plays out.
Come on now JB, do you really think Ted had know idea what what going on. Heaven forbid. If he didn't than it deffinately is time for him to step down. Time for our politicians to come down off their pedistools and live in the real world of us tax payers. He is just the tip of the iceburg. Politicians, BEWARE, we are fed up with corruption and rediculous pork barreling
"Constituents often make such requests of lawmakers, and prosecutors apparently could not prove that Stevens did any corrupt favors for VECO. Stevens has backed oil industry legislation for years, well before the VECO case. Stevens says he didn't do anything special for VECO."
So how is this evidence of anything? This case should be thrown out. Any pipeline built in that era would have benefited VECO. A pipeline would benefit the entire country. Given that state legislature wrangling over how much money they could take from producers was the catalyst for endless delay (and ultimately for the failure) of pipeline development, it was appropriate for Stevens to enlist any help he could get from the feds to apply pressure.
Stevens is being used as a sacrificial lamb by Republicans so they can show how tough they are on "corruption". This is why the era of titans like Stevens is over. These actions guarantee that the best and brightest will never step forward to govern this country. It's like herding cats. All we'll get is empty sophomoric arguments in suits like Barry Obama and Sarah Palin. Talk 20 minutes and say nothing. The fence-sitting moral equivalency era of the namby-pamby left has fully taken over. Anyone taking a firm stand for the security and stability of this once-great nation is branded a bigot.
Sad days.
The Clinton "regime" was far more corrupt then any I have known.
That bridge to nowhere was to go to the Ketchikan airport, you know, the one that has no road going to it.
The only tragedy here is mass ignorance.
I say Allen and sons should take all the credit for VECO and go down hard.
"how do they plan to show that Senator Stevens KNEW that the prices where discounted and did not show the freebies?"
When someone adds a full floor to your house, and doesn't bill you, I'd think that was a pretty obvious freebie.
I am amazed (though I shouldn't be) at Stevens's arrogance, declaring himself above the FBI. As if someone talking to an aid interferes with him performing legislative business. The rule he's trying to use is designed to keep the FBI from determining what laws get passed by detaining him from key votes, not to prevent them from finding out his about law breaking shenanigans.
A Scandal A Day Keeps Impeachment Away...
The Just-Ice Dept. is chewing on Teds leg just to create a deadend diversion. There's plenty of other stuff that will never see the light of day that Ted has been involved with inside secret senate committees. But Ted getting an extra gallon of gravy from his pals back home is inconsequential in comparison, and Bu$h will pardon Ted anyways while they both collect their Platinum Retirement Plans from the Federal Trough. This investigation is just a theatrical snipe-hunt...
..like the Magician saying to the audience,
"Now keep your eyes on my right hand.."
Check the Anchorage Daily News, they have more about the evidence that Fairbanks does seem to want to publish. You may want to hold your opinion until you see all the evidence, not just what the DNM sees fit to print.
I also paid to VECO every bill for that mansion that I received! There is another story about selling a Florida condo for $170,000 after an investment of $5000. Our guys sure like Florida. Time to just resign.
Hey FreeDarfur, pull your head out of your ass. The ADN has a reporter in Washington DC; The News-Miner doesn't. The difference is the DNM has to rely on Associated Press stories and reporters for anything that comes out of DC.
You and all the other oh-so-enlightened pundits on here should get a grasp of how wire services and newspapers operate before spouting off your mouths that the DNM isn't publishing everything it should.
roadtrip: 'The Clinton "regime" was far more corrupt then any I have known... The only tragedy here is mass ignorance.'
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Oh, the irony...
Seems me that the timing of the publication if this evidence and the forecoming trial are more for Steven's benefit so he can get his presidential pardon once he is convicted, not due to any Democratic effort to get his seat. Stevens should be thankful that this came out now instead after Obama becomes president, cause he would surely spend some time in the crowbar hotel then. He needs to quit worrying about getting re-elected, something that he has no chance of doing, and more time keeping himself from spending the rest of his life in jail...
Franus- My belief will come from all the facts being brought to light during a fair trail, not the court of public opinion that will most likely cause an election to be tainted instead of being led by issues.
Just remember, when Uncle Ted is gone, our Great State will suffer. There is no two ways about.
uh...may I revise? Ther ARE no two ways about IT.
Sorry, may I revise? THERE ARE no two ways about it. Uncle Ted has brought many special projects and funding to the state.
I have an idea. Let's move the trial to Eielson. Then only the Media and the president can attend.
And to add......I'm a pretty strong social liberal......it's just reality. After Ted is gone, no senator or representative will have the clout and influence for the State of Alaska that he posseses. At least not for fourty years. That is my entire lifetime. Wow. Re-elect Ted Stevens.
Sorry, got here too late..
JB,
I think Ted will be found innocent because he can't remember what he did. Remember the favorite line in politics? "I do not recall that".
Seems that’s the only line you need to know these days if you are caught doing something you shouldn’t. Considering the last couple of years when Ted seems to be in a confused state on T.V., it appears he may have a bit of dementia. I'm not the only one that has noticed this. Many people have mentioned this fact many, many times. If he can't remember doing anything wrong than he MUST be innocent! It’s very hard to prove anything beyond "reasonable doubt" if the individual can't remember it. I expect this to be difficult to prosecute if he maintains that he “paid every bill he was presented with. It could be a completely true statement. If he knew he was getting more than he paid for, how will they prove it? He can simply plead ignorance and that he had no idea how much things cost. Personally, I think he knew very well what was happening. It’s very easy to play dumb when it’s to your advantage. Honestly, if he didn’t know he was getting more than he paid for, that makes him pretty stupid. If he did know what he was getting and did it anyway, that makes him a crook. So, which way is it? Hmmmm…., maybe stupid crook? You make the call.
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