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With each· plan came complaints about backroom deals.
Push for private prison was downfall
GUILTY PLEA: house official was accused in conspiracy scheme.
By TOM KIZZIA
tkizzia@adn.com
(08/12/0800:06: 10)
An political battle over private prisons in Alaska kept the state's jai!-building efforts tied in knots for a
decade, ending only in 2005 after complaints of lobbying helped turn legislative sentiment against the
idea.
A driVing force for privatizing prisons throughout that time was Bill Weimar, the former halfway house official who
pleaded guilty Monday in U.S. District Court to conspiring to make illegal payments to a legislative candidate in
2004.
Weimar was the principal spokesman for the first two private-prison proposals to surface in the 1990s, but faded
into the background after selli.n'g his halfway houses in 1998 to Cornell Corrections, a national prison company
based in Houston. @
Even as late as the summer of 2004, however, when the private prison idea was on its last legs, Weimar held a
substantial interest in the deal, standing to make $5.5 million if a private prison was ever built, according to the
federal charging documents filed Monday.
Among Weimar's private-prison partners,. at least for much of the time he was pushing the idea: Veco Corp..
Resorting both to raw political mu?cle and to high-flown sentiments about saving money and bringing Native
prisoners home, backers of the private prisons won legislative support for successive plans aimed at Anchorage,
Delta Junction, Kenai and Whittier. Two prison deals were approved, and two others made it through the state
House. Competing proposals to build state-run facilities were shoved aside.
But each private plan eventually died, falling victim to local opposition, resistance from prison guard unions and
skepticism from Republica!1 and Democratic governors. .
Meanwhile the number of state prisoners shipped to the Lower 48 because of inadequate space here grew to
more than 800. A new 1,500'-bed prison now being built in the Mat-Su Borough is intended to bring
many of those inmates back to Alaska.
Through the years, debate centered on whether inmates could be housed reliably and cheaply in a facility
designed and run by a for-profit firm. The stakes were high: a 25-year prison deal, worth $1 billion, wquld have
been the largest state-private contract in Alaska history. FBI _Stevens-2006
PARTNERS INCLUDED VECO
Corrections Group North, the original joint venture pushing a private deal, included not only Cornell
and Weimar's company, Allvest, but the well-connected oil field services and construction firm Veco. Some of _
Juneau's top lobbyists worked for the cause, and they had strong advocates in the Legislature.
Among the elected leaders were the House Finance chairman, Rep. Eldon Mulder, R-Anchorage, whose then-wife
worked with Cornell lobbyist Joe Hayes, and former state Sen. Jerry Ward, wh() had ties to the Kenai Natives
Association, a Cornell partner. Ward's real estate firm managed pull tab parlors for the Kenai Native group.

"Wnat I see, over a!1d over,-is-repeated sole-sourcei pre-arranged
l
heavy-money deals that go to specific
.. u It's been a clean, competitive proposal," Rep. Eric Croft, !?-Anchorage, complained in a (2.
2004 "We to see somebody indiCted and imprisoned over this-series of
.. V . V
.,1.,
The first proposed private prison would have been built on Veco-owned land in South Anchorage. A contract was
approved by the House in 1997, but with a Senate vote pending the idea was withdrawn on the eve of a citywide
vote.
Anchorage voters went ahead to reject the idea'by a 2-1 margin -- what one AS,sembly member called "driving a
nail in the coffin."
The idea quickly rose again, with'help from'Ward, who put together. a plan for facilities in the Mat-Su and
Seward. The plan was publicly praised by Weimar, but was soon replaced by the idea of locating a private prison
at the mothballed Fort Greely near Delta Junction.
A deal with Allvest was approved in 1998, both by local voters and then the Legislature, But after Weimar
brought Cornell into the consortium that year, a change of sentiment in Delta Junction upended the contract. The
prison companies sued and won a settlement of $1.1 million.
LAST STAND IN WHITTIER
The prison backers bounced back, striking a deal with Kenai Natives Association and taking it to the Kenai
Peninsula Borough. The borough assembly invited proposals from other firms. Corrections Group North finished
second in the bidding, but was bumped to first on the strength of its proposed Native-owned location and its
political expertise.
The legislature approved th'e Kenai project in May 2001, but once again local opposition was rising. The borough
assembly decided to seek voter and when the project lost by a 3-1 ratio the plan died.
a brief dalliance in Wrangell, private-prison made its last stand in The isolated Prince
William Sound port jumped on board within six weeks of the Kenai vote. But momentum in Juneau was beginning
to slacken. For three legislative sessions the private prison issue was debated without a decision.
By the summer of 2004, Veco was out of the consortium and the Whjttier plan was limping alo,ng. That's when,
according to the charges he pleaaed guilty to on Monday, Weimar made illegal payments to a legislative
candidate in return for th'e candidate supporting the project. The effort failed, and in March 2005 Whittier
announced It was done \:'lith. the
Cornell continued with its halfway houses in Alaska but said it was no longer .interested in pursuing a private
prison in Alaska.
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FBI - Stevens-2007
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Cowdery pleads not guilty
CHARGES: Lawmaker's attorney says indictment a 'mistake.'
By SEAN COCKERHAM
scockerham@adn.com
(08/12/0802:12:32)
Anchorage state Sen, John Cowdery pleaded not guilty to federal corruption charges Monday after his lawyer
wheeled him into court in a wheelchair. -
U.S. marshals fingerprinted Cowdery and took his passport, and a magistrate allowed him to go free on $5,000
bond. U.S. District Court Judge Ralph Beistline will preside over Cowdery's trial, which is set for Oct. 6 in
Anchorage.
The 78-year-old Cowdery faces a maximum of 15 years ·in federal prison if convicted on the two corruption
charges. He is accused of scheming executives of Veco Corp. to try to buy the vote of a fel!ow state senator,
Nome Democrat Donny Olson, in order to keep state oil taxes down.
Olson has not been charged. He says he didn't get anyJhing from Veco and didn't do its bidding.
Cowdery said little in court Monday. Both he and his attorney, Kevin fitzgerald, declined to speak to reporters.
Fitzgerald told the magistrate that Cowdery continues to be employed by the state of Alaska as a legislator; He is
not running for re-election this fall. .
Cowdery hesitated before replying when Magistrate John Roberts asked his age. Cowdery, who suffers from
kidney problems, also looked over the'court's list of medIcations he's' on.
"Maybe that's all I'm taking, my wife knows more than I do," he told the magistrate.
Cowdery's Wife, Juanita, observed the arraignment from the public gallery. She was expressionless.
Three former Alaska state legislators have already been convicted and sentenced as part of the broa9 FBI
<;orruption probe into state politics. All of them pleaded not guilty and went to trial.
Federal prosecutor Joseph Bottini said in court he could turn over "voluminous" eVidence to the' defense this
week. He said Cowdery's lawyer first needs to give prosecutors a 750-gigabyte portable computer hard drive and
that it will take 24 hours to upload all the material. .
Prosecutors are expected to use FBI audio and video recordings .as evidence against Cowdery, just as in the
previous corruption trials of state legislators.
FBI - Stevens-2008
Former Veco executives Bill Allen and Rick Smith have pleaded guilty to bribing legislators to push through the
tax rate favored by oil companies that operate on the North Slope. They said in court papers that Cowdery was
part of the conspiracy.
Cowdery's lawyer, Fitzgerald, has said the government misinterpreted comments made by Cowdery and that tne
indictment "will be exposed for the mistake it is."
Cowdery, until recently, was one of the most powerful figures of the bipartisan state Senate majority, which
made him the rules chair, a position that gave him clout over which bills made it to the floor for a vote. Cowdery
resigned that chairmanship this spring.
He stepped down as head of the Legislative Council, which oversees administrative business of the Legislature,
affer tiis ind!ctment last month; _ ..oJf._ ltl1 .. q r;>
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trial belongs in Washington, prosecutors argue
VENUE: The jury can view photos rather than tou,r'his Girdwood home, they say.
By ERIKA BOLSTAD
ebolstad@adn.com
(08/12/0801:59:15)
Sen. Ted Stevens' trial should stay in'Washington, federal prosecutors insisted in papers fil,ed Monday, arguing
thafhearing.it in Alaska while the 84-year-old Republican campaigns for reelection could taint the home state
j!Jry pool.
They also argued that, fundamentally, the case against Stevens is based in the nation's capital. He faces seven
of knowingly taking home repairs and gifts worth more than $250,000 from the oil services
company Veco Corp. 'and failing to report them on his annual U.S. Senate disclosure forms from 2001 through
2006.
"Simply put, this is a case about a scheme to conceal, largely through the submission of false ·financi.al disclosure
forms to the United States Senate," Justice Department prosecutors wrote in a motion filed Monday afternoon.
The finalJcial ,disclosure forms were "created, reviewed, signed and filed in the District of Columbia, and a
substantial portion of Stevens' scheme'to conceal occurred'in-or around the',District of Columbia:'
U.S. District Court Judge Emmet Sullivan is scheduled to. hear the change-of-venue motion Aug. 20. Last week in
court, Sullivan promised the trial would be "fast but ... fair," to accommodate'Stevens' election schedule, and
" said he hasn't prejudged the senator's requ.est But SuJlivan already h,as plans to begin
. jury selection in Washington, D.C., on Sept. 22. The trial itself is set to b'egin two days later. '--
Stevens' lawyers have argued that most of the witnesses in the case are in Alaska. They also ar:gued that jurors'
should see Stevens' Girdwood'home, where Veco employees, inclUding CEO Bill Allen, oversaw renovations in
2000 that doubled it in'slze. .
though"his lawyers said last week they're concerned that Stevens be able to continue campaigning
. pefore and trlat Stevens, who lias tielcnl1e office since 1968,faces six Re'publican' challengers'in the
Aug. 26 primary moving on to the Nov. 4 general
WILL GAMPAIGNING TAINT :JURORS?
Last week, his lawyers said that if the trial remains in Washington, he would have "a minimal opportunity to
personally participate in the elec\oral process that will decide his professional future."
. .
But prosecutors said Monday that was a "substantial factor weighing heavily against transfer."
FBI - Stevens-2009
Since his July 31 arraignment, the senator has been traveling all over Alaska and· participating in campaign rallies
where he has "vocally proclaimed his innocence of the crimes charged' against him," prosecutors wrote in their'
motion.
Those claims have been Widely, rep'orted In the media, prosecutors said, and it's likely that.'Stevefls 'wilr"tontinlie
to offer explanations and characterizations of the factual and legal ,issues in the
That has consequences, prosecutors argued, especially if Stevens continues to campaign. during the trial. It has
potentia) to ta,int, the jury pool, but also could require that be sequestered and barred from TV, radio and
newspapers during the trial. Apart from the trial, that could limit participation in the 2008 electoral
process as well, prosecutors argued.
also downplayed the. concerns Stevens' lawyers have expressed about transferring witnesses and evidence
'from __-_' _ _ ' L-t11;t.-A-,J"-,r 3b'20 - -V'1 ;;.,1Q( <£-
42 OF MATERIAL Q <:;!..
Wit,nesses cal"'feasily travel to Washington, D.C., the prosecutors argued, and nearly all of the evidence "will be
rendereq..in an format." There are 42 boxes of materials provided by Stevel1s to the government, the
motion noted, but those are in Washington.
For the same reasons, there's no need for a jury to see the house, prosecutors said. For one, the evidence will
include more than 1,000 high-resolution digital photos of both the Interior and exterior, they said in their motion.
"The Girdwood residence is not the 'scene of the crimes,' but is rather merely the subject of some, but not all, of
the defendant's false statements," prosecutors wrote. .
Prosecutors added that the precise value of the benefits Stevens is accused of receiving will not be the
predominant issue at trial. Instead, it ,will be "whether Stevens knew he received m.ore than $250 in benefits from
a source that he did not repay.'!
Prosecutors cite several other reasons for keeping the trial in Washington, D.C.:
• Stevens also is accused of failing to· disclose that he traded his vintage Ford Mustang and $5,000 to Allen in'
1999 for a new Land Rover Discovery worth about $44,000. The trade for Allen's Land Rover involved
correspondence and financial instruments sent from Washington, prosecutors said. And ultimately, Stevens' 1964
Mustang was also shipped from Washington, they pointed out.
• Much of the correspondence concerning renovations at Stevens' Girdwood home, including the transmission of
architectural drawings, e-mails and handwritten notes, was sent from Washington, prosecutors said.
• Although Stevens is not charged with bribery, the indictment against him details how Veco asked for assistance
with federal matters and how Stevens helped the company. It also lays out how Stevens received things of value
from Veco and failed to disclose them. In-their prosecutors said the requests for official acts that were
made of Stevens involved written correspondence and were sent to addresses anCl computer servers in
Washington.
• Prosecutors also pointed out that all three of the U.S. District Court judges in Alaska were nominatect and
confirmed by the U.S. Senate while Stevens was the senior senator from Alaska. Typically, a senior senator from
a state suggests -- or even endorses -- judges and other federal appointees.
• Finally, prosecutors also argued that Stevens actually lives in Washington, D.C.:
"Although Stevens maintains a residence in Alaska, there can be no legitimate dispute that for all practical
purposes, (he) lives and works in the District of Columbia. His spouse is an attorney at a law firm in the District
of Columbia, and the family owns a personal residence in the District of Columbia."
Prosecutors wrote that if the trial is in Washington, D.C., Stevens will "be able to maintain close contact with his
Senate office, and continue to live in his own home."
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FBI - Stevens-2010
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Businessman Weimar -paid candidate to push prison
GUILTY PLEA: Fixation on building private prison brought him down.
By LISA DEMER and RICHARD MAUER
Anchorage Daily News
(08/12/0801 :34:41)
Bill Weimar, who made his fortune off private halfway houses in Alaska, pleaded guilty Monday to two federal
felonies in U.S. District Court in Anchorage.
He admitted his role in a 'conspiracy to secretly funnel money to a political consultant for an unnamed state
Senate candidate, knowin-g the candidate would back a private prison if he won.
-Weimar had a long-standing relationship with the candidate running in the 2004 primary, a charging document
filed Monday said. Weimar held a "contingent interest" in a private prison project worth $5.5 million, but only if
the project was completed, the say. - _(})
.He faces prison time in the plea deal and may have to forfeit "certain property." Prosecutors estimate a sentence
of 10 to 16 months. U.S. District Judge John Sedwick isn't bound to that. He set sentencing for Oct. 29.
Weimar, who owned Allvest Inc., becomes the 11th person charged in the broad, ongoing investigation by the
FBI and U.S. Department of Justice into political corruption in Alaska. Weimar, 68, now lives in Big Arm, Mont.
At the brief hearing on Monday, Weimar answered the judge's routine questions. AssistantU.S. Attorney Joe
Bottini outlined the two charges: conspiracy to commit honest services mail and wire fraud, and illegally
manipulating currency transactions to avoid reporting them to the Treasury Department.
Weimar has admitted paying the consultant a total of $20,000 during the primary in August 2004 to cover
expenses for the candidate, without reporting the payments and witnout routing them through the campaign.
How do you plead? Sedwick asked.
"Guilty," Weimar answered, to each charge.
LAWMAKER NOT NAMED
For years, Weimar pushed plans for a private prison in Alaska, but the project was always controversial and no
prison was ever built.
A in the 1970s, Weimar later became close to the Republicans
Leglslature.FB -Stevens· LO 1
Neither the Senate candidate nor the consultant -- both accused of conspiring with Weimar -- in the
charging document. Prosecutors declined to exp,and on it Monday.
But the candidate described in the documents, and in c;ourt Monday, appears to be former state Sen. Jerry Ward.
He didn't return phone calls or e-mail messages on Monday.
Ward, a Republican elected from Anchorage in 1996 and the Kenai Peninsula in 2000, fervently pushed private
prison projects as a legislator. .
The charging document says the candidate running in 2004 had a long relationship with Weimar, and held elected
office part of that time. "\ '}.- _
rt(Qfl-.-,4-;\/-1 ,.

Ward and were "buddies," _according to a statement that former lobpyist Bill Bobrick, who worked for
gave to the FBI in SepteOr 2006. Bobrick also has pleaded gOin the corruption investigation. He
declined to comment on Monday. _
In 1997, a plan for a private prison in South Anchorage with Allvest and Veco Corp. as partners crumbled under
strong public opposition. As that project evaporated, Ward emerged as the lead architect of a new plan to build
private prisons in the Mat-Su and Seward.
"By God, this really solves the problem," Weimar was quoted as saying at the time.
In 2001, Ward signed on as the only Senate sponsor of a House bill pushing a private prison on the Kenai.
The charging document against Weimar doesn't say whether the candidate won in 2004 and does not call the
person a legislator.
Ward lost his seat in 2002 to Tom Wagoner. He-was trying to regain it in 2004, but lost in the Republican primary
to Wagoner.
SEATILE CONSULTANT
In court Monday, Bottini told the.judge the consultant was from Seattle. Some of Ward's biggest campaign
expenses in 2004 were more than $43,000 in fees charged by Madison Communications, an advertising and
public relations firm based in suburban Kirkland, Wash.
calls left for Madison principal Brett Bader on Monday were not returned:
The charges against Weimar and other court documents qupte details of a number of telephone conversations he
had with the consultant and the candidate from Aug. 1? to Aug. 23, 2004.
In a telephone conversation on Aug. 17, 2004, the consultant told Weimar that the campaign was haVing money
trouble, court documents say. .
"I'm worried we're reaching the limit now. I don't know where we find 10 grand unless (Candidate A) can get
more. in," the consultant said
"There's no legal way to do that. At least not on-that scale," Weimar responded.
Later that day; Weimar arranged to cover the next advertising mailer for the candidate, and told the candidate
so, the document says. .
On Aug. 20, 2004, Weimar told the of an unpaid invoice of $20,000 with the consultant.
The candidate's campaign funds were depleted, the charges say.. The candidate said he had only $300 to $400
left in his account.
On Aug. 23, 2004, Weimar made arrangements with the consultant to payoff the debt, the charges say. He then
called the candidate and told him "he would not be any further bills from Consultant the charging
document says.
Weimar sent the consulting company a $3,000 check on Aug. 23, 2004, then sent $8,500 in .cash that same day
by express mail, and another $8,500 cash the day after, the charges say. . .
FBI - Stevens-2012
"WE'VE MOVED ON"
The charges also do not name the private prison company, but Cornell Corrections Inc. tried to build a prison in
various Alaska communities, including Delta Junction, Kenai and Whittier. The charging document describes
unnamed company's Alaska interests as halfway houses, a planned juvenile treatnient center, and a private
prison and that matches Cornell's interests.
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In 1998, inJne midst of. plann,ng for a private prison in_Delta Junction, Weimar sold five Alaska halfway houses to
$21 million. He also forO a partnership with Cornell to pursQ'e prison and sUbsequel"lt /
deals for a private facility.
,
One goal of the conspiracy was to get the private prison company to give campaign contributions to the
candidate to help win election, according to the charges.
A spokesman for Cornell said the company was unaware of the charges but supports the prosecution. The
executives now in charge of Cornell weren't there at the time of the events that involved Weimar, spokesman
Charles Seigel said Monday. Company records don't show any eVidence of wrongdoing, he added.
"We've moved on and we are very different and have it behind us," Seigel said.
. .
Cornell also has not pursued a private prison in Alaska for years and is no longer interested in that, he said.
"We're glad' this investigation is going on but whatever was going on or may 'have been going on in the past, that
is not the Cornell that exists now, both in the policy on the private prison as we've talked about and in general
about the. way.we do business."
By 2004, Veco was no longer involve'd in the prison project, Frank Prewitt, a former state corrections
, ,
commissioner, Cornell consultant and FBI informant, has said.
ANDERSON INVOLVED
The failed private prison-effort was also central in the government's case against former state Rep. Tom
Anderson, now in prison.
At Anderson's corruption trial last summer, Prewitt was a key witness who testified at length about his
undercover wqrk'to collect evidence against Anderson, and also about questionable acts in his own past.
From,the witness stand, Prewitt said that in 1994 -- when he was corrections commissioner and Weimar owned
Allvest -- he accepted $30,000 from Weimar. Prewitt testified that he considered the money aloan, which he
repaid the next year, after he left his state post, by working four months for Allvest for free.
Weimar helped start Allvest in 1985, then bought out his partners and turned it into a multimillion dollar
corporation with operations in Alaska and Washington state. Its contracts were worth an estimated
$10 million a year. ' ' ,
also operated a lab that did contract urinalysis work, and used to run the city's Animal Control Center and
the Community Service Patrol •.
In 2002, Allvest was forced into bankruptcy because of unpaid judgments in civil suits against the company. The
bankruptcy case eventually was settled.
FBI - Stevens-2013
Find Lisa Demer online at g,dn.c9m/£onta_c!L1deme.r or call 257-4390. Find Richard Mauer at
9dn.com/contactirmauer or call 257-4345. Daily News reporter Tom Kizzia contributed to this story.
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FBI - Stevens-2014
Feds reveal more in Stevens case
FILINGS: Prosecutors allege senator used inside help to profit from Florida condo.
By RICHARD MAUER
rmauer@adn.com
(08/15/0803:37:45)
Federal prosecutors offered a glimpse of previously unseen evidence against U.S. Sen. Ted Stevens in new court
filings Thursday, including allegations that Stevens used insider help to turn a secret $5,000 investment in a
Florida condo devel<;>pment into more than $100,000 in quick profits.
The government also dismissed assertions by Stevens that his conduct was shielded by the constitution as a
member of Congress, citing nine examples of Stevens' "errands" and requests involving Veco that had nothing to
do with protected lawmaking.
Among them: an intercepted telephone call in which Stevens discusses how his son Ben, then the state Senate
to push a bill favored by the oil industry as a prelude to gas development.
The new filings go substantially further than the indictment handed up against Stevens last month charging him
with seven counts of failing to disclose gifts from 1999 through 2006. Most of the alleged gifts were from the
former Alaska-based oil field service company Veco and its politically active chairman, Bill-Allen. Allen and Veco
vice president Rick Smith have pleaded guilty to bribing elected officials and are working with government
prosecutors and are expected to testify at Stevens' trial, tentatively scheduled to start jury selection Sept.
22.
Stevens demanded a speedy trial in hopes of a positive outcome before the November election, fn which he is
seeking a seventh full term. So far, the case is set for district court in Washington, though Stevens is a!:!king for a
change of venue to Alaska, where a more friendly jury 'might await him.
One of the government documents is a response to an earlier motion filed by Stevens seeking dismissal of the
charges on the basis of Constitu_tion's_ Speech or Debate clause. That clause offers broad protection to
mefnoers of Congress from prosecution for activity in furtherance of legislation -- but it's not a blanket immunity.
Nor is the separation of powers doctrine, which Stevens' attorneys cited in another motion seeking dismissal
Thursday. .
The allegations concerning the Florida condo emerged in another document filed electronically by prosecutors
Wednesday night, hours after the court clerk closed for the day. That document also alleges that Stevens sought
jobs from Veco for a son and a grandchild and a'new Jeep Cherokee for his daughter Liiy in 2005.
The government says it plans to offer that evidence at trial as background, as proof of the crimes in the
indictment, and as evidence of a guilty conscience. Stevens wouldn't comment, but it's likely his legal team will
fight against introduction of the evidence as extraneous to the charges.
NEW ALLEGATIONS
While much of the government's case had emerged in newspaper reports long before the Washington grand jury
handed up the indictment, the allegations concerning Florida condo and Jeep Cherokee have never been aired.
The Florida transaction began in 2001, a year after Allen began renovating Stevens' Girdwood residence, and a
time at which Stevens was approaching the pinnacle of his po\:Ver in the Senate.
On Feb.A, 2001, Stevens and his wife, Catherine, signed a purchase contract with a development company about
to build a condo project in Florida, agreeing to buy a garden unit for $360,000. The contract was a standard one
and required a 10 percent down payment -- $36,000 -- but Stevens only _put down-$5,000,_the motion says.
- - ----- - --- _'1'\5
_ ___ }1 - ---:- - - -
The development company was as "Company B." One of Company B's partners was "Person C," a
personal of the Stevens, thV'ernment said. . 0
.
Rattler than require Stevens to put down the normal amount, Person C fronted the $31,000 in an interest-free
Joan that he paid to an escrow company "for the benefit of 'Theodore and Catherine Stevens,' " the government
said.
There was evidence that the Stevenses never intended to live in the condo but merely saw it as a qUick way to
turn a buck, the document says.
On Aug. 21, 2001, Person C wrote Stevens that the deal was about to turn out "as I told you." Though the condo
was still unbuilt, Company B had just accepted an offer on Stevens' garden apartment for $515,000 -- the same
one Stevens were offered for $360,000 six months earlier. The buyer would assume Stevens' liabilities.
It was after that buyout that the Stevens' repaid Person C for the $31,000 loan, sending a $15,000 check on
Sept. 12, 2001 and a $16,000 check on Dec. 11, 2001.
The government said Stevens was required to disclose any loan over $10,000 during 2001, but failed when it
came to the condo loan.
t
Stevens knowingly carried debt on a $31,OOQ interest-free loan from his personal friend for more than
10 months 2001, Stevens did not list such a liability his 2001 disclosure form/' the government said.
JEEP CHEROKEE
The vehicle transaction in 2005 follows up an earlier one in 1999 that is referenced in Stevens' indictment. In the
first deal, Stevens was looking for a car for his daughter, Lily, then 18. He was accused of not reporting the trade
of a 35-year-old Mustang worth $20,000, plus $5,000 cash, for a new Land Rover Discovery bought by Allen
worth $44,000 -- for a net benefit of around $20,000.
By 2005, Lily Stevens needed a new car, the government said in its filing Thursday. So Stevens returned to the
original source: Allen.
"Allen offered to get Stevens' daughter a new car in exchange for the 1999 Land Rover, and Stevens agreed," the
government said.
This time, the SUV would be a new Jeep Grand Cherokee. The deal was made between Stevens' daughter and a
Veco employee "for the purpose of hiding Allen's involvement in the transaction." Allen wrote a personal check to
the employee for $35,000, who bought the Jeep July 15, 2005, for a little more than $34,000 from a dealer.
Veco shipped the car to Seattle, paid the employee to fly to Seattle, pick up the car, and deliver it to Berkeley,
Calif. Lily Stevens earned her law degree at the University of California at Berkeley, according to her wedding
announcem-ent in May. •
Lily Stevens paid the Veco employee $13,000 plus her old car, valued at $9,000, for the $34,000 Jeep, the
government said. FBI - Stevens-2015
PHOENIX JOB
I
I
I - In March 2006, after the government had begun tapping Allen's phones, Stevens asked-a-Iobbyist to ask Allen for
a job in Phoenix for one of his three sons. The son was unnamed, but Walter Stevens, a multimedia management
spec;ialist, lived in Phoenix, at least in the 1990s.
In a recorded conversation, the unidentified lobbyist told Allen, "I saw (Sen. Stevens) at lunch and he asked if
you -- I'mlnot 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 who is down there, who finds himself without a job at this point." The
lobbyist said Stevens mentioned Allen by name.
Allen ordered company-officials to find a jobfor-the.son in Alaska in the summer of2006;-the government said.
"Stevens' son accepted the position with Veco and also received a personal loan from Allen."
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GAS LINE ,
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In anotbeF filing Thursday, this one in response to Stevens' assertion of his immunity as a congressman, the
government said Stevens' activities went well beyond his legislative role and should not be protected. One
example prosecutors cited was Stevens'pushing for state legislation on a proposed natural gas pipeline sought for
years by Veco. .
Stevens used his official position to try to get the state Legislature to approve construction of a gas line during
the 2006 legislative session, the new filing says -- a session already. shown to be tainted by corruption.
Between January and June 2006, the FBI secretly recorded telephone calls between Allen, Stevens, his legislative
staff and his son, then-state Senate President Ben Stevens. They discussed the gas line, then-Gov. Frank
Murkowski's negotiations with oil producers and legislation, the filing says. In one call, Stevens promised Allen he
would "whittle down" the federal permitting and reviews, the document says.
In a call on June 25, 2006, Stevens and Allen talked about hearings coming up before a state Senate committee
on which Ben Stevens served. Prosecutors say Stevens told Allen he was working with his s.on.
"I'ni 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 get this done. There's no politics in it, there's necessity in it for the Federal
government,' II Stevens told Allen, according to the filing. .
He asked how he could help Allen, and said he was going to try to get the Secretary of and head of the
Federal Energy Regulatory Commission to Alaska regarding the need to act on the pipeline, prosecutors contend.
On July h 2006, Stevens traveled to Alaska and addressed the Senate cOl)1mittee, "urging it to cease infighting
and pass the,pipeline legislation before Iiguified natural gas monopolizes the marketplace," prosecutors
Three days later, the Federal Regulatory Commission issued a report with a similar message.
Daily News reporters Lisa Demer and Erika Bolstad contributed to this report. Find Richard Mauer online at
or call 257-4345.
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FBI - Stevens-2016


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Stevens' defense team says case unconstitutional
TOO VAGUE: Lawyers ask judge to throw out charges that senator accepted money.
By ERiKA BOLSTAD
ebolstad@adn.com
(08/15/0802:04:56)
WASHINGTON -- Lawyers for Sen. Ted Stevens attacked the Justice Department case against him as
unconstitutional and asked a judge on Thursday to throw out charges the Alaska Republican accepted thousands
of dollars of home repairs and gifts and lied about them on his financial disclosure forms. .
Stevens' lawyers argued in motions flied Thursday that the charges against the senator are vague,
that they violate laws on the statute of limitations and that they breach constitutional barriers meant to keep
executive branch from meddling in congressional affairs.
His lawyers also complained that although Stevens is not charged with bribery, the first count of the indictment
includes "blatantly inflammatory" language that suggests he accepted gifts and renovations from Veco Corp. in
exchange for legislative favors for the former Alaska-based oil services company. Jurors should not see that
language, !lis lawyers said in one of their motions. .
"The gratuitous suggestion of a qUid pro quo relationship would only serve to inflame the jLiry and create unfair
prejUdice against Senator Stevens," his lawyer, Robert Cary wrote.
.Stevens' lawyers submitted seven motions on Thursday, the deadline for filings in an expedited trial schedule
. - \
granted at Stevens' request, so his case can be heard before the Nov. 4 election.
U.S. District Court Judge Emmet Sullivan will hold a hearing Wednesday to decide whether to move Stevens' trial
to Ataska. If the trial stays in Washington, jury selection is expected to begin, Sept. 22. The trial would begin two
later.
Even as his lawyers prepare to s.tevens in court, he continues to campaign in Alaska for the Aug 26
Republican primarY. Stevens' campaign on Thursday unveiled three teleVision commercials that will begin airing
. - - - - ,
throughout Alaska.
SEPARATION OF POWERS
In their motions, Stevens' lawyers raised"particular concerns about the first count of the indictment, which
sug'gested Stevens accepted gifts in exchange for helping with federal legislative business.
His lawyers argued that a grand jury could have issued such an indictment only if it were shown evidence that
Violates what's known as the speech or debate clause -- a portion of the U.S. Constitution that limits what sort of
evidence executive branch· investigators can use when they probe acts by members of Congress. If a grand jury
heard evidence protected under the speech or debate clause, "the indictment in this case should be dismissed,"
Stevens' lawyers wrote. FBI - Stevens-201?
Investigators may have overstepped their authority by interviewing Stevens' past and current legislative staffers,
the senator's lawyers suggested..
"Even if those staffers did not themselves testify before the grand jury, it is equally problematic if FBI agents
summarized testimony about protected information to the grand jury," his lawyers wrote.
In a similar vein, they argued that the indictment violated the separation of powers clause of the Constitution.
The alleged false state-ments and omissions that Stevens made in the financial disclosure forms are a matter for
the U.S. Senate to take not executjve his lawyers argu.ed.. _ 1·Qt\:
'-- _ - - --- - -
In several other motions, Stevens' lawyers accused prosecutors of being imprecise about the charges
he faces. indictment accused Qvens of failing to disclose the receipV certain "things of value," his lawyers
€ .
"Yet the does not describe the alleged falsity or concealment with any degree of specificity," they
wrote, calling it "fatal to the indictment."
"ALLEGATIONS ARE INSUFFICIENT"
Stevens' lawyers ask for prosecutors to file more detailed charges that specify the things of value mentioned in
the indictment, as well as the labor costs of Veco employees and contractors who worked on renovations in 2000
that doubled the size of Stevens' house.
They also want more specifics on the cost of materials that prosecutors allege weren't included in the invoices
sent to Stevens.
The motion also,suggests that the indictment doesn't adequately specify what sort of requests Veco employees
made of Stevens when they asked him to use his official opinion to help the company.
"These allegations are insufficient, as a matter of law, to provide Senator Stevens with fair notice of the charges
against him or to ensure that the grand jury properly returned an indictment in this matter," they wrote. "He is
constitutionally owed a statement of the specific charges against him, a requirement not satisfied by it recitation
of facts followed by general allegations."
The gifts Stevens is charged with accepting from 1999 to 2006 came during a renovation that doubled the size of
the Girdwood home he owns with his Wife, Catherine.
Veco employees and contractors performed architectural design services, put the house on stilts and installed a
new three-bedroom first floor,a finished basement, a garage, a Viking gas range and a wraparound deck,
,according to the indictment. . . .
Stevens paid a construction firm for its work, but the indictment accuses him of failing to fully reimburse Veco or
its,contractors -- even as he stayed closely involved in the progress of the work. 'Stevens has said he paid
$130,000 of the construction costs. .
Stevens' lawyers also argued Tl:tursday i.n motions that some of the charges he faces are outside of the
statue of limitations.
During the investigation, Stevens agreed to a statute of limitations that to May 9, 2002. Yet his lawyers
pointed out that the indictment alleges a scheme to conceal gifts by filing false disclosure forms that include the
calendar years 1999 and 2000. .
Sullivan will hear all motions in the case Sept. 10.
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FBI - Stevens-201B
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Anchorage Daily News
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Evidence overwhelms Stevens lawyers
HELP: Defense team scrambling to sift through glut of legal
By ERIKA BOLSTAD
ebolstad@adn.com
(08/14/0801:42:34)
WASHINGTON -- Lawyers for Sen. Ted Stevens, facing a stepped-up trial schedule, asked for help Wednesday
trying td make sense of more than 67,000 documents and 2,800 audio files that could end up as evidence
against him.
Prosecutors and lawyers for Stevens had a brief hearing Wednesday afternoon to decide how to handle discovery
materials the Justice Department is handing over to Stevens' defense team. That includes recordings of roughly
10,000 phone conversations.
Stevens, 84, faces a Sept. 24 trial on charges he knowingly took home repairs and gifts worth more than
$250,000 from the oil field services company, Veco Corp., and failed to report them on his annual U.S. Senate
disclosure forms. Next week, a judge wi,lI decide whether to grant Stevens' request to move the trial to Alaska.
Wednesday, one of Stevens' lawyers, Alex Romain, asked the government to provide more detail about 67,000
pages of documents they scanned electronically and handed over to the defense. Some of the documents don't
show where they begin and end, the defense complained. Those documents include bank records, spreadsheets
and evidence that was seized from Veco Corp. computers. .
Veco CEO Bill Allen and Richard Smith, a former vice president of community affairs and government relations for
the now-defunct company, pleaded guilty in May 2007 to making more than $400,000 in corrupt payments to
Alaska public offic.ials.
Allen's testimony has been key in other convictions in the ongoing public corruption investigation, which to date
has led to charges against 11 lawmakers, lobbyists and pusinessmen. Eight have been convicted or pleaded
gUi,lty. Three lawmakers, including are awaiting trial.
Stevens' lawyers on Wednesday also asked to have better labeling on approximately 2,800 audio files, and the
government agreed to be forthcoming about who is calling or who is receiving the call, and when it was
made. The audio files include wiretaps of both cell phones and land lines, Stevens' lawyers said Wednesday.
The defense also wants "surveillance logs" used by investigators to determine when calls began and ended and
who is on the line.
With all the discovery materials, prosecutors said they would work with the defense to try to provide more
information. FBI - Stevens-2019
DISPUTES IN THE OPEN
The fast-moving trial calendar, sped up so Stevens could face a jury before the general election, means that
some of the tug-of-war that generally goes on behind the scenes in criminal trials is playing out in the courtroom.
They're the kind of issues that could generally be handled over the telephone, said U.S. District Court JUdge
Emmet Sullivan. In this case, though, Sullivan said he is anxious to be as transparent as possible because of the
high-profile nature of the trial and the intense media scrutiny.
When necessary, Sullivan said, he'll hold a hearing, but the speed of the case means that lawyers need to
some of their disputes over potential evidence among themselves. /1'e..t.ti---4-....J - 7q5
"-I'm going to make myself available," he-warned the aefense and is an-.!s.=ue
- - -------
by the att()rneys. II
If in WaShington9c., jury selection is scheduled to Sept. 22, two days before the trial.
lawyersrolf both the defense and the prosecution. have asked to submit questionnaires to the jurors, so they can
review them and base their selection on their answers. .
Questionnaires are rarely used, Sullivan said, so he asked the lawyers to make plans to photocopy 30 to 40
copies of the answers submitted by· the estimated 150 jurors in the Initial pool. The" copies will be needed for
members of the teams.
PRETRIAL PUBLICITY
Meanwhile, Stevens' lawyers submitted a second brief Wednesday in support of their motion to move the trial to
Alaska. In it·they argued that holciing the trial in Alaska is "the only way.to permit Senator Stevens even a minor
role in his reelection campaign." Stevens, a Republican who held his Senate seat since 1968 and has been
campaigning in Alaska, has attended only one of his court appearances since his indictment.
His attorneys continued to argue that most of the witnesses are in Alaska, as is one of the pieces of evidence in
the case: Stevens' home in Girdwood.
Stevens' lawyers also dismissed concerns by the Justice Department prosecutors that moving the trial to Alaska -
- while the senator campaigns there -- could taint the jury pool.
Stevens has "received positive and negative publicityJn Alaska and in the District of Columbia," his lawyers
wrote. "This publicity can be expected-to continue in,both venues during the trial. In either venue, the effects of
publicity can be addressed during jury, selection while the effects of publicity during trial can be
addressed by appropriate instructions to the jury."
Prosecutors,argued ill a l'Dotic;>n filed -Monday that they believe the case is fundamentally a Washington, D.C.-
based one, since the case centers' on' disciosure form's'Stevens filed with the U.S. Senate.
.Find Erika Bolstad online at or call her in Washington, D.C., at 202-383-6104.
CoPV.rlght @ Frl Aug 15 08:48:57 UTC-08PO 20081900 The Anchorage Dally News (www.adn.com)
FBI - Stevens-2020
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Potential questions for
jurors in Stevens case
Posted by Alaska_Politics .
Posted: August 19, 2008 - 2:13 pm
From Richard Mauer in Anchorage ••
What potential Washington, D.C., jurors know about Alaska,
what they think about the oil industry, and whether they have
reservations about sending an 84-year-old man to jail are all
questions on juror.questionnaires submitted for
review Monday in U.S. Sen. Ted Stevens' felony disclosure
case.
Prosecutors and Stevens' defense attorney filed three separate
lists of questions to U.S. District Court Judge Emmet SU'lIlvan
- one they agreed on, and separate additions (government
here and defense here) they hoped to convince the judge to
use.
Sullivan said he expects to begin seating a jury in Washington
on Sep. 22 - though Stevens is still hoping to move the trial
to Alaska, where undoubtedly the questions to potential jurors
would be quite different.
Anyone who's served on a jury will be familiar with most of the
noncontroversial, joint questions: where do y60,work, do you
know anyone in the courtroom, have you ever been convicted
of a crime, can you spare the time to sit in a courtroom (for
four weeks), do you understand the presumption of innocence,
afforded any defendant?
But there were also questions unique to this case: have you
ever had a vexing experience with home remodeling? Ever
refuse to pay a contractor because the work was lousy? Both
sides want to know, presumably because the renovations to
Stevens' Girdwood home starting in 2000 by the oil-field
service company Veco are central to the case. The
government, in its seven-count indictment, alleged Stevens
failed to disclose work and furnishing provided by Veco and its
chairman, Bill Allen.
Several joint questions seek to find out if potential jurors are
political active or read about politics, especially the insider
Capitol Hill publications. Do they listen to talk radio, read
politicaJ blogs or go to Internet forums? The government, in
particular, wants to know if they read the conservative Drudge
Report or the liberal Huffington Post online.
Alaska Politics
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under scrutiny, and the usual hardball
Alaska politics. Come here for news, tidbits
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Keep your comments civil and on point.
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Contributors
Kyle Hopkins
Kyle Hopkins writes about Anchorage city
government and politics. He coverea last year's
campaign for governor, and has brogged
extensively about Alaska politics for the past year.
HE! grE!w up to Southeast Alaska and was ,a
reporter at the Fairbanks Daily News·Miner and
Anchorage Press. E-mail Kyle at
khopkins@adn.com
Sean Cockerham
Sean Cockerbarn writes about Alaska state
politics. He spent tllree years based in Juneau for
the Daily News berore joining the Tacoma News-
Tribune two years ago to write about Washington
state politics. He went to Iraq twice for the News
Tribune, and previously wrote about Alaska
government and politics for the Fairbanks Daily
News-Miner. Nowhe's back in Anchorage. e-mail
Sean at scockerham@adn.com
Erika Bolstad
Erika Bolstad covers Alaska issues. including the.
congressional delegation. from Washington, D.C.•
for McClatchy Newspapers. Before joining the
bureau this summer, she spent seven years as a
reporter at the Miami Herald. where she covered
politics. government and the statelegislature.. E-.
mail E;rika at ebolstad@adn.com.
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lawyers want to know of the
potential jurors have of Alaska in geUl.'Their answers" by
tlie w-av, may provide a clue about the harm to Alaska of all
• #/
the coverage - some Involving Stevens - of our famed
"Bridges to Nowhere," other earmarks and the corruption
investigation.
Stevens' lawyers are seeking permission to ask a similar
questiol1 about their impressions of Congress in general.
The government wants to know if the IRS has ever gone after
them, in particular for the error of a spouse or tax preparer.
.And then there are these proposed questions, also from the
government: In your course of employment/business,' have
you ever given a gift to a vendor? In your course of
employment/business have you ever recelveCl a gift from
another· business entity?
And finally, the government wants to know whether Stevens'
age would prejudice the outcome: "Would you have any
difficulty finding an 84-year-old guilty of a crime if you knew
that a conviction might result in a prison term?"
A hearing will be held at 11 a.m. Washington time tomorrow
on Stevens' request to move the trial to Alaska.
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Archive Q
Stevens: "You're damn right I can take
care of myself.-" - 8/20/20081:00 am
Judge could decide today whether'to try
-Stevens in Alaska· 8120/?008 5:36 am
"Captain Zero" ,,8119120086:18 pm
Bailey put on leave - 8119120084:33 pm
Potential questiol)S for jurors in Stevens
case ·8119120082:13 pm
'Running' (Updated) • 8/1812008 pm
Vickers breaks out checkbook
- 8/18/?008 3:04 pm
Palin & Halcro interviews -81181200810:14 am
Wall to wall· 811812008.7:06 am
Is McCain rethinking his anti-ANWR drilling
position? - 8/1612008 8:23 am
"We come here for the edge, and we love
the edge. But this is ridiculous."
8/1612008 7:52 am
NO subpoenas for now· 8115/2008 8:00 pm
The campaign money race - 8/15120086:06 pm
Palin interview - !!'15I2oo811:04 am
New information filed in Stevens case
·8114120087:13 PIl\ -
"Alaska Troopergate" • 8/1412008 2:00 pm
Motions flying in the Stevens_case
_(Updated with the motions themselves)
-8114120081;1:45 pm
'Hi, this is Steve BranchfJower'
-8/141200612:41 pm
Ashley Reed charged (full'updated version)
·811412008 10:47 am .
Raw feed: Palin (Updated)
·81131200810:00 pm
"Namely, specifically, most disturbing, is a
telephone recording_apparently
_preserved by the tfQopers "
• 6/13120069:36 pm .
The Bailey, phone call· 8/1312006 4:28 pm
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14 August 19. 2008. Jjacander
you make me sick
After all Senator Stevens has done, you Ingrates want to tear him down? Alaska wouldn't even be a state
without him--show some respect. he hasn't done anything wrong, so grow a backbone and defend him.
reply I flag this ,.
FBI - Steven5-2022
August 20. 2008 • 12:34amI zerocut
talkin'-to-me? -
Stevens hasn't denied receiving any of under-the-table "freebies" from Veco. His only
on the matter, so far, is that he "paid eveiy bill that was sent to him".
Did Steven's have acontract with Veco or Allen? (Don't think so! ... that would leave a paper trail).
Did Steven's ever question Allen or Veco as to why they were doing all that "free" work ... or that
they were doing it without being asked? (Don't think so ..... that would imply that he was aware of
the "gifts" wasn't reporting).
Why-didn't Stevens justreportthe.gif!s?_(Hl.Imm_mmm._m ()n)t's f?ce! the whole thing looks like
lawye.. accuse P5eCutors of:smeat'
p- •
adn.com
Anchorage Daily News
'0
Page 1 of3
I Print Page II, Close Window I
Stevens' lawyers"accuse of 'smear'
FILINGS: Defense says feds insinuate bribery despite no such charge against senator.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(08/26/0803:12:56)
Lawyers for Ted Stevens accused prosecutors Monday of attempting to unfairly try Alaska's senior U.S. senator
month by introducing "irrelevant and.prejudicial evidence" that has nothing to do with the disclosure
violations he's charge with.

,Defense attorney Robert Cary asserted that new issues raised by the government "in its unnecessary public
filing" nine days earlier have no place in the trial, scheduled to begin Sept. 22 in Washington, D.C.
they are an obvious attempt to smear the senator's character," Cary wrote.
Among those issues was an undisclosed $31,000 loan by a developer to Stevens in Q001 that let him turn a
$5,000 investment in an unbuilt Florida condo into a $100,OOO'profit, and a discount of more than $10,000 on a
Jeep obtained by the oil field services company Veeo for Stevens' adult daughter Lily in 2005.
And in another filing on Monday, Cary served notice on the government that he might attempt to question former
'!Ieeo Allen" t.he government's ,chief witness, about an Anchorage Police Department investigation of
him. Cary didn't provide details, but the Daily News and other media reported that Anchorage,police investigated
Allen for sexual abuse of a minor from allegations involving a girl who Was under 16. That investigation came up
in a closed-door hearing in the 'bribery trial of a state legislator in Anchqrage last year in which Allen was the lead
witness, but the jUry never heard the allegations.
viol.:.
the government brought up the matter in a sealed motion in which it sought a ruling that any such
(Gross-examination of Allen would be "inflammatory and impermissible" under court procedure. Cary said the
government's"motion'itself was inappro'p'fiafely filea under'seal. - -, - . _." - ---
The defense filings came amid a blizzard of motions and'responses filed by both sides Monday in U.s. District
Court in Washington, the day before Stevens faces six challengers in today's Republican 'primary. The pretrial'
jockeying by the two sides is an effort to use the law, court procedures and the Constitution to their advantage
as the structure of the tria! takes shape.
U.S. District Court Judge Sullivan has agreed to hear the case on an expedited basis to improve Stevens'
chances of a verdict before the general election Nov. 4.
Stevens insists he's innocent'and wiU be exonerated by a jury.
FBI - Stevens-2023
In one of his filings, Stevens argued that the government was unfairly trying to bring in evidence of bribery when
only charging St,evens with failing to report more than $250,000 in gifts, mostly from Allen and Veco. _
- "... "'.. - - - -- - - - - - - - - '--- - - - - - - - -
utter illogic of the government's position reveals what is really going on," Cary wrote. "The government
to smuggle in suggestions of briqery.and q>rruption that has not charged and cannot prove. The
indictment alleges no quid pro qUe:> for any gifts Sen. Stevens allegedly receiv,ed, but the government now asks
permission to introduce evidence of officiai actions in order to invite the jUry baselessly to infer just such a qUid
pro quo."
"PUBLIC SCRUTINY AND CRITICISM"
http;l!www.adn.comltbilv-printerlstoryISQS663.html
- - ,/

-'-,-'
8/26/2008
f)
.adn.comf>tevens' lawyers accuse of 'smear' Q' Page 2 of 3
Foftheir part, prosecutors'lashed at that argument. Prosecutors said evidence is crucial to establishing
motive. T.tle information it wants to-show the jury also details the close relationship between Stevens and Allen,
who had ready to Stevens over the phone, in e-mail and in person. •
Their job iS'to show that Stevens "knowingly and intentionally" lied on his disclosure forms,_prosecutors wrote. To
do that, they need to prove a motive.
argued in their motions that if Stevens had reported the gifts they accuse him of accepting but failing
he would have faced questions that could have drawn media scrutiny as well as ethics complaints and a
ouster from office. '
, '
He wanted to avoid "the negative conseque-nces flowing from such disclosure, particl!larly during a time frame
when the defendant had been engaged in performing offJcial acts for Veco and Bill Allen," prosecutors wrote.
In other words, it was necessary for him to hide how close he was to'Allen, prosecutors said, because he "would
have subjected himself to public scrutiny and criticism regarding his ongoing rela'tionship with Veco and Bill Allen,
and the fact that he was laboring under a cOl1f1ict of interest."
"Most importantly, disclosure of the things of value and the negative repercussions flowing from that disclosl,Jre
would have threatened the defendant's future stream of things of value from Veco, Bill Allen and others."
, .
Prosecutors also countered arguments that the charges against Stevens aren't specific enough. Stevens '''cannot
credibly claim that he cannot understand the charges or prepare his defense," government lawyers wrote,
they are "exceptionally detailed."
·Prp.';)
';i:i1e,V,lcite one example: "Where the indictment charges that Stevens- received things of value at the Girdwood
the Ingictment sp.ecifically notes that the work included jacking_ up and resting the house
on stilts, building a new first floor with two bedrooms ilnda'bathroom, renovating tne eXisting residence, and
adding a garage with workshop and'a seco'nd-story wraparound deck.
1II

Also, while Stevens is entitled to know what charges he faces, prosecutors wrote that he is not owed an
explanation of "each and every detail of how (the case) will be
They also dispute Stevens' claim that the indictment violated provisions of the Constitution's Speech or Debate
clause,-which bars the government prosecutors:from using speeches'and'iegislatiohintro-duced'b-y members of
Congress as eVidence. Prosecutors said that evidence protected by legislative immunity granted by tlie
Constitution was not shown to the grand jury that ultimately indicted Stevens.' -
"1he prosecutors who were involved in the grand jury proceedings are nof aware·of any evidence introduced to
.the grand jUry that reflects an act taken by Stevens, such as bills or statements on the floor of the Se/Jate, that
be considered protected. legislative activity."
t /lJf·
Stevens'-c1aim that under the Constitution it's up to the Senate to police itself when it comes.to disclosure
fOles, prosecutors counter that the case "dOes not involve enforcement of internal Senate rules."
FBI - Stevens-2024
"It involves enforcement of an unambiguous rule contained ·in the criminal law: do not lie when by. law to
provide honest disclosure of assets." That was a law Congress-itself passed.
- "!STEVENS DID·NOTHING-IMPROPER"
On the matter of the evidence involving the Florida loan, the Jeep and other issues, Stevens' lawyers argued that
it would prejudice the jUry. In the case of the Florida loan in particular, "Sen. Stevens did nothing improper,"
Cary, his attorney, wrote.
The Jeep deal "is a misgUided attempt to impugn Sen. Stevens and his family before the jury," Cary argued.
in. its filings, the government inciuded excerpts of two e-mails Stevens sent to his friend Bob the
i _ _ . _._ . -
i:- _ __ _ , ' _'_ __ 8/26/2008
..Stevens'lawyers accuse of 'smear' n Page 3 of3
Musky restaurateur in GirdWod. The government said Stevens guilty in those e-mails. The
by the government suggested Stevens was asking Persons to be less than candid before a grand
;j'ury.
Persons kept an eye on Veco's renovations to Stevens' home in Girdwood starting in 2000, the majority of the
alleged unreported Veco gifts in Stevens' indictment.
Cary submitted two entire e-mails, which said showed them to be
In one, dated May 17, 2007, Stevens advisesPersons to get his own attorney involved. Apparently Persons was
afraid of an indictment himself, and Stevens .said he needed a lawyer.
In the second e-mail, sent six hours after the first, Stevens again stressed tl]e important of legal counsel.
"If they know, you have legal advice, they will be more careful," Stevens said.

also prOVided some advice about how Persons should proceed.
dr./
don't let them rattle you and don't answer questions you don't know the answers to," Stevens said. "They
have lots of info from Bill," Stevens said, a likely reference to Bill Allen.
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Stevens' lawyers want to block phone evidence
CORRUPTION CASE: Senator's team tries to get evidence tossed.
By ERIKA BOLSTAD
eb9Istad@adn.com
(09/03/0801:36:16)
WASHINGTON --'Lawyers for Sen. Ted Stevens signaled Tuesday they'll try to keep jurors from hearing as many
as 105 phone calls the FBI recorded as part of the investigation that led to the 84-year-old Alaska Republican's
indictment on corruption charges. -
The phone calls appear to be among the thousands of hours of secretly recorded phone taps and video
surveillance that have helped prosecutors land seven convictions and guilty pleas in the sweeping multiyear
probe of corruption in Alaska politics. In at least one of the cases, jurors said the recordings -- which showcase
crude talk and salty exchanges between lobbyists and state lawn:takers -- were key to their guilty verdict.
The senator goes to trial Sept. 24 on seven counts of lying on his annual financial disclosure reports about gifts
and home repairs he allegedly received from an oil services company and its CEO, Bill Allen. A judge granted an
expedited trial so that Stevens could face ajury before the Nov. 4 election. Stevens, who won a Republican
prfim"lry last: week, faces Mayor Mark Begich, a Democrat, in the general eleCtion.
Mis lawy.ers on Tuesday continued to shore up their of the senator, filing motions that criticized
prosecutors for a vaguely written indictment and for insinuating that Stevens took bribes. The governmerit
IIbDviously wishes to import of a bribery prosecution into a case that is nothing of sort,1I wrote
Stevens' lawyers.
Stevens' lawyers complained in documents t.hat prosecutors dumpe9)nore than 400 hours of video" al"!d audio
evidence on them last month, but little of it was related to Stevens. Only, 105 the 2,800 Intercepted phone
calls feature Stevens, his lawyers wrote in motions filed Tuesday.
didn't specifically name the senator inJhe
affidavits they submitted to a court seeking permission for wiretaps. As a result, they may to seek to keep a jury
from hearing those recordings, one of his lawyers, Robert Cary, wrote in motions filed Tuesday. They're asking
for detailed logs that show the government made every effort to 'avoid recording noncriminal conversations a'nd
people who wefefl't named in orders authorizing the wiretaps.
FLORIDA DEAL TIE-IN
Last his lawyers accused prosecutors' of unfairly introducing "irrelevant ana prejudicial eVidence" that has
nothing to do with the disclosure violations he-faces.
FBI - Stevens-2D26.
His attorneys are referring to how prosecutors revealed that a friend loaned Stevens $31,000 in,2001 that let him
turn a $5,000, investment i11 an unbuilt Florida condo into a $103,000 profit. He faces no charges in connection
with the allegation; .
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'However, prosecutors argued Tuesday in their own motions that they intend to introduce the information at trial
because it is directly. related to charges he faces in connection with repairs to his home in Girdwood. Stevens took
out a line of credit on his Girdwood home to pay for \teco repairs, prosecutors said.
.' .
They said they'll be showing that even as Allen 'and Veco helped Stevens by "doing fre.e work on the Girdwood
residence," another friend helped defray the home repair expenses the senator paid to non-Veco workers by d
.him '"Yith a virtually-no-risk real estate investment that cove!"ed line of credit." . _ C\. b
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; . Jhe Flgric.J9real is tq and
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personal invOl1ents and financial sta.tus," prosecuo wrote.
SPEECH-OR-DEBATE CONFLICTS
Stevens' lawyers on Tuesday also continued to press their case for throwing out the indictment based on the
speech-or-debate clause of the U.S. Constitution, which bars the government,prosecutors from using speeches
and legislation introduced by members of Congress as evidence. Prosecutors said that evidence protected by
legislative .immunity granted by the Constitution was not shown to the grand jury that ultimately indicted
Stevens. . - -
But Stevens' lawyers said they believe the grand jurors did see protected material, and. they've asked for
permission to review transcripts of what prosecutors presented in the secret sessions.
That would mirror what government lawyers have done in the Rep. William Jefferson case, Stevens' lawyers said
in their motions. Jefferson, a Louisiana Democrat, faces bribery charges. In Jefferson's case, his lawyers were
given permission to review grand jury testimony of the congressman's legislative aides to determine whether
there are speech or debate conflicts. A judge reviewed the remaining transcripts for conflicts.
Prosecutors continued to maintain in their filings that that the evidence of "official or political actions" by Stevens
will "be limited to su'ch routinely admissible categories as constituent services or communication with government
agencies." .
U.S. District Court judge Emmet Sullivan will hear all of the pretrial motions next week. Sullivan has already
ruled that the trial will,stay in Washington D.C. instead of moving to Alaska.
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FBI taped more than 100 Stevens calls
By MATT APUZZO
The Associated Press
(09/02/08·13:37:29)
WASHINGTON - FBI agents taped more than 100 phone conversations involving Sen. Ted Stevens as part of their
public corruption investigation, Stevens' attorneys said today.
The-FBI's trove of secretly recorded conversations has already been the highlight of trials in Alaska, but the size
of its cqllection against Stevens has until now been unclear. The sometimes-graphic conversations between hard-
drinking o-i1 contractors and corrupt Alaska politicians helped the Justice Department send three state politicians
to prison.
The calls involving Stevens could be played in court this month when the Senate's longest-serving Republican
stands trial on charges of lying about hundreds of thousands of dollars in home renovations and other gifts he
received from an oil contractor.
The FBI did not tap Stevens' phone but did tap several phones belonging to contractors In the case. Out of 2,800
intercepted phone conversations, Stevens was recorded 105 times, his attorneys wrote in court documents.
Though Stevens is not charged with bribery, prosecutors want jurors to hear about a close relationship with
Stevens and Veco founder Bill Allen. They want to portray Allen as an influence-buyer with a direct line into
Stevens' Phone conversations between the two men could help that case.
His attorneys began laying the groundwork for a future argument that those calls should not be admitted into'
evidence. FBI agents can only tape conversations related to people or topics named.in a warrant. The Justice
Department did not name Stevens as a wiretapping target, his attorneys wrote, "yet it appears to have targeted
his phone
Stevens' attorneys object to the government's pla-n to present evidence that Stevens not only accepted gifts and
services from Veco but also used his Senate seat to help the company's interests.
"The government obviously wishes to import the stench of a bribery prosecution into a case that is nothing of the
sort," attorney Robert M. Cary wrote.
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US Senate has final' say if Stevens is convicted
CONSTITUTION: Only a two-thirds majority vote can expel a sitting
By STEVE QUINN
The Associated Press
(09/01/0801:49:51)
If Ted Stevens is convicted in his federal trial next month, his name will still appear as the .Republican candidate
for Senate on Alaska's November election ballot..
And if the 84-year-old Stevens then wins his seventh full term and refuses to resign, it could farrto his colleagues
to whether he should, be expelled.
"Once the jury has rendered a'verdict, the Senate has a constitutional right to consider the qualifications of the
member/, said Don Ritchie, an associate Senate historian.
It would take a two-thirds vote of the Senate to expel Stevens.
No sitting senator has been removed in 146 years. The last was-Indiana Sen. Jesse Bright in 1862.
Others facing expulsion, like Oregon Sen. Bob Packwood in 1995, resigneq before the Senate took a vote.
Stevens, whose'trial starts Sept. '22 in Washington, D.C., said it won't come anywhere near that.-
He will not discuss stepping down, withdrawing from the race or qu,itting the Senate. His plans are simply to first
win in court, and then at the polls. .
"Put this.. down: That will never happen -- ever, OK?" Stevens said. "I am not stepping down. I'm going to run
through'and I'm going to win this election. .
" ,
"Th'e coury: case is going to go on. 'Whether- it's finished or not, I'm still going-to run for re-election, OK?"
Federal prosecutors allege Stevens failed to disclose more than $250,000 in home renovations and gifts from
executives at oil services contractor Veco Corp.' .
Stevens, the Senate's.longest-serving Republican, has pleaded not guilty.
Ritchie said fellow seflators usually do not intervene while elections or court are pending.
"They've always waited until the legal process is complete and voters had their say," he said. "Once they're
elected, the only judge of qualifications to serve is the U.S. Senate."
Stevens satisfieq voters. from his party Tuesday, capturing 63 percent of the vote and defeating six opponents.
After winning his primary, Stevens quickly proclaimed the Nov. 4 election a "piece of cake."
Stevens faces a staunch opponent in November, Anchorage Mayor Mark Begich, who is popular and has the
backing of the national DemocratiqJarty. FBI - Stevens-2029
Begich will seemingly have the state to himself to campaign while Stevens is on trial in late September and early
October. OiD
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I3egich in Hie campaign so 'far has avoided 'calling corruption charges, saying he. believes
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A!ask;Qs wiH vote for him, not necnarily against Stevens.
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"What people want to talk about are issues of energy, of health care and of taxes. That's where I'm going to go,"
Begich said.
Steven$ has attempted to paint Begich as a liberal aligning with interest outside the state, including "extreme
environmentalists." .
If Stevens is re-elected after a conviction but then resigns from the Senate or is expelled, Alaska Gov. Sarah
Palin would. be required to call a special election.
,That's a relatively new provision in state law, driven when former U.S. Sen. Frank Murkowski won the
gubernatorial race in 2002 and then appointed his daughter, Lisa Murkowski, to his seat.
Alaska residents were upset with what they saw as nepotism. A voter initiative ended gubernatorial appointments
to vacancies in 2004, the same year Murkowski successfully won her first full term in the S ~ n a t e by defeating
former Gov. Tony Knowles.
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Stevens lawyer seeks access to evidence
By RICHARD MAUER
(09/09/08 15:55:06)
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An attorney defending Sen. Ted Stevens against felony disclosure charges argued in a filing today that the
government's failure to provide an advance look at evidence risks jeopardizing the, fast-approaching trial.
In a motion to compel the government to turnover the material, Robert Cary; accused prosecutors'of "dilatory
tactics" that could jeopardize Stevens' right to a fair trial.
The case is being heard in Washington, D.C., where Stevens files his annual financial disclosures. He's charged
with seven counts of i'ntentionally submitting false ones over the years by omitting gifts and benefits worth more
than $250,000 from friends and favor-seekers, chief among them Bill Allen, former chairman of the oil-field
services company Veco.
U.S. District Court Judge Emmet has schequled a heari'1g tomorrow on at le?st a half-dozen significant
issues that have arisen over'the last month, including the motion filed today.
Though the motion was filed Tuesday, it was dated S,ept. 2, aweek earlier. Cary didn't respond to an e-mail
message seeking clarification. .
: Cary' argued that Supreme Court decisions protecting defendant'rights require the government to turn over
evidence in its possession that could show Stevens wasn't guilty of the crimes charged. The defense also
demanded information that could be used to impeach government witnesses.
For instance,' Cary, demanded the government provide any information involvifl9 a state investigation of Bill Allen
for sexual abuse of a minor.
The'Deiily News in' F§!Qruary, that !n 2004, Anchorage polic,einvestigated whether Bill Allen had sex in the
1990s Y"itli agirl wno was under 16, a felony without a statute of limitations. The case was closed at,the request,
of federal prosecutors when the girl, by then an adult, 'had become the chief witness in federal case involving a
sex-and-cocaine ring. A federal prosecutor told the Daily News last year that he feared the police would become
distracted by pursuing Allen, jeopardizing the drug and sex case already at
Anchorage police reopened their in December, then suspended it when witnesses couldn't be
located.
In his filing, Cary demanded the government provide details about "the pendency of any investigation (into
sexual abuse by Allen), whether it was quashed, why it was quashed, and when it was quashed," because all that
is relevant to Allen's credibility.' FBI -
"His cooperation with the government, and the of his, testimony,may well be:driven by-a belief; wlietner - --
, justified.or not; that his as'sistarice to'the government would guarantee him immunity or leniency in the state
investigation," Cary wrote. " .
Cary'also alleged the government knows about a "purportedly false affidavit" signed by David Anderson, :BiII
. Allen's'nephew and an expected witness. The affidavit, submitted in an unrelated case, contains a claim by
Anderson th'at "the government has provided him and his friends and family with a broad grant of immunity in
exchange for his testimony in this case." '
A'1derson hC!s reporters thathe was one the. ."YQr:!<.ers sent byAllen.!o fenovate·ary,d.furnish Ted Stevens'
.. home in Girdw,ood.starting in 2000. Aridersonlal:e'fnad a major falling-out with Allen over a girlfriend and other
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ft,.lIen was quest.ioned a trial last year whether he kill Anderson. Allen denied it..
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Cary also demanded any plea agreements the government may have entered into with Anderson and another
Veco worker on the Stevens home project, Rocky Williams. In an earlier filing, the Stevens defense team
acknowledged being told by the government there were no such deals. But they questioned whether there were
informal understandings.
Cary also challenged audio tapes made of intercepted phone calls of Sen. Stevens. He said that if Stevens wasn't
the. designated target in wiretap authorizations signed by a judge, the evidence contained in them should be
suppressed. But the government has so far failed to provide the necessary information about the recorded
conversations to make that'determination, he said -
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Judge rejects move to dismiss Stevens charges
By ERIKE BOLSTAD
(09/10/08 13:59:,45)
WASHINGTON .-- All the bluster about "dilatory" tactics aside, it looks as though Sen. Ted Stevens will go to trial
in two weeks, as scheduled and in the midst of his re-election bid.
Lawyers for the Alaska Republican tried but failed Wednesday to have the corruption case thrown out on grounds
it is unconstitutional and that some counts in the indictment were outside the statute of limitations. '
Stevens, 84, faces seven felony counts of knowingly taking home repairs and gifts worth more than $250,000
from the oil field services company Veco Corp. and failing to report them on his annual U.S. Senate disclosure
forms.
Jury selection is scheduled to begin Sept. 22.
U.S, District Court Judge Emmet Sullivan ruled against most of the motions filed by Stevens' lawyers, including
one that would have stricken language in the indictment that suggests he accepted gifts and renovations from
Veco in exchange for legislative favors for the company.
Sullivan is expected to issue additional rulings on two key is'sues leading up to the trial. He will determine
whether evidence in the case violates constitutional separations that keep lawmakers from being prosecuted for
their legislative actions in the halls of Congress. He'll also rule,on whether prosecutors can introduce a wide array
of other evidence to boost their case, including showing that Stevens hid a $31,000 loan from a friend and then
parlayed it into·$129,250 in real estate gains, '
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Stevens' alleged gift list grows
EVIDENCE: $'l,OOO'sled dog among items not disclosed by senator, prosecution says.
By RICHARD MAUER
.rmauer@adn.com
(09/08/0823:53:41)
Federal prosecutors revealed more evidence Monday in their case' against U.S. Sen. Ted Ste'(ens, detailing a new
round of gifts that he allegedly failed to disclose .between 2001 and 2003.
, ,
In a filing in U.S. District Court in Washington, D.C., the government listed the items as a $1,000 sled dog, a
$3,200 stained:-glass window and a $2,695 massage chair. They are In addition to the $250,000-plus in labor and
materials allegedly prOVided by the oil-fieid service company Veco Corp. when it renovated and furnished .
Stevens' Girdwood home starting in 2QOO.
Monday'S filings from each side asked U.S. District Judge Emmet Sullivan to adopt its version of the case to be
read to prospective jurors when they gather in two weeks for Stevens' trial in Washington, D.C. The statement of
the case is supposed to be a neutral rendition of the issues at trial, but each side clearly for advantage.
Sullivan may choose one or the other, or draft his own version, steering somewhere between the advocates, who
also submitted competing jury instructions Monday In advance of the trial. '
, ,
II') a separate motion, qs!<ed Sullivan to order the release of the medical records of Bill Allen,
former chairman of Veco, who' suffered 'a head injUry in a, motorcycle' accidenfln'2:o6i. Alieni
who pleaded guilty to bribing state legislators and who is expected to be'the chief witness against Stevens, said
in testimony In state court last year that he had trouble speaking because of the accident, though he could think
clearly.
Stevens' attorneys disclosed they had sought a voluntary authorization from Allen to allow them to inspect his
medical records at Providence Alaska Medical Center in Anchorage and at ucLA Health Systems in Los Angeles,
by.a neurologist and .neurosurgeon. Allen's, lawyer, Bob Bundy,turned-tnem.down.
Stevens has contended he is innocent and will be vindicated by a jUry. He has asked for a speedy trial, hoping a
verdict in·his favor would be rendered before the November election. Stevens, the longest serving Republican
senator, is seeking his seventh full term; faces Anchorage Mayor. Mark Begich, a Democrat, on Nov. 4.
The governm'ent took a half-page in their document to describe the Girdwood renovations, telling how a floor was
added to Stevens' home along with:a wrap-around deck, new rooms, and major' eiectricai and plumbing work.
DISMISSES NEW LIST
FBI - Stevens-2034
In their version of the statement of the case, Stevens' lawyers devoted only a seven-word phrase in a single
sentence to the renovations. They used more words for the newly reported items, but spoke dismissively of .
.
"The government further alleges that.Sen. Stevens knowingly and willfully failed to report an alleged gift of
stained glass, knowingly and willfully failed to report an alleged gift of a dog, and knowingly and willfully failed to
report an alleged gift of a chair/, Stevens' attorneys ,wrote. '
The chair wasn't just,a chait, the g,overnment said, but a $2,695 massage chair given to Stevens 'by a friend I)...
identified only as "Person A.. II The chair was placed in Stevens' home in Washington, it said., .- OJ
The stained glass wasn't just stained glass either. It was a":hand-designed, hand-constructed stained glass
window specificat!ons,pn>vided,by,ttle defendant,and, his for.'bY .given to
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And the dog wasn't just a mutt from the pound. It was an expensive sled dog Stevens got from "Person B" in
2003. The government alleg'ed Stevens misrepresented the dog as a $250 gift from the Kenai River
Sportfishing Association, a group closely associated with his friend, Bob Penney. In his 2'003 9isclosure, Stevens
said the dog was "an honorary award in recognition of public service" and that he had purchased its twlnJor
$250.
In asking for authority to subpoena Allen's'.medical records, Stevens' attorneys said that "understanding the
scope and severity of Allen's brain injury is highly significant to the preparation of the defense."
Citing his testimony in the trials of two legislators that resulted in convictions, the attorneys added, "History has
shown that, when Allen is called as a government Witness, the government typically begins by eliciting his
testimony that he was involved in a motorcycle accIdent in 2001 that impacted his speech, but otherwise left his
brain function unaffected. The defense is certainly entitled to test the accuracy of Allen's account and. determine
whether Allen's memory or ability to perceive were impacted when 'abput a quarter' of Allen's brain 'died' In the
accident," they said, using Allen's own descriptions of his injuries.
Find Richard Mauer online at or call 257-4345.
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Stevens lawyers protest delays
EVIDENCE: Defense says tactics could jeopardize
By RICHARD MAUER
rmauer@adn.com
(09/10/0801:34:35)
An attorney defending U.S. Sen. Ted Stevens against federal charges argued Tuesday that the government's
failure to provide an advance look at evidence risks jeopardizing the fast-approaching trial.
In a motion to compel the government to turn over the material, Robert Cary accused prosecutors of "dilatory
tactics" that could jeopardize Stevens' right to a fair trial.
'But the government, which is prosecuting Stevens in Washington, D.C., on seven counts of filing false annual
financial disclosures, dismissed the defense claims as being "without merit."
U.S. District judge Sullivan has scheduled a hearing today on at least a half-dozen significant issues that
have arisen over the last month, including the motion filed Tuesday. Stevens' trial is set to start with jury
selection on Sept. 22 and is expected to last about a month.
Under that. schedule, trial would end just a week or so before election day, Nov. 4, when Stevens, the
Senate's longest serving Republican, is standing for his seventh full term against Anchorage Mayor Mark Begich,
a Democrat.
Stevens is accused of intentionally failing to disclose gifts and benefits worth more than $250,000 from friends
and favor-seekers, chief among them Bill Allen, the former chairman of th.e oil-field services company Veco Corp.
Allen has pleaded guilty to bribing Alaska legislators and will be one of the government's chief witnesses against
Stevens.
ALLEN INVESTIGATION
In his filing, Cary argued that the governrrfent's obligation to turn over evidence that would be favorable to
Stevens -- or damaging to the YJitnesses against him -- should include information about an Anchorage
investigation of Allen for sexual abuse of a minor.
The Daily News reported in February that in 2004, police investigated whether Allen had sex in the
1990s with a girl who was under 16.. The case was closed at the request of federal prosecutors, when the girl, by
then an adult, had become the chief witness in a .federal case involVing a sex-and-cocaine ring. One of the feder:aI
prosecutors told the Daily News last year that he had-feared the police working on the federal investigation would
_become distracted by pursuing Allen, jeopardizing the drug and sex cas.e already at 'ffild.= Stevens-2036
Anchorage police reopened their investigation in December, then suspended it when witnesses couldn't be
located.
-Cary demanded the government provide details about "the pendency of any investigation (into sexual abuse -by -
Allen), whether it was quashed, why it was quashed, and when it was quashed," because all that is relevant to
Allen's credibility.
"His cooperation with the government, and the nature of his testimony, may. well be driven by a belief, whether
justified or not, that his assistance to the government would guarantee him immunity or leniency in the state
investigation," Cary wrote. . 4
But in its reply to Cary, filed shortly after 6:30 p.m. in Washington by Brenda Morris, principal deputy chief of the
Justice Department's Pub(Jc'IntegritySection, the government the sexual abuse-case shouldn't be
. - __' . __ Q
used to Allen. at the trial.a 0
"As thE!"Court knows/ the government has sought to limit cross-examination of Bill Allen concerning matters that
are hjghly inflammatory and prejudicial to the government/, she said. Nevertheless/ the government has already
provided some limited information about Allen to the defense/ and the defense could have read about the matter
in-the newspaper/ Morris said.
'FALSE AFFIDAVIT
Cary also alleged the government knows about a "purportedly false affidavit" signed by David Anderson, Bill
Allen's nephew and an expected witness against Stevens. The affidavit/ submitted in an unrelated case/ contains
a claim by Anderson that "the government has provided him and his friends and family with a broad grant of
immunity in exchange for his testimony in this case."
Anderson has told reporters that he was one of the key workers sent by Allen to renovate and furnish Stevens'
home in Girdwood starting in 2000. Anderson later had a major falling-out with Allen over a'girlfriend and other
issues, and Allen was questioned during a trial last year whether he wanted to kill Anderson. Allen denied it.
Cary also demanded any plea agreements the government may have entered into with Anderson and another
Veco worker on the Stevens home project/ Rocky Williams•. In an earlier filing/ the Stevens defense team
acknowledged being told by the government there were no such de,als. But the defense questioned whether there
were informal understandings.
Morris sai9 there none, and the defense knew it.
"Defendant's decision to petition the Court to compel production of nonexistent materials Is an abuse of process
and should be denied," she wrote. .
Cary also audio tapes made'of intercepted phone calls of Stevens. He said that if Stevens wasn't the
designated target in wiretap signed by a judge, the evidence contained in them should be
suppressed. But the government has so far failed to provide the necessary information about the recorded
conversations to "Jake that determination, he said.
Morris said the government provided everything that was required by law. And she ridiculed a demand by the
defense that the government turn over data that would identify each photograph taken in Stevens' house during
a government raid last summer.
"In support of this argument, defendant appears to claim that he can only understand, and thus make use of,
these photographs if he has a log identifying what photographs are," wrote. "But these photographs
are not murky, covert snapshots of an unknown crime scene; rather, they are photographs of the.defendant's
house. Again/ defendant is clutching at straws."
With its 22-page response, the government also filed 68 pages of letters and e-mails between prosecutors and
defense attorneys concerning the exchange of evidence. In one, there's a reference to videos taken from
cameras hidden in a kitchen and a living room, though there was no explanation.
That reference appeared to indicate the existence of previously undisclosed FBI surveillance cameras. Video from
inside Veco's suite at the Baranof hotel in Juneau played a significant role in convicting two state legislators last
year of taking bribes from Allen. '
FBI - Stevens-2037
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Judge orders Stevens prosecutor$ to simplify evidence
By ERIKA BOLSTAD
(09/12/08 15:45:31)
WASHINGTON - Sen. Ted Stevens' legal team complained that government lawyers had given'them unwieldy
electronic versions of more than 15,000 potential pieces of evidence in the Alaska Republican's corruption trial.
Now they'll be flooded with paper.
A federal judge today ordered that government lawyers turn over nearly everything on paper so Stevens' lawyers
can have it in a more format this weekend in time to prep'are for the senator's Sept. 24 trial.
"You'd have the same complaints if they gave you that information (in the same way), the same complaints,"
U.S. District Judge Emmet Sullivan told Justice Department prosecutors Friday, during an emergency hearing
called just a few hours,before it began.
Stevens, 84,.faces seven felony counts of knowingly taking home repairs-and gifts worth-more than $250,000
from the now-defunct oil-services company Veco Corp. and failing to report them on his annual Senate disclosure
forms. ,Jury· selection is set to begin Sept. 22 and the trial is scheduled to begin days later.
In their Jiled this morning, Stevens' lawyers Alex Romain and, Robert Cary:complalned that the
goy-ernment's "ganiesmimship and 'hide-the-ball tactics' undermine the fairness of the upcoming trial."
Their specific complaint was that the government produced 15,038 pages without "load files," ,the electronic
equivalent of staples, clips and folders. There's no way to differentiate where one document begins arid
ends, Stevens' lawyers said.
\
They also were that some elec,tronic fa.')lloJ_search, tt!.em ,
electronically. To find as-pecific document in a file taKen from computers, they must
read the whOle tning b-ecause they cannot search-it eiectronically by key word.
Prosecutors were clearly frustrated with Stevens' lawyers, although they stopped short of using the
"gamesmanship" language employed by the defense te'am. His lawyers' concerns' could all have been addressed
without the emergency hearing, argued Brenda Morris, the lead federal prosecutor. '
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.
"Just because he has 'U.S. Senator' before 'his name doesn't mean we have to drink out of a fire hose every time
they call us/' she said.
Not so fast, scolded Sullivan, who just prior to the Stevens' hearing heard a petition from a Guaotanamo detainee
who had been on a hunger strike for three years and whose lawyers were trying to wrest their client's medical
records from-the government. Stevens is getting the same deference all defendants get in his courtroom, Sullivan
saio, although the senator's request for speedy trial before the' election has moved things at a brisker pace than
, ,-most criminal trials. -- - - -- - ---
"This defendant's not being treated any differently than anyone else," Sullivan said._ "No other cases have been
moved. I wouldn't 'do that for anyone. I wouldn't do that for anyone because of their status."
But Sullivan seemed to be slightly annoyed, too.·On Wednesday, he told the lawyers to work out their disputes
among themselves and not bother him with trivial quarrels over evidence, and told them h'e wished they'd tried ?.
harder to avoid such hearings. 'bQ "/
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He to a requr.-\by Stevens' lawyers to receive eVidence about when investigators
questioned certain witnesses. TheUno precedent for them receiving wh\.Are known as "form 302's,"· .
documeMs that detail the information gleaned by FBI agents when they interview witnesses, including the time
and place. They've already given Stevens' lawyers a list that has much of that information, Morris said.
"Yet another example of drinking out of that fire hose," she said.
, "
Stevens' lawyers indicated that when Sullivan holds a hearing next week to discuss what eVidence will be allowed
at trial, they will work to exclude some photographic eVidence. They've asked for the "metadata" on thousands of
photos taken the day FBI and IRS agents raided Stevens' home in Girdyvood.
They plan to have an expert who has written a textbook on crime scene photography explain how certain camera
angles and lenses could make the home appear larger than it actually is, Cary said, describing it as a "small log
cabin."
Isn't it a "chalet?" asked Sullivan.
"It's a chalet, but it's modest," Cary said.
"We didn't call it a chalet; they called it a chalet," Morris said, adding that investigators "didn't take pictures to
make it look better." .
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FBI - Stevens-2039

adn.comI Stevens loses attempt to have trial thrown out
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Stevens loses attempt to have trial thrown out
The Associated Press
(09/16/0813:52:37)
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WASHINGTON, D.C. -- Alaska Sen. Ted Stevens has lost a final attempt to get his upcoming corruption trial
thrown out.
U.S. District Judge Emmet Sullivan ruled that the trial will start next week, with jury selection beginning Monday.
Stevens is charged with lying on Senate records abqut gifts and home renovations from Veco Corp., an oil
pipeline services company. Stevens, who is running for re-election, has pleaded not guilty and wants the trial
finished by Election Day..

Sfevens' lawyers had argued that the whole case is based on information related to his work as an Alaska
seF'!a.tor. They also said the government wants to introduce evidence that would require Stevens to talk about his
s:iftGlal work to defend himself.
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Copyright @ Tue Sep 16 13:58:19 UTC-0800 20081900 T!le Anchorage Daily News (www.adn.com)
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9/16/2008
Stevens court case still ono;"dge decides
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Anchorage Daily News
Stevens court case still on, judge decides
RULING: Selection of jury begins Monday after final hearing.
By ERIKA'BOLSTAD
ebolstad@adn.com
(09/17/0801:54:51)
Page 1 of2
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IWASHINGTON -- Sen. Ted Stevens won't be able to argue that evidence in the federal corruption case against
hirrrviolates constitutional separations that keep lawmakers from being prosecuted for their legislative actions in
the hMls of Congress.
[" -
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A federal judge on Tuesday turned down his lawyers' request to throw out the seven-count indictment against the
senator, and he said in a hearing that if evidence arises at trial that looks as though it violates what is known as
the speech-or-debate clause of the Constitution, he will consider barring it. '
But it was Stevens' lawyers' job to show he's entitled to immunity under the speech or debate clause aJ:\d they
failed to do so, said U.S. District Court Judge Emmet Sullivan. Previously, the senator's lawyers had suggested
that investigators could have overstepped their authority by interviewing Stevens' past and current legislative
staffers . - - -- -
Sullivan reviewed grand jury transcripts-to determine whether witnesses were asked, questions that would have
violated the _speecll or debate clause"which limits what sort of evidence executive branch investigators can use
when they probe acts'by-members of Congress. He said'he saw-a handful, but-it-was "in no'way p-ervasive."
in the of a re-election,bid, didn't attend the court hearing However, he was in
\Vast)ingtbn D.C., in the Capitol. The 84-year-old,Alaska Republican faces Anchorage Mayor Mark Begich, a
rferri8crat;'in the Nov. 4 election.
'-,I'
Stevens faces seven 'felony counts alleging ,he knOWingly took home repairs and gifts worth more than $isO,ooo
from- thenow-defunct·oil-services=company-Veco·.Corp. and, Bill Allen, its- former CEO. Pros_ecutors.said_that Allen,
who pleaded guilty to -bribing state lawmakers-in Alaska, is expected to be one of the first.witnesses in the case
against Stevens.
, Sullivan also said Tuesday he would allow evidence from prosecutors that details what Stevens did in his role as
.an officE?holder to help Veco. They include evidence he helped the company. land federal contracts and grants,
evidence he tried to influence the state in its efforts to build a natural 'gas pipeline, and communication between
his office and company. -
Sullivan did tell prosecutors that they have until today to turn over redacted versions of what are known as "form
302s," the documents that detail the information gleaned by FBI agents when they interview witnesses, including
-.the time and place and what they from their questions. FBI - Stevens-2041

Tf{er:e,:are',hundreds of the forms, warned one of the prosecutors, Edward Sullivan. Allen alone "has been spoken
fOfrn.any;.many- times," Sullivan said. __ __, _ _. _ _ , _ _ _ _ _ _
,H
.
Tuesday's hearing was an effort to resolve evidence before the trial; Sullivan cautioned he wanted
as many of the questions settled before the trial as possible so they don't bog down its progress.
"This process has to be a meaningful one," Sullivan said. "I don't want to start this thing and still be doing it New
Year's Day." - I
Sullivan will take up the remaining issues Thursday in the final pretrial hearing before trial. Jury selection
-http://www.adn.cominews/politics/fbilstevens!v-pririte-ristOry/528512Jitml ,q'1+-f).,I\I-l '16 7.;) _ N\ -
adn.com j Stevens court case still on)j"Udge decides
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begins\Monday; the trial is set to J n two days later.
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Lawyers a,rgue over wiretaps in stevens case
By RICHARD MAUER & ERIKA BOLSTAD
Daily
(09/18/08 15:10:27)
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WASHINGTON - Defense and prosecutors in Sen. Ted Stevens' criminal disclosure case wrangled today over the
admissibility of a wiretapped conversation in which two of Stevens' friends spoke of his aversion to ope'ning his
own wallet. . .
"Ted gets hysterical when he has to spend his own money," Alaska restaurateur Robert Persons told the former
chairman of oil-field services company Veco Corp., Bill Allen, in a conversation overheard by the FBI and quoted
in court by a prosecutor. '
Persons, founder of the Double Musky Inn restaurant In Girdwood, told Allen there was a reason for Stevens'
relu<:tance: the senator really afford to pay a bunch of money," he said. .
The prosecutor, assistant U.S. Attorney James Goeke of Anchorage, didn't cite adate for that conversation,
was it directly connected to Dig remodeling pr9ject at Stev.ens' home in Girdwood.
I • •
Ji.nl:,.
qmversatil?n was about a.n by the. men. and in a partnership that. owned a
lh'qrgughOred. But the government. says it illustrated a consistent pattern of behavior reflected in Stevens' seven-
count indictment. Stevens' defense says the conversation, .and others the'government is seeking to play to a
JUrY, is irrelevant and prejudicial. -
The government has Stevens of taking ,more than $250,000 in labor, materials and furnishfngs from
'Veco and Allen starting in 2000, then failing'to report the gifts on his annual Senate disclosures. His trial will
begin Monday in Washington with at least two days of jury selection.
Allen has pleaded guilty to bribing state legislators and is expected to be a key wi.tness against Stevens. 'p'ersons
has testified before a federal grand jUry under subpoena but has expressed reluctance to speak ill of Stevens,
whom he still·considers a friend. Persons lives above his Gir'dwood restaurant and routinely kept an eye on
Stevens' home when Stevens and his Wife, were in Washington.
The conference Thursday before U.S. District Court Judge Emmet Sullivan was called to allow
defense and prosecution to bring up unresolved'issues of evidence, law and procedure. Sullivan decided some
but left 'others for the trial itself. FBI - Stevens-2043

rUled that the defense was entitled to review the medical records of Allen's 2001 motorcycle acCident,
Wlien he'suffered a serious head injury. Allen, testifying last year in Anchorage at the trials of two state
'fegislators, said the accident impaired his speech but not his memory or intellectual ability. Sullivan ordered both
,sides to respect Allen's privacy and n,ot disclose anything publicly until he rules whether the medical information
is relevant·. - - - -- . - _. . -- _. - - - .. ,-- - - -
Also for reasons of privacy, Sullivan said, the government shouldn't enter evidence all 2,200 pages of Stevens' ,
personal financial information,. inclUding credit card receipts. The government said the records would show that
Stevens never paid Veco for the items it purchased for him,but Sullivan said the government should find another
way to prove that. '
The Persons-Allen phone call was among eight recorded conversations of third-party conversations that the
defense sought to keep fromthe jUry. Defense attorney !=ary characterized the call as "triple hearsay;' as
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adn.com I. argue over Stevens case
it Stevens. U
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-Stevens, Persons, Allen, Allen's son Mark and six other friends created a company called Alaska's Great Eagle LLC
'hl';2004 to own race horses. Persons, who managed the partnership, was concerned about having to ask the
for more investment money.
sUn!,1 ,. .-.
call, Washington lobbyist Richard Ladd told Allen that Stevens had asked him to call to see if he could
'get a job for one of Stevens' sons.
The FBI began tapping Allen's phones in 2005 during the covert stage of its investigation of public corruption in
Alaska. The investigation became public in a series of raids in August 2006. Among the targets was the legislative
office of Ted Stevens' son Ben, then the president of the Alaska State Senate.
Sullivan again addressed Stevens' protections under the Constitution's Speech-or-Debate Clause, which prevents
prosecutions for normal legislative activities. Sullivan ha'd earlier rejected a bid by Stevens to dismiss his
indictment under the clause, but on Thursday said it still could bar the government from introducing some
evidence. He told the defense it could make objections each night based on expected evidence to be introduced
the next day of trial.
Copyright © Thu Sep 18 15:20:35 UTC-0800 20081900 The Daily News (www.adn.c:om)
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Judge's rulings lean toward privacy
STEVENS: Sides dispute use of credit card records, Allen motorcycle injuries in trial.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(09/19/0804:11:09)
I: rulings
WASHINGTON -- Defense lawyers anq prosecutors in Sen. Ted Stevens' criminal disclosure case wrangled over
the admissibility of a wiretapped conversation Thursday where two of Stevens' friends spoke of his aversion'to
opening his own wallet.
"Ted gets hysterical when he has to spend his own money," Alaska restaurateur Robert Persons told Bill Allen, the
former chairman of oil field services company Veco Corp., in a conversation overheard by the' FBI and quoted in
court by a, prosecutor. i
t,,-
of Girdwood's Double Musky restau;ant, told Allen there was a reason for Stevens' reluctance:
The Senator "can't really afford to pay a bunch of money," he said.
. -
The prosecutor, assistant U.S. Attorney James Goeke of Anchorage, didn't cite a date for that conversation, nor
was it connected to Veco's remodeling project a,t Stevens' home'in Girdwood.
Instead, the conversation was about an investmel'Jt by three fDefl and others in a partnership that owned a
thoroughbred race horse. But the government says it'illustrated a'consistent p,attern of behavior reflected· In
Stevens' seven-count indictment. Stevens' defense says the conversation, and others the is seeking
to play to a jury, is irrelevant and prejudicial.
The government has accused Stevens of taking mQre than $250,000 in labor, materials and furnishings from'
Veco and Allen starting in 2000, and then failing to report the gifts on his annual Sen,ate disclosures. His trial
begins Monday in Washington with at least two days of jury selection.
has pleaded gUilty to bribing state legislators and is expected to be a key ·witness against Stevens. ·Persons
before a federal grand jury under subpoena but has expressed reluctance to ill of Stevens,
considers a friend. Persons lives above his Girdwood restaurant and routinely kept an eye on
when Stevens and his wife, Catherine, were in Washington.
PRIVACY ISSUES
The open-courtroom,conference Thursday before U.S. District Court Judge Emmet.Sullivan was called to allow
defense and prosecution to bring up unresolved issues of eVidence, 'law and some
questions but left others, including that of the tapes, for the trial itself.
Sullivan ruled that the 'defense was entitled to review the medical records of Allen's 2001 motorcycle accident,
when he suffered a serious head injury. Allen, testifying 'Iast year in Anchorage at the trials of two state
- legislators, said the accident impaired his speech but not.his-memory- orintellectuaLability. Sullivan ordered both
sides to respect Allen's privacy and not disclose anything publicly until he rules whether the medical information
is relevant.
reasons of privacy, Sullivan said the government shouldn't enter as evidence all 2,200 pages of Stevens'
information, including credit card receipts. The government said the records would show that
never paid Veco for the items it purchased for him, but Sullivan said the government should find-another
prove that. '- .<; 0 '1
hftp:/{www.ad·n.con1.ltecl-stevenslV-priiltei/stbry/530882.Htful
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I·Judge's rulIngs lean Page 2 of2
The'Persons-Allen phone call was Ung eight recorded conversations oDd-party conversations that the
defense sought to keep from the jury. Defense attorney Robert Cary characterized the call as "triple hearsay" as
it related to Stevens. '-
Stevens, Persons, Allen, Allen's son Mark and six other friends created a company called Alaska's Great Eagle LLC
in 2004 to own race horses. Persons, who managed the partnership, was concerned about having to ask the
others for more investment money.
In another call, Washington lobbyist Richard ladd told Allen that Stevens had asked him to call to see if he could
get a job for one of Steyens' sons. .
The FBI began tapping Allen's phones in 2005 during the covert stage of its investigation of public corruption in
Alaska. The investigation became public in a series of raids in August 2006. Among the targets was the legislative
of Ted Stevens' son Ben, then the president of the Alaska State Senate. .
I

again addressed Stevens' protections under the Constitution's Speech-or-Debate Clause, which prevents
p?osecution for normal legislative activities. Sullivan had earlier rejected a bid by Stevens to dismiss his
indictment under the clause, but on Thursday said it still could bar the government from introducing some
evidence. He told the defense it could make objections each night based on expected evidence to be introduced
the next day of trial.
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Stevens wants to testify at his trial'
BUSY TIME: Alaska senator discusses state projects, economy before heading to D.C.•
By KYLE HOPKINS
khopkins@adn.com
(09/20/0804:02:17)
Sen. Ted Stevens said he intends to testify at his federal corruption trial, which begins with jury selection
Monday, but he said .the final decision will be up to his lawyers. .
Stevens spoke briefly.about the trial with reporters Friday in Anchorage whi,le talking about defense spending in
Alaska, the tanking economy and his plans for the next two months. .
The Republican senator is running for re-election even as he's scheduled to defend himself against seven federal
counts of failing to report gifts from Veco Corp. He said he plans to return to A!aska several times In October,
but he will have to be back in D.C. a'day before scheduled court appearances..
The coming will be a busy one for Congress, he said. "I intend to go from the court to the Senate and be
there every afternoon, evening."
Ste.vens listed several' Alaska projects in the defense spending bill now before Congress, including:
• $10 million to plan for a "coal-to-Iiqtlids facility" at E'ielson Air Force Base. The idea is.to convert coal into
aviation fuel. - '"
• $16 million for a "C-17 assault'landing zone" at.Fort Greely. Stevens said the landing zone would be.used by
the cargo aircraft in emergencies. .
• $10 million to "continue the modernization and expansion" of-the Port of Anchorage,
The Hill, a Washington newspaper, reported this week that Stevens topped the list of Senators with the most
earmarks-in the defense appropriations bill with a total of about $215 million in spending. - - -
Tne Republican presidential candidate, Sen. John McCain, and running mate Gov. Sarah Palin, have criticized
some earmarks on the campaign trail. But Stevens defended the military spending in Alaska -- it's been part of
his campaign message -- as and forward-thinking. .
"Six of the seven largest armies in the world are in fact Pacific nations. We are going to see a buildup in this state
to keep us prepared to deal with the contingencies of this century," he said.
• ?
Stevens spent much of the press conference on the larger story this week. _.: the teetering global
economy.
FBI - Stevens-2047
- "I think we're on-the-precipice of-a meltdown," he-said.__
As the Bush admjnistration announced plans for a massive bailout that would see the federal government taking
over worthless mortgages and bad debt, Stevens said questions of what to do with the economy has the potential
. to engulf Congress. -' .
. .
,
He said he'd participated in a teleconference with Treasury Secretary Henry Paulson, who described the
Bush administration's plans. Stevens said he expected,the pla-n to be controversial but that Paulson "fairly well
_ convinced me this situation has reached the whereyou'either do something now, or wait for sometl;ling
." -worse.'" . .' _.- S! 0
___ •[1f111--4-N-tJ62o....
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Mark Begich, Democratic opponent in the Nov.nlection, said.Friday the
country's economic woes can be to the door of Congress and its oversight.
"Now we're in a crisis mode, and I'm glad to see it seems on the surface they're going to work in a bi-partisan
way to hit this issue head on," Begich said. -
"But because they waited so long and because they weren't paying attention, taxpayers are going to pay a lot of
money for this."
Stevens planned to return to Washington D.C.· today.
"I expect to be home several times in October, and I pray to God that we're finished by November."
Find Kyle Hopkins' politicaf blog online at or call him at 257;-4334:
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@ Mon Sep 22 13:55:15 UTC-0800 20081900 The Anchorage Dally News (www.adn.com)
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Powerful lawmakers on Stevens trial witness list
Associated Press
(09/22/0808:11:17)
WASHINGTON - Several powerful senators and former Secretary of State Colin Powell are among possible
witnesses at the corruption trial of the longest serving U.S. Republican,senator.
Jury selection began Monday in the trial of the Sen. Ted Stevens, who has represented Alaska for more than 35
years. A federal judge listed dozens of people who might be called at the monthlong trial.
Among them are Democratic Sens. Ted Kennedy, Patrick Leahy ,and Daniel Inouye. Republican Sen. Orrin Hatch
is also on the list, as is Powell.
Stevens, who took his 'seat in the courtroom before the proceedings commenced, is charged with lying in S.enate
financial disclosure records about' hundreds of thousands of dollars in gifts and home renovations he received
from Veco Corp, an oil services company. On Friday, he urged people to reserve judgment until all the evidence
is in.
The senator at the time repeated that "I am innocent of the charges against me, and I think the trial will show
that."
Veco employees normally build oil pipeline and processing equipment. But company workers also led the
renovation, of the senator's home, a project that was overseen by Bill Allen, a longtime Stevens friend and now
the government's star witness.
Stevens, 84, says he paid every bill he received. and has pleaded not guilty to all seven counts. The senator has
pushed to get his trial completed before Alaskans vote Nov. 4 on his re-election.
The 150 potential jurors will complete a multipage questionnaire behin9 cl9sed doors before being questione9 by
lawyers on their sUitability for the monthlong trial. .
Stevens, who is looking to Win a seventh, six-year term, is in a tough race against Anchorage Mayor Mark BegiCh,
a Democrat. The longtime Republican lawmaker will have to stay in Washington during the trial, while Begich is
free to campaign around Alaska.
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Fight brewing in Stevens trial over CH2M Hill documents
By ERIKA BOLSTAD
(09/22/0809:31:20)
WASHINGTON -- The Colorado construction and engineering company that bought the oil firm at the
heart of· Sen. Ted Stevens' corruption trial is trying to keep from handing. over documents sought by.the Alaska
Republican's defense team.
Lawyers for CH2M HILL, which purchased Alaska-based Veco Corp. last year, don't want to make public some of
the evidence sought by Stevens' attorneys, including documents that show how new company is cooperating with
the federal corruption investigation. .
Jury selection began today and will continue tomorrow. The' trial itself will begin Wednesday in earnest.
Stevens' lawyers are looking for three things: communications between the company and prosecutors concerning
the Veco sale, documents that detail whether the company would be prosecuted itself for misdeeds, and
information that would show whether the company-'s former executives benefited by cooperating with the federal
corruption investigation.
Those executives include Bill Allen, Veco's former CEO, who was convicted of bribing state lawmakers but hasn't
been sentenced yet. Allen is expeCted to a pivotal witness in the senator's trial, as are recordings between him
and Stevens. -
Lawyers for CH2M HILL say that they're not obligated to turn over any of the material requested by Stevens'
lawyers, wOo have already asked the Justice Department for it. Prosecutors have not turned it over either, saying
that it's irrelevant to their prosecution of Stevens.
"Unsatisfied with the government's decision not to produce this very same informatlon...the defendant now seeks
these items from-il nonparty in- a backdoor attempt to circumvenUhe-government's'discovery obligations;"
lawyers for CH2M HILL wrote. .
Stevens' lawyers counter that because Allen "apparently conducted numerous illegal activities through VECO,
which have led to h(s conviction and that of several Alaska state officials, CH2M HILL's pun;:hase of VECO could
have exposed it to potential criminal indictment. Although an indictment would bean unwelcome event in the life
of any corporation, for CH2M HILL criminal charges would be particularly devastatingi because it is a government
contractor and faces debarment if indicted."
They want.the because they hope to show at trial that Allen had a as
a prosecution Witness, Stevens' lawyers wrote.
CH2M Hill, an employee-owned company, bought Veco last September, and the formal stock-purchase agreement
was filed publicly with the Securities and Exchange_Commission. The agreement showed that the Allen family and
two former Veco executives, Roger Chan and Peter Leathard, owned shares inVeco either- directly- or through-
trusts. - .
The Veco owners shareflln the proceeds according to their ownership percentages, with the Allen family together •
holding more than 80 percent, according to sales documents.
According to the CH2M Hill purchase agreement, the total value of the sale was $380 million. But after
adjustments, assumptions,of debt and the issuance of $15 million in CH2M Hill stock to Veco employees who
joined CH2M Hill, the.owners were left to divide $146 million in cash. .- CjJ
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Another $70 million was withheld tnpayable by 2010 -- a guarantee agan: hidden or unexpected issues
arising, in$:lueing the possibility could still be charged criminally\i a corporation.
,;;....
Allen has testified he tried to get immunity for the company but couldn't. In its SEC filing,'CH2M Hill said such an
event would be "potentially detrimental to CH2M' HILL's reputation in the business community or impact our
future business operations." The new owners said they would continue to cooperate with ongoing investigations
and have had a"productive dialogue" with the U.S. Justice Department.
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Stevens asks to leave courtroom for Senate
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(09/23/0809:57:02)
WASHINGTON - A federaljudge warned Sen. Ted Stevens that it might not be the'best id.ea to leave the
courtroom during the first week of his corruption trial, but that If he is needed in the U.S. Senate, he'll explain
the senator's absence to jurors. .@
"I would be remiss if I didn't bring this to your attention," U.S. District Court Judge Emmet Sullivan told Stevens
just beJore jury selection began this morning. "I think it's possible that some jurors may think someone is too
busy."
His lawyer, Brendan Sullivan, wanted the judge to tell jurors that if Stevens is leaving, it is because he is needed
in the Senate to help address the looming financial crisis. But the judge told him he would say only that if
Stevens is absent, he would instruct jurors that the senator simply wouldn't be there, but that there was nothing
wrong with it and they should 'not speculate about it.
Jurors paraded quickly through the courtroom this morning as the selection of individual jurors got under way in
Stevens' corruption trial. By -12:30 p.m, (Eastern time), the judge had reviewed 14 jurors and dismissed five.
Those dismissed included a lobbyist with Republican ties who said he believed he has met Stevens before and
that he worried that his political ties would make it difficult to overcome his bias in favor of the Alaska senator.
The lobbyist, who represents home-based businesses such as Avon and Mary Kay,cosmetics, described himself as
"a political animal." He has never lobbied Stevens directly but has probably been at the same events, he to,ld the
judge.
"I think it woul9 be hard for me to say I wouldn't have some inherent bias," the lobbyist told the judge, adding
later, "You come into this with certain biases and beliefs, but first and foremost you have the task at hand."
"I appreciate your candor, thank you," the judge said.
Stevens' lead attorney, Sullivan, appeared eager to keep him.
"This man seems to be knowledgeable, maybe opinionated ... " his attorney said. "He's exactly the kind of
thoughtful, honest juror that can follow the law and instructions.
But wanted him out.
FBI - Stevens-2052
"I believe he was, trying his best to be honest, but there is a struggle there... , He is a lawyer," said Brenda
Marsh, the lead prosecutor. "He has formed a bias in this case, he has indicated that in his line of work, ... and
he is very act.iveJn the ,Republican '
The judge also let go another potential juror, a teacher and Christian Scientist who said she had religious
objections to sitting in -judgment on someone. He also dismIssed a young man who has college courses that begin
every evening at 4.
---- ---------
"We don't want you to miss any classes," the judge said, adding that he would defer his jury service until mid-
June. ,.
I "That sounds pretty good," the juror said.
I
-- -- -- --
---------:---- ---- - - ----..-----
another juror who ties to .lawyers at Stevens' lav.t""ns, cmd one man who told him he .
thought it would be difficult to be people in Stevens' position be "held to a higher standard."
"I feel t/:1at I already have·an opinion on the case. Two people·from the oil company have already pled guilty to
bribery," the man said. "I don't know how I would remove the things I've already read."
But most potential jurors remained in the pool, including a woman who Stevens' defense team objected to for:
saying she thought public officials are "supposed to serve the people ... and they're not above the law. They
should always remember the people they're supposed to serve."
When asked by the judge whether "the fact that the senator has been indicted ... would you view that as
wrongdoing on his part?
"Do I feellik.e that means he's gUilty? No," the woman said, a response that kept her in the jury pool.
Another juror, when asked about his response on a questionnaire as to whether he had ever witnessed a crime,
had this to say: "If you see someone smoking marijuana at a party, that's a crime." The judge kept him in the
pool.
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FBI - Stevens-20S3
1--- ---- ----- ---- --- --------- ------- ----
_.;Fr0'!YfvllKE.JONES <miamottley2@gmailn>
Sent 'Monday, September 22, 2008 6:59
Subject on Stevens trial witness list
See bl09 towards tite end of the article.
o

Powerful lawmakers on Stevens trial witness list
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
WASHINGTON - A witness list read to potential jurors this morning suggested that a bevy of Sen. Ted Stevens' high·profile colleagues
would testify in his corruption trial.
The witness include his longtime friend and fellow World War II veteran Sen. Daniel Inouye, D-Hawaii, and three other Senate peers: Sen.
Patrick Leahy, D·Vt., S'en. Orrin Hatch, R·Utah, and Sen. Ted Kennedy, D-Mass. Former Secretary of State Colin Powell is also on the list. It
wasn't clear Monday whether the are witnesses for the defense or the prosecution. •
Also on the list: a Fairbanks strip club manager as well as the underage former mistress of of the chief witnesses, Bill Allen, and the @
Anchorage Police Department detective who is investigating the relationship between the two.
Monday, Judge Emmet Sullivan issued an order allowing Stevens to duck in and out of the trial in federal district court in Washington, D.C., if
he has Senate business to attend to. It's not clear whether he can leave to campaign; the 84-year-old senator is up for re-election and on Nov.
4 faces Democrat Mark Begich, the mayor of Anchorage.
Jury selection in trial began today and will continue tomorrow. The trial itself will begin Wednesday. Stevens faces charges that he
took more than $250,000 in labor, materials and furnishings from Veco and its former CEO, Allen, but failed to report the gifts on his annual
Senate disclosure forms.
, Meanwhile, the Colorado construction and engineering company that bought Veco is trying to keep from handing over documents sought by the
Alaska Republican's defense team. - - -, -
Lawyers for CH2M Hill, which purchased Alaska·based Veco Corp. last year, don't want to make public some of the evidence sought by
Stevens' attorneys, including documents that show how the company is cooperating with the federal corruption investigation.
Lawyers for C2HM Hill said in a motion filed Monday that they believe Stevens' defense team is conducting a "fishing expedition" for three
things: communications between the company and prosecutors concerning the Yeco sale, documents that detail Whether the company would
-be prosecuted itself for misdeeds, and information that would show whether the company's former executives benefited by cooperating with the
federal corruption invesligatiqn; - .-
Those executives 'include Allen, who was convicted of bribing state lawmakers but hasn't been sentenced yet. Allen is expected to a pivotal
witness in the senator's trial, as are recordings by the FBI between him and Stevens.
Lawyers for CH2M Hill say they're not,obligated to tum over any of the material requested by Stevens' lawyers, who have already asked the
Justice Department for it Prosecutors have not turned it over either, saying that it's irrelevant to their prosecution of Stevens"
"Unsatisfied with the government's decision not to produce this very same information ... the defendant now seeks these items from a nonparty
in a,back-door attempt to circumvent the government's discovery obligations," lawyers for CH2M Hill wrote.
Stevens' lawyers cOllnter that because Allen "apparently conducted numerous illegal activities through Veco, which have led to his conviction
and t,hat of several Alaska state officials, CH2M Hill's purchase of Veco could have exposed it to potential criminal indictment Although an
indictment would be an unwelcome event in the life of any corporation, for CH2M Hill criminal charges would be particularly devastating
because it is government contractor and faces debarment if indicted" '
They want the documents because they hope to show at trial that Allen had a motivation to "testify favorably"-as a prosecution witness,
Stevens'lawyers wrote. FBI - Stevens-2054
9H2M Hill, an employee-owned company, bought Veco last September, and the formal stock-purchase agreement was filed publicly with the
Securities 'and Exchange Commission. The agreement showed that the Allen family and two former Veco executives, Roger Chan and Peter
Leathard, owned shares in Veco either directly or through trusts.
The Veco owners shared in the proceeds according to their ownership percentages, with the Allen·family together holding more than 80
percent, according to sales documents.
ACcording to the CH2M Hill purchase agreement, the toial value of tlie sale was $380 million. But after adjustments, assumptions of_
1-- -._--- -----==---- ,_ '1'''+ -It 70-"1"- ... e.
the ;s!fuance of'$15 million in'CH2M Hill stoOVeco employees who jolned CH2M Hill, the Qrs were left divide $146 million in' cash.
Another;$70 million was withheld but payable by 2010 -- a guarantee against hidden or unexpected issues arising, including the possibility that
Veco could still be charged criminally as acorporation. '
Allen has testified he tried to get immunity for: the company but couldn't. In its SEC filing, CH2M Hill said such an event would be··potentially
detrimental to CH2M Hill's reputation in the business community or impact our future business operations: The newowners said they would
continue to cooperate with ongoing investigations have had a ·productive dialogue· with the U.S. Justice Department
BLOGS
I would suggest that the files be released as I am certain that these same files will also
contain a link to the further corruption carried out by VECO and Allen in regard to their
handling of two projects carried out il1 Barbados one being an ,Oil Storage facility and
the other being a prison in ,b()th cases the final price tag exceeded the quoted price in
one case by nearly three times the cost in the other by double the cost.
There is a VERY STRONG feeling on the island that VECO executives conspired with
Barbadian con artist to defraud the Barbadian taxpayers by vast sums of money with
kick backs arranged by Allen for the 4 Barbadian faciliators for AND VECa.
See comments recently made by the new Prime Minister of Barbados The Hon Mr.David
Thompson during a speech that was delivered on Saturday evening by him to.
living in Toronto -:
SECRET ACCOUNTS
PRIME MINISTER DAVID THOMPSON is convinced that millions of dollars
spent" during the previous Barbados Labour Party (BLP) Administration are now
stashed in 'foreign bank accounts.
'He did Qot'call any'namesbut'he made it-clear that he-hoped,one:day to be_able.
down the bank' accounts and expose the culprits.
"Week ?lfter week in Cabinet, we unearth 'horror stories of how millions arid millions of
dollars. were spent in the mpst bizarre of circumstances," Thompson said as he
the Canadian f?rarich of the Democratic Lapour Party (DlP) in Toronto on
Saturday night.· . .
"This is 2008 and'it is'not easy to tap into a person's personal bank account and,find
necessary deposits, but I am saying tonight that the money that spent so recklessly
in the past t4 years has not all dissolved into outer space, although much of it.js not in
Barbados.
"It is somewhere hidden and I intend to find some, if not all, of it," the Prime
said. . fBI - Stevens-2055
"We are not talking about a few hundred dollars here. We are not confusing ourselves'
with petty cash or other fine change. We are talking about millions and of
dollars that could otherwise have gone into social, infrastructural and economic
jJ1e of-Barbadians," he charged.
--,----'- - - ,
....
o 0
He irregularities at the Rural and Urban Development as well as
Town and Country Planning decisions.
"You cannot begin to imagine what was going on in Barbados. You cannot begin to
imagine ttie depths to which governance or lack thereof - sunk in Barbados," he told
the audience. .
The Prime Minister added that, as a consequence, the public service of Barbados was
"never as politicised".
"There are political operatives of the Barbados Labour Party at work in virtually every
department; charged' with frustrating and undermining every project/initiative of your
Government.
"Frequently, you discover situations where people are speaking freely about
transactions and undertakings for which there is no record on .file. It is only then you
know that something of the sort existed. The files are now nowhere to be found."
It is for this reason, he said, that his Administration, as promised in the DLP-manifesto,
has set up a Governance Commission to review and examine current loopholes in the
system of public administration in Barbados and to propose a series of reforms.
"I am not-arrogant and I don't.try to.be.. 1spent too long in OppositiQn not to have learnt
some lessons. 'But I apologise to no one - least of all the Barbados Labour Party - for
the length of time it
is taking to get it right."
Thompson, also spoke of other manifesto the proposed' Freedom
of Information Bill which he said had been p'resented to Cabinet last Thursday and
would soon be widely circulated and ultimately laid 'in Parliament.
Additionally, he said the Integrity In Life legislation covering such issues as
declaration of as.sets, conflict of interest issues and the conduct of parliamentarians
would also be available within the next few weeks.
"This Government is in office for eight months and it is making this legislative
framework a reality. Others talked about it but instructively, never lifted a finger for 14
long years, to make it happen. Barbadians I11USt ask themselves why!"
.
FBI - Stevens-2056
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'1,. 'I
,;; l/ ' ,
,.!' -,
, ,
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Stevens jury set to hear witnesses Thursday
By ERIKA BOLSTAD and RICHARD MAUER
Anc;:horage Daily N'ews
(09/24/0814:21:56)
WASHINGTON - The newly impaneled jury that will determine whether Sen. Ted Stevens is guilty of lying on his
financial disclosure forms will hear its'first witnesses Thursday in his corruption trial.
prosecu.tors will outline their case against the Republican from Alaska. They're expected to call
three witnesses. Stevens' lawyers also will have an opportunity to outline their defense, including shortcomings
they hope to highlight- in the government case against the senator.
was' charged in late July with taking more than $250,000 in home repairs, labor and fumishings from a
defunct oil-services company, Veco Corp., and Bill Allen, its former chief executive/ and failing to report the gifts
on his annual Senate 'disclosure forms..
The gifts he's accused of accepting inc!ude renovations to his home that lifted it from its foundation, added a
lower story and doubled its size. .
Among the first witnesses jurors will hear from Thursday is John'Hess, a Veco engineer whose initials are on the
,renovation plans,fiIed with the Municpality, of Anchorage's building department. Stevens called the home, an A-
frame in the resort community of Girdwood, his "chalet" 'in correspondence that will likely be entered as evidence
against him in the case. Veco, according to the Stevens indictment, paid for the design work.
Today, after a day and a h91f of jury selection, lawyers for Sen. Ted Stevens and federal prosecutors agreed on a
jury pool of 16, which includes four alternates.
The jUry is made,up of nine black women, three black men, two white women and two-white men - a mix that
reflects the oi Wc;lsh{ngt()r1, wh'j(;h is more Etlan 56' perceht'bla-ck.
It's a far different jUry from what Stevens likely would have faced in Alasl<a, had he been successful in moving
the trial to his home state. In Anchorage, U.S. Census figures show, the population is about 72 percent white, 6.5
percent black and about 8 percent Alaska
The D.C. jUry also is reflective of the city's professional class - 39 percent of the population has at 'least a four-
year degree. In Anchorage, that number is closer to 2;1 percent.
There's a third-grade teacher with 21 kids in her Classroom, awoman who is the receptionist for a trade
association, a young man who works in the gift shop at a journalism museum, a man who oversees the operating
rooms at a hospital, a woman who keeps the books for the D.C. 'National Guard, another woman who compiles
criminal justice reports on wiretapping, and a man who works in drug counseling. FBI - Stevens-20S7
Half'of the jurors previously served on juries in federal or D'.C. courts; one man'was-a"grand juror. , ..
Stevens is-balancing his trial, his Senate duties and a,campaign against Democratic challenger Mark Begich,
Anchorage's mayor. Opening statements in the trial, which is expected to last three to four weeks. Stevens,. who
was indicted in late July, asked for the expedited schedule so there is a potential for the trial to wrap up before
the Nov. 4 election. '
Allen, 71, is expected to the star witness in Stevens' trial, the culmination of four years 9f inquiry into
Alaska politics. Allen, who's pleaded guilty to bribing state lawmakers in Alaska, has not yet been
'h'is coiIri:ro6ildestimOllY and secret'recordings and videos'of conversations were,key:.to the
-,-,-, '-, _ • - '6j 5 , _ {7''f+,;(j/",..J36?o- e.
"
seven succesQconvictions.
o
Allen and Veco vice president Rick Smith pleaded guilty in May 2007 to providing more than $400,000 in bribes
to public officials in Alaska.
The Jus.tice Department also won convictions of three former Alaska state representatives, all on bribery charges:
Tom Anderson, Pete Kott and Vic Kohring. One other state representative, Bruce Weyrauch, is awaiting trial, as is
current state Sen. John Cowdery.
In the same investigation, Jim Clark, onetime chief of staff to former Alaska Gov. Frank Murkowski, pleaded
guilty in March to one count of conspiracy and agreed to cooperate with the federal investigation. Former
Anchorage lobbyist Bill Bobrick also pleaded guilty in May 2007 to public corruption charges.
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FBI - Stevens-20SS
Alaska's Oformation source I,FormergovernorCserts himself in... Page 1 of2'
Former governor reinserts himself in gas line talks
by Mike Ross
Monday, Jan. 28,2008
ANCHORAGE, Alaska -- After his own failure with the project,
former Gov. Frank Murkowski is again jumping into the gasline
debate. ---
..
Murkowski is back in Alaska. He said Monday he is meeting with
some of the major producers and the Palin administration's gas
line choice, TransCanada, in order to get the project moving.
.
.
Although he wouldn't say exactly what
role he's playing, Murkowskl met
Monday afternoon with officials at
Conoco Phillips. (Phil walczak/KTUU·lV) •
"I feel as an Alaskan that I'm gonna do everything I can to help
bring this gas," Murkowski said.
Although he wouldn't say exactly what role he's playing, Murkowski met Monday afternoon with
officials at Conoco Phillips.
"We just can't wait for this process to go'into a long period of litigation -- time's a-wastin'," he
said.
Murkowski also says he plans to meet with BP, Exxon Mobil and TransCanada, the only pipeline
bidder that met terms of the Alaska Gasline Inducement Act legislation, according to the Palin
administration.
"The bottom line is to get this moving and how can we collectively work together to have the
producers, the owners of the gas and TransCanada come together with,the state of Alaska to get
this project underway," he said.
In the final months of his term as governor, Murkowski's gas line deal with the major producers
fell apart over concerns that he "gave away too much."
Many in the Legislature felt there weren't sufficient guarantees the pipeline would ever be built
within the context of his negotiations. Tax breaks given to the producers were too generous.
The former governor says he is not working for or representing any particular party involved in
the debate, though, and his efforts come as the tug-of-war between Gov. Sarah Palin and Conoco
Phillips continues.
FBI - Stevens-2059
Palin rejected Conoco's "non-conforming" pipeline construction application with a letter that
began with a quote from Albert Einstein that defined insanity as doing the same thing over and
over again and expecting different results.
- The company ran a full-page newspaper ad Sunday saying it's disappointed but not discouraged.,
"We do plan to continue with oLir public outreach. We plan to continue with our efforts to'move
this project ahead," said Conoco Phillips vice president Brian Wenzel.
The governor says she's committed to AGIA but isn't closing the door on Conoco.
1129/2008
.... ' ,trhu.comIAhiska's'news source IFOnnerJgoveni0Qserts .Page 2 of2
"We're not going to be stubbQrn," Palin said. "Some people characterize it pull a
Murkowski' -- you put your he.ad in the sand y,ou don't to hear from anybody. else.
We're to hear from ,
Mike Ross at mLQ£s@/stUY.CQD1

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For more'lnformation on this site, please read our and J-e.rms....o1.Seryjce.
FBI - Stevens-2060
1/29/2008
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Jury se,ated in Stevens trial
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(09/24/0810:20:23)
WASHINGTON - Lawyers for Sen. Ted Stevens ,and federal prosecutors have picked a jury in his corruption trial.
After a day and a half of jury selection, the pool,was narrowed to 12, with four'alternates.
Opening statements are set for Thursday morning.
The jury is made up of nine black women, three black men, two white women and two white men - a mix that
reflects the population of Washingt<?n, D.C., which is more than 56 percent black.
There's a third-grade teacher, a receptionist for a t r a d ~ association, a young man who works in the retail store at
a journalism museum, a man who oversees the operating rooms at a hospital, a woman who keeps the books for
the D.C. National Guard, another woman who compiles criminal justice reports on wiretapping', and a man who
works, in drug counseling.
Five of the jurors previously served on juries; one man was a grand juror.
The 84-year:-old Alaska.Republican faces charges that he took more than $250,000 in labor, materials and
furnishings from 'a former oil-services co'mpany, Veco Corp., and' Bill Allen, its former chief executive officer, and
didn't report the gifts on his annual Senate disclosure forms. Opening arguments begin Thursday morning.
The senator is balancing his trial, his Senate duties and a tight re-election bid against Democratic challenger Mark
Begich, Anchorage's mayor. Opening statements in the trial, which is expected to last three to four weeks, begin
Thursday morning. Stevens, who was indicted in late July, asked for the expedited schedule so that there is a
potential for the trial to wrap up before the Nov. 4 election.
Allen, 71, is expected to be the star witness in Stevens' trial, the culmination ,of four years of inquiry into
corruption in Alaska politics. Allen, who himself has pleaded guilty to bribing state lawmakers in Alaska, has not
yet been sentenced. But his courtroom testimony and secret recordings'and videos of conversations were key to
the Justice Departme'nt's seven successful convictions. '
Allen and Veco vice president Rick Smith,- pleaded gUilty in May 2007 to' providing more than $400,000 in corrupt
payments to public officials fro.m the state of Alaska.
The Justice Department also won convictions of three former Alaska state rep'resentatives, all'convicted on
bribery charges: Tom Anderson, Pete Kott and Vic Kohring. One other state representative, Bruce Weyrauch, is
awaiting trial, as is current state Sen. John Cowdery.
In the same investigation, Jim Clark, onetime chief of staff to former Alaska governor Frank Murkowski, pleaded
guilty in March to one count of conspiracy, and agreed to cooperate,with,the federal investigation. Former
Anchorage lobbyist Bill Bobrick also pleaded guilty in May 2007 to felorw public corruption charges.
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FBI - Stevens-2061
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.puror links to Stevens, to avoid
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Juror links to Steve.ns, jud9.e hard to avoid
PROCESS: Federal judge trims field to about 30.
BOLSTAD and RICHARD MAUER
Daily News
21:58:26)
WASHINGTON -- A federal judge began on Tuesday to shape the jury that will decide whether Sen. Ted Stevens
is guilty of lying about gifts o.n his annual Sena'te disclosL!re form,S.
Jury selection is set to finish early this morning/ but by the end of the day U.S. DistriCt Judge Emmet
Sullivan had identified about 30 potential jurors. He asked 46 people whether they felt they could be impartial in
a case about a public official and whether they knew any of the people who could testify as witnesses in the
corruption case. He also asked many if they thought they could be fair in their verdict even if the
defendant -- Stevens -- does not testify.
Just two potential jurors mentioned Stevens' home state. The Jather of Ju'ror 1885 -- none of their names were
used in open court --. was 90rn in. Alaska.
,
had failed to respond to a written juror question asking what he thought about Alaska/ so the judge
'-'ll' what came to mind.@
--
.<,'M't1 • ..
can say is/ Alaska is cold/, hesaicf;
The jury pool in some ways. showed what a small town Washington can Two jurors reported having direct
!=ontact with the judge in the past/ one as a lawyer representi'ng a telecommunications company/ the other as a
mother whose son was convicted of an unspecified crime. The lawyer remained on the panel/ while the mother/
who harbored ill feelings toward the couit/ did not.
Ana'sorifeon'e:who might'have watched-jurycselectionsin Anchorage·would· observe,a surprising. lack 9f.diversiW
for cosmopolitan Washington. Anchorage jury pools-often reflect·tt)e rich ethnic and racial diversity there/ where
. more than 89 languages are the native tongues of students in the school district or their families. The
Washington that showed up in Sullivan's courtroom was almost exclusively biracial -- African American and' white.
A single Asian -- a female lawyer -- was among the pool/ along with a man who might have been Hispanic.
government being the city's'main industry/bureaucrats/ clerks/ technology workers/ lawyers/ lobbyists and
analyst" for the Defense Department swelled-the jury pool.. '
.
,
the lobbyists/ Juror 213.5/ even had a connection to Stevens. FBI - Stevens-2062
That juror is a corporate attorney with Verizon who practices before the FCC. The Senate Commerce .Committee/
. which Stevens chaired until Republicans lost control of the Senate in 2006/ has oversight of the FCC and Stevens
has a lot to say about who its chairman will be. The juror said he met Stevens professionally and. knew one of his
long-termaides-turned-Iobbyist/ Lisa· Sutherland. - -
Sutherland was listed Monday as a possible witness.
<:2.-
9/24/2008,
The lead prosecutor/ Brenda Morris/ asked the man if it wo.uld be a problem for his own career if he sat in
judgment on a jury determining whether a powerful senator is gUilty of acri",'le.
The man told the judge it would not be a problem and survived the fjrst round of cuts.
x, _ ' .
. ." .. ..prlnterlstory/535184.litml
. ::.-)jr'V, _
adn.comJJuror links to Stevens, to avoid r\ Page 2 of 3
T/oof the potential jurors' had witli corruption'inve?tig-ations. 511 said a a jUdge in
.pennsylvania, is now under investigation by the FBI for abuse of power. The juror said she h?ld become jaded,
know if that would help or hUI\ Stevens. She was cut. .
.
190"2 worked for Walter Fauntroy when he was the Dis'trict of Columbia's nonvoting delegate to Congress.
iStfu was subpoenaed by a jury investigating Fauntroy and remembered being frightened before she
testified. In 1996, leaving Congress, Fauntroy pleadeq guilty to filing a false disclosure statement, the same
violation Stevens is facing. Juror 1902 remained on the Stevens panel.
About 56 percent of Washington is African American and just over 53 percent of residents are women. By the end
of Tuesday, the potential jurors in the pool of 30 or so included 13 black women. .
ABSENCE MIGHT BE A MISTAKE
.
The jurors paraded quickly through the courtroom, as Stevens sat quietly at the defense table with his laYJyers, a
frown fixed on his face most of the day. During sonie breaks in the proceedings, he checked his Blackberry for e-
mail messages in the airy modern atrium outside the courtroom. Stevens, the longest-serving Republican in the
U.S. Senate, left the proceedings about 15 minutes early to go to the Capitol, 'where votes were scheduled.
'\
senator faces that he toqk more than $250,000 in labor, materials and furnishings from
oil:servlces company Veco Corp. and Bill Allen, its former chief executive officer, and didn't report the gifts
annual Senate disclosure forms. The senator is balancing his trial, his Senate duties and a tight re-election
fJicfagainst his challenger, 'Anchorage Mayor Mark Begich, a Democrat.
Sullivan warned Stevens on Tuesday that it might not be the best idea to leave the courtroom during the first
week of his corruption trial but that if he's needed in the Senate, the judge will explain his absence to jurors.
. ,
"I would be remiss if! didn't bring this to your attention," Sullivan told Stevens just before-jury sel.ection-b.egan.
"I think it's possible that some jurors may think someone is too busy."
Stevens' lead attorney, Brendan Sullivan, wanted the judge to tell jurors that if Stevens is absent, it's
he's needed in the Senate to help addressthe looming financial crisis. The judge told him he'd say only that
Stevens simply wouldn't be there, but that there was nothing wrong with his absence and tlie jurors shouldn't
speculate about it. . .
-LOBBYISTS IN THE,POOL
'
.... .. ..
'j" ,".•
,Arlorner'la'wyer/lobbyist failed to make the'cut: a man with Republican ties who said he thought that he'd met
before, and said he was worried that his political ties would make it difficult to overcome his bias in favor
Republican senator. The lobbyist, who represents an association of home-based businesses such as
Avon and Mary Kay cosmetics, described himself as "a political.animal." He's never lobbied Stevens directly but
,probably. has been at the same events, he told "the judge.
. ,
"l think it would be hard for me to say I wouldn't have some inherent bias," the'lobbyist told the judge. '
FBI - Stevens-2063
A bias from the other side was held by juror 86, who reported that his father was a lobbyist. He said he believed
people in public office should be held'to a higher standClrd, -and had com,e to the conclusion that "Stevens is
guilty." He also was struck from the pool.
The judge also let go another juror, ateacher who is a Christian Scientist and said'she had reljQi6us
objections to sitting ,in judgment on someone. He also dismissed several jurors who worked the night shift or
were enrolled in college courses· that conflict with the five-day-a-week trial schedule. "
. '. . .
riJ:'." ,. .
you to miss any cl!3sses," the judge told one student.
.
Sullivan dismissed another potential juror who had famify'ties to lawyers at the firm whose attorneys are
representing Stevens. .'
http://www.adn.comlfrontlv-pririter!stoiy/535184.html 9/24/2008
-- - -- ---
Juror links to Stevens, to avoid
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ON THURSDAY . .
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Most potential jurors remained in the pool, however, including a woman whom Stevens' defense team objected to
for saying that she thought public officials are "supposed to serve the people ... and they're not above the law.
They should always remember the people they're supposed to serve." .
The judge asked her about "the fact that the senator has been indicted.... Would you view that as wrongdoing
on his part?"
"Do I feel like that means he's guilty? No," the woman said, a response that kept her in the pool.
,Another juror, when he was asked about his response on a questionnaire to whether he'd ever witnessed a crime,
!;Ja9 this to say: "If you see someone smoking marijuana at a party, that's a crime." The judge kept him in the
,PPo.l,
-, f· I':;
l.ii.w-selection is expected to finish today. Opening statements in the trial are scheduled for Thursday morning.
. .
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FBI - Stevens-2064

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9/24/2008
I used as his own 'handyman service'
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Prosecutor: Stevens used Veco his.own 'handyman service'
By'ERIKA BOLSTAD and RICHARD MAUER
Daily News
(09/25/0809:11:13)
WASHINGTON - Sen. Ted Stevens used one of Alaska's biggest employers as his "own personal handyman
service" and never paid Veco Corp. for hU,ndreds of thousands of dollars' worth of renovations to his home, a
. federal prosecutor charged Thursday as she outlined the government's case for finding the. Alaska Republican
guilty of lying. on financial disclosure'forms.
, ,
"You'll learn that the defendant never paid Veco a dime for, the work on the chalet.. Not a penny," the Justice
Department's prosecutor, Brenda Morris, told jurors in the opening minutes of Stevens' trial.
Stevens' lawyers countered'that he was not guilty and blamed Veco and its chief executive officer, Bill Allen, for
allowing costs to escalate without telling him what the expenses would be or even snowing him all the bills; Allen
'also installed fancy add-ons - Iike.a Viking gas,grill and,gaudy but pricey Christmas lights - that were /"J)
unr-ecessary and unwanted, Stevens' lawyer, Brendan said.
see the evidence ... you'll see he nad.no intent to violate the law, no intent anything," !:lis
" .Ia"!yer said. "He didn't' want thes.e things, he ask for these things. He told some of them to take them
. lSack. He never once hid anything." . .
Sullivan also hinted that jurors would hear uncomfortable and intrusive details about relationship between the
84-year-old and his second wife, Catherine 'Stevens, whom Sullivan said opened,the.bank 'account they
established to pay for home renovations expenses.
"Catherine ran the financial part of the renovation," he said. "She was the person who opened the account,
. "reviewed-the-bills, she wa'sthe person who wrote the,check."
But prosecutors said that the jury will alsq hear from many of people who did the work on Stevens' Girdwood
home, Morris said, referring to the A-frame cabin as the "chalet," as the did: Morris said they will
describe how even though Stevens paid subcontractors with whom he didn't have a personal relationship, he
never paid Veco for its work, thanks to his close connections to the company's founder.
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needed an eleCtrician, he contacted Veco. If the defendant needed a plumber, he· contacted
fh
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?J:lft said. "We reach for the Yellow Pages, he rea'ched for Vec,o."
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, FBI - Stevens-20GS
Jurors also will hear: about a 2006 conversation between Stevens and Allen, who alreaay was cooperatmg with
federal authorities at that point. In the conversation, Stevens told Allen that the worst that could happen'to the
two was if anyone found what the company had done for him was that, they'd have to spend a lot of money on
lawyers - and perhaps serve a little jail
Stevens knew he was doing wrong, Morris said, and contractors who the government alleges worked for free on
the senator'.s home will testifY.that they were told not to talk about the work they were doing.
"One of the guys will tell you that he was told by Bill Allen to keep it quiet, that it would be bad if the public found
out," Morris said.
"This is a simple case about a public official 'who took hundreds and thousands of dollars' worth of free financial
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,benefits, and then took away the Iic's right to know that information," vlorris said.
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',$.bW,ens, the longest-serving Republican U.;S. senator, seven felony counts of making false statements on
'tits-Senate financial-disclosure forms. In office since 1968, Stevens is up for re-election this year arid is locked in
:a tight battle with his Democratic opponent, Mark Begich, the mayor of Anchorage.
The senator is acc,:,sed of accepting more than $250,000 in home repairs, labor and furnishings from the now-
defunct oil-services company Veco and Allen. Among the gifts he's accused of accepting are renovations to his
Girdwood home that lifted it from its foundation and added a lower story, doubling it in size.
Allen, whose testimony will be the centerpiece of the trial, has pleaded guilty to bribing state lawmakers in
Alaska. He hasn't yet been sentenced. -
The judge cautioned jurors that what the lawyers said Thursday morning is merely a road map of the case, not
evidence. -,
'hThey simply are statements of wh
9
t the attorneys expect the eVidence to be" and are designed to help the jury
what sort of case it'll be hearing, U.s. -District Judge Emmet Sullivan said.
the jurors that the law doesn't require the defendant to prove his innocence or present any
Also, the judge added, the .jurors must rely only on the facts in the case and not judge Stevens based
on his race, religion, national origin or age.
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Courtroom is set for dramatic Stevens 'trial
OPENING STATEMENTS: Jury has been picked,' and the first witnesses will take the stand this
rpqrning.
BOLSTAD and RICHARD MAUER
Adcl10rage Daily News
(09/25/0801:07:16)
WASHINGTON -- With a jury seated Wednesday in the trial of Sen. Ted Stevens, opening statements and the first
_witnesses were set for this morning, lifting the curtain on what will be a historic courtroom drama.
Stevens, the first sitting senator to face a criminal trial since Sen. Harrison Williams, D-NJ., was convicted of
bribery in 1981, will be tried by a juiy of 11 women and five men, a panel that includes four alternates.
.
The jury is mainly a mix of white-collar professionals and bureaucrats, typic'll for this government-centric city.
They'll h,ave the job of determining whether Stevens, 84, who has represented'Alaska since 1968, is guilty of
seven counts of lying on his financial disclosure forms.
The government' will begin its opening statement after the jurors are sworn and give'n preliminary instrU<;:tions,
at 9:30 a.m. Washington time, '5:30 a.m. in Alaska.
also will have an opportunity to outline theirgefel1se, i'1c1uging shortcomings hope to
i - ?i9hlight in the government case against the senator.
Each side will have 75 minutes to introduce its case.
Stevens,was charged in July with taking more than $250,000 in home repairs, labor and furnishings from the
defunct oil-services company, Veco Corp., and Bill Allen, its former chief executive, and failing to report the gifts
on his annual Senate disclosure forms. The gifts he's accused of accepting include renovations to his home that
<- lifted-it from-its foundation/added a lower story; and doubled-it in size. • ,
Among the first witnesses'jurors will hear from today is John Hess, a Veco engineer whose initials are qn the
renovation plans ,filed with the city of Anchorage's building department. Stevens called the home, an A-frame in
the resort community of GirdwoQd, his "chalet" in correspondence that will likely be entered as evidence against
him. 'Veco, according to the Stevens indictment, paid for the design work. .
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former Veco worker, Derek Awad, is scheduled to follow Hess.
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FBI - Stevens-2067.
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The jury is made up of nine black women, three black men, two white women and two white men -- a mix that
reflects the popiJlation of Washington, which is more than ·56 percent African
-- - It's a far diffe'fent jury than Stevens IiRely would have faced-in Alaska, had"he- been -successfuJ-in-moving the -trial
to his home state. In Anchorage, U.S. Census figures show the population is about 72 percent white, 6.5 percent
and about 8 percent Alaska Native.
The D.C. jury also is reflective of the city's professional class, where 39 percent of the population has at least a
four-year college degree. In Anchorage, that number is closer to,29 percent.
-Among the jurors chosen: a third-grade'teacher, a receptionist for a trade association, a young man who works
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shop at a journalism a man who oversees the operatiny rooms at a hospital, a woman who
i\\eeps the books for the National Guard, another woman who compiles criminal justice reports on wiretapping,
raM a man who works in drug counseling.
the jurors previously served on juries, either in federal court or Washington, D.C., courts; one man said
.,1
tiis only jury experience was as a grand juror. .
The trial is expected to last four weeks, a fact not lost on the jurors.
"My principal.won't be very happy," the third grade teacher told the judge. He offered to call the principal on her
behalf. . .
ALLEN AS STAR WITNESS?
In some cases, the jurors were asked to disclose their political leanings. One, a recent college graduate, said he
came from a very conservative Republican family whose parents are ardent Sarah Palin supporters. The man said
he flirted with a Republican organization in his sophomore year in college, but has since moderated his views and
recently went to Baltimore to see Barack Obama at a rally.
-
·$ttlitics-wise, I have no idea where I stand -- I'm still trying to figure it out," he said.
said he didn't know much about Stevens but been listening to the radio as he drove to the
courthouse Monday in response to his jUry summons. He heard on the news that Stevens' trial was about to
begin. .
"It was IIke{ weird, I was like, that's interesting," he told the cO,urt.
Stevens is balancing his trial, Senate duties and a campaign thousands of miles aWay against Democratic
challenger Mark I?egich, Anchorage's mayor.
Allen, 71, is expected to be the star witness in Stevens' trial, the culmination of four years of inqUiry into
corruption in Alaska politics. Allen, who's pleaded gUilty to bribing state lawmakers in Alaska, has not yet been
sentenced. But his courtroom testimony and secret recordings and videos of conversations were key to the
Justice Department's se'!en succe!?sful convictions.
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Senator's day in
Prosecution tells of free work; defense says bills were paid
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(09/26/0804:34:25)
WASHINGTON -- Sen. Ted Stevens used one of Alaska's biggest employers as his "own.personal handyman
selVite" and never paid Veco Corp. for hundreds of thousands of dollars in work done on his home, a federal:
prosecutor charged Thursday as she outlined the government's case for finding the Alaska Republican gUilty of
lying on financial disclosure forms.
"You'll learn that the defendant never paid Veco a dime for the work on the chalet. Not a penny," the Justice
Department's lead prosecutor, Brenda Morris, told jurors.
Stevens' lawyer,.Brendan Sullivan, countered that the senator is not guilty and that "every bill submitted was
paid." He blamed Veco and its chief executive officer, Bill Allen, for alloWing costs to escalate without telling
Stevens what the expenses would be or even showing him all the bills. Allen also installed fancy add-ons -- like a
'Viking gas grill and gaudy but pricey Christmas lights -- that were unnecessary and unwanted, Sullivan said.
"When you see the evidence ... you'll see he had no intent to violate the law, no intent to conceal anything,"
Sullivan said. "He didn't want these things, he didn't ask for the:se things. He told some of them to take then(j)
back. He never once hid anything." .
Sullivan also hinted that the jurors in coming days would hear some uncomfortable and intrusive details -- he
didn't elaborate -- about the relationship between the 84-year-old Stevens and his second wife, Catherine
Stevens, whom Sullivan said opened the bank account they established to pay for hqme renovations expenses in
2000.
Sullivan quoted Stevens saying: " 'When it comes to things in and around the teepee, Catherine CPl1trols.' That
might be a little old-fashioned, but Ted's old-fashio'ned. -The most important thing to know is Catherine ran the
financial part (of their
That extended to the renovation, Sullivan said.
, "She was the person who the account, reviewed the bills, 'she was the person who wrote the check."
Sullivan said the senator and ,his Wife paid five bills totaling about $160,000 to Augie Paone, owner of Christensen
Builders, for carpentry work. They "believed the bills they received were covering the cost of the renovation," his
lawyer said, adding that the project cost about $160,000.
He added that when Paone prepared the sixth bill to send to Veco for approval, it wasn't paid. Paone was told by
Bill Allen and construction foreman Robert "Rocky" Williams that he was going to "eat that bill," Stevens' lawyer
said.
"Augie thought about calling the senator and saying, 'by the way, they won't pay the bill,' " Sullivan said. "He
didn't want to do that. He thought it would just be dangerous to go against Bill Allen."
Instead, Sullivan said, Paone was given a renovation job at Allen's home that helped him recover some of the
expenses of the Stevens work. The additional costs from the Stevens renovations were padded into the work at
Allen's home, SullivC!n said, "unknown by the Stevenses."
"This was an act by BiII.Alle_n to information from the Stevenses," Sullivan said. "Why? He thought tpe cost
I
was too high. If the renovations were really $166,000, how could you send bilLfor costsrun up
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on when Ted and catOe were-3,000 miles away?" 0
,
Sullivan made a point to the jUry that the Girdwood house, though Stevens' official Alaska residence, is not his
and Catherine's primary home.
"They live here with us in the District of Columbia," he said. "That is their technical residence. They are lucky to
spend 20 days a year at that residence."
THE CASE AGAINST STEVENS
The jury also will hear from many of the people who did the work on Stevens" home in Girdwood, Morris said,
referring to the A-frame cabin as the "chalet," as the senator did. Morris said the workers will describe how even
though Stevens paid'subcontractors with whom he didn't have a personal relationship, he never paid Veco for its
work, thanks to his close connections to the company's chief executive officer, Allen.
"If the defendant needed an electrician, he contacted Veco. If the defendant needed a plumber, he contacted
Veco," she said. "We reach for the Yellow Pages, he reached for Veco."
Morris said jurors also will hear about a 2006 conversation between Stevens and Allen, who already was
cooperating with federal authorities at that point. In the conversation, they said the worst that could happen to
them if anyone found out what the company had done for him was that they'd have to spend a lot of money on
lawyers -- and perhaps serve a little jail time. In the conversation, they agreed they wouldn't "be killed,"
meaning that it wasn't a matter of life or death.
Stevens knew he was doing wrong, Morris said, and contractors whom the government alleges worked for free on
the senator's home will testify that they were told not to talk about the work they were doing.
"One of the guys will tell you that he was told by Bill Allen to keep it quiet, that it would be bad if the public found
- '. out," Morris said.
"This is a simple case about a public official who took' hundreds and thousands of dollars' worth of financial
benefits, and then took away the public's right to know that information," Morris said.
Stevens, the longest-serving Republican U.S. senator, faces seven felony counts of making false statements on
his Senate financial-:disclosure forms. The 84-year-old Stevens is up for re-election this year and is locked in a
tight battle with his Democratic opponent, Mark Begich, the mayo/:, of
The senator is accused of accepting more than $250,000 in home repairs, labor and furnishings from Allen and·
the now-defunct oil field services company, Veco. Among the gifts he's accused of accepting are renovations to
. his Girdwood home that lifted it from its foundation and added a lower story, doubling it in size.
Allen, whose testimony will be the centerpiece of the trial, has pleaded guilty to bribing state lawmakers in
, Alaska. He hasn't yet been sentenced.
SCENE IN THE COURTROOM
FBI - Stevens-2070
Stevens scowled throughout the government's 45-minute opening remarks, but he smiled during several portions
of his lawyer's remarks. Stevens listened through a set of earphones that enhanced the sound in the courtroom.
. .
The system also allowed him to hear the private conferences at the bench between lawyers and the, judge.
As the trial began Thursday; both the courtroom and an overflow room were packed. The well in front of the
judge, where the two sides sit, was filled on the government side with FBI agents, additional prosecutors and
support staff. The defense side was packed with lawyers on the Stevens team..
The first row on the defense side of the courtroom was reserved for Stevens' friends and family. His daughter
Beth sat at the end of the row and appeared to pay close attention to evei'ything that was said. Although his wife
came with-Stevens to his arraignment, she is a witness in his trial and cannot attend the proceedings until she. is
-called to testify.

I
side of the courtroorrf"e first row was· filled with'sketch art'" with huge pads covering their laps.
Therel1ere two rows on 0l!e side U one row on the other for the was also a full crowd of suited
attorneys who came to check out the 'performance in openings by the two sides.
Throughout the morning session, a watch alarm periodically beeped from somewhere in the courtroom. When the
lunch recess finally began and Stevens was leaving the courtroom, he took off his plastic-band wristwatch and
handed it to one of his'lawyers.
"I only paid 30 bucks -- I don't.know how to turn it off," he said.
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witness 'says drew up the plans
By RICHARD MAUER and ERIKA·BOLSTAD
Anchorage Daily News
(09/26/0804:34:44)
WASHINGTON -- A Veco project manager testified that,his boss, Bill Allen, invited him to ·Iunch in a private /
Midtown Anchorage dining room in 2QOO so he and Sen. Ted Stevens could plan the addition to Stevens' cb
Girdwood residence. T
The Veto employee, John C. He's, was the first witness in Stevens' felony dis'closure trial here. He was called to'
help p'rove the government's that Alaska's six-term senator knew full well that Veco, the now-defunct oil-
field service company, was pa'ying for a major part of the renovations doubled the size of.·his home.
is charged with failing to disclose more than $250,000 in gifts over six years, mainly from Allen and
Veco. Stevens says the charges are unfounded.
Hess laid the foundation for much the case that will unfold over the next few weeks, testifying for more than two
hours about the scope of the addition. His testimony was illustrated for the jurY with more than a dozen of his
own phqtographs"designs and blueprints of the project.
Hess(trained in draftiilg, engineering andarchitec:ture, wa_s followed by another Derrick'Awad, also from
Veco, who testified that Allen dispatched him and another Veco w6rker to driveto'Girdwood to shoverStevens'
deck in the winter of 1998 or 1999. In the fall of 1999, Awad and two other Veco »,orkers installed an emergency
generator for Stevens. . .
Bqth Hess and Awad, along with other Veco employees to·take the. stand-today, are now employed ,by
the Denver-based engineering firm CH2M Hill, which bought most of Veco's assets from Allen, his three children
.and his two top just over a year ago. '
'AssiGNMENT CAME FROM ALLEN
Hess' start on the project came when his manager summoned him to his office, he testified. The big b'oss, Allen,
wanted to see him, the manager told him. ' .
Within the next day or so, Hess met with Allen at Veco's executive offices in the Frontier Bt,Jilding o"n Avenue
in '
"We sat down and discussed the project," he said. "I learned the project was a cabinP§jlt
Stevens.",. .
Allen said that Rocky Williams, a trusted Veco employee -- 'and a likely trial witness himself -- would be helping
- on the job. A few. days later, t1ess and Williams went to Girdwood to scope out the project. No one was home, but
Williams had'the key to Stevens'house: Biihat time, a plan was'fullyin place: They would· raise the single-:story _
home and build a new first floor beneath it. Hess went back to Anchorage and drawing up the designs,
Not long after that, he got a call from Bill Allen or Allen's secretary; linda Croft, directing him to come to lunch at
Jens' Restaurant, an upscqle place in a Midtown strip mall'. When Hess got there, he was led the
restaurant to a private dining room, he testified. Stevens and Allen ,arrived a few minut!=s later; though Hess said
he didn't know if they had driven together. '
"Mr. AllenJntroduced me to Senator Stevens. He said I worked for Veco and that I would be helping with the
the 'cab'j'",""Hess' said. -=' <l . I'f e.
, ", ------_.-==-- -==-------- ..
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Lunch lasted about 1 1/2 hours. for the first 45 minutes as PI'" and Stevens ·"caught up" with each
other:"It was two friends talking," ltt'said.. . V
"Halfway through the lunch, the subject changed. I started conversing with the senator"i Hess said;
STEVENS REVIEWED DESIGNS
Stevens told him that the main reason he and his wife, Catherine, wanted to expand the house was because their
grandchildren were spending time there, and there wasn't enough room, he testified. On some issues of
Hess said, Stevens told him that he would defer to his wife.
From August through December 2000, Hess produced more designs, detailed construction drawings and
revisions. He said he phoned Stevens a couple times and faxed material to him at his Senate office in
Washington.
In one drawing introduced as eVidence, Hess had noted at the bottom that Bob Persons, the owner of the Double
Musky Restaurant in Girdvtood and a good friend of the Stevenses, would be the "ramrod" on the project.
Persons' name appeared on other documents introduced as evidence, including a file folder created by Hess for
the project that listed other names as well. On Aug. 26, 2000, Hess received a handwritten letter from Stevens
mailed to his Veco office. In the note, which was shown to the jUry, Stevens said he and Catherine were thrilled
by his effort.
"Now I want you to give us a bill for your work," Stevens wrote. "And, as Bob (Persons) and I have told you,
under our Senate rules I must pay you for what you have done,'We'lI be back in Anchorage in early October.
Hope to (illegible) you then."
!. Hess said he b.Clck to Stevens and told him needed to ask Veco for the bill, not him. He said he also
i mentioned the note to his bosses. Hess said he didn't hear from Stevens after that.
Under cross-examination by Stevens' lawyer, Hess said he couldn't recall exactly how he contacted Stevens and
had no copy of any correspondence. But he insisted he had done so.
The government alleged that Stevens never paid for Hess' time. In her opening statement earlier Thursday,
Brenda Morris, the lead prosecutor, said Stevens·exhibited a pattern of offering to pay bills, then never following
up with cash. .
While professional draftsmen usually include information on the plans that would identify themselves and their
company, Hess said, those identifiers did not appear on the Stevens project. Only his initials, "JCH," identified his
handiwork, including designs filed with the city bUilding department.
"I recall Bill Allen suggesting that we should just keep it simple," Hess said. "He didn't want Veco on there."
Hess was followed to the witness stand by Awad. Stevens was reported to be frightened by the possibility of a
massive power failure on New Years in 2000 -- the so-called Y2K bug -- s6 Veco 90u9ht him a $6,000 gas-
powered generator and a switch would automatically turn it on if the power failed, Awad said.
Awad said he and two other Veco employees picked up the generator, unpacked it, drove it to Girdwood and
spent about two days installing it in the back of Stevens house. They had to cut a hole through the foundation to
run a power cable inside, he said.
FBI - Steven5-2073
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Tradesmen detail Stevens 'chalet' renovation
By RICHARD MAUER and ERIKA BOLSTAD
Anchor:age Daily News
(09/26/0811:25:05)
WASHINGTON - Tradesmen who renovated Sen. Ted Stevens' home in Alaska in 2000 testified today about their
work as prosecutors began building a case that the Alaska Republican never paid a prominent oil services .
for electrical and carpentry work on the so':'called "chalet."
In the second day of testimony, a series of electricians and carpenters described in detail how they jacked up the,
·Girdwood house, installed a new first floor and redid all of the electrical Wiring. In some cases, employees for
Veco Corp. - whose executives were for years the leading campaign contributors to many Alaska political ry
including Stevens -.spent hundreds of hours devoted to work on the senator's home. r
. . .
Stevens. faces seven felony counts of lying on his Senate financial-disclosure forms. The 84-year-old senator is
accused of accepting more than $250,000 in gifts from the now-defunct oil field seryice.s company, and its
chief officer, Bill Allen.. Among the gifts of are renovations to -'Jis
Girdwood home that lifted it from its foundation and added a lower story" doubling it in size.
Some Vf}co employees spent months at the Stevens home, according to testimony. Beginning in October
Roy D (tmer of Littleton, Colo., spent four months working six days a week, 10 hours a day, Installing electric
servi e in·the new·sections of the house and rewiring much of'the old. " ,
, .
E ery morning, he'd drive to the Veco's facility at the port of Anchorage, sign in using his badge, then drive 45
miles to Girdwood. In the evening, he would have to "badge oue again back at the port before he could go home
to his hotel. Dettmer's pay at Veco at the time was between $27 and $29 an hour, plus overtime. Working a
schedule of six weeks on, two off, Dettmer said he 'spent about 400 hours on'the project. .
Assistant U.S. Attorney Joe-Bottini,of. Anchorage-walked-Dettmer, through 'h,is·tasks. The service-entrance had-
been at the· rear of the original house, but that was, now. 15 feet in the air. ,Dett'mer moved it-to the other side of
the house in the new garage Veco built, requiring all the old circuits to be extended. That doubled the electrical
capacity from, 100 amps to 200 amps. That meant the generator that had on'ly been inst?llled by Veco the year
before had be and moved as
Veto bought.the material from'an Anchorage supplier, Dettmer said. The new kitchen built by Veco on the second
floor also haa. to be wired. ' ,
.
Dettmer said he never met Stevens, but Catherine Stevens, the senator's Wife, once. 18; Veco
supervisor, Rocky Williams, introduced him. - evens- 4
"We said Hi/'and tnat was it," Dettmer said.
. -
Doug, Ike,qVecoelectrician,.described installing a generator at the residence in the-fall,of 1999; the-
year e ore the renova,tions that doubled the Stevens home in size.
A;7.estimated that he spent an estimated 20. to 24 hours on the job, including coming back a few days after he
and another Veco worker installed it to check on whether it was cutting on, automatically each week to recharge
the
The jourbeyman electrician, who was paid about $19.50 an hour at the. time, said he filled out:an "overhead
number""oJ{his tiniesheet, a code that described which client the 'work should be billed to. The number for the
Stevensjob,.wasn'tJor a,speCific client Iike.other; jobs. were, Alke said..In'steao,Jt was 'an internal code used for
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,
assumed were accountinOposes, he said. O. .
stlve*ns' wife, Catherine, by once to bring workers muffins, said another cQntractor, Mike a
carpenter with Christensen Builders of Anchorage. He also saw Stevens once, saying he was friendly and "talked
to everyone," Luther said. /
On his way out of the courtroom Friday, Luther waved to Stevens as hewalked past the senator at the defense
table.
Friday, both prosecutors and Stevens' attorneys also made slire to familiarize the jury with terms that are
second-nature to Alaskans, especially those wh.o work on the North Slope oil fields. One of Stevens' lawyers,
Robert Cary, asked Alke was a "hitch" on the North Slope.
"A "hitch" is just a rotation," Alke said. "It's slang. Six weeks on, two weeks off."
Alaska might be a very distant place for many of the jurors, but Gov. Sarah Palin's vice presidential candidacy
has made it more familiar than it once was. When Alke told the jury he was from her hometown of Wasilla, a
murmur of recognition shot through the coury:room.
Stevens, who has held office since 1968 and is the longest-serving Republican in the U.S. Senate, is in a tight re-
election contest with his Democratic opponent, Mark Begich, the mayor.of Anchorage.
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Stevens defense accuse"s prosecutors of subterfuge
By ERIKA BOLSTAD and RICHARD MAUER
, McClatchy Newspapers
(09/29/0814:14:11)
WASHINGTON -- Prosecutors stumbled Monday in their corruption case against Sen. Ted Stevens, drawing the ire
of a federal judge for sending home Alaska a potential witness who has figured prominently in other people's
testimony but so far has not testified himself. .
Stevens lawyers asked for a mistrial prosecutors of failing to .tell them everything they knew about a
Veco. worker named Robert "Rocky" \N,i(liams, who oversaw renovations at the Stevens GJrdw09d home in 2001.
U.S. District JUdge Emmet SUllivanZid there 'was no basis for a mistrial, but he said he was with
how prosecutors had sent Williams' home without alerting him.or defense attorneys that he was no longer
scheduled to be a witness. Sullivan scolded prosecutors from the bench but out of earsh.ot or view of the 1Uryc:ef
"I find it very, very disturbing that this has happened, and concerned about the appearance, of propriety,
improprietY,",Sullivan said, stopping short of accusing government prosecutors of misconduct or a lapse in ethics
but threatening sanctions.,
- "";fter.all, this is the s.earch for the truth, people ought not to forget about said Sullivan, who asked
lawyers to give him briefs outlining what had happened. "This is aserious one; we're all officers of the court;"
The jury heard none of dispute, meaning that it may, not have a bearing on the outcome of the trial.
Stevens, 84, faces seven counts of failing to report on his U.S.. Senate disclosure forms more than
$250,000 worth of gifts and home_ renovations, chiefly from Veco Corp. and its chief executive officer, Allen. The '
Alaska. Republican, who is up for re-election Nov. 4, asked for a speedy trial so he'd have the opportunity to clear
his then. - •
Williams, who worked for Allen, was originally set to be a government witness, but prosecutors decided in the
opening days of the trial flot to use him. It remains unclear why they no longer want him to testify, although he
spent extensive time in D.C., with Justice Department lawyers in preparation for the trial.
Lawyers from both sides discussed the issue with the judge privately but did .not elaborate in open court.
. Prosecutors did allude to Williams being "two weeks overdue" for.something.in Alaska, and,in court filings,
Stevens' attorneys refer to health issues that episodes." FBI - Stevens-2076
Williams got in touch with Stevens' attorneys - at the of prosecutors - after they released him as a
witness and sent him home to Alaska. The conversation they had over the weekend with Williams "casts the
government's decision to send him home - on the eve of Bill Allen's testimony - in a very different light," Stevens'
lawyers wrote in their filings. .
Stevens' lawyers say there's evidence Williams worked far less on the Girdwood home remodel tha.n other
<;.ompany employees have suggested 'in their testimony, including one of the c,ofnpany's bookkeepers who took
the stand Friday.
Such evidence could help' Stevens knock holes in the government's theory that-the Veco work done on his home '
was so extensive that he must have known he was getting benefits above and beyond the $160,000 his lawyers
. said he paid a separate contractor for the work done to double his home in size.
'!We got lucky;'" said one of Stevens' lawyers/-Robert Cary. ·"We ,got his lucky.. that.he.changed.his.prJorposit!on <?f
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In cou;t filings, Cary said that "Mr. Williams informed defense counsel that he spent nowhere near eight hours,
per day, six to seven days per week, on the Girdwood home renovation project - in direct contrast to/the
timesheets that the government has placed in evidence to support its central theory that the unpaid cost of the
project to Veco was $188,000."
No one answered the door or the phone this morning at Williams' trailer in South Anchorage. A pair of pickup
trucks sat in the driv'eway, and what sounded like a TV could be heard playing from behind the door.
Prosecutors said they didn't intend to give the impression th'ey were hiding information and. apologized - but they
were caught off balance by the judge's ire.
"We're distressed that we're being accused of this," said the prosecutor who bore the brunt of the judge's
scolding, Nicholas Marsh.
"This was not a decision that came easily," said Brenda Morris, the lead,prosecutor in the case.
"It would have been very easy to get me on the phone," Judge Sullivan said.
The judge offered Stevens' lawyers a to re-question Cheryl Boomershine, the Veco bookkeeper who
testified Friday about how much money the company spent renovating the home in Girdwood. Boomershine was '
still in Washington this morning and available to come to court.
Jurors weren't told why there was a delay, although Sullivan had half-jokingly suggested to lawyers on. both sides
before the jury came in that he would tell them "the government hid the ball."
Instead, Sullivan joked the Redskins win on Sunday and told them simply that additional information was
available tnat wasn't available last week. Because Boomershine was still in D.C., they were able to bring her back
to the stand to allow attorneys to ask her more questions.
When Boomershine took the stand, Cary walked her through the time cards Williams filed in connection with the
project, trying to establish that all the time and money he spent on the Girdwood project may not have been 100
percent devoted to overseeing renovations at the Stevens home.
ltyou don't know whether Mr. Williams spent time working on other projects for Mr. Allen that had nothing to do
with Girdwood?"
"No," Boomershine said.
Prosecutors continued to build their case by bri.nging to the stand a series of tradesmen who worked on Stevens'
home.
A carpenter who was paid by Veco to build a deck testified he was told to·be discreet about the project when the
chief executive of an oil services company, Bill Allen, 'hired him in 2002. FBI _ Stevens-2077
"He said a certain amount of discretion would need to be used because it was the senator's house," and the
company was actually an oil services firm, not a genera! contractor, testified Brian Byrne, who oversaw the deck
construction.
Joe Bottini asked Byrne he thought Allen would have said that.
"I'm not really sure, other than the appearance of impropriety I believe is what he was.concerned-about," Byrne
said.
Stevens showed a rare smile during the proceedings when Cecil Dale, an electrician, testified about how the
senator had given him a cigar the one time he met him. .
asked Beth' one of Stevens' lawY,ers.
"I ne%r smqked it," Dale said.
Kyle Hopkins ofthe Anchorage Daily News contributeg to ,this report.
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Veco 'No .paper trail'
By RICHARD MAUER and ERIKA BOLSTAD
.Anchorage Daily N'ews
(09/26/0814:26:30)
WASHINGTON - Even as Veco,Corp.'was paying the bills for renovations on Sen. Ted Stevens' home in Alaska,
the oil services compa y covered up the of the work in its books, the corporate. bookkeeper testified
today.
Veco bookkeeper,-Cheryl. oomersnine testified that when she asked for an explanation for a $2,000 handwritten
expense claim from the co struction foreman, an attached note came back with the instructions that there should
be no written records. ."
The orders "no paper trail," c me from Bill Allen, the company's chief officer, Boomershine said,
they were written on the back f the expense form submitted in connection with the 2000 renovation. of Steve
home. . .,
Boomershine also said that they assigned some costs to an account called "Girdwood Consultants." One of the
consultants, she testified, was a plumber. '
There's also no that Stevens or his vyife the cornpC!xlY for al1Y cO-'lstruction costs for the
projects' that began in 1999, Boomershine said. 'Veco kept copies of deposits to its bank'account, Boomershine
testified, and the only checks that ever came in were reimbursements for two charter. flights originally paid for by
Veco.
Other tradesmen who renovated Stevens' home in Alaska in 2000 testified Friday about their work, as
prosecutors began building a case that the Alaska Republica.n never paid a prominent oil services company for
electrical and carpentry work on what Stevens called the "chalet."
Allen, who has already pleaded guilty to bribing state lawmakers in Alaska, is expected to,testify Monday. Allen's
'testimony and secret recordings of conversations between him and Stevens are expected·to be the strongest
evidence in the government case against Stevens. The trial, which had been expected to take four weeks, is
moving so fast that prosecutors might finish their case in eight days. They sped through so many witnesses that
they had to scramble to schedu.le people to testify next week.
Friday, a series of electricians and carpenters described'in detail how they jacked up the home in Girdwood,
Alaska, and installed a lower story, and redid the electrical wiring. In some cases, employees for Veco Corp. --
whose executives were for years the leading campaign contributors to many candidates
g
inclUding,
Stevens -- spent hundreds of hours devoted to on the senator's home. 81 - Stevens-207 ..
Stevens faces seven felony counts of-lying on 'his Senate financial-disclosure forms. The 84-year-old senator is
accused of accepting more than $250,000 in gifts from the now-defunct oilfield services company and Allen.
Among.the.glfts.Stevens is accused of accepting Gir:dwood that,Jif,te.c1Jt from its,
foundation and added a lower story, doubling it in SiZe,.
Some Veco employees spent months'at the Stevens home, according to testimony. Beginning in OCtober iooo,
Roy Dettmer of Littleton, Colo., spent four months working six days,a week, 10 hours a day, installing electric
service in the new sections of the house and rewiring much of the old. '
Every morning, he'd drive'to the Port of Anchorage, where he was assigned to work, sign in using his badge,
drive 45 miles.to In the evening, he wOl!ld have to "badge out" agail) back at the port before he could
go to pay at Vec() ....
weeks'on, two off, 'O'mer said he spent about 400 hours othe project.
Assisttt Attorney Joe Bottini of Anchorage walked Dettmer through his tasks. The service had
been at the rear of the original house, but that was now 15 feet in the air. Dettmer moved it to the other side of
the house in the new garage Veco built, requiring all the old circuits to be extended. That doubled the electrical
capaci'ty from 100 amps to 200 amps. That meant the generator that had been installed by Veco only the year
before had to be rewired and moved as well.
Veco bought the material from an Anchorage supplier, Dettmer said. The new kitchen built by Veco on the second·
floor also had to be wired.
Dettmer said he never met Stevens, but Catherine Stevens, the senator's wife, came around once. The Veco
supervisor, Rocky Williams, introduced him.
"We said 'Hi,' and that was it," Dettmer said.
Doug Alke, a Veco electrician, described installing a backup generator at the residence in the fall of 1999, the
year before the renovations that-doubled the Stevens home in size.
A!ke estimated that he spent an estimated 20 to'24 hours on the job, including coming back a few days after he
and another Veco worker installed the generator to check on whether it was cutting on automatically each week
to recharge the batteries.
The journeyman electrician, who was paid about $19.50 an hour at the time, said he filled out an "overhead
number" on his timesheet, a code that described which client the work should be billed to. The number for the
Stevens job wasn't for a specific client like other jobs were, Alke said. Instead, it was an internal code used for
what he assumed were accounting purposes, he said.
Catherine Stevens stopped by once to bring workers muffins, said another contractor, Mike Luther, a cClrpenter
with Christensen Builders of Anchorage. He also saw Sen. saying he was friendly and "talked to
everyone."
On his way out of the courtroom Friday, Luther waved to Stevens as he walked past the senator at the defense
table.
Friday, both prosecutors and Stevens' attorneys also made sure to the jUry with some terms that are
second-nature to Alaskans, especially those who w.ork on the North Slope oilfields. One of Stevens' lawyers,
Robert Cary, asked Alke what was a "hitch" on the North Slope.
"A 'hitch' is just a rotation," said. "It's slang. Six weeks on, two weeks off."
Alaska might be a very distant place for many of the jurors, but Gov. Sarah Palin's vice presidential candidacy
has made it more familiar than 'it once was. When Alke told the jury he was from her hometown of Wasilla, a
murmur of recognition shot through the courtroom.
Stevens, who has held office since 1968 and is the longest-serving Republican in the Senate, is in a tight re-
election contest with his Democratic opponent, Mark,Begich, the mayor of Anchorage..
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Stevens indicted
False.reports, not illegal gifts, are the issue in the case
(07/29/0823:20:49)
Tuesday's indictment of u.s. Sen. Ted Stevens was a grim day in Alaska's history. Before his legal
troubles, Sen. Stevens had a distinguished career of public service dating back before statehood.
Now the man once hailed as "Alaskan of the Century" faces federal felony charges for allegedly
filing false information on official forms about $250,000 worth of gifts, supplied by the man who
was at the time the state's most powerful political operative, Veco's Bill Allen.
It's a shame the career of such an influential Alaska figure has sunk to this point. Regardless of
whether he is convicted, Sen. Stevens showed bad judgment in getting so financially entangled
with a lobbyist and political power broker who had already had run-ins with the law.
The federal indictment does not charge Sen. Stevens with bribery. It does allege that Bill Allen and
Veco were seeking official actions from Sen. Stevens, and sometimes got them. But there was no
quid pro quo for all the gifts he took, according to federal aut·horities.
, '
Instead, what the indictment describes'is a relationship of mutualback-scratching between a
powerful insider and a powerful politician. Alaskans have seen too much of that already in the Veco
scandal and elsewhere -- and that may help explain why Sen. Stevens was behind in his re-election
race even before the indictment was issued.
It may turn out that what Bill Allen did for Sen. Stevens did not break federal corruption laws or
Senate ethics rules. Nonetheless, Sen. Stevens will have trouble explaining to Alaska voters why
sl1oulc! such cozy arrangements between their elected officials and who want
to them.
BOTTOM LINE: Legal or not, Ted Stevens' dealings with convicted lobbyist Bill Allen are a black
mark against his distinguished career.
Safe Harbor
Its record is reassuring
FBI - Stevens-20S!
Safe Harbor Inn, a transitional housing motel at Fourth Avenue and Sitka Street, wants to expand
to the old Ramada Inn in Muldoon. Some potential neighbors are worried that crime will go,up and
_ property values down, that Safe Harbor wilLbe a magnet for street drunks. Some also complain-
that they didn't know such a facility might be coming to the neighborhood.
First, Safe Harbor is no homeless camp. It's a motel for people who have bl?come homeless but
who are trying to put their lives back together and work toward permanent housing.
Guests can't just walk in off the street. They have to be referred by a sponsoring agency. Guests or
___h_ttp_:_II_www __.a_-d_n_"c_o_rilI_o_p_in_i_ow_v-_p_ri_n_te_f/_st_o_I1'_/4_7_9_1_4_9._h_tin_' l
adn..comI Sen. Ted Stevent)atement on his indictment
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Sen. Ted Stevens' statement on his indictment
(07/29/08 13:45:10)
Statement from Sen. Ted Stevens, R-Alaska, on his indictment:
"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."
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IDetails of indictot of Sen. Stevens
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Details of indictment of Sen. Stevens
.c07/29/0811:15:53)
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Details of the seven-count indictment charging Sen. Ted Stevens, R-Alaska, wIth failing to disclose
more than $250,000 worth of renovations on his Girdwood, Alaska, home and other gifts he received
from VECO Corp., an Alaska oil services company, its founder, Bill Allen:
-From 1999-2006: Stevens knew he was required to list any gifts of nominal value on his yearly
financial disclosure reports and "knowingly and intentionally sought to conceal and cover up his receipt
of things of value by filing Financial Disclosure Forms that contained false statements and omissions
concerning Stevens' receipt of these things of value."
-Summer 2000 to end of 2001: "VECO incurred over $200,000 in materials, labor and other costs in
connection with the work that VECO employees and contractors performed at (Stevens) Girdwood
Residence. These costs included; but were not limited to, approximately $81,775.18 in materials,
labor, architectural design and services, and other costs from approximately June 2000 to December
31,2000, and approximately $110,153.64 in the first three and a half months of 2001 alone."
-2002: "The work performed by VECO employees and contractors at the Girdwood Residence included,
among other projects, the Installation of a first-floor wraparound deck, a plastic roof between the first-
and second-floor decks, a heat system on the roof of the Girdwood Residence, and the
installation and partial removal of rope lighting on multiple portions of the property. These projects
cost VECO approximately $55,000."
-2004-2005: "Stevens contacted Allen and VECO employees multiple times to request that VECO
employees or contractors perform additional tasks at the Girdwood Residence. These tasks included,
without limitation, the installation of multiple kitchen appliances and maintenance on the heat tape
system on the roof of the Girdwood Residence.... Stevens contacted Allen and VECO employees
multiple times to request that VECO employees or contractors perform additional tasks at the
Girdwood Residence. These tasks included, without limitation, roof and gutter repairs, electrical
wiring, and the replacement of sensors."
-2006:. Allen assigned workers to repair the boiler neating system at the Girdwood residence.
-In each case, the inaictment says, Stevens knew that the work on the house he often referred to as
"the chalet" was done by VECO employees and contractors. Stevens, however, "never paid or
reimbursed VECO at any time for the cost of materials provided and labor performed by VECO and its
employees at the Girdwood Residence," the indictment said.
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Unreported gifts tripped up Stevens
NO BRIBERY: Government says senator wasn't in a payback game with Veco.
By ERIKA BOLSTAD
ebolstad@adn.com
(07/30/0801:07:46)
WASHINGTON -- Sen. Ted Stevens got something from Veco and toe oil services company got
something.from Alaska's senior Republican senator, according to Tuesday's federal indictment of
the veteran senator.
But what Stevens got was not a bribe; it,was his failure to report what he got that's the problem,
according to the indictment and one of the top Justice Department officials overseeing the case,
who spoke to the press Tuesday during a news conference.
"Bribery is not charged in this case," said Matt Friedrich, the acting assistant attorney generaUn
charge of thecriminaf division or'the Department' of Justice. "Bribery requires proof of a specific
agreement of a quidpro quo, of this for that. This indictment does not allege such an agreement."
The indictment lays out numerous examples of things that former Veco chief executive Bill Allen
'wimt.ed and got from Stevens, such as 'niultimillion dollar, multiyear federal contracts
with the National Science Foundation and assistance with international V.eco projects in Pakistan
and Russia.
The indictment also very carefully lists the things that federal investigators say Stevens received
from Veco and Allen -- and then didn't disclose as gifts on the annual forms he's required to file
with the Senate detailing his personal finances.
Yet "the indictment does not allege a quid pro quo," Friedrich said.
In other words, what the indictment does not do is say that Allen and Veco gave Stevens those
things specifically in exchange for what the company wanted Stevens to obtain for them.
"Bribery and gratuity cases are tough," said Donald Smaltz, a California lawyer who was app'ointed
as an independent counsel to investigate then-Agriculture Secretary Mike Espy for allegations he
took gifts from growers who had business with his department. "This makes an easier case for the
government."
. FBI - Stevens-2084
The federal'bribery statutes require prosecutors to show that a public official got something of
value in exchange for a specific act that. benefits the person who is bribing them, Smaltz said.
Federal bribery charges also carry a penalty of up to 15 years in prison -- far stiffer than five years
for making false statements. Stevel"!s was charged with seven ()( mak,il}g
- - - on his financial disclosure forms. ,- - -
Often, secret recordings are the only way to prove outright bribery, said Smaltz, whose prosecution
of Espy ended in an acq'uittal. He points to the infamous Abscam case of the late 1970s, where
investigators had videotaped surveillance of elected officials accepting bribes. That was the key to
their convictions, Smaltz said•
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,.. Another more recent example came in Alaska: the conviction of former Alaska state Rep. Vic
Kohring, who was seen on FBI surveillance tapes accepting cash from Bill Allen.
liThe only reason the government was able to make those cases, was because they were using
undercover tactics and jurors ... were able to see precisely what was said by whom," Smaltz said.
"It's very difficult for the defendants to weasel their way out of those cases.
Read Erika Bolstad on our Alaska Politics blog: adn,com/alaskapolitics.
Excerpts from the indictment
"Beginning in or about May 1999, and continuing to in or about August, 2007, in the District of
Columbia and elsewhere ... STEVENS, while a sitting United States Senator, knowingly and .willfully
engaged in a scheme to conceal a material fact, that is, his continuing receipt of hundreds of
thousands of dollars' worth of things of value from a private corporation and its chief execLitive .
officer. II
"... STEVENS· took multiple steps to conceal his continued of things of value from ALLEN and
VECO, Duri.ng the nearly seven-year period in which STEVENS received multiple things of value
from ALLEN and VECO, STEVENS filed and caused to be filed false annual Financial Disclosure
Forms for the years i999 to 2006 that did not report STEVENS' receipt of any thing of value from·
ALLEN and VECO, either as gifts or as liabilities, as required."
"... STEVENS, while during that same time period that he was concealing his continuing receipt of
things of value from ALLEN and VECO from 1999 to 2006, received and accepted solicitations for
multiple official actions from ALLEN and other VECO employees."
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Alaska Sen. Stevens indicted; 'I am innocent'
By LISA DEMER', RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(07/30/0800:51:35)
A federal grand jury in Washington, D.C., indicted long-term U.S. Sen. Ted Stevens Tuesday on
seven counts of filing false financial disclosures, each a felony charge that carries a penalty of five
years in prison and an unspecified fine.
With the indictment, Stevens, an icon in Alaska politics, becomes by far the most powerful
politician charged in the broad, four-year federal investigation into public corruption in the state. To
date, three.state legislators, a high-level official in Gov. Frank Murkowski's administration, two .
businessmen and a lobbyist have been conVicted, while two legislators are awaiting trial.
Stevens said he will fight to save himself and his long career.
"I am innocent of these charges and intend to prove that," he said in 'a prepared statement. "I
have proudly served this nation and Alaska for over 50 years."
At a news conference in Washington to announce the indjctment, Matthew Friedrich, acting
assistant attorney general for the Justice Department's criminal division, said Stevens would be
allowed to turn himself in. Stevens' attorney, Brendan Sullivan of Washington, was notified of the
indictment Tuesday morning shortly before it became public, Friedrich said.
'THINGS OF VALUE'
The seven-count indictment charges Stevens with making false statements by failing to disclose
"things of value" he received from Veco Corp., the now-defunct Alaska-based oil services and
construction company, and from its chairman, Bill Allen, in a scheme that stretched over
years.
At the same time, according to the indictment, Allen and other Veco employees asked Stevens to
intervene on their behalf with the government, and Stevens sometimes obliged.
Stevens received substantial benefits from his relationship with Veco that he never disclosed, the
indictment charged: improvements to his home in Girdwood; an automobile exchange in which he
received a new Land Rover worth far more than his 35-year-old Mustang; and household
appliances.
The federal Ethics in Government Act requires' all senators to file financial disclosure statements-
detailing their transactions during the previous calendar year, including the disclosure of gifts
above a specified value and all liabilities greater than $10,000.
At the news conference, Friedrich said the case involved false disclosures, not bribery, and no
specific actions by Stevens in return for gifts were charged, even though the indictment mentioned
some Veco requests and the favorable responses by Stevens and his staff,
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:> Some of the solicitations were made directly to Stevens and included requests for help by Veco on
its international projects in Pakistan and Russia; requests for federal grants and contracts,
including National Science Foundation contracts worth nearly $200 million; and assistance with
efforts to construct a natural gas pipeline from Alaska's North Slope.
The indictment comes just as Stevens is in the political fight of liis life to win a seventh term. The
fallout was immediate: Under Republican rules governing indicted senators, he had to step aside
from two key committee positions he earned through longevity -- his co-chairmanship of the
Commerce Committee, which oversees fishing and telecommunications, and his ranking position on
the defense appropriations subcommittee, from which he has sent millions in earmarks to Alaska.
Even with his famed c l ~ u t in Washington at least temporarily diminished, Stevens vowed to
continue his campaign. His presumptive Democratic opponent, Anchorage Mayor Mark Begich,
wouldn't answer questions about Stevens' indictment.
.
YEAR AFTER GIRDWOOD RAID
Friedrich said the Justice Department followed its own rules in seeking an indictment when the
evidence y,ras complete and sufficient to bring charges. The political calendar wasn't considered, he
said.
Allen, Veco's former chief executive, and Rick Smith, thecompany's>former vice president of
community affairs and government relations, pleaded guilty May 7, 2007, to providing more than
$400,000 in corrupt payments to public officials from Alaska. Allen and Smith are cooperating and
have been key witnesses in two trials so far.
Back then, there were no direct references in the Allen and Smith charges to gifts they provided to
Stevens, though they admitted making corrupt payments of $243,250 over five years to Stevens'
son Ben, once president of the Alaska Senate. Ben Stevens has not been charged and has denied
wrongdoing.
The charges against Ted Stevens come almost exactly a,year after an FBI and IRS raid on Stevens'
home in Girdwood, the first time those agencies had ever raidedCthe home of a sitting U.S. senator.
At the time-the agents-documented the renovations made in 2000 that were overseen by Allen and
managed by his employees and contractors. The renovations doubled the size of the home.
Stevens has refused to discuss the investigation, except to say he paid every bill he received
connected to the renovation. He has refused to elaborate about whether that answer implied he
knew of work on the house for which he wasn't billed.
The indictment said Stevens made "multiple false representations" to reporters, his friends and his
staff about what he received from Veco and Allen. While it's no crime·for an.official to lie to the
media, prosecutors charged that those statements were part of his long-term effort to conceal
Veco's gifts and benefits.
FBI - Stevens-2G8?
MORE THAN $200,000 ON RENOVATIONS
- From the summer of-2000 to about December-2001
i
Veco spent more than $200,000 on the
Girdwood renovations, including materials, labor and architectural design, the indictment says.
Much of that effort has already been the subject of extensive media coverage based on interviews
with contractors, ex-Veco employees and Girdwood residents who witnessed the work.
For instance, Veco and Stevens hired a construction firm, identified only as "Construction Firm A" in
the indictment, for the renovation project. The company matches the description of Christensen
http://www.adn.comlnewslpoliticslfbilstevenslv.:printer/story/478349:html' 6/4/2008
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IAlaska Sen. steUindicted; 'I am innocent'
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r .Builders of Anchorage, whose president, Augie- Paone, told the Daily News in May 2007 that he was
hired by Veco but sent invoices to Stevens and that Stevens paid by personal check from a new
account.
The charges say Stevens never paid Veco anything for the materials or labor provided by Veco, its
employees and contractors but clearly knew that Veco did a lot of the work.
Paone said he fully cooperated with the government. The indictment echoes his assertions in the
interview, adding that Construction Firm A focused on carpentry"and finish work, and Veco
employees did much more.
PRAISE FOR VECO WORKERS
In an e-mail to Allen Sept. 24, 2000, Stevens was full of praise for Veco and its employees,
according to the indictment. "We've never worked with a man so easy to get along with as
(unnamed 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." The indictment goes much
further than what was previously known and reveals that maintenance on the house extended into
2006. When something went the charges say, Stevens asked Veco for help much as
someone else might call a plumber.
By 2006, the concealed "things of value" topped $250,000,
The indictment has no reference to whether the government intercepted calls made to Stevens
from a.ny of Allen's or Smith's phones that were Wiretapped under court order starting in 2005.
Once Allen agreed to plead guilty, on Aug. 30, 2006, he placed several calls to public officials,
inclUding Stevens, in a sting effort. The content of those calls not been disclosed.
The 1999 vehicle exchange cited in the indictment concerned a new car for Stevens' "dependent
child," not naming the person. At the time, his only dependent child was daughter Lily.
Allen transferred a new 1999 Land Rover Discovery, which he had bought for$44,OQO,to Steyens.
In exchange, Steven? gave Allen, a car collector with alove of Fords, a'f964 an(j $5,000..
But the Mustang was Worth less than $20,000, according to the indictment.
Lily Stevens, now 27, is the sole child of Stevens' marriage to his second wife, Catherine. Lily, a
law clerk in Washington, is engaged to be married in late August. A call to her Washington office
was not returned.
Stevens' first Wife, Ann, was killed in the crash of a private jet in in 1978 that injured
Stevens. Ted and Ann Stevens had five children together, including Ben.
FBI - Stevens-20SS
ALASKAN OF THE CENTURY
Stevens, 84, is the longest-serving Republican in the U.S. Senate. From 2003 to 2007, he was
Senate president pro tem and third in line to the presidency. With political power thatincreased
with his longevity, Stevens came to represent Ala-ska's clout in Congress. In January 2000, Stevens
was named "Alaskan of the Century," and the Anchorage airport was renamed in his honor that
July.
That was also the year of the bulk of the Girdwood home renovations.
614/2008
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adn.com IAlaska Sen. ste'Oindicted; 'I am innocent'
,1 '.
• other senator, Lisa Murkowski, expressed shock at the indictment in a prepared statement
tod,ay. '
"I know Ted Stevens to be an honorable, hard-working Alaskan who has served our state well for
as long as we have been a state," she said. "As to the charges, we are at the beginning of the
cril11inal process and there is a judicial procedure in place that will be followed."
Murkowski, a Republican, probably owes her election in 2004 to Stevens, She was trailing former
Gov. Tony Knowles in the polls until the final weeks, when Stevens began blitzing the state with
commercials saying he needed her beside him in Washington.
Sen. Daniel Inouye, D-Hawaii, Stevens' best friend in the Senate, said in a brief statement: "In our
legal system, a man is presumed innocent until proven gUilty in a court of law.... As far as I am .
concerned, Ted Stevens remains my friend. I believe in him."
Stevens and Inouye are both World War II veterans and call each other "brother." When Stevens
became chairman of the Senate Cqmmerce Committee in 2005, he named Inouye vice chairman
rather than the usual term "ranking member" afforded the senior member of the opposite party.
, .
Inouye returned the favor last year when Democrats took over the Senate and he became
chairman.
Richard Mauer and Lisa Derner reported from Anchorage and Erika Bolstad reported from
Washington, D.C. '
Stevens' statement
JULY 29, 2008 - 12:40 PM
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 qf these charges on my. family disturbs me greatly.
I am innocent of these charges intend to prove that.
FBI - Stevens-2089
LPrint I[ _Close Window. -l
Copyright © Wed Jun 4 08:16:27 UTC-0900 20081900 The Anchorage Daily News (www.adn.com)
http://www.adn.coin/news/politics/fbi/stevens/v-printei/story/478349.html 6/4/2008
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BRIEFING
PREPARED FORTHE FEDERAL BUREAU OF INVESTIGATION BY BULLETIN NEWS 'M'M'.BULLETINNEWS.COWFB!
TO: THE DIRECTOR AND SENIOR STAFF
DATE: WEDNESDAY, JULY 30, 2008 7:00 AM EDT
TODAY'S EDITION
FBI News
Stevens Indicted On Charges Of Failure To Report VECO Gifts 2
The Error! Bookmark not defined.
FBI Helping Philadelphia Police Fight Crime In Violent Neighborhood 4
Counter-
Miller Testifies At Hamdan Trial About InterviewWith Bin Laden 5
Citing Pistole Speech, AI Haramain Seeks Reinstatement Of Lawsuit 6
Rand Study Questions Bush Antiterrorism Strategy 6
ACLU Claims Fusion Centers Lack Oversight, Threaten Civil Liberties 7
Three Environmental Activists Charged With ELF-Inspired Vandalism 7
US, Iraq Seen Moving .Closer To Security Pact'?
Iraq Reconstruction Costs Estimated At Nearly $120 Billion 7
US, Iraqi Forces Launch Offensive In Diyala Province 8
Political "Turf War" Said To Threaten Iraqi Oil Industry 8
10C Lifts Ban On Iraqi Athletes 8
White House Responds With To Pakistani Overture 9
US Envoy Expresses Concem About Northern Alliance Buildup 9
Friedman Urges Caution On Afghan Troop ·Surge." 9
Criminal Investigations
Former Newark Mayor Sentenced To 27 Months In Prison 10
Cuyahoga Commissioner Releases Details Of Evidence Sought By FBI 10
Donaghy Sentenced To .15 Months In Prison 11
Boston Police Officer Sentenced To Prison For Drug Protection Conspiracy 11
JUdge Rules New Mexico Securities Broker Should Be Banned For Paying Bribes.12
Five FLDS Members Arraigned In Texas On Child Abuse Charges 12
FBI Investigating Beating Death Of Illegal Alien In Pennsylvania 12
Michigan Student Will Not Be Charged Over Noose Incident 12
FBI Joins Investigation Into Noose Mailed To Orlando Commissioner 12
Indiana Police Investigating Cross Buming In Black Family's Yard 12
Masked Gunman Steals $500,000 In Jewelry From Salesman In 13
Suspicious Devices Cause Bomb Scare At Ohio Post Offices 13
Boston Man Accused Of Kidnapping "Very Elusive And Secretive." 13
Financial Crime &Corporate Scandals -
Banker Arrested In Argentina On US Embezzlement Charges 13
Former Enron Subsidiary CEO Agrees To Insider Trading Settlement 14
New York Judge Dismisses Fraud Suit Against UBS 14
Siemens Seeks Damages From Former Executives In Corruption Scandal 14
CyberCrime
FBI - Stevens-2090

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.. us Child Porn Fugitive Arrested In Philippines 14
Other Washington News
Feinstein Still Questions Dismantling Of California Corruption Unit 14
IG Report Sparks Debate Over Propriety Of Political Hiring 15
ICE Probes Federal Employees Who May Have Obtained Diplomas 15
SEC Extends limits On Short Selling For Some Financial Stocks 15
FTC Pressures Food Industry To Stop Targeting Kids With Junk Food Ads 15
Reach Deal On Safe Toy Legislation 16
Federal Judge Seeks SCOTUS Review Of Drug Dealer's Sentencing 16
International News
Karadzic Extradited To The Hague As Protesters March In Belgrade 17
Bush Meets With Chinese Dissidents 17
Bush Signs Bill Tightening Sanctions On Burma 18
Rice To Host Latest Round Of Talks 18
Rice Urges Iran To Accept Economic Incentive Package 19
Ecuador Calls For Closure Of US Air Base 20
The Big Picture:
Headlines From Today's Front Pages 20
Washington's Schedule:
Today's Events In Washington 21
FBI NEWS
Indicted On ChC[lrges Of Failure To VECO Gifts._ ABC World-News (7/29, story 4,.2:25,
Gibson,. 8.78M) reported, "Well, there was something of apolitical earthquake in the US Senate, todai Aseven-count federal
indictment was filed against Senator Ted Stevens of Alaska, the longest serving Republican in the Senate, on charges he
concealed more than $250,000 of gifts and services from an oil company,. which helped renovate his home in Alaska: ABC
(Tapper) added that "Stevens resigned from his leadership po-sts in two key committees...after becoming the :11th sitting US
senator in American history to be indicted." .,. Matthew Friedrich, Justice Department Criminal Division: "These items were
not disclosed on Senator Stevens' financial disclosure forms, which he filed under penalties of perjury, either as gifts or as
liabilities." .. Tapper: "His RepUblican colleagues, today, stood by him." Sen. Arlen Specter: "I've known Ted Stevens for 28
years, and I've always found him to be impeccably honest."
The CBS Evening (7/29, story 3, 1:30, Couric, 7.66M) noted that "for several years as President Pro Tem, he was
third in line to the presidency. But now...Stevens is facing criminal .. , Friedrich: "These renovations are alleged to
have.included the addition of a new first floor. with multiple bedrooms and a bathroom as well as a finished'full basement."
CBS (Axelrod) added: "The feds say they've got Stevens for not including the work on federal disclosure forms, but
prosecutors stopped short of charging Stevens with actually taking a bribe, Another case it's not the crime, it's the
cover-up." Andrew Cohen, CBS News legal analyst: "We've seen this pattern over and over again with high-profile figures
from Martha Stewart to Lewis Libby, and now to Ted Stevens."
NBC Nightly News (7/29, story 4, 2:00, p., Williams, 9.87M) reported, "In a written statement, Senator Stevens said
today's indictment 'saddens' him, and that he has 'never knowingly submitted afalse disclosure form." But analysts say this
could be afatal blow to his political future." Chuck Todd, 'NBC News political director: "Senator Stevens was considered one
of the most vulnerable Republicans running for reelection in 2008. Now, with an actual indictment hanging over his head, it's
probably impossible for him to survive." Williams: "Prosecutors say they brought the charges when the case was ready, and
the Alaska election was not afactor." •
Fox Special Report (7/29., lead.story, 2:55,.Hume),reported, "The Justice Department says. Stevens falsified disclosure
statements and lied to investigators to cover it up. Steven says he is innocent." .. , Fox News (Bream) noted that in an
interview Monday with Alaska Public Radio, Stevens said, "' really believe that' have nQt done anything that is wrong in the
process of my official activities: Bream: "Even though this is a Republican administration, the Justice Department wanted to
be very clear that this election year indictment is arriving now only because the case was ready for prosecution." Friedrich:
·Partisan politics should play no part either in what charges we bring or in things like, you know, the timing of indictment or
that type of thing. That policy has been followed to the letter in this case:
FBI - Steven5-2091
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The AP (7130, Jordan) reports that Stevens "is the first sitting U.S. senator to face federanndictment since 1993. He
declared, 'I am innocent of these charges and intend to prove that.'· The AP notes that the "indictment...caps a lengthy FBI
investigation that has upended Alaska politics and brought unfavorable attention to both Stevens and his congressional
colleague, GOP Rep. Don Young. Both are running for re-election this year." VECa founder Bill Allen "agreed to cooperate
with the FBI as part of a plea deal for alesser penalty. That cooperation included letting the FBI tape his phone calls with
Stevens, though those calls do not appear as part of the indictment."
The Washington Post (7/30, A1, Johnson, Kane, 696K) reports, "Sen. Sheldon Whitehouse...said federal prosecutors
would be very careful about bringing such ahighly sensitive indictment, especially in the months before an election. 'You go
over it and go over it and go over it, to make sure you got it right,' he said. 'It's more of making sure you've got it all right, and
then, in the DaJ's case, make sure you've got all the appropriate sign-offs from above,'" At yesterday's press conference,
"Friedrich said prosecutors closely followed internal protocols for bringing criminal charges against elected officials. 'We bring.
cases based on our evaluation of the facts and the law,' he said. 'We bring cases when they are ready to be charge, and
that's what happened here,' Stevens will be allowed to surrender to authorities on his own terms, Justice Department officials
said."
The Alaska Daily News (7/30, Demer, Mauer, Bolstad) reports, "With the indictment, Stevens, an icon in Alaska politics,
becomes by far the most powerful politician charged in the broad, four-year federal investigation into public corruption in the
state.... Stevens said he will fight to save himself and his 'long career." The Daily News notes, "At the news conference,
Friedrich said the case involved false disclosures, not bribery; and no specific actions by Stevens in return for gifts were
charged, even though the indictment mentioned some Veco requests and the favorable responses by Stevens and his staff.
Some of the solicitations were made directly to S,tevens and included requests for help by Veco on its international projects in
Pakistan and Russia; requests for federal grants and contracts, including National Science Foundation contracts worth nearly
$200million; and assistance with efforts to construct anatural gas pipeline from Alaska's North Slope.,"
The Wall Street Journal (7/30, A3, Perez, Wilke, Carlton, 2.07M) reports, "The indictment unsealed Tuesday was
narrow, given the breadth of the year-long investigation by the Justice Department, FBI, Internal Revenue Service, and other
agencies. Beyond Mr. Stevens's alleged ties to VECa, the FBI is continuing to look into the involvement of Mr. Stevens and
his business partners in avariety of real-estate deals in Alaska and elsewhere, people close to the federalinvestigatiqn
In addition, these people said, the FBI has been investigating whether business partners, friends or relatives may have
benefited from earmarks or other federal spending backed by the senator.,· The Journal notes, "In the indictment...
prosecutors didn't allege any quid pro quo in Sen. Stevens's relationship with VECO., However, prosecutors alleged that
during the time that Sen. Stevens concealed the gifts, he 'could and did use his position and his office on behalf of VECO,'"
The New York Times (7/30, Johnston, Herszenhorn, 1.12M) reports that the indictment "comes nearly ayear to the day
after F.B.1. agents raided the senator's home as part of a long-running and expansive public corruption investigation in
Alaska. Mr. Stevens was informed of the indictment through a telephone call to his lawyer on Tuesday morning and was
allowed to surrender instead of being arrested. ... Mr. Stevens declared his innocence and his intention to fight the charges
against him in astatement posted on his Web site. 'I am innocent of these charges and intend to prove that,' he said.
The Washington Times (7/30, Lengell, 83K) notes, "Other members of Congress currently under indictment include Rep.
Rick Renzi, Arizona Republican, who is facing federai wire fraud and money laundering charges and is retiri.ng at the end of
this term, and Rep. William J. Jefferson, Louisiana Democrat, who was indicted on racketeering and bribery charges. Nearly
a dozen other members also have reportedly come under investigation for corruption." Senate Minority Leader Mitch
McConnell declined to comment 0" the accusations against Mr. Stevens." Senate Majority Leader Harry Reid "also said little
aboy,t Mr. Stevens' legal trouble, and would not indicate whether the Republican conference should ask the lawmaker from
Alaska to step down from the chamber." .
Roll Call (7/30, Yachnin) reports, "Stevens has previously asserted that he personally paid outside contractors for the
home renovations - FBI agents raided the property in 2007 as part of the ongoing investigation - although he has said
VECa personnel did review bills from those contractors. But Allen, who along with another .high-ranking VECa official
pleaded guilty in May 2007 to providing more than $400,000 in payments to Alaska state officials, has testified in court that he
used company funds to pay for some of the construction costs as well as provided company employees to perform the
remodeling work." However, Roll Call also notes that Friedrich said, "Thjs indictment does not allege aquid pro
.Q.Q (7/30, Hunter,- Staff) reports, "Stevens' closest friend in the Senate and a fellow World War II veteran, Hawaii
Daniel K. Inouye, said Stevens should be considered 'innocent until proven guilty,' adding that the indictment should
not impact Stevens' ability to do his job. Another fellow World War II and Senate veteran, John W., Warner, R-Va., said
Stevens has 'been a hero and a fighter, and he's been a fighter for his country's interests and a fighter for his state ever
since.'" .
On PBS' NewsHour (7/29, Lehrer) the Washington Post's Carol Leonnig said, "What's alleged is afailure to disclose and
FBI - Steven9- 2092

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concealing these gifts, which is very serious, but bribery is much more serious and much more difficult to prove. That is,
indeed, what prosecutors and investigators began investigating, concerns that the senator may have been receiving
something of value in aquid pro quo...but that is not what is charged. And that has, of course, caused alot of discussion in
Washington today about whether or not the prosecutors essentially just didn't have enough evidence to prove it or didn't
believe that it occurred."
The Los Angeles Times (7/30, Hook, Murphy, 8331<) notes, "The high political profile that Stevens, 84, has established
could help him ride out, at least initially, the uproar triggered by his indictment Tuesday on charges that he failed to report gifts
worth aquarter-million dollars. The first threat to his hold on power will come next month, when he faces achallenge in his
state's Aug. 26 Republican primary. If he survives that, Stevens will face atough Democratic rival in November."
The Hill (7/30, Raju, Bogardus), Seattle Times (7/30, Bemton, 2171<), FinanciaLTimes (7/30, Luce), AFP (7/30), and
NPR's All Things Considered (7/29, Kaste, Norris) also report on Stevens' indictment, as did CNN, Fox News, MSNBC, CNBC
and Bloomberg TV throughout Tuesday afternoon and evening. Additiomilly, the AP (7/30, Davis), McClatchy (7/30,
Lightman) and the Washington Post (7/30, AB, Cillizza, Kane, 696K) analyze the expected political fallout for the GOP..
Stevens Delayed Lifting Of Pakistan Sanctions Until VECO Dispute Resolved. The Los Angeles Times (7/30,
Neubauer, 833K) reports that in 1999, the government of Pakistan was "desperate for the removal of powerful military and
economic sanctions imposed after the country conducted nuclear tests in 1998. Many hundreds of millions of dollars in trade
was at stake. Stevens was the chairman of the conference committee that was considering allowing that change. But first,
according to Capitol Hill sources, he made it clear that he wanted Pakistan to resolve a multimillion-dollar dispute" with
VECO. The company "is at the heart of the Stevens indictment handed down Tuesday" and prosecutors outlined hundreds of
thousands of dollars in financial favors VECO allegedly did for Stevens. What was less clear was what Stevens did for VECO,
though the indictment mentions - without elaboration -- that VECO asked for his help with projects in Pakistan and Russia,
among other favors."
Other Indictments Seen As Possible. The AP (7/30, Quinn) reports that Stevens "could be the biggest prize caught in
awidespread federal investigation into corruption of Alaska politics, but his indictment might not be the last. The offices of six
state lawmakers were raided two years ago, and all but two have either been charged or found guilty. The only exceptions
are Stevens' son, Ben" and Sen. Donny Olson." Rep. Don Young "is also under federal investigation and his campaign is
hemorrhaging money on legal fees with aprimary against aformidable opponent, Lt. Gov. Sean Parnell, less than one month
away." The AP notes, "The FBI is investigating Young's fundraising practices. He has not been charged. Federal authorities
are also investigating an unrelated earmark for a Florida interchange sought by a developer who was also a
campaign contributor."
More Commentary. The Washington Post (7/30, A14, 696K) editorializes" "It is notable that prosecutors sought only
false-statement charges against Mr. Stevens for failing to report the alleged gifts; despite the language in the indictment about
Mr. Stevens's alleged help for Veco, he was not charged with the more serious offense of taking a bribe or illegal gratuity.
Nonetheless,theJacts as por!rayed in the indictment appear devastatingJar Mr. Stevens, who was,already facing Cil diffifuJt
reelection race this year." The Post adds" "Mr. Stevens said, in a statement posted on his Web site yesterday, that he was
'innocent of these charges' and had 'never knowingly submitted afalse disclosure form.' We look forward, as we imagine his
constituents do, to hearing the explanation of how" exactly, he thought all these renovations were being financed."
The Wall Street Journal (7/30, A14, 2.07M) editorializes that the Stevens indictment "is another blow to the Republican
Congressional reputation for honest government .- as well as the party's chances of avoiding big losses in November. Minority
parties don't typically defeat amajority when more of their own Members are being indicted for corruption. ,'" If Mr., Stevens
insists on running again, Alaska Republicans will have achance to render their own verdict in an August 26 Senate primary.
Some political hygiene would seem to be in order.,"
Meanwhile, New Republic senior editor Michael Crowley writes in aWashington Post (7/30, 696K) op-ed, "Stevens says
he is innocent, but if he's convicted, few tears will be shed in Washington. Stevens cultivated a tyrannical image, and
personalized politics to an extreme degree, dividing the world into friends and enemies and showing no mercy. This outlook
carried him to great heights. But, nourished by the culture of aRepublican-dominated Congress, it eventually became toxic."
FBI - Steven5-2093
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Anchorage Daily News
Stevens' trial scheduled before election
By ERIKA BOLSTAD
ebolstad@adn.com
(07/31/0818:55:49)
I Print Page I(. _.,)
FBI - Stevens-2094
WASHINGTON - Sen. Ted Stevens will have the opportunity to clear his name in a federal court
before the Nov. 4 election, but a judge seemed unlikely to move the case to his home state where
jurors might be more to the 84-year-old political titan.
The Alaska Republican made his initial appearanceThursday in federal District Court in
Washington. He pleaded not guilty to seven counts of failing to disclose gifts investigators say he
received from Bill Allen, the former chief of the oil services company Veco.
The
'
84-year-old lawmaker, a former U.S. Attqrney, prosecuted wrongdoers in Alaska in the 1950s
and has filed briefs with the Supreme Court. But Thursday's court appearance was his first as a
defendant in a criminal case.
Stevens isn't trying to "ask for any special favors because he's a senator and served 40 years in
the Senate," said his lawyer, Brendan Sullivan. BiJt, "he'd like to clear his name before the election.
This is not a complex case. It should be one that moves quickly."
U.S. District Judge Emmet G. Sullivan set a tentative trial date of Sept. 24
"The reason for your request is not an insignificant one," the judge said. "I can appreciate why the
senator would like to have this matter commence and concluded before the election."
Stevens' attorney told the judge it was the first time in his career that he recalled asking for a
criminal trial to be moved at such a fast clip. On his way into the courthouse Thursday afternoon,
Stevens waved to the television cameras lining Pennsylvania Avenue, within walking distance of the
Capitol. He waited qUietly for the proceedings to begin and was greeted politely by the judge, who
welcomed him to the courtroom by saying "Good afternoon, senator."
Stevens said little during the hearing, but followed it closely. When it came time to enter his plea,
his lawyer did it for him. After the first segment of the hearing, Stevens left the hearing room with
his arms around his wife, Catherine, and one of his daughters, Beth. When it concluded, Stevens
and his family and lawyers took the elevator down to a side exit, where he was whisked away in a
black Cadillac.
.
Stevens' office issued a statement at the end of the day with the senator reiterating his innocence.
"I am humbled by all the outpouring of support, expressions of friendship, and. offers of prayers,"
the statement said. "This process has lasted for more .than a year, causing great distress to my
family and confusing the Alaskans who have put their trust in me for more than 40 years.
"When'all the facts come out at the trial, Alaskans will know that I continue to be a dedicated
public servant and that I am working hard for them every day."
j (', IStevens' trial schOled before election
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Stevens is charged with making false statements about more than $250,000 worth of goods and
services that he allegedly received from Veco Corp., the now-defunct Anchorage-based oil services
and construction company, and from its chairman, Allen. The senator is the highest-profile
politician to be caught in the four-year-old federal corruption probe, which has led to the conviction
of three state lawmakers, a high-level official in Gov. Frank Murkowski's administration, two Veco
officials and a lobbyist. Two other state legislators are awaiting trial.
Prosecutors said they could be prepared to bring Stevens' case to trial at the end of September.
Brenda Morris, the lead Justice Department prosecutor on the case, also told the judge they could
begin handing over discovery materials in the case as soon as Stevens' attorney gave them a 500-
gigabyte computer hard drive.
Morris said the evidence they will share includes video and audio recordings and "consensual
monitoring," which is when one of the parties to a conversation has agreed to its recording but the
other person is unaware.
The need for such a large computer hard drive suggests that voluminous amounts of recorded
evidence will playa part in this trial, much as it has in other corruption cases brought in Alaska.
It's not clear whether prose!=utors will use recorded conversations between Stevens and Allen in'
court, but Allen's cooperation and that of the No.2 at Veco, Richard Smith, in the case has been
instrumental in other convictions. So have the surveillance videos and conversations recorded by
the FBI. . ,
The two pleaded guilty in May 2007 to making more than $400,000 in corrupt payments to public
officials from Alaska. Allen agreed to cooperate with investigators in return for leniency in his own
sentencing.
"It's generally understood up here that both Allen and Smith were engaged in a sting operation for
approximately six months after they agreed to cooperate," with federal investigators, said Doug
Pope, who represented one of theJobbyists who pleaded guilty, Bill Bobrick. He also represents
former state Rep., Bruce Weyhrau'ch; who is awaiting trial.
"A whole lot of telephone calls were recorded when they were talking to public officials," Pope said.
"I've listened to every tape they've produced, and some of which 'involve people who are involved
in the Stevens case. My take on it is that Allen and Smith were trying to set people up."
"ONLY THING THAT CONVICTED'VIC"
John Henry Brown, a lawyer for Vic Kohring, a former state representative, said that jurors
approached him after his client's trial and said that video evidence was what convinced the jury to
find him gUilty. '
"One of the jurors contacted us, and told us the only thing that convicted Vic was the last tape...
(when) Vic said, offhandedly to Bill (Allen), 'I won't vote on that if you don't want me to.' That was,
-really the only thing that convicted Vic,"'Brown said.
Brown also said that it could help Stevens to move the trial venue from Washington D.C. to
Anchorage, even though Judge Sullivan seemed disinclined to do so.
"I'm sure the (prosecutors) want to keep it in D.C. because everyone in Alaska loves Uncle Ted,"
Brown said.
FBI - Stevens-2095
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The judge set a hearing on Stevens' change-of-venue motion for Aug. 19, but questioned Stevens'
lawyer about why Stevens would push for such a motion when all parties had worked hard to find a
trial date-in Washington, D.C., that allowed the case'to be heard.before the election. .
Brendan Sullivan said that they thought about 90 percent of the witnesses in the case would be
from Alaska and that it would make it easier. If possible, they would like the judge to come to
Alaska, Stevens' lawyer said.
They-'re prepared to work around the geographic challenges, Morris said.
Stevens wasn't required to post bond, but he does have to surrender his passport and get
permission from the court if his duties as senator require him to lei:IVe the country. If convicted,
Stevens could face an unspecified fine and as much as five years in prison on each of the seven
counts.
Most of the alleged gifts to Stevens from 1999 to 2006 came during a renovation that doubled the
size of a house he owns with his Wife, Catherine, in Girdwood. The company's employees and
contractors performed architectural design services, put the.house on stilts and installed a new
three-bedroom first f1qor, a finished basement, a garage, a Viking gas range and a wraparound
deck, according to the indictment.
While Stevens paid a construction firm for its work, he never reimbursed Veco or its contractors,
even while staying involved in the progress of the work, the indictment said. Stevens also is
accused of trading his vintage Ford Mustang and $5,000 to Allen in the spring of 1999 for a new
Land Rover Discovery worth about $44,000, a car he told Allen he wanted for one of. his daughters.
Stevens' Mustang worth about $20,000 at the time, according to the indictment.
Meanwhile, as Stevens then served as the powerful chairman of the Senate Appropriations
Committee, Allen and VECO sought his help with international projects, grants from the National
Science Foundation and funding for a natural gas pipeline on Alaska's North Slope, the grand jury
charged in its indictment.
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FBI - Stevens-2096
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:1 adp;com tStevens money a kt60 tainted for some
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Stevens money a bit too tainted for some
GOP: Those facing tryto insulate themselves by donating funds obtained
from Stevens to charity.
By GREG GORDON
McClatchy Newspapers
(07/31/0801:25:56)
-
WASHINGTON ,.- Republican senators facing re-election challenges sought to insulate themselves
from indicted Sen. Ted Stevens on Wednesday by promising to donate to charity tens of thousands
of dollars they received from the veteran Alaska lawmaker's political action
Senate Minority Leader Mitch McConnell of Kentucky and Texas Sen. John Cornyn, the chairman of
the Republican Conference, the way, with each disclosing that he'd relinquish $10,000 in
campaign donations from Stevens' Northern Lights PAC.
Minnesota freshman Sen. Norm Coleman, who's fighting to win re-election against comedian-
turned-politician AI Franken, decided to give away $20,000 that his campaign and his own
leadership PAC got from Stevens'PAC:;.
The GOP senators acted a Stevens was indicted on,' charges of lying to conceal more than
$250,000 in gifts from Veco Corp., a former Alaska oil services company at the center of a public
corruption scandal that already has netted seven criminal convictions.
North Carolina Sen. Elizabeth' Dole acted quickly on Tuesday, announcing that she'd give $10,000
from Stevens' PAC to a campaign to fight hunger.
,Freshman Sen. John Sununu:of·New:Hampshire made-a similar. decision-on-Wednesdayas-his
Democratic rival, former governor Jeanne.Shaheen, issued a press release charging that his re-
election campaign was funded,by $45,000 in "tainted" cash from Stevens and another $65,000
that the Alaska senator raised on his behalf.
Meantime, the Republican Party of Alaska on Wednesday disclosed that it's donated $34,500 it
received from Veco 'executives to a half dozen Alaska-based charities. The party received more
than $56,000 in donations from the company between 1997 and 2004, but spokesman McHugh
Pierre said that more than $20,000 of those funds had been spent when the corruption scandal,
became public in 2006.
FBI - Stevens-2097
Democratic Sen. Daniel Inouye of Hawaii, one of Stevens' closest friends, however, said he
wouldn't give away any of the $13,000 he received from Veco executives. He said he didn't solicit
the contributions, and "to my knowledge they were not made illegally."
- - - - -- - -- -- - -- - - - -
Veco executives gave at least $35,OOO-to Stevens' PAC in recent years, Federal Election
Commission records show. Most of it came from former Veco CEO Bill Allen, who pled guilty last
year to making illicit payments to Alaska politicians and allegedly arranged for free renovation work
on Stevens' house in Girdwood. In all, Veco employees made more than $600,000 in political
contributions between 1993 and 2007,.virtually all of it to Republicans.
hUj>:l/wWW.adh.c·omJIiews/politiCs/fbilstevehslv-pdnterlstoryI480 61112008
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In their effort to distance themselves from Stevens and Veco, the Republican senators are giving
away more money than the company's employees gave to Stevens' Northern L i g h t ~ PAC.
Republican senators, however, rejected calls to surrender money they received in previous election
cycles from Stevens' PAC, which,the GOP elder statesman routinely used to support his colleagues'
campaigns. .
Numerous Republican legislators last year donated to charities campaign money they received from
Allen and other Veco executives. But legislators Wednesday continued to try to draw an array of
ethical lines while trying to avoid any taint from the <;harges against Stevens. '
Sen. Lisa Murkowski, Stevens' Alaska Republican.colleague, receiv.ed $41,250 from Veco executives
for her victorious 2003-2004 campaign. Last year, she donated to charity $8,000 in donations from
Allen and former Veco vice president Richard Smith, who pleaded guilty to corruption charges last
year, but kept donations from other Veco executives. . .
Her spokesman, Mike Brumas, said Wednesday' that to give away donations from other Veco
employees would "impugn the integrity of a lot of good Alaskans."
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, I Sen. Ted judge in corruption case
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FBI - Stevens-2099
Sen. Ted Stevens to face judge in corruption case
By MAlT APUZZO
(07/31/0806:40:32)
Alaska Sen. Ted Stevens Is due In federal court Thursday to answer charges that he lied about
hundreds of thousands of dollars in gifts from an oil services contractor.
Stevens isthe Senate's longest-serving Republican and has been a dominant figure in
congressional politics for a generation. After being indicted on seven counts of lying on Senate
disclosure forms, Stevens was ordered to surrender in federal court and appear before a judge
Thursday afternoon. A throng of reporters and television crews awaited his appearance.
Stevens had been scheduled to appear at a pretrial services office earlier Thursday, to be
interviewed by court officials but, under an unusual arrangement, he arrived for that meeting
Wednesday afternoon, avoiding the media attention. U.S.. Marshal George Walsh, whose office is in
charge of booking defendants, said he was unaware of the arrangement until Thursday and was
disappointed that it would appear Stevens received special treatment.
Court spokeswoman'Jenna Gatski said Stevens made an early appointment with'a pretrial'services
officer. Though a judge's order called for Stevens to appear for that meeting Thursday, Gatski said
the pretrial office sets Its own schedule. Stevens appeared late Wednesday afternoon but within
business hours.
Stevens, a former federal prosecutor, has said little about the corruption investigation that has
dogged him for more than a year. Thursday's court hearing was likely to be no different. He was
to plea,d not guilty, but initial court appearances, are ,usually brief.
The indictment is a blow to the senator's re-election bid. Once a seemingly invincible political
figure, he now faces both Democratic and Republican challengers who hope his legal woes make
him vulnerable.
Some GOP colleagues have distanced themselves from Stevens. A spokeswoman for John McCain's
campaign said Wednesday that the indictment was a "sad reminder" that the next
president will have to work to rebuild the public's trust.
Nicolle Wallace said McCain and Stevens famously clashed over the appropriation process. McCain
regularly says on the presidential campaign trail that appropriations are subject to corruption that
causes voters to lose faith in government.
Stevens has steadfastly maintail1ed his innocence, 'and h,is campaign bas plec;lged, wJlI, ,
press on with his re-election race.
He would have to ask U.S. District Judge Emmet G. Sullivan for permission to travel. Stevens was
expected to remain free while he campaigns and attends to Senate business, but Sullivan was to
decide what rules the senator must abide by while he awaits trial.
·http://www.adn.comlnews/alaska/ap_alaska/v-printer/story/480383.html
tq"(A.-+"",,-I)'C P'I,=-
Stevens, 84, is accused of concealing more than $250,000 in gifts and home remodeling services
he received from VECO Corp., a once powerful contracting firm. Two top VECO executives have
pleaded guilty to bribing state The executives cooperated with the FBI and provided
information about Stevens.
adn.com I. Sen. Ted face judge in corruption case
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If convicted, he faces up to five years in prison on each of seven counts.
The indictment stops short, however, of charging Stevens with bribery or other traditional
corruption charges. Despite winning cooperation from the VECa' executives and the
senator's home, the Justice Department said it could not prove a this-for-that corruption case.
His indictment is the culmination of an FBI investigation that for years has sent tremors through
Alaska's political system. Several state lawmakers have been charged and others, including
Stevens' son, Ben, remain under scrutiny.
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FBI - Stevens-2100
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...;::""... IStevens due in COOthis moming
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Stevens due" in court this morning
The Associated Press
(07/31/0808:51:51)
I ,Print Page. I(_.,. CloseWiQdQW
Alaska Sen. Ted Stevens is due in federal court Thursday to answer charges that he lied about
hundreds of thousands of dollars in gifts from an oil services contractor.
Stevens is the Senate's longest-serving Republican and has been a dominant figure in
congressional politics for a generation. After being indicted on seven counts of lying on Senate
disclosure forms, Stevens was ordered to surrender in federal court and appear before a judge
Thursday afternoon. A throng of reporters and television crews awaited his appearance.
Stevens had been scheduled to appear at a pretrial services office earlier Thursday to be
interviewed by court officials, but, under an unusual arrangement, he arrived for that meeting
Wednesday afternoon, avoiding media attention. U.S. Marshal George Walsh, whose office is iii
charge of booking defendants, said he was unaware of the arrangement until Thursday and was
disappointed that it would appear Stevens received special treatment.
Court spokeswoman Jenna Gatski said Stevens made an early appointment with a pretrial services
officer. Though a judge's order called for Stevens to appear for that meeting Thursday, Gatski said
the pretrial office sets its own schedule. Stevens appeared late Wednesday afternoon but within
business hours.
Stevens, a former federal.prosecutor, has said little about the corruption investigation that has
dogged him for more than a year. Thursday's court hearing was likely to be no different. He was
expected to plead not guilty, but-initial court appearances are usually brief!
The indictment is a blow to the senator's re-election bid. Once a seemingly invincible political
figure, he now faces both Democratic and Republican challengers who hope his legal woes make
him vulnerable.
Some GOP colleagues have distanced themselves from Stevens. A spokeswoman for John McCain's
presidential campaign said Wednesday that the indictment was a "sad reminder" that the next
president will have to work to rebuild the public's trust.
Nicolle Wallace said McCain and Stevens famously clashed over the .appropriation process. McCain
regularly says on the presidential campaign trail that appropriations are subject to corruption that
causes voters to lose faith in government.
Stevens has steadfastly maintained his innocence, and his campaign has Rledged that Stevens will
press on with his re-election race. - - -
He would have to ask U.S. District Judge Emmet G. Sullivan for permission to travel. Stevens was
expected to remain free while he campaigns and attends to Senate business, but Sullivan was to
decide what rules the senator must abide by while he awaits trial.
FBI - Stevens-2101
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a ~ n . c o m I Stevens due in cOthis morning
9;',ftJ.\ ..
Stevens, 84, is accused of concealing more than $250,000 in gifts and home remodeling services
he received from Veco Corp., a once powerful contracting firm. Two top Veco executives have
pleaded gUilty to bribing state lawmakers. The executives cooperated with the FBI and provided
information about Stevens.
If convicted, he faces up to five years in prison on each of seven counts.
The indictment stops short, however, of charging Stevens with bribery or other traditional
corruption charges. Despite winning cooperation from the Veco executives and searching the
senator's home, the Justice Department said it could not prove a this-for-that.corruption case.
His indictment is the culmination of an FBI investigation that for years has sent tremors through
Alaska's political system. Several state lawmakers have been charged and others, including
Stevens' son, Ben, remain under scrutiny.
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FBI - Stevens-2102
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Anchorage Daily News
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Supervisor says he erred about Veco labor costs
Anchoorage Daily News
(08/04/0801:25:06)
A former Veco employee backed away from an assertion in an interview published in Sunday's Daily News that
some !abor costs for the 2000 renovation of Sen. Ted Stevens' home in Girdwood were borne by an oil company.
David Anderson, who supervised the project for Veco, an oil field service company implicated in the government's
corruption investigation in Alaska, sai9 he submitted the time slips for the shop electricians who worked on the
Stevens house.
But on Sunday, he said he couldn't be s'ure how Veco accounted for the labor costs on its books.
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 in its shop at the time, 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 the scope of his job, he said Sunday.
Stevens was charged last week in a seven-count indictment with failing to disclose more than $250,000 worth of
gifts from Veco, mostly related to of his residence in Girdwood starting in 2000.
The indictment said Stevens failed to reimburse Veco for labor, materials and furnishings it provided Stevens
from 2000 to 2006.
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Copyright © Men Aug 4 08:31:24 UTC-0800 20081900 The Anchorage Dally News (www.adn.com)
FBI - Stevens-2103

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'Anchorage Daily News
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.Veco men sparked Stevens
By RICHARD MAUER
rmauer@adn.com
(08/03/0802:04: 591
Editor's note: Earlier versions of this story, online and in print, contained three paragraphs reporting' that ex-
Veco employee David Anderson said some of Veco's costs on the. Stevens house were passed along to an oil
company for which Veco was doing work. Anderson on Sunday said he was mistaken about this, and the three
paragraphs were removed from the story. Read a fuller explanation HERJ;. .
The idea to double the size of U.S. Sen. Ted Stevens' home in Girdwood by jacking it up and addin<g a new first
floor was hatched by Veco employees over drinks at the Alyeska Prince Hotel, according to tw'o of the
participants.
.
"This is what I'm thinking' -- I want to, expand Ted's house," then-Veco chairman Bill Allen told two of his trusted
employees, his nephew David Anderson and Robert "Rocky" Williams. "How can we do this?"
The conversation was recalled in interviews last week by Anderso'n and Williams, federal grand jury
who maytestify at Stevens' corruption trial scheduled ne,xt month. They said it took place in a suite at the
Girdwood hotel rented for the night by Allen, probably in the spring of 1999 or 2000, Anderson said.
Anderson said he eventually sURervised start of the 2000 renovation project for Veco and continued to
respond to maintenance requests by Stevens and his wife over the next few years. He said Veco paid for most of
the work and' Stevens should have known it.
Williams said he too had a supervisory role on the project and that he made no effort to conceal his,employment
with Veco when Stevens came around. Anderson described his, recollections in a telephone interview last week
from his home in the Matanuska-SlJsitna Borough. Williams was interviewed at .his home in South Anchorage last
week and in 2007:
Stevens, who has represented Alaska in the Senate since 1968, was indicted Tuesday on seven federal felony
counts of failing to disclose on his annual financial statements more than $250,000 in gifts he allegedly received
from Allen and Veco starting in 2000. The Veco-organized house renovation, SUbsequent repairs and Veco-
supplied furnishings were central to most of the alleged violations.
Stevens says he is innocent and has vowed to fight for acqUittal. On Thuqiday, he asked for a speedy trial and
got it. Ajudge set a date of Sept. 24 in Washington, D.C.
Stevens has declined to answer questions about the ho'use except to once say that he'paid every bill he received.
His wife, Catherine, did not respond to e-mails to her husband's Senate and campaign offices for comment on
this story, and has preViously declined to discuss the Girdwood remodeling.
Bill Allen pleaded guilty in May 2007 to federal conspiracy, bribery and tax charges and agreed to cooperate in a
massive corruption investigation of Alaska politics. For the third time Friday, U:S. District Judge John Sedwick
granted a Justice Department request to continue Allen's sentencing, this time until at least February 2009. The
government's status report on Allen was filed under seal, prosecutors wrote, because "it discusses active criminal
grand jury and similar matters." . FBI - Stevens-2104
'BilL'S HOTSHOTTING'
The interviews with Anderson and Williams provide new details about the allegations in the Stevel1s indictment
from the perspective of two people involved in the construction project. Their stories.c1osely track the allegations
in the government's case, though in several·instances tney spoke'about work' and-furnishings to,the
. . . I Ct<1A:-IJr,.l -(3(80-""'" )"37. <2..-.
Stevenses that were not directly mentioned in the indictment.
Anderson/ a welder by tra2grew up with Bill Allen's son Mark i1Qnai. Bill Allen got his start there in .
the 1'970s/ with Veco getting contracts on the oil platforms in Cook Inlet. When Allen sold Veco last year/ the
company had annual sales of nearly $1 billion and 4/000 employees worldwide.
Anderson spent years working on the North Slope/ then moved to Anchorage in the 1990s when Veco opened a
metal fabrication shop in South Anchorage.
Anderson said Bill Allen began bri'1ging him into his inner circle/ first trusting him with making campaign
contributions that Allen would'iater -- and illegally -- reimburse with cash. Anderson said he built the giant
wheeled barbecue grill later used to roast pigs at fundraisers for Rep. Don Young. The cooker was originally built
for a party Allen planned to host for a Louisiana senator that was canceled/ he said.
"Pretty soon I'm out of the shop -- I'm doing all of Bill's hotshotting," Anderson said.
One of those jobs took him to a chalet on Northland Road in Girdwood -- the official Alaska residence of Ted
Stevens. Anderson wasn't sure of the year, but based on other documented events, it probably was 1999.
"I took a crew out there and we cleaned up," Anderson said. "Like a spring cleaning thing." Anderson had two or
three other Veco employees with him, and they spent four or five days removing downed limbs, taking out brush
and other tasks.
Ted Stevens wasn't there, Anderson recalled, but Stevens' Wife, Catherine, was at the home.
.
"Catherine kind of told us what she wanted done," Anderson said. "She was telling me, 'Let's get that out of
there, and that out of there."
Allen had ordered the cleanup and Catherine knew the crew.was from Veco, Andersl;>n said. she didn't
get a bill -- I kno'w because I was running the paperwork," Anderson said.
Before they were done, he said, Allen showed up.
'GIVE HIM SOME MORE ROOM'
"He was checking on it, and he brought Rocky al1d goes,. 'We need to talk,' " Anderson
said: They drove' over to the ne'arby-Alyeska Prince Hotel _.' now the Hotel Alyeska. Allen got a suite for himself
and rooms for Anderson and Wiliiams, the two ernployees said.
"We all met up there in Bill's stateroom," Anderson said. "Bill busts out the wine."
Allen had a question. "He goes, 'How can we expa.nd Ted's house? I want to give him some more room.' "
Anderson, in the middle of the yard work project, had been having a rough time convincing the neighbors to.
spruce up their own places/ he recalled. He said he told Allen that expanding the Stevens house horizontally
toward the prqperty lines of the quarter-acre lot· would only put it closer to the neighbors -- not necessarily a
good idea. .
"Me and RockY started talking about it -- why don't we just jack the house up? Which is what we
In two interviews last year/ Williams recalled that at the time, there was talk of Stevens stepping down from the
Senate -- especially if he could win approval of oil drilling in the Arctic National Wildlife Refuge, a goal that has
proved elusive.
"Ted had actually wanted to retire a few years ag'o and Catherine never liked the original place," said Williams,
who said he had conversations with both about the house.
THE PLANS
FBI - Stevens-2105
Before any work could begin, Anderson said, a huge tree overhanging the stevens home had to be removed.
-. 0 . 0 .
"I had to go in to Girdwood and I found these rustic-hippy tree cutters to come ou.t there and cut tree down.
That'was a big deal, cutting that tree down so that it didn't fall on the cabin," Anderson said.
The stump was about four feet in diameter; he said. Anderson didn't recall how much it cost to fell the tree and
buck up the logs. '
"It- was fairly spendy -- that was a big tree -- but Veco, not Stevens, paid for it," Anderson said. "Ted had
firewood -- they knew what was going on."
Anderson's next step was to get Veco engineers to design the addition. A Veco employee, John Hess, led the
team, Anderson said. .
"John Hess comes out, meets with me, meets with Rocky, and we started walking around· looking at stuff, kicking
it around -- how in the hell are we gonna this?" .
The initials "JCH" are on the plans filed with the city's building department -- though the themselves
have no reference to Veco, which, according to Anderson and the Stevens indictment, paid for the design work.
When the Daily News interviewed Hess in J.une 2007, he declined to talk about the Stevens project. Asked then
whether he drafted the plans, he said, "That's possible."
The city permits for the remodel were filed in July 2000 by Robert Persons, the Double Musky restaurateur and a
longtime friend of the Stevenses. Persons monitored the progress of the project when neither Ted nor Catherine
was around, Anderson and others said, and he is referenced in the Stevens indictment, though only as "Person
A."
-Persons didh't return several messages lefton his phone and in person at the Double Musky over the last two
weeks. In a brief interview in March, Persons said he doesn't doubt that Stevens believes hOe p-aid everything he
owed on the house. That's the way Stevens conducted business in a racehorse partnership managed by Persons,
he said: Whenever the partners were required to invest more cash, Persons said, Stevens.insisted on being the
first to put in.
"This shouldn't be happening," Persons said. "He's very strict about that sort of thing."
'A SAD PORTION OF MY LIFE'
Going through the Yellow Pag'es, Anderson found a house mover in Anchorage, Toney Hannah, to lift the house.
In an interview last year, Hannah said he first met with Ted and Catherine Stevens about the project in 1999, but
the work took place in the fall of 2000.
Once Hannah jacked up the house, Anderson said, "it was '!le, Rocky and Bob Persons, and we were putting in
floor joists." Allen dealt· with Stevens, he said. "I'm just the supervisor."
FBI - Stevens-2106
Hannah said in the interview last year that he sent a bil! to Stevens. Catherine paid by check, he said. He couldn't
recall how much and couldn't look up the figure, he said, because the FBI had his files.
Vecohired Christensen Builders for the carpentry work, owner Augie Paone told the Daily News·last year. Paone
said he sent his invoices first to Veco, then faxed them to Stevens, who paid by check. -He thought Stevens paid --
him at least $100,000 over the course of the project.
Paone's wife, Ruth, an officer of the company, said two weeks ago that neither she nor her: husband would
comment about the case now.
Stevens toRI reporters last year that he paid every invoice he received on the remodel.
.
"As apracticaLmatter,J will tell you. We palg every bill given to US,II Stevens tola reporters last July.
---------
FBI - Stevens-2107
"Every bill that was sent to us has been paid, personally,- with our own money, and that's all there.is to it. It's our
own 0 . 0
In a handwritten note sent last summeno Wev Shea, the former U.S. Attorney for Alaska, Stevens said he paid
$130,000.
"This is a sad portion of my life -- it will take time to explain," Stevens said in the two-page note, which was
seized by the FBI after Shea told a Seattle Times reporter about it. "Catherine and I personally paid over
$130,000 for the improvements to our chalet in Girdwood. Someone -- or more than one -- keeps telling the FBI
that's not so.. Takes time to go back over five years to prove they are wrong."
In the indictment, prosecutors accused Stevens of misleading friends and staff about the Girdwood project, but it
doesn't say whether his note to Shea will be used as evidence of that allegation.
But the indictment appears to back up Paone's statements. It says invoices from "Company A," an apparent
reference to Christensen Builders, were sent to Stevens and paid by the senator by personal
Those invoices, however, "did not include the labor costs of Veco employees and contractors and did not include
the costs of materials provided by Veco," the indictment says. Veco employees "installed electrical, plumbing,
framing, heating and flooring materials in the Girdwood Residence," as well as buying and installing fixtures and
appliances, the indictment says. Between the summer of 2000 and Dec. 31, 2001, those costs totaled more than
$200,000, the indictment says. . -
The electricians on the job were Veco employees, and the plumber, Mark Tyree, was a private contractor hired by
Veco, Ander?on said.
Veco absorbed the costs of material and Tyree's services, Anderson said.
A VECO JACKET
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
drivey/ay and set it in place in the back. -
It was another gift that Stevens got for free, said. "I know, because I ran the paperwork -- I did all the
purchase orders." -
The generator is not mentioned in the indictment.
Anderson said he himself did some of the steelwork -- manufacturing a metal staircase-for inside the
home in the Veco shop, and making the external pillars that held up the second deck. Williams corroborated that
account.
"He's a welder, he knows how to design. He knew everybody at the fab shop," Williams said of Anderson.
Before the project was completed, Anderson had to leave for Oregon to attend to family matters after the death
of an aunt -- Bill Allen's sister. Williams stayed on the project.
Stevens himself inspected the work about three fimes that fall, Williams said. There was 1)0 secret about Veco's
involvement. . . .
.
"I wore a Veco jacket the whole Williams said. "This WqS n6 big covert deal."
According to the indictment, Stevens thanked Allen multiple times for work 9n the Girdwood house, starting with
the initial remodel. In 2000, the indictment says, Stevens sent Allen an e-mail praising a Veco employee whose
name was redacted from the indictment .
!'(W)e've never worked 9 m.ClI1 s9 easy to get along-wlth.as [name of a VECO emploY.4?e], PI.us, .4?veryone
who's seen the place wants to know who has done the things rye'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."
. " <:).
Williams said Catherine Stevens wanted to put her touch on the place, she and Stevens had bought as a
12-year-old 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 because I don't think he planned to be in politics at this point in time."
FALLING OUT WITH ALLEN
Anderson returned to Anchorage and resumed work on the home the following spring, he said, building the
ground-floor deck. The Viking grill, cited in the indictment as another gift from Allen to Stevens, was lifted onto
the upper deck and permanently plumbed to a gas line with solid pipe, Anderson said. Like the generator, it was
so heavy it took a crane to install.
"I knew them," Anderson said of Ted and Catherine Stevens. "Usually Catherine would c9me by. Ted didn't come
by that much," Anderson said. One day, there was a plumbing problem under the kitchen sink -- Anderson called
it a "blowout," using a term from the oil patch.
"Catherine called me and said, 'My we've got to get this stopped.' I haq to drive out to Girdwood and fix it."
Anderson didn't remember the date, but said it was shortly after the renovation was completed.
Anderson and Allen had a serious falling-out sometime after Anderson said that when he began dating one
of Allen's girlfriends, Allen became enraged and Anderson lost his Veco job. In one of the corruption trials last
year, the lawyer for former House Speaker Pete Kott attempted. to discredit Allen by asking him if he had ever
threatened to kill Anderson. Allen said he hadn't. Allen said Anderson w?s blackmailing him, but didn't elaborate.
Anderson denied bla,ckmailing Allen.
When Anderson moved to aremote part of the Mat-Su Borough and adopted a low-key Alaska lifestyle, he
thought he was done with Allen, he'said. ' . -
Then one day a sedan appeared at his place. Inside were U.S. Treasury Department agents, he said. He'got a
. phone call from someone else -. an FBI agent who couldn't find 'the place. The agent was directed to the house.
was Aug. 31, 2006 -- the dC!y teams of federal agents swarmed legislative offices in Anchorage, Juneau arid
'Wasilla: 'executingsearch warrants a'nd giving'thefil"st· public sigh that' a m'as'sive"hlvestigatioh Was unoel" way.
Agents had questioned Allen for the first day before.
Anderson said the agents wanted to talk to him as a key witness. He said he them he -had nothing to hide
and has 'been cooperating ever since.
Find Richard Mauer online at or call 257-4345.
FBI - Stevens-21GB
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Ex-Veco worker says t,e was mistaken about BP billing
Anch9rage Daily News
(08/Q3/08 19:04:21)
A former Veco employee backed away from an assertjon in an interview published in'Sunday's Daily News that
some labor costs for the 2000 renovation of Sen. Ted Stevens' home in Girdwood were borne by an oil company.
David Anderson, who supervised the p"roject for Veco, an oil field service company implicated in the government's
corruption investigation in Alaska, said he submitted the time slips for the shop electricians who worked on the
Stevens house. But on Sunday, he said he couldn't be sure how. Veco accounted for the labor costs on its books.
Last week, Anderson said some of the faDor 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 charged last week in a seven count indictment with failing to disclose more than $250,000 worth of
gifts from Veco, most it related to renovations of his residence in Girdwood starting in 2000. The indictment said
Stevens failed to reimburse Veco for labor, materials and furnishings it provided Stevens -frol}l 2000 to 2006.
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Veco hid constructi9n expenses .
STEVENS TRIAL: Bookkeeper says Allen wanted no paper trail.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(09/27/08 05: 12:28) ,
WASHINGTON -- Even as Veco Corp. was paying the bills for renovations on Sen'. Ted Stevens' home in
Girdwood, the services company was concealing its activities in its own internal records, the corporate
bookkeeper testified Friday. .
Veco accounts manager Cheryl Boomershine testified that when she asked a c;o-worker to obtain the "who, when,
where and why" for a $2,000 expense claim for materials from construction foreman Rocky Williams, she got
back a note with 'orders that there should be no written records. .
"No who, per'Bill,"said the note, referring to Veco chairman Bill Allen. The "when" was August 2000 and the
was Girdwood, there would be no "why," wrote the. co-worker. @ .
"No paper trail per Bill' Allen per Rocky," she said.
Anyone examining the Veco books might have thought that the company was spending tens of thousands of
dollars' on business consultants, ·not Stevens. Testifying on the second, day of Stevens' trial for failing to disclose
more than $250,000 in gifts fr9m Veco, said she an account'for the project called '
'''Girdwood Consultants." ' '- ,
One of the "consuitants," she testified, was a plumber named Mark Tyree.
And Boomershine said there's no record that Stevens or his wife ever reimbursed the company for any
construction costs for projects that began in 1999 with a back-up generator that cost $6,300 plus labor.
. ,
Boomershine' now works for-CH2M Hill, which'bought Veco'last year and-has been cooperating with'the'
government. Boomershine said that at the FBI's request, she searched through all the backup copies of Veco '
deposits to its bank accounts; she testified she found only two checks from Stevens.
Both payments were for reimbursements for flights originally paid for by Veco. 'One check was dated Aug. 8,
2003, for,$420.28, for a round trip'betweem Anchorage and Kenai.
The other was dated Aug. 31, 2005, for'$l,710,41 for a flight from Phoenix to Roswell Hobbs, N.M. Allen's
son Mark raises racehorses in Roswell, and there's a track at
WORKERS TESTIFY
"
FBI - Stevens-2110 .
Other tradesmen who renovated Stevens' home in Alaska in 2000 testified Friday about their work, as
prosecutors began building a case that the Alaska Republican.never paid Veco for ele.ctrical and carpentry work
'on the-so"'caII ed - - -- -- -- '- -
Allen, who has already pleaded guilty to bribing state lawmakers in Alaska, was announced as the government's
sole witness Monday.
Allen's testimony and secret recordings of conversations between him and Stevens are expected to be the
strongest evidence in the go\,ernment case against The trial, wl1ich had been. expected to take four
weeks, is moving so fast that prosecutors might finish their case in eight days. They sped through so many
witnesses that they had to scramble to schedule people to testify next week. . -8'3 8"
, " -
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Seven witnesses, mostly from have testified so far. The case was moving at such an unexpectedly brisk
clip that prosecutors ran out of witnesses Friday, drawing the ire. of U.S. District Court Judge Emmet Sullivan.
Many times a day since before the trial even started, Sullivan has pressed his point that jurors deserve utmost
respect, and one way to honor them, he has frequently said, is to ensure they have as little waiting time as
possible.
Sullivan was incredulous when. the lead prosecutor, Brenda Morris, told him that more witnesses were flying in
from Alaska on Sunday. -The normally soft-spoken jUdge thundered back: Why were they not here already?
"I'm not going to tolerate it," he said, and threatened to decree that the government's case had concluded since
there were no more witnesses available.
After a 10-minute recess for the government to come up with a revised list witnesses for Monday, Sullivan had
calmed when he re-entered the courtroom. The government Allen's name and nine alternates.
Prosecutors also said they wrap up their case a week from Monday -- the eighth day of trial.. They initially
had predicted their case would take three weeks.
HOW THE WORK WENT
Earlier Friday, a series of electricians and carpenters described in detail how they jacked up Stevens' Girdwood
home and installed a first story, and redid electrical wiring.
Some Veco employees spent months at the Stevens home, according to testimony.
One y..ras Roy of Littleton, Colo. Beginning in October 2000, Dettmer spel1t four months working six days
a week, 10 hours a day, installing electric service in the new sections of the house and rewiring much of the old.
Every morning, he testified, he'd drive to the Port of Anchorage, where he was assigned to work,. sign in using his
badge, then drive 4S miles to Girdwood. In the evening, he would have to "badge out" again back at the port
before he could return to the hotel where he lived when he was in Alaska. Dettmer's pay at Veco at the time was
between $27 and $29 an hour,. plus overtime, he said. Working a schedule of six weeks on, two off, Dettmer
figured he spent about 400 hours on the project.
Assistant U.S. Attorney Joe Bottini of Anchorage walked Dettmer through his tasks. The service entrance had
been at the rear of the original house, but that was n"ow IS,feet in the air. Dettmer moved it to the other side of
the' house in the new garage Veco built, requiring all the old circuits to·be extended. That doubled the electrical
capacity from 100 amps to 200 amps. That meant the generator that had been installed by Veco only the y.ear
before had to be rewired and moved as well.
Veco bought the material from an Anchorage supplier, Dettmer said. The new kitchen built by Veco,on the second
floor also had to be wired. .
Dettmer said he never met Stevens, but Catherine Stevens, the senator's Wife, came around once. Williams, the
Veco superVisor, introduced him.
FBI - Stevens-2111
"We said 'Hi,' and that was it," Dettmer said.
.
Catherine Stevens stopped by once to bring workers muffins, said another contra.ctor, Mike Luther, a carpenter
with Christensen Builders of Anchorage. He also saw Sen. Steven? once.
"He was a friendly kind of guy -- he was talking to everyone," Luther said
On his way out of the courtroom Friday, Luther waved to Stevens as he walked past the senator at the defense
table.' '.
i-Both sides have triecrto educate the"jury aoout Alaska through"the iNitnesses, describe the North
--' ---'--... - - - .
River, Girdwood a{)he like.'
.
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But recent events outside the courtroom have also contributed familiarization, as was obvious when the first.
witness took stand Friday. When Veco electrician Douglas AI.ke gave his hometown as "Wasillai" a murmur of
recognition rustled from the jury box to the spectator section. '
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Stevens: Government is hiding evidence
By ERIKA BOLSTAD
ebolstad@mcclatchydc.com
(09/29/0808:12:57)
WAStlINGTON - Sen. Ted Stevens is accusing prosecutors of hiding evidellce from a potentia.! witness that would
help the Alaska Republican clear his name before the election, and asked ajudge to declare a mistrial in his
corruption case.
There's no basis for a mistrial, said District Court Judge Emmet Sullivan. But he was not happy with prosecutors
and how they had handled the matter. Sullivan scolded one of ttie prosecutors, Nick Marsh, from the bench this
morning, telling him "someone's treading some very shallow water here."
"I'm flabbergasted," Sul,livan said.
The senator's lawyers, who asked for a speedy trial so that jurors could reach a verdict before Alaska voters go to
the polls Nov. 4, made their accusations in a motion filed at 11:58 p.m. Sunday. Stevens faces seven felony
counts of failing to report on his U.S. Senate disclosure forms more than $250,000 worth of gifts and home
renovations, chiefly from Veco Corp. and its chief officer, Bill Allen.
Stevens' lawyers say that prosecutors declined to tell them everything they knew about a Veco worker named
Rocky Williams, who oversaw renovations at the Stevens home in 2001. Evidence will show that Williams worked
far less on the home than other company employees have suggested in their testimony, Stevens' lawyers said,
including one of the,c'ompany's bookkeepe'rs who took the stand Friday.
Williams was originally set to be a government witness, but prosecutors decided in the opening days of the trial
not to use him. They discussed the reasons why with the judge privately, in a bench conference, but did not say
why in open court. They did allude to Williams being "two weeks overdue" for sometliing in Alaska. And in court
filings, Stevens' attorneys refer to health issues that. include "coughing episodes." .
That will help them knock holes in the government's theory that the Veco work done on Stevens' home was so
extensive that he must have known he was getting freebies above and beyond the $160,000 his lawyers said he
paid a separate contractor for the work. -
Stevens!,attorneys did speak to Williams over the weekend, after they learned that he wouldn't be a government
witness.
"We got lucky," said one of Stevens' lawyers, Cary. "w.e got his lucky that he changed his prior of
not wanting to talk to us." FBI - Stevens-2113
In court filings, Cary said that "Mr. Williams informed defense counsel that he spent nowhere near 8 hours per
day, 6-7 days per week, on the Girdwood home renovation project - in direct contrast to the timesheets that the
gQvernment has placed in evidence to support-its central-theory-that the-unpaid cost of the project--to-Veco was
$188,000."
The judge" offered Stevens' lawyers a chance to re-question Cheryl Boomershine, the Veco bookkeeper who
testified Friday about how much money the company spent renovating the home in Girdwood. Boomershine was
still in Washington D.C.-Monday morning and is expected to return to the courtroom today. Now, the defense
team will be able to ask her questions that might help bolster their case. - (f.31
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Allen won't testify in disclosure trial today
WITNESS LIST REVISED: Former Veto boss might be pushed back until Tuesday.
By RICHARD MAUER
rmauer@adn.com
(09/29/0800:52:16)
WASHINGTON, D.C. -- Bill Allen won't be testifying today after all in Sen. Ted Stevens' disclosure trial.
On Friday, the government ran out of witnesses because the trial had been running faster than expected.
After being scolded by the judge for keeping the jury waiting, prosecutors announced that Allen, its chief witness
and the former chief executive of Veco Corp., would open the day Monday. Allen was in town, and his lawyer,
Bob Bundy of Anchorage, had been a regular in the back of the courtroom -- even for pretrial
before the case opened on Thursday.
But Allen's scheduled testimony was also marked with controversy and possible delay -- the scope of cross
examination remains undecided. Prosecutors are seeking to limit the kinds of questions that Stevens' attorneys
can ask Allen in an effort to impeach him. In particular, they want to prevent questions about Bambi Tyree, who,
as a 14- or 15-year-old, told friends she had sex Allen. She is now 27 and is listed 'as a potential defense -
witness.
The, defense says Stevens' right to confront the witnesses against him includes exploring Allen believed
he wouldn't be prosecuted over Tyree if he agreed to plead guilty to federal public corruption charges and testify
against Stevens and others.
On Saturday, the government revised its witness list for today, putting Allen back at least until Tuesday and
probably later. He's replaced with a list of 14 other witnesses, including Courtney Boone, Stevens' former
spokeswoman, and several former Veco employees.
Tyree's father's name has come up several times in the trial already, but in a different context. Mark Tyree, who
died in 2005, was the Wasilla plumber hired by Veco to install the pipes, fixtures and heating in the renovations it
provided for Stevens on his Girdwood home. Earlierthis year, the Daily News reported that over the years, Allen
provided-gifts, including cars, for Bampi Tyree and her family.
Anchorage police h,ave an open investigation of Allen for sexual abuse of a minor involving Tyree and at least one
other woman.
'In a motion filed Friday, the government sought to limit the questions of Allen and two other government
witnesses, Allen's nephew, David Anderson, and his go-to problem solver, Rocky Williams, who worked as the
foreman at Stevens' house. Both Anderson and Williams "are rumored to engage in excessive alcohol
consumptic.>n," the government acknowledged. FBI - Stevens-2114
Prosecutors asked the judge to "limit questioning of these witnesses when the cross examination strategy behind
the questioning will serve no purpose other than to impair the search for the truth; harass,_annoy, Or humiliate
the witness; improperly inflame the jury; and unfairly prejudice the government's case against defendant."
Stevens' attorneys said that. the Allen investigations have already been publicly reported.
"The defense has no desire to any government Witness," it wrote. "The Sixth Amendment, however,
ensures that a criminal defendant will be entitled to'explore his accusers' credibility and any motivation to lie."
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Prosecutors defend sending witness home to Alaska
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Dai!y News
(09/30/0811:50:20)
WASHINGTON - Prosecutors shed more light Tuesday morning on why they chose to send home Robert
Williams and not use him as a witness in Sen. Ted Stevens' corruption trial.
The head of the Justice Department's Public Integrity section said in acourt filing that it was his decision to send
Williams home to Alaska because he and. others in their office had serious concerns about his health. Williams,
who oversaw renovations at Stevens' home in Glrdwood'for Veco Corp., was scheduled to testify in Stevens' trial
prosecutors sent him home the day the. trial opened. .
Monday, prosecutors drew the ire of U.S. District Judge Emmet Sullivan, who threatened sanctions and asked for
a full explanation of what had happe'ned. Sullivan. said he was "flabbergasted" that the government team sent
Williams h9me without telling him or the defense. - , (§)
Stevens' team seized on the situation, calling for a mistrial and accusing 'prosecutors of Withholding potential
testimony from Williams that could help Stevens. They especially interested in potential evigence that
Williams worked far less on.the home than other company -have in ,their testimony,
including of the Who too!< the week.
Such evidence could help Stevens knock holes in the government's theory that the Veco work done on his home
was so extensive that he must have kn<;>wn he was getting benefits above and beyond the $160,000 his lawyers
said he paid a separate contractor for the work done to double his home'in size.
Prosecutors said that when Williams met with government lawyers to prepare for his testimony, it was apparent
he had "serious, health-related issues that warranted medical attention." BetweeQ his Nov. 7, 2006, grand jury
testimony and-the present, Willia-ms-h'cfd'become prosecutors wrote -in their-filings. --
• -4 • • 1 -
"Mr. Williams had lost a substantial amount of weight, his abdomen' was distended (and had been preViously
drained of excess fluid), he appeared jaundiced, his face was gaunt, he had s'ubstantially, aged, he had· chronic
coughing 'spells, and he was Jrequently short of breath.". .
He was so sick that William Welch, the head of the Justice Department's public integrity section, said he could
hear Williams "wheezing and coughing" in the corridor in the Justice Department long before he walked past his
office. FBI - Stevens-2115
There was no nefarious intent in sending him home to Alaska, Welch said, and accused the Stevens defense team
'of "win-at-all-cost" tactics.
"At no time did the government intend to engage in any type of. deception," he wrote.
The dispute over Williams dominated the proceedings Monday, although jurors never saw any of the discussions.
_____e-_
'. --- ---"'-----
Allen,. the-star witness, just took the stand this afternoon.
The Republican senator- faces seven felony counts of failing to report on his Senate disclosure forms more than
$250,000 worth of gifts and home renovations, chiefly from Veco and its chief executive Bill Allen.
Stevens, who is up for re-election Nov. 4, asked for a speedy trial so he'd have the opportunity to clear his'name
before Election Day.
took the starnuesday morning, including Stevens'(:\ner press secretary, Courtney
Boone, who testified about had received from a reporter abeWwork done on the Stevens home. The
reporter, Heather Resz, had called to ask about a tip she'd received alleging that had built a deck on
Stevens' home without paying for it.
Boone said that when she asked the senator about it, his response was "the same as mine. 'What?' Shock," she
said. "He said I'd have to talk to Mrs. Stevens about it because she handled the work that was done at the house.
Boone testified she was told by Stevens' wife, Catherine Stevens, that the work was done by Christensen
Builders. That contradicts evidence from a carpenter who told the jury yesterday that he was paid more than
$4,000 by Veco to build the lower deck.
Resz, who worked for a now-shuttered weekly paper owned by Alaska Newspapers Inc., read jurors the
statement she received from Boone. In it, Boone told Resz that Stevens' wife had taken out a line of credit to pay
for the addition, and that the "modernization of their chalet included work on their deck."
Res! said she thought she had run into a dead end and didn't pursue the story.
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Allen testifies in Stevens trial
By Richard Mauer and Erika Bolstad
Anchorage Daily News
(09/30/08 14:48:21)
WASHINGTON -- The self-made Alaska construction executive whose testimony could bring to an end the 40-year
U.S. Senate career of Ted Stevens took the stand today in the corruption case against his fqrmer fishing buddy
and friend.
Bill Allen, the founder of Veco Inc. and the star witness in Stevens' trial; spoke fondly and with admiration of the
84-year-old Republican senator from Alaska. ' •
"We kind of really liked each other," Allen said this afternoon as prosecutors introduced a photo of the two men
catching a king salmon. "Had the same thoughts. Ted really worked hard. Ted loved Alaska and I loved Alaska."
- . .
But Allen also began highlighting a pattern of gift-giving that is at -the heart of the government case. against the
senator. Stevens, the longest-serving Republican in the'Senate, is accused of failing to report on his annual
financiClI disclosure forms more than $250,000 worth of gifts and home renovations, chiefly froni Veco and Allen.
ProseciJtor Joe Bottini, an assistant U.S. attorney from Anchorag'e, asked Allen Stevens ever paid him
!?ack'for the estjmated $5,OOO_to.$6,OOO cost of the backup generator the senator asked 'Allen tOJinstalrin 1999,
in advance of the Y2K sc;are. '
"No,'1 Allen said.
"To your knowledge, did, he ever pay Veco back for the generator?"
"I don't know" Allen said. "I don't think.so."
. -- -- ,. -- , -
Allen, 71, is akey figure in the case against Stevens., He and former Veco vice president Rick Smith pleaded
guilty in May 2007 to bribing state lawmakers as part of an effort to push through the Legislature an oil
production tax fav,orable to North Slope oil producers. Both are cooperating with the government; neither has
been sentenced.
In the three-and-a-half days of testimony leading up to Allen's turn at the stand, jurors have heard from ·former
Veco employees and others who described under'oath _work they did on Stevens' home. Prosec4tors say_ Stevens
never paid for $188,000 worth of renovations paid for by Veco, in_c1uding-a deck, an exterior'staircase and .
extensive electrical work. FBI - Stevens-2117
Allen, who will continue his tomorrow, began by telling jurors the story of his hardscrabble origins ahd-
how he worked his way from teenage welder in New Mexico to wealthy owner of one of Alaska's biggest private
employers. Veco was sold last year to Colorado construction firm CH2M HiII.for.$380-million. - - -- - - -
- _.- - - - - - -
He also to jurors that his halting speech is the result of a brain injury from a 2001 motorcycle accident.
He testified he has nq memory problems but sometimes has difficulty speaking the words he is thinking.
- .'
Allen described meeting Stevens.for first time in the early 1980s at fLindraisers and events for Republican
Frank Murkowski, who was running for.the U.S. Senate and went on to a teqn as Alaska governor. Allen spoke
wistfully of their former "close, personal friendship" and how they used to go to "boot camp" in the desert
Southwest --where they would walk around; eating little and drinking only wine, "trying to get some pounds off."
- _ __
..-._-...".- - ------------- - - - - - .-. -
Stevens lookOown at the tC!.9Ie, writing. It didn't Qar the. two former friends ever made
eye C!ontact. _'
-,
Allen also described a complicated 1999 transactiofl involving a new Land Rover he gave to Ste'(ens' in exchange
>for $5,000 and a 1964-and-a-half Ford Mustang. Stevens wanted to sell the Mustang and buy his daughter Lily a
car, Allen said. He offered to give Stevens a $44,000 Land Rover Discovery that'he had bought for one of his
grandsons but decided not to him because he was unhappy with him. .
Stevens estimated the Mustang was worth $25,000. Allen thought it was worth less, $15,000 to $20,000. When
asked whether he thought he had gotten a good trade, he. said, "Not at that time, no."
Bottini then asked why he entered the agreement.
"Because I liked Ted," Allen said. -
Allen's courtroom testimony and secret recordings he made of conversations with lawmakers and lobbyists were
key to the Justice Department's seven previous successful convictions in a wide-ranging federal probe into
corruption in Alaska po)itics. -
The Justice Department convictions include those of three former Alaska state representatives, all on bribery
charges: Tom Anderson, Pete Kott and Vic Kohring. One·other state representative, Bruce Weyhrauch, is awaiting
trial, as is current state Sen. John Cowdery.
In the same investigation, Jim Clark, onetime chief of staff to former Alaska Gov. Frank Murkowski, pleaded
guilty in March to one count of conspiracy and agreed to cooperate with the federal investigation. Former
Anchorage lobbyist Bill Bobrick, who also cooperated with prosecutors, pleaded guilty in May 2007 to a single
conspiracy count.
If asked during testimony, Allen will not be allowed to-specifically name one of the state lawmakers he pleaded,
guilty to bribing: former Senate President Ben Stevens, Ted Stevens' son.
In public documents connected to Allen's own case, Ben Stevens is referred to as "State Senator B."
Allen himself named.Stevens specificaliy in testimonyIn the trials'last year of two Alaska legislators but h,as been
instructed by government lawyers not to call "State Senator B" by .name-during the proceedi.ngs. Ben Stevens has
not been charged with any wrongdoing.
Ted S,tevens, who is up for re-election Nov. 4 and faces a spirited Democratic opponent, Anchorage Mayor Mark
Begich, asked for a speedy trial so he'd have the opportunity-to clear his name before Election Day.
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Six others testify for prosecution
STATEMENT: Serious health concern cited as reason witness was sent home.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(10/01/0801:07:02)
WASHINGTON -- Prosecutors flatly rejected the claims ofSen. Ted Stevens' attorneys that government witness
Rocky Williams was sent home to Anchorage to prevent him from helping the defense. .
In a sworn statement demanded by the judge in Stevens' trial, the head of the Justice Department's Public
Integrity section said it was his decision to send Williams home because he and others in their office had sertous.
concerns about his health:
Wiiliams, who oversaw renovations at Stevens' home in Girdwood fQr VecpCorp. from 2000-2001, was scheduled
to testify for the'government in Stevens' trial but prosecutors sent him home the day the trial opened. Ci)
Monday, prosecutors drew the ire of U.S. District Judge Emmet Sullivan, who threatened sanctions and asked for
a full explanation of what had happened. Sullivan saicfhe was that the government team sent
Williams home without telling him or the defense.' - ,
Stevens' team seized on the situation,-calling for a mistrial and accusing prosecutors of withholding potential
testimony from Williams that cquld. heJp Steven?. They were especially interested in potential evidence that
Williams worke-d far less on the home than the hours recorded'in a report by the company'.s bookkeeper, who
testified earlier.
But Welch said that Williams actually made himself available to the defense when he:arrived in Washingto,n,
about Sept. 15. Williams said he called the firm and left his hotel and cell phone numbers, Welch said. They
called back, he said.
The government saidit-had-planned to call Williams-among the first-of.its·witnesses. But when Williams mej:.with
government lawyers to prepare for his testimony, it was apparent he had "serious, health-relate-d is'sues that
warranted medical attention." Between his Nov. 7, 2006, grand jury testimony and the present, Williams had
become "almost unrecognizable," prosecutors wrote in their filings.
"Mr. Williams had lost a substantial amount of weight, his abdomen was dis'tended (and had been previously
drained of excess flUid), he appeared jaundiced, his face was gaunt, he had substantially aged, he had chronic
spells, and he was frequently short of breath," . . .
, .
The, dispute over Williams dominated the' proceedings Monday, although jurors never heard any oF'the
discussions. By Tuesday, though, the Williams matter seemed all but forgotten, aside from the filing of motions
and affidavits. • . FBI - Stevens-2U9
The government breezed through six witnesses on its way to its main Witness, former Veco chairman 'BiJI Allen.
Each of.the-six connected. to-unreported.gifts to. Stevens. or .his. allegecf .tQc;over up.
The Republican senator faces seven felony counts of failing to report on his Senate disclosure forms more than
. $250,000 worth of g-ifts and home chiefly from Veco and Allen.
Among the was a reporter from Wasilla who had a tip that Veco had provided free construction services
for Allen and the Stevens press aide who successfully fended off the questions.
Heather Resz, then editor 'of the Anchorage ChroniCle, a "Veekly owned by Alaska Newspapers Inc., testified she
got'a 2003,.but wasunable,t6 cOnfirl'D,it tl)roughp.!JPUc .or
43 I tfLf4- -A.,J .... 13>670 -.,i/\ -,e.
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v
She worked on the story, on and off, until 2004. About to give up, she called Courtney Boone, then press
secretary for Stevens in Washington, she testified.
"Her initial reaction was that she assured me that the senator was an ethical man," Resz said. But there was one
unusual aspeCt to that call. While Boone normally answered questions off the top of her head, in this case, she
said she'd get back. It took two days.
Boone testified that when she got the call, she was "shocked" by the allegation. "I think I said, 'What, are you
kidding? Seriously, are you kidding?' "
Boone demanded to know Resz's source and said she might not come back'with any information at all unless
Resz gave up the name. Resz refused. '
Still, Boone knew the problem could be serious, she said. First she told Stevens' chief of staff, then went to
Stevens directly. He too expressed shock,-she said.
But then he told Boone to get in touch with his Wife, whom he said had managed the household finances on the
remodel. She also testified that Stevens' friend Bob Persons, the owner of the Double Musky in Girdwood who
looked after the project for the Stevenses, called her about the
According to an e-mail account of that conversation Boone sent to Stevens, Persons told her the only thing Veco
provided was some used pipe for the deck. The rest of the work was handled by Christensen Builders, Boone.
wrote.
Boone also told Stevens that another aide in his office had spoken with Allen about the call from Resz. Allen said
L he knew who her source was: "he is (,l disgruntled foreman who was fired a couple of years ago," Boone wrote.
Four days of testimony in the Stevens case so far shows that Persofls knew Veco provided far more than used
steel. He has yet to testify, though. The Stevenses paid Christensen about $130,000 for his work, but that was
less than half the cost of the entire project, according to the testimony. The rest was picked by Veco.
'Even though she knew that Veco provided something, the approved statement Boone prepared for Resz made no
mention of the company, lijhifh the project and provided the architect, electricians, the plumber and
carpenters, along with tens of thousands of dollars in material.
"It would've stirred up more questions," Boone testified. "This was a story I would've wanted to put a stop to."
The statement, as Resz read it to the jury, asserted that a general contractor -- presumably Christensen --
"hanaled all the subcontracting and supply work for the project."
Boone had succeeded. Resz never published a story.
"I closed the file and threw up my hands," Resz testified. "It's another dead end."
FBI - Stevens-2120
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Anchorage Daily News
Allen: Veco did work, didn't bill Stevens
By ERIKA BOLSTAD and RICHARD MAu"ER
Anchorage Daily News
(10/01/0808:30:51)
o
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WASHINGTON _ Taking the stand for the second day, the former chief executive of the Alaska oil
company that renovated Sen. Ted Stevens' home continued to testify about gifts and help with renovations he
had given his longtime friend over the years. . .
Former Veco Corp. CEO Bill Allen, the star witness in the case against Stevens, was asked time and time again:
Did Stevens paid·for any of the work done by Veco? Did Stevens pay for the_eleCtrical work, the' plumbing? Did he
to move the generator? Did he pay for the lower level deck? How about the electrical tape system that
itJelted ice off the roof? .
"Who did that work?" asked prosecutor Joe Bottini.
"Veco electricians," Allen said.,
"Who paid for the materials?" Bottini asked.
"Veco;" Allen said.
Bottini asked whether Stevens ever sought a bill for the work that had been done in 2002. Allen hesitated for a
few moments.
"I don't think so," he said slowly.
'Stevens, -faces seven felony- counts of-making false statements on -his financial-disclosure forms. The Alaska-
Republican is'-accused of hiding more than $250,000 of gifts from Allen and-others, home improvements
that helped double, his home in size.
Bottini asked Allen to read portions of a note Stevens sent him iii October 2002, thanking Allen -for his work on
"the chalet." In the note, Stevens told him not to be "P.O.'d," but said that he needed to have a conversation
with one ofStevens' neighbors in Bob Persons, a close friend of both who_helped oversee the
renovation of the senator's home: .
"You owe me a bill," the. letter from Stevens said: "Remember Torricelli, my friend. Friendship is one thing,
compliance with the ethics rules entirely different." FBI - Stevens-2121
Allen said he was unaware at the time what Stevens meant by "Torricelli." But Stevens was apparently referring
to former Sen. Robert Torricelli, D-N.J., who in 2002 was investigated by .the Justice Department for
- improper-gifts from a.donor. The-investigation-dosed, but the Senate Ethics-Committee-reviewed the
investigative files and issued a public letter of admonishment to Torricelli, who then abandoned a re-election bid
and left the Senate.
Allen said he didn't send Stevens a bill or invoice after the note, but as promised in the letter, he did have a
conversation with Persons. Allen. testified that Persons told him, "Don't worry about getting a bill, Ted's just
covering his ass."
TlJen, realizing the language, might not be appropriate for cOl:lrtroom, said "Maybe I shouldn't say-that."
g/.f4

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WASHINGTON •• After spending nearly $200,000 of his
company's money-improving the Girdwood home of.Sen. Ted
Sti=vens, Veco chief executive Bil! Allen received a note from
the senator asking for a bill.
"Don:t worry about getting a bill -- Ted's just covering his ass,"
Allen quoted Persons as saying. Then, briefly injecting a
-- --moment of fevity into an-otherWise tense morning, -Allen
turned to the jUry al)d said, "Maybe I shouldn't have said 'ass.'
" The jurors c,racked up laughing.
Advanced se
Sell it tcd;
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l. Exhibits from 10/20
More Sen. Ted Stevens stori.es »
enlarge
Government Exhibit 172, a September 2000 e-
mail (rom Sen. Stevens to Bill Allen, was
introduced Oct. 1, 2008.
Document exhibits .
l,.etters,lega! Qocuments,

Related Links
PDF: E-mail from Stevens to Allen about
home improvements
Photos: Historical photos of Sen. Ted
Stevens FBI - Stevens-2122
Photos: Sen. Ted Stevens gallery
Complete Alaska coverage
Alaska Politics blog
-The Ted Stevens investigation
, Photos: Exhibits submitted as evidence
"I asked Bob Pto talk to you' about
this so don't get P.O.'d at him -- it
just has to be done right," said-the

a,s.a
Wednesday in Stevens' felony
disclosure trial.
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Sure enough, said Allen, on the
witness stand for the second day,
Bob Persons did talk to him. But
Persons, a good friend of both men and the owner of the
Double Musky restaurant in Girdwood, explained that the note
wasn't to be taken -- it's a wink and a nod, not a
demand. to do the right thing.
Stevens' offer to pay was
ignored
FRIEND'S TESTIMONY: Allen says he took
senator's request for a·bill for Veco's work as
just a gesture.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily.News
Published: October 2nd, 200801:33 AM
last Modified: October 2nd,_ 2908 01:39 AM
Stevens' supposed request· for a bill came on a day,of damning
testimony by Allen. But the session was cut short at the lunch
break by unexplained issue involving a Nror. U.S. District .
Court Judge Emmet Sullivan called a closed-door meeting with
attorneys for both sides before recessing for the day. Whether
. -'143
judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Stevens will jurors judge? M
D-
.defense rests It{ '{.+_It.v 3
ends!n Stevens trial"
session was about the juror or 0 matters couldn't be
Jearned.
Q
----------------
;..-
But Sullivan said the trial would resume this morning with Allen back on the stand. The
government is expected to play three recorded conversations between Allen an,d Stevens that were
made in 2006 after Allen agreed to cooperate in the FBI's sweeping public corruption investigation
in Alaska.
Stevens is charged with seven felony counts of failing to report .more than $250,000 in gifts"
,mainly from Allen and Veco, between 1999 and 2006. Allen, the government's star witness, has
pleaded guilty to bribing Alaska legislators and is awaiting sentencing.
On Wednesday, Allen's second' day of testimony, he recited a litany of work he did for Stevens on
the house without ever getting paid.
Al,lEm was asked time and time again by assistant U.S. Attorney Joe Bottini: Did Stevens pay for
any of the work done by Veco? Did Stevens pay for the electricai work, the plumbing? Did he pay
to move the generat?r? Did he'pay for the lower level deck? How about the electrical tape system
that melted ice off the roof?
"Who did that work?" Bottini asked.
"Veco electricians," Allen said.
"Who paid, for the materials?" Bottini asked.
"Veco," Allen said.
What about the steel and stairs at back of the,
What about the steel log holder.
"I, think I had it fabricated at the shop," Allen said.
What about the new deck the third story loft?
"That platform was'fabricated atthe-Veco shop," Allen'said.
Who paid for the ,folding metal escape ladder that went from the loft to the ground?
"Veco did."
Through Allen's testimony and notes and e-mails from Stevens, it became clear thatStevens knew
what he was getting -- and appreciated it.
"Many for all you've done to make our living easier and our home more enjoyable," Stevens
wrote in a note to Allen dated Nov. 8, 2002. FBI - Stevens-2123
"When'l think of the many ways in which you make my life easier and more enjoyable, I lose
count!" he said-in the Oct. 2, 2002; note. "Thanks for all the work on the chalet.';
"Bill: Bob (Persons) has been filling us in on all the help you've given him on our (remodeling)
project," Stevens said in an e-IJ'laii on Sept. 24, 2000. "You and Bob have been the spark plugs
and we are really pleased with all you have done."
Stevens singled out Rocky Williams, the Veco foreman who oversaw the biggest part of the project
in, 2000 and 2001 -- jacking up the and adding a new firsnloor, a second-story kitchen and
a garage.
(
who's,seen the place wanOknow who has done the ,things he's dOrQ, .
jn the November 200'2 note, Stevens repeated his requesdor a bill.
"Don't forget we need a bill for what's been done out at the ch()let," Stevens wrote.
Allen said he ignored him again. "I don't know why," he said.
Did you want to send Sen. Stevens a bill? asked Bottini.
"I really didn't want to," Allen said.
"Why not?" asked Bottini.
"Because I wanted to Ted," he said.
"Why?"'Bottini asked.
" 'Cause I like him," Allen said.
Allen began his day of testi'!lony recounting how he first heard that Stevens was dissatisfied with
his Girdwood home.
"I think we were on the plane and he said he needed more'room," Allen said. Stevens talked about
jacking up the cabin'and adding a large single room beneath it-- a-place for bunk beds primarily
for his grandchildren when they came to go skiing at nearby Alyeska Resort.
"I told him we had some jacks," Allen said.
Stevens eventually hired a house mover, not \ieco, to lift the house: But as Stevens' wife,
Catherine, warmed to the idea of the addition after initially wanting to sell the place, it became
clear the project needed an arChitect, Allen said.
"He told me that Catherine, that she wanted to be in the middle of it," Allen said. "Now she wants
to have house. Before, she never did. (Now) she wants to put her fingerprints on it. He thought
that was good. She wanted to have a bigger. house."
Allen assigned an engineer wit" architectural experience to the project, he said.
Catherine Stevens rejected some ideas born from the oil fields where Veco normally worked. Allen
thought a grated steel deck on the second story was a great idea because snow would fall through
Instead of having to be shoveled. S.he thought it would make the hqme look, like an oil platform,
Allen said. So Allen assigned workers to build a wood deck on the second floor, and later another
deck on the new first floor to make the house look balanced.
And he fixed problems. With the project completed, he and S.tevens would hang out on the
ground-floor deck and smoke cigars, he'said. When it rained, "the J..ater would be coming down
your neck" through the upper deck. The solution? Veco workers put a roof of plastic sheeting
'between the two decks.
FBI - Stevens-2124
,-- Meanwhilei-Vecowas getting favors from Stevens,-Allen said.
Stevens il1tervened to get the World Bank to pressure the Pakistani government to pay Veco its
share of-profits it claimed it !'las owed on a pipeline there. Stevens intervened with the State
Department to pay for training Russians in building oil production modUles, a project approved but
never put place, Allen said. And Stevens acted on behalf of the company for an Arctic logistics
contract with the National Science Foundation, though Allen said he thought he would have been
successful without Stevens' help.
Stevens'-defense has said,thafhe was doing,nothing:more than helping,constituents:--_a normal c'
" - - -
for se-nators. 0 0
to Stevens, Allen testified about a previously undisclosed state legislator whom he had
, bribed, though he didn't provide the lawmaker's name. He also explained for the first time wl1at his
son, Mark Allen, might have done to put in him legal jeopardy had Allen not gotten him immunity.
The matter came up as Bottini asked Allen about his deal with the government. from a
possible reduction in .his 9-to-ll year sentence if he -- Allen said he didn't trust the
government to deliver -- he said his deal bought immunity for Mark and the re.st of his family.
When Allen was being debriefed by the· government, he said, he didn't mention a suspicion he had
about his son: that Mark "got money to this legislator." After that debriefing session, Allen sa[d, he
called his son to confirm it.
"Yes, Dad, I did," Allen quoted his son as saying.
"The next thing in the mornil!g, I got ahold of that agent and said I had, and that Mark had,"
Allen was directed by the judge not to name any legislator he admitted bribing, in part because
one of them w?s former Senate President Ben Stevel'!s, Ted Stevens' son. The judge ruled such an
assertion would be prejudicial to Ted Stevens. However, the legislator whom he
and Mark had paid as "her."
So far, no current or former female legislators have been publicly identified as targets of the FBI's
investigation.
Contact the.reporters: ,rmauer@adn.com and
ADVERTISEMEN.T
FBI - Stevens-2125
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WASHINGTON - Prosecutors have seriously bungled evidence
and witnesses, but Sen. Ted Stevens' corruption trial will
proceed as planned, a federal judge ruled this
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October 2nd, 2008 02:08 PM
Last Modified: October 2nd, 2008 06:56 PM
Sell it tod.
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I Exhibits from 10/20
Document exhibits
Letters, legal doc-uments, elc. submitted as
evidence.
enlarge
l;>al)<I Verkooterel)) Associated Press
-, In this artist's rendering depicting a scene from
the trial of Sen. Ted Slevens, R·Alaska, left, his.
Brendan, Sullivan, second from lert,
speaks as Prosecutron Attorney B(enda Morris,
center right, and Judge Emmet G. Sullivan listen
on T/.lursday Ocl. 2, 2008,
Thecase against the Alaska
Republican had threatened to
collapse earlier in the day when. his
attorney demanded a mistrial or
dismissal of charges,ove,r the
government's fallure to turn over
to the senator.
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U.S. District Judge Emmet Sullivan
was angered at prosecutors for their
handling of evidence that might
help Stevens' case but was "not persuaded" the violations
were serious enough to declare a mistrial. The trial will resume
Monday.
Stevens trial will continue,
judge rules
Judge Sullivan asked whether the defense attorneys wanted a
few extra days before continuing with the trial and suggested
they could make a new opening statement jurors.
Stevens trial will proceed
Stevens' offer to pay was ignored
FBI - Stevens-2126
Related Links
"Thank you for but we believe there should be a
dismissal," said Stevens' chief lawyer, Brendan Sullivan. "If
not a dismissal, then a mistrial."
The chief prosecutor in the case apologized and sailed her
team's oversight a mistake, though she asserted that Stevens'
rights weren't violated. The defense team was looking for
weaknesses and found one, said Brenda Morris, the lead
_prosecutor on the Justice Department team,
"They're just trying to make a hole and seep into a crack," she
said.
Alaska Politics blog:_ A new name in the
corruption investigation
Photos: Exhibits submitted as evidence
-- - .
The Ted Stevens investigation
Alaska Politics blog
Complete Alaska election coverage
Photos: Sen. Ted Stevens gallery
Photos: Historical photos of Sen. Ted
Stevens
PDf:: E-mail from Stevens to Allen about
home improvements
I q"l ti-'-A-"v-'" (}G
-_...- .--------------------------------------"
l
n
Dom you t'hink thay have good reasQo do asked the
tudge!
The dispute began Wednesday night when prosecutors handed
over notes by an FBI agent of an interview with the main
prosecution witness, Bill Allen, the former chief executive of
Veco Corp. Stevens is accused of not reporting more than
$250,000 in free labor, materials and gifts he received, most
of it from Veco, from 1999 to 2006.
Q
More Sen. jed Stevens stories»
Judge sends Stevens jurors home. for day
Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
FBI - Stevens-2127
The agent's notes, on a document known as a Form 302, quoted Allen as saying he thought that
Stevens would have paid a bill had he sent him one.
Allen is in the middle of his testimony, and he said Wednesday that he didn't send Stevens a bill
for tens of thousands of dollars in repairs and remodeling even though the senator had asked for
one at least twice in 2002. Allen testified that one of his good friends told him that Stevens was
just "covering his ass" in asking for the bills.
"I can't do my duty to defend my client if,the government does not abide by the instructions,"
Brendan Sullivan said today. He asserted that he would have delivered a different opening
statement last week' had he known what Allen had told the FBI agent.
"This can't be undone," he thundered, speaking directly up to the judge from a podium less than T
10 feet away. Clutching his chest, he sa.ld, "My heart's beating twice as as it should be for a
66-year-old man. This can't happen in court."
AS he accused the prosecution of misconduct, Morris leapt to her feet and got within inches of him,
her voiced raised as well.
"He called .me out," she told the judge as he tried to calm the situation.
Walking back to the defense table, Brendan Sullivan "I called her up, not out."
Morris admitted that she violated the judge's orders in not turning over the document; but not
Stevens' rights.. She said the defense was told that Allen had that very thing in a letter on
Sept. 9,
A copy of that letter, filed by the defense Thursday afternoon, said:
"Allen stated that he believed that defendant (Stevens) would not have paid the actual costs
-incurred by VECO, even if Allen had sent the defendant an invoice, because defendant would not
have wanted to pay that high of a bill. Allen stated that defendant probably would have paid a
reduced invoice if he had received one from Allen or VECO. Allen did not want to give defendant a
bill partly felt that VECO's costs were higher than they needed to be, and partly
because he simply did not want to have to pay."
Morris said the letter was adequate information to the defense.
"He's getting a fair trial, believe me. You're getting a great fair trial," Morris said.
Judge Sullivan said he found the government's claims "unbelievable.'"
"It strikes me this is probably intentional," he said. "This is the government's chief witness!"
Before the trial, he'd ordere? prosecutors to turn over redacted versions of 302 forms.
Morris said the prosecution found that particular 302 as it was preparing for the next round of
witnesses. The agent who wrote it is scheduled to testify after Allen, and the prosecution would be
to .make to defense at that time.
}Iniiiequ;remen\s to present materOo the defense, the government operateQder several
kindS of rules. In one, known as a "Brady" after the Supreme Court decision that created it, the
government is required to turn over evidence before the trial that would be favorable to the
defendant. A different rule, known as "Jenks," requires the prosecution to prOVide mOore d e t a ~ l e d
notes from agents at the time they testify. .
In addition, Judge Sullivan issued an order early in the case requiring the government to provide
more material to the defense than Brady usually requires.
Morris said that when members of the prosecution team were preparing Jenks material for the FBI
agent, Michelle Pluta, they realized that they should have given the document to the defense
sooner under the judge's order.
"We do realize this is a gross error," Morris said. "It wasn't done intentionally by any stretch of the
imagination. It was a human error."
The defense filed a heavily redacted version of the 302 Form, dated Feb. 28, 2007,. around 1:30
p,m. Thursday, with only a few sentences of Allen's interview'readable in the four-page document.
"The source (Allen) did not invoice STEVENS for the work that HESS (the project architect)
performed; however, the source believes that STEVENS would have paid an invoice if he had
received one."
In another part of the 302, Allen reported that he'd discussed a request by Stevens that he get a
bill for plumbing work that Veco did on his house in Girdwood, Alaska.
"STEVENS said 'ethics' (an apparent reference to the Senate Ethics Committee) was on his ass and
the source (Allen) needed to get him a':l invoice. STEVENS said he didn't want the, source to 99
through what JON RUBINI we'nt through witt{ their investment. The source did not provide
STEVENS with the requested invoice.",
the reference to Rubini concerned a real estate investment in Anchorage that Rubini and his
partner in Jl Properties, leonard Hyde, invited Stevens to make. Stevens' $50,000 investment
grew to about $ ~ million in six years and was the subject of extensive news. coverage. after Stevens
pushed the Air Force into approving a separate housing project of Rubini and Hyde's.
AOVERTISEME;NT
FBI - Stevens-2128

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Stiefel was interviewed by a federal agent over a payment scheme
involving Veco when he did work for former Gov. Frank Murkowski's re-
election campaign, and, p'fosecutors say in a footnote, "engaged in
criminal conduct." .
In their Aug. 25 and Sept. 9 letters, the federal prosecutors ha,ndling
the:corruption cases list evidence that the defense might use to
discredit'§overnment witnesses. Prosecutors have to provide that sort of
information under federal court rulings.
to the corruption case.was.disclosed.in a.defense
filing in the current case' against"Alaska Sen. Ted Stevens. Defense
lawyers, arguing for a mistrial in Stevens' case, attached tO,their motion
letters from prosecutors to the defense..
ClicktoeQlarge The filing indicated Stiefel might still be subject to prosecution. FBI - Stevens-2129 .
Government lawyers said he has not been promised immunity.
New name in federal
corruption' case
JUSTIN STIEFEL: Agent, interviewed him
involving Veco payment scheme.
By LISA DEMER and RICHARD MAUER
Anchorage Daily News
Published: October 3rd, 2008 05:00 AM
Last Modified: October 3rd, 200801:11 PM
JUSlin Stiefel
Judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Steveris will jurors judge?
Stevens' defense rests
, Testimony ends in Stevens trial
WASHINGTON -- The name of yet another person emerged "
Thursday in the ever-broadening federal investigation: the former chief of
-staff.and.campaign manger.for U.S. Sen. Usa Murkowski. ., - , -
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Stiefel has run his own Washington, D.C.-area lobbying firm the last few
years. Before he w6rked for lisa Murkowski, he was a top aide. to._
. - - - - . . - -- - -. - _. •
Reached by phone Thursday, Stiefel said he would have no comment
about the court revelations.
Prosecutors say Stiefel was interviewed June 3. He said he performed
consulting and polling work for Frank Murkowski's re-election campaign.
Murkowski was trying (or a second term in 2006 but Sarah Palin beat
him in'the Republican primary.
'1 J'l _'1A
it, Veco was supQd to pay Murkowski's polling companY_.fQtiefel's work,
-in edence laundering the source of the money, prosecutors say in the Sept. 9 letter..
"Stiefel stated he agreed with (Veco executive) Rick Smith to have Veco pay a polling company for
services performed by Stiefel and charged to the polling company. Stiefel stated this was so
that payments would not go directly from Veco to Stiefel. Stiefel further stated he never received
any payment from Veco or the polling company."
Defense lawyers !>Iacked out much of the information in the Aug. 25 letter before filing it in court.
But they left a footnote about Stiefel.
"During the course of the investigation, the government independently that Stiefel had
engaged in criminal conduct. (Stiefel) also initially made a false statement to a government agent
during an interview. Stiefel later corrected the false statement during the same interview. Stiefel
has not been promised immunity from prosecution for this conduct."
The letter didn't say what polling company Stiefel was connected with.
Dav ittman, who-handled Murkowski's the last few weeks of the campaign, said
tie el n ver worke,d for him. Likewise, said Bil/ ey, who wrote radio ar:!d teleVision ads for
Frank Murkowski. McConkey once was a big player'in AI ka politics, working for Republicans. He
now lives in Wisconsin, where he's a university instructor and operates a consulting business.
Veco Corp: is the former oil field services and construction company that has been at the center of
most of the Alaska'corruption cases. Smith, Veco vice president, and Bill Allen, the, company
chairman, both have pleaded gUilty to bribing Alaska legislators. Allen is the government's star
witness in th'e, case against Stevens, accused of hiding about $250,000 in home improvements and
:- gifts, m.ost Allen al1_d_ Vec(). _
Lisa ,Demer reported from ";"nchorage and Richard Mauer from Washington, D.C. Contact them at
Idemer@adn.com and rmauer@adn.com.
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Stevens trial will proceed
NO MISTRIAL: Errors by prosecutors won't halt
proceedjngs, judge rules
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October 3rd, 2008 04:59 AM
Last Modified: October 3rd, 200805:00 PM
WASHINGTON -- Prosecutors seriously bungled tneir
obligations on evidence and witnesses but Sen. Ted Stevens'
corruption trial will proceed as planned, a federal judge ruled,
Thursday.
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JOSE LUIS MAGANAfTheAssociated Press
Prosecutors Brenda Morris. Nicholas Marsh and
Joseph Bottini, frantto back, leave the U.S.
District Court in Washington on Wednesday
October 2, after the day's proceedings in the
trial of Alaska Sen. Ted Stevens. U.S. District
Judge Emmet Sullivan refused to grant the,
defense's request for a mistrial or dismissal after
learning that the prosecution hal! faireg to turo·
over evidence that may have been favoraple to
Stevens.
Document exhibits
Lellers, legal documents, etc. submitted as
evidence.
Judge Sullivan asked whether the
defense wanted a few extra days
before continuing with the case, and
he suggested that Stevens' lawyers
could make a new opening
statement to jurors. He even
offered to tell the jUry that the new
opening was made necessarily by a
government error.
The trial, which" paused Thursday
while the dispute over evidence was
resolved, will resume Monday.
U.S. District Judge Emmet Sullivan,
who Thursday morning was furious
witr prosecutors, said. later in the
day at a hearing that he was still
angry but "not persuaded" that the
violations were serious enough to
declare a mistrial.
the case against the Alaska
Republican had threatened to
collapse earlier in the day when his
attorney demanded a mistrial or
dismissal of charges over the
government's failure to turn over
evidence favorable to the senator,
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But th(}se ide:s were rejected by SteOs' chief lawyer,
Brerican Sullivan, who argued that "the il)tegrity of the
proceeding has been breached."
"Thank you for asking, but we believe there should be a
dismiss?!I," Brendan Sullivan said. "If n9t a dismissal, then a
mistrial."
The chief prosecutor in the case apologized and called her
team's oversight a mistake, though she asserted that Stevens'
rights weren't violated. What was really happening, she said,
was that the defense team was looking for a weakness in the
government's, position and found one, said Brenda Morris, who
heads the Justice Department trying the case.
"They're just,trying to make a hole and seep into a crack," she
said.
o
Complete Alaska election
Alaska Politics blog
The Ted Stevens investigation
Photos: Exhibits submitted as evidence
Alaska Politics blog: A new name in the
corruption investigation
More Sen. Ted Stevens stories »
Judge sends Stevens jurors home for day
,Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
FBI - Stevens-2132
"Don't you think they have good reason t.o do that?" asked the judge.
FBI FORM 302
It was the second time in a week that ,Sullivan has the prosecution team. He
earlier became upset when the government sent home to Alaska without testifying
and without informing the court or defense until the man left town. Prosecutors said the man,
Rocky Williams, a foreman on the project to expand Stevens' home in Girdwood, was seriously ill.
_- -,The new dispute handed over notes ?In agent t<:>ok
oran interview with the main prosecution Bill Allen, the' former chief executive officer of
Veco Corp. Stevens is accused of not reporting more than $250,000 in labor, materials and
gifts he received, most of itJrom Veco, from 1999 to 2006.
The agent's notes, on a document known as a Form 302, quoted Allen as saying he thought that
Stevens would have paid a bill had he sent him one.,
Ailen is in the middle of his testimony, and hesaicrWednesda"y that he didn't send'Stevens a bill
for tens of thousands of dollars in repairs and remOdelirig even though the senator hac asked for
one at least twice in 2002. Allen testified that one of his good friends told him that Stevens was
just "covering his ass" !n asking for. the bills.
"I can't do my duty to defend my client if the government does not abide by the instructions,"
Brendan Sullivan said Thursday. He said he would have delivered a different opening statement
last week had he known what Allen had the 'FBI agent. .
"This can't be undone!" he'thundered, up to the judge from a podium less than'
10 feet away. Clutching his chest, he said, "My heart's beating twice as fast as it should be for a
66-year-old man. This can't happen in court.'! '
As he the.prosecutiol) of misconduct, Morris leapt to her feet and got within inches of him,
her voiced raised -as well. - - - -- - - - - --
,iHe called me out," she told the judge as he tried to calm the situation.
Walking back to the defense table, Brendan Sullivan said, "I called her up, not out."
'Morris admitted that she the judge's orders in not turning over the document, but not
Stevens' rights. She said the was told that Allen had .said that very thing in a letter on
Sept. 9.
A letter, filed by the deOe Thursday afternoon, said: 0
#1
"Allen stated that he believed that defendant (Stevens) would not have paid the actual costs
incurred by VECO, even if Allen had sent the defendant an invoice, because defendant would not
have wanted to pay that high of a bill. Allen stated that probably woul'd have paid a
reduced invoice if he had received one from Allen or VEt:O. Allen did not want to give defendant a
bill partly because he felt that VECO's costs were higher than they needed to be, and partly
because he. simpiy did not want defendant to have to pay."
Morris said the letter was adequate information to the defense.
"He's getting a fair trial, believe me. You're getting a great fair trial," Morris said.
On Thursday morning, Judge Sullivan said he found the government's claims "unbelievable."
"It strikes me this is probably intentional," he said. "This is the government's chief witness!"
Before the trial, he'd ordered prosecutors to turn over redacted versions of 302 forms. Morris said
the prosecution found that particular 302 as it was preparing for the next rou'"!d of witnesses. The
agent who wrote it is scheduled to testify after Allen, and the prosecution would be required to
make the report available to the defense at that time.
'A GROSS ERROR'
.
In its requirements to present material to the defense, the government operates under several
kinds of rules. In one, known as a "Brady" after the Supreme Court decision that created it, the
government is required to turn over evidence before the trial that would be favorable to the
defendant. Adifferentrule, .known as "Jencks" from tile statute that created it, -requires the
prosecution to provide more detailed notes from agents at the time they testify.
In addition, Judge Sullivan issued an order early in the case requiring the government to provide
more material to the defense than Brady usually requires.' . '
Morris said late Thursday that prosecutors had reported their own Brady violation to the Justice
Department's Office of Professional Responsibility, which investigates allegations of misconduct by
its attorneys.
She said that when members of the proseclltion team were preparing Jencks material for the FBI
agent, Michelle Pluta, they realized that they should have given the document to the defense
sooner under the judge's order. .'
"We do realize this is a gross error," Morris said. "It wasn't done intentionally by any stretch of, the
imagination. It was a human error."
The defense team on Thursday afternoon received all 100 of the 302 Forms connected to the
Stevens portion of the sweeping Alaska corruption investigation. Most are just one page, Morris
said, but some are as long 13S 10 pages. It also received transc'ripts of all relevant grand jury .
. .
.
Contact the reporters: rmauer:@adn.com and ebolstad@adn.com.
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MOTION: Judge orders government to file its
response by 8 a.m. today.
By TOM HAYS
The Associated Press
Published: October 6th, 200801:44 AM
Last Modified: October 6th" 2008 01:48 AM
WASHINGTON -- Attorneys for Sen. Ted Stevens on Sunday
renewed their effort to get a federal corruption case against
the veteran Alaska lawmaker thrown out, saying prosecutors
manipulated the story of their star witness to undermine the
defense.
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U.S. District Judge Emmet G.
Sullivan rejected a similar bid for a mistrial or dismissal on Friday after
prosecutors said they would share with the defense documents they
claimed were mistakenly withheld.
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"Until today, defense counsel have·
refrained from alleging intentional
misconduct by the government,"
the lawyers wrote in c6ur,t paR.ers.
"We can no longer do so in good
conscience."
More Sen. Ted Stevens stories»
Judge sends ,Stevens jurors home for day
Stevens gets help from some ,friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
Stevens, 84, is charged with lying on senate financial C:lisclosure forms about more than $250,000
in home renovations and other gifts from oil pipeline magnate Bill Allen. The senator's trial is .
expected to continue today with Allen returning to the witness stand. FBI - Stevens-2134
The latest motion to end the trial says the newly disclosed documents show Allen originally told
investigators 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 state-ment" ,and then "concealed its
actions" from the court, the defense papers say.
There was no immediate response to messages left with the Justice Department, which is
prosecuting the case.
late Sunday ordered Ogovernment to file its response by 8 a.mQday. He
,;scheduled a hearing on the defense motion for 9 a.m. .
Testifying as part of a deal in which he guilty to bribing state legIslators, Allen has told
jurors he did not have the heart to bill his buddy for the work done by his company, Veco Corp.
Stevens sometimes asked for bills, Allen said_. But Allen said he was informed by a mutual friend
the senator made the requests simply to cover his tracks.
Lawyers for Stevens say the lawmaker relied on his wife to pay tens of thousands of dollars in bills
on the remodeling project, and believed the job was above board. They claim Allen, who was
overseeing the work while the senator was away, kept Stevens'in the dark about the cost of extras
such as wraparound decks, a Viking gas grill and fancy outdoor lighting.
Much of Allen's testimony focused on constructionat the ski chalet and what Stevens knew about
it. But the self-made multimillionaire also spun a folksy back- story of a deep kinship ultimately
destroyed by a sudden betrayal.
Allen, 71, spoke in a halting drawl that; he told jurors, was caused by lingering brain damageJrom
a motorcycle accident. He described his steady rise from an apprentice welder. in New Mexico to
owner of an Alaska-based company with 5,000 employees. He-said he first met the patriarch of
Alaska politics in the early 1980s while attending political fundraisers.
As the years went by, the pair grew close. They smoked cigars together at Stevens' cabin. They
fished for salmon. They fJew to the Lower 48 for "boot camp" outings where they gave up hard
liquor and heavy food for wine and light meals, and did lots of walking to get in shape.
"We ki,nd of really liked each other," Allen testified as Stevens sat at the defense table with a frown
e!ched on his Jace. "Had the_sa_me .... Ted loved Alaska,and,1 lC?ved Alaska."
Handwritten notes from Stevens entered as evidence suggest the admiration was mutual. One note
thanked·Allen for the "many ways you make my life easier and more enjoyable."
Allen testified Stevens used his Senate seat to help VECO try to win lucrative government
contracts and oil deals in the late 1990s. Defense insist their client merely was doing his
duty to' assist a constituent.
By 2006, the FBI had Allen under investigation for lining the pockets of state legislators voting on a
pipeline project. After agents arrived unannounced at his doorstep that year, Allen agreed to
cooperate -- even letting them record phone calls with Stevens -- so long as they did not pursue
any charges against his family.
The investigators asked him "to help them to try to the guys I bribed, and they told me if I did
that they wouldn't mess with my kids," he said. "That was it, I guess."
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Listen to Allen-Stevens phone calls, with

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Jose LUIs Magana JAssociated Press
Sen. Ted Stevens arrives with his daughter Beth
Stevens at U.S. District Court in Washington
Monday Oct 6, 2008.
"I don't know what the (expletive)
these guys are doing. We'll have to
figure that out later," Stevens said
to Bill Allen, chief executive of the
9i1 services firm Veco Corp.
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"I'm developing the attitude that I don't think I did anything
wrong, so I'm going to go right through my life and doing
what I think is right," the senator said.
Stevens to Allen: 'These
guys can't really hurt us'
More Sen. Ted Stevens stories»
Two years after th'!t conversation, Stevens, now 84 and up for Judge sends Stevens jurors home for day
re-election,·is on trial·for·taking more than $250,000 in gifts - Stevens gets help'from some friends
(q'1.-""....... .....
But Stevens also offered up advice
on maintaining a good attitude in
the face of the investigation to
Allen, the man who - unknown to
Stevens -- had agreed to testify
against the senator-in exchange for leniency in his own
sentencing and the promise prosecutors wouldn't target his
children.
"They're not going to shoot us; it's not Iraq,.so what the hell,"
Stevens said. "The worst that can happen to us is we wind up
with a bunch of legal fees and might lose, and we might have
to pay a little fine, might have to serve a little time in jail. I
hope to Chri,st it never gets to that, and I don't think it will."
WASHINGTON - In secretly recorded telephone conversations
played in court today, Sen. Ted Stevens denied wrongdoing
and cursed at the federal agents who were raiding homes and
in Alaska as part of a sweeping corruption probe.
By RICHARD MAUER AND ERIKA BOLSTAD
Anchorage Daily News
Published: October 6th, 200802:44 PM
Last Modified: October 6th, 2008 02:44 PM
They needed to maintain the attitude that "these guys can't
really hurt us," Stevens said to Allen.
.
Which stevenO,.jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
chiefly from Veco -- and lying aboutl"'\n on his U.S. Senate
financial'd.isclosure forms: V"

...
The first of the·thre·e recordings played today in court as part
of Allen's testimony was made Aug. 31, 2006. That was one
day after the FBI searched Allen's home and office and he agreed to cooperate wjth investigators
in the Alaska corruption investigation. In 2007, Allen pleaded guilty to bribing state lawma,kers.
In conversations in c<?urt, Stevens told Allen the investigation was weighing on his mind so
heavily that he wasn't sleeping well.
"Well, I'm not getting much sleep when I think about all this (expletive) that's going down, about
four hours a night," Stevens said in the 2006 phone call. "But I'm going to survive. I just can't
figure out why these (expletive) are doing this thing to our friends."
The Alaska Republican also was equally insistent he had done no wrong, telling Allen that his own
lawyers had warned him about Martha Stewart, who Stevens described as going to prison not for
what she had done but because "she lied about a conversation she had with somebody."
"1 don't think we've done anything wrong,'BiII, 1 can tell you right now," Stevens said. "1 told my
lawyers 1c,!,n't of a thing of we've done that's wrong."
On cross examination. later in the day, Stevens' main lawyer, Brendan Sullivan, zeroed in quickly
on the heart of their defense strategy: The senator is an honorable man who pays his debts and
would ,have written a check for the home renovations had· he known he owed Veco or Allen any
money.
"You never tried to bribe Sen. Ted Stevens, did you, sir?"
"No," Allen said.
"You knew you couldn't bribe Sen. Ted Stevens, could yo.u, sir?"
"No."
Allen's testimony, which-is at the center of the trial against Stevens, began last week. The trial
nearly derailed Thursday after Steyens' lawyers accused'prosecutors of hiding evidence that Allen
might have said things that 'would have helped Stevens win his case. They included notes from an
FBI interview in which Allen told the investigator he thought Stevens would have paid a bill had he
ever sent him one.
U.S. District Judge Emmet Sullivan, furious with the government team, ruled that prosecutors had
bungled the evidence but that there was not enough misconduct to declare a mistrial or throw out
the charges.
The trial, on hold for two days last week, restarted this Il)orning with Allen's testimony. Before they
played the audio recordings, prosecutor Joe Bottini walked Allen through a series of questions
about he'd given Stevens, including furniture, a bed and free labor on repairs to his boiler in
2006. FBI - Stevens-2137
Allen testified.about fixing. the boiler in 2006 and how when he got the blll.from.Chugach Sewer·
and Drain, he didn't think it was right for Stevens to have to pay the labor costs since the plumber
had screwed up the installation. The invoice read, "Labor paid by Bill."
That caused problems, Allen testified.
"I didn't want that saying that I was going to take care of the labor," he said, saying that he talked
to mutual friend of Stevens' and his, Bob. Persons, about the invoice. ''It's going to be a mess, 1
didn't want this invoice going around for everybody, like a secretary, and Chugach Sewer and
Drain."
Stevens'dJd Inquire about the bill, AOsaid, but he never gave it to him. 0
p
(-
"Did he ever ask you how much the labor charges were'("
"Not that I can no," Allen said.
But Stevens' attorney elicited a slightly different response from Allen when he asked about the
exact same, invoice.
"When Ted Stevens saw that notation, on the bill that he got in Washington, he called your
secretary, Linda Croft, and told her to tell you he wanted the full bill, didn't he?" Brendan Sullivan
asked.
"Yes," Allen said.
"And your secretary called you and told you exactly what Ted Stevens said, am I correct?"
"Yes," Allen said.
Brendan Sullivan also asked him whether Stevens insisted on paying his share when they dined
together, and whether the senator reimbursed Allen when. he flew on a Veco charter. He also
brought up the racehorse stake the two had with other partners,
"Isn't it true that with respect to those little ventures you had, red Stevens always insisted on
paying all of them m,oney that was properly his share?"
"Yes," Ailen said.
Stevens' lawyer also. asked Allen whether he had told FBI agents that Stevens would he have paid
a bill if he sent him an invoice. "I had no idea how much, but'if it had been an invoice that was
fair, I think Ted would have paid it," he said.
The awkward question-and-answer session was slowed by Allen's claims he was having difficulty
hearing through the voice-amplification system he was using. He also sparred Brendan
Sullivan.
"You're not going to get me mad, are you?" Allen said.
"No," Sullivan said, adding that Allen would know if he were trying to provoke him.
"You're not going to get me mad," Allen said, smiling.
But Judge Sullivan was suspicious about Allen's demeanor and, the jUry had gone home for
the day, called out to Allen's lawyer, Robert Bundy of Anchorage, in the audience. Bundy was
signaling to Allen, the judge and threatened to hold him in contempt. He also suggested that
Allen wasn't being entirely trutl'iful about his hearing problems. FBI - Stevens-2138
"It's entirely Inappropriate; I can't imagine an attorney doing that," the judge said, adding later,
"It's clear to me what I saw. It's really disturbing.'"
Bottini, who is an assista'nt U.S. attorney In Anchorage; vouched for Bundy and said he had known
him for years., He "would be quite surprised if that was an intentional gesture on his part," Bottini
said. It didn't appear Allen was looking at Bundy at the time.
Outside the courtroom, Stevens' lawyers continued to hammer at Allen's credibility as a witness,
filing a second motion late Sunday asking the judge to declare a mistrial. This time, they accuse
the prosecutors of deliberate misconduct.and said they've manipulated Allen to elicit the testimony
most damaging to Stevens. .
Judge.5Uliivan will hold a hearing TuQY'or Wednesday on the new request foQistrial: The
j u t 1 ~ e has already twice reprimanded the prosecution team. He earlier became upset when the
government sent'a key witness home' to Alaska without testifying and without informing the court
or defense until the mim left town. Prosecutors said the man, Rocky Williams, a foreman on the
project to expand Stevens' home in Girdwood, was seriously ill.
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Partial.transcripts of
evidence on tape
Published: October 7th, 2008 12:37 AM
Last Modified: October 7th,·2008 02:17 AM
Oct. 18, 2006, phone call between ex-Veco chief Bill Allen and
U.S. Sen. Ted Stevens. It was played for the Jury Monday in
Stevens' trial.
More Sen. Ted Stevens stories»
Judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Stevens will jurors judge?.
Stevens' defense rests
Testimony ends in Stevens trial
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BILL ALLEN: I don't think we have either, Ted. But ... that lawyer has
grilled me and grilled me on what they think they can do. He talks to
them, I don't."
TED STEVENS: I'm not going to let these guys get us in a position
where they can charge us with something just because we didn't do
what they think we should'd9' They've got to go out make the case that
we did something that is against the law. I don't think we have violated
the law."
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STEVENS: That's, that's the way it should be. But as a practical matter,
the question is, what.can they convince the jury, uh grand jury, to
charge l,Is with? That's the problem. But.when I was a district attorney, I handled grand juries, lots
of them. They're funny people, but they also are pe9ple from within the community. And your
reputation and else comes into play, as far as grand juries are concerned ... We ought
to just cool it. I told Ben the same thing: just cool it, you know, go about our business and smile
and have a happy face '''. Do the things you used to do and just keep going. If it's a violation of
the elections law, that's a corporate violation. This thing, it shouldn't, it shouldn't get to your mind,
old buddy."
ALLEN: Well it has been, I'll tell·you."
STEVENS: .... You've got to get a mental attitude that these guys can't really hurt us. You know,
they're not going shoot us. It's not Iraq. What the hell? The worst that ,can be done, the worst that
can happen to us is we round up a bunch of legal fees and might lose and we might have to pay a
fine, might have to serve a little time in jail. I hope to Christ it never gets to that ... So I'm going
to go right through my life an? keep doing what I think is right:
More phone call excerpts
Sept. 10, 2006
!iTEVENS: Keep your heart going, keep yourself going, we got () fight there ahead of
"... _" ...'
ug. AE9 ~ e ' r e g'onna win it because Odn't do anything wrong. You've got a riOo spend all
t)ia morit;y you got to support the party you believe in., .
:.;s
ALLEN: Yeah, I know.
STEVENS: You remember that. No one can tell you you sperit too much money.
ALLEN: Right.
STEVENS: The question is whether you did something illegal and I don't think, you did. I have a
little problem about Rick Smith from some of the things 'I'm hearing. I don't know if you're hearing
that, but the things he's done down in Juneau may have been a little bit on the edge. Butwe'll
stick with him. I'm not tossing him-to the wolves, don't misunderstand me.
Oct. 18, 2006
STEVENS: When I was talking to my lawyers, they told me that we, we ought to avoid trying to
look like w e ' r ~ meeting In a situation where we wouldn't be overheard or having no one with us.
They point out that, what's her name, that w9man that uh, who went to jail, Martha Stewart?
AL.LEN: Yeah.
STEVENS: She didn't go to, to jail because she did something wrong. She went to jail because she
lied about a conversation she had with somebody.
ALLEN: Uh huh.
STEVENS: They say we should have no problem ... we can meet, you know have dinner, or what
not. But we should not try to look like we're going' to try to try to keep things from the' world. And
he, they said we oughtto really lay low right now, because this grand jury is meeting. And if they
got wind that it looked like we were going try to, you know, do what they call obstruct justice, they
could call us before the grand jury on a different, different thing all together.
Aug. 31, 2006
(The day of the FBI raids of legislative offices and other locations in Alaska)
ALLEN: ....Yeah, hey Ted, I've been trying to get ahold of Ben. I can't get ahold of him. And uh,
the FBI got a warrant and searched my house and... and the office...
STEVENS: For what?
ALLEN: Uh, With, with Ben and trying to figure out, y'know, what ... what kind of ... you know,
what, he done for us.
STEVENS: I see. Ok.
FBI - Stevens-2141
ALLEN: And ...
STEVENS: Well, I ...
ALLEN: And uh, they asked me what I done,on your house....
STEVENS: Yeah?
ALLEN: And I said, well, he's paid for everything and uh, you know, you 'don't ... you don't need
this problem again, Ted, but that's what they're, uh, talking me ... and J just told 'em I wouldn't
talk to, 'em.
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Stevens evidence on tape
played for jury
Senator maintains innocence in profanity-laced
conversations with friend working for the FBI
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
Published: October 7th, 2008 12:44 AM
Last Modified: October 7th, 2008 09:43 AM
WASHINGTON -- In secretly recorded telephone conversations
played in court Monday, Sen. Ted Stevens denied wrongdoing
and spat out expletives to describe the federal agents who
were raiding homes and offices in Alaska as part of a sweeping
corruption probe.
- "'-- .....- .... -.... ...... -_:. -
., .... .... - . -- "' ... _.. ... -.... --- .....
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I Exhibits from 10/20 3'
- --
FBI - Stevens-2142
Listen to Allen-Stevens phone calls" with
transcripts
Fees paid to Ben Stevens questioned by
Veco execs
PDF, evidence graphic
Photos: Historical photos of Sen. Ted
Stevens
Photos: Sen. Ted Stevens gallery
Complete Alaska election coverage
The Ted Stevens investigation
Photos: Exhibits ,Submitted as evidence
Related Stories
Allen's lawyer scolded by judge in Stevens
trial
Partial transcripts of evidence on tape
Defense renews its bid to dismiss Stevens
tria.1
Related Links
Qocument exhibits
Letters. legal documents. etc. sobmitted as
evidence.
"You've got to get a mental attitude
that these guys can't really hurt
us," Stevens told Allen on Oct. 18,
2006, not knowing that Allen had
been secretly working for the FBI
for: nearly two months.
"I don't know what the (expletive)
these guys are doing, we'll have to
figure that out later," Stevens said
to Bill Allen, the chief executive of
the oilfield services firm, Veco Corp.
The jury heard the full-throated
Stevens, profanity and all.
"You know, they're not gOing to
shoot us.. It's not Iraq. What the
But the recordings also prOVided
insight into how Stevens has
maintained his presence in
Washington and Alaska without
shrinking in shame or
embarrassment despite the long,
public investigation and then his
seven-count felony indictment in
July.
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Sen. Ted Stevens leaves U.S.
District Court 10 Washington,
D.C , Oct 6, 2008,
hel!? that can be done, thOst that can happen to
u!ifS we round up a bunch of legal fees and might lose and we
might have to pay'a fine, might have to serve a little time in
jail. I hope to Christ it never gets to that, and I don't think it
will. But I'm developing the attitude that I don't think I did
anything wrong so I'm going to go right through my life and
keep doing what I think is right."
Sen. ,Ostevens stories»
Judge sends Stevens jorors home for day
Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial'
FBI - Stevens-2143
The three audio recordings, totaling about 30 minutes, were
the first played in Stevens' felony 'disclosure trial, now entering its second full week of testimony.
Later this week, prosecutors say they plan to introduce recordings made on wiretaps on Allen's
phones before he knew he was a suspect.
The recordings are nothing like the videos in the trials last year, where Allen and another Veco
official could be seen reaching for hundred-dollar bills to stuff in the outstretched hands of state
legislators, who were later convicted.
Stevens, now 84 and up for re-election, Is on trial for taking more than $250,000 in gifts -- chiefly
from Veco -- and lying about them on his U.S. Senate financial disclosure forms.
Prosecutors finished their direct examination of Allen at the end of the lunch break Monday, and he
was handed over to chief defense counsel Brendan Sullivan. Over three hours of cross-
examination, Sullivan tried to chip away at the government's case.
The main theme was Allen acknowledging that Stevens would have paid at least a fair price for
much of the work.done on his home by Veco -- had Stevens been billed. Allen also told of how
some of the things he got for Stevens, like strands of outside house and tree lights for the winter,
or big piece,S of ,new and used fumit,ure, were not solicited by Stevens and may not have been
wanted. '
"You never tried to bribe Sen. Ted Stevens, did you, sir?" asked Sullivan
"No," Allen said.
"You knew you couldn't bribe Sen. Ted Stevens, could you, sir?"
"No."
, .
But the charges faced Py Stevens were not that he was bribed or that he asked to get something
for nothing, Rather, he's charged with failing to report gifts under ethics laws enacted by Congress.
main effort by the pro,secution so far has been to offer evidence that Stevens obtained tens of
thousands of dollars of valuable services, materials and useful items from Veco and Allen, and
knew about it. The defense so far has been that the government's accounting of those services
was overstated, that the gifts weren't wanted, that the work was faulty and that Stevens wasn't
given the opportunity to pay.
The first recording played Monday with Allen on the stand was made Aug. 31, 2006. That was the
day that the FBI conducted a coordinated series of raids on legislative offices, including the office
of Stevens' son, then-state President Ben Stevens. It was also one day after Allen began
cooperating with federal authorities.
Allen's call appeared to be the first that Ted Stevens heard of the raids. Allen reached Stevens on
his cell phone while he was walking down a hill in San Francisco with his wife, Catherine.
Allen told him the FBI was asking about his "consulting" payments to Ben and Veco's renovations
to Stevens' house in Girdwood.
"And I just told them I wouldn't talk to them," Allen lied.
FBI - Stevens-2144
'l\(eah, Good," said Stevens. He QAllen he had an "inkling" something but by his
descrip,tions in that conversation and others, seemed to think it was about Veco's campaign.
contributions, not gifts or, in the case of legislators, bribes.
In the Oct. 18, 2006, call, Stevens told Allen his son, in the last two months of his term, wasn't
able to get the investigation out of his mind and it was threatening to affect his family.
"He's got to stop being just so depressed because it'll spring over to the kids. He's going to do all
right. When his term finishes, we'll get some funds to help him pay his law firm, his legal fees. But
he's got a tough row to hoe," Steyens said.
In the Sept. 10, 2006, call, Stevens said he was also emotionally affected by the investigation.
"Well, I'm not getting much sleep when I think about all this (expletive) that's going down, about
four hours a ,night," Stevens said. "But I'm going to survive. i just can't figure out why these
(expletive) are doing this thing to our friends."
Stevens also was equally insistent he broke no laws.
"I don't think we've done anything wrong, Bill, I can tell you right now," Stevens said. "I told my
lawyers I can't think of a thing we've done that's wrong."
Allen's testimony, at the center of the trial against Stevens, began last week. The trial nearly
derailed Thursday after Stevens' lawyers accused of hiding evidence that Allen might
have said things that would have helped Stevens win his case. They included notes from an FBI
interview in.which Allen told the investigator he thought Stevens would have paid a bill had he
ever sent him one.
U.S. District Judge Emmet Sullivan ruled that prosecutors had bungled the disclosiJre of evidence
to the defense, but that there was not enough Il)isconduct to declare a mistrial or throw out the
charges.
The trial, on hold over the evidence question, resumed Mo"nday with Allen still on the stand, and
he'll be there again this morning for more cross-examination. Before prosecutors played the audio
recordings, U.S. Attorney Joe Bottini of walked Allen through a series of
questions about gifts he'd given Stevens, including furniture, a bed-and free labor on repairs to his
boiler in 2006.
Allen testified about fixing the boiler in 2006, and how when he got the bill from Cliugach Sewer
and Drain, he didn't think it was right for Stevens to have to pay the labor costs, since the plumber
had initially installed a circulation pump backward. On the invoice, it read "labor paid by Bill."
That caused problems, Allen testified.
"I didn't want that saying that I was going to take care of the labor," he said, saying that he talked
to mutual friend of Stevens' and·his, Bob Persons, about the invoice. "It's going to be a mess, r
didn't want this invoice going around for everybody, like a secretary, and Chugach.Sewer and
Drain."
Stevens did inquire aboiJt the- bill, Allen said, he never gave him
But Brendan Sullivan, Stevens' attorney, elicited a slightly different response from Allen when he
asked about the same invoice in cross-examination.
"When Ted Stevens saw that notation, on the (parts) bill that he got in Washington, he called your
secretary, Linda Croft, and told her to tell you he wanted the full bill, didn't he?" Brendan Sullivan
asked.
"Yes;" Allen-said.
"AJ1d secretary called-you and exactly what Ted Stevens said, amQrrect?"
"Yes,"-Allen said.
When Allen built his own home and moved out of an apartment, he filled several rooms of Stevens'
home'with his old furniture. Allen, a tall, big man, had large, comfortable living room furniture that
overwhelmed the Girdwooq home, Allen acknowledged under questioning as monitors around the
courtroom displayed a particularly wide chair.
"You're not an interior decorator?'; Sullivan asked.
"NO," said Allen.
"Did they telLyou he (Stevens) couldn't sit in the chair because his feet didn't touch the ground?"
"NO, they were too polite," Allen said.
Sullivan also asked him whether Stevens insisted on' paying his share when they dined
together, and whether the senator reimbursed Allen when he flew on a Veco charter. I-!e also
brought up the racehorse stake the two had with other partners.
"Isn't it true that with respect to those little ventures you had, Ted Stevens always !nsisted on
paying all of them' money that was properly his share?"
"Yes," Allen said.
Stevens' lawyer also asked Allen whether he had told FBI agents that Stevens would have paid a
bill if he sent, him invoice.. "I had no idea how much, but if. it be,en al)invoice that was fair, I
think Ted would have paid it," he said. "' - --
The awkward question-and-answer session was slowed as Allen complained of having difficulty
hearing through the voice-amplification system he was using. He also sparred with Brendan
Sullivan.
"You're not going to get me mad, are you?" Allen said.
"No," $ullivan said, adding that Allen would know if he were trying to provoke him.
"You're not going to get me mad," Allen said,·,smiling.
But Judge Sullivan was suspicious about Allen's demeanor. With the jury still in, he, pointed to a
lawyer in the front row of the spectator's section, Robert Bundy .of Anchorage, and said he saw him
signaling to Allen and demanded at once that he stop. A marshal moved to the aisle one row
behind Bundy and stood there till the next recess.
With the jury gone but.the room still filled with lawyers, reporters and other spectators, Sullivan
demanded Bundy, Allen'.s attorney, identify himself., Sullivan threatened Bundy with a contempt
citation and an ouster from thecourtrool"(l. FBI - Stevens-2145
eptirely in<il'p!opriate, an attorney doingthat,lOthe,judge said, adding later,
"It's clear to me what I saw. It's really disturbing."
Bottini, who is an assistant U.S. attorney in Anchorage, vouched for- Bundy and said he had'known
him for years. He "would be quite surprised if that was an intentional gesture' on his part," Bottini
said. It didn.'t appear Allen was looking at Bundy at the time.
Outside of the courtroom, Stevens' lawyers continued to hammer at Allen's credibility as a witn'!!ss,
filing a second motion late Sunday. asking the judge to declare a mistrial. This time, they accused
the prosecutors of alJd, sa!s' Alien,to elicit the testimony
most d'!llJ.aging to Stevens.
"
o
Sullivan will hold a hearing today or Wednesday on the new request for a mistrial.
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Allen's lawyer scolded by
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Document exhibits
Letters. legal documents. etc. submitted as,
evidence..
Sell it tod;
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily ,News
Published: October 7th, 2008 09:37 AM
Last Modified: October 7th, 2008 09:43 AM
I Exhibits from 10/20
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Photos: Exhibits submitted as evidence
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Stevens
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Partial transcripts of evidence on tape
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With the jury gone but the room still fi,lIed with lawyers, reporters and
other spectators, Judge Sullivan demanded that Bundy,ide.ntify himself..
a contempt cita'tionand an ouster .
__ _._.. __ __ c{4--A-tV---
Monday, at the close of proceedings
with the jury still in the
courtroom, Judge Sullivan-pointed,-
to Bundy, said he saw him signaling
to Allen, and demanded he stop. A
marshal moved to the aisle one row
behind and waited there until
the next recess.
Bundy's colleague, Creighton Magid,
said Tuesday morning that the
Anchorage lawyer and former U.S.
attorney is "absolutely torn up by
and "vehemently" denied
signaling to his client.
"I couldn't believe what I was
seeing," U.S. District Judge Emmet
Sullivan said Tuesday morning; in
something or' a sideshow before the
trial began for the day. "That's
borderline obstruction of justice."
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WASHINGTON - The attorney representing Bill Allen, the star
witness in Sen. Ted Stevens' corruption trial, was scolded
further Tuesday morning by the judge overseeing the .
case.Anchorage attorney Robert who has been sitting
in the spectator section of the·' courtroom' in Washington while
his client has been testifying, was accused Monday by the
judge of trying to signal to Allen on the stand and help him
answer questions from a defense attorney.
-- - --------
I from the Otroom. 0
)
Judg-l raised the matter again Tuesday morning, asking for Bundy to appear in the
courtroom"but he was not there. Magid spoke on Bundy's behalf and also said he would represent
Allen's interest in court today. .
Stevens' chief lawyer, Brendan Sullivan, said he wasn't planning to say anything about what his
own team had seen the before, but since the judge had brought it up, he would. Stevens'
- personal lawyer, Bob Phillips, told one of. the lawyers on the defense team Monday that he also
observed some sort of communication between Bundy in the courtroom,and Allen on the stand,
Sullivan said in court Tuesday. .
"He was so distressed at what he saw, that he got up and signaled one of our young lawyers to
mention what happened," Brendan Sullivan said.
Stevens' lawyer also said that'he received a call Monday night from Magid, asking him whether. he
objected to Bundy being in the courtroom during Allen's testimony. Brendan Sullivan told the judge
that he told Magid on Monday night that he didn't want Bundy in the courtroom.
But prosecutors vouched for Bundy, calling him a "stellar" attorney. The accusations by the
defense were just another "scurrilous" attempt to stir up trouble in the case and smear Bundy's
name, said the chief prosecutor, Brenda Morris. It will be in Alaska newspapers now, Morris said,
and will open up Bundy to the kind of hate mail she's received from people in the state.
Magid, too, said he was concerned, that it had already been mentioned in the Anchorage Daily
News. His colleague-is an honorable former federal prosecutor who sits on the ethics committee of
the Alaska Bar Association, Magid said.
"To have shotS taken at Mr. Bundy and him not in the po?ition to <!efend himself, I think
• fundamentally unfair," Magid said.
That's true, Judge Sullivan acknowledged. The judge also conceded it was also possible
"maybe he was shaking his head in disbelief at something else."
Later this morning, when cross-examination of Allen resumed in the courtroom, Brendan Sullivan
asked Allen whether he had seen Bundy in the courtroom Monday, and asked whether Allen saw
nodd-ing- his h-ead he gave certain answers.
"No," Allen said, "no, he did not do that."
Judge Sullivan said he didn't want the issue to be a distraction from the trial, but also said he
wasn't content to let the issue rest and may ask for some sort of statement from, the other
attorney who witnessed the signals. He refused on Tuesday to rule out any sanctions.
Contact the reporters: ebolstad@adn.com and
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Stevens friends plotted to
cover bills
Document exhibits
letters. legal documenls, etc. submilled as
evidence.
Sell it tod.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October 7th, 2008 04:46 PM
.. Last Modified: October 7th, 2008 04:47 PM
I Exhibits from 10/20
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WASHINGTON - Sen. Ted Stevens' friends went out of their
way to help pay his bills, according to court testimony today,
even conspiring to cover up how mUCh, they paid for something
as minor as plumbing repairs at his home in Girdwood.
. ,
Partial transcripts of evidence on tape
Defense renews its bid to dismiss Stevens
trial
Stevens evidence on tape played for jury

FBI - Stevens-2149
Judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense'rests
Testimony ends in Stevens trial
More Sen. Ted 'Stevens stories»
Links
Listen to wiretaps played for jury Tuesday
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transcripts
Fees paid to Ben Stevens questioned by
Veco execs
PQf..; .evidence graphic
. - - ----" -.--- - -- --,
Photos: Historical photos of Sen. Ted
Stevens
Photos: Sen., Ted Stevens gallery
Complete Alaska election coverage
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Related Audio Content
"I'll just tell Ted to give me a
check," his friend Bill Allen said in a
conversation secretly recorded
2006, by FBI agents investigating
corruptio.n in Alaska politics.
The telephone conversations,
played in court today near the end
of the prosecution case against the
senator, came as close to a
smoking gun as Stevens' corruption
trial has had. Stevens, 84, 'is on
tr@1 forJying.on hLs,§enate financial
disclosure forms about more than
$250,000 in gifts and to
his home in Girdwood in recent
years. The gifts were largely from Veco Corp. and its chief executive,
Allen, who now is the star witness in a corruption trial that's been under'
way since Sept. 22.
don't Pi:l'le,J:Q Y2l:1
just have to make a copy of
Stevens' friend Robert Persons, who
kept an eye on Stevens' home when
he was out of town. "Then if it ever
did come up, you can say, 'I didn't
deposit that? Hell, I knowI,did.' "
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b
Click to enlarge
Sen. Ted Slevens leaves U.S.
District Court in Washington.
D.C.• OCI. 6. 2008.
Prosecutors have been working to establish a case that time after time, Stevens took gifts even
he knew,he have p.':li,d his own way. /1 t.(A,-. -r:t;A)- (36/1. 0- .N\
. - -
FBI - Stevens-2150
But they'Ve,stumbled in their presenCns, and Stevens' defense team has accCthem of
wiilittofding evidence that would have been helpful to the senator's defense. Stevens' lawyers have
tried twice now to have the charges thrown out and will argue again today in front of the judge for
a mistrial.
Today, Brendan Sullivan, Stevens' lead defense attorney, continued to tear into the government's
case when he cross-examined Allen, who has already pleaded guilty to bribing state lawmakers In
Alaska. Sullivan worked to leave jurors with the impression that Allen deliberately held back
information from Stevens about bills, and that the senator would have paid them had he ever been
sent an invoice.
Brendan Sullivan also sought to dismiss the idea that Veco got special benefits when Stevens came
to the company's defense over a pipeline in.Pakista!1, a labor training program for Russians, a
logistics contract with the National Science Foundation and· support for a proposed natural gas
pipeline.
Sullivan today questioned Allen about his plea deal with the government and the risks that his lack
of cooperation would disrupt the sale of Veco last year to CH2M Hill, the international engineering
and construction firm based in Colorado. The company withheld $70 million from the ca'sh they
paid the owners of V e ~ o -- Allen, his three children and two top executives -- to protect against
contingencies( including the possibility Veco itself would be indicted.
But prosecutors came back swinging with the recordings this afternoon. Jurors paid close attention
to the conversations between Allen and Persons and openly guffawed at the salty exchanges.
Prosecutors also played conversations highlighting Stevens' legendary tight-fistedness. Persons,
Allen and Stevens were part of a horse racing venture and it was d!fficult to pry money out of the
s.enator for it, his friends joked in their recorded.conversations. Even Stevens' wife,·Catherine,
acknowledged it, the two joked.
"As Catherine says, Ted gets hysterical when he has to spend his own money," Persons said,
chuckling. "He gets hysterical because he can't really afford to pay a bunch of money; I think."
"I know," Allen said.
One of the conversations shows the two were especially Irritated in e(lrly 200'6 after Allen sent a
plumber he knew to make emergency repairs to Stevens' boiler.. The plum6er sent an invoice ~ o r
his work with the notation "Labor paid by Bill" that Persons forwarded on to Stevens.
Stevens saw the notation and got annoyed, according to testimony. He sent Allen's secretary a ~ e-
mail saying he wanted to pay the whole bill, including labor costs. Allen had had it split In two so
that he paid the $1,080 in labor and Stevens got the $1,187 bill for parts.
On Feb. 16, Allen called Persons to ask him why the bill went to Stevens marked w,ith "labor paid
by Bill."
"Oh (expletive), I didn't even see this, oh, labor paid by Bill. Ouch. I didn't see that, I'm sorry,"
Persons said.
"Oh (expletive)," Allen said;
"Well, it went straight to his house," Persons said.
"Yeah, but I got an email from ... that he's got to talk to me/, Allen said, "and I've already taken
care of that (expletive) bill."
"I just looked at that and I didn't.. .son of a bitch. I know you didn't, want him to know that, did
you?" Persons said.
. ._"- -'----'" ~ - --- ---- -
- ~ - -
"WeH, .•:md I didn't want eVerybQto know,'" Allen said. 0
i,' W
Allen testified earlier in the day that although Stevens initially offered to pay him, Allen never sent
him an invoice, and Stevens never again offered to pay.
But he also testified that he thought Stevens wanted to pay. A,lfen said he remembered having a
conversation about the amount of work Veco had done on his house, as the two men were getting
into car outside the Double Musky Inn, the restaurant in Girdwood owned by Persons. "He
said, 'I know you're putting more work in there than what you're saying,' " Allen said.
Investigators had been recording Allen's conversations for some time as part of their
investigation, but he was not aware of it until Aug. 30, 2006, when the FBI searched his home and
office and accused him of bribing state lawmakers. Allen agreed to cooperate with prosecutors and
record some conversations with Stevens.'Some of those were played during Monday's testimony.
The prosecution is expected to wrap up its case Wednesday, when the judge overseeing the'case
will also hear a motion by Stevens' legal team for a mistrial.
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Stevens jury hears of plot
to hide bills
STEVENS TRIAL: Senator's friends tried to cover
up plumbing
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October Stll, 2008 12:38 AM
Modified: October 8th, 2008 11:49 AM.
WASHINGTON -- Two of Sen. Ted Stevens' best friends went
into a panic in 2006 when they learned a plumber had mailed
a bill showing that one of them --Veco Corp. chief executive
Bill Allen -- had paid more than $1,000 of his own money to fix
Stevens' boiler.
more
JOSELUIS MAGNA/. The Associated Press
Sen. Ted Stevens, R-Alaska, and his daughter
Beth Stevens arrive at the U.S. District Court in
Washington Oct. 7, 2008.
Sell it tod.
Advanced se
"We need to get the guy at Chugach Sewer & Drain to make
that disappear from his records," Persons told Allen. Then,
Persons said, working out the plot as he spoke, Allen should
get Stevens to write a check to him for the exact amount.
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The Feb. 16, 2006, telephone
conversation between Allen and
Double Musky owner Bob Persons,
intercepted in an FB! wir.etap an.d
played in court Tuesday, unveiled
the two men plotting a cover-up of
the plumber's honest transgression
-- a scheme to first destroy the "
evidence, then create a cover story
that would have reqUired Stevens'
participation.
Document exhibits
Letters, legal documents. etc, submitted as
evidence.
Exhibits from 10/20
Related Stories
Consulting fees paid to Stevens' son
questioned
Stevens evidence on tape played ,for jury
Defense renews its bid to dismiss Stevens
trial FBI - Stevens-2152
'partial transcripts of evidence on tape
Related Links
"You don't have to cash it -- just have it," Persons said. "You
don't have to deposit it, just have to make a copy of it..... And
then if it ever did come up, you can say, 'I didn't deposit that?
Hell, I know I did. I don't know where it went.' " Both men
broke out in laughter at the thought of fooling a newspaper
reporter or government investigator.
Jurors laughed too -- but it was like the last laugh at two men
caught in the act.
'g55
Alaska Politics 810g: First defense
witness - Colin, P.owell - .
Photos: Exhibits submitted as evidence
The. Ted Stevens investigation
Complete Alaska election coverage
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Photos: Historical photos of Sen. Ted
Stevens
PDF: Telephone evidence graphic
listen to wiretaps played (or jury Tuesday
{ql-{A-""J>;IIJ- C;'6;o-..¥\
There-was no presented thQevEms ever wrote the
check, but the two friends expressed no doubts he
would if asked.
The phone call was the closest thing so far to a smoking g.un in
Stevens' felony trial. It closed out the seventh day of
testimony, giving jurors something to think about overnight as
the government neared the conclusion of its case. Prosecutors
may present the last of their witnesses today.
Stevens is accused of seven counts of failing to disclose more
than $250,000 in gifts and favors, mainly from Allen and his
Anchorage-based oil-field service company, Veco.
DEFENSE CROSS-E>sAMINES ALLEN
o
Listen to Allen-Stevens phone calls, with
transcripts .
Related Audio Content
More Sen. Ted Stevens stories»
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Which Stevens will jurors judge?
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Testimony ends in Stevens
Earlier Tuesday, Brendan Sullivan, Stevens' lead defense attorney, continued to tear into the
goverr:lment's case as he cross-examined Allen, who has already pleaded guilty to bribing state
lawmakers in Alaska. Sullivan worked to leave jurors with the impression that Allen deliberately
held back information from Stevens about bills, and that the senator would have paid them had he
,ever been sent an invoice.
Sullivan also sought to dismiss the idea that Veco got special benefits when came to the
company's defense over a pipeline in Pakistan, a labor training program for Russians, a logistics
contract with the National Science.Foundation and support for a proposed natural gas pipeline.
Sullivan on Tuesday questioned Allen about his plea deal with the goyernment and the risk his
non-cooperation would be to the sale of Veco last year to CH2M Hill, the international engineering
and construdion firm based in Colorado. The company withheld $76 million from the cash it paid
the owners of Veco -- Allen, his three children, and two top executives -- to protect against
contingencies, including the possibility Veco itself would be indicted.
At one point, Sullivan all but accused Allen of lying on the witness stand about a remark Allen
attributed to Persons. That came in testimony last week, when Allen told of receiving a handwritten
note from Stevens in 2002 thanking him for renovating his home in Girdwood.
In'that note, Stevens told Allen he wanted a bill for all of Veco's work. But Stevens also advised
Allen to talk about the bill with Persons, neighbor who has looked after Stevens' home for years.
When Allen did, he testified, Persons told him: "Don't worry about getting a bill -- Ted's just
covering his ass."
The phone call four years later between Allen and Persons did nothing to discredit Allen's
testimony.
FBI - Stevens-2153
By February 2006, the FBI was deep in its investigation of public corruption in A'iaska, though
,nothing had surfaced pUblicly yet. The government had obtained warrants for all of Allen's
phones and had been listening for months when the plumbing bill came up.
,PLUMBING PROBLEM
In earlier testimony, Veco electrician Jack Billings said he had gotten'called one evening to
Stevens' home in Girdwood over a failure of the heating system. Stevens and Allen were there
when he arrived from Anchorage:
Billings said he soon figured it was a plumbing problem, not elec rical. It was late to call someone,
but Allen told Billings to call his plumber: Charlie Hart of Chug h Sewer & Drain of Anchorage.
Hart·didn't sl'ecializein he figured the was the boiler's circulC!ting He
but put the new one in Oard. 0
a call later -- it was Bill Allen. We didn't help anything -- i,t made the situation worse,!'
Billings testified Sept. 30. Stevens had a fireplace to keep warm, and they decided to Hart
back on a non-overtime basis.
Hart, testifying Tuesday after Allen, said he reinstalled the pump and put in a new pressure tank
and other parts. At Allen's request, he sent the $1,118 bill for the parts to Stevens by way of
Persons. He sent the $1,089 bill for labor and travel time to Allen at his Veco office.
The labor bill falsely listed the job site as 1644 W. 11th Ave in Anchorage -- Allen's home. The
parts bill sent to Stevens had this notation: "Repair Materials for Heating System. Labor paid by
Bill."
INTERCEPTED PHONE CALLS
Three intercepted calls were played to the jury Tuesday, all of them related to bill.
On Feb. 2, 2006, Allen spoke to Persons and told him how he had split the bill and planned to take
care of the labor himself. In the same call, Persons discussed how famously tight Stevens was with
his money, referring to something he heard from Stevens' wife, Catherine.
"As Catherine says, Ted.gets hysterical when he has to spend his own money," Persons said. "The
flip side of it is, he can't really afford to pay a bunch of money."
Two weeks later, Allen got a call from his secretary, Linda Croft. She said that Stevens had sent
him an e-mail saying he just got his bill for parts from Chugach Sewer & Drain. "It says 'Labor paid
by Bill,'" SteVens wrote. "I should pay those plumbers. Please have someone send me a bill."
Wnen Allen spoke with Persons .Iater that day, .he told him about the e-mail.
"I faxed him a bill," Persons said. "Isn't that what you wanted .me to do?"
"What did it say about me doing it?" Allen asked.
"It doesn't say anything," said.. But then he decided to take another look at the bill.
"Oh s---, I didn't even see this. Oh, 'Labor paid by Bill.' Ouch. I didn't see that. I'm sorry," Persons
said. At least it went straight to Stevens' house and wasn't seen by anyone else, Persons said.
But Allen's secretary knew, and so did the plumber, the men realized.
"We don't need this thing floatIng around," Persons said. "You tell that guy that he needs to, if he's
got this bill in a file that he needs to get rid of it."
Only briefly did the two men discuss getting Stevens to actually reimburse Allen for that $1,080 he
paid. Rather, they decided to just tell Hart, plumber, that happened. FBI - Stevens-2154
"Make him understand that Ted's paying for everything," Persons said. "That's the safest thing,
Bill."
That's when Persons came up with the phony check idea.
"Have Ted write you a check for that," Persons said.
"Huh?" said Allen.
"To have Ted write you a check for that. You don't have to cash it -- just have it."
"Yeah. Yeah," said Allen.
-

- ------------
if it ever cOf!les up, say seQyou, here's the check," Persons said. 0-
.." p' .
"That's the thing to do it, right there:
"
"I'll call 'red and tell him, send you a check," Persons said.
The is expected to wrap up its case today, when the judge overseeing the trial will
hear a motion by Stevens' legal team for a mistrial.
Contacfthe reporters: rmauer@adn.com and ebolstad@adn.com.
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JOSELUIS MAGt{AI Tl)e Msocil.)ted Press
Sen. Ted Stevens, R-Alaska, and his daughter
Beth'Stevens arrive at the U.S. District Court in
Washington Oct. 7. 2008.
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Jurors will be told to disregard
evidence they've seen concerning
how much time two Veco Corp.
workers, Robert "Rocky" Williams
and Dave Anderson, spent
Stevens' home in
G,irdwood in 2000 and 2001. They'll
also be told that prosecutors knew
the hours Anderson said he worked
could be inaccurate and yet still
presented it to the jUry as part of
the $188,000 total that Veco accounting ,records show the oil
field services company spent on the Stevens remodel. .
Stevens, 84, is on trial for seven counts of filing false
statements on the financial disclosure forms he's required to
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
Published: October 8th, 2008 04:10 PM
Last Modified: October 8th, 200804:11 PM,
"It's very troubling that the government would utilize records
the government knows were fa.lse," said Judge Emmet Sullivan
said. "And ,there's just no excuse fqr that whatsoever."
Judge Sullivan made his ruling immediately after a
hearing on a motion tq throw out the case or declare a mistrial
-- the fourth such move DY Slevens' Washington, D.C.-based
team. Prosecutors had just,presented their final
witness, an FBI agent who walked jurors through dozens of e-
mails showing Stevens' awareness of the progress and the
extent of the home repairs to his so-called chalet'in the ski
town.
Judge li-:nits evidence,
won't
WASHINGTON - The corruption case against Sen. Ted Stevens
suffered a blow to its credibility this afternoon when a federal
judge ruled that prosecutors erred and jurors won't be abl.e to
consider crucial about the time two workers spent
his house.
Photos: EXhiOubmitted as evidence
Alaska Politics Blog: First defense
witness - Colin Powell
Judge sends Stevens jurors home for day
Stevens gets help from some, friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
More Sen. Ted Stevens stories»
Related Audio Content
submit each as a U.S. senator. Republican is
accused of more than in gifts and home
repaifs, mostly from Veco and its chief executive, Stevens
i
former <;!9se friend Bill Allen.

Stevens' team, led by Brendan Sullivan, filed its motion fate
Sunday after tney had the opportunity to review more than
300 FBI interview reports and 83 grand jury transcripts the
judge ordered government lawyers to turn over.
The defense team got those documents last week after Judge
Sullivan ruled prosecutors had dragged their feet in tUrl!ing
over evidence that might be helpful to Stevens' case. That
evidence included statements by Anderson that he thought
Stevens would have paid bills for repairs - had he ever been given an invoice.
"This is a criminal case with a career on the line, and the court lias responsibilities, the defense has
responsibilities, the government has responsibilities," said one of Stevens' lawyers, Robert Cary.
"Time and time and time again the government has not lived up to them."
The documents the defense, team received last week typically aren't turned over in their entirety to
defendants, but, skeptical that the government had turned over everything, Judge Sullivan had
prosecutors send them to Stevens' lawyers. The evidence showed that Anderson testified during a
grand jury that he was in Portland, Ore., at the end of 2000, even though he submitted timesheets
to Veco for work in Alaska on the Stevens place at the same time.
That chips away at the goverlJment claim that Veco spent $188,000 on Stevens' home, Stevens'
lawyers argued. The $188,006 figure was one of the first numbers jurors saw, when a Veco'
bookkeep,er testifiedin excruciating detail in the opening days 9f the trial about the total.expenses
the company's records showed had been spent on Stevens' home.
Prosecutors argued that they didn't think the Anderson time was an issue because there was a
whole list of -- many of whom have testified during the trial about the work they did at
Stevens' home - whose time wasn't reflected in the spreadsheet explained by the Veco
bookkeeper.
"There was a significant amount of time that Veco put in that never got put on that
said Nicholas Marsh of the Justice Department's Public Integrity unit. "There's a ton of Mr.
AlJderson's time that never got put on that spreadsheet."
'But Judge Sullivan was especially incredulous that Marsh sat in on Anderson's ,grand jury testimony
two years ago and heard him say he wasn't in Alaska yet still presented the worker's timesheets as
accurate to jurors in the opening days of the trial
"We didn't look at the case that way," Marsh said as he explained his theory that there were
countless hours of work not reflected on the Veco spreadsheet. "I'm being very truthful." FBI - Stevens-2157
"You closed your eyes then," Judge Sullivan said. "You had tO,have closed your eyes to that
testimony. Someone on that team knew Anderson wasn't in Alaska, he was in Portland. Someone
on that team had an obligation to say, 'Something smells here.' "
It is the third major misstep by prosecutors, although it is only the first that will be evident to
jurors. Prosecutors were chided previously by the judge for sending Williams home to Alaska
without telling anyone. Williams, who was so ill that prosecutors were concerned for his life, wasn't
used as a prosecution witness although other witnesses have mentioned his name repeatedly.
Although the judge's ruling leaves the government's case against Stevens intact, jurors will be told
to disregard evidence because prosecutors failed in their obligation to disclose crucial information
to the defense team.
_________-=....0= - -,- -
In addition'to the warning about theOounting records, be given a secorOstruction to
disre9ard all regarding an automobile"trade Stevens made with Allen. Judge Sullivan
decided to strike that evidence after Stevens' lawyers complained yesterday they were never
" shown a check that shows Allen paid $44,000 for a Land Rover. The SUV was traded to Stevens,
who gave it to his daughter, for the senator's 1964V2 Mustang and $5,000.
Stevens' team spent substantial time this week trying to provethat Allen didn't actually pay
$44,000 on the car but failed to land a "gotcha" moment because prosecutors came forward with a
cancelled checl< that showed he had paid that much for it. Angered, they filed their fourth motion
for a mistrial.
They should have been shown the check, Judge Sullivan agreed. He said he was surprised
prosecutors never entered it as evidence, since it could have boosted the credibility of Allen's
testimony.
Allen has already pleaded guilty to bribing state lawmakers in Alaska and is cooperating with the
government in exchange for leniency in his own sentencing.
The chief Justice Department prosecutor in the case, Brenda M()rris, told the judge that the swift-
moving nature of this trial was bound to lead to snags in turning over information to the defense.
Stevens, who has held office since 1968, is up for a difficult re-election bid and asked for a speedy
trial so he could have a verdict before voters make their decision about his future on Nov. 4.
But Judge Sullivan said speed was no excuse.
"It's not about the pace of litigation, it's about the fairness of the proceedings," he said. "We, don't
sacrifice fairness for expedience."
AOVERTISI;MENT
FBI - Stevens-21S8
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lUIS MAGANAI Tile Associated Press
Sen. Ted Stevens, R-Alaska. takes a walk Oct. 8,
2008, during abreak at U.S. District Court in
WaShington. D.C.
I Exhibits ffom 10/20
'Document exhibits
Letters, legal documents, etc. submitted as
evidence.
.'
Jurors will be to disregard
evidence they've seen concerning
how m'uch two Veco Corp.
workers, Robert "Rocky" Williams·
and Dave Anderson, spent
remodeling Stevens' Girdwood
residence in 2000 and 2001.
. =====
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They'll also be told that prosecutors
,knew that hours Anderson worked
were inappropriately calculated in
the $180,000 total that Veco accounting records' show the oil
field services company spent on the Stevens remodel.
"It's very troubling that the government would utilize records
the government knows were false;" said Judge Emmet
Sullivan. "And there's just no excuse for that
Judge tosses out -evjdence
in Stevens trial
WASHINGTON -- p,.rosecutors in the corruption case against
Sen. Ted Stevens suffered a blow to their credibility
WednesdaY.when a federal judge said their error required,him
to throw out some crucial evidence about the time two workers
spent renovating Stevens' house.
Photos: Exhibits submitted as evidence
The. Ted Stevens investigation
Complete Alaska election coverage
Photos: Sen. Ted Stevens gallery
Photos: Historical photos of Sen. Ted
.Stevens .
PDF: Telephone evidence graphic
Hours after Sullivan's filed asking, F:ees paid,to,Ben.Stevens questioned by.
____v_ec_.o
- - --
Sullivan made his ruling right after a
hearing on a motion to throw out the case or declare a mistrial
-- the fourth such move by Stevens' Washington
defense team. Prosecutors had just presented their final
scheduled witness, an FBI agent who walked jurors through
dozens of e-mails showing Stevens' awareness of the progress
and the extent of the Girdwood home remodeling.
Sullivan says government knew timesheets
were wrong but still tried to use them
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
Published: October 9th, 2008 01:08 AM
Last Modified: October 9th, 2008 12:18 AM
him saying they couldf"\another witness -- a
Veco foreman -- who would clarify worked on the
'
job. they didn't name the witness, but they had originally
announced Williams, a foreman, would testify for the
government, but then sent him back to Alaska, saying he was
suffering from health issues.
Listen AllenOens phone calls, with
transcripts
Listen to wiretaps played for Jury Tuesday
Related Audio Content
More Sen. Ted Stevens stories »
Judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
DISCREPANCIES IN EVIDENCE
Stevens, 84, is on trial for seven counts of filing false
statements on the financial disclosure forms he's required to
submit each year as a U.S. senator. The Alaska Republican is accused of accepting more than
$250,000 in gifts and home repairs, mostly from Veco and its chief executive, Stevens' former
close friend, Bill Allen..
In that motion, the government also asked Sullivan·to not
point fingers at the government)n front of the jury.
Stevens' lawyers, lea by Brendan Sullivan, filed its motion Sunday night after they reviewed more
than 300 FBI interview reports and 83 grand jury transcripts the judge ordered government
lawyers to turn over. •
The defense team got those documents last week after Judge Sullivan ruled prosecutors had
their feet on turning over evidence that might be helpful to Stevens' case. That evidence
included statements by Allen that he thought Stevens would have bills for repairs had he ever
been given an invoice.
This is a criminal case with a (Senate) career on the line, and the court has responsibilities, the
defensehas'responsibilities, the government has responsibilities," said one of Stevens··lawyers,
Robert Cary. "Time and time and time again the government has not lived up to them."
The documents the defense team received last week typically aren't turned over in their entirety to
defendants, but skeptical that the government had turned over everything, Judge Sullivan had
prosecutors send them to Stevens' lawyers. The evidence showed that Anderson testified to a
grand jury that he was in Portland, Ore., at the end of 2000, even though he submitted timesheets
to Veco for work in Alaska on Stevens place at the.same time.
That chips away at the government claim that Veco spent $188,000 on Stevens' home, Stevens'
lawyers argued. The $188,000 figure was one of the first numbers jurors sC!w, when a Veco
bookkeeper testified in excruciating detail in the opening days of the trial about the total expenses
the company's records showed had been spent on Stevens' home.
Prosecutors argued that they didn't think the Anderson time was an issue because there was a
whole list of tradesman -- many of w'1om have testified during the trial al,>out the work they did at
Stevens' home.-- whose time wasn't reflected in the spreadsheet created by the Veco tiookkeeper.
"There was a significant amount of time that Veco put in that never got on that Stevens-2160
said Nicholas Marsh of the Justice Department's Public Integrity unit. "There's a ton of Mr.
Anderson's time that never got put on that spreadsheet."
But Judge Sullivan was especially incredulous that Marsh sat in on Anderson's grand jury testimony
two years ago and heard Anderson say he wasn't in Alaska, and yet still presented the worker's
time sheets as aq:urate to jurors.
"We didn't look at the case that way," Marsh said, as he explained his theory that there were
countless hours of work not reflected on the Veco spreadsheet, and that prosecutors never
vouched that the summary was anything more than a Veco business record. "I'm being very
truthful."
"You closed your eyes Judge Sullivan said;'''You had to nave Closed your eyes to that
--,------=-_.. '-'- ..-._-_.- -
testimo,Qy. Someone on _that team kOnderson wasn't in Alaska, he in Someone-
Q!"l that team had an obligation to say something smells here.' " -
--
• .r
VEHICLE SWAP OFF LIMITS
The judge's ruling Wed-nesday represented the third major misstep by prosecutors, although it's
only the first that will be evident to jurors. Prosecutors were chided previously by the judge for
sending Williams home to Alaska without telling anyone. Williams, who was so ill that prosecutors
were concerned for his life, wasn't used as a witness although other witnesses have
mentioned his so frequently -- and positively -- that jurors may think they know him.
Although the judge's ruling leaves the government's case against Stevens intact, jurors will be told
to disregard evidence because prosecu'tors failed in their obligation to disclose crucial information
to the defense team.
In addition to the warning about the accounting records, they'll be given a second instruction to
disregard all evidence regarding al"l automobile trade Stevens made with Allen. Judge Sullivan
decided to strike that evidence after Stevens' lawyers complained on Tuesday that they were never
shown a check that shows Allen paid $44,000 for a Land Rover. The SUV was traded to Stevens,
who gave it to his daughter, for the senator's rare 1,964 112 Mustang and $5,000.
Stevens' spent substantial time this week trying to prove that Allen didn't actually pay
$44,009 for the SUV, introducing the window sticker with a price of about $42,125 and a dealer
invoice for much less. But they failed to land a "gotcha" moment because prosecutors came
forward with a cancelled check that showed that with dealer preparation and other charges, Allen
actually paid $44,339.51. Angered, they filed their fourth motion for a mistrial.
Stevens' lawyers should have been shown the check as soon as the government knew about it,
JUdge Sullivan agreed. He said he was surprised prosecutors never entered it as evide,nce, it
could have boosted the credibility of Allen's testimony. Allen has already pleaded guilty to bribing
state lawmakers in Alaska and is cooperating with the government in exchange for leniency in his
own sentencing.
The chief Justice Department prosecutor in the case, Morris, told the judge that the swift-
moving nature of this trial was bound to lead to some snags in turning over information to the
defense. Stevens, who has held office since 1968, is up for a difficult bid and asked for
a speedy trial so he could have a verdict before voters f'!"lake their decision about his future on
Nov. 4.
But Judge Sullivan said speed was no excuse.
"It's not about the pace of litigation, it's about, the fairness of the proceedings," he .. "We don't
sacrifice fairness for expedience."
Contact the reporters:. rmauer@adn.com and ebolstad@adn.com.
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By E;RIKA BOLSTAD and RICHARD M{\UER
Anchorage Daily News
Published: October 9th, 2008 02:50 PM
Last ,Modified: October 9th, 2008 02:50 PM
Inouye tells jury he has
'absolute faith' in Stevens
Sell it tod;
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more
Jose Luis Magana-I Associated Press
Sen. Ted Stevens, R-Alaska, and his daughter
Beth Stevens, arrive at federal court in
Washington. Thursday Oct. 9, 2008.
, 'Document exhibits
Letters. legal gocumenls. etc. submitted as
evidence.
Sen. Daniel Inou Hal(laii, the
firs e ense w' ess in Stevens'
corruption tria, told jurors that
fellow senators have "absolute
faith" in the 84-year-old. The two
.have been friends since Stevens
,entered the Senate in 1968,
testified, and are so close that
Stevens' youngest daughter, Lily,
calls him 'Uncle Dan.' "
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WASHINGTON - One of Sen. Ted Stevens' oldest friends and
peers, a fellow World War II veteran and senator, led the
charge today to defend the Alaska Republican's character and
integrity.
"I can assure that his word is good. As far as I'm concerned,
it's good enough to take to the bank," he said of Stevens,
whose friendship is such that the two call each other "brother."
With Inouye,'Stevens' legal team began its defense, calling
witnesses who are famous, such as former Secretary of State
Colin Powell, and many who are,famous in Alaska, such as
David Monson, widower of Iditarod champion Susan Butcher.
Related Stories
JUdge tosses out evidence in Stevens trial
Partial transcripts of evidence on tape
Defense renews its bid to djswJss Stevens 2162
trial t'tH - ::>tevens-
Stevens evidence (;10 tape played for jUry
E-mails kept Stevens informed of progress
Powell, referred to by the judge as Powell," will
testify Friday afternoon. He is among about 10 character
witnesses who Stevens' lawyers hope to introduce, but the
judge is likely to limit them to three or so.
Stevens is charged with seven counts of filing false statements
on the financial disclosure forms he's required to-submit each
as a U.S. senator. He's accused of accepting more than
$250,000 in gifts and home repairs, mostly from Veco and· Its
former executive, once a friend of Stevens and
Related Links
Alaska Politics blog: A look at the
Stevens defense witnesses
Listen to wiretaps played for jury Tuesday
Listen to Allen-Stevens phone calls, with
transcripts
Fees paid to Ben _Stevens Questioned by
Veco execs
PDF: eVidence graphic,
.Photos: Historical photos of Sen. Ted
fer '(,.q--kAl- (:) bfjo-
th.-: star in the against 0
lawyers began to chip away at evidence prosecution
witnesses have.presented about gifts the senator is alleged to
have received over the years. This afternoon, they zeroed in
on a sled dog' Stevens' frjends bought him for $1,000 at the
Kenai Classic auction in
Early in the trial, -Sullivan told how Stevens got one of the
dogs at-an auction and was so smitten with the puppy that he
bought. another one for about $250. But the dogs were t.oo
much of a handful for Stevens in Washington, D.C., and he
al'!d his wife decided to send them back to 'Alaska, where
Monson and Butcher cared for them. Stevens and his wife sent
two $500 checks for the dogs' care.
Stevens 0
Photos: Sen., Ted Stevens gallery
Photos: Exhibits submitted as evidence
The Ted Stevens investigatron
Complete Alaska
Related Audio Content
More Sen. Ted Stevens stories »
Judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
FBI - Stevens-2163
In an e-mail read Wednesday in court, Stevens haggled with his friend Bob Penney over how much
to value the dog on his financial disclosure paperwork, calling it a "GO disclosure form."
The dog sold at the auction was nearly worthless as a sled dog, testified kennel owner and Iditarod
champion Dean Osmar. He gave it to his friend, James Var:sos, the Alaska singer known as Hobo
Jim, to offer up at the auction, an annual charity fundraiser attended by political bigwigs.
"I think most people went home with things they didn't really want," Varsos said of the auction.
Prosecutors rested their case earlier in the day, with one witness. U.S. District Judge Emmet
Sullivan decided to allow prosecutors to call David Anderson, a former welder who worked for Ve,co
Corp. and-supervised repairs that nearly doubled the size of Stevens' home if) Girdwood.
Anderson, who is' Allen's nephew, wasn:t scheduled to testify. But prosecutors, asked to allow him
after the judge overseeing the case determined that some of the evidence they presented about
Anderson's time on the project might have been inaccurate.
Stevens' defense team asked for a mistrial late Sunday, after they had the opportunity to review
more than 300 FBI interview reports and 83 grand jury transcriptS-the judge ordered government
lawyers to turn over. The team got those [lJleg
prosecutors Iiad cragged-their feet on turning over evldenc-e that might be helpful to Ste'lens'
case. That evidence included statements by Allen that he thoug'ht paid bills for
repairs had he ever been given an invoice.
The evidence showed that Anderson testified to a grand jury that he was in Portland, Ore., at the
end of 2000, even though he. submitted timesheets.to Veco for work in Alaska on the Stevens
place at the same time;
Incensed, Sullivan on Wednesday punished prosecutors by ordering that- jurors disregard the
testimony from a Veco bookkeeper about Anderson's time.
Jurors also were told to disregard evidence they've seen concerning how much time Veco
employee Robert "Rocky" Williams spent remodeling Stevens' home. They'll also be toid that
prosecutors knew the hours Anderson said he worked could be inaccurate and yet.still presented it
to the jury as part of the $188,000 total thafVeco accoUnting records show the oilfield-services
company spent on the Stevens remodel.
To compensate for the loss of evidence, prosecutors asked Thursday morning whether they could
have Anderson testify. Judge Sullivan gav'e areluctant OK over the objections of Stevens' legal
,team.
"They were sanctioned for their conduct," said one of Stevens' lawyers, Robe'rt Cary. "Reverse,
rewind and like it nev.er happened. We all understood that this was This is an
·afterthought; it's an-attempt to pretend that-a' serious constitutional-error.never happ"ehed:"
argued that AndersOtestimOny will "provide the jury, the paCand the court
Wi}ll' an alternative to sole reliance on any Veco" records. They also argued it was even more fair to
because his attorneys would have an opportunity to cross-examine Anderson and show
jurors how he may have misled his bosses about the time he spent on the Girdwood renovations.
Anderson began his testimony midmorning Thursday. He testifie(j he was working as much as 10
hours a day, six days a week, travel time and stuff," Anderson said. So was Williams, he
said.
Anderson detailed the work 'he and Williams did on the including jacking it up to add a
bottom story.

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Sen. Inouye. testifies for his
friend
STEVENS TRIAL: He says Alaska senator's word
can be "taken to the bank."
By BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October 10th, 2008 03:00 AM
Last Modified: October 10th, 2008 05:04 AM
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I Exhibits from 10/20
E-mails kept Stevens informed of progress
Stevens evidence on tape played for jury
Defense renews its bid to dismiss Stevens
trial
Partial transcripts of evidence on tape
judge tosses out evidence in Stevens trial
Complete Alaskaoelection coverage_
Photos: Exhibits submitted as evidence
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Stevens
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JOSE; LUIS MAGANA{The AssociatedPress
Sen. Daniel Inouye. D·HawaH, appeared
Thursday as a defense witness fOf Sen. Ted
$levens.
Document exhibits
legal documenls. elc. submitted as
evidence.
Related Links
WASHINGTON -- The Hawaii Democrat whom Sen. Ted
Stevens calls his "brother" opened the charge Thursday in
defense of the Alaska Republican's character, and integrity.
Sen, Daniel Inouye, the first
defense witness in Stevens'
corruption trial and one of the few
sitting senators to have served
longer than Stevens, told jurors
that fe!low.senators have. "absqlute
faith" in his 84-year-old RepUblican
friend. The two World War II
veterans met when Stevens entered
the Senate In 1968 and discovered
they had many bonds, Inouye
testified. They are so close that Stevens' youngest daughter,
Lily, calls him "Uncle Dan:"
"I can assure that his word is good, as far as I'm concerned,
it's good enough to take to the bank," .lie said of Stevens.
"I'm not inclined to respond to a hypothetical question,"
Inouye said. "I don't operate that, way -- the people I meet
have substance."
Under cross examination, Inouye refused to be drawn into a
conversation about what he would think if he learned a person
he had met had told a lie l!nder oath.
With Inouye, Stevens' legal team began its defense. Today,
,they plan to call another famous character witness, former
Secretary of State Colin Powell. Following Inouye on Thursday
were witnesses with some celebrity among Alaskans"like
musher David Monson, the widower champion
Susan Butcher, and the balladeer
,v
Powcll and Inouye are among at least 10 witnesses
that Stevens' lawyers said they hoped to introduce, but U.S.
DistriCt Court Judge Emmet Sullivan said that many would be
redundant. Most trial courts don't allow more than three,
government lawyers argued,·though judge Sullivan said he
might allow as many as five. •
In eliciting testimony from a friendly defense attorney
Brendan Sullivan was engaged in a much different encounter
with Inouye than the one Sullivan is famous for.
Listen to for jury
Alaska Politics blog: A look at the
Stevens defense witnesses
The Ted Stevens investigation
Related Audio Content
More Sen. Ted Stevens stories»
Judge sends Stevens jurors home for day
.Stevens gets help from some friends
Which Stevens wiJrjurors
Stevens' defense rests
Testimony ends in Stevens trial
In the 1987 Iran-Contra hearings, Inouye was the' committee
chairman and Sullivan was the attorney for Olliver North, one of the kElY targets of the
congressional investigation. Tired of hearing Sullivan answering for North, Inouye said that maybe
the'witness should speak for himself.
"Well, sir. I'm not a potted plant," Sullivan replied. "I'm here as the lawyer. That's my job.':
SlED DOG'S WORTH
is. charged with seven counts of filing false statements on financial disclosure forms he's
required to submit each year as a U.S. senator -- each amounting to a lie,on an oath signed with
his own hand, said Nicholas Marsh, a trial attorney with the Justice Department's Public Integrity
.Section.
• Stevens is accused of accepting more than $250,000.in gifts and repairs, mQstly (rom.the
defunct oil-field service company Veco and its former chief executive, Bill Allen, once a friend of
Stevens and the star witness in the case against him.
Stevens' lawyers began to chip away at evidence prosecution witnesses have presented gifts
the senator is alleged to have received over the years. Thursday afternoon, they zeroed in on a
dog bo.ught for $1,000 at a 2003 auction.
In his opening statements to the jury, E!rel)Jtan told how Stevens got orie of the dog's at'an
auction arid was so smitten with the puppy that he bought another one for ab9ul: $250. But the
dogs were too much of a handful for Stevens in D.C:, and he and his wife decided to
send them back to Alaska, where Monson and Butcher cared for them. Stevens and his wife sent
two $500 checks to Butcher for upkeep.
an e-mail read Wednesday in court during the government's case, Stevens haggled with his
friend, Penney, over h.ow much to value the dog on his financial disclosure paperwork, calling
it a "GO disclosure form." The e-mails showed Stevens attempting to change the way he got the
dog -- not as a $1,000 gift from Penney, the Anchorage real estate developer and sportfishing
advocate who bid on the dog, but as a gift from the Kenai River Sportfishing Association, which
Penney·founded. FBI - Stevens-2166
Long after he got the dog, Stevens asked Penney to turn his auction bid into a.donation to the
so that'the dog wouldn't appear to be as rriuch.
Hobo Jim -- James Varsos -- testified that well-to-do bidders at the association's annual Kenai
River Classic frequently bid up items out of all proportion because the money goes to charity.
Varsos said he has donated his own $60 hats to the auction and has seen them go for as
much as $450.
"I think most people went home with things they really want," Varsos said of the auction.
Varsos, who helpecrout"anhe'dassic for abounO years; pjcke<;l'up the puppy,thatwas eventually
.-="':::..c =========-=-o....c,--------,--
-----------
auctioned to Stevens from the ClamOh kennel of musher Dean Osmar, an IdOd champion.
. .
OSQ'lpr described the female as the "runt" of a litter who would normally be shunned by mus/lers
because it had blue eyes and white fur -- possible indicators of a genetic respiratory disease. It
might have been worth $50 or $100 as a pet, he testified, though he donated it to the association.
After acquiring the blue-eyed female, Stevens bought another puppy from Osmar for $250. It was
a better dog, he said. .
But Taz and Keely proved too big a handful for the Stevenses in Washington. They asked Monson
and Butcher for help.
"I agreed to take the sled dogs off their hands and take them back to Alaska," Monson testified.
VECO WELDER TESTIFIES
final prosecution witness took the stand Thursday morning, just before the government rested
its case against the Alaska Republican. David Anderson, a former welder who worked for Veco
Corp. and supervised repairs that nearly doubled the size of Stevens' home in Girdwood, "'!as not
originally announced as a witness in the government case, but the judge allowed his
Anderson, who is Allen's nephew, was called after prosecutors had some of their evidence ruled
inadmissible by Judge Sullivan.
Through a Veco account manager, the government presented evidence that Veco spent $188,000
on the Stevens remodel between 2000 and 2001.
But attorneys discovered in reviewing government evidence belatedly sent them that
within that account manager's total were-hours for Anderson an9 another Veco supervisor, Rocky
Williams, that were worked elsewhere.
Judge Sullivan said the government knew some those wages were inappropriately charged
internally to the,house project. As a sanction against the government, he told the jury to ignore
the entire costs attributed to Williams and Anderson in the account testimony.
., .
On the witness stand Thursday morn}ng, Anderson testified that he worked as much as 10 hours a
day, six days a week on the house project, So Qid Williams, he said.
Anderson detailed the work he and Williams did on the including jacking it up to add a
bottom story.
ContacUhe reporters: ebolstad@adn.com a_nd rmauer@adn;com.
ADVE_RTISEMENT
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WASHINGTON -- Colin Powell, the retired rm eneral and
former secretary of state, took the witne s stand Friday on
behalf of U.S.·Sen. Ted Stevens, raised nis right hand and
swore to tel,! the truth.
Powell testifie.s to Stevens'
high reputation
CHARACTER WITNESSES: All say senator is a
force for good.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily.News
Published: October 11th, 2008 04:16 AM
last Modified: October 11th, 2008 05:24 PM
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SUSAN WALSHI The Associated Press
Former Secretary of Stale Colio Powell leaves
federal court in Washiogton, Friday, Oct. 10.
2008, afler testifying althe corruption trial of Sen.
Ted Stevens, R·Alaska.
Document exhibits
Lellers, legal documents, elc. submilled as
evidence.
Related Stories
"Gen. Powell, good afternoon," U.S.
District Judge Emmet Sullivan said
to the biggest celebrity to testify as
a character witness for Stevens, on
trial on felony discJ()sure
"Sorry to keep you waiting
yesterday."
"It's all right, Your Honor," Powell
said. •
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Speaking in a courtroom suddenly
packed with spectators and to jurors leaning forward in their
seats, Powell recounted his long career, ending with his
"dabbl,ing in diplomacy," as he self-deprecatingly described his
four years as secretary of state.
Sen. Inouye testifies for his friend
E-malls kept Stevens informed of progress
Stevens evidence on tape played for jury
Partial transcripts of evidence on tape
JUdge tosses out eVidence in Stevens trial
FBI - Stevens-2168
He then turned to Stevens, whom he has known for 2S years.
Powell described Stevens as a "trusted individual" and a man
with a "sterling" reputation.
"He was someone whose word you-could rely on," said Powell.
Stevens was honest with him, he said, whether the news was
good or bad.
"He would tell me when I had no clothes on -- figuratively, I
mean -- and he would tell me when I was right and should go
Related Links
Photos: Historical photos of Sen. Ted
Stevens - - . -
PDF: Telephone evidence graphic
Fees paid to Ben Stevens questioned by
Veco execs
Listen to Allen-Stevens phone calls, with
transcripts
Alaska Politics blog: A look at the
Stevens defense witnesses
Photos: Exhibits submitted as evidence
- ..
{9'1A- -.-rtv'
,tor "He's a guy who,Qe said in the ir:lfantry,
*e would take-on a long pa'trol."
.o?
was always a strong advocate' for basing soldiers 'and
military aircraft in Alaska, but when the Cold War ended and
the Defense Department decided to cut military spending by
25 percent, Stevens agreed that Alaska should share in the
pain of base closures, he said.
"He fights for his state ,but he also has the best interest of the
country at ,
The Ted SteveOvestigatiOn
Related Audio Content
More Sen. Ted Stevens stories»
judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Steven,s will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
FBl- Stevens-2169
Stevens, on trial for lying about gifts on financial disclosure forms, has the right during the defense
portion of the trial to ask character witnesses to speak on behalf of his "truthfulness and
The first such character Witness, Sen. Daniel Inouye, D-Hawaii, spoke Thursday. Three others are
set to testify on Stevens' behalf, but the defense's wish to call Sen. Ted Kennedy was derailed by
Kennedy's in his fight against brain tumor.
,Under cross examinatio,n, Powell said he had never been to Girdwood and has no independent
knowledge of the charges Stevens faces.
Stevens, 84, faces charges of failing to disclose more than $250,000 in gifts between 1999 and
2006. Most of that total is related to a major renovation project that'doubled the size of Stevens'
home in Girdwood, with much of the work allegedly done for free by an oil-field company
run' by Stevens' friend Bill Allen.
Julie Kitka, the of the Alaska Federation of Natives, testified as someone who was
familiar with Stevens' work in Alaska on behalf of Natives.
" The AFN represents some of Alaska's biggest and most powerful corporations, like Cook Inlet
Region Inc. and Arctic Regional Corp., have b,enefitted from special legislation by
Stevens. But when Kitka turned to the jury to describe the AFN" she said it was "something like the
NAACP," the civil rights organization.
The jury also heard several Alaskans who nave had P9sitive encounters with Stevens,
over the 'years, including a pediatric physician at the Alaska Native Medical Center in Anchorage,
Dani·Bowman. Stevens was in-sti'umental'iri arranging,im evacuation for aSicl< baby who
needed emergency treatment not available in Alaska, Bowman said.
"He didn't Ifsten to the rest of the question, he said, 'Yes I'll help you,' " she said, choking up with
emotion. "It was beautiful."
Two former heads of the Alaska AFL-CIO, Mano Frey and Jim Sampson, testified that Stevens also
was in requiring that union labor be used in big proposed projects like the gas
pipeline or drilling in Arctic National Wildlife Refuge. The oil industry and especially nonunion
Veco opposed such project labor agreements, Sampson testified.
That defense evidence was used to counter prosecution assertions that Stevens took up Veco's
agenda in Washington because of gifts he received.
-The team also called a private-real estateappraiser'and,two-assessors'from the
Municipality of Anchorage to testify on the value of the Veco addition to Stevens' home.
The city's valuation jumped $104,800 from·2001 to 2002 when the city took into account the
said municipal assessor Marty McGee.
That's less than athird of the cost of the actual work, according to earlier testilJlony. Stevens
himself paid about $160,000, and Veco spent about $180,00'0. .
1'4_cGe.e said ris figureswere,based on,an_i1ispection of.only fhe outside,of the,house,:and,he
under cross-examinatf"\hat city records apparently missed one r'\-oom that was
The cit.y's value is on the property could be expected to seli what it cost
to said.
.
"A lot of times it costs a whole lot more to do the renovation work?" asked prosecutor Nicholas
Marsh.
, "That's possible," McGee said.
eThe judge earlier rejected a defense theory Stevens would have received a benefit from Veco's
work only if it raised the appraised value of the Girdwood home. His lawyers have argued that the
value is zero under that theory.
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When asked outside of the courtroom after. his testimony
whether Stevens asked him personally to testify to his
rec?1I if it was
WASHINGTON - One of the nation's best-known retired Army
generals, Colin Powell, described Sen. Ted Stevens in court
today as a "trusted .individual" and a man with a "sterling"
reputation.
Colin Powell: Stevens
reputation 'sterling'
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October 10th, 2008 11:28 AM
Last Modified: October 10th" 2008 11.:28 AM
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Stevens defense wit,nesses
Listen to wiretaps played for jury Tuesday
Listen, to phone calls, with
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Fees paid to Ben Stevens questioned by
Veco execs .
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SUSAN WALSH I The Associated Press
Former Secretary of State Colin Powell leaves
federal court in Washington, Friday, Oct. 10,
2008, after testifying at the corruption trial of Sen,
Ted Stevens, R-Alaska.
"He was someone whose word you
could rely on," said Powell,
secretary of in
Bush's first term, who self-
deprecatingly described.himself as
someone who retired as the
chairman of the Joint Chiefs of Staff
and then "dabbled a bit in
diplomacy."
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Stevens, on trial for lying about
gifts on financial disclosure forms, has the right to ask
character witnesses to speak on behalf of his "truthfulness and
veracity." The first such character witness, Sen. Daniel Inouye,
D-Hawaii, spoke Thursday. Another three are set to testify on
Stevens' behalf, but the highest-profile witness, by far, will be
Powell.
The former secretary of state said he had known Stevens for
2S years, mostly in the senator's role as the top defense
appropriator on a Senate defense appropriations committee. In
Stevens, "I had a guy who would tell me when I was off base,
he would tell me when I had no clothes on, figuratively, that
is, arid would tell me when I was right and go for it," Powell
said. "He's a guy who, as we said in the infantry, we would
take on a long patrol."
...,....
-;;-one of But he didn't thiOice about testifying,
,
saiCf.
"Not at all," he ?aid, snapping his fingers to signify it was a
snap decision.
PDF: TelePhGvidence graphic
Photos: Historical photos 0'( Sen. Ted
Stevens
Photos: Sen. Ted Stevens gallery
The Ted stevens investigation
Powell's endorsement followed a morning of testimony from
people who worked on Stevens' home and were paid by
Stevens and his family, or were aware of gifts he had received.
Related Audio Content
More Sen. Ted Stevens stories »
The former chairman of a nonprofit in Alaska testified that he
was directed by a close friend of to "create a paper .
trail" that would ,show a husky puppy given to the senator was
worth one-fourth what the friend paid for it.
Judge sends Stevens juror!? home for day
Stevens gets help from some friends
Which Stevens will jurors Judge?
Stevens' defense rests
Testimony ends in Stevens trial
Stevens, 84, faces charges of failing to disclose more than
$250,000 in gifts between 1999 and 2006. Most of that total involved a major renovation project
that doubled the size of Stevens' home in Girdwood, with much of the work allegedly done for free
by 'an oil-field service,company run by Stevens' friend Bill Allen.
The testimony Friday morning, on the 10th day of trial, was only about a dog, but it's also part of
the case against Stevens.
Ronald Rainey, a retired utility worker from Soldotna, was called by Stevens' defense to discredit a
prosecution contention that the blue-eyed husky was a $1,000 dog -- a value far in excess of the
$285 gift limit in effect for the Senate that year.
Rainey testified that the Kenai River Sportfishing Association gave the dog to Stevens, not the man
who bid it at the group's annual charity auction. The bidder was Bob Penney, an
Anchorage real estate developer, the founder of the association and Stevens' good-friend.
But if Penney bought 'the dog with his $1,000 bid, why did Stevens report it in his 2003 Senate
d.isclosure as a gift from the association a value of $250?
According to Rainey, Penney bid up the value of the dog. When the auction hammer came down,
he was the last-bidder.
"It was a joke," Rainey said. "We knew he got stuck with something he didn't want."
Rainey described Penney as the founder 9f the association. He still had huge sway over the group,
Rainey said. Penney proposed donating the dog back to the association; the association would then
-give it to someone who wanted it, Rainey said. That would be Stevens and his wife; Catherine, he
testified.
But .the document prepared by the association the night of the auction, shown to the jury earlier as
a prosecution exhibit, showed Penney won the bid and took the dog. The statement listed th
FB1
_St -2172
dog's fair market value as $500 and the paid-in-full bid as $1,000. . evens
On Wednesday, the government introduced an e-mail written by Stevens to Penney on May 2,
2004, 10 months after the auction, in, which he complained he was fjlling out his "GD disclosure
form" and had a problem with the dog. Penney couldn't give him the dog because it was worth
more than $285, Stevens said. He said the gift instead should be a present from the association.
"In May of 2004, Bob Penney asked you to create a paper trail concerning the sled dog?" asked
prosecutor Nicholas Marsh.
"That's correct," Rainey said.
An. e-mail introduced Friday from Rainey to Penney on May 6, 2004, said the association
considered the dog was a "thank-you" to Stevens for all his work on its behalf:
I
1- ---
,.> . #0 \', ... r\ r'\
nyc:?did this because Bob Penney aWyou to create a paper trail?" Marsh saiP
"Yes," said Rainey. But he said the documentation reflected the association's intent at the time of
the auction.
Earlier, the defense provided the names of 10 character witnesses it hoped would. testify for
~ Stevens. But the judge said he would only allow five, a m o ~ e usual number.
Another proposed witness, Sen. Ted Kennedy, D-Mass., is probably too ill to testify, the defense
sqid. The defense said it would like to call S ~ n . Orrin Hatch, R-Utah, former Transportation
Secretary William Coleman, former District of Columbia council member John Ray, Olympic
medalist and sportscaster Donna DeVerona and a fellow veteran from Stevens' World War II Army
Air Corps unit"Leroy Parramore.
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SUBPOENA: Evidence sought, including
documents related to diamond earrings.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
Published: October 12th, 2008 11:48 PM
Last Modified: October 12th" 2008 02: 14 PM
WASHINGTON -- Even as Sen. Ted Stevens' trial approaches a
likely end this week, federal prosecutors are still attempting to
gather more evidence, including correspondence·between the
Alaska senator and his wife, Catherine, as well as e-mails she
may have sent to 34 others about their home renovation and
gifts the senator may have received.
I Exhibits from 10/20
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se
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The federal subpoena to Catherine
Stevens' law firm, dated Sept. 15,
public over the weekend
when Stevens' legal team asked the
judge in the case to prevent the
government from obtaining
thousands of documents from the
law firm" Mayer Brown.
More Sen. Ted Stevens stories»
Judge sends Stevens jurors home for day
gets help froll) some frieflds
Which .Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
Font size: A I A I A Prosecutors are also looking for communications between her and
anyone with a U.S. Senate e-mail address, as well as documents
relating to anything of value given or provided to Stevens, his wife or his daughter, Lily. That
includes "any documents relating to diamond earrings," according to the motion: FBI - Stevens-2174
But Stevens' defense team doesn't want them turned over, accusing prosecutors of going on a
fishing expedition and saying in their motion that a "more oppressive, non-specific subpoena could
hardly be ima9ined."
The 84-year-old senator is on trial for lying on the Senate financial disclosure forms he's required
to file each year. He's charged with accepting gifts and home renovations worth more than
$250,000, chiefly from Veco Corp. and its former chief executive, Bill Allen, who was the star
witness for the prosecution.
The renovations in 2000 and 2001 doubled the size of the Stevens' home in Girdwood,
-transforming it from a small, A-frame cabin into a two-story retreat with multiple decks, a Jacuzzi
tub and a Viking outdoor grill. Prosecutors have been laying out a case that much of the work,
It:tvr;+.....
decks as well as P1umOnd a complete overhaul, waQfor by Veco.
IN DEFENSE-PHASE
Stevens' trial, about to begin its fourth week, is in the midst of the defense phase. Prosecutors
rested their case last week and his defense team began building a case that the senator was
unaware that the renovations in question may have exceeded what he spent on it, an estimated
$160,000. Several character witnesses, including former secretary of state Colin Powell, have also
testified on Stevens' behalf. •
Stevens' attorneys asked to quash the subpoena over the weekend after one of the prosecutors,
Edward Sullivan, sent an e-mail asking for the documents the government had requested.
According to the filing, last year, prosecutors asked for and received more than 26,000 pages of
documeflts from Catherine Stevens' law firm. 'But the law firm didn't turn over communications
between Catherine Stevens and her hl!sband because spouses are generally protected by law from
having to provide evidence against other in criminal case, according to the filing.
Prosecutors asked for the documents again on Sept. 1S, just a week before jury selection began in
the case.
The law firm did a search and handed over three discs containing thousands of e-mails to Stevens'
defense team in early October, according to the filing. They reviewed them in search of privileged
conversations between husband and wife and found none, but also found "no relevant ones," wrote
one of Stevens' lawyers, Joseph Terry. The first 100 e-mails are about nothing more than "the
recent death of Mrs. Stevens\ mother; Lily Stevens' wedding; and grave illnesses of personal
friends."
Prosecutors on Friday night asked again for the e-mails, prompting Stevens lawyers to file a
motion as.king the judge to keep from getting them.
NEW NAMES EMERGE
The government's subpoena also lists some names that haven't come up before in the case,
including Anchorage jeweler George Walton and his Alaska Gold and Dia"mond Co. and New York
socialite Marylou Whitney and her husband, John Hendrickson, formerly from Alaska. Whitney and
tiendrickson .have been involved in. the horse business with Stevens.
Also listed was Anchorage real estate developer Jon Rubini and' one of his companies, Centerpoint
LLC, in which Stevens was once an investor.
Stevens' lawyers also filed a motion Sunday night asking the judge to strike references to "the
public's right to know" when it comes to disclosure of financial information.
"Any such pUblic interest is irrelevant to the charges in this case, which are and must be based on
allegeq false statements to the government, not the public at large," Stevens' lawyers wrote. "Tl1e
government obviously. wishes to inflame the jury Y"ith assertions that the defendant has injured the
public at large -- including the jurors themselves -- by supposedly depriving the populace of
important information. This inflammatory suggestion should not be permitted."
Earlier, the defense successfully blocked the government from using the testim,ony otanadvocate
of public disclosure, Kent Cooper, about how disclosures are used by the media, public advocacy
groups and the public at large.
The trial, on break today for the federal Columbus Day holiday, is scheduled to resume Tuesday
morning. FBI - Stevens-2175
Contact the reporters:- ebolstad@adn.com and
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enlarge
JOSE'LUIS MAGANAlTl)e Associated Press
Sen. Ted Stevens leaves the courthouse with his
daughters Beth Slevens, left, and Susan Stevens
Covich at federal court in. Washington. Covich
testified in court Oct, 14,2008.
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. Ph·otos: Exhibits submitted as evidence
"I slept on the couch," Covich said
of one such occasion when'none of
the five bedrooms was available.
Allen appeared in the morning and
told her she could move to one of
the upstaJrs bedrooms, she said.
Covich, a substitute teacher in the
Kenai public schools, there
were times that Allen appeared to
have more control of the house
than she did.
Anothe'r time; she said, "I was
!TIY. in.to
But there were times, she testified
in her father's trial Tuesday, that
she arrived in Girdwood late at
;nightto.find strange cars in front of,
the chalet and people behind,closed
bedroom doors inside. One 9f those
people y,rould be Veco chairman Bill
.,
Allen, the oil-field contractor who
helped renovate the place for her
father and. Sen.
Stevens and Catherine Stevens.
- <r.-. - i .. ;: :-::-:= -:-
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Font size: AI A I A
Click to enlarge
Susan stevens Covich testified
Oct. 14, 2008.
Allen used Stevens' home,
witness testifies
WASHINGTON -- Susan Covi found.her father's house in
Girdwood to be a'convenien place to stop and.spend the night
, - - ..-- ""
'during frequent trips between her home in',Kenai and
Anchorage, where between 2004 and 2004 she was furthering
her own education and later attending to an ill affairs,
,COVICH: Senator's daughter says she found
Veco chief at chalet when father was away.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
Published: October 15th, 2008 01:05 AM
Last Modified: October 15th" 2008 01:18 AM
my Dad's house," she said. "There on, in the parking lot. It jUSOtoo creepy, so
I just dro;!e on."
1:-
DEFENSE TACTIC
Stevens is on trial on seven felony counts of failing to 'disclose about $250,000 ill gifts and services
on his annual financial statements. Most were from Allen and Veco and involved their effort to
renovate and furnish Stevens' home.
With Covich's testimony, the first by a member of the Stevens family, the defense appeared to be
-making the point that Allen had himself in mind for some of the improvements he made to the
home, and that Stevens didn't want all that Allen·did. In one note from Stevens to Allen entered as
evidence early' in the trial, Stevens said he considered a $6,000 outdoor barbecue grill to belong to
Allen, though Veco permanently plumbed it to a gas line on Stevens' upper deck and installed it
there with a crane.
What could not be known Tuesday was how the jury would react to the assertion that Covich
couldn't use her family's home on multiple occasions because Allen was there using his own key,
apparently with the authorization of her father. There was no testimony about why Allen was
there. .
Covich also testified about another point that came up in the trial, this one involving her son. She
confirmed that Veco got a job for her son, John Covich, on the North Slope, after he got out of a
special high school program for troubled teens.
But, sobbing softly, Covich said her son had a "substance abuse problem" and "had some run-ins
with the law because of that." When he begin missing the plane to the Slope, he was fired, Covich
said, though Veco offered to take him back if he went straight.
That apparently happened in 2003, when Veco began paying his tuition and expenses to learn
heavy diesel mechanics at the state vocational training center in Seward, she said.
"He survived the first semester, but right after Christmas he got back into abusing again and
was kicked out of the program in January 2004," Covich said. "He is residing in a correctional
facility now."
State records show John P. Covich was locked, up at the Wildwood Correctional in !<enai on
April 29 for a probation violation with no set'release date.
TRIAL WRAPPING UP
The defense has announced that Ted Stevens and Catherine Stevens will probably follow Covich to
the witness stand later this week, though that could change. U.S. District Court Judge Emmet
Sullivan said Tuesday that he expected the to wrap up Monday with closing arguments a'nd
jury instructions.
It might have been possible for the case to go to the jury Friday, he said, but he doesn't Iike
F
&I - Stevens-2177
start deliberations just before a weekend since the jury may feel pressured to reach a quick
verdict.
That schedule would mean thatthe jury could return a verdict less than two weeks before the
veteran Republican stands for re-election. He faces Anchorage Mayor Mark.Begich, a Democrat.
In other testimony Tuesday, lawyers for the senator continued to attempt to sow doubt in the
minds of the jury as part of their effort to prove the central theme of their defense: that the Alaska
Republican thought he was paying every bill he was given for his home renovations.
They bolstered their case with testimony from Augie Paone, owner of Christensen Builders of
Anchorage. The contractor did the bulk of the carpentry that doubled the size of Stevens' once
modest,A-frame.
-----
---- ------------------.
Prosecu.tr..rs are trying to show that Qpaid for much of the work, including tOecks, plumbing
al?p a complete electrical overhaul. To that end, jurors heard exhaustive testimony from Veco
employees and tradesmen -- especially the electricians -- who worked on home yet never
submitted bills for their work.
But Paone, a defense witness, said Tuesday that even though he was primarily the carpentry
contractor, he also purchased electrical and plumbing supplies -- and presented them as line items
in his bills, with the complete invoices from suppliers as backup.
His testimony Stevens and his wife could have thought they were paying for evelY..thing
tl1emselves, even though Veco paid for the plumber and electricians and at least some of the
material, according to earlier testimony. .
Paone said he was very careful to do everything by the book, knowing Stevens' position. After
meeting with Allen in late summer 2000 to go over the project's parameters, they decided Allen
would review his invoices before they were sent to Stevens.
Paone said Stevens' wife, Catherine, paid him promptly' when he sent the first five bills.
But the sixth bill, for $19,818, is another matter. It's clear Stevens never paid it, but Pa.one's
testimony about why was delayed by a legal dispute that led to the jury going home early
Tuesday.
In their opening statements, Stevens' lawyers told jurors that Paone was told by Allen and the
construction foreman Robert "Rocky" Williamsthat he was going to "eat that bill."
But prosecutors argued that Paone's testimony Tuesday seemed likely to contradict his own
to a grand jury, he that Allen never said he would-"eat" the bill,-but
-implied it. Allen also testified he never specially told Paone he was stuck with the bill.
The judge will make a decision this morning on how to proceed.
OTHER TESTIMONY
In other defense testimony Tuesday, Jeanne Penney, a close friend of Stevens' wife, Catherine
Stevens, testified about a $3,009 stained glass win-doW that she bought as a housewarming
present once the Stevenses finished construction on their home. Prosecutors have presented
evidence that Stevens never disclosed the window as a gift.
Tuesday, Penney stumbled when,sh,e described for whom the gift was intended.
"I gave her a gift. I gave tnem a gift," she said, adding, "The interest of that gift was primarily to
my friend, Catherine Bittner Stevens."
She.described her friendship with Catherine as predating Catherine's marriage to Stevens and as
one of two women who can sit around for hours in their pajamas, drinking coffee and talkinjBI - Stevens-2178
Two other character witnesses also testified Tuesday. Sen. Orrin Hatch, R-Utah, a Senate colleague
since 1976( described his friend as a "fine, decent, honorable man."
"I'd rate him at the very top," Hatch said. "He's one of the true lions of the Senate, along with my
friend Ted Kennedy. He's totally honest, totally straightforward, fights for his state like you can't
believe/
Also on Tuesday, Double Musky owner Bob Persons took the stand briefly outside the presence of
the jury while Judge Sullivan called Persons' lawyer, Eric Sanders, in Anchorage. Persons, listed as
one of Stevens' final witnesses, had asserted his Fifth Amendment right to not testify when he was
subpoenaed to the grand jury in Washington before Stevens' Indictment, lawyers for both
said iO court.
--
But was willing to testify onQalf of his friend, Stevens, and the be sure
thjlt'Sanders had advised his client of the risk's of self-incrimination. Sanders assured the judge
that Persons knew what he was doing. -
has emerged as a key figure in the house expansion. His name is on the construction
documents filed with the Anchorage city building department, and witnesses said he was a
frequent visitor to the project. The government has introduced dozel)s of e-mails showing how he
kept Stevens abreast of the work.
RULING ON E-MAILS
Sullivan ruled Tuesday morning that thousands of e-mails from Catherine Stevens' work account
will be turned over to federal prosecutors, who first asked for them more than a year ago. The
defense had fought to prevent the documents from being turned over·on relevancy grounds and
also under the spousal privilege doctrine, generally prevents one spouse from testifying
against the other in a criminal case.
Prosecutors argued that comm!Jnications between the couple "will be relevant to show the material
elements of the charges in the indictment, including defendant's knowledge, intent and motivation'
for.concealing the benefits he received from Veco."
They that "in particular, we anticipate that certain documents at the time of the renovations
will reflect that both Catherine Stevens and defendant knew they had not paid for the Veco work,
and documents thereafter will reflect that Catherine Stevens and defendant took'steps in 2004 to
mislead the press when the media was investigating the costs associated with the renovations."
Sullivan said he saw no reason for prosecutors not to have the documents, and-he ordered
Stevens' lawyers to turn.them:over. But after. reviewing the.e-mails.duringtheday•. pr:osecutors.
said Stevens' law,firm had failed to turn over any.from the most relevant time frame -- from 2001,
when she started work there, to
- i
ContaCt the reporters: rmauer@adn.com and ebolstad@adn.com
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Stevens defense nears
conclusion
By RICHARD MAUER AND ERIKA BOLSTAD
Anchorage Daily' News
Published: October 14th, 200805:03 PM
Last Modified: October 14th, 200805:03 PM
More Sen. Ted Stevens stories»
judge Stevens jurors home for day
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WASHINGTON -- The jUry could begin deliberations Monday in Sen. Ted Stevens' corruption case,
.leading to the possibility of a verdict less than two weeks before the veteran Republican stands for
re-election in Alaska.
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Stevens' laY'/yers should finish their defense late Wednescjay or
Thursday, and prosecutors will have the opportunity to present rebuttal
witnesses. They'II.1ikely have closing arguments Monday, said U.S.
District Judge Emmet Sullivan; then, he'll give jurors the case.
, Today, lawyers for the senator continued to work to sow doubt in the
minds of the jUry as part of their effort to the central theme of
their defense: that the Republican thought he was paying every
bill he was given for renovations to his home in Girdwood.
They bolstered their case with testimony from Augie Paone, the
Anchorage carpenter who did the bulk of the renovations that doubled
the size of Stevens' once-modest A-frame.
Stevens, 84, is on trial on charges that he lied on the Senate financial-disclosure forms he's
required to file eacti year. He's accused of failing to report gifts and home renovations worth more
than $250,000, chiefly from Veco Corp. and its former chief executive, Bill Allen, who was the
prosecutio.n's star witness. FBI - Stevens-2180
Prosecutors made the case that Veco paid for much of the work, including the decks, plumbing and
a complete electrical overhaul. To that end, jurors heard exhaustive testimony from Veco
employees and tradesmen -- especially the electricians -- who worked on Stevens' home yet never
submitted bills for their'work. .
But Paone, a defense witness, said today he was very specific about billing the Stevenses for
plumbing and electrical supplies, suggesting Stevens and his wife could have thought they were
paying for everything themselves.
Since Stevens is an elected official, Paone said, he was very careful to do everything by the book.
He met with Allen in late summer 2000 to go over the project's parameters.
"We'were both under the-,impression,that we were going to, based on the senator being an elected
Q..
official, I ,going to all mQto the senator or to make sure heOexactly what'
he was gettmg," Paone said.
'-(

Paone said Stevens' wife, Catherine, paid him promptly when he sent the first five bills.
But when Paone to testify about the sixth bill, for $19,818, the jU,dge stopped him, based on
objections from prosecutors. In their opening statements, Stevens' lawyers told jurors that Paone
was told by Allen and'the construction foreman Robert "Rocky" Williams that he was going to "eat
that !:iii!."
prosecutors argued that Paone's testimony today likely to contradict his testimony to a
grand jury, in which he said Allen never explicitly said he would "eat" the bill but implied it. The
judge will make a decision Wednesday morning on how to proceed.
Other witnesses weren't quite as successful for: the defense as Paone. Jeanne Penney, a close
friend of Stevens' wife, testified about a $3,000 stained-glass window. that she bought as a
housewarming present once the Stevenses finished construction on their home. Prosecutors'have
presented evidence that Stevens never disclosed the window as a gift.
Tuesday, Penney stumbled she described for whom the gift was intended.
"I gave her a gift. I gave them a gift," she said, adding, "The of that gift was primarily to
my friend, Catherine Bittner Stevens." .
One of Stevens' daughters, Susan Covich, testified about another alleged benefit Allen offered
Stevens: a pricey mechanical training course for Covich's son, Stevens' grandson. Allen helped
Covich's son get into aVeco job-training program when he was a troubled young man struggling
with addiction to drugs. She broke down as she described how her son, now incarcerated, lost his
with yeco, despite fa,mily ..
Covich also offered testimony designed to help boost another defense theme: that Stevens neither
needed nor walJted the gifts Allen was giving, and that they, were for the benefit of the Veco chief
when he used the Girdwood home.
She testified that she often stayed at her father's home in'Girdwood in 2002 when she was
traveling between college classes in Anchorage and her home three hours south. Allen was often
. there wheif she· arrive·d-Iate"at'nighf, One'time, there were cars in the driveway when
she went inside, all the bedroom doors were closed.
"I 'was planning to make my stopover into my dad's house," said. "There were lights on, cars in
the parking lot. It just got too creepy, so I just drove on."
rwo other character witnesses also testified Tuesday. Sen. Orrin Hatch, R-Utah, a Stevens
colleague in the Senate since 1976, described his friend as a "fine; decent, honorable man."
"I'd rate him at the very top," said. "He's one of the true lions of the Senate, along wil:/}.,ply
friend Ted Kennedy. He's totally honest, totally straightforward, fights for his state like you [£it- Stevens-21Bl
, .
believe." •
Stevens' wife is tentatively. scheduled to testify too, although the senator's lawyers haven't said
whether she will.
Stevens himself is at the end of the witness list, as a potential final Witness, but it remains unclear
whether he will actually testify.c judge Sullivan reminded Stevens .,. out of the presence of the jury
-. that he was under no obligation to do so.
"It's your choice. You don't have to say anything," Sullivan said this morning.
Sullivan ruled this morning that thousands of e-mails that Catherine Stevens sent will be turned
•,oyer,to first,asked.for them more than a_year, ago.
Communications between Stevens aQer husband "will be relevant to thQterial
the charges the including defendant's knowledge, intent and motivation
the benefits he received from Veco," prosecutors argued.
They added that "in particular, we anticipate that certain documents at the time of the renovations
will reflect that both'Catherine Stevens and defendant knew they had not paid for the Veco work, ,
and documents thereafter will reflect,that Catherine Stevens and defendant took steps in 2004 to
mislead the press when the was investigating the associated with the renovations."
Stevens' lawyers had tried- over the weekend to. quash a Sept. 15 subpoena seeking the documents
from her law firm, Mayer. Brown.
Prosecutors had asked-for communications between Catherine Stevens and anyone with a U.S.
Senate e-mail address, as well as d9cuments relating to anything of value given or provided to Ted
Stevens, his wife or his daughter, Lily. That includes "any documents relating to diamond
earrings," according to a motion filed by Stevens' attorneys.
said he saw no reason for prosecutors not to have the documents, and he ordered
Stevens' lawyers to turn them over.
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JOSE WI$ MAGANA fThe Associated Press
Sel). Ted Stevens leaves the courthouse with his
daughters Beth Stevens, left, and Susan Stevens
Covich at federal court in Washington. Covich
testified in Court Oct. 14,2008.
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Judge sends Stevens' jurors h'ome',for day
0 ,_. 1.-\.4-.4#-l':36 ;)
Those renovations and other gifts
are at the h.eart of the case against
Stevens, whose corruption trial is in
its fourth week. The 84-year-old
Alaska was charged with
seven felony counts of making false
statements on Senate financial-
forms.•
Allen told him he'should "eat" the
final bill from the homerenovations,
said Augie Paone, who took the
stand today as a defense witness in
the senator's corruption trial. Allen,
the chief executive of Veco Corp.,
an.oiL,field.services company·that
.,
was one of Alaska's largest private
before It was sold last
...
year, was overseeing renovations at
b Stevens' home in Girdwood in 2000
and 2001.
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Contractor: Allen advised
not billing Stevens
WASHINGTON - It would have been "business suicide" to cross
the powerful'BiII Allen, testified the carpenter who renovated
Sen. Ted Stevens' home in Girdwood and who said he.was
bullied into not sending the senator a (inal $13,393 bill.
Stevens' Wife, Catherine, is poised
t<? testify Thursday, and the senator
himself might take the stand.
During the lunch break today,
. Stevens got onto the witness stand
to determine whether he could hear and see the lawyers. He
also:tested the microphones.
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By ERIKA BOLSTAD and RICHARD MAUER
_Anchorage Daily News
Published: October 15th, 200803:37 PM
Last ,Modified: October 15th" 2008 PM
who's listed as the final defe witness, doesn't
)lave to take the stand. The judge ha? reminded hi(ll
repeatedly that jurors aren't supposed to hold it against him if
he doesn't.
o
Stevens 9,ets help from some friends
Which Stevens will jurors
Stevens' defense rests
Testimony ends in Stevens trial
Paone testified today that I}e objected to "eating" the bill for,
work at Stevens' home and said so in a meeting with Allen, who told the carpenter he should "look
at it as a political contribution," Paone said.
"At first I was shocked," Paone said. "I also tried to hold on to my composure. I knew I was in a
bind, because I knew he had me in a spot where I really couldn't do anything."
Paone said he "thought about sending it over to the senator, but I knew it would be business
suicide. I knew that I was between a rock and a hard place. I thought it was wiser - or better
business sense on ,my side - to just leave it alone."
A few months later, Allen asked Paone's Christensen Builders to do work on his own house. 'Allen
padded the cost of his own renovations to compensate for the $i3,393 that Paone lost on the
Stevens remodel, the carpenter testified.
''The understanding was that I will do some work for you but you still owe me $13,000," Paone
said in court. "I was adamant that I was going to get paid for that bill that owed me."
Stevens' legal team used Paone, who came across as a straight shooter:, to chip away at Allen's
credibility. Allen, who was the star witness for the prosecution, has pleaded guilty to bribing state
lawmakers as part of the wide-ranging corruption investigation that drew in Stevens. Allen hasn't
been sentenced yet.
One of the major themes of the defense case has been that Stevens and his wife all the bills
that they received, a'nd that Allen and other friends hid the true cost of the renovations, done
mostly while the couple was in far-off Washington. '
Yet some of Paone's testimony to a 2006 grand jury countered that theory, said prosecutor Joe
Bottini, an assistant U.S. attorney in Anchorage. He asked Paone to refer to what he told grand
jurors two years ago when the case was under investigation.
Didn't he go back to do additional work on the Stevens place?
He did, Paone said. He went back to work on the garage f1o,or as well as to build shelves, including
ski racks. '.ieco paid that $2,700 bill, Paone acknowledged. He also did some tiling on a fireplace at
Stevens' home, he said, and the $850 expense was charged to Allen as part of the renovation work
,Paone did on the Veco chief executive officer's home.
Stevens' team also tried to use one of the senator's neighbors, Bob Persons, to attack one of the
most memorable moments in the trial so far, when Allen told jurors that Persons said Stevens was
"just covering his ass" and wasn't serious When he asked for a bill in 2002 for work on his house.
FBI - Stevens-2184
Persons, who owns the Double Musky restaurant in Girdwood, had a power of attorney to obtain a
building permit on Stevens' behalf, oversaw the initial construction and handled bills for the family.
Stevens' attorney asked'him whether he, in fact, had told Allen that the'senator was "just covering
his ass" in asking for bills. Persons said he never said It.
"No," Persons said, adding under his breath, "crazy."
Persons, whose folksy mannerisms began when he took the stand and told the judge he'd rather
be fishing, got a mild scolding for joking with members of the jury while they were leaVing for their
afternoon break. The judge, warning Persons that he was to have no contact with jurors, asked
him what he said.
"I saill,-rDo you a bathroom baQere?1 " Persons said, a question that eliGd chuckles
....... . -
:,.even from Stevens, usually s.its stone-faced during testimony.
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Anchorage Daily News
Stevens friend testifies about billings
BOB PERSONS: Double Musky owner down'plays Veco role.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/16/0800:58:48)
WASHINGTON -- A few days before he was supposed to fly from Alaska to Washington and testify before a grand
jury in May 2007, Bob Persons, the owner of the Double Musky restaurant in Girdwood, met with, the
investigation's target -- U.S. Sen. Ted Stevens.
The unusual timing of that meeting, and Stevens' suggestions to him about the facts in the case tlie government
appeared to be bUilding, became a sUbject of Peq;ons' testimony Wednesday in Stevens' trial. . ,
Persons was testifying on behalf of Stevens, his longtime friend and Girdwood neighbor, accused in a seven-count
indictment of'failing to report more than $250,000 in gifts and services, prim'arily from the oil-field'service
company Veco and its chief executive, Bill Allen.
Allen organized and paid a portion of the remodeling, furnishing and repairs of Stevens' home starting from 2000
to 2006, according to charges and ,evidence in the case.
.(]2
Persons is expected to conclude his testimony this morning. The defense has. announced just two more
witiless'es: Stevens''Wife,Catherine, who the defense says was'incharge'of paying bills'and financing the
remodeling of the couple's Girdwood home; and Stevens himself. '
Though it projected an examination of Stevens of several hours and potentially involving dozens of eXhibits, the
defense can still rest Without calling him.
But as if to prove its intent, Stevens sat in the witness stand during a recess. Wednesday and tested his ability to
see thecomputer'monitor where exhibits aredisplayed'and to hear'questions from his attorney:spoken-in a·
. normal voice. Stevens, who is hard of hearing, has been listening to the-trial with the assistance of court-supplied
earphones, but he was without that aid in practice run.
Once the defense rests, the government can present rebuttal Witnesses, probably on Friday. Prosecutors said that
so far, they just have and they won't. be on the stand for long.
U.S. District Court Judge Emmet Sullivan said he hoped to conclude the case with closing arguments and
instructions to the jUry Monday.
PERSqNS DOWNPLAYS VECO ROLE
FBI - Stevens-2186
. friendly questioning by Robert CarY, on'e of Stevens' attorneys, Persons downplayed the role of Veco in the
main phase of the from late.summer 2000 to early spring 2001. That's when the size of home YJas
'doubled-"·-through the work of contractors paid by Stevens, and'from Veco workers;·whom,he
One of the trial's most memorable lines so far uttered by. Allen in his for the prosecu,tion two
weeks ago, when he reported on a key conversation he had with Persons in 2002. Stevens had sent a note to
Allen asking for a bill for Veco's work on the Girdwood house. But the note also asked Allen to speak with Persons
about that very request.
When he did, Persons told him the request was for shoyJ, Allen said.
,IIMr.:Persons,'did you'say·to Bill about.getting a'bill -- hiS"aSS?'
- ., , __', C2-.._,
.J
a;ked, quoting Allen's testimony._ 0
"No," Persons said. "Crazy," he added, under his breath.
o
But Persons' testimony under cross-examination, despite claims Qf a bad memory, played into the government's
assertions that Stevens was well aware of at least some of Veco's largesse on his behalf.
In May 2007, two months before the FBI raided Stevens' home for evidence of the Veco work, Persons was
summoned to a grand jUry that was meeting one floor below the courtroom where Stevens' triaris now under
way.
Before he left for Washington, Persons said, -he met with Stevens and told him the subjects the government was
interested in. Among the items listed on his subpoena were "generators" and "decorative lights of any type"
provided to Stevens.
"He said the generator really wasn't what he wanted," Persons recalled Stevens saying.
But the government has already presented testimony and exhibits showing that Stevens feared losing power,due
to the so-called Y2K bug between Dec. 31, 1999, and the new year. Veco paid to install a $6,000 generator with
an automatic starter that would fire it up if the power failed. Stevens expressed his thanks for the work -- and
never paid, according to the evidence.
Veco electricians and workers spent days installing rope lights around the house and buried a cable between the
house and a spruce tree so the tree could be lit from bottom to top. Persons told the grand jUry that
the Stevens family "hated the lights,:' he said Wednesday, especially the ones in the tree.
Prosecutor Nicholas Marsh reminded Persons how he told the_grand jUry that Stevens said that he had just
recently heard that Veco installed the lights.
"That's what you told the grand jury, because that's what Ted Stevens told you," said Marsh, who also was
Persons' interrogator before the grand jury.
Then Marsh asked Persons to read a note Stevens wrote to Allen on Nov. 8, 2002, thanking him for all the work
on the Girdwood home..
"The Christmas lights top it all -- our 60 foot tree lighted tothe .highest point!" Stevens wrote.
Persons also testified his home above his restaurant was among the places raided in a massive FBI operation
around Alaska on Aug. 31, i006. That's when six legislative offices were also searched, iricluding the offices of
the state senate president, Ben Stevens, son.
Persons agreed-to an interview by agents searching his house but told them he had trouble remembering things,
he said Wednesday. Reading from an FBI report of the encounter, Marsh said, the agents said Persons explained
he had a family history of Alzheimer's disease.
Then Why, Marsh asked, was he so good at remembering things from years ago during his examination by
Stevens' attorney?
FBI - Stevens-2187
"When I see something that refreshes my memory, it helps," Persons said.
Persons, whose folksy mannerisms began when he took the stand and told the judge he'd rather be fishing, got a
mild scolding for joking with the jUry while they were leaving for their afternoon The judge, warning
Persons he was to have no contact with jurors, asked him what he said.
"I said, 'Do you have a bathroom back there?' " Persons said, a question that elicited chuckles even from
Stevens, who usually sits stone-faced during testimony.
'BUSINESS SUICIDE'
--- - ---------,------
.;:, -
Eiirlier Wednesday, Augie Paone, !O:arpentj-y contraCtor on the said Catherine
paid his first five bills after they by Veco. But his sixth bill w'trtnever approved for submission to
Stevens, and Paone decided not to send it to Stevens himself. '
It would have been "business suiCide" to cross Allen, Paone testified in explaining why he was bullied into not
sending the senator a final $13,393 bill.
Allen told him he should "eat" the final bill from the home renovations, said Paone, who took the stand.
Wednesday as a defense witness. Paone, a residential specialist, said he was hireq by Allen when it
apparent that Veco employees more to oil-field work would be unable to complete the Stevens job before
winter set in. • ,
Paone testified Wednesday that he objected to not getting paid for his work at Stevens' home, especially after
shelling out the cost of materials and wages. He testified he told that directly to Allen.
Allen told Paone he should "look at it as a political contribution," paone testified.
"At first I was shocked," Paone said. "ralso tried to hOld on to my composure. I knew I was in a bind, because I
knew he had me in a spot where I really couldn't do anything."
Paone said he was out of his league. He had five employees, Allen about 5,000.
Paone said he "thought about sending it over to the senator, but I knew it would, be business suicide. I knew that
I was- between a rock and a hard place. I thought it was wiser -- or better business sense on my si<!e -- to just •
leave it alone. "
A few months later, Allen asked Paone's Christen.sen Builders to do work on his own house. Allen padded the cost
.",- 'of his qwri renovations to compensate for th,eA13,393 that I()st on the Stevel1s remodel, the carpenter
testified. .
"The understanding was'that I will do some work for you but.you still. owe me $13,000," Paone said in court. "I
was, adamant that I was going to get paid for that bill that he owed me."
The bill he submitted to Allen, and which Allen paid, had a "Girdwood line item for "invoice from last year,"
thoughit,didn't py
ALLEN'S CREDIBILITY ATTACKED
Stevens' legal team used Paone to chip away at Allen's credibility. Allen, who was the star witness for the
prosecution, ha's pleaded guilty to bribing state lawmakers as part of the wide-ranging corruption investigation·
that drew in Stevens. Allen hasn't been seritenceq yet.
One of the major themes of the defense case has been that Stevens and his wife paid all the bills that they
received, and that Allen and otherofriends hid the true cost of the renovations, done mostly while the couple was
in far-off Washington.
FBI - Stevens-2188
Yet some of Paone's testimony to'a 2006 grand jury countered that theory, said prosecutor Joe Bottini, an
assistant U.S. attorney from Anchorage. He asked Paone to refer to what he told grand jurors two years ago
when the case was under:
·Didn't he go back to do additional work on the Stevens place?
He did, Paone said. He went back to work on the garage floor as well-as to build shelves, including ski racks.
Veco paid that $2,700 bill, Paone acknowledged. He also did some tiling on a fireplace at Stevens' home, he said,
and the $.850 expense was charged to Alien as part of the renovation work he did on the Veco chief executive
officer's home.
In-hls_cross-exaniiriation, Bottini_co!-,ntered with the' argument that Stevens knew work-was I5Eling done that he
should have paid for 'but didn't. Work that'PaOJ1E{ did' after the'main remod!=I'wassomething-that StevensshoiJld _

----=--------=--------'=-------
----
0/
3.-
needed to pay forOtini suggested. 0
"This additional work that you did, m'onths later, fixing the garage floor, putting the shelve's up in the garage, the
fireplace work, that was all work that anyone would notice, isn't it?" Bottini asked.
"I guess it would," Paone said.
said his initial intent on taking the job was to fully doc!Jment everything, with extreme care, because of
Stevens' position. That plan fell apart in the end, he said.
you tell the grand jurors that you always thought that someday something like this might happen?"
Bottini asked.
"I was concerned. that the senator'wasn't getting billed for some of that stuff and I was concerned that something
like this would happen;" Paone said.
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FBI - Stevens-2189

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Stevens' wife takes stan" for defense·
!?y RICHARD MAUER AND ERIKA BOLSTAD
Anchorage Daily News
(10/16/0808:40:32)
WASHINGTON - Jurors have seen photos of her home, heard from her friends, and seen dozens of checks she
wrote, but Thursday, they finally heard from the wife of Sen. Ted Stevens herself, as she began testifying as a
defense witness in her husband's corruption trial.
Catherine Stevens, a lawyer who appeared calm and poised while her husband's attorney, Robert Cary,
questioned her, took the stand to help support the defense theory that the senator paid all bills he was given in '
connection with the renovations. She often turned and spoke directly to the jury.
Stevens may testify himself this afternoon. The 84-year-old Republican is'on trial for failing to report more than
$250,000 in gifts arid services, largely from the oil-:field service. company Veco and its chief executive, his former
friend, Bill Allen. Most of gifts are connected to home renovations that doubled the size of the Stevens cabin
in Girdwood.
Stevens' wife, who oversaw the financial details of the renovation work, said she' assumed that two Veco Corp.
employ,ees on the job site in 2000 and 2001 were being paid by the contractor doing most of the work,
Christensen Builders. lJ.y<:L
"He was working with Christensen Builders," Catherine Stevens said·of Robert "Rocky" Williams. "He was on the
job there. He was paid. by thell'1."
Same for David Anderson, another Veco employee working on their home, said Catherine Stevens.
"He was at the job site, I assumed he was working with Christensen Builders," she said.
Both. workers were on the Veco payroll, according to earlier testimony. And Catherine Stevens testified that when
she sent Williams a thank you gift certificate from Delta Airlines for all his work on their project, she sent it care
of Veco's office in Anchorage. -
"I don't know why, unless he asked that I sent it there," Catherine Stevens said. "He worked for Veco, I don't
know how long."
Earlier in the day, prosecutors wrapped up their cross-examination of Bob Persons, Stevens' longtime friend and
Girdwood neighbor, and a defense witness. Stevens' lawyers called him to
senator paid all bills he was given in connection with the renovations.
But prosecutors hit Persons hard both Wednesday and Thursday, pointing to inconsistencies in his testimony.
When one of Stevens' defense attorneys, Robert Cary, asked Persons about conversations he had with Allen,
- Persons said- he "re'minded Bill (Allen) of all the times that-the senator had told him that he haa to give him bills
for anything and everything that was done at, that house."
Yet when asked by prosecutor Nicholas Marsh if he ever actually got an invoice from Allen, said no.
One of Stevens' defense attorneys, asked Persons to describe 'a February 2006 interview with two FBI agents.
T.he interview' was very confusing, Persons said. It "reached a point where I don't know w\1ether I was answering
questions or he was," Persons said, describing the demeanor of one of two agents who interviewed him at his
home in Girdwood.
._----- . , -:c::"-':C:::'=--..'
. .
"-It mentally persons.saicl. "The Thatwas hateful human
beirfg I met in my That rne-understand why a innocent people in
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WASHINGTON -- Sen. Ted Stevens took the stand in his own
defense this afternoon, asserting in a dramatic and rapid-fire
exchange with his lawyer that he has done no wrong.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
Published: October 16th, 200801:24 PM
last Modified: 16th, 200803:26 PM.
Stevens Cln,swers charges:
'No sir:
Sell it tod.
Advanced se
More Sen. Ted Stevens stories»
enlarge
Dana Vetkouteren JAP
In this artist's rendering, Sen. Ted stevens, R-
Alaska, -answer questions from his defense
attorney Brendan SUllivan as jUdge Emmet G.
Sullivan looks on at federal court-in Washington,
Thursday, Oct.. (AP Photo/Dana
Verkouteren)
"Senator, wl)en you signed those
forms, did you believe they were
accurate and truthful?" asked his
lawyer, Brendan Sullivan.
"Yes sir," Stevens said.
"Did you ever intentionally file false
disclosure forms'?" his lawyer asked.
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"Did you ever engage in any scheme to conceal anything from
the Sen.ate?" Sullival1 asked.
Font size: A I A I A
"NO, I did not," Stevens said.
Judge sends Stevens jurors home for day
Stevens gets help from some friends
Which Stevens will jurors judge?
Stevens' defense rests
Testimony ends in Stevens trial
"No sir," Stevens said.
The 84-year-old Alaska Republican is on trial for failing to repoit more than $250,000 in allepB'i _ St -2192
gifts and services, largely from the oil field service company Veco and its chief executive,.his evens
former friend Bill Allen..Most of the gifts are connected to renovations that doubled the size of the
Stevenses' home.
His testimony, which ended after 20-minutes when <:ourt broke for the day, followed that of his
wife, Catherine, who also testified as a defense witness:
Stevens is not required to take the stand, and couldn't hold it against him if decided against
it, the judge warned him before he began his testimony.
"It's a privilege and a duty," Stevens said just before jurors entered the room to hear his
testimony.
Catherine Stevens/a.lawyer- who appeared calm and.poised while. her husband's
I '1 c..{ A-- - AN- I 3b 0'" .'V"\
----..-.- . - -- - -- ----------------,.
caJ questioned took the standOelP support the defense theory that senator
haC>paicr:air the bills he received in with the renovations of their home. She
often(urned and spoke the jury.
Mrs. Stevens, who oversaw the financial details of the renovation, said she assumed that two Vec<;J
Corp. employees who were on the job site in 2000 and 2001 were being paid by the contractor
that was doing most of the work, Christensen Builders.
"He was working with Christensen Builders," she said of Robert "Rocky" Williams. "He was on the
job there. He was paid by them;" .
Same for David Anderson, another Veco empl.oyee who was working on their home, Catherine
Stevens said.
"He was at the job site. I assumed he was working with Christensen Builders," she said.•
Both workers were on the Veco payroll, according to earlier testimony.
Catherine Stevens also testified when she sent Williams a thank-you gift certificate from Delta
Air Lines for his work on the project, she sent ·it in care of Veco's office in Anchorage.
"I doJi't know why, unless he asked that I send it there," Catherine Stevens said. "He worked for
Veco, I don't know how long."
Earlier in the day, prosecutors wrapped up their cross-examination of defense witness Bob
Persons, Stevens' longtime friend and Girdwood neighbor, who had a power of attorney to obtain.a
buildin"g permit on Stevens' behalf, oversaw the initial construction and handled bills for the family.
Stevens' lawyers called him to strengthen their theory that the senator had paid all the bills he was
given for the,renovations.
Prosecutors grilled Persons, however, pointing to inconsistencies in his testimony.
When Stevens attorney Cary asked Persons about conversations he'd had with Allen, Persons said
he "reminded Bill of all the times that the senator had told him that he had to give him bills for
anything and everything that was done at that house.,"
Yet when prosecutor Nicholas Marsh asked Persons whether he ever got an invoice from Allen, he.
said no.
One of Stevens' defense attorneys asked Persons to describe a February 2006 interview with two
FBI agents. The interview very confusing, Persons said. It "reached a point where I don't know
whether I was answering questions or he was," Persons said, describing the demeanor of one of
the agents wl)o interviewed him at his home in Girdwood.
"It was like being mentally waterboarded," Persons said. "The guy was awful. That was the most
hateful human being I ever met in my life. That guy made me understand why there's a lot of
innocent people in prison." FBI - Stevens-2193
AOVi:RTISEMENT

a'eI'n'.col11
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voluntarily testifies in his defense on the same day his wife is cross-examined
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(10/17/0805:03:20) -
VVASHINGTON -- Sen. Ted Stevens took the-stand in his own defense Tt1ursday afternoon, erasing any doubts
that he would finally break his public silence and answer at least some of the of misconduct dogging
him for the last two years.
After a day in which Stevens' wife faced sharp cross-examination, the jury 'returned from a late afternoon recess
to see lead defense attorney Brendan Sullivan al'}d Stevens standing at the defense table after everyone else sat
down.
The judge summoned the courtroom to then Sullivan announced: "We call'Sen. Ted Stevens."
With Stevens in the witness chair, his experienced trial attorney wasted no getting to the central issue of the,
case: did the 40-year veteran of- the Senate disgrace his career by filing falsE;! disclosl!res to hide some $250,000
in gifts between 1999 and 2006.
"Senator, wh!=!n you signed those forms, did you believe they were accurate and truthful?" asked Sullivan. @.
"Yes, sir," Stevens said.
,"Did you ever intentionally· file false disclosure forms?" his lawyer asked.
"No, I did not," Stevens,said.
"Did you ever engage in any scheme to conceal any-thing' from. Jb.e S_enate?" .Sullivan .asked.
-- - - - -- • - - -,.. - - ....... - - - - • -- -- - .
"No, sir," Stevens said.
The 84-year-old Alaska Republican is on trial on seven counts of filing false seriate disclosures. Most of
alleged gifts were from the Alaska-based oil field service company Veco, now defunct, and its chief executive,
Stevens' former friend Bill Allen. Most of the gifts are connected to renovations ,from 2000 to 2001 that doubled
the size of the Stevenses' Girdwood home, .
After the brief assertion of his innocence, Stevens' lawyer switched to a gentler line of inquiry: a 20-minute
autobiography that begari with Stevens' humble Depression-era origins in Indiana
r
outlined his World War II
career flying transports in Asia, and talked about his journey into law and public service. Stevens told the jury
about the plane crash in Anchorage that killed his first Wife, Ann, and four others. From the stand, Stevens
'acknowledged the only other survivor of the crash, Tony Motley, a former diplomat who sat with other Stevens
supporters in the courtroom Thursday.
Steven? is not required to take the stand, and jurors not hold it against him if he had,decided not to testify,
the judge advised the senator before he began his testimony. FBI _ Stevens-2194
But Stevens, a senator since 1968, faces not just jurors in Washington, D.C., but the first competitive race of his
Senate career back in Alaska. He has been stuck inside a federal courtroom for the past four y.reeks while 3,500
miles away,.the Democratic mayor of Anchorage, Mark Begich, has been campaigning to replace him.
.More than that, he has refused to discuss questions about his own F.BI.
____.__ .. -' - - c.{A.-k#.... __
Does he build houses?,
of public corruption iOska surfaced with a seGof raids on Aug. 31, 200!5.
;;.; ,
IS ADAMANT ABOUT
With the jury, out, U.S. District Judge Emmet Sullivan asked Stevens and Brendan Sullivan to stand before the
,bench and answer questions to ensure Stevens understood his right to n9t testifY. Stevens, once a territorial
prosecutor in. Fairbanks, was adamant about the stand.
"It's a privilege and a duty," he said.
The court recessed for the day as Stevens concluded his autobiography. Brendan Sullivan said he had about two
hours of questions for his client when testimony this morning, then the prosecution will get its tur'n.
The case is to go the jury .early next week,.
Stevens was preceded on the witness stand by his second wife, Catherine, who played ,either a major role or
modest -role in the renovations, depending on which theory of the case to beiieve. The defense says she handled
the Stevens family finances and oversaw the home, but the government has introduced testimony and scores of
e-mails, notes and other contemporaneous documents that show Sen. Stevens himself commenting on details of
the Girdwood renovations ,by Veco ,employees.
Virtually every day for the first 12 days of trial, the government introduced evidence showing that Veco
employees -- particularly electricians and a plumber -- were on the job daily, that the" project's two supervisors,
Robert "Rocky" Williams C!nd Dave Anderson, were paid J)y Veco. Veco pr:.ovided much of the materials for
the renovation and all the later additions and some repairs and furnishings, according to the
There has been no evidence that the Stevens ever paid Veco a penny for. the work. <
'On the other'hand, a parallel work team, fromthe home-buildin'g contraCtor Christensen Builders of AnchOrage,
also worked on the job, mainly doing the carpentry. 'The'Stevenses paid more than $100,000 to Christensen -- all
but one of their invoices. Christensen's final $13,000 invoice was,paid by Allen.
CATHERINE STEVENS STICKS TO HER STORY
.
In her testimony Thursday, Catherine Stevens acknowledged that 'Christensen Builders was recommended by
·Allen.How did·she-know"Allen-had enough experience with 'home contractors-to make' an' intelligent
recommendation, she was asked under cross examination.
"He had a firm involved in construction," she'said.
What kil1d of construction?
"I don't know. what he did," she said.
FBI - Stevens-2195
Stevens replied that Allen's firm works on the North Slope, there were houses on the North Slope, so therefore' he
might have bUilt houses. .
'Every-other witness to testify about Veco's sc.ope of expertise said ifonly encompassed Industriai and -
commercial work, though some employees had prior residential experience.,
Catherine Stevens acknowledged that Williams and Anderson worked on the project but asserted that she
believed they were being paid by Christensen -- even though she said she knew they were Veco employees
before, knew they were Veco employees later, and sent mail to Williams at the Veco offices.
"He was-working with Christensen Builder:s," she said of Williams. "He was on the job there. He was paid by
them."
The same was true for Anderson, She said assumed she OaYing their wages in the
Christensen bills she paid. V- '
, -
:.-
She was the only witness in the case to offer such theory.
Catherine Stevens, also an attorney and former prosecutor, stuck to her story. even under'cross examination by
the lead trial attorney for the government, Brenda Morris. She professed to' not know anything or have any
curiosity about the man who drew the architectural plans, a Veco engineer, including whether he was' qualified: .
She said she had no idea how a large deck appeared on the new first floor of her house a year after Christensen
Builders finished their job -- work done by Veco.
, .
"I don't know who built the deck," Catherine said. "We paid for the deck, I thought."
"Weren't you responsible for paying the renovations at the chalet?" Morris asked. "Who sent you a bill you
thought was paid?"
wife said she called the bookkeeper in her husband's Senate office to see if a bill had come in, but then
said, "I forgot about it" and never followed up.
'IT WASN'T MY FURNITURE'
Under direct testimony, Catherine Stevens continually expressed anger over things she found in her house or
that were added in construction' -- items that came fron:'\' Allen. There'was the grated steel ,steps, built at great
expense by Allen's nephew, Anderson, so snow would fall through and not have to be shoveled:
What was her reaction when she saw it?
"I was extremely angry," she told defense attorney Robert Cary. She wood.
What about the steel platform at the bottom of the steps?
.
"I was extremely upset because they were very dangerous," she said.
How about the big Viking grill that Allen's employees and installed on her deck with a crane?
"I' was angry-because I did not know how-it got'there."'For-some reason, though natural gas was "Illmbed
throughout her house, the fact that the grill used also 'made her angry -- and fearful of fire.
"I did not want any kin,d of gas anything," she said.
How about the furniture Allen gave to her from the apartme'nt he was leaving?
"I was a very unhappy person when I saw it in my chalet," she said. "It wasn't my furniture, and my furniture
wasn't there." .
, . FBI - Stevens-2196
Under cross exahlination, she couldn't explain why, after seven years, she never got rid of the furniture she
disliked so m4ch, or why she didn't demand the contractors take out .the steel stairs, or tell Allen to, rid of the
grill.
-- "YO'll make closeto analfmillio'n aollars ayear, wny can't you get tlli3t out of there?"'Morris asked: "Why does
Bill Allen have to get it out of there?"
She said it belonged to Allen.
"Then send it to the dump!" Morris said. "He doesn't know any better."
Morris, through.her questions, portrayed Catherine Stevens as a wealthy Washingtonian who treated Stevens'
office staff like servants. Stevens aide Barbara Flanders maintained her checkbook, Stevens acknowledged,
, - - - -' . - .- - - .. .
paying billsJrom Nordstrom, Oan Marcus and Sacks Fifth Avenue. S'
, e--' I, '"
"Shei;vas your human ATM machine," Morris said, getting cash when shel1eeded. and sending it home in'Sen.
briefcase.
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Copyright Wed Oct 22 14:29:08 UTe-OaOO 20081900 Anchorage Daily News (www.adn.com)
FBI - Stevens-2197
- -- - -.;..
fl·" •

,Anchorage Daily News
Stevens bristles under cross-exa'mination
By ERIKA BOLSTAND and RI<:HARD MAUER
Anchorage paily News
(10/17/0815:38:05)
- ----------O-------"""'"""""-"'7""""""'li
o
, Print Page ,I Close WinaoYJ
WASHINGTON - Throughout h'is four-week corruption trial, Sen. Ted Stevens has sat quietly, listening to
testimony from tradesmen about free home repairs and gifts, silent as the star witness told jurors that the Alaska
RePl:lblican was merely "covering his ass" he asked for bills.
But by late this afternoon, jurors had gotten a taste of the cranky 84-year-old senator who once called himself
"the meanest man in town."
"Aren't these e-mails really what you're doing, you're covering your bottom?" asked Brenda Morris, the lead
Justice Department prosecutor on his case, ,asking Steve'ns about how he handled a 2004 press inquiry into who
paid for his renovations." .
liMy bottom wasn't-bare, II, Stevens snapped 'back.
Stevens spent a grueling day on the witness stand, beginning with his lawyer gUiding him nearly fo,ur
hours of testimony in tlie morning and early afternoon. In the final houfsof the day, Morris spent more than an
"hour on follow-up
The senator stuck with'the two prevailing themes of his defense: that he wanted none of the gifts he had been
given, and that his wife was responsible for the home ·renovations that led, in part, to his federal indictment.
Stevens is of failing to disclose more than ,$250,000 in gifts, - including free labor - that helped
the square-footage of his modest A-frame cabin in Girdwood,
Stevens, whose 40-year career in the Senate has given him a temperament more accustomed to being the one
the 'questioning; bristled' at haVing to 'He wasn't always-able to control-himself, and-he.
made his dispain forMorris Clear by occasionally responding-to her questions with 'inquiries of his own.
"'I think you better rephrase your question; your question is tautological," he lectured Morris in response to a
question about renovations to his· deck.
Stevens testified he and his wife wanted none Of the gifts and that they ,were especialiy annoyed wnen
returned to their newly renovated home in 2000 and found'that Bill Allen, the chief witness against him,' had
replaced their furniture with used stuff of his own. '
"If you didn't want all these items, why didn't you just ask for your key back?" you
take away his key?" .,
"H,e was a good friend, and I trusted him," Stevens·said.of Allen, former chief of Veco Corp., an oilfield-services
, compaiwand one of the largest 'private employers 'in Alaska'. "H'e did things- I didn't iike-and·I asked him, to
change and he said he would. But he didn't."
in the day, under questioning by his own lawyer, Stevens had accused Allen of lying to jurors about
conversations the two had when they were still friends. •
Allen testified earlier in Stevens' corruption trial that he gave Stevens for work done on the
senator's,home in Girdwood, even Stevens asked for them. Allen, who pleaded guilty last year to bribing
Alaska state lawmakers, agreed to testify in Stevens' trial and two others in exchange leniency in his own '
,sehtendng. '
Stevens Allenis account cl')2006 conversation in Arizona, wherl7-'ey were both vacationing on their
camps" - which th,ey would drink wine and' the desert to shed weight. Allen
testified that he and Stevens talked about the need for the senator to receive invoices for the Veco work on the
house. But Stevens denied the conversation. '
":rhat's just an absolute lie - I heard if," Stevens said, referring to Allen's courtroom testimony. "It's just an
absolute lie."
Stevens also disputed Allen's acc.Qunt of a conversation the two had in Alaska at a restaurant owned by a mutual
friend in Girdwood. Stevens told him he was aware that his friend had done more work on the house than he was
letting on, Allen testified. .
That was "another falsehood," said Stevens.
Stevens also expanded on the "teepee" theory his .lawyer, Brendan Sullivan, first introduced in the opening day of
the trial. His wife was responsible 'for everything inside the teepee, Stevens said.
"What goes on inside" was up to Catherine, Stevens said. "Outside is my business."
When Stevens described his initial vision for renovating their cabin by adding a garage and a bunkroom on the
first floor, he testified that it wasn't what his wife wanted and, therefore, they came up with a more elegant
design. .
"When she said she didn't like that plan, ,there was a new plan, and there was no argument," Stevens said. "And
I wasn't unhappy about it. I was happy about that."
Catherine was in charge of all of it, Stevens testified. She'obtained the line of credit, maintained the checkbook
> for of the bills. She paid them all too, Stevens said.
"She got all the bills and paid all the bills," he said.
Yet Stevens himself demonstrated extensive knowledge of how much money was going into the project. He asked
his old law school friend, George Reycraft, to dissolve a trust worth about $50,000. to devote to the renovations.
He instructed his bookkeeper to open up a bank account with $10;000, and he and' his wife took out a line of
credit together. ..
Stevens - and not his wife - also met witn the Veco engineer who drew up tne plans for the house. Once the
drawings were complete, he wrote a note to the engineer asking for a bill, telling him that "under Senate rules, I
must pay you for what you have done," and adding, "Now I want you'to give us a bill for your work."
He never got a bill from Veco or the engineer, John Hess, Stevens testified today, and could not find any record
of Hess replying to his letter. . . '
Stevens' wife had a differing version of the story Thursday, when she testified. Hess'.design was drawn up before
they hired their main contractor, Christensen BUilders, but Catherine Stevens testified she thought they were
payingJor the plans through Christensen Builders. FBI - Stevens-2199
. "I assume that it was part of the contract when we were paying for the construction of the chalet," she testified
Thursday.
"You just took a draWing from someone you never met?" asked the prosecutor.
"Yep," said Catherine Stevens.
The trial, which began Sept. 22 with jury selection, is likely to conclude Monday.
The jury could begin deliberations as soon as Tuesday.
__·
Anchorage Daily News
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Senator spars with_ prosecutor
STEVENS TRIAL: He si!lYs he concealed nothing: There was nothing to conceal.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/18/0803:57:34)
WASHINGTON -- As it was, the witness chair was an unfamiliar venue for the senator of 40 years. But the
aggressive, hostile questions-Friday from a senior'government prosecutor landed hard on Sen. Ted Stevens,
famed for his short fuse.
Baited with rapid-fire challenges to his,integrity, honesty and credibility, Stevens mainly answered "yes" or "no"
before a jury that will soon be judging h'im, and keeping to his story that he didn't believe he received any gifts
from the oil-field service company Veco or its chairlT!an, Bill Allen. We...
Earlier Friday, questioned by own attorney, Stevens dismissed earlier testimony from Allen that the senator
once acknowledged owing the Veco boss money for the work. He calJed what Allen,said in court "an absolute lie."
By late Friday afternoon; jurors had gotten a taste of the testy 84-year-old senator, who once called himself "the
meanest man in town."
"Aren't these e-ri'lails really what you're doing, you're covering your -asked Brenda Morris, the lead
Justice ()n his asking_Stevens how he,-handled a 2004 pr:ess inquIry into who
paid for his renovations. The question referred back to the most memorable'line ofttie trial, when Allen testified
Qct. 1 that ?tevens was just "covering his ass" in asking for invoices he had no intention of paying.
"My bottom wasn't bare," Steven-s snapped back at Morris.
Stevens spent a grueling day on the witness stand, beginning with his lawyer guiding him through nearly four
hours of testimony in the morning and early afternoon. Morris spent more than an hour on follow-up questions
before the trial the weekend. Stevens is To be oack in the witness chair Mohday morning.
Stevens is charged in a seven-count felony indictment with lying on Senate disclosure forms from 1999-2006 by
failing to report gifts, services and other beneJits. Most were from Veco or Allen,"both deeply involved In the
renovations on Stevens' official residence in Girdwood starting in 20QO.
Stevens' veteran defense a.ttorney, Brendan Sullivan, spent most of the direct going over the list of
allegeq gifts item by item, with Stevens' specific refutation.
E-MAIL EviDENCE
FBI - Stevens-2200
The process, used by both prosecution and defense, has become almost,a rite: The witness, in this case Stevens,
is directed to read a passage in an e-mail or note projected 6n monitors throughout the courtroom, including a
large number of flat-screen panels shared by jurors. Often the same correspondence is used by-the opposing
side, only witli aifferent empnasis. - - - - - - • -
By now, some jurors probably by. heart the first three sente.nces of Government's Exhibit 509. It's
come up with both Allen and Stevens to prove the government's case that Stevens knew about the work Veco did
on his home, and by the defense to prove'Stevens' intentions were honest. .
The· exhibit is a- handwritten note from Stevens to Allen on Nov. 8, 2002 -- a few days after Stevens won his sixth
full term.
-'81D- {'7 t.t;r-k,iV,-{s(;;40-.-v\,
__._
"Many for all you have donnmake our living easier and our honQore enjoyable. The Christmas lights
topJt all -- our 80-foot tree the highest point! II _.
Y -
The lights, in fact, have turned Into a key matter of contention. Veco installed hundreds of feet of rope lighting on
the house, then built an.underground cable to the spruce and"installed two electric boxes and weather-proof
outlets on the trunk. Veco workers ran the lights up the tree using a boom truck.
Despite the note, Stevens said he didn't like the lights and only wanted Allen to find someone to put up his own
small colored lights he stored in his garage. Some of,the strands he bought at post-Christmas sales, he said.
The third sentence in Government Exhibit 509 is: "Don't forget we need'a bill for what's'been done at the
Chalet."
Stevens never got a bill from Allen.
UNWANTED 'GIFTS'
The tedious list of refutations by Stevens during his direct examin,ation quick fodder for Morris when sfle
opened her cross examination with a jolt. -
You didn't want the rope lights, she asked.
That's right, said Stevens.
•You didn't want the first-floor deck?
I said I didn't expect it, corrected Stevens.
You didn't want the plastic roof over the deck?
I didn't know about that, said Stevens.
You didn't want the steel staircase?
No..
You didn't want the gas grill?
No.
You didn't want the fish statue?
No..
You didn't know about the repairs to the garage?
I did.
You didn't want the big blf3ck- furniture?
No.
You didn't want the tools?
No.
FBI - Stevens-2201
Stevens said all those items appeared without him asking, starting in 2001. He couldn't stop Allen from giving
them to Dim. 0 0
didn't want all these items, why didn't you for the key back?" Morris said.
"Because we .were still friends," Stevens said. "He was still using the place more than I was."
"You were the 'Lion of the Senate,'" she said, a sarcastic reference to character witness testimony earlier in the
week by Sen. Orr,in Hatch. "But you didn't know how to stop a man from putting stuff in your place?"
was a good frie'ild," Stevens again said of Allen.
"He did things I didn't like and I asked him to change and he said he would," Stevens added later. "But he
didn't."
JUNK-YARD STAIRCASE
Stevens continually denied knowing that Veco itself provided any material or labor. But pressed on the
steel staircase, custom-welded by Allen's nephew, Stevens said that Allen told him it came from the junk yard
after it was removed from an oil platform
. Did Allen have a junk yard-in his home, Morris asked, or was it Veco's junk yard?
Stevens said he figured its cost was folded into the bills his wife actually paid to ol')e of the contractors,
Christensen Buildings. The·owner of-the company had earlier testified he had.nothing to do with the staircase.
Over the course of the trial, the jury has had a crash in Alaskaology: the state's vast
distances arid regions, its unique Native corporations, dog'mushing, the Kenai River and salmon fishing, the
conflict between sport and commercial fishermen, Girdwood roof and heat tape, moose'on the
hfghwa-ys, -time'zones, Statehood, the unending number of people 'planning to ayear or two'
only to stay for decades, and lots more.
Stevens added two new ones.
While Stevens fI1ade several requests fc;>r bills over the course of the cabin renovation, Morris noted, why didn't
he ever ask for the price? The Veco architect who drew plans -- Stevens sent him a note at his Veco office; asking
fo"t a Dill. Yet Stevens- never:asked, before or after,·how much-the-plans would cost -- if:he was serious about
paying, why did' he not get'an estimate first, Morris asked. '
"I don't ask him about his hourly wage. I just asked him- for his 'bill. That's the Alaska way," Stevens said.
Did he check the architect's references, see whe,ther was Iicens.ed? No, said' Stevens, he trusted Allen's
recommendation. .
Did he see whether the architect was bonded?
, FBI - Stevens-2202
"We don't require anyone to have a bond," Stevens said. "That's not the Alaska way."
the architect, John Hess, was a Veco engineer who testified that he drew up the plans on company time. Hess
wrote Stevens back that he couldn't for his time -- Stevens would have to pay Veco, he said.
Stevens said he never got that reply from Hess'.
Stevens bristled at times during the cross-examination, having to wait for a question before he could rep"ly.
Sometimes the judge intervened. Stevens showed his disdain for Morris' questions by occasionally-responding
with inquiries of his own.
"I think you better rephrase your question, your question is tautological," he lectured Morris in response to a
to his deck. "
And a,brief moment, Stevens GMorris traded roles. 0

said he knew he was getting gifts when he sought a bill.
"If it's a gift, .why did I ask for a bill?" said Stevens, redirecting the question to Morris.
"To cover your butt," she replied.
"That wasn't..fair, ma'am," Stevens said.
WORKING ARRANGEMENTS
Earlier in the day, under questioning by his own lawyer, Stevens· had accused Allen of lying, to jurors about
conversations the two had when they were still friends.
Allen testified earlier il'1 Stevens' corruption trial that he never gave Stevens invoices for work done on the
.senator's·home in Girdwood, even though.Stevens asked for them. Allen, who pleaded guilty last year to bribing
Alaska state lawmakers, agreed to testify in Stevens' trial and two others in exchange for leniency in his own
sentencing. .
Stevens disputed Allen's of a 2006 conversation in Arizona, where they were'both vacationing on their
annual "boot camps" -- get-togethers where they would drink wine and walk in the desert to shed weight. Allen
testified that he and Stevens talked about the need for the senator' to. receive invoices for the Veco work on the
house. But Stevens denied the conversation.
"That's jusfan absolute lie, I heard it," Stevens said, referring to A!len's courtroom "It's just an
absolute lie."
Stevens also expanded on the "teepee" ,theory his lawyer, Brendan 'Sullivan, first introduced in the ope'ning day of
the trial. His wife was responsible for everything inside teepee, Stevens said.
"What goes on inside" was up to Catherine, Stevens said. "Outside is my business." That system suited them
• both, he said. '
his jnitial vision for renovating their cabin by adding a garage and a bunkroom on the
floor, he that Wasn't what ti}s wife warffed and, 'therefore, they came up wi til a more elegant
design.
"When she said she didn't like that plan, there was a new plan, and there was no argument," Stevens said. "And
I wasn't unhappy about it."
Catherine .was in charge of all of it, Stevens testified. She obtained the line of credit, maintained the checkbook
for their house-related expenses and received all of the bills. She paid them all, too, Stevens said. .
"She got all the bills and paid all the bills," he said.
FBI - Stevens-2203
Yet Stevens himself demonstrated extensive knovyledge of how much money was going into the project. He asked
his old law school friend, George Reycraft, .to dissolve a trust worth about to devote to the renovations.
He instructed his bookkeeper to open up a-bank account with $10,000, and he and his wife took out a line of
credit together. - -
The trial, which began Sept. 22 with jUry selection, is likely to cqnclu.de Monday. The jury could begin
deliberations as soon as Tuesday. "
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Which.Stevens will jurors 'judge?
ARGUMENTS: Attorneys present
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/2J/0820:35:23)
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WASHINGTON - The man Alaskans have chosen to represent them in the U.S. Senate for 40 years was decried
I by prosecutors Tuesday as mean-spirited, sputtering liar who is so lacking in character th'at he'd blame anyone - .
including his wife - to avoid shouldering responsibility himself. •
Not so, countered defense attorney Brendan Sullivan: "They ask you ,to brand him a criminal, tarnish everything
he's done for 84 years, despite the fact the evidence is unrefuted that he's an honorable, man."
Thus two, visions of Sen. Ted Stevens, 84, clashed-in sharp relief as a federal jury heard six hours of closing
arguments in his disclosure trial. Stevens, who's running for re-election, is charged in a
of lying year after year about gifts benefits on his official Sel'1ate disclosure statements.
The central item is the renovation of his house in Girdwood from 2000 to 2001, in which'the oil-field service
company Veco, under chairman Allen, provided substantial labor and material.
But the government also brought in evidence of other'gifts from 1999 through 2006 from Allen, Veco, and friends
, B9b and Jeanie Penney and Bob,Persons, owner of. t!'le M_usky in They include a
'powerful back-u'p ge"nerator, an outdoor gas range, an expensive massage chair, a puppy of sled-dog pedigree, a
stained glass window, furniture, tools and home repairs and improvements.
U.S. District Court Judge Emmet Sullivan said he will deliver about two hours of instructions to the jury this
morning before it retires for deliberations. Then, after a trial spanning nearly a month, the waiting begins.
Under court rules, prosecutors had two shots for their arguments, with the defense sandwiched in the middle.
Each'side'had three-hours'to"make its case. ' '-
GOOD FRIEND NAMED ALLEN
Joe Bottini, an assistant U.S. Attorney from Anchorage on loan to the Justice Department's Public Integrity
Section in its broa,d investigation of-public corruption in Alaska, began the government's case with a soft-spoken,
methodical rendition of its evidence. .-
Bottini re-introduced the players in the drama, leading with Allen.
FBI - Stevens-2204
"Ted Stevens had a good friend afld his name was Bill Allen," Bottini said. Stevens knew that Allen would give
him "hundreds of thousands of dollars of free benefits," Bottini said.
Bottini cut to a short au'dio clip of Allen and talking in a.wiretapped conversation.
- - . - - - - - - - -- - - - - - - - - -- - - -
"Ted gets hysterical when he has to spend his own money," Persons told Allen. "The flip side of it is, he can't,
really afford· to pay a bunch of money."
That's where's were Allen came in, Bottini said.
"Bill Allen was rich, Bill Allen was generous - Bill Allen was not hysterical about spending his own money/' Bottini
told the jury. .
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Th;: in 1999, when Ste@, fearful of-a Y2K power failure, to "hoqk generator.
In his Stevens said he meant he wanted Allen to rent a smal! portable unit just for the period around
New Years Eve._ What he got was a generator that was lifted with a crane, installed in a permanent shed and
wired to the house with an automatic switch that started up' if the power went off -- a $6,OOO-plus set-up. The
next fall, when Veco began working on his addition, it moved the generator to the other side of the house and
put in a new transfer switch with double the rating.
,Stevens knew full well what he got, Bottini said, and never told Allen to get rid of it, or made an offer to pay for
it. Yet he never listed the generator as a gift. .
"He disclosed nothing because he didn't want anyone.to know," Bottini said. "Can you imagine what the press
would have done if he put it on that form? It would have been front-page news." The pressure frol1) the public
would have put a ?top to any more Bottini said.
Bottini went through the list of smaller items. Anticipating that the defense might ridicule the prosecution for
"making afederal case about this dog," Bottini explained thatthe dog showed how,Stevens engineered a cover
up in 2004. ';
"The case isn't about the dog. It's about what he did," Bottini ·said.
'CLASSIC COVER-UP'
According to testimony, Stevens was ogling a blue-eyed, white-fur husky puppy at the·Kenai River Classic charity
auctiol) in 2003. He made an early bid, but Penney, an. Anchorage real estate developer with a passion for Kenai
River sportfishing, won the dog for $1,000. Stevens ended up with the dog anyway. The follOWing May, when he
w'as his disclos.ure, he sent e-mails to Penney ana other,s- sugges.ting that he couldn't accept the d99 as
a'$l,OOO gift-'because that,was over the gift limit.
"He calls it his, pardon me, his 'goddam' disclosure form," Bottini said, quoting one of the e-mails. "That pretty
much displays his attitude." ,
By the time Stevens' filled out his disclosure, it became a,$250 gift. How? Penney claimed he donated the $1,000
dog not directly to Stevens ,but to the Kenai River Sport Fishing Association. The a'ssociatlon then donated the
- dog to Stevens, as a. $250 - within the Senate rules.
"This is a classic cover-up, ladies and gentlemen," Bottini said. "What they tried to do is structure a_st(rry so that
he launders the dog through the Classic."
While the dog and other gifts played out among his small circle of friends, the home remodel was something else:
It took place. in public and required specialist contractors who cOl,Jldn't be trusted - or who may not want to give
Stevens anything, Bottini said.
The solution? Have a mix of contractors paid by Stevens arid w9rkers from Veco - 19 in all - paid by Allen. As
Bottini spoke, the names of the Veco workers appeared on a monitor.
FBI - Stevens-220S
Stevens and his wife paid about $160,000 to the contractors. The value of Veco's work, even after the jUdge
removed some of the eVidence, was at least $100;OOO,-Bottini said. .
Even if Veco didn't do the most because it specialized-in 9i1fieid construction, SO Wliat. "He--knew·that
the price was right - he was going to get this work.for free," Bottini said.
'INNOCENT MAN'
Stevens' lawyer, Sullivan, accused prosecutors of offering a "twisted" account of Sen. Ted Stevens' life over the
past eight years. He told jurors that "you have an innocent man on your hands" and that government
irvestigators have the case against the Republican senator.
"If you look at life through a filthy, dirty glass, then'the whole woria looks dii"f'i," Sullivan'saidofthe corruption

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ca,se ttie,Justice Depa'rtment t"\Jght Stevens. "You he()evidence that this is a very decent
rnan. Would tie be involved in a cclQPiracy, 'year after year, covering up?' .
;,
Sullivan, famous for his courtroom theatrics, modulated his voice, rising from shoutS of outrage with his arms
over his head to soft-spoken, almost intimate conversation. At one point, jurors in the back row stopped
him and said they couldn't hear his words.
Sullivan reminded jurors that in a case such as this, where Stevens' truthfulness is at stake, they can take into
account the testimony of character witnesses. A parade of character witnesses, including Gen. Colin Powell,
testified to Stevens' truthfulness, and integrity earlier in the trial. .
"The law thinks that a good life is Y"orth something," Sullivan said. "It permits that kind of evidence so that you
can rely upon it when you have to go in that room to make a decision that affects his life.'" Sullivan also used his
time to focus on the same themes that he worked to elicit from Stevens himself when the senator took the stand
in his own defense in the final three days of the triaL
Stevens maintained throughout his own testimony that he didn't want the things he .was given ana that he never
received bills for some of the work done on his home, even though he asked for invoices. He placed the blame on
his wife, Catherine, saying repeatedly that she was responsible for overseeing the renovations that led, in part, to
his federal
'''They believed they. paid their debts and· they didn't think they were getting anything for free," Sullivan said.
Sulliyan ridiculed the government's case as an effort to paint as mastermind of conspiracy."
"Honest, truthful men like that don't engage in six-year conspiracies," he said.
On the other hand, Allen, the government's chief witness, had a,strong motive. to lie, Sullivan said. Allen was
protecting his family-in the deal 'he mace with the government when he pleaded gUilty to bribing state legislators,
he said. In the deal, the government agreed to not prosecute his son, Mark, or any other family member.
"What will a man say on the witness stand to prevent his children from being charged?" Sullivan suddenlYr
thundered in the courtroom. "Have you ever heard of a motive to lie worse than holding your family and son
hostage?" .
'STAND UP TO HIM'
. "
Look beyond his title of senator, said Brenda Morris, the lead Justice Department prosecutor on the case, as she
concluded the government's closing arguments. '
"I ·ask you. to do something that very few people have done," Morris said, recalling Stevens' sometimes snarling,
responses to her cross examination. "Stand up to him. Behind all that growling, a"nd eili those snappy comebacks,
and that righteous indignation, he's just a. man'. He should stand up and take responsibility like everyone who
comes into the courtroom. Make him responsible."
Stevens was eloquent on the stand when he spoke of his own accomplishments, Morris said.. But y.lhen. he was
asked about the renovations,-she said, "he started stuttering and sputtering. Because he can't answer that
because what he was telling you nonsense.'" .
-Norethan the otherlWcnawyers,-' Morris personally with the jury, asking, them to,think what-it _
would be like to talk about the case in a friend's kitchen. .
FBI - Stevens-2206
"Don't leave your common sense at door," she said.
Recalling all the times Stevens said that he was surprised to find itel1)s left by Allen, Morris said: "Maybe since
the defendant lives so close to the North Pole, maybe Santa and his elves came down and did this work and
completed it. He had n9 ideeL"
St'evens said his wife managetlthe 'but the testimony only-showed·her writing. checks,and,
making. Some minor decorating deOns, Morris said. O·
.' I . .
"Why alfthe sudden now is Catherine going to be responsible for this renovation? She's the shaker on
this? All you see her name associated with is the starfish knobs and paint," Mords said. "He testified here on
Friday that his wife explained herself quite well," Morris said of Stevens. "That woman, Catherine 'Stevens, is still
recovering from the bus he threw her under." .
Through most of her presentatio':l, Stevens sat with his eyes closed, his face gray. How could Stevens not be able
to stop Allen from giving him things, she said.
"He didn't know how to get his key back?" she asked, reminding the jury that even after he changed the locks, he
gave· Allen the new key. "He didn't know how stop a crazy man from putting stuff all up in his house?"
She said Stevens kept changing his story as his needs changed.
"What is consistent is that everyone is to blame but the defendant," she said. It was Bill Allen's fault. It was his
wife's fault. It was his secretary's fault. It was the fault of Veco employees.
"This is a lawyer. This is a man who knows details. And it's everyone's fault but his," she said.
, . ,
Contact the reporters: rmauer@adn.com and ebolstad@adn:com
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FBI - Stevens-2207
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Stevens' defense rests
TRIAL: Senator witness; final arguments are scheduled for today.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
\!' (10/21/0800:36:26)
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WASHINGTON -- The defense rested Monday in Sen. Ted Stevens' disclosure trial after the Alaska senator spent
",
another tense, and at times contentious, three hours In the witness chair.
For the second day, Stevens was confronted with contradictions in his story by the lead prosecutor in the' case,
. Brenda Morris. If Stevens didn't consider furniture from Veco chairman Bill Allen a gift when he received it in
2001, for instance, why did he offer it to his son Ben in 2005?
Stevens replied that he never owned the furniture.
How about the $2,695 massage chair that Girdwood neighbor and Double Musky owner Bob Persons had
delivered to Stevens' Washington home ,n 2001 and intended it to be a present, based on e-mails Persons sent
when he first attempted to get the chair?
It was not a gift, Stevens said. It belongs to Persons. It's just been in his 'house in Washington for seven years.
,,'1' told him).wolM.not i.5.as a giJt," said. "We have lots of things In our hOl,lse that do not
,with us." - .
Then how the e-mail in December 2001 which Stevens sent to Persons, Morris asked. "The chair arrived
and it's great, you can't tell him how much you enjoyed it. Why are you thanking him for a loan?" she asked.
"Because that's what he said It would be,:' Stevens replied.
In fad, he tQ ship the chair back to Persons in Alaska with other'furniture-from Washington
to use In the Girdwood house, but there wasn't any room in the "'- the 'place was filled with Allen's stuff,
he said.
Where was his original furniture?
"Bill Allen stole our furniture and put his in our chalet," said.
"Why didn't you call the police?" Morris asked.
FBI - Stevens-2208
"It never crossed my mind to the police at that tirpe," Stevens said. "I might now."
CLOSING ARGUMENTS TODAY
U.S. DistriCt Judge Emmet Sullivan sent the jury at lunchtime with instruction to -return for 'closing
arguments at 9:30 a.m. today.. .
sides were planning three hours each to sum up their case. Sullivan then plans to instruct jurors in the law
Wednesday morning 'before identifying and'dismissing the four alternates and sending the remaining 12 to the
jury room for deliberations.
Even as his trial unfolded over the last month in a courtroom in Washington, stevens' surrogates have been
.q.mning campaign for: as.evel1th flJ:1J in Ala.ska against·Anchorage·Mayor
ICZ.'1.A----.t\-...vr (3i;;;io -A e. "
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Mark'Beigicn, a Democrat.
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But each day that passes without a verdict is one day closer to'the Nov. 4 election with the central question in
the Senate race -- Stevens' guilt or innocence -- unanswered.
a Republican, had sought an early trial date hoping he could face vQters riding crest of a not-guilty
verdict. But with 15 days of testimony and additional time spent on legal wrangling, the case will get to the jury
just two weeks before the election. lead prosecutor Brenda Morris from tl}e Justice Department's Pubiic Integrity
Section began her cross-examination of Stevens on Monday. where she left off Friday: the free stuff that
appeared at his home in Girdwood from Bill Allen, the chairman of the oil-field service company Veco and a big-
1> time Republican contributor. Stevens and Catherine said they didn't ask for the furniture that Allen brought
from his old apartment in Anchorage in 2001 -- hated it; in fact.
\: The furniture was never listed as a gift on Stevens' disclosure forms, a Senate requirement for presents over
$260 that year.
The government charges that Veco, Allen and other Alaska friends of Stevens gave him at least $250,000 in gifts,
and other benefits from 1999 to 2006. The gifts themselves weren't illegal, prosecutors say. Rather, it was
Stevens' cover up -- his alleged failure to report them, they said. His motive? Keep Alaska voters in. the dark so
they wouldn't question his ethics, prosecutors said.
FURNITURE, SERVICES AND BEN STEVENS
Stevens has offered a variety of explanations for why he committed no crime. He thought he paid for some,of the
services, like the major renovations of his Girdwood.home from 2000-2001, and some-of the Veco-provided
maintenance and rep'airs that followed. ,Some things he never wanted and when they arrived, he didn't
Other jteros were loans, he said.
"The big,- black leather furniture that Bm Allen left at your house -: do you recall?" Morris aske.d her cross
examination resumed Monday. . . - . . -.'
"Yes," Stevens said.
"With the cigarette burns?" said Morris.
. - "That's correct," said $tevens.
remains there?" said Morris o.f the furniture that arrived in '2001.
"Yes," said Stevens.
Morris showed Stevens an e-mail he sent to Allen on July 14, 2005.
"Ben and Elizaqeth are looking at a larger house," the e-mail said. "We told them if they got one we'd let them
have the black furniture you brought to the Chalet. I hope that is OK. Is the old !:'ad still
t-tsl ::,tevens £lu
Morris asked Stevens, "You're trying to regift the furniture that's so hideous to your son, isn't that correct?"
, .
That's the. same Ben Stevens who got $243,000 from Veco, Morris asked, referring to a brief reference earlier in
the case to "consult,ing fees" Veco paid to Ben. '
"He worked for Veco, I don't know how much money he got," Stevens said.
The same Ben who made $ns,OOO.from the Special Olympics! Morris said,. referring to what she earlier
said were.newspaper reports of Ben Stevens' salary when he ran the Anchorage committee putting on the wihter
• _' _. - -" - -_ -- L -.
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games in.200!. •
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Stevens said he didn't,know how much his son_ was paid.
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FBI - Stevens-2210
WhY.would Stevens give furniture to son that he didn't own in the first place, Morris asked.
Referring,to the e-mail to Allen, Stevens replied, "Why would I ask for permission if it's a gift to me?"
That brought an admonishment from the judge to him: "Answer the question, si.r."
• 'GO RIGHT ,AHEAD WITH YOUR QUESTIONS, MISS'
t. On Friday, Stevens, famous for his testiness, answered many with, questions of his own, but the Judge's
r'ebuke:seemed to have had an effect Monday.
Stevens answered most the questions with "Yes, ma'am" or "No ma'am," but a few times he curtly called Morris
"Miss."
For instance, when Morris was questioning him about his possession of a $29,000 fish sculpture on his deck,that
he claimed was a gift to his future senatorial library "when I'm gone," he said, "It belongs to the foundation....
You go right ahead with your questions, Miss."
'At one poillt in her cross examination, Morris tried setting a trap for Stevens over who was paying the ,salary of
-Rocky Williams, the Veco supervisor on the Girdwood re-modeling project. The evidence in- the trial'was that
Williams was pa,id by Veco, making his work a gift to Stevens. But did Stevens know that when he'compiled his
disclosure forms for the years 2000 and 2001?
In.late September 2000, when work-on the house· was well under way-With Williams ahd other Veco workers-
framing the addition that doubled the size of the house, Allen recommended hire Christensen Builders of
Anchorage, owned by Augie Paone, for carpentry and cabinet work. From then until arour;ld March 2001,
Catherine Stevens paid Christensen more than $iOO,OOO for the work -- less than half the total cost of the
project, according to the government. '
Catherine Stevens earlier testified that she assumed she paid Williams' salary through Christensen's bills -- even
though she knew he worked for Veco before and after the project imd received mail at Veco's 'headquarters
dl!rfng the--profect. - - - - - - .- - - - - -- - - -
With Ted Stevens on the stand, Morris began a methodical 'display of e-mail'messages received and sent by the
senator that referenced Williams. Most were from Persons, who kept his eye on the project for Stevens.
. .
On July 2'0, 2000, Persons wrote Stevens, "Rocky will begin the (addition) drawings Friday and hopefully will have
them for me on Monday,"
Aug. 23, 2000: "I kind of torment Rocky to keep him concentrating on the chalet rather than all the projects' Bill
keeps him working on." '
'Sept. 10, 2000: "I can't emphasize enough how r:nuch and how well Rocky does, Bill has a true ger:n there. The
guy wqrks seven days a week on Bill's projects."
- - -- - - - .. -
Sept. 11, 2000: "Rocky is pretty impatient to,get the plywood on the walls because the north wind.is beginning to
blow."
"There's no mention of Augie in this e-mail 'and there's no Christensen Builders at this point, is there?" Morris
asked.
"No," said Stevens.
that sometif'"'\ Williams worked Veco. "Bu.t on my house, he's for
.. me.".5tevens said he had, no idea he paid Williams -- that was his wife·::; department.
'.' -
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"Catherine paid for the work that was done at our house, she paid the bills and that's all there is to it," Stevens
said, in what ended up being the final words by the final witness in his trial.
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FBI - Stevens-2211
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Anchomge Daily News
Testimony ends in Stevens trial
Testimony ends in Stevens trial
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News

!,; WASHIN<;'TON - The defense rested Monday in Sen. Ted Stevens' disclosure trial after the Alaska senator spent
another tense, and at times contentious, three hours in the witness chair.
For the second d,ay, Stevens was confronted with contradictions in his story by the lead prosecutor in the case,
Brenda Morris. If Stevens didn't consider furniture from Veco chairman Bill Allen a gift when he received in 2001,
for instance, why did he offer it to his son ,Ben in 2005?
Stevens replied that he never owned the furniture.,
How about the $2,695 massage chair that Girdwood neighbor and Double Musky, owner Bob Persons had
delivered to Stevens' Washington home in 2001 and intended it to be a present, based on e-mails Persons sent
when he first attempted to get the chair?

It was not a gift, Stevens said. It belongs to Persons. It's just been in his house in Washington for seven years.
"I told hir:D 1_ woulcf n_ota.ccept is as a gift," Stevens said. "We have lots of things in our house that 90 not belong
With us.," ' - , - - '
Then how about the e-mail in December 2001 which Stevens sent to Persons, Morris asked. "The· chair arrived
and it's great, you can't tell him how much you enjoyed it. Why are you thanking him for a loan'?" she asked.
. ,
"Because that's what he said it would be," Stevens replied.
In fact, Stevens said, he planned to ship -the chair back to Persons iii Alaska With other furniture from Washington
to use in the Girdwood flo'use, but there wasn't any room in the "chalet" - the "place was filled with Allen's stuff,
he said.
Where was his original furniture?
"Bill Allen stole our furniture and put in our chalet," Stevens said.
'''Why didn't you call the police?" Morris asked.
. FBI - Stevens-2212
"It never cro,ssed my mind to call the police at that tim,e," Stevens said. "I might now."
U.S. 'District Juqge Emmet Sullivan sent the jury home at lunchtime with instruction to return for closing
arguments __
Both sides were planning three hours each to sum up their case. Sullivan then plans ,to instruct jurors in the law
Wednesday morning before identifying and dismissing the four and sending the remaining 12 to,the
jUry room for deliberations.
Even as his trial unfolded over the last month in a courtroom in Stevens' have been
running his re-election campaign for a seventh full, term 3,500 miles back in Alaska against Anchorage Mayor
Mark-Begich, a Democrat.
B1:Jt that·passes.without is one day closer to the Nov. OtiOh with the central ,question in
the5enate race - Stevens' guilt orWocence - unanswered. . . .
Stevens, a Republican, had sought an early trial date hoping he could face voters riding the crest of a not-guilty
verdict. Blit with'15 days of testimony and additional time spent on legal wrangling, the case will get to the jury
jiJst two weeks before the election. Lead 'prosecutor Brenda Morris from the Justice Department's Public Integrity
Section began,her cross examination of Stevens on Monday where she left off Friday: the free stuff that appeared
at his home in Bill Allen, the chairman of the oil-field service company Veco and a big-time
Republican contributor. Stevens and wife Catherine said they didn't ask for furnitu.re that Allen brought from
his old apartment in Anchorage in 2001 - hated it, .in fact. .
• The furniture was never listed as a gift on Stevens' disclosure forms, a Senate requirement for presents over
$260 that year.

The government charges that Veco, Allen 'and other Alaska friends of Stevens gave him at least $250,000 in gifts
and other benefits from 1999 to 2006. The gifts themselves weren't illegal, prosecutors say. Rather, it was
Stevens' cover up - his alleged failure to report them, they said. His motive? Keep Alaska' voters ill the dark to
they wouldn't question his. prosecutors. said.
Stevens has offered a variety of explanations for why he committed no crime. He thought he paid for some of the
services, like the major renovations. of his Girdwood ho·me·from 2000-2001" and some of the Veco-provided
,maintenance and repairs that followed. Some things he never wanted and when they arrived, he didn't use.
Other items were loans, he said'..
"The big, black"leather furniture that BiitAllen left atvour - do you recall?" Morris asked when her cross
examination resumed Monday.
"Yes," Stevens said..
"With the cigarette .burns?" said Morris.
"That's correct," said Stevens.
"It remains there?" said Morris of the fu!niture that arriv(;!d in 2001.
"Yes," said .$tevens.
f'1orris showed Stevens an e-mail he sent to Allen on July 14, 2005.
"Ben and Elizabeth are looking at a larger house," the e-mail said. "We told them if they got one we'd let them
have the black furniture you brought to the Chalet. I hope that is OK. Is the old stuff we had still in, the
warehouse?'" ' . .
Morris asked Stevens, "You're trying to .regift the furniture that's so hideous to your son, isn't that correct?"
"No " said Stevens , .
FBI - Stevens-2213
That's the.same Ben Stevens who got $243,000 from Veco, Morris asked, referring to abrief reference earlier in
the case to "consulting fees" Veco paid to Ben. .
"He worked for Veco, I don't know how much money he got," Stevens said.
The same Ben Stevens who made $715,000 from the Special Olympics? Morris said, referring to what she earlier
said were newspaper of Ben Stevens' salary when he ran the Anchorage committee putting on the winter
games in 2001. .
Stevens said he didn't know how much his son was paid.
- '" - -
_'_ ===
Whl.... give furniture Os son that didn't own in the firsOe, Morris asked.
Referring to ,the e-mail to Allen, Stevens replied, "Why woul.d I ask for permission if it's a gift to me?"
That brought an admonishment from the judge to him: "Answer the question, sir."
On Friday, Stevens, famous for his testiness,. answered many questions with questions of his own, but the judge's
rebuke seemed to have had an effect Monday. •
Stevens answered most the questions with "Yes, ma'am" or "No ma'am," but a few times he curtly called Morris
• "Miss."
For instance, when Morris was questioning him about his possession of a $29,000 fish sculpture on his deck that
t he claimed was a gift to his future senatorial library "when I'm gone," he said, "It belongs to the foundation...
You go right ahead with your questions, Miss."
At one point in her cross examination, Morris tried setting a trap for Stevens over who was paying the salary of
,Rocky Williams, the Veco supervisor on the Girdwood remodeling project. The uncontroverted evidence In the
trial was that Williams was paid by Veco, making his work a gift to Stevens. But did Stevens know that when he
compiled his disclosure forms for the years 2000 and 2001?
In September 2000, when work on the house was well under way with Williams and other Veco workers
framing the addition that doubled the size of the house, Allen recommended Stevens hire Christensen Builders of
owned by Augie Paone, for carpentry and cabinet work. From then untilaround March 2001, Catherine
Stevens paid Christensen more·than $100,000 for the work - less than half the total cost of the project, according
to the government. . .
Catherine Stevens earlier testified that she assumed she paid Williams' salary through Christensen's bills - even
though she-knew-he worked for Veco before and after the project and.received-mail at Veco's_ headquarters
during the
With Ted Stevens on the stand, Morris began a methodical display of e-mail messages received and sent by the
senator that referenced Williams. Most were from Persons, who kept his eye on the project for Stevens.
< •
On July 20, 2000, Persons wrote Stevens,.IIRocky will begin the (addition) drawings Friday and hopefully will have
them for me on Monday."
Aug. 23, 2000: "I kind of Rocky to keep him concentrating on the chalet rather than all the projects Bill
keeps him working on."
Sept. 10, 2000: "I can't emphasize enough how much and how well Rocky does, Bill has a true gem there. The
guy works seven days a week on Bil!'s_projects."
Sept. 11, 2000: "Rocky is pretty impatient to get the plywood on the walls because the north wind is beginning to
blow."
FBI - Stevens-2214
"There's no mention of Augie in this e-mail and there's no Christensen Builders at this point, is there?" Morris
asked. '
"No," said Stevens.
She repeated the question after several more e-mails. Just who is Williams working for, she asked?
.
Stevens acknowledged that sometimes Williams worked for Veco. "But working on my house, he's working for
me." Stevens said he had no idea how he paid Williams - that was his wife's department.
"Catherine paid for the work that was done at our house, she paid the· bills and that's all there is to it," Stevens
said, in what ended up being the final words by the final witness in his trial.
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Stevens gets help from some frienqs
TEXAS SENATOR: Kay Bailey flies in to help with campaign.
By TOM KIZZIAtkizzia@adn.com
(10/22/08
Sen. Ted Stevens had another proxy campaigner in Alaska on Tuesday.
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Sen. Kay Bailey Hutchison of Texas flew into Anchorage for the day for a-short meeting with 14 invited
businesswomen, followed by a press conference, a reception and a trip back to Ted Stevens Anchorage
International Airport.
Her message, delivered alongside Sen. Lisa Murkowski: "Within the Senate family, there is great support for Ted
Stevens." Alaska's senior senator has played an important role in building up the military, said Hutchison, who
s-its with Stevens on the Sen.ate Appropriations Committee.
Stevens has been tied up in court in Washington, D.C., of course, unable to campaign but generating plenty of
headlilies. Stevens has put up a spirited defense against charges that he did not report gifts from oil field
services company Veco.
His two Republican surrogates in Anchorage Tuesday were asked if their support would.extend,to voting to seat
Stevens in the Senate if he were convicted but managed t'o win re-election anyway. Hutchison said it would be
premature for the Senate to reject him because Stevens would surely appeal any conviction - "for one thing,
because the triaf was not moved (to-Alaska) to give him the-right to ,
. Murkowski said there would be other for an appeal, based on what she has.read-in.press accounts:
"Alaskans can see the prosecution·failed, blundered in numerous instances ....For us in the Senate to be acting
before it's over one or another is probably premature." .
Hutchison said she can feel what Stevens is going through because she went through something similar. In 1993,
when she was first eleCted to ttie 'Senate, Hutchiso'n--faced state criminal-ethics charges that .her •
offiCe staff as Texas state treasurer for political gain, then covered up-evidence. The case against-her eventually
collapsed after a judge found problems with the prosecution's case.
\\1 did tell him of some of the experiences that 1 had. I said you will ge.t through this. You have so friends
wQo believe in you."
Hutchison, a Republican leader in the Senate, follows longtime Stevens friend Sen. Daniel Inouye, D-Hawaii, who
was here to speak up for Stevens last week. .
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Judge sends Stevens jurors home for day
By RICHARD MAUER AND ERIKA BOLSTAD
Anchorage Daily News
(10/22/0814:11:33)
WASHINGTON - Sen. Ted Steyens' fate is now in the hands of jurors.
"The case is yours," U.S..District Judge Emmet Sullivan told them just before lunch Wednesday.
. . .
The jury returned to Sullivan's court at 4:25 p.m. Sullivan said they had sent a note.
. .
Paraphrasing, he said jurors wanted to leave early. "Kind of stressful right now - we need a rlJinute of clarity right
now."
No problem, Sullivan said. "Of course I will let you go."
FBI - Stevens-2216
The judge earlier said he would normally dismissjurors for the day at 4:45 p.m. They start at 9:30 a.m. and
have an hour for lunch.
It took Sullivail one hour and 20 minutes to read through 81 pages of instructions to the jury on how to apply the
law to the eVidence.they heard. They must decide whether:Stevens, 84, is gUilty of deliberately' submitting false
public statements about h!s personal the years 2000 to 20'06. .. ... -..
The first of seven counts accuses Stevens of scheming to cover up false filings, while the other six charge him
directly with lying on the Senate forms for failing to disclose gifts and bel1efits in excess of the Senate gift limits.
Those limits ranged from $260 in 2000 to $305 in 2006.
'all felonies.
i Over 15 days of testimony in his trial here, prosecutors presented evidence that Stevens received s0'1le $250,000
i' in gifts and services from a group of close friends, especially former Veco chairman Bill Allen. Allen, who pleaded
guilty to bribing Alaska legislators and is awaiting sentencing, was tl)e government's chief witness.
The defense said Stevens was unaware.of Veco's role in the renovations to his home in Girdwood. As for the ,
other alleged gifts, Stevens said he didn't want them, didn't know where they came from, thought they were paid
by his wife, or were not as valuable as the asserted.
Each felony count carries a punishment of up to five years In federal prison, although jurors are forbidden from
potential punishment when they decide the senator's guilt or
The outcome of the jury's decision will likely affect Stevens' fate at the polls. On Nov. 4, he faces Anchorage
Mayor Mark Begich, a Democrat. Stevens has been in the courtroom for the past month as the campaign has
gone on without him In Alaska. .-
Sullivan dismissed the four alternate jurors, but them to not talk about the case on the·outside .
chance that 'they may be called back if something happens to one of the remaining 12.
The alternates were randomly selected at the start of the trial, but their identities were known only to .the judge,
his staff, and the parties. Two of the alternates hugged as they i'eft the courtroom Wednesday. .
- - .
leftajl,!ry eyen !ess d.iverse a mostly middle aged group of eight women and Jour men..By
-- .. '-' - " S"b'20
- -- -- -- - - --- - ...
appear;£,es, 10 seein to be one white, and one HiSPO
i.'-,;.:I V '"
In his instructions, Sullivan told the jurors that they may consider the five character witnesses they heard in
determining the senator's guilt. The role of character witnesses is so important in a case based on Stevens'
truthfulness that their testimony alone can be considered to raise a reasonable doubt of guilt in the minds of
- '
jurors.
Sullivan also cautioned them about Allen, the star witness in the trial and a former close friend of the senator.
Many of the gifts Stevens is accused of accepting, Including home renovations valued at more than $100,000,
came from Allen or Veco.
Witnesses who've entered into plea agreements are under the same obligation to tell the truth as any other
witness, the judge said, adding that Allen's guilty plea to bribing state lawmakers in Alaska has no connection to
this case.
"Those charges have nothing do with Senator Stevens," Sullivan said.
It's up to jurors to weigh Allen's biases and interests against those of other witnesses who testified in the trial,
Su"llivan saia.
Jurors are allowed to consider several other alleged acts as evidence of motive, although Stevens wasn't charged
with any crimes in connection with those acts. They include accepting a loan from a friend for a real estate deal
and failing to report it, asking Allen to help his son and grandson find jobs and· accepting a generator from Allen.
Those acts may be considered for "proof of motive, intent, opportunity, preparation, plan, knowledge, or absence
of mistake or accident," Sullivan said.
The judge reminded jurors of the evidence he has stricken: all testimony about a car trade that Allen made with
Stevens for Stevens' daughter, Lily; evidence showing how much Vecopaid two Veco workers,. Rocky. Williams
and Dave Anderson, during the time that they worked on Stevens' ,home; and a gift bag and shotgun that
Stevens received from the Kenai River Sport Fishing Association and a punching bag and frame he.got from Veco.
The car and the time records had originally been struck early in the trial following sharp complaints by the
defense and a rebuke by the judge that prosecutors had failed to provide evidence to the defense. But the
language in the instructions laid no blame for why the evidence wasn't to be considered.
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FBI - Stevens-2217
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Stevens jurors want wC?man removed for 'violent outbursts'
By ERIKA BOLSTAD
ebolstad.adn.com
(10/23/0810:17:17)
WASHINGTON - Eleven of the jurors deliberating in Sen. Ted Stevens' corruption case asked that the 12th juror
be removed because she has had "violent'outbursts" with other jurors and has been "rude, disrespectful and
unreasonable."
The juror in question, No.9, works for the National Guard as a bookkeeper.
The judge read from the note the jUry foreman sent him, which began "we the jUry, request that juror No.9, be
removed from the jury.II
"She is being rude, ,disrespectful and unreasonable. She has had violent outbursts with other jurors and that's not
helping anyone. The jurors are getting off-course. She's not following the laws and rules that are being stipulated
to in the main instructions."
The judge did consider asking the foreman to come in and explain what he meant by "Violent," because he was
concerned about the jury's safety, but will instead ask the whole panel to come in and will remind them that they
have an obligation to be civil to one another.
Defense attorney Robert Cary urged the judge to proceed slowly and not overreact.
"It cannot be the law that 11 people on a jury can ask that one person be removed," Cary said.
"If they're being violent they can," the judge responded.
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FBI - Stevens-2218
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Stevens supporters, staff join wait for a verdict
Alaska senator's fate left up to 8 women and 4 men
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(10/23/0801:11:07)
WASHINGTON -- Sen. Ted Stevens' fate is now in the hands of jurors.
"The case is yours," U.S. District Judge Emmet Sullivan told them just before lunch Wednesday.
The jury returned' to Sullivan's court at 4: 25 p.m. Sullivan said they had sent a note. He said they wanted to
leave early. "Kind of stressful right now," he said, reading from the note. "We a of clarity right now."
No problem, Sullivan said. "Of co'urse I will let you go," he.said.
The judge earlier said he would normally dismiss jurors for the day at 4:45 p.m. They start at 9:30 a.m. and
have an hour for lunch. '
It took Sullivan one hour and 20 minutes to read through 81 pages of.instructions to the jury on how to apply the
law to the evidence they"heard. They must decide whether Stevens, 84, is of deliberately submitting false
public statements about his personal finances covering the years-2000 to 2006.
.- -
The first of seven counts accuses Stevens of scheming to cover up false filings, while the other six cnarge-him
directly with lying on the Senate forms for failing to disclose gifts and benefits in excess of the Senate gift limits.
Those limits ranged from $260 in 2000 to $305-in 2006,
The charges are all felonies.
Over: in that Stevens received some $250,000
in gifts and servicesJrom a gro_up oJ clpse friencJs, especially former Vecochairman-BilrAllen. Allen,-who pleacled
guilty to' bribing Alaska legislators and is awaiting sentEmCing, was the chief witness.
The 'defense said Stevens was unaware of Veco's role in the renovations to his home in Girdwood. As for the
other alleged gifts, Stevens said he didn't want them, didn't know where they came from, thought they were paid
by his Wife, or were not as ,valuable as the government asserted.
.Each felony count carries a punishment of up to five years in federal prison, although jurors are forbidden from
considering potential punishment when they decide the senator's gUilt or innocence.
FBI - Stevens-2219
THE JURY
The outcome of the jUry's decision may well affect Stevens' fate at the polls. On Nov. 4, he faces Anchorage
-Mayor Mark_Begich,_a_ Democrat, al'1d tbIee other candidates. Stevens has been in the cour:troom for the past
month as the campaign has gone on without him fn Alaska..- --
Sullivan dismissed the four alternate jurors, but admonished them to not talk about the case on the outside
chance that ,they may be called back if something happens to one of the remaining 12.
The'alternates were randomly selected at the start of the trial, but their identities were kn'own only to the jUdge,
his staff, and the.parties. Two of the alternates hugged as they leftthe courtroom Wednesday.
._ That.left,a_juryeven less dIverse tbal'l.bef()re:.a group of eight women and four men. By
-37(P - - ·(&l.tt4--44/"/'if.'io-111 e.,
, .
10 seem'to be AfricQm,erican, one white, and one HispaO
In his Sullivan told the jurors that may consider the five character witnesses they h'eard in
determining the senator's guilt. The role of character witnesses is so important in a case based on Stevens'
truthfulness that their testimony alone can be considered to raise ,a reasonable doubt of guilt in the minds of
jurors.
Sullivan also cautioned them about Allen, the star witness in the trial and a former close friend of the senator.
Many of the gifts Stevens is accused of accepting, Including bbhome renovations valued at more than
came from Allen or Veco.
Witnesses who have entered into plea agreements are under'the same obligation to tell the truth as any other
witness, the judge said, adding that Allen's guilty plea to bribing state ,lawmakers i1'1 Alaska has no connection to
this case.
"Those charges have nothing to do with Sen. Stevens," Sullivan said.
STRICKEN EVIDENCE
It's up to jurors to weigh Allen's biases and interests against those of other witnesses who testified.in the trial,
Sullivan said.' .
Jurors are allowed to consider several other alleged acts. as evidence of motive, although Stevens wasn't charged
withany crimes in connection with those acts. They include accepting a loan from a friend for a real estate deal
and failing to report it, asking Allen to help his son arid grandson find jobs and accepting a generator from Allen.
Those acts may be considered for "proof of motive, intent, opportunity, preparation, plan, knowledge, or absen'ce
of mIstake or ,!ccident," Sullivan said.,
The judge,reminded jurors of the evidence he has stricken: all testimony about a car trade that Allen made with
Stevens for daughter, Lily; evidence showing how much Veco paid two Veco workers, Rocky Williams
and Dave Anderson, during the time that they worked on Stevens', home; and a gift bag and shotgun that
Stevens received from the Kenai River Sport Fishing Association and a punching bag and frame he got from Vec·o.
The car and the ,time records had originally 'been struck early in the trial following sharp complaints by the
defense-and a rebuke-by-the-judge that Jailed to_ But the
language in the instructions laid no blame for why the evidence wasn'tto c;q[l$idered.
THE V'EROlCT: Sign up for ou'r breaking-news alerts to get the jUry'S decision sent to your inbox as it happens.
FBI - Stevens-2220
The Stevens trial jury
Here are thumbnail sketches of of the 12 jurors and four alternates selected in the Stevens trial. It was not -
- -announced which ones' are the alternC!tes. -The information,is-drawn from answers,to question,s 'by the judge and
attorneys in the case. The number is their jury seat number.
THE JURY
• JUROR #1 FEMALE: A third-grade teacher with 21 kids in her class and with two brothers in law enforcement.
• JUROR #2·MALE: Works in Georgetown University· Medical Center at a command center, comp'ares it.to being
an air traffic controller. 'Has been a witness to crime, such as seeing people smoke marijuana, but :ha-s never
- - - .
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testified at'a trial.

• JUROR #3 FEMALE: Works at an agency that do.es statistical reports on wiretaps, but doesn!t listen to them.
Served on a grand jury once.
• JUROR #4 FEMALE: A licensed paralegal, works for a mortgage company on bankruptcy issues. Initially
thought a defendant should testify, but said she understood why that's not- a requirement after the judge
instructed her in the 5th Amendment guarantee.
• JUROR #5 FEMALE: Studying sociology but doesn't expect to get a degree for four or five years. Has a family
member in a state legislature. fiad trouble twice with contractors at- her home. "
• JUROR #7 FEMALE: Soft spoken. Has a family member in law enforcement, has been a juror in criminal court.
• JUROR #8 FEMALE: Has a background in finance and economics and does management analysis for the Navy,
negotiating project costs on bases. Works with Congress, but just by way of documents, not live contacts: Served
as a juror before. Has had a problem with home repair -- someone was almost killed because of shoddy work on
her house, and she's suing the contractor..
• JUROR #9 FEMALE: Does bookkeeping and disbursements for the National Guard. Works with Congressional
funding.' -
• JUROR #10 MALE: Works in the retail store at the Newseum, the downtown journalism museum. Cousin who
was in a gang is in prison.
• JUROR" #12 FEMALE: Receptionist and administrative assistant with a professional medical association. Deals
with her organization's lobbyists and reads the specialty Capitol Hill lying around the office. 'Has relatives
.in law enforcement and initially said she would give more weight to the testimony of an officer, but later agreed '
to follow the judge's instructions to treat them like other witnesses. .
• JUROR #14 ,MALE: Works for a drug rehabilitation agency. Has been a grand juror and served as a juror once
before Judge Sullivan, who is hearing Sen. Stevens' case. Has a family member who works for the Metropolitan
Washington Police Department. Identified by the judge Wednesday as the foreman. -
• JUROR #16 MALE: Served as a juror this year in Superior Court in Washington. Works at downtown office
buildings in Washington, but didn't say in what capacity.
ALTERNATES
• JUROR #6 FEMALE: Has a job where she works with public. Has friends who are ex-cops, and a friend who's a
Iqwyer. Served on jury, where she was upset that one juror tried to hurry deliberations because she was leaving
on vacation. Also served on a grand jury. '
FBI - Stevens-2221
• JUROR #11 FEMALE: Familiar with Web site technology and runs her church's site on the Internet. Served on
a jury in May-.
• JUROR #13 MALE: Comes from a family of strong Republican conservatives who support Sarah Palin, and he
briefly joined a college Republican group, but said he has since modified his views and went to Baltimore to see
Barack Obama at a rally. "Politics-wise, I have no idea where I stand -- I'm still trying to figure it out."
• JUROR #15 FEMAL'E: A tennis player Y'ho's employed, but on extended leave. She's a first-time juror with a
family member in law enforcement.
Verdict form
In the of the United States of America v. Theodore F. Stevens the jury must decide on:
COUNT·I:'False Statements - SChO
"'y
Not guilty Guilty
COUNT'II: False Statements - 2001 Senate Financial Disclosure Form
Not guilty Guilty
COUNT III: False Statements - 2002 Senate Financial Disclosure Form
guilty Guilty
COUNT IV: False Statements - 2003 Senate Financial Disclosure Form
Not guilty Guilty
COUNT V: False Statements - 2004 Senate Financial Disclosure Form
Not guilty Guilty
COUNT VI: False Statements - 2005 Senate Financial Form
Not guilty Guilty
COUNT VII: False Statements - 2006 Senate Financial Disclosure Form
Not guilty 'Guilty
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Senate would decide Stevens' ultimate fate
HISTORIC: If senator is guilty and re-elected, colleagues.could expel.
By TOM KIZZIA
tkizzia@adn.com
(10/23/0800:03:32)
If Sen. Ted Stevens is found guilty and re-elected, it will beup to the Senate to decide whether he can keep his
seat or should be.expelled.
It's never happened before. Four senators in U.S. history have been convicted of crimes, but two resigned, one
died and one saw his term expire before an expulsion vote took place. Two-thirds.of the Senate would have to
vote to expel. '. .
"The Senate is a very collegial.body and really doesn't like to act in that sense," Don Ritchie, an associate Senate
historian, said in an interview Wednesday. He said 'the Senate would be likely to wait for any appeals to be
settled before taking action. '
The l{jst actual expulsion of a senator occurred during the Civil War. .. Jesse Bright, D-Indiana, was kicked.out
for writing a letter to Jefferson Davis, president of the Confederate states, recommending a friend's gun
manufacturing business in Texas. @
Bright's was written a month before the Fort Sumter to start the war. He was'expelled
in early 18Q2.
Stevens is the 11th senator to be indicted for a crime. In September, on a visit to Anchorage, he.said he would
not consider stepping down or quitting his campaign for re-election because he expects to win hisJegal case.
"Put this down: That will never.happen -- ever, OK?" Stevens said. "I am going to run through and I am going
win this election."
The Constitution leaves it u'p to the Senate to decide who can serve. Senators do not like to step forward until
after the voters and the judicial branch have spoken, Ritchie said.
Nine in U.S. history have been subjected to a lesser rebuke known as censure, which does not cost
them their. seats.
The most recent expulsion case involved ethics charges but no criminal indictment. Oregon Republican
Bob Packwood resigned in 1995 after the Senate Ethics C.ommittee recommended expulsion based on multiple
of sexual harassment. FBI - Stevens-2223
In 1990, Sen. David R-Minn., was denounced by the Senate for circumventing rules about outside
income, and he spent the last two years of a 17-year career under indictment for misusing 'public funds. He did
not run for another term in 1994, and eight months after leaving the Senate he pleaded guilty to a misdemeanor,
'for which'he was fined and' sentenced to probation.
One senator pushed it to brink. 'In 1981, Sen. Harrison Williams, D-NJ, was convicted of accepting bribes
from a fake business in the FBI's Abscam investigation.. That FBI sting also resulted in convictions of five
members of the House of Representatives.
Williams continued. serving as he arguing unsuccessfully that he'd' been entrapped. After an expulsion
6n the Senate floor in 1982, Williams resigned before a vQte could be taken.

The..tw,o oC'Aer senators convicted while in office were Sen. R-!<ansas, who resigned in
1906f'and Sen. John who died in office in 1905 while case was-on appeal.
Sen. Kay Bailey Hutchison, R-Texas, who came to Anchorage t,his week to campaign for Stevens, was indicted in
Texas shortly after her election in 1993 on charges that she had used her office as state treasurer to campaign
for the Senate. The charges were eventually dropped:
No senator convicted of a crime has ever received a presidential pardon. Williams sought a pardon from President
Bill Clinton but was turned down.
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FBI - Stevens-2224
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jury goes home after chaotic day
;.
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/23/0813:39:55)
WASHINGTON - A juror in Sen, Ted Stevens' corruption case who fellow jurors complained has been "rude,
and unreasonable" and engaged in "violent outbursts" will stay on the panel even though her 11
peers wanted her ousted,
..--
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Yesterday, they passed U.S. District ,Judge Emmet Sullivan a note asking to be dismissed, a early because
deliberations had "stressful" and they needed a break for "clarity."
Jurors spent their second day of deliberations today'and went home for the day around 4:45 p.m. (12:30 Alaska
time), They're considering whether to find Stevens guilty of making false statements on his Senate financial- -
disclosure forms. - .
Today, jurors passed Sullivan four-notes, including one about the combative jurorJn question. The No.9;
works for the National Guard as a bo·okkeeper. '
Out of the jury's presence, Sullivan read-from the note the foreman had sent him,- which began, "We'the jUry'
- -
request that juror No.9 be removed frorT! the jury."
"She is being rude, disrespectful unreasonable," the foreman wrote. "She has had violent outbursts with
other jurors and that's not helping aliyol)e. The jurors are getting off-course. She's not following the laws and
rules that are being stipulated to in the main instructions."
the jurors have taken center stage in Cl trial that, from the beginning, has had its share of drama simply because
of the' n9toriety of At one point, the trial threatened to fall apart entir:ely when Stevens' legal team
filed a motion seeking a mistrial --prosecutor!;-Failed'tifhand over evidence that'couldhave helped
Stevens' defense.
The jurors apparently workea out their problems by this afternoon, although they again asked to go home a little
early. They sent the judge a final note sometim_e after 4 p.m. saying "We have given the evidence consideration
and have exhausted ourselves for this day." In bit of jury humor, they added that they were "unanimous in
requesting a break" and fully intended to resume their deliberations Friday.
. Today, Sullivan said out of the jury's presence that he thought about. asking the foreman to explain to the court
what he meant by "Violent," because he was concerned-about the safety of jurors. Instead, though, he called the
whole jury to the courtroom so that he could remind the members of their obligation to be civil ,to one another
alld foster an atmosphere of "mutual respect." FBI - Stevens-2225
9n5=_e-in the courtroom, the judge greeted the jurors, said he was happy to see them all smiling and told·them
that he was sympathetic to theamount oftime they'd devoted to the·ca?e·already.Jurors sat,through.the.
testimony of 52 witnesses over nearly four weeks( capped by three days of Stevens on the stand.
"It's been a long trial," Sullivan said. "We started selection the 22nd of September. We've been,together a long
time."
! He also told the jurors that he wished he could give tliem all black robes because,"you folks are the judges of the
l
'facts. It's not my job'. Your to consider all the eVidence, all the testimony."
- Lawyers for both sides\t\tere concern'ed-about:how to-handle-the rude-juror because tneJriai.is afa:delicate stag'e.
" .. _ __ _ _ - --- ,.
IAhe had brought the forerrOn for questioning, he would have tiptoe around any queries that
woul!:Lsuggest which way the jurors are leaning. Lawyers for Stevens as prosecutors were worried about
singling out· one juror. .
"The incremental approach ... is an appropriate one," said one of Stevens"attorneys, Robert ,Cary.
However, a recalcitrant juror also could be a good omen for the defense, if her obstinacy means that the jury is
having trouble coming to a unanimous decision. '
Sullivan told the lawyers' after the jury left the courtroom that he'd watched the foreman carefully and thought
that he and the other jurors had received his message to be courteous to one another.
"His response to my instruction was appropriate," Sullivan said. "He wasn't shaking his head as'ino disagree. He
didn't show any emotion one way or the other. It may well be that the court's response is the only response
necessary. Only time will tell."
The jurors also had asked earlier for Page 20 of Stevens' indictment, which inadvertently had been left out of the
evidence and exhibits they were given for their deliberations.
They also wanted a better explanation of "liabilities" and the limit that the senator should have disclosed each
year on his forms. The charges against Stevens accuse him of failing to report gifts as well' as liabilities, which are
debts or obligations he might have incurred by accepting a gift and not reporting it. The judge declined to do so.
E-mail thereporters:ebolstad@adn.comandrmauer@adn.com.
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Absent juror halts Stevens trial
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iWERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/24/0807:09:54)
WASHINGTON - Sen. Ted Stevens' corruption trial all but ground to a halt Friday morning as a judge tried to
determine how to handle a grieving juror who had to leave town to attend her father's funeral. U.S. District Judge
Emmet Sullivan told jurors "everyone needs a day off now.and then" and sent jurors home ,for the day at 9:50
a.m. without telling them why their fellow juror was gone.
Jurors, who have cheered in the past when Sullivan let them go early, didn't appear to be happy about the extra
time off this time around. The jurors have been sitting in on the trial since jury _selection began Sept. 22.
Sull,ivan will hold a hearing Sunday evening to see whether the grieving juror, who is in California for her father',s
w.ill be available to return. First, he'll call the juror at 5 p.m. to determine her availability.
- - '--I.:!
she is available, it is unlikely deliberations would begin again until Tuesday or even Wednesday, a
uncertainty that postpones .any verdict in the senator's case until just days before he's on the ballot in
Alaska Nov. 4.
Sullivan was disinclined'to add an alternate juror because they woul_d have to start from' scratch on their
deliberations, an option Sullivan said w9u1d put them in the same place as they would be if they didn't start again
until later· in the week.
However, he did bring in one of the alternate jurors to ask her whether she would be available if needed. He
asked her whether she had spoken to anyone about the case or had formed an opinion on it. She said she hadn't
talked about the case, but hesitated when Sullivan asked her whether she had made up her mind yet.
,iI paused because I wanted to think if I'd formed an- opinion, II the juror said, adding that she didn't- believe she
had.
§-mfl'!ffl ?iso said he proceed with just 11 jurors, given the near-meltdown.on the jury already. If
lose another juror they would have "major problems," Sullivan said. Federal juries are allowed to
With fewer than 12-jurors, but case law is unclear about proceeding with fewer thaI) 11.
C".cj;(
;t' .
Problems with the jury began Thursday, just a day and a half after the pC!nel got the case. The issues appear to
have little to do with the actual deliberations in the case, which involve determining whether Stevens is gUilty of
making false statements on his Senate financial-disclosure forms. First, on Thursday, 11 of the jurors sought to
boot the 12th from the panel after they complained that she had been "rude, disrespectful and unreasonable" and
had engaged in "violent outbursts."
Then,- afterthe judge appeared to have-resolvedthe"problem and jurors were all smiles,-he-had.to.call an _
emergency hearing at 6:30 p.m. because a second juror learned her father had died and she needed to go to
California for his funeral.
10/24/2008
Stevens' lawyers argued Friday morning for waiting to see whether the juror could return to the jury, rather than
calling an alternate in or proceeding with 11 jurors. Prosecutors said they would prefer to avail themselves of the
bp.ti,ons available to replace the juror by going with the alternate juror.
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I. ';bsent juror halts StevensOI r'\ Page 2 of 2
"This is a loeplaced on this juror," said Nicholas Marsh, one of the prosecule{s on the Justice Department team.
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FBI - Stevens-2228
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Stevens jurors squabble
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Stevens jurors squabble
One simply leaves; others try to oust 'rude' colleague
:By ERIKA BOLSTAD and RICHARD MAUER
1\nchorage Daily News .
(1"o.!..2.MQfl' 03: 55:33)
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FBI - Stevens-2229
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WASHINGTON -- The episodic dramatics and messiness that marked the hastily convened four-week trial of Sen.
Ted Stevens spread to the jury Thursday when, after less than two days of deliberations, two members of the
panel were in jeopardy o(expulsion.
The first juror, a woman identified only as Juror 9, a National Guard bookkeeper, was accused in a note by the
jury foreman of "rude, disrespectful and unreasonable" behavior and of making "violent outbursts with other
jurors." The foreman said he and the other 10 jurors wanted Juror 9 kicked off the panel. LW
That dispute appeared to have been resolved peacefully with a fOlksy appeal for civil behavior by the judge, and
the jurors could be seen,leaving the courthouse for the day smiling and chatting among themselves.
Then, after ,dark, U.S. District Judge Emmet Sullivan summoned la-.yyers back to his courtroom with another
Juror 4, a woman who works as a paralegal at a mortgage company, alerted a marshal that she had tQ
to a family emergency in Texas and then dropped from-sight.
a special hearing for 9 a.m. today.to what to do next. If Juror 4 can belocated'and would
pr.Qmise to be back in Washington in time for Mon.day's session, Sullivan, said, he would prpbably accommodate
rierby canceling deliberations today. .
Just in case, he also told marshals to summon 1, also a woman in the female-dominated panel, and
have her report for duty'at the time of the he-aring. Sullivan said he would consider replacing Juror 4 with the
allo,!\, 11 jy.rqr:.s. to decide the case. He asked attorneys for Doth sides to research the issue and
submittheir recomrnen<tSltigns by t a.m.
Stevens was indicted July 29 on seven counts of failing to disclose gifts he received from 2000 to 2006, mainly
expensive house renovations from the oil-field service company Veco Corp. and its then-chief executive, Bill
Allen. Though the law firm defending Stevens, Williams & Connolly, is famous for normally extending the pre-trial
period with a deluge of motions, Stevens demanded a speedy trial, his constitutional right. He said he planned on
being acquitted before he voters on Nov. 4.
l;
fast schedule for such a major trial may have had consequences. The 7 a.m. deadline for
in the jury matter today is nothing unusual. Attorneys for both sides, along with the judge, his
staff, have often worked late into the night after the day's testimony and on weekends. It's not
n'ormal witness preparations but to make and respond to the numerous challenges and arguments that
have-cropped up, many of which might have been resolved at a less sleep-deprived pace had there been a longer
lead-up to trial.
At orie point, the government revealed.a"check that Allen had used to bUy a land Rover that he traded to
Stevens' 9aughter after the defense went through contortions trying to show how much Allen had paid without
that evidence. JUdge Sullivan said he would have understood why the government failed to provide the check to
the defense if it had gotten lost in the rush. Prosecutors said It was true they rediscovered tl)e check in their
mounds of evidence late in the game, but they also didn't think it was relevant to the defense.
That led to one of two imposed by the judge on the prosecution, striking all evidence about a car trade
that allegedly. benefitted Stevens. He a.lso struck some evidence about how much money was spent on Stevens'
http://www.adn.comlted-stevens/v-printerlstory/5660·63.htmi..j.4.kA-=::4..1..:.nC.20-.A-\. QI012412008 -'
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,Stevensjurors squabble 0
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:fne:attorneys and jUdge spent only two days picking the jury from a pool of 150.
. .. : .. .... - *f, ..
inside the jury room emerged soon after deliberations began Wednesday. At 3:55 p.m., the foreman
sent out a note that read:
"Can we leave a little early today? Would that be a problem, your honor. Kinda stressful right now. We need a
minute of clarity for all."
The judge told them no problem. But before noon Thursday, two more notes came from the foreman and the
judge .summoned the attorneys to his courtroom to hear them read.
The first note was no problem: Somehow, page 20 of the indictment had failed to make it to the jUry. The second
note was a little more difficult to resolve. They wanted a better explanation of term "liabilities" and the limit that
the senator should have disclosed each year on his forms.
charges against Stevens accuse him of failing to report gifts as well as liabilities, which are debts or
@figations that he might have incurred by accepting a gift and not reporting it. After some debate among the
judge declined to do so.
Sullivan was reading the second .note, a marshal handed him a third. That was the show stopper..
"Judge Sullivan: We the jury request that Juror No.9 be removed from the jury. She's being rude, disrespectful
and unreasonable. She has had violent outbursts with other jurors and that is not helping anyone. The jurors are
.getting off course. She is not following the laws and rules that were stipulated in the instructions."
Sullivan said out of the jury's presence Thursday that he thought about asking the foreman to explain to the
court what he meant by "violent" in the note, because the judge was concerned about the jurors' safety. Instead,
he called the whole jUry to the courtroom so that he could remind the members of their: obligation to be civil to
one another and foster an atmosphere of "mutual respect."
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Absent Stevens juror admits father didn't die
By ERIKA BOLSTAD
Anchorage Daily News
(11/03/0808:44:09)
WASHINGTON -- Juror No.4 in Sen. Ted Stevens' federal corruption trial, otherwise known as Marian
did not leave to attend her father's funeral in California, as she told the judge. ----;---
Instead, Hinnant had a plane ticket to see the Breeder's Cup at the Santa Anita race track and didn't wa t to
miss it, she told the jUdge this morning, in what sounded like completely irrational and perhaps even delusional
-remarks.
"l,just wanted to go to the Breeder's Cup," she told reporters after a hearing the judge held to find out why she
left town and losf contact with him, forcing him to replace her as a juror just hours before the jury found
gUilty.
. Hinnant also told reporters that she would haye fQuncj senator gUilty had. she, remained on the Jury.
::He was,guilty, but these other guys are just as guilty," she said, referring to other members of Congress.
-
federal public defender AJ. Kramer,.. tried t.Q from in court, telling the judge
only that "her state of mind was such that she had to go·to . ,
"She apologizes to the court. In,fact, her father did not die," Kramer said. "The story about her father was just
one that popped into her head."
But Hinnant cut in, and in a thick Kentucky drawl, gave a rambling, incoherent and baffling monologue about her
former employers in'the horseracing industry in Kentucky. She-mentioned drugs, wiretaps and horseracing, but
made little sense.
"j"m not the one who was selling the drugs, I'm not the one who was doing the she said.
U.S. District Judge Emmet Sullivan let her go, saying that he was going to "accept Mr. Kramer's representation
that you were not able to (deliberate) and for tha,t were serious to you."
f(e added: "I'm convinced you were not able to deliberate."
SLillivan told her that she did not have to speak to the media, but she said she was willing to talk, and she did.
Outside of the courthouse, a pack of about 10 reporters followed her to the nearby Metro'stop, as did several of
Stevens' attorneys. Kramer escorted her to the station and encouraged her not to say much, but Hinnant'
appeared not to be able to restrain herself.
'Hirulant, 52,-told-reporters-that she works·at Avis·car rental 'ill Union'Stationin Washington D.C..She-worked in-
horseracing for many years and simply wanted to see the race, since she already had a plane ticket to California',
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FBI - Stevens-2231
@ Man Nov 310:45:47 UTC-0900 20081900 The Anchorage Dally,News (www.adn.com)
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.i1008 Alaska Election Coverage
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Heated Senate race in final
leg
THE PUSH: Stevens insists he's not guilty while
Begict} envisions a different future,
By ,SEAN COCKERHAM
scockerhall)@adn.com
Published: October 31st, 2008 04:05 AM
Last Modified: 31st" 2008 08:47 AM
With just four days before the election and Alaska Sen. Ted
Stevens insisting he's not a felon, the U.S. Senate race is
white hot.
o
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"I've not been convicted yet,"
Stevens said Thursday in a meeting
with the editorial board of the
Fairbanks Daily News-Miner.
"There's not a black mark by my
name yet, until the appeal is over
and I am finally convicted, ifthat
happens. If that happens, of course I'll do what's right for Alaska and
for the Senate.... I don't anticipate it happening, and until it happens I
do not have a black mark."
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Stevens reiterated that position during a televised debate late Thursday night, declaring early in
the give-and-take with Anchorage Mayor Mark Begich, "I have not been convicted of anything."
The senator said Gov, Sarah Palin and the other Republicans who have called on him to resign are
only doing so for political gain, not because they are sincere. "I wouldn't hold it against them, I
understand what they're doing, trying to get elected."
Begich argued during the debate that Stevens can't be effective for the state while he fights his
conviction, and with Senate colleagues calling on, him to resign.
,
"Senator Stevens has some serious issues he has to deal with that will distract him," Begich said.
A Washington, D.C., jury Monday convicted Stevens of seven felony counts of lying on finarF&li - Stevens-2232
disclosure forms about thousands of dollars of gifts and home renovations from Veco Corp.
Begich leads in the polls but_ is trying to keep his supporters from getting too confident, saying it
will-be a close election Tuesday. It's c1eal" there's a reservoir of for the 84-year-old
Stevens.
The latest bumper sticker to appear in Anchorage: "Vote For Ted Until He's Dead."
Begich, in speaking to a group of BP employees in Anchorage on Thursday, acknowledged that a
lot of Alaskans are having a hard time voting against Stevens.
"We have to do what's right, it's painful because he has done a lot of things for us, there's no
question ... thi!lk the future, not about individuals' desires. He .made
-
rr
--------cc ----
a comm;nt he's going to fight the hard as he can with every ounce of We need
that energy focused on Alaska," he saU V-
", "
"I know it's a tough call for a lot of people because there are a lot of emotions around this election,
and I recognize that," Begich said.
Begich said that even if re-elected, Stevens would not be able to serve. "The fact is, even if elected
his own minority leader has said he has 100 percent likelihood not to be seated, that he will be
expelled from the Senate," Begich said.
But that's not exactly what Senate Minority Leader .Mitch McConnell said.
McConnell said that if Stevens is re-elected "and the felony charge stands through the appeals
process there is zero chance that a senator with a felony conviction would not be expelled from the
Senate." Stevens' claim is that he'll be vindicated through the appeals.
Stevens has alluded to the possibility that if he loses on appeal, he could then resign so there
would be a special election giving another Republican a shot at the seat.
That's a scenario talked up by the state Republican Party, which says conservatives need to vote
for Stevens to at least send it into overtime instead of just handing it to the Democrats.
Stevens said in a KTVA Channel 11 online debate that he's fighting for re-election not just for
himself, but because he believes a Republican should have the seat. "When the appellate process
is over, I will accept the result, good or bad, and do what's best for Alaska and the Senate. I am
bruised but not beaten; my integrity will be vindicated," Stevens said.
Senate Republicans including minority leader McConnell have said Stevens should resign. So has
Alaska Gov. Sarah palin, the Republican vice presidential nominee, and her running mate, John
McCain.
Stevens, in his meeting with the Fairbanks paper's editorial board, dismissed that as "statements
made on the trail, in the heat of battle." Alaska's junior senator, Republican Lisa Murkowski, was
more critical of Republicans turning on him.
"For all of them, it's a very close election. I think they're looking to t_heir own political skin. If it
helps them in their effort to gain re-election, they will, unfortunately, throw Ted under the bUs,"
she said.
Begich, 46, has not called on _Stevens to resign, but the state Democratic Party has. In Anchorage,
the Democratic Party Invited faith leaders to meet with the press Thursday and talk about the need
for politicians to have a moral compass in the wake of the Stevens verdict.
"Trying to serve the state while appealing something of this nature is going to be very, very
difficult," said Dianne O'Connell, a retired Presbyterian minister.
But one of the speakers, Rev. Dr. Greene of Eagle River Missionary Baptist Church, 66irecbtevens-2233
a somewhat surprising message, given that it was a Democratic event. Greene told the press he
has no reason to mistrust Stevens and that plenty of innocent people are wronged by the court
system.
Both Stevens and Begich will be barnstorming the roa-d system for votes in the final days of
campaigning. Stevens has a rally in Soldotna today and is going back to Fairbanks on Saturday.
Begich is in Juneau today for his own rally, then goes on a campaign swing through the Kenai
Peninsula on Saturday.
Both sides have post-conviction advertisements running on TV and radio., Stevens' say it should be
up to Alaskans, not an Outside jury, to decide whether he's fit to serve the state. Begich's say now
that a verdict is in, it's time to move on.
Begich j!i pitching himself as pragmatiOd a centrist. He. BP employees he hQome
abSl,lJt the way the state increased taxes on the oil iridustry last year.
Be.jichsaid he couldn't answer if the tax increase, whiCh was supported by Democrats in the
Legislature as well as Palin, went top far. But he said the state didn't take the right approach and
suggested it was done in a punitive spirit.
"This was kind of like, let's just jam it on you and end of story,. you're going to pay," he said.
One of the BP employees Begich spoke with in Anchorage, a man who also builds homes,
complained Begich raised property taxes so much that he believes it "has hindered people from
actually building !louses and building larger houses."
Begich disagreed the tax was slowing home building. He said property taxes aren't as big a
proportion of the budget as before he came to office, and the growing city has more police officers
and fire stations, as well as improved snow removal.
"That doesn't come for free," Begich said. "But you get something for it."
The Associated Press and Daily News reporter Kyle Hopkins contributed to this story. Find Sean
Cockerha.m online at adn.com/contact/scockerham or call him at 257-4344.
<;:andidates square off
The heavyweights met face to face for the finiii Wile Thursday. Incumbent Alaska Republican Rep.
Don Young squared off against his Democratic challenger, Ethan Berkowitz, and incumbent U.S.
Sen. Ted Stevens, a Republican, tangled with his Dempcrati.c challenger, Anchorage Mayor Mark
Begich. They talked about corruption trials and whether Stevens should resign, how Congress
might cut your energy bills and save the economy, and whether Gov. Sar?h Palin is ready to step
in as president of the United On that last one Young and Stevens say Palin's up to top
job, are more qualified, and Begich left it to voters. To read what the
candidates,said about.<!11 the is_sues and about ea-ch other, visit our politics blog a_t
adn.com/alaskapolitics.
ADVERTISEMENT
FBI - Stevens-2234
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New names emerge in Allen FBI interviews
FBI QUESTIONING: He talks about what he did for specific lawmakers.
By LISA DEMER
Idemer@adn.com
(10/31/0804:01:55)
The very first day that former Veco Corp. chairman Bill Allen sat down with FBI agents, he described questionable
dealings with a number of Alaska politicians, some of whom are now in prison for the corrupt acts he described.
Newly filed court documents outline the extent of Allen's initial revelations to the FBI, including his interactions
with public figures that haven't previously been reported -- and who haven't been charged.

In his first interview, the same day he learned of the investigation, Allen told the FBI about financial favors "
sought by and given to politicians. )1.
He said he hired a lawyer for former state Rep.... Bev MLk when she was fighting allegations of misspending
campaign money. He said former state Rep. came/to his house seeking a job while she was in
office. He said he bought property from former st5lte Sen. Jerry Ward to provide him campaign money. And he
talked about golf tournaments that generated cash for U'S7Re DonYOung, though he also described Young as
someone who couldn't be bought.
Heinze strongly disputed the allegations and Young, who faces re-election next week, has denied any
wrongdoing. Masek and Ward did not return phone calls.
Whether federal authorities are still investigating or plan to bring cases against any of the newly named
individuals isn't clear. FBI spokesman Eric Gonzalez would only say the investigation is ongoing. It's also
unknown whether the FBI later obtained information that contradicted any of Allen's assertions.
The new documents -- summaries of Allen's initial interview with the FBI and a subsequent interview -- were filed
earlier this month during the-trial of U.S. Sen. Ted Stevens in WasQington, §ummaries were attached to
motions filed by Stevens' lawyers. The summaries recount what Allen told and make no attempt to
verify his assertions.
The first interview occurred on Aug. 30, 2006, after agents brought Allen into FBI headquarters in downtown
Anchorage and he agreed to cooperate. The broad, multi-faceted investigation into Alaska corruption wouldn't
become public knowledge until the next day, when federal agents swarmed legislative offices with search
warrants. The FBI had been monitoring Allen's phone calls for months.
Allen pleaded guilty to bribery and conspiracy in May 2007. As part of his plea deal, prosecutors agreed not to
seek charges against Allen's son, Mark, or other relatives. FBI - Stevens-2235
Allen became one of the main prosecution witnesses at the federal trials last year of former state Reps. Pete Kott
and Vic Kohring, who are both now in prison, and U.S. Sen. Ted Stevens, convicted Monday of seven felonies.
Allen secretly recorded calls for the FBI were used as evidence against Stevens and
Here is some of what Allen asserted in the interviews:
REP. DON YOUNG
In his initial interview, Allen told the FBI about the pig roast fund-raiser that he hosted for Young. He said Marx
Brothers Cafe catered it and he thought that Young covered the bills but wasn't sure. He said he paid for the
alcohol with his Veco credit card, according to a summary of his interview with·the FBI. - <g Z'
l't t.tA- -A-AJ -"f "5'{70 ....

After the ihv.estigation Allen's role was known
r
the tr.ied to reimburse
$37r6?6 for expenses associated wi\Jhe.annual pig roasts
r
the campaign ¥ said. The cJ1eck never was cashed
r
so the campaign sent the m<;>ney to the U.S. Treasury.
Allen also talked to the FBI about "gQlf outings" organized by a Veco vice president
r
Rick Smith
r
to benefit Young.
Smith also has pleaded guilty to bribery and conspiracy.
"Allen recalled that participants contributed $lQO a piece to play. Allen said that the money given to Young was
not a big deal and he considered it a 'thank you' to Young/' the FBI interview summary said.
"Allen Young as a life long friend and a person he .calls his brother/, the interview summary said. "Allen
said that you can't 'buy' Young."
Gary Sanlbcd
r
m.anager of Course on.£o[t Richar.dson
r
said this week that he remembered the
"Smlth-organ'iied golf outings for Young;)lnd recalled prizes like golf balls and putters
r
but not cash. However
r
last
year
r
an Associated Press story reported that Sanfqrd said he was sometimes around when cash prizes were
handed out. In that storyr Sanford said that he didn't remember Young receiving any cash that he didn't win.
Sanford said this week that he has never been interviewed by the FBI about the golf outings.
Young's chief of staff
r
Mike Anderson
r
said in his si'S years with Young, the congressman has never pushed
to specifically benefit Allen or Smith.
Young has said he cannot talk about the investigation but also that he wouldn't be running again if he had done
anything dishonorable.-
Y0l.!ng has reported spending more than $1.2 million in .campaign contributions on legal fees since early 2007.
Young
r
75 and.a·Repliblican,.is running for his:19th.term as only U.,S. House member. He has n9t.b.een .
charged with any
WAR!?
Allen told the FBI he bought a piece of land in Sterling from Ward for about $30
r
OOO
r
according to a summary of
his initial Interview. Ward suggested the deal because he ne.eded money for his re-election campaign
r
Allen said.
.. !nclud.e a yearr but Allen
said that the deal was conducted with the' heiR of someone named, Earl Robin-soh. State lana fecoras show that
Ward sold property in Sterling to Ear(piiililfobinson of Oklahoma in October 2000, when Ward was r-unning for
re-.etection to· his Seriate seat.
Ward.won in 2000 but lost to Tom Wagoner tWo years -later.. When Ward tried-to wrest back the seat in 2004; he
again approached Allen for moneYr according to_the. summary. This timer Allen refused but he
agreed not to help Wagoner
r
the incumbent.
Ward, a Republican "Yho represented South Anchorage and the Kenai, served in the Senate from until his
third term ended in 2003. He also served a House in the early 1980s. FBI - Stevens-2236
Ward also has been linked to the criminal case against former halfway house operator Bill Weimar, who has
pleaded guilty to two charges and is awaiting sentencing. We'imar has admitted being part of a conspiracy to
funnel money to acampaig'n consultant for an unnamed· candidate
r
knowing the candidate supported a private
. - 'that candidate -appears to tie Wa-rd. - _.. - - - . -- -
Ward aid not return calls for this story or following Weimar's .guilty plea in August. Ward has not been charged
with any- wrongdoing.
BEV MASEK
Allen helped outMasek
r
a former Republican state representative from Willow
r
. "as she needed things/, accordihg
.. of initial interv.iew. he would pay to. gas tank when she had no money,"
the s t ~ t e m e n t said. He helped her 1:::) a flat tire. And, he told the FBI, he oe her cash.
When"Masek faced complaints before the Alaska Public Offices Commission and the legislative ethics-committee,
Allen said he directed lawyer Jack Miller to represent her. Veco paid the bill, Allen told the FBI. He couldn't
remember the total but said it could have been as much as $30,000. A call to Miller was not returned.
Masek didn't return repeated telephone calls seeking comment.
She served five terms in the state House, but lost in the 2004 primary election.
In September 2004, after a lengthy investigation generated by a complaint, the public offices commission fined
Masek $1,000 for improperly spending campaign funds on personal items and to repay loans. The next year, a
House ethics subcommittee found cause to believe that she broke state ethics law by using an aide for personal
errands on state time and for "financial convenience." The employee had complained he had to loan her money
or be fired. By then she was no longer in office, so no sanctions were imposed.
APOC wondered back in 2004 whether Allen was paying Masek's legal bills, Chris Ellingson, APOC assistant
director, said this week.
"We suspected since it was his attorney that represented her. It didn't matter on our part," Ellingson said. While
that may have been an ethical breach, it wasn't within the purview of APOC, she said.
Masek has not been charged with any wrongdoing.
CHERYLL HEINZE
As to Heinze, Allen said she was still in the Legislature when she came to his house seeking a job for herself or
her husband, according to the FBI summary of his initial interview.
"At the time, Allen thought he was being set up by Heinze and Allen refused her request for a job," the interview
summary said.
That didn't happen, Heinze said when reached on the phone this week.
"Good Lord!" she said. "I'm sorry. He's naming anyone and everyone he can name and trying to save something
for his-own kids.· And he better_the hell leave me out of it."
She remembers going to Allen's home for the Young fund-raisers, but says she never talked to Allen about a job.
"You know when he did the pig roast, everybody went. That's it," she said.
Heinze, a Republican from Anchorage, served a single House term after being elected in 2002. She suddenly
dropped out of her 2004 race. That fall, her attorney, Jeff Feldman, confirmed that the FBI had been investigating
her after complaints about her soliciting consulting work from Railbelt utilities. But nothing ever came of that.
At any rate, Heinze said this week she has never spoken with the FBI about anything. She has not been charged
with any wrongdoing. FBI - Stevens-2237
BEN STEVENS
In his interviews with federal agents, Allen couldn't recall work that former Senate President Ben Stevens did for
Veco after becoming a legislator in 2001. Ben is Ted Stevens' son. For years, both before and after he was in the
Legislature, Ben was a paid Veco consultant.
In his interview with agents in December 2006, Allen said that all Ben Stevens did for Veco the preceding year
was work on the proposed gas pipeline and an oil tax that North Slope oil producers wanted.
"He knew more about these issues than anyone else," according to the summary of interviews from Dec. 11 and
-., .- :- -
12, I 0 0
Ben Stevens was appointed to the Senate, he was a smart and capable consultant, Allen told federal
agents.
When Veco had trouble getting what it was due from Pakistani officials for a pipeline, Ben Stevens went to the
World Bank and negotiated payment, Allen said. He also helped on a project building a harbor on Sakhalin Island
in Russia, Allen said. '
But once he became a senator, his work dropped off, Allen acknowledged.
"There was concern in Veco that Ben Stevens was not doing any work and he was billing Veco monthly for work,"
according to the December 2006 interview summary, which was prepared by Internal Revenue Service agents.
Veco's lawyer and chief officer were worried the company would get in trouble, the interview summary
said.
In one five-year stretch, from 2001 through 2005, Ben Stevens made $252,000 from Veco, according to his state
disclosure forms.
"Ben, since the date tl)e search warrants were executed mor.e than two years ago, has insisted that he is
innocent and did nothing wrong," his attorney, John Wolfe of Seattle, said Thursday. "He has been quite clear
that Mr. Allen's statements about him are false and nothing new has transpired to cause him to change that
opinion."
Ben Stevens has not been charged with any wrongdoing.
'SPECIAL BONUSES'
In those December 2006 interviews with the IRS and the FBI, Allen described Veco's special bonus program in
detail.
Extra or special bonuses were paid to some Veco executives for political purposes, Allen told the federal agents.
Allen said Veco President Pete Leathard, and himself had a meeting' each year to determine which
politicians, charities and community events they wanted to support. They mostly supported oil-industry-friendly
Republicans,.he Yio..lJl.Q up for election and "guesstimate" bonus amounts
based.on the number of contribution a-mounts! he said:
A-select group of executives received the special bonuses: Leathard, Smith, Roger Chan, Tom Corkran and Jamie
Slack, Allen said, the summary said.
Allen figured the executives would not make political contributions on their own without the special bonuses,.but
also told the agents ,that no one was obligated to make contributions and a couple of executives weren't in the
program. FBI - Stevens-2238
"The Veco executive often agrees to the amount and Rick Smith will write that amount on the executive's
'bu"siness card as an IOU," the IRS summary said. He then would give the IOU to their personal assistant, Linda
Croft, Allen told the agents. '
_Sometimes, urged Allen to support Republican Mike McGavick in his
ultimately unsuccessful challenge two ago to Democratic Sen. Mafia Cantwell.in Washington' .
interview summary said. McGavick later returned the donations, according to news reports.
Allen told the agents that he thought the special bonus program was legal, and he testified the same way at
Kott's and Kohring's trials.
Leathard also thought it was legitimate, said his attorney, David Marshall of Bellevue, Wash.
',. "He there's nothing wrong with a bonus program for
i
O
• - - - -- -. -
7
their own chOicesot6 who they wish to cqntribute to," O"shall said.
Leatnard has not been charged with any wrongdoing. Allen and Smith are the only former 'Yeco executives who
have been charged.
For years before the company was sold in 2007, the Veco executives were among the state's most active
campaign contributors.
Find Lisa Demer online at 9_dl1.com/i=ontact/.ldemer or call 257-4390.
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FBI - Stevens-2239
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Juror's absence might hold up Stevens decision
FATHER DIED: Deliberations could go on with 11; alternate may be tapped.
By RICHARD MAUER and ERIKA BOLSTAD
Anchorage Daily News
(10/25/0803:35:39)
WASHINGTON -- Eleven jurors went home early Friday without deliberating the fate of Sen. Ted Stevens after the
judge located the 12th in California, where she had flown on short notice to attend her father's funeral.
The unplanned day off may be followed by another on Monday and possibly again Tuesday, depending on how
U.S. District Judge Emmet Sullivan decides to proceed.
G
Sullivan ordered attorneys for both sides to his. court at 9 a.m. Friday, when he reported on a conversation he
had with Juror 4 late the night before. The juror, initially reported to have gone to Texas for a family emergency,
was in California, where her father had died, the jUdge said.
On Wednesday, the jUry began considering whether Stevens is guilty of seven counts of failing to disclose gifts he
received from 2000 to 2006, but little has gotten done so far.
SuJlivan said he didn't want to press the juror on her ability to return so soon after she had arrived. He said he
had arranged to call her again Sunday afternoon from his chambers, with one attorney from each side present, to
let .her give a self-assessment of her emotional state, her desire to continue on the jury and her next availability
in Washington.
Without committing himself, Sullivan said he might allow her until Wednesday to return to the jUry room.
Because jurors can't deliberate without all members present, that would amount to a five-day juror holiday at the
late stage of a trial -- and with Stevens' election looming.
Stevens' attorneys said that was fine with them, but prosecutors said a long break would be too disruptive.
Sullivan said he had two other options. He could dismiss Juror 4 and allow the jury to continue with 11 members.
The law allows that. In fact, the first trial brought by federal prosecutors in the current public corruption
investigation in Alaska, the bribery case of former Rep. Tom Anderson, R-Anchorage, was decided by an 11-
member jury. Anderson was convicted in July 2007 and is now in a federal penitentiary.
Sullivan could also replace Juror 4 with one of the four alternates who sat through the trial. To keep that option
open, Sullivan asked the first alternate on the list -- Juror 11 -- to appear Friday morning to see if she were
available and still qualified. FBI - Stevens-2240
The juror, perhaps the most copious note-taker on the panel, testified under gentle questioning from Sullivan
that she had not talked to anyone about the case and had successfully avoided media and Internet accounts of it,
as the judge had admonished the alternates on Wednesday.
When.Sullivan asked her whether she had made-up her mind on Stevens' guilt, the juror hesitated for a moment.
She said she hadn't, but the judge wanted to know what she was pondering.
"I paused because I wanted to think if I'd formed an opinion," Juror 11 said. That answer seemed to satisfy
Sullivan, who said he'd be back in touch with her Sunday, one way or another.
Sullivan also summoned the remaining 11 jurors to his courtroom. "Everyone needs a day off now and then," he
told them, without explaining the cause of the holiday.
r------,------ ',,-...-.-.-- . - -. " -- -- - -- -:-:-;-------,--,,--,---.,---
The jufors have been part of since 22, jUry seleCtiOgan. During the trial, a day off or
an earllf dismissal by invariably greeted with big smiles and muted cheers by the jury, followed
byJ'boisterous conversation as they passed out the back door of the courtroom and into the secure hallway.
There was none of that Friday. Only the day before, the foreman had indicated they were making progress in the
afternoon note he sent out to mark the end of Thursday's deliberations. There was no way to know what the
jurors were thinking when they left the courtroom Friday morning, but their mood was noticeably subdue9.
After seeing the jury leave and after he questioned Juror 11, Sullivan appeared to be reconsidering the notion
that he would allow the grieving juror until Wednesday to return.
Would he call in the alternate? One downside, he said, was that he would have to instruct the jUry to start their
deliberations over with the new juror.
But there were other considerations. On Thursday, a disruptive juror slowed progress and led the rest of the'jury
to ask that she be removed. That was resolved by a heart-to-heart talk from the jUdge, but It was enough for him
to express caution about proceeding with only 11.
"We lose another juror, we have major problems," he said. "I'm not sure I'll --" he started to say, then stopped.
''We have major problems."
Stevens' lawyers argued Friday morning for waiting to see whether the juror could return, rather than calling in
an alternate or proceeding with 11 jurors. Prosecutors said they'd prefer to go with the alternate juror.
"This is a lot placed on this juror/' said one of the prosecutors on the-Justice Department team.
Sullivan said that after his Sunday conversation with the grieving. juror, he'll return to the open courtroom at 6
p.m. for ,further discussion -- and perhaps a decision -- on how to proceed:
Contact Richard Mauer at and Erika Bolstad at ebolstad@mcclatchy_dc.com.
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FBI - Stevens-2241

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Stevens jury gets an alternate
FUNERAL: Judge Sullivan replaces the missing juror; the trial will resume today.
By ERIKA BOLSTAD
ebolstad@adn.com
(10/26/0823:53:47)
WASHINGTON -- After a one-day delay in jUry deliberations, Sen. Ted Stevens' corruption trial will resume again
this morning with an alternate juror replacing the one who left last week for her father's funeral in California.
Judge Emmet Sullivan paused proceedings Friday morning after the juror learned the previous night that her
father had died and she needed to depart to attend his funeral. He had hoped to bring the juror back to continue
deliberating with the other 11, but couldn't reach her Friday or over the weekend to determine whether she
would still be available.
Instead of the trial being delayed any further, an alternate will take the missing juror's place and jurors will
continue deliberating this morning. The juror who's in California will be dismissed.
"We have four alternates for this reason," Judge Sullivan said in court Sunday evening, in a rare weekend
hearing. The four alternate jurors have sat through the entire trial.
The delay pushes a verdict in the case one day closer to Election Day, when Alaska voters also have a say in
the Republican senator's fate. Stevens, who was indicted in late July, asked·for an expedited trial
. date in the hopes of going to voters with an acquittal in hand, but his trial is now entering its sixth week. On Nov.
4, Stevens faces the most competitive race of his Senate career, against Anchorage Mayor Mark Begich, a
Democrat.
The Justice Department was fine with the. alternate juror, said prosecutor Nicholas Marsh, especially since the
jury is "in the infancy of deliberations."
Stevens' attorneys offered only mild objections-to the alternate, but did say they_preferred to proceed with 11
jurors. The deliberations are at a "sensitive juncture," said one of Stevens' lawyers, Robert Cary, and they were
reluctant to force the jurors to start over.
But Sullivan said he was leery of proceeding with just 11 jurors, based on the issues that have already arisen
with the jury.
EARLY STRESS
FBI - Stevens-2242
Their first day of deliberations last week, jurors asked to go home early because they were stressed and needed
"clarity." The second day, Thursday, 11 of the jurors complained in a note about a 12th juror and asked her to be
removed from the panel for being rude and prone to "violent outbursts with other jurors." The,judge resolved the
problem-with a stern lecture on civility and the jurors left Thursday afternoon all smiles.
-Then, just hours later on Thursday evening, the juror learned her father had died and Sullivan halted the
proceedings until he could figure out how to handle the issue of the missing juror.
Federal juries are allowed to proceed with fewer than 12 jurors, and while it's common to reach a verdict with
just 11, it's almost unheard of to proceed with fewer than that. An alternate does require the whole jury panel to
start from scratch, however, and although jurors had only deliberated about a day and a half so far, they
appeared to be moving at a pretty fast clip. Jurors passed the judge a note Thursday afternoon saying that they
had already reviewed all the evidence.
, . Thejury of-eighLwomen and four men. must .review felony to determine Whether Ste\l.en.s i? guJ!ty of
-gg. I tq <..t11--7't'..v-(f'67c) ..... e..
lying on his Senate disclosure foOabout gifts, mostly home repairsfrQhe oil-services company Veco Corp.
andJts former owner, Bill Allen. ~ e n s is also accused of accepting other gifts from other friends and failing to
repC{J;t them.
The first of seven counts accuses Stevens of scheming to cover up the false filings; the'other six charge him
directly with lying on the Senate financial-disclosure forms for failing to disclose gifts and' benefits in excess of
the Senate gift limits. Those limits ranged from $260 in 2000 to $305 in 2006.
The government estimates the value of the gifts at more than $250,000 over a six-year period. That includes the
value of the renovations that doubled in size Stevens' home in Girdwood.
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FBI - Stevens-2243

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Friend's eatery located on road Stevens got paved
$2.7 MILLION: Spokesman says senator set aside funds at local officials' request.
By GARANCE BURKE and ADAM GOLDMAN
The Associated Press
(10/26/0823:12:11)
FBI - Stevens-2244
GIRDWOOD -- Just 0.7 miles Ion Crow Creek Road isn't a road to nowhere. It runs straight to the Double Musky
Inn, a Cajun bistro owned by Bob ersons, a close friend of Alaska Sen. Ted Stevens.
.'
It cost taxpayers $2.7 million to wi n and pave that road, and Alaska had higher priorities, But an Associated
Press examination of government e- ails and interviews with state transportation officials found that Stevens
moved the project to the front of the 'ne.
Persons, owner of the popular watering hole where the Republican senator frequently dines, testified as a defense
witness this month in Washington, D.C., where Stevens is on trial for failing to disclose more than $250,000 in
gifts.
"This is a classic pork barrel project that just confirms everyone's said David Williams, a vice president for
policy at Citizens Against Government Waste. "It's like 'Hey, if you're my buddy, I'll just get you a few million
dollars and make you a road to your restaurant.' "
Details of the Crow Creek deal emerged as Stevens awaits a verdict in his trial. He. is charged with lying on
'Senate financial disclosure'forms about gifts, including more than $250,000 in home improvements to'his cabin,
not far from the Double Musky.
Trial testimony indicated that Stevens granted Persons power of attorney to guide the home renovation. Among
the many presents Stevens is charged with concealing is a nearly $2,700 massage chair from Persons. Stevens
sav.s the chair was a loan, But his explanation of why he kept it in his house for seven years led to one of the
more awkward exchanges of his testimony.
Telephone messages left a Persons' home and the restaurantwere not immediately returned.
Stevens' spokesman, Steve ackowski, declined to answer specific questions from the AP concerning Stevens'
communications with Persons out the road. In a statement, he said the senator set aside the money at local
officials' request and believed aving the road would boost tourism to a historic gold mine two miles beyond
where the asphalt ends.
Stevens' intent, as relayed through his staff to state officials, "was that any improvements or construction must
continue all the way up to the mine," according to the statement.
In 2002, when Stevens was chairman of the Senate Appropriations Committee, he inserted last-minute language
in a transportation bill to secure $10 million for "Girdwood: Road Improvements." He then ensured that his
intentions to pave his friend's road were carried out.
Girdwood officials planned to cut that project, however, and repair residential streets with the money, according
to the e-mails. They had other priorities such as fixing trails and easing traffic.
That was unacceptable to Stevens, the longest se ing Republican senator. Stevens, in office since 1968, has
brought home billions in projects to his state.
In a June 2003 e-mail, a Stevens office worker, Lisa utherland, warned trte director of Alaska's state office in
Washington, D.C., that Stevens "would then be critici or fixing up his own street. Remember he lives there.
The best person to,talk to to get.guidance,is Bob.Perso s." a' )( __ /?'
, _ It '11"r--AfW,.;.( "--.
I was. reaqy to help. 0 0
, j I-
At5lttherland's suggestion, a state transportation official, pavid ost, called Persons to clarify the senator's
intent. Persons said the senator wanted the money to pave row reek Road, a spruce-lined path dotted with a
few commercial businesses. '
Post told the AP he found it unusual to get direction on a publicly fu ded project from someone outside
government. "It struck me as odd, yes," said Post, a regional transp rtation planning manager.
In an e-mail from June 24, 2003, the department's chief of planning for the central region wrote a colleague
about Post's conversation with Persons.
"Spoke with Bob Persons this morning as lisa suggested and his understanding from the S ator was that Crow
Creek Rd. is number 1 priority because it is in such bad shape," reads the e-mail from olley. "This is
'somewhat' consistent with the board of supervisors' priorities, however they have some othe
their top 7 priorities."
In fact, the paving of Crow Creek Road was No.6.
Stevens and, Persons have known each other for 25 years'. Persons and his wife, Deanna, have contributed nearly
$7,000 to Stevens' campaigns over the past decade.
The'New Orleans-themed restaurant, which has been featured on the Food Network's "Best Of" series, is less
than two miles from Stevens' house, near the Mount Alyeska ski resort. Stevens wrote an introduction for
Persons',- cookbook, praising his "honestly good meals." '
In 2000, when the senator needed to renovate his cabin, he asked Persons for help. Prosecutors say Persons
knew Stevens was not paying the full cost for the work and that he helped cover up who was -- an Alaska oil..;
'services company.
Per\ons' son Justin, who co-owns the Musky, told the AP his father voiced concern about the paving project when
took out trees along their property line this year.
. Justin ersons said his father did not support the paving because the family long had enjoyed the "novelty of
driving a bumpy dirt road to a great restau'rant."
But Post Persons never objected to it when he called in 2003.
The restaura\eur submitted one comment at a public meeting about the road project in 2004, urging authorities
to' "keep it narrow and add bumps wi gravel shoulders walkers & runners."
The repaving originally was intended to stretch 3.5 miles but , to be scaled back in part due to the cost of
replacing a bridge farther along Crow Creek Road, said Jennifer itt, a transportation department chief.
Today, the asphalt ends just past the Double Musky. Witt said in
But had Stevens done a favor for his friend?
"I could see where it appears that way," said Witt.
\ interview it's a C,Qincid.ence.
\ - stevens-2245
Associated Press writers .Justin Pritchard in Girdwood and Matt Apuzzo in Washington contributed to this report.
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Stevens jury gets down to detail work
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/27/0811:23:48)
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WASHINGTON - Jurors weighing whether Sen. Ted Stevens is guilty of lying on his financial disclosure forms have
developed a reputation for flaky behavior over the past several days, but they are apparently giving the evidence
a meticulous reading.
Today, the jury picked up on a discrepancy between the indictment and the evidence in the case against the 84-
year-old senator from Alaska. Why, jurors wondered, does the indictment say Stevens checked "no" on his 2001
financial disclosure form when asked whether he accepted any gifts?
The indictment also alleges Stevens did not attach any schedule detailing what gifts he received. Yet Stevens
actually checked "yes," acknowledging that he had received gifts, the jurors noticed. Stevens also disclosed a
gif!:: a $1,.100 gold commemorative coin struck for the 2001 Special Olympics in Alaska.
The judge decided to answer the question by instructing jurors that "the indictment is merely a charging
document; it is not evidence. You must consider all the evidence and my instructions to determine whether the
government has proven each element of an offense in the indictment beyond a reasonable doubt."
The juror question refers to the first p'age of the disclosure form, on which senators are asked to report any gift
of a value of $260 or more from 2001. Senators who check "yes" are directed to fill out a supplement schedule
listing each gift, its source and its value.
For some of the years covered in the indictment, Stevens checked "yes." For instance, in 2004 he reported
receiving an $800 rug from the president of Azerbaijan, which he donated to the secretary of state. But in no
instance from 2000 to 2006 did Stevens list gifts from Veco or Bill Allen, the two people accused of providing
most ofthe unreported gifts to him.
The discrepancy caught by jurors got by nearly everybody -- the judge, lawyers on both sides and even reporters
who have sat through the proceedings. Still, U.S. District Judge Emmet Sullivan disagreed with prosecutors when
they called it a typographical error.
"Presumably somebody reads these indictments before they return them," he said, his voice dripping with
sarcasm. "Presumably."
The jury's attention to detail suggests its members are combing carefully through their instructions and matching
up all of the counts in the instructions with the evidence and the allegations in the indictment.
"This jUry is very perceptive; they aren't missing anything," Judge Sullivan said.
The jury's question is an' important one because the year 2001 is at the heart of the government case, which
accuses Stevens of accepting more than $250,000 in gifts over six years and willfully failing to disclose them on
his financial disclosure forms. FBI - Stevens-2246
In 2001 alone, Stevens is accused of accepting $110,153.64 in materials, labor and other renovation expenses to
his home in Girdwood. He also is accused of accepting furniture for that home and a $2,695 massage chair for his
home in Washington, D.C. Other gifts prosecutors said he accepted include a new tool cabinet with tools, a new
professional Viking gas grill and a stained glass window.
One of-Stevens' attorneys, Craig Singer"argued that gtevens .can't be acc,u,sed .of.l11ak,ing false
- gg f.p I? '1A--A1-' -(:/(70 -..v--. <2- '
----------- ------'
FBI - Stevens-2247
he did answer "yes" that he accQ gifts. 0
,
countered that the discrepancy doesn't matter. Even if Stevens did check "yes" on the form, he
legaflyobligated to report all gifts he received, and he never disclosed receiving any of the home_ repairs he
got from Allen, Veco and others.
The jury passed the note to the judge shortly after noon on Monday Washington time, about three hours into
their deliberations.
Jurors, who got the case Wednesday afternoon after four weeks of testimony, were ordered to start deliberating
from scratch Monday after one of the jurors had to be dismissed over the weekend and replaced with an
alternate. The dismissed juror learned her father died last week, holding up deliberations for a day while the
judge determined whether to proceed without her.
Jurors got their flaky reputation last week when just a day into deliberations, they sent the judge a note asking
for one of the jllrors to be removed. The juror was having' "violent outburst with other jurors," they told the
judge. He lectured them on civility and jurors left for the day all smiles, the problem apparently resolved.
But then a juror's father died and she had to leave. The jUdge lost touch with the grieving juror, No.4, over the
weekend and couldn't determine whether she'd be available this week, so he decided Sunday to appoint an
alternate juror.
Sullivan had halted deliberations Friday, but he decided in a hearing Sunday night to begin again with the
alternate Monday morning.
As soon as court began for the day, Sullivan brought the alternate in for a brief conversation to see whether
-anything had happened over the weekend that would make her unable to deliberate and then told her to rejoin
the jurors.
"We really appreciate your availability. Thank you," he told her. As one of four alternates, she'd sat through the
trial but was dismissed once the jury began its deliberations ,last week. However, she and the other three
alternates were warned not to read anything about the trial or talk to anyone about it because they might still be
asked back.
The judge brought in the other jurors and told them not to speculate about why juror No.4 no longer was
present. He didn't tell them-about her-personal-situation.
He also told them they needed to start their deliberations from scratch with the alternate juror but that how they
did it was for them to decide.
Federal juries are allowed to proceed with fewer than 12 jurors. However, while it's common to reach a verdict
with just 11, it's almost unheard of to proceed with fewer than that. Stevens' attorneys had advocated continuing
with 11 rather than replacing the missing juror with an alternate.
The jury of eight women and four men must review seven felony counts to determine whether Stevens is guilty of
lying on his Senate disclosure forms about gifts, mostly home repairs from the oil-services company Veco Corp.
and its former owner, Allen. The Alaska Republican also is accused of accepting other gifts from other friends and
failing to report them.
Although it's impossible-to tell where-it was in its deliberations before losing - then regaining - a juror, the
jury appears to be moving at a pretty fast clip so far. It got the case Wednesday afternoon and sent Sullivan a
note Thursday afternoon asking to go home a little early and saying it had reviewed all the instructions.
The jUry's prompt and apparently meticulous start Monday morning was a positive development for a panel that's
had more than its share of theatrics since it began its deliberations. The judge took note after it left the
courtroom to begin deliberating.
"Everyone was smiling. Everyone seems to be in a good mood this morning," the judge said. "No one appeared to
be-agitated or displeased. That's alU,have to say."
Anchorage Daily News
Timeline: Begich, Stevens and JL Properties
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tevens invests $50,000 'in a new real estate venture led by
yde.
1999: Stev invests another 50,000 in a Fairbanks apartment project developed by Rub.
2000: Stevens intervenes to help Rubini, Hyde and other partners -- which do not include Stevens -- after the
U.S. Air Force backtracked on a deal for the group to build, renovate and run housing on Elmendorf Air Force
Base. The group ultimately wins the lucrative contract.
May 2002: A Rubini and Hyde group buys the Calais-office buildings in Midtown Anchorage from an Outside
company.
August 2002: A Rubini and Hyde group buys land on Fifth Avenue downtown on which to build a headquarters
for the National Park Service. Mark Begich, who was not in office, was the real estate agent on the
$22,500.
December 2002: Rubini and Hyde give Begich an interest in Calais partnerships. _
Feb. 5, 2003: Begich announces he is running for mayor.
Feb. 23, 2003: Congress approves $3.75 million appropriation to buy land for a new archives center in
Anchorage. .
April 1, 2003: Begich wins in a narrow victory over incumbent Mayor George Wuerch.
May 5, 2003: Leonard Hyde offers to sell either of two parcels to the federal government for a National Archives
center. One is nine acres at 40th Av.enue and Denali. The other, also in Midtown, is in what's called Centerpoint
II, which includes Stevens as an inv tor.
June 2003: Rubini and Hyde's group, agle River Center LLC, buys the nine acres at 40th and Denali for $1.5
million from a retired teachers group.
Nov. 13, 2003: Agreement reached betwe n Eagle River Center LLC and Midtown park committee to give it 20
percent of any net profit if the land is sold for a National Archives building in exchange for the group's support on
a rezoning from residential to commercial.
December 2003: Federal government gets two appraisals on the land at 40th and Denali. One sets the market
value at $2.9 million, which factored in the strong likelihood of the rezoning. The other put the value at $1.95
-million under residential zoning and $4.5 million if rezoned commercial.
FBI - Stevens-2248
Jan. 23, Congress approves another $2,250,000 for the archives land.
Feb. 2, 2004: Begich writes letter to the municipal Planning and Zoning Commission supporting the rezone of
the property.
Feb. 9, 2004: Planning and Zoning Commission recommends re;z:oning.
.,. . . . ,....
·Jun.e 200.4: t:tyde's gNsell the nine acres,at 40th and to the federal goverhment"for $3.5
.. !JrmS" had been agreed t\QJ V '
,
July 6, 2004: Archives property rezoning is approved·hy Assembly. Zoning'is not-effective unless.a-structure
plan is ap'proved within five years.
June 15, 2004: Stevens sells his interest in all investments with Rubini and Hyde.. One investment was sold
earlier in the year. He received $1,038,000 but also had to pay hefty taxes.
March 6,2006: Begkh sold 'his interest in the Calais partnerships for $53,430.
Sources: News stories, city records, land records, congressional bL!dget documents, Taxpayers for Common
Sense.
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VERDICT: GUilty
The Verdict: count-by-count
(10/27/0812:53:29)
Sen. Ted Stevens, R-Alaska, was convicted on all seven charges of making false statements on Senate financial
documents about gifts he received from contractor Bill Allen, oil services company VECO Corp., and others.
Below are the charges. The verdict form is broken down by year and jurors did not have to indicate which gifts, if
any, they believe Stevens concealed.
COUNT ONE: False Statements, Scheme
ACCUSATION: Stevens engaged in a scheme to conceal from his Senate financial disclosure documents home
renovations and other gifts he received from Allen and VECO from 2000-2006. Stevens contends he never asked
for any freebies and believed he paid for everything he received.
VERDICT: Guilty
COUNT TWO: False Statements
ACCUSATION: Stevens knowingly made false, fictitious or fraudulent statements on his 200i Senate financial
disclosure form regarding gifts from Allen and others. That year, VECO employees dramatic renovated Stevens'
mountain cabin, building a new first floor and installing a new electrical system. Allen also filled Stevens' house
with furniture, left a tool box in his garage and installed a grill on the porch. Stevens also received from another
friend an expensive massage chair, which Stevens said was a loan, and a custom work of stained glass, which
Stevens said his wife arranged and he knew nothing about.
VERDICT: Guilty
COUNT THREE: False Statements
ACCUSATION: Stevens knowingly made false, fictitious or fraudulent statements on his 2002 Senate financial
disclosure form regarding gifts from Allen and others. That year, VECO employees installed a new roof,
wraparound deck and rope lighting system on Stevens' home. An expensive fish statue, donated to his foundation
by an Alaska nonprofit group, was also charged as a gift because it ended up on Stevens' front porch.
FBI - Stevens-2250
COUNT FOUR: False Statements
ACCUSATION: Stevens knowingly made false, fictitious or fraudulent statements on his 2003 Senate financial
disclosure form regarding gifts from Allen and others. That year, Stevens received an Alaskan sled dog puppy
from a friend who paid $1,000 for it at a charity auction. Stevens reported the gift's value as $250 and wrote that
it was from a charity in honor of his public service.
VERDICT: Guilty
,.
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'#
FIVE: False StatementsO Q'
;.I
ACCUSATION: Stevens knowingly made false, fictitious or fraudulent statements on his 2004 Senate financial
disclosure form regarding gifts from Allen and others. That year, VECO employees installed or repaired kitchen
appliances and performed maintenance on" a rooftop snow-melt system at Stevens' house.
VERDICT: Guilty
COUNT SIX: False Statements
ACCUSATION: Stevens knowingly made false, fictitious or fraudulent statements on his 2005 Senate financial
disclosure form regarding gifts from Allen and others. That year, VECO employees performed roof and gutter
repairs and electrical wiring.
VERDICT: Guilty
COUNT SEVEN: False Statements
ACCUSATION: Stevens knowingly made false, fictitious or fraudulent statements on his 2006 Senate financial
disclosure form regarding gifts from Allen and others. That year, a VECO employee and an outside contractor
performed work on the boiler at Stevens' house. VECO's costs were never paid and Allen paid the outside
contractor's labor. Stevens says he asked to be billed and didn't consider it a gift.
VERDICT: Guilty
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FBI - Stevens-2251
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Jury finds Stevens guilty of lying about gifts
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/27/08 15:47:57)
WASHINGTON - A jury today found U.S. Sen. Ted Stevens guilty of all seven counts of lying on his financial
disclosure forms.
It is the highest-profile felony conviction in a sweeping four-year federal investigation into corruption in Alaska
politics, and.a rare conviction by ajUry of a sitting U.S. senator.
Jurors found Stevens, 84, guilty of willfully filing false financial-disclosure forms that hid such gifts as a $2,695
massage chair, a stained glass window, a sled dog and renovations that doubled the size of his Girdwood home.
Those gifts, valued at as much as $250,000 over seven years, came mostly from his former friend Bill Allen, the
star prosecution witness in Stevens' trial and the former owner of Veco Corp.
The oil field-services company was one of Alaska's largest private employers before Allen, caught up in the /:N
federal corruption probe himself, was forced to sell it last year.
Now, Alaska voters will decide whether Stevens, who's represented the state in the Senate since 1968 and
that in the cmd as a former assistant U.S. attorney and Interior Department official,
should continue to serve as their senator.
That decision came quickly for they jurors, who deliberated for less than two full days. As the jury foreman read
out the first guilty count this afternoon, the senator slumped slightly but was silent. When the second count was
read, his lawyer Brendan Sullivan reached over and put his arm around Stevens. Sullivan shook his head in
disappointment as the verdict was read.
As tile senator eXited the packea courtroom, his. wife, Catherine, kissed him on the cheek.
"It's not over yet," he told her. She responded: "You got that right."
Then he added, "Not over yet."
Stevens' lawyers, whose firm is well known for not speaking to the news media, exited the courthouse with the
senator, who sped off in a van without saying anything. FBI - Stevens-2252
Several hours after the verdict, Stevens issued a defiant statement maintaining his innocence..He accused
prosecutors of misconduct and announced his intention to remain a U.S. Senate candidate on the Nov. 4 ballot.
"I am obviously disappointed in the verdict but not surprised given the repeated instances of prosecutorial
misconduct ill this case," Stevens said. "I will fight this unjust verdict with every ounce of energy I have."
For the first time in his career, Stevens faces a competitive re-election fight, against Democratic Anchorage
Mayor Mark Begich. The Alaska Democratic Party called for Stevens to resign, but Begich was more measured.
"This past year has been a difficult time for Alaskans, but our people are strong and resilient and I believe that
we will be able to move forward together to address the critical challenges that face Alaska," Begich said in a
statement.
Alaska Gov. Palin, the Republican vice-presidential candidate, a statement keeping in line with the
-i¥<1 l q ---ri,
antH;orru'WiOH rhetoric that figOin her campaign trial stump speechO
"v
"This is a sad day for Alaska and for Senator Stevens and his family," Palin said. "The verdict shines a light on the
corrupti.ng influence of the big oil service company that was allowed to control too much of our state. That control
was part of the culture of corruption I was elected to fight. And that fight must always move forward regardless
of party or seniority or even past service."
Stevens, who was indicted in late July, sought an early trial date, gambling that he'd face voters as an innocent
man. Even without the conviction, though, in order to re-elect Stevens, voters would have to overlook four weeks
of testimony that exposed some of the senator's innermost financial and personal secrets.
The guilty verdict will complicate not only his re-election bid but also the remainder of his term in the'Senate. His
colleagues have the option -- never exercised -- of voting to expel him before his term ends in January. Four U.S.
senators have been convicted of crimes, historians note, but not one has received a presidential pardon.
The rules of succession are complicated in Alaska, where courts haven't ruled on a referendum that prohibits the
governor from appointing a senator if the office is vacant. That referendum was enacted after then-Gov. Frank
Murkowski appointed his daughter, Lisa Murkowski, to the U.S. Senate seat he vacated.
The corruption trial, which began Sept. 22, featured 24 government witnesses and 28 defense witnesses. Jurors
began their deliberations Wednesday afternoon, but halted Friday morning when one of the juror's left town for
her father's funeral. U.S. District Judge Emmet Sullivan appointed an alternate juror Monday morning, and by 4
p.m., the panel had reached a verdict.
Stevens took the stand in his own defense, a tactic that appeared to hurt him after prosecutors painted him as a
disagreeable and mean-spirited man who considered himself above the law.
"This has been a long and hard fought trial," said the head of the Justice Department's criminal division, Matthew
Friedrich, in a press conference outside the courthouse after the trial. "The PE!partment.is pr()ud of this team not
only for this trial but for the investigation which led to it. "This investigation continues,' as does our commitment
to holding elected officials accountable when they violate our laws."
the senator's defense rested on the theory that he and his wife had paid all the bills they'd received in connection
with the renovations of their home in Girdwood.
Catherine Stevens also took the sta.nd, prOViding cqntradictory testimony that may have persuaded the jurors
that their conflicting stories meant that they were lying or covering up a crime.
The jurors had to weigh the husband and wife testimony against that of Allen, who pleaded guilty to bribing state
lawmakers in Alaska in an unrelated case.. Allen agreed to testify in Stevens' trial and two others in exchange for
leniency in his own sentencing and the promise that prosecutors wouldn't charge his children in the corruption
investigation. FBI - Stevens-2253
The jury also heard from a parade of tradesmen who had nothing to gain by their testimony.
Almost daily for the first two weeks of the trial, the government introduced evidence showing that Veco
employees -- particularly electricians and a plumber -- were on the job daily. Prosecutors also showed that the
project's two supervisors were being paid by Veco and that the company provided much of the materials for the
renovation arid all the later additions and some repairs and furnishings. Stevens' lawyers never presented
~ v i d e n c ; e in the case that. Stevens or his wife ever paid Veco a penny for the work.
The Justice Department has charged 11 people in connection with its corruption probe in Alaska, including five
former and current state legislators in Alaska. Other than Stevens, five pleaded gUilty, three were convicted by
juries in Alaska and two await trial.
Judge Sullivan has not yet set a date for sentencing and first must hear a series of post-trial motions, such as
one from Stevens seeking a new trial. Eafh of the seven felony counts carries a sentence of up to five years in
prison.

..
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FBI - Steven5- 2254
Stevens guilty: 'It's not over yet,' he says
By ERIKA BOLSTAD and RICHARD MAUER
Anchorage Daily News
(10/27/0820:51:00)
WASHINGTON - A federal jury on Monday convicted U.S. Sen. Ted Stevens on all seven counts of lying on his
financial disclosures, a crippling blow not just to his election chances next week but to his legacy as Alaska's
longest serving and most accomplished living politician.
Stevens also risks jail time. The seven felonies each carry a penalty of five years in prison, though it's unlikely a
significant prison sentence, if any, would be imposed on an 84-year-old, first-time offender with a long record of
public service and a longer list of character references.
"It's not over yet!" Stevens said angrily to his wife as he walked from the courtroom Monday afternoon.
"You've got that right," Catherine Stevens replied as she reached for him through the crowd of supporters @
rushing past reporters for the door.
"Not over yet," Stevens said.
Neither he nor his lawyers talked to reporters as he left the courthouse and climbed into a waiting wh_ite van amid
athrong of cameras. -
He later issued a statement maintaining his innocence and saying he will continue to fight the charges and
accusing prosecutors of misconduct. He remains a candidate for office, he said. Neither his Senate office nor his
responded to an e-mail request for an interview.
Stevens is by far the highest profile defendant among nine legislators, businessmen, lobbyists and an state
administration official to-have'been convicted in the massive FBI-investigation of corruption in Alaska. Two other
legislators await trial in Anchorage.
"This investigation continues, as does our commitment to holding elected officials accountable when they violate
our laws," said Acting Assistant Attorney General Matt Friedrich, reading a statement on the courthouse steps
after the verdict.
Among those still under investigation are Stevens' son Ben, a former president of the Alaska senate, and U.s.
Rep. Don Young, who's standing for election Tuesday with Stevens.
Stevens' defense team has until Dec. 5 to file motions for a new trial and other relief from Judge Emmet Sullivan,
who set a hearing date of Feb. 25. Sullivan indefinitely postponed sentencing.
UNREPORTED GIFfS
In convicting Stevens, the jUry had to unanimously decide he lied on his financial disclosure by not reporting gifts
and benefits.
Though the jurors heard character witnesses for Stevens, including former Secretary of State Colin Powell, none
started out with the kind of knowledge of Stevens that most Alaskans could recite: his long history of securing
federal money for his homestate, of supporting Alaska's military bases and Native institutions, his connections to
fisheries and the trans-Alaska pipeline, or that "Ted Stevens" is part of the name of the biggest international
airport in Alaska, the marine research center in Juneau and the science education center in Kenai.
I
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The judge/rEi!layed a message frcn:,e jurors that they would not consQ interviews. Their identities were
never;.-disclosed in open court a n ~ e y left the courthouse while Sullivan s court was still in session after the
verdict.
The Stevenses were the two final witnesses in a trial that began with jUry selection on Sept. 22. Fifty other
witnesses testified, many of them from the now defunct oil-field service company Veco. They told of being
directed to perform renovations and repairs on Stevens' official residence in Girdwood, turning the modest green
A-frame with a loft into a five-bedroom retreat with a new garage and kitchen.
In all, the government said Veco and its chief executive, Bill Allen, provided Stevens with some $250,000 in
services, gifts, furnishings and other benefits. Two other friends of Stevens - Bob Penney, the real estate
developer and sport fish advocate, and Bob Persons, the owner of Girdwood's Double Musky restaurant - also
provided gifts of a $1,000 dog, a $3,200 stained glass window and a $2,700 chair that Stevens didn't disclose,
according to evidence in the case.
Stevens and his defense challenged those dollar values on multiple fronts. Stevens said he didn't know that Veco
provided a dime's worth of work, and he disputed that any of the gifts were actually his to own, even though they
were in his homes in Girdwood and Washington - often for years.
But Senate rules provide a low threshold for reporting gifts - from $260 in 2000 to $305 in 2006 - making it
easier for the jury to decide than it might have been if the Senate values were much higher.
For instance, the jury didn't have to determine to the penny the validity of Veco's accounting that the house
renovations cost the company $82,000 in 2000 and another $110,000 in 2001. Those were the numbers initially
entered into evidence early in the trial, but were later shown to -be significantly flawed even before the
government rested its case.
Whatever the actual number was for the renovations, the evidence was overwhelming it was more_ than $260.
Under the law, any gift over the threshold amount had to be listed. Yet Stevens' forms never showed anything
from Veco, Allen, Penney or Persons.
'NOT A TYPOGRAPHICAL ERROR'
The jury began deliberations for the day about 9:30 a.m. It was the start of the third day of deliberations for all
but Juror 11, an alternate who had just taken the place of another juror who left to attend her father's funeral in
California. The judge in-structed the jUry that they would have to restart their deliberations to accommodate their
newest member, a prolific note-taker during the trial who runs a Web site for her church.
late morning, the jury sent out a note with a "significant question." It turned out they had discovered 'an error in
the indictment that had gotten though the prosecution team, the grand jury, two months of pre-trial wrangling by
both sides and a month's worth of trial. None of the 25 or so journalists regularly covering the case noticed it,
either.
The issue involved Count 2 and its reference to the fifth set of checkboxes on the front page of Stevens' 2001
report. It was there that Stevens was supposed to check whether he received more than $260 in reportable gifts
that year. FBI - Stevens-2255
The indictment said Stevens checked "No." But the jury discovered from looking at the actual disclosure that
Stevens checked "Yes."
They wanted to know how to deal with that discrepancy.
With the jury waiting in their room for an answer, the embarrassed prosecution team said the error in the
Indictment could be. considered a typo, but in any case wasn't significant. The gift Stevens listed in his back-up
schedule was a $1,100 gold coin struck to commemorate his honorary chairmanship of the Special Olympics
winter games in Anchorage that year. There was nothing in the schedule from Veco, Allen, Persons or Penney, as
charged in the indictment.
- ---------------,
The d e f e n 6 ~ said that if the juryOd there was no proof that StevensO checked "No," that might b ~ reason
enough for a not guilty verdict.
. ~
The judge decided to send an instructioD to the jury that the indictment is not evidence - only the disclosure
document itself was. The implication was that the jury could ignore the error.
As for the prosecution, Sullivan was displeased.
"Presumably someone reads these before they are submitted on the docket - it's not a typographical error," he
said.
On the other hand, he had high praise for the sharp-eyed jUry. By then, the jurors were taking lunch. Unknown
to anyone in the courtroom, they were also nearing a verdict.
'GUILTY'
Shortly after 3 p.m. Washington time (11 a.m. in Alaska), the jUry foreman, a balding, middle-aged man who
works for a drug rehabilitation agency, handed another note to the marshal guarding the door. As Stevens, his
lawyers, prosecutors and reporters responded to the summons from court officials, there was no direct word
about what the note said. Then Shelton Snook, the court administrator, told reporters that no one would be
allowed to dash from the courtroom, movie style, until the judge declared a recess. The marshal ordered
everyone to leave their cell phones and Blackberrys outside the courtroom.
At 3:53 p.m., the jury walked in the courtroom door. Everyone in the room stood. The only sound was from
people settling back into their seats. The jurors looked toward the judge and each other. None appeared to steal
a glance at Stevens or his wife in the front row of the spectator benches.
If-they had, they would have seen two grim faces. Stevens' face was slightly flushed, his wife pale.
Brenda Morris, the lead prosecutor, touched her fingers together and closed her eyes, like she was meditating.
Prosecutors Joe Bottini and Nicholas Marsh and FBI agent Mary Beth Kepner, the others at Morris' table, held
pens in their hands, ready to scrawl on legal pads.
"I will take the verdict," Sullivan told the foreman.
The foreman-passed a sealed manila-envelope tothe·marshal, who carried it to the judge. Sullivan ripped open
the-flap, checked the-form to make sure it was complete, then put it back in the envelope. He passed the
envelope back to the marshal, who returned it to the foreman.
Sullivan gave no hint of the verdict.
The foreman grabbed a microphone and stood. The only others on their feet where the three marshals guarding
the back door.
"As to count one, what is the verdict of the jury?"
In a deep baritone, the foreman replied, "Guilty."
Not a whisper moved through the court. Stevens didn't move.
Count two, asked the judge?
"Guilty," said the foreman.
FBI - Stevens-2256
The gray-haired Brendan Sullivan, Stevens' lead defense attorney, put his arm around Stevens' shoulder.
Count three?
.. the.foreman.
..
i->
Stevens closed his eyes.
Count four?
"Guilty."
G
o
Catherine Stevens' lips were quivering. Stevens' daughter Beth, who attended every minute of the trial, looked at
her feet.
Count five?
"Guilty."
Stevens shopk his head from side to side. Morris was stoned face. Bottini, Marsh and Kepner wrote furiously and
shoWed no reaction..
And so it went for the next two verdicts. Another defense attorney, Robert Cary, requested that the jurors all be
polled as to. whether they agreed. to the verdict, a common request of a losing side in court.
Each juror spoke. The verdict was unchanged.
Contact the. reporters: rmauer@adn.com and ebolstad@adn.com
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FBI - Stevens-2257
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Stevens plans return to campaign Wednesday
DOUBT: Conviction effects may be unknown until election next week.
By SEAN COCKERHAM and DON HUNTER
Anchorage Daily News
(10/28/0800:36:21)
A defiant Sen. Ted Stevens is returning to Alaska on Wednesday to resume his re-election campaign, despite
being convicted of felonies that carry the potential of years in prison. .
Stevens, 84, faces a challenge of historic proportions with just one week before the election. He'd be the first
convicted U.S. senator ever elected, on appeal or not.
Alaska pollsters and political consultants were skeptical of Stevens' chances Monday but not prepared to count
out the longest serving Republican in Senate history. Several pointed out that, contrary to most predictions,
Stevens surged in the polls after his indictment in late July, coming from far behind to what's essentially a tie
with Democratic opponent Mark Begich in most recent polls.
"That had to be people rallying to Ted against these Outside influences attacking their senator. It's possible, /?)
extremely unlikely, that with the conviction we'll get another backla,sh against this Outside influence," said
pollster Marc Hellenthal.
The mood at.Stevens' Anchorage campaign headquarters was one of stunned horror immediately after the
conviction came down mid-day Monday. People milled inside while two young volunteers·stoodin the cold
guarding the door. One of them looked close to tears.
Hours later, the news had settled in. The guards were gone, the campaign ordered Moose's Tooth pizza for its
workers and Stevens' backers started talking what's next.
"I think it will be a battle but we're going to throw every ounce of effort into doing so," said political consultant
Art Hackney, who is working on the·Stevens campaign.
Hackney said it's going to be a "nonstop campaigning, very aggressive," once Stevens gets back to Alaska. He
said the campaign' has to ask people to withhold their judgment.
"And basically what I think most people understand, it's really three words -- prosecutorial misconduct and
appeal," he said.· "And other than that it's campaigning on the record of what he's done and what he can do."
SHARP DIVIDE
FBI - Stevens-2258
Larry Sabato, who publishes the nationally watched Crystal Ball forecasts of congressional races, said he can't
imagine Alaskans would re-elect a U.S. senator just convicted of seven felonies.
"It would make Alaska a national laughingstock," said Sabato, who directs the Center for Politics at the University
of Virginia.
The National Republican Senatorial Campaign Committee appears to have given up on Stevens.
"Ted Stevens served his constituents for over 40 years and I am disappointed to see his career end in disgrace,"
said NRSC Chairman John Ensign, a senator from Nevada.
Carl Shepro, a political science professor at the University of Alaska Anchorage, said that kind of talk might be
premature. Shepro said he believes Stevens still has a real cha.nce to win re-election next week despite the
- f 1J Iq'Itt- ,;-4-.-J,.. () z,o - """'- e.--
convi7on. : 0 0
"Right now I'm in Fairbanks. It's pretty amazing the advertisements for him and the testimonials and stuff,"
Shepro said. "It's certainly difficult to think they are just going to turn around because of the conviction, and with
appeals this could drag out for years."
Stevens' Democratic opponent, Anchorage Mayor Begich, was playing it safe on Monday. Begich read a 14-
second statement that said it's been a tough year but time to move on. He then refused to answer any questions
from reporters.
Democratic Senate Majority Leader Harry Reid of Nevada, who recruited Begich to run, wasn't feeling so shy. He
called on Stevens to "now respect the outcome of the judicial process and the dignity of the United States
Senate." The Alaska Democratic party said Stevens should resign.
U.S. Senate Republican leader Mitch McConnell of Kentucky said Stevens must face the consequences of the
verdict and will be held accountable so public trust can be restored.
But Alaska's other U.S. senator, Republican Lisa Murkowski, said the prosecution committed several gaffes during
the trial and she'll stand with Stevens as he pursues his appeal.
RURAL SUPPORT
There's nothing in the U.S. Constitution or Senate rules to keep a convicted felon from being a senator.
Stevens' colleagues could expel him with a two-thirds vote if he's re-elected, or ev'en before his current term
ends in January.
If Stevens resigned or was expelled, the seat would stay empty until a special election within 90 days.
Todd larkin of North Pole, who has been active in the state Republican Party, said Stevens could win, and then
resign, allowing the Republicans to put up a candidate in the special election. That's a potential scenario state
party officials are talking about to keep the seat out of Democratic hands.
Stevens isn't talking about resigning yet. His campaign sent a message to supporters Monday saying
"overzealous prosecutors" deprived Stevens of his rights and that 12 jurors who have never been to Alaska
shouldn't decidethe race.
Stevens is particularly strong in rural Alaska. Matthew Nicolai, president of the Calista Corp., one of 13 regional
Native corporations, estimated Stevens represents about $1 billion a year in federal projects to rural Alaska. He
said the 40-year senator has visited nearly all of the 56 villages in the Calista region at one time or another.
Nicolai said he thinks Stevens can still be re-elected.
Rep. Reggie Joule, who represents Kotzebue in the state Legislature, heard news of the verdict while preparing
for a caribou hunt. Joule is a Democrat but has stumped for Stevens during the campaign.
During the Alaska Federation of Natives convention, some rural voters walked to the nearby Anchorage City Hall
to cast early ballots last week -- before the verdict, he said. "Sen. Stevens has a lot of loyal backers, and a lot of
people have voted already." FBI - Stevens-2259
·Asked if-he still-plans to .vote forStevens, Joule hadn't.decided.
"There's a piece of me that's really torn. So, I guess when I get inside the polling booth, I'll cast my vote," he
said.
Alaska Republican Congressman Don Young, who is under federal investigation and facing his own tough re-
election battle, said he thinks Stevens can still win next week.
"He's the best thing for that, for the Senate. Alaskans know this. This is a trumped up charge.... I can remember
Richard.Nixon, you know, his.years of-.service,.what he's done. And .ev.erypody. riqic.uling. .he
up b e i h g · t ~ e greatest president i ~ history of our century," Young sait)
t
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Young, who has not been charged, said the Stevens conviction doesn't make him more concerned about what
federal prosecutors might be planning for him.
"I have no problem with anything. I know where I'm going, where I've been and what I've done," he said.
POLLSTERS GET BUSY
Pollsters said a Stevens acquittal could have given Young a needed boost, helping to give voters doubt about the
federal investigation of Young. Clem Tillion, a Republican former president of the state Senate, -seemed to agree.
"I think it's going to be harder on Don Young than it is on Ted Stevens," Tillion said.
Alaska pollsters will be scrambling in the coming days to test the effect of Monday's conviction on both Young's
U.S. House race and Stevens' Senate bid.
Most recent polls have showed Begich and Stevens being statistically tied. But a Craciun Research,Group Inc. poll
over the weekend put Begich in the lead by 12 percentage points, after the closing arguments but before the jury
came in with a verdict.
Pollster Anne Hays said it's been a close race, according to her numbers, but she expects "the dam to open up,"
following the conviction. Ivan Moore, another Anchorage pollster, said there's no way to know for sure what the
conviction will bring.
"This is one of those situations where nothing like this ever happened before," Moore said. "But I think it's pretty
clear Ted's going to have a hard time winning next week."
Daily News reporters Lisa Derner, Kyle Hopkins and Tom Kizzja contributed to this story.
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McCain calls on Stevens to step down
By ERIKA BOLSTAD
(10/28/0807:36:03)
WASHINGTON -- Wasting no time in separating his presidential campaign from what he described as the
"corruption and insider dealing that has become so pervasive in our nation's capital," Sen. John McCain called on
fellow Republican Sen. Ted Stevens to step down from the U.S. Senate.
Stevens, 84, was convicted Monday by a jury in Washington, D.C., of accepting thousands of dollars in freebies,
including renovations that doubled his home in size. Stevens has vowed to appeal the seven felony convictions
and press on with his own re-election campaign in the week leading up to the Nov. 4 election. He is only the fifth
sitting senator to be convicted of such a serious crime in the history of the Senate.
''It is clear that Senator Stevens has broken his trust with the people and that he should now step down," McCain
said in a written statement. "I hope that my colleagues in the Senate will be spurred by these events to redouble
their efforts to end this kind of corruption once and for all."
Unlike that of Senate Majority Leader Harry Reid, D-Nevada, McCain's state!l1ent offers no niceties about their
shared time in the Senate and expresses no sympathy for Stevens' family. Its intensity is somewhat surprising
gfven that McCain is a fellow Republican, but not unexpected given the frosty relations th.e two men have long
ha9. They sparred over up the. Arctic National Wildlife Refuge to oil drilling, McCain's opposition to
. - earmarks' and their differing positions· on global warming. @
Reid, who personally recruited Anchorage Mayor Mark Begich to run against Stevens, called the verdict "a
personal tragedy for our colleague Ted Stevens." He also urged Stevens to "respect the outcome of the judicial
process and the dignity of the United States Senate" but didn't suggest he step down.
McCain's call for Stevens' resignation also goes well beyond that of his vice-presidential running mate, Alaska
·Gov.. ·Sarah Palin. Hours after the-verdict, Palin released. a sta.tement calling Stevens' con'{iction "a.s.a.<L9.i3Y" f.Qr
Alaska, but she stopped short of demanding he step.down. . .
"The verdict shines a light on the corrupting influence of the big 011 service company that was allowed to control
too much of our state," Palin said. "That control was part of the culture of corruption I was elected to fight. And
that fight must always move forward regardless of party or seniority or even past service."
In her statement, Palin Alaskans to "join me in respeCting the workings of our judicial system. I'm'confident
Senator Stevens will do what is right for the people of
, .
?he would not tell reporters whether she planned to vote for Stevens.
FBI - Stevens-2261
But if Stevens were to resign from his seat or be expelled by· his fellow senators, Palin has a potential -- and
complicated -- role in choosing a replacement. No one in Alaska can say for sure how it would work because
Alaska's law on·senatorial. succession was_changed. twice in 20.04 once by.the_ Legislat.u.re and O!1.ce by _
initiative. - -
Those laws were changed following then-Gov. Frank Murkowski's 2002 appointment of his daughter, Republican
Lisa Murkowski, to his vacated U.S. Senate seat.
Both of the 2004 laws call for a special election within 60 to 90 days of the vacancy. But they disagree on
whether the governor appo.ints an interim senator in the meantime. The Alaska Supreme Court would ultimately
have to decide which law the state follows.
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Stevens could keep seat in Senate
IF IT'S OPEN: Voters would have 60 days to pick a new senator.
By TOM KIZZIA
tkizzia@adn.com
(10/28/0800:36:02)
Can Sen. Ted Stevens still run for office after being convicted by a jury on Monday? Yes.
Can a re-elected Stevens keep his seat in the Senate if he loses on appeal? Doubtful, but that would be up to his
fellow senators.
If Stevens were to resign from his seat or be expelled, how would a replacement be chosen?
Nobody can say for sure.
That's because Alaska's law on senatorial succession was changed twice in 2004 -- once by the Legislature, and
onc'e by ballot initiative. Both, laws call for a special election within 60 to 90 days of the vacancy. But they
disagree on whether the governor appoints an interim senator in the meantime.
The Alaska Supreme Court would ultimately have to decide which law the state follows.
But first thingsJirst.
There's nothing in the U.S. Constitution that says a politician convicted of a crime can't run for re-election to the
Senate.
Assistant Attorney Gen. David Jones said Monday the only qualifications for Congress are those spelled out in the
U.S. Constitution -- basically, matters of residency. He cited a report by the Congressional Research Service
saying no o t h ~ r state or federal requirements can be imposed. That includes any effort to bar someone convicted
of a felony, the reportsa'id. - .
The Senate gets to set its own rules about who can serve, however. It can expel a member by a two-thirds vote.
S'uch a vote is unlikely while a criminal case is on appeal, according to the Senate historian's office. In fact, such
a vote would be unprecedented. Four senators have been convicted of crimes: two resigned, one died, and one
saw his term expire before an expulsion vote could be held.
Last week, two outspoken Stevens defenders, Sen. Lisa Murkowski, R-Alaska, and Sen. Kay Bailey Hutchison, R-
Texas, predicted the Senate would surely seat Stevens if he lost his jury trial but won re-election while appealing
the verdict. They even spelled out several causes they considered fruitful for an appeal: failure to move his trial
to Alaska or prosecutorial misconduct. .
If Stevens loses the appeal and his seat is vacated, his successor is chosen by rules set by the state of Alaska.
Each state gets to set its own rules for filling vacancies, according to the 17th Amendment to the U.S.
Constitution, ratified in 1913. That amendment said senators are to be elected by popular vote, rather than by
the state legislatures. It's up to individual states to decide whether temporary appointments can be made when a
vacancy occurs.
Alaska's rules of succession have been changed again and again, each time to benefit the majority party in the
Legislature.
B ~ f o r e 1968, t.he rl.lle was that a newly appointed senator had to be from the same party as the deceased or
departing But when Derf'at Bob Bartlett died that year, RepQn Gov. Wally Hickel wanted to
Republican, so the repealed the rule. The appointee was Stevens, who later won a special
election ir;l1970 and has held the seat since.
In 1998, the Legislature put the same-party rule back, ensuring that Democratic Gov. Tony Knowles would have
to appoint a Republican if the Stevens or Frank Murkowski seats came open.
In 2002, the Republican Legislature changed the law again so Knowles could not name Murkowski's successor if
Murkowski won the governor's race.
Murkowski won and got to name his successor. He chose his daughter, Lisa, touching off a furor. By 2004, with
signatures rolling in on an initiative petition, the Legislature changed the law to require a prompt special election
unless a vacancy occurs within 60 days of a regular election. But the Legislature allowed the governor to appoint
someone to keep the seat warm until that election.
Democrats backing Proposition 4 in 2004 objected to any appointment at all. They said an interim appointment
gave the chosen successor an incumbent's edge in the ultimate election.
Opponents of the measure said waiting to fill a U.S. Senate seat would leave Alaska without full representation
for months. And they argued the backers were being a touch devilish, reminding voters of the nepotism issue in
Lisa Murkowski's first, and ultimately successful, race for the Senate.
The initiative backers, who called themselves Trust the People, had to win a ruling from the state Supreme Court
to get on the 2004 ballot. The Murkowski administration argued the new state law was essentially the same,
making the ballot measure redundant. The justices said there was an essential difference -- whether a temporary
senator gets appointed during those 60 to 90 days.
_Since the had yet to pass, however, the Supreme Court declined to rule on an important secondary
issue: whether the initiative supplanted the state law. State officials-at the-time argued_ that the 17th Amendment
gave the decision about succession to legislatures, not to a public vote. But the issue was never settled._
The case was known as State of Alaska v. Trust tne People.
Jdnes said the Department of Law has not drawn up a legal opinion on the matter.
1?0Uom line: if the Senate seat were-to open up, voters would get to choose_.a_neV! _senat9r in a special election
within 90 days. In the meantime, it would be up to Gov. Sarah Palin to decide t9 trigger a qUick
constitutional test by appointing an interim senator.
Unless, that is, Palin has been elected vice president. In which case the decision would be up to her successor, Lt.
Gov. Sean Parnell.
Find Tom Kizzia online at S!.dn.coml.contact[tkizziq or call him at 907-235-4244.
FBI - Stevens-2263
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McCain, Palin urge Stevens to quit
SAVING THE SEAT: The Alaska GOP, however, wants voters to support him.
By SEAN COCKERHAM and ERIKA BOLSTAD
Anchorage Daily News
(10/29/0800:47:50)
Alaska Gov. Sarah Palin on Tuesday joined top Republicans including her running mate, John McCain, and the
Senate Republican leader in calling for Ted Stevens to resign from office.

Senate Republican Leader Mitch McConnell of Kentucky said Stevens should resign and, if he doesn't, he could be
expelled from the U.S. Senate. It would take a two-thirds vote of the Senate to expel the Alaska senator.
"After being found guilty on seven felony counts, I had hoped Senator Stevens W9uld take the opportunity to do
the statesman-like thing and erase the cloud that is covering his Senate seat," Palin said in a written statement.
"He has not done so. Alaskans are grateful for his decades of pUblic service but the time has come for him to step
aside."
"If he is re-elected and the felony charge stands through the appeals process, there is zero chance that a senator
with a felony conviction would not be expelled from the Senate," McConnell said while campaigning in Kentucky.
The Republican Party of Alaska is urging voters to support Stevens anyway as he returns to Alaska today to make
a final push before Tuesday's election. The message: If Stevens wins and then resigns or is expelled from the
Senate, there would be a special election giving Republicans another opportunity to keep the seat out of
Democratic hands.
"If it's not Sen. Stevens, we need the choice to have someone else," said McHugh Pierre, the Alaska party
spokesman. "But right now Sen. Stevens is our candidate, we're behind him 100 percent, he says he's innocent,
he's going to fight these charges, I believe he's innocent and we're going to make sure that our membership and
other conservative Alaskans can find it in them to vote for him and prolong their options." Both the Stevens
-campaign-and-the-state GOP suggested·that.I'alin, who characterizes rErt'9rmer a_s she campaigns for
vice president, is saying what-she needs to say to get votes in the Lower AlcisJsa shouldnoflisten.
Pierre said McCain and Palin are in a tough spot, because they want a Republican in the seat to keep tile
Democrats from obtaining a 60-seat, filibuster-proof majority.
"They can't come out and endorse him; how's that going to look?" Pierre said. Palin, in her statement, seemed
open to the possibility that Stevens could stay in office long enough to win re-election next week and then resign,
saying that, "even if elected on Tuesday, senator Stevens should step aside to allow a special election to give
Alaskans a real choice of who will serve them in Congress."
Stevens' Democratic opponent, Anchorage Mayor Mark Begich, on Tuesday stopped short of calling on Stevens to
resign, saying that "it's up to him to make that decision." He said the issues facing the state are too important to
wait months or longer for Stevens' case to be appealed. FBI _Stevens-2264
NOT ALL BUY PARTY_ MESSAGE
McCain said Stevens has broken his trust with the people and should now step down. Other Republican senators
calling for Stevens to resign include Sens. Jim DeMint of South Carolina and Norm Coleman of Minnesota, who
faces a competitive race against comedian AI Franken. Republican Gordon Smith of Oregon, also in a competitive
race, echoed their call for his immediate resignation. McCain's close friend and campaign companion Sen. Lindsey
Graham, R-S.C., also asked for Stevens to resign and "pursue his legal rights as a private citizen."
And not all Alaska Republicans were buying their state party's message. Some said Tuesday that, Stevens is
through and_they'll next fQr Independence Party candidate Bob Bird or the,Libertarian-in the
- rtCf3
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race, David Haase.
,
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"Sen. Stevens is an 84-year-old man who needs to find a dignified way to get himself out of this predicament
other than depending on the people of Alaska," said Spike Jorgenson of Tok, a state party central committee
member who said he won't vote for Stevens this year.
Other prominent Republicans, including Anchorage Baptist Temple pastor Jerry Prevo, said they are sticking with
Stevens, who has represented Alaska in the U.S. Senate since 1968.
"Based on all that he's done and being a pastor, pastors are a little bit, their tendency is to extend forgiveness
and preach forgiveness, so that would just be a natural thing," Prevo said.
State House Speaker John Harris, a Republican from Valdez, said he's supporting Stevens, but only because there
isn't enough time to get another Republican on the ballot.
"Had this trial taken place significantly before the election, I'd say he ought to step down. Now, there isn't
enough time," Harris said. "I hope he wins, and we'll see what happens after that."
STEVENS BACK TODAY
Stevens shows no sign of stepping down. He is returning to Alaska today and there's going to be a 5:30 p.m.
rally for supporters at the PenAir hangar in Anchorage.
"We think Alaskans are fighting (alongside) the senator and we expect that to continue," said Stevens' campaign
spokesman, Aaron Saunders.
Saunders said Stevens is running to win. It's far too early to speculate on whether he might later resign,
Saunders said, as Stevens "has a series of legal options and he'll be exploring those."
Frank McQueary of Anchorage, a state Republican Party official, said Stevens doesn't deserve what's happening
and Alaskans should support him as he appeals his conviction.
"From what I've seen of the transcripts of the trial, the only criminal activities demonstrated were on the part of
the prosecutor and the FBI," McQueary said. -
Anyone-who is even somewhat conservative needs to back Stevens, he said.
"If Sarah (Palin) were trUly conservative, her overriding concern should have been not turning that seat over to a
liberal ... other than wanting to stand up and look virtuous and chasing public opinion and chasing polls, there
was no reason to (call for his The process hasn't played out with Stevens," he said.
Stevens' campaign announced endorsements Tuesday from the Alaska Eskimo Whaling Commission and retired
Air Force Lt. Gen Tom McInerney, former head of the Alaska Command.
Nick Stepovich of Fairbanks, a Republican Party official and former state legislator, will fall
back on Stevens' years of service next week and elect him to another term. evens
"I think many Alaskans feel that Stevens is still not done yet," he said.
Sean Cockerham reported from Anchorage and Erika Bolstad from Washington, D.C. Contact them at
scockerhal'l}.@adn.com and ebolst.ad@adn.com. Daily News reporter James Halpin and the Associated Press
contributed to this story.
Palin to return Monday
"
is· nigtit, her Campaign,Qunced it's the first time
she:.s;.,-been back to the state sincMd-September.
.'
Palin, the Republidm nominee for vice president, will vote Tuesday morning in her hometown of Wasilla before
leav!ng for Phoenix, N"iz., to join running mate John McCain for Election Night. .
Copyright @ Wed Oct 29 13:17:24 UTC-0800 20081900 The Anchorage Daily News (www.adn.com)
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Anchorage rally welcomes Stevens
Supporters cheer 'lion of Alaska'
By SEAN COCKERHAM
scockerham@adn.com
(10/30/0801:08:28)
Sen. Ted Stevens returned to Alaska on Wednesday for the first time since his conviction, telling a crowd of
supporters he made a mistake but is not a criminal and needs their help to save his re-election.
"Like most people, I'm not perfect. I naively trusted someone I thought was an honest friend. When he wa/i;)
neither honest nor a friend," Stevens said.
Stevens was talking about Bill Allen, former chief executive of the oilfield services company Veco Corp. and the
prosecution's star witness against him. A Washington, D.C., jury on Monday convicted Stevens of seven felony
counts of lying on financial disclosure forms about thousa!1ds of dollars of gifts and home renovations from Veco.
"My future is in God's hands," the Republican told the crowd of roughly 500 gathered in the PenAir hangar at Ted
Stevens International·Airport. "Alaska's future is in your hands."
Stevens' return marks the beginning of what his campaign says will be an aggressive, whirlwind, effort to
persuade Alaskans to re-elect the 84-year-old senator. With the election just five days away, Stevens has little
time and a big challenge.
But the crowd at his Anchorage rally seemed to harbor little doubt that Stevens, who showed flashes of both
humility and defiance, would beat his challengers. They include Anchorage Mayor Mark Begich, a Democrat, who
was holding a dueling rally at a union hall at the same time as Stevens' event.
There was undisguised hostility toward the federal government and the FBI at the Stevens event, with people
wearing T-shirts that said "F*#@ the feds, vote for Ted." '
"Anyone who thinks you can get a fair trial in the heart of liberalism, Washington, D.C., is smoking dope. Re
railroaded," said Mark Kelliher, a retired engineer.
Talk radio host Rick Rydell told the crowd he knows Stevens, a D.C. jury doesn't.
"I don't partic'ularly like it when outsiders tell me what to elO," Rydell saio, iJefon: Stevens took the stage. "You
can kiss my Alaska moose-hunting behind."
Stevens reiterated his innocence, assured his supporters that he would be vindicated on appeal, and said he's still
the best choice for Alaska. Stevens said that when he filed his financial disclosure forms, he believed they were
accurate and complete. FBI - Stevens-2267
"The verdict was driven by prosecutors who were willing to do anything to win. If I had a fair trial in Alaska, I
woiJldhave-been acqUitted," he-said.-
The crowd cheered and shouted, "We trust you," over and over again as he spoke. Former governor Bill Sheffield,
former Anchorage mayor George Wuerch, and mayoral candidate Dan Sullivan were there. So was Alaska's junior
U.S. senator, Republican Lisa Murkowski, who told the Stevens supporters they need to get their neighbors and
co-workers out to support Stevens.
Republican congressional staffers in suits and stylish glasses came to the rally, but the crowd also included moms
and old m'en in long beards and worn Carhartts. Some had a memorable experience with Stevens or one of his
f1;.J

them with a problem, others just saw him as ,",lion of Alaska. They seemed to
unshakeable faith in StevW, a belief that if he said he didn't do're'he didn't.
Outside of the love and respect for Stevens in that hangar, though, the 40-year senator faces enormous hurdles
in getting re-elected. No convicted senator has ever been elected, and a new Rasumusson poll released Tuesday
indicates his race went from a statistical tie to an 8-point Begich lead following his conviction.
Several of Stevens' Republican colleagues in the Senate, including Senate Republican Leader Mitch McConnell of
Kentucky, have said Stevens broke the public trust and should resign. Alaska Gov. Sarah Palin, the Republican
nominee for vice president, and her running mate, John McCain, have also called on Stevens to step down. Palin
said Stevens should resign even if he wins next week, to allow a special election to pick his replacement. The
McCain-Palin campaign has declined to elaborate on Palin's statement, though, and Palin won't say whom she
plans to vote for.
Many Alaska Republicans are conflicted over Stevens, saying they'll vote for a third-party candidate, like Bob Bird
of the Alaskan Independence Party or Libertarian David Haase. The state Republican Party's pitch to vote for
Stevens is that it would keep Begich from winning, so if Stevens resigns or is expelled from the Senate, there
could be a special election allowing another Republican to try and win the seat.
But people who turned out for Stevens' Wednesday rally weren't basing their votes on the hope that a Plan B
Republican could emerge in a special election. For them it was all about Stevens, whom many called a "great
man," the father of Alaska, a man who built the state and would never break the law.
John Sparaga, an Anchorage dentist, said he believes Stevens will win in Tuesday's election. Alaskans are
exceptional, he said, and should turn out for the senator.
"I think Alaskans should prove themselves stronger than other types of people," he said.
Stevens gave an eight-and-a-half minute speech,_often interrupted by cheers. He said he was the best person to
represent Alaska during this economic crisis, as federal programs important to the state will be in danger of being
cut.
"I will represent Alaska in the Senate while my lawyers pursue the appeal to clear my name," Stevens said. " I
can advance Alaska's interests regardless of which party is in the majority, or whether I chair a committee."
He criticized the pros_ecutors in his trial, saying they manipulated evidence and interfered with his defense. On
Tuesday, the day after hfs conviction, Stevens' chieTlawyer, Brendan Sullivan, sent a letter to Attorney General
Michael Mukasey complaining about misconduct in the case by prosecutors. The trial, the letter says, was
"irretrievably tainted by the prosecution team's zeal to convict a high-profile but innocent defendant."
The Justice Department had no comment on the letter.
Meanwhile, Democrats said Wednesday that four main areas of contention raised by Stevens' defense were all
brought to light during the trial, which reduces the chance an appeals court would consider them reason for a
retrial. That includes an FBI note in which Veco owner Allen said Stevens would probably pay if given a bill, said
Meg Simonian, an Anchorage lawyer and Democrat. She also dismissed the contention that the trial should have
been held in Alaska, saying the crimes were committed in Washington, D.C., where Stevens lives, and that
extensive questioning of the jury'pool filtered out any jurors with built-in bias against Congress or Republicans.
"He is not entitled to a jury of supporters," she said.
FBI - Stevens-2268
Stevens is flying to Fairbanks this morning for a rally there as well as meetings with the editorial board of the
Fairbanks Daily News-Miner and the local Rotary. He'll be back in Anchorage tonight for a public broadcasting
debate. It's the first debate he's had with any of his challengers.
Daily News reporters Tom Kizzia and Erika Bolstad contributed to this story. Find Sean Cockerham online at
5ldn.comLcontact/scockerham or call him at 257-4344.
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Final debate tonight
All four major candidates for U.S. Senate and U.S. House will debate tonight on statewide public television and
radi9 between 8 and 10 p.m.
U.S. Rep. Don Young and former state Rep. Ethan Berkowitz debate between 8 and 9, and Sen. Ted Stevens and
Anchorage Mayor Mark Begich debate between 9 and 10. In Anchorage, it's on KAKM-Channel 7 and KSKA-91.1
FM.
Copyright @ Thu Oct 30 11:11:02 UTe-0800 20081900 The Anchorage Daily Ne)Ns (wWw.adn.com)
FBI - Stevens-2269
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Stevens can vote until sentencing
JURY DECISION NOT ENOUGH: Penalties start when judge finishes.
By TOM KIZZIA
tkizzia@adn.com
(10/30/0800:02: 15)
Sen. Ted Stevens gets to vote in next Tuesday's election despite being found guilty of seven federal felonies
because his conviction won't be final until he's .sentenced, the state Department of Law decided late Wednesday.
Alaska law bars felons convicted of crimes involving "moral turpitude" from voting for the, duration of their
sentence, including any probation period.
Stevens' failure to report gifts is a Class D felony under federal law and constitutes such a crime because it
involves willful fraud, said an opinion by Michael Barnhill, a senior assistant attorney general with the state.
But when is a person deemed convicted? Barnhill conceded in his opinion there are two ways to read the law,
with a popular interpretation being that the jUry's verdict is enough. But most legal precedents lean toward
waiting until-the judge in the case has entered his formal judgment and sentence, Barnhill said.
No date for sentencing Stevens has been set.
Stevens first has the right to file ,for a new trial and other relief. T.he jUdge in the case, Emmet Sullivan,
has given Stevens' defense team untijDec. 5 to file those motions, with a hearing set for Feb. 25.
Given the touchy nature of the voting question, it took the state legal department more than two days to sort
through the precedents and draw up its four-page opinion for Division of Elections director Gail Fenumiai.
Questions about Stevens' right to vote began coming to the'division within hours of his conviction
The state's conclusion jibes with the opinion of several other lawyers, including federal public defender Rich
Curtner in Anchorage. :But:Clfrtner a'dded that the question of-exactly when a felon, loses voting-rights had. never
come up In any of nis federal cases.
"For most of my clients, that's the least of their worries," he said.
Two lawyers who spoke at a Democratic Party press conference on the Stevens case Wednesday --Meg Simonian
and Jeff Feldman -- agreed,saying the senator will also lose the right to a Permanent Fund dividend check-after
his sentencing.
In his legal opinion, Barnhill conceded it's a judgment call for the state. He cites a contrary example, in which the
state recognizes a jury verdict alone as sufficient when a judge is looking for prior convictions at sentencing for a
second crime. FBI - Stevens-2270
"Given the weight of the authorities, and the Alaska Supreme Court's historical reliance on case law from
Wasnington, Oregon and California,we think that if this question were presented toourcourts,.they would be<
more likely than not to adopt the majority case law view, and interpret 'conviction' according to its legal technical
meaning," Barnhill concluded.
"Given the high profile nature of this issue, this conclusion may be challenged in court," he added. "If a legal
challenge is mounted prior to Senator Stevens casting his ballot, the Division of Elections should provide Senator
Stevens with a questioned ballot."
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Kott seeks freedom while he appeals
Anchorage Daily News
(10/25/0803:49:33)
Former Alaska House Speaker Pete Kott, now serving six years in federal prison on corruption charges, is asking
a judge to free him during his appeal.
In court papers filed earlier this month in U.S. District Court, defense attorney James Wendt argued that Kott
isn't likely to flee, isn't a danger and has a good chance of winning on appeal.
Prosecutors oppose the motion but haven't filed a detailed response.
U.S. District Judge John Sedwick gave prosecutors until Dec. 9 to respond.
A federal jury convicted Kott in September 2007 of bribery, conspiracy and extortion for his role in advocating an
oil,tax pushed by Veco Corp. executives and favored by North Slope oil producers. He received nearly $9,000, a
political poll for his re-election campaign and the promise of a lobbying job, all from Veco executives, according
to trial testimony.
Kott, 59, is serving his sentence at the Federal Correctional Institution in Sheridan, Ore.
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FBI - Stevens-2271
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Weimar 6 in prison, fine
(11/12/0814:52:18)-
Private advocate Bill Weimar has just been sentenced. to six months in federal prison and six-months of
home.confinement plus a $75,000 fine on bribery and conspiracy charges for his part in the Alaska
corruption scandal. '
Weimar, who pleaded guilty to the charges, is scheduled to surrender in early January.
We are continuing to report. this story and will post further updates as soon as we have them. See tomorrow's
newspaper for full details.
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FBI - Stevens-2272
ado.com I. lead over Stevens Os

Daily Ne\vs
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Begich over Stevens grows
By SEAN COCKERHAM
(11/18/0813:12:24)
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Anchorage Mayor Mark Begich's lead over Sen. Ted Stevens is growing in today's ballot count in the race for U.S.
Senate. The latest numbers, issued just before 1 p.m., show Begich up by 2,374 .votes.
The Division of Elections expects to release more numbers between 4 and 5 p.m.
Joday's count of about 24,000 absentee and questioned ballots should pretty much decide the race, although
ther,e will be a few more overseas absentees to count over the next couple. days and a likely recount in early

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the state .moved to mostly machine counting, recent Alaska recounts have resulted in little change. in the
final tally.
The Division of Elections is counting ballots today from Anchorage,. Southeast, the Kenai Peninsula and Kodiak.
The state finished counting from other parts of the state last week.
If Begich wins, he'll be the 'first Democrat to represent Alaska in the U.S. Senate in nearly 30 years. His victory
would also put the Democrats' one step closer to their dream of having the 60 seats needed for a filibuster-proof
majority in the, U.S. Senate. To get 60 seats, the Democrats would also need AI Franken to beat Republican Sen.
Norm Coleman in a Minnesota recount, and for Jim Martin to beat Republican Sen. Saxby Chambliss in a Georgia
runoff election.
For Alaskans, the more sweeping impact of today's count is the potential close' of the "Uncle Ted" era. Stevens'
l'un started not long after statehood, when Gov. Wally Hickel appointed him to the Senate in 1968. Stevens has
HeVer even had a close election since, often drawing just token opposition.

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Stey-e'ris'steered billions of dollars to' Alaska and had a hand in most of the major federal" legislation that's shaped
Alaska. He was honored as "Alaskan of the Century" and the state Legislature named the Anchorage airport after
him.
That was before a Washington D.C. jury found him. guilty of seven felonies a week before the election for lying on
financial disclosure forms about $250,000 of gifts,and home renovations from the oilfield services company Veco.,
Now Stevens, 85, trying to be the first person ever elected to the Senate following a felony verdict. Stevens is
appealing the verdict.
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Copyright @ Tue Nov 18 13:27:25 UTe-0900 20081900 The Anchorage Dailv News"{www.adn.com)
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Anchorage Daily News
Jurors says Stevens hurt his case by testifying
By JESSE J. HOLLAND
(11/18(08.09:21:41)
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To hear ju'rors tell it, Alaska Sen. Ted Stevens was his own worst witness during his corruption trial.
Two jurors - one of whom posted a Web log of her jury duty experience - say Stevens unc{ermined his own defense by
;Verbally jousting with Ju'stice Department prosecutors and denying that just because he was given something didn't
a. 'gift. I
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kind of said 92l1een one of the jurors who found Stevens gUilty on seven"felony counts.
the case" he was quiet and you know, kinda grandfatherly, but when he was up on stage, he was
like a lion, and he was kind of demeaning to the lawyer, so it didn't help his case that much," she told the Associated
Press in an interview.
Walsh, 32, and 25, an alternate who through the trial but.did not join
combative performa,nce hurt him witn the jury. '
Kirst described Department's evidence as difficult to refute. Stevens' stories "just didn't add
up," Kirst told the AP. . ,
"The whole thing was just a mess. It was like, 'You're not helping, so why are you up here?'" Kirst said: "It was kinda
interesting to see him shoot himself in the foot."
convicted Stevens, the Senate's longest .serving Republican, on seven felony counts of lying on Senate
2p,cuments to hide hundreds.of thousands' of dollars of gifts and home renovati9ns from millionaire
o.ustnessrnan Bill Allen. Stevens, who won't be,sentenced until early 2009, has said he will appeal.
'J., " .. , ' a -
were filled witl1 coritro\/ersy Jurors complained and yiolent .ol!tbJJr.$ts
from one of their members during delioerations. They asked for her to be replaced,..but.the jUdge refused.
Walsh joined the deliberations after a j!Jror claimed her father had died, left for the West Coast and did not return
phone calls from the judge. Walsh said the tension was obvious.
One of the jurors asked everyone .ito keep their voIces down, let else have their say an9 no swearing and ,
stuff like that," she said. "Basicaily, like adults. I was .like, 'What the heck happened last week?'"
The judge later discovered that the juror who disappeared, Marian Hi2fa'nt, 521, flew to California for the Breeders'
Cup, not to her father's funeral. / - FBI - Stevens-2274
Kirs,t and Walsh said most of the jurors decided not to. talk to the media about time in .the courthouse. Walsh,
ijowever has started a blog about the trial, http://jurorll.blogspot.com because of all the questions she· was getting

friends about the case. _ _. _ _. . . ._
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Copyright @ Tue Nov 18 13:23:02 UTe-0900 20081900 The Anchorage Dally News (www.adn.com)
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Anchorage Daily News
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Stevens witness says testimony wasn't true
By RICHARD MAUER
(11/21/0819:11:17)
A key prosecution witness in the trial of Sen. Ted Stevens has told the trial judge that some of his testimony
wasn't true and that he suspects prosecutors left him in a room with eVidence and grand jury transcripts so he
could surreptitiously refresh his memory about six-year-old events.
The witness is David Anderson, a nephew and once-trusted employee of former Veco chief executive Bill Allen,
the government's star witness and a convicted briber, Anderson made his comments to U.S. District Court Judge
Emmet Sullivan of Washington, D.C., in a letter dated Nov. 15 and made public Friday, the latest twist in a case
with no shortage of unusual events.
In his ,letter, Anderson also said the government lied in a letter to Stevens' defense attorneys in which it
described an affidavit he signed March 25. The government told the defense that Anderson himself had
ackpowledged the March affidavit was false.
A copy of the March affidaVit, made public by defense attorneys Friday, showed that Anderson had asserted that
government agents promised immunity to him and 12 other friends and relatives, including former state Se,n.
Jerry Ward, for cooperating in the FBI's investigation of public corruption in Alaska.
Ward has not been charged with wrongdoing, but he has surfaced in connection with the recent guilty plea by
private prison advocate Bill Weimar. Ward appeared to be the beneficiary of an illegal $20,000 campaign
contribution by Weimar, who was sentenced to six months in prison last week for making the payment. The
recipient of Weimar's illegal $20,000 payment was identified in charging documents only as "Candidate A," but
the description matched Ward.
For the past few months, Ward has ,not responded to phone calls or messages seeking comment on the
allegations. He again didn't reply to an. e-mail sent to him Friday.
MURDER PLOT ALLEGED
In the March 25 affidaVit, Anderson said he had learned that he was targeted in a murder plot. He said he
prepared the document to ensure his alleged deal with prosecutors would live on even if he didn't.
He didn't name the plotters in the affidavit, but did in the letter to Sullivan: Allen and his son, Mark, Anderson's
cousin.,
Bill Allen has testified he never tried or threatened to kill Anderson.
FBI - Stevens-2275
Stevens' attorneys demanded a hearing be held to look into the matter. In a court filing Friday, they said the
Anderson letter was new evidence of government misconduct in the case. They've already said they planned to
try to overturn Stevens' conviction-on Oct-. 27 of lying on-Senate disclosure-forms.
Most of the $250,000 the government alleged he failed to report were gifts from Veco and Allen. Anderson
supervised the Veco-paid construction that doubled the size of Stevens' home in Girdwood, then fabricated an
outdoor steel deck and stairs and helped build a deck for the home, none of which Stevens paid for.
Government prosecutors responded Friday that Anderson's letter, "simply put," is untrue. They said defense
lawyers had ample opportunity to question Anderson about the March affidavit when he was on the witness
stand, but chose not to. - _ '10 a
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Anderson didn't recant any of the h"Obstantive testimony .against his letter could cast doubt on
his credibility as a witness. And dun he trial, the judge rebuked prosecu for not turning over evidence to
the <1efense,as they were required. Anderson's assertion that the governmen gave false information about him to
the defense raises more questions about the prosecution's conduct, though it's unclear how significant they are.
'GENTLEMAN'S AGREEMENT'
In the March affidavit, the main subject of Anderson's Nov, 15 letter to the judge, Anderson said he agreed to
cooperate with the government on condition that prosecutors grant immunity to Ward and his wife Margaret,
Ward's three daughters and their husbands, Anderson's mother and son, and several others who couldn't be
identified. Anderson lives with one of Ward's daughters, Kirsten Deacon. She was once Bill Allen's girlfriend and
that fact is the cause of much of the friction between uncle and nephew, Anderson has said.
Anderson was the last prosecution witness in the government case. In his testimony on Oct. 9, Anderson said the
affidavit was false and that no formal pledge of immunity was granted.
"It was kind of a gentlemen's agreement, you know," Anderson testified. "A handshake, you know, so, you know,
I take it as an immunity, but it was never - that was never said."
On Sept. 9, two weeks before the trial, the government sent a letter to the defense disclosing facts about the
government's case that could be beneficial to Stevens. One paragraph of the-five-page letter concerned the
March affidavit, which prosecutors said was drafted by Ward. "Anderson felt pressured to sign the affidavit
because of his relationship with Ward's daughter," the prosecutors told the defense. In reality, Anderson admitted
that "he and the other individuals mentioned in the affidavit were not promised, offered, or actually given
immunity," prosecutors said.
But in his Nov. 15 letter to the trial judge, Anderson said that paragraph "is not true and completely false."
Reached by phone at his home in the Mat:·Su Borough, Anderson said he felt he wasn't "treated right" by the
< government but declined to go into details. - - - --
"I laid it out there on the table so everyone can see what my dispute is," said Anderson, referring to his letter. He
said it was like "fighting city hall."
'AN INTERESTED PARTY'
In its filing Friday, government prosecutors Anderson's mofives for sending the letter and changing
his story.
"The government has now obtained substantial additional evidence, including both documents and video
surveillance, that prove the falsity of Mr. Anderson's allegations and that further explicitly prove Mr. Anderson's
collusion with an interested party in-the preparation and transmission of Mr. Anderson's letter," prosecutors
wrote. They said they would describe the additional evidence in a supplemental filing Monday.
Anderson wouldn't say what prompted him to write the letter or how it was drafted and sent.
FBI - Stevens-2276
The letter filed with the court Friday bore a fax header showing it was sent Nov. 16 from the Fed-Ex Kinkos at the
corner of Northern Lights Boulevard and Lake Otis Parkway in Anchorage - more than a three-hour round-trip
drive from Anderson's home.
A manager at that Kinkos who identified himself oniy as Jeff said tne FBr Iiad been there and spoke to a female
employee about the letter. The manager wouldn't identify the woman and said she has since left Alaska. Asked
whether the FBI had also viewed or obtained video from the store, the manager said, "I don't believe
I should be talking to you about this" and referred questions to a Fed-EX security official in Washington state,
who wasn't in his office an didn't return a message left on his mobile phone.
FBI spokesman Eric Gonzalez, one of two FBI agents who initially interviewed Anderson in August 2006, declined
to comment. In his letter, Anderson identified him as one of two FBI agents who promised to not prosecute his
frieQds fClmily.
"Without the preparation from the and the reminders from my activities ?lnd the
agreement I had with them about and-myself I would not have gv the same testimony," Anderson
told the juo'ge. "Without a shadow of a doubt I believe this trial would have gone much differently."
. -
Stevens' attorneys said Anderson's allegations could be evidence of "a flagrant constitutional violation warranting
a severe remedy, including dismissal of the indictment." They asked Judge Sullivan to convene a hearing in
February in which they could question prosecutors and FBI agents under oatJ"l to learn what'happened.
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FBI - Stevens-2277
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Letter adds new twist to Stevens conviction
PROSECUTION WITNESS: Ex-Veco worker says some of his testimony was false.
By RICHARD MAUER
rmauer@adn.com
(11/22/0802:35:34)
A key prosecution witness in the trial of Sen'. Ted Stevens has told the trial judge that some of his testimony
wasn't true and that he suspects prosecutors left him in a room with evidence and grand jury transcripts so he
could surreptitiously refresh his memory about 6-year-old events.
The witness is David Anderson, a nephew and once-trusted employee of former Veco chief executive Bill Allen,
the government's star witness and a convicted briber. Anderson made his comments to U.S. District Court Judge
Emmet Sullivan of Washington, D.C., in a letter dated Nov. 15 and made public Friday, the latest twist in a case
with no shortage of unusual events.
In his letter, Anderson also said the government lied in a letter to Stevens' defense attorneys In which it
described an affidavit he signed March 25. The government told the defense that Anderson himself had
acknowledged the March qffidavit was false.
A copy of the March affidavit, made public by defense attorneys Friday, showed that Anderson had asserted that
government agents promised immunity to him and 12 other friends and relatives, including former state Sen.
Jerry Ward, for cooperating in the FBI's investigation of public corruption in Alaska.
Ward has not been charged with wrongdoing, but he has surfaced in connection with the recent guilty plea by
private prison advocate Bill Weimar. Ward appeared to be the beneficiary of an illegal $20,000 campaign
contribution by Weimar, who was sentenced to six months in prison this week for making the payment. The
recipient of Weimar's illegal $20,000 payment was identified in charging documents only as "Candidate A,"'but
the description matched Ward.
For the past few months, Ward has not responded to phone or seeking comment on the
allegations. He again didn't reply to an e-mail sent to him Friqay.
MURDER PLOT ALLEGED
In the March 25 affidavit, Anderson said he had learned that he was targeted in a murder plot. He said he
the document to ensure his alleged deal with prosecutors would live on even if he didn't.
He didn't name the plotters in the affidavit, but did in the. letter to _Sullivan: Allen and his son, Mark, Anderson's
cousin.
FBI - Stevens-2278
Bill Allen has testified he never tried or threatened to kill Anderson.
Stevens' attorneys demanded a hearing be held to look into the matter. In a court filing Friday, they said the
Anderson letter was new evidence of-government misconduct in the said they planned to
try to overturn Stevens' conviction on Oct. 27 of lying on Senate disclosure forms. -
Most of the $250,000 the government alleged he failed to report were gifts from Veco and Allen. Anderson
supervised the Veco-paid construction that doubled the size of Stevens' home in Girdwood, then fabricated an
outdoor steel deck and stairs and helped build a deck for the home, none of which Stevens paid for.
Government prosecutors responded Friday that Anderson's letter, "simply put," is untrue. They said defense
lawyers had ample opportunity to question An-derson about the March affidavit when he was on the witness stand
but chose-not to.
- 10/
reca.nt any of the against Stevens but his letter could cast doubt on
hlS'croolblhty as a witness. And du.-vhe tnal, the Judge rebuked for not turning over evidence to
the defense as they were required. Anderson's assertion that the false information about him to
the defense raises more questions about the prosecution's conduct, though it's unclear how significant they are.
'GENTLEMAN'S AGREEMENT'
In the March affidavit, the main subject of Anderson's Nov. 15 letter to the jUdge, Anderson said he agreed to
cooperate with the government on condition that prosecutors grant immunity to Ward and his wife, Margaret,
Ward's three daughters and their husbands, Anderson's mother and son, and several others who couldn't be
identified. Anderson lives with one of Ward's daughters, Kirsten Deacon. She was once Bill Allen's girlfriend, and
that fact is the cause of much of the friction between uncle and nephew, Anderson has said.
Anderson was the last prosecution witness in the government case. In his testimony on Oct. 9, Anderson said the
affidavit was false and that no formal pledge of immunity was granted.
''It was kind of a gentlemen's agreement, you know," Anderson testified.. "A handshake, you know, so, you know,
I take it as an immunity, but it was never -- that was never said."
On. Sept. 9, two weeks before the trial, the government sent a letter to the defense disclosing facts about the
government's case that could be beneficial to Stevens. One paragraph of:the five-page letter concerned the
March affidavit, which prosecutors said was drafted by Ward.
"Anderson felt pressured to sign the affidavit because of his relationship with Ward's daughter," the prosecutors
told the defense. In reality, Anderson admitted that "he and the other individuals mentioned in the affidavit were
not promised, offered, or actually given immunity," prosecutors said.
But in his Nov. 15 letter to the trial judge, Anderson said that paragraph "is not true and completely false."
Reached by phone at his home in the Mat-Su Borough, Anderson said he felt he wasn't "treated right" by the
government but declinedto go into details.
"I laid it out there on the table so everyone can see what my dispute is," said Anderson, referring to his letter. He
said it was like "fighting city hall."
'AN ·INTERESTED PARTY'
In the filing Friday, government prosecutors challenged Anderson's motives for sending the letter and changing
his story.
"The government has now obtained substantial additional evidence, including both documents and video
surVeillance, that prove the falsity of Mr. Anderson's allegations and that further explicitly prove Mr. Anderson's
collusion with an interested party in the preparation and transmission of Mr. Anderson's letter," prosecutors
wrote. They said they would describe the additional evidence in a supplemental filing Monday.
Anderson wouldn't say what prompted him to write the letter or how it was drafted and sent.
The letter filed with the court Friday bore a fax header showing it was sent Nov. 16 from the Fed-Ex Kinkos at the
corner of Northern Lights Boulevard and Lake Otis Parkway in Anchorage -- more than a three-hour round-trip
. drive from Anderson's·home. FBI -_ Stevens-2279
A manager at that Kinkos who identified himself only as Jeff said the FBI had there and spoke to a female
employee about the letter. The manager wouldn't identify the woman and said she has since left Alaska. Asked
whether the FBI had also viewed or obtained surveillance video from the store, the manager said, "I don't believe
I should be talking to you about this" and referred questions to a Fed-Ex security official in Washington state,
who wasn't in his office an didn't return a message left on his mobile phone.
FBI spokesman Eric Gonzalez, one of two FBI agents who initially interviewed Anderson in August 2006, declined
·to·comment..ln his him as one of two FBI agents who promised to not prosecute his
..•.
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family. 0
•. ;,'{ \Q
"Wi.thounhe preparation from-the prosecution' and the reminders from them about my activities and the
agreement I had with them about my family and myself I would not have given the same testimony," Anderson
told the judge. "Without a shadow of a d'oubt I believe this trial would have gone much differently."
Stevens' attorneys said Anderson's allegations could be evidence of "a flagrant violation warranting
a severe remedy, including dismissal of the indictment." They asked JUdge Sullivan to convene a hearing in
February in which they could question prosecutors and FBI agents under oath to learn what happened.
Find Richard Mauer online at or call 257-4345.
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FBI - Stevens-2280

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Stevens concedes Senate race to Begic.h
Anchorage Daily News
(11/19/0812:53:09)
Print Page ___
Sen. Ted Stevens conceded the election for U.S. Senate to Anchorage Mayor Mark Begich this morning, bringing
to·an end his 40 years as the dominant force in Alaska politics.
Stevens' office issued a written statement just before noon Alaska ti.me:
"Given the number of ballots that remain to be counted, it is apparent the 'election has been decided and Mayor
Begith has been elected.
"My family and I wish to thank the thousands of Alaskans who stood by us and who supported my re-election. It
was a tough fight that would not have been possible without the help of so many Alaskans - people who I am
honored to call my friends. I will always remember their thoughts, prayers, and encouragement.
"I am proud of the campaign we-ran and regret that the outcome was not what we had hoped for. I am deeply
grateful to Alaskans for allowing me to serve them for 40 years in the U.S. Senate. It has been the greatest
honor of my life to work with Alaskans of all political persuasions to make this state that we all love a better
place. .
"I 'wish Mayor Begich and his family well. My staff and I stand willing to help him prepare for his new position."
Begich claimed victory Tuesday afternoon after the latest count of absentee and questioned ballots widened his
lead to 3,724 votes. VVith only around 2,500 ballots from overseas remaining to be counted, the lead was
insurmountable barring a major flaw in the counting. Begich leads by just over 1 percent with more than 315,000
votes cast in the race.
Stevens' statement made no mention of asking for a recount.
Stevens, who turned 85 on Tuesday, is the longest-serving Republican in Senate history.
A week before the election, a VVashington, D.C., jury.convicted Stevens of seven felonies for lying on his financial
disclosure forms about more than $250,000 in gifts, including renovations of his GirClwood home. The gifts came
fron) Bill Allen, chief of the oil-field services company Veco Corp. and the man at the center of the still unfolding
federal investigation into corruption in Alaska politics.
Both Sen. Lisa Murkowski and Gov. Sarah Palin issued statements congratulating Stevens-2281
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Alaska Newsreader
Today's news for the Last Frontier
Compiled by Mark Dent
mdent@adn.com
(12/01/0815:24:37)
STJ;'lENS PARDON I?Y BUSIi .HAS SUPPORT Sen. Ted Stevens hasn't yet joined the gallery of
notorious felons, small-time crooks and aggrieved innocents seeking pardons from President Bush, but it appears
he'll have the support of some of his soon-to-be-former colleagues if he does. "He has served this country for
over 50 years," said Sen. Orrin G. Hatch (R-Utah), a widely respected member of the Judiciary Committee. "I
think most anybody would probably say, 'Yeah, he should be. [pardoned].' "
PALIN A.GOP STAR BUT UTILE UKI;.D BY C_ENTER Gov. Sarah Palin's flash emergence on the national
stage has left her as well positioned as any Republican to make a serious run for the GOP nomination in 2012,
yet waning support from the political center may threaten her presidential ambitions, according to a Politico
analysis of public polling.
J:X--AL6.SKAN .. QL_L_E_CTION .QE..SHORT_STORIE_S-(The.J1ew York Time..§.)..:. David Vann, who was born
in Adak and spent a good portion of his childhood fishing in Southeast Alaska before moving to the Lower 48, has
received a favorable review in The New_York Times for his first book of short fiction, "Legend of a Suicide." Most
of the stories, some of them. semi-autobiographical, are set in Alaska; a nonfiction version of the first story,
"Ichthyology," was pUblished in the Daily News in 1992. Read the first chapter of the new book Vann's "A
Mile Down: The True Story of a Disastrous Career at Sea," a memoir, was published in 2005. His home page is

HIl-.l,ARY Talk of hemlines and hairstyles,
child rearing and cookie recipes has dominated media coverage of women in politics since the supposedly post-
feminist 1990s. But the sexism directed at Sarah Palin hit a new low.... As a political scientist who researches
sexism in the media, I have studied her pornification and ditzification.
S.ARAH PALIN.;. _QI.GJIALS.UPI;RSTAR..(R9IitlcqJ..;.. Four weeks after the Republican ticket suffered a sweeping defeat
at the polls, Sarah Palin continues to dominate search engine queries, cable news and online video sites., The only
American politician who generates comparable interest is President-elect Barack Obama. No one else is close.
RURAL_Sj;:HO_OLS-.b..O_Sj: HUJiQE..E.P-S--9f A YEAR (Alaska. State researchers hoping to
determine how many people have left rural Alaska for bigger communities report that rural schools lost 1,802
students in the last five years. But hub community schools such as those. in Bethel and Kotzebue gained 429
students, and boarding schools increased 109 students. FBI - Stevens-2282
Also: Counting students acmel testpfreality' (Anchorage Daily News)
BIPLQ.9IST S.-CARES ALASKA-BOUND SWANS AWAY FROM LEAD (The As.s9ciate9 Press)..;. As the sun set behind
Judson Lake near Sumas, Wash., biologist Mike Smith kept Vigil in acramped watchtower with a night-vision
scope, a noisemaker and a laser. His mission is to scare trumpeter swans off the lake, away from the shotgun
pellets that litter the lake bottom and have killed hundreds of the birds, many of which fly to Alaska in the spring..
(With slide show)
which sits on
Annette Island south of Ketchikan, says its could lose hundreds of thousands of dollars thanks to a retroactive
accounting change made by the Department of Housing and Urban Development.
.J •
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Stevens seeks retrial in Alaska
DEFENSE: Separate motion calls for judge to overrule jury.
By RICHARD MAUER
rmauer@adn.com
(12/06/0803:30:19)
Defense lawyers said that U.S. Sen. Ted Stevens'monthlong trial was unfair, flawed and prejudiced against him
in dozens of ways and asked that he be tried anew, this time in Alaska.
The motion for a new trial, filed Friday in Washington, D.C., was accompanied by a separate motion asking the
judge in the case to overrule the jury and direct an acquittal. That would go a step further than asking for a new
trial -- it would entirely void the verdict in which Stevens was convicted Oct. 27 of seven counts of failure to
disclose gifts and other benefits, and let him walk a free man.
Stevens' lawyers also renewed a pretrial motion to dismiss six of the seven counts as duplications of the first.
They also asked the judge to;allow them to file some exhibits in support of their motions"under seal because the
exhibits refer to personal'information about jurors.and to the ongoing investigation by the government into
poiitical corruption in Alaska. &
Under an earlier schedule set by U.S. District Judge Emmet Sullivan, the government has until Jan. 9 to respond
to the defense's post-trial motions. A hearing is set for Feb. 25.
In asking for a new triai, the defense lawyers said Stevens' trial was fatally flawed with false evidence presented
by the government, improper from a witness who was the "linchpin" of the government's case,
and by jurors who lied to the court and were prejudiced from the start against politicians.
Such post-trial motions are common in criminal trials but rarely succeed before the trial judge, who has ruled
upon most if not all of the arguments before. However, they set out the basis for a likely appeal, and could also
be used by advocates seeking a presidentiaJ pardon for Stevens to assert he was tried unfairly.
The motion for a new trial, filed by attorney Craig Singer, who specialized in motions during the trial,
was accompanied by a hefty, 78-page legal memorandum. Singer had to request permission to exceed the
district court's 45-page limit, and had gotten an OK for 75 pages.
The only"completely new arguments in the document involve jurors and suggest the defense has been
investigating the panel.
As it was, the jUry had more than its share of drama. There was a disruptive juror whom the others wanted to
boot; a juror who disappeared during deliberations after saying her father died, only to later admit she went to a
California racetrack; and a replacement juror -- for the thoroughbred fan .- who, after the verdict, started an
irreverent blog with snippy comments about the trial participants. FBI - Stevens-2283
Now the Stevens defense is weighing in with allegations that two jurors lied in their written questionnaires used
by the jUdge and the -attorneys to-determine whether they'd be fair and The defense didn't provide
details -- juror information is usually kept private -- but suggested the two jurors had undisclosea contacts with
the criminal justice system.
If it turns out the jurors lied, Singer wrote in the memorandum, it would "raise particular concerns in this case
because jurors may associate or blame their prior personal experiences on government officials, including
politicians like Sen. Stevens. The false statements may suggest an attempt to serve on the jury in order to
vindicate prejudice toward government, politicians, or political parties.
1I
q 0 q
Singer asked-for"a hearingowhere the jurors coulcLbe.questioned under'oath. The "cumul.aUve effect" of all the
- __-__ _ ., <2.-
iuJ!:ies "is ,ov:rwhelm;ng,- and OWtrial should be granted," he wroteo
The also said a new trial was in order because the lead prosecutor, Brenda Morris, inappropriately
appealed to "class prejudice" during her cross examinations of Stevens and his wife, Catherine. Morris portrayed
the couple "as wealthy, privileged individuals" and equated their wealth with improper conduct, Singer said.
He cited a rapid-fire series of questions that Morris directed at Catherine Stevens concerning her use of her
husband's taxpayer-paid Senate staff to walk her dogs, feed her cats, wrap her Christmas presents, pay credit
card bills at expensive department stores, pay parking tickets and even write checks from Stevens' account to
pay overdue Blockbuster video charges.
Those questions were irrelevant to the charges of whether Stevens failed to disclose gifts from the defunct oil-
services firm Veco Corp, and its chief executive, Bill Allen, Singer said.
"The government's blatant appeals to class prejudice were improper, and indeed, intolerable," Singer wrote.
A Washington, D.C., grand jury indicted Stevens, and prosecutors argued that the capital was the proper venue
for the trial because Stevens filed his disclosures with the Senate. Stevens sought to move the trial to Alaska
because most witnesses were there, and he could campaign for his Senate seat in the run-up to the November
election. But Sullivan kept the trial in Washington. .
Singer said that was a mistake. More than half the witnesses came from Alaska, and the defense had to spend
inordinate time on logistics while the trial was under"way, he said.
"Had the trial been in Alaska, the Senator would have requested that the jury be permitted to visit the Girdwood
residence so that it could determine w.hether the value of the renovations exceeded the amount Senator and Mrs.
Stevens paid for them," Singer wrote. "The government sought to prove the value of the renovations by
introducing the Veco accounting records and by showing the jury photographs of the renovations. The accounting
records were utterly unreliable and·should have been excluded in entirety as hearsay.. And the snapshots of
the residence were no substitute for an actual view of the Stevenses' distinctly modest Girdwood home."
Another cause for a new trial is the most memorable line uttered in the case, Singer said. It happened early in
the trial when Allen was on the witness stand and the day's testimony was draWing to a close. Allen was giving
evidence about a handwritten note Stevens sent him on Oct. 5, 2002, in which Stevens said he wanted a bill for
Veco's work on his home. Allen said he would send another friend to talk to Allen about that -- Bob Persons, the
owner of the Double ,Mu$ky restaurant in Girdwood.
Allen indeed talked to Persons, who told him, "don't worry about getting a bill," Allen testified. "He said, 'Ted is
just covering his ass.' "
Singer asserted that Allen made-up that quote. In about 20 interviews with the FBI and prosecutors, Singer said,
Allen never mentioned such a statement before, according to agent notes the defense received.
"With this bombshell, the government sought not only to erase Senator Stevens' repeated requests for bills, but
also to transform these exculpatory requE;!sts ... into further evidence of a scheme to deceive the Senate Ethics
Committee," Singer wrote. "Mr. Allen's 'CYA' testimony was perhaps the single most important and explosive
piece of evidence in the government's case."
Instead, Singer said, it was inadmissible hearsay -- and perhaps a lie tqld with government approval -- and
justificationfo( a .new triaL FBI - Stevens-2284
Find Richard Mauer online at or call 257-4345.
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Stevens asks for new trial in Alaska
By RICHARD MAUER
(12/05/08 13:47:23)
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Defense lawyers today cited 17 reasons that U.S. Sen. Ted Stevens' monthlong trial was unfair, flawed or
prejudiced against him and asked that he be tried anew, this time in Alaska.
The motion for a new trial, filed this afternoon in Washington, D.C., was accompanied by a separate motion
asking the judge in the case to overrule the jury and direct an acquittal, voiding the verdict in which Stevens was
convicted Oct. 27 of seven counts of failure to disclose gifts and other benefits.
S.teyens' lawyers also renewed a pretrial motion to dismiss six of the seven counts as duplications of the first.
They also asked the judge to allow them to file some exhibits under seal because the exhibits refer to personal
information about jurors and the ongoing investigation by the government into political corruption Alaska.
Under an earlier schedule set by U.S. District Court Judge Emmet Sullivan, the government has until Jan. 9 to
respond to post-trial motions. A hearing is scheduled for Feb. 25.
Iii' asking for a new trial, the defense lawyers said Stevens' trial was fatally flawed with false evidence presented
by the government, improper hearsay evidence from a witness who was the "linchpin" of the government's case,
and by jurors who lied to the court and· were prejudiced fr()m the start against politicians.
Such post-trial motions are common in criminal trials butTarely succeed before the trial judge, who has hear'a
most if not all of the arguments over the course of the trial. However, they set out the basis for a likely appeal
and could also be used by advocates seeking a presidential pardon of Stevens to assert,he was tried unfairly.
The motion for a new trial was accompanied by a hefty, 78-page legal memorandum. The defense hC!d to request
permiSsion to exceed-the district court's 4 5 - p a g ~ limit and had gotten an OK for 75 pages.
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Judge sides with Stevens lawyers
PAGE COUNT: Defense gets more space to argue for new trial.
By RICHARD MAUER
rmauer@adn.com
(12/04/0801:12:25)
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Sen. Ted Stevens' legal defense team will have a lot to say when it argues he should have a new trial -- so much
so, they've a?ked the judge to allow them to submit a legal memorandum of 75 pages, 30 more than usually
allowed in the D.C. district courts.
With a filing deadline of Friday approaching, defense who specialized in arguing motions
dur!ng Stevens' trial, told U.S. District Court Judge Emmet Su livan t at the complexities of the case
more than average paper content. I
c::?
liThe trial in this case took an entire month and gave rise to numerous legal disputes, including motions,
eVidentiary objections, and juror issues," Singer wrote in a filing Tuesday.
In a tongue-in-cheek objection, Brenda Morris, the chief prosecutor in the case, replied Wednesday in what she
termed a "brief opposition" -- a response of a single paragraph. She asserted the defense should be able to
what it needed in 45 pages. Most of the issues expected to be raised by Stevens in his argument for a
trial were already argued and ruled upon before and during the trial, she said.
It didn't take Sullivan long to read the government reply. Eight minutes after the government filed, he granted
the'defense its wish. He also allowed the government to use the long-form approach in its response, due Jan. 9.
A hearing on the motion for a new trial -- a prerequisite to an appeal -- is set for Feb. 25. By then, the question
of a pardon by President Bush will be long resolved.
Stevens was convicted in October of seven counts Qf failing to disclose about $250,000 in gifts and services from
1999 to 2006. A week later, Alaska voters turned him'out of office after representing the state for 40 year$. A
sentencing date has not yet been set.
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campaign Q pay for more attorney bills
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Don Young's campaign funds pay for more attorney bills
UNDEFINED: Nature of legal work hasn't been detailed.
By ERIKA BOLSTAD
ebolstad@adn.com
• .4

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'WASHINGTON -- Rep. Don Yo n recent campaign finance report shows that he to pay his sizeable
legal bills using his campalg account.
Young's most recent filing with the Federal Election Commission shows that the Alaska Republican spent $20,000 last
quarter with the Seattle law firm Siderius, Lonergan and Martin. It's not clear whether those bills, were for campaign-
related expenses or connected to an ongoing federal criminal probe. Young's campaign spokesman didn't return a
phone call seeking comment.
Earlier this year, Young's campajgn paid $90,020 to John Wolfe, a Seattle attorney who represented Young'S, (J) .
campaign manager, Steve Dougherty, in the, investigation. r
I
Since the beginning of 2007, Young has spent more than $1' million in campaign contributions on legal fees related to
a Justice Department probe -- which includes an investigation into fundraising.
f.ederal Electi9n Commission allow public officials to spend their campaign money on attorneys, as long as
, ,'{J9rk is connected t6 the lawmaker's role as an But Young,als9 .set ur.? a separate legal expense.
some .legal bills; far, that fund has raised $77,000 and spent $48;000 on, Young's legal bills.
04.," (,1 '0 •
during the campaign, Young said that his legal defense has b.een expensive, and that he has used
campaign money because he doesn't have his ow." money to sp,end defending the inquiry. He has, consistently refused
to detail the exact nature of the investigation, but Congress has called on the Justice Department to investigate. an
earmark in Florida that stood to benefit a campaign contributor.
Young has also. been tie.9 to a federal probe into corruption in Alaska fundraising practices
of the former ,oil-serviCes company Veco Corp. and Bill Alieni its chief executive. AlI.en the star witness'iifthe'
October trial of Sen. Ted Stevens, who was found guilty on seven counts of failing to disclose gifts on his U.S. Senate
financial disclosure forms.
Young's new report also shows that overall he raised $1.1 million in his successful bid to fend off opponents in
August's primary and last month's general election. He spent million, which had amassed in
previous election cycles. More than $1 miflion went toward· his legal-bills.
show that his Democratic challenger last month, Ethan Berkowitz, spent alll?ut $17,194 of the $1.6
for the campaign. FBI.- Stevens-2287
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Find Erika Bolstad online-at or call her in Washington, D.C., at 202-383-6104.,
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12/9/2008·

Weyhrauch seeks reheariQ
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Anchorage Daily News
Weyhrauch seeks rehearing
9TH CIRCUIT COURT: He wants the Nov. 26 decision overturned.
By RICHARD MAUER
rmauer@adn.com
(12/08/0822:30:20)
Alaska Rep. Bruce We r h is asking the 9th U.S. Circuit Court of Appeals to reconsider a decision two
Weeks: ago that restored ey vidence in his corruption indictment.
.
,.-f
I'rl'a rehearing request to the court Monday, Weyhrauch asked the full appeals court to overturn the Nov. 26
decision of a three-judge 9th Circuit panel.
The three jUdges had ruled that federal law would require Weyhrauch, a Juneau attorney, to disclose his efforts
to seek legal work from the defunct oil-field services company Veco Corp. at the same time he. was serving in the.
Legislature and voting on an oil-tax bill heavily lobbied by Veco's chief executive, Bill Allen.
In his request for a rehearing, Weyhrauch says the decision imposed a higher standard of conduct than state law,
which wouldn't have required such a disclosure. The.decision represented an improper expansion of federal law .
over state law, Weyhrauch said, and he asked the full court to overturn it.
Weyhrauch never got the Veco job, though'his v.()tes aligned with Veco.

May 3, 2007, with former House Speaker Pete Kott and charged with four counts of bribery,
and conspiracy. Kott has since been convicted and is serving time in federal prison.

.;: l'
Weyhrauch's trial began, U.S. District Judge John Sedwick ruled that prosecutors couldn't use
Weyhrauch's failure to disclose his job solicitation as evidence of defrauding citizens of his honest services
because such a.disclosure wasn't required by Alaska state law. Prosecutors appealed the ruling.
Meanwhile, one other pending corruption trial, the two-count conspiracy and bribery case against State. Sen. John
Cowdery, appeared headed for its second postponement.
Last week, Cowdery's attorney, Kevin Fitzgerald, asked the court for a delay until at least late March because of
an overwhelming load of evidence he recently received from the government, including information from 11
months of court-ordered wiretaps. Prosecutors don't oppose a delay, Fitzgerald told the judge" but the two sides
couldn't work out a new proposed date.
U.S. District Judge Ralph Beistline set a hearing Dec. 16 to resolve the trial date. FBI - Stevens-2288
for a rehearing at the appellate level for Weyhrauch, his attorney, Dou9Ltope, said that the three-
decision goes well beyond what two other circuit courts have said a6"o'ut honest. services fraud. Those
tJased.Jn New Orleans and Philadelphia, have limited the application of tne Feder?! I mail fraud .statyte only
of state law, Pope said.
The San Francisco-based·9th Circuit judges debated and rejected that limitation, noting that other circuits have
done so as well. They ruled "that conduct on par with bribery and nondisclosure of material information lies at the
heart of public honest service.s
<2-
-12/9/2008 http://www.adn.comlpqlitics/v-printerlstory/616585.html
Pope .said the split among the different appeals courts has created confusion For state and local officials who may
wonder what the law actually is. qO"'\
".
IWeyhrauch seeks reheariQ n; Page 20f2
But circuit judges said it was the"New Orleans- and Philadelphia-baseWppellate_ courts that sowed confusion
because they encouraged different enforcement of federal law based on the law of a particular state.

iftleil1".owQ-reading of the law, the 9th Circuit judges said, "establishes a uniform standard for 'honest $ervices'
... •
every public official," they wrote. Applying that standard to Weyhrauch, they ruled, "the government
proceed on its theory that Weyhrauch committed honest services fraud by failing to disclose a conflict of
'interest or by taking official actions with the expectation that he would receive future legal work for doing so."
Pope argued the 9th Circuit is creating inappropriate inroads into state law by allowing federal prosecutors to
enforce "federal preferences of good government" using the mail fraud statutes.
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12/9/2008
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Anchorage Daily News
Young loses top spot on House committee
By ERIKA BOLSTAD
(12/10/08 14:00: 12)
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WASHINGTON -- U.S. Rep. Don Young, who wielded considerable power on the House Committee on Natural
Resources in the 1990s as chairmCln and in rec:ent years as its senior Republican, on Wednesday lost his tqp spot
on the panel.
The move came from fellow Republicans who are determining this'week who will take leadership roles on
committees when Congress begins its new term next year.
Young said he was "confident that the cloud that hangs over me will eventually clear as I know I have dOl)
nothing wrong.
"However, for the good of the Republican Party, the right thing for me to do is temporarily step down from my
p'ost as ranking member on the House Committee on Natural Resources while my name is cleared. At that time, I
look forward to regaining my post."
Young has been Alaska's sole representative to the House of Representatives since 1973 and is its second-most
senior Republican. He squeaked through in the primary election and then went on to a Nov. 4 victory
over a Democratic challenger -:- despite rumblings of an FBI investigation into fundraising and other
potential wrongdoing.
Since 2007, Young has spent over $1.1 million in campaign funds on legal fees connected to the federal probe.
But soon after winning the election, it became clear that despite his win, Young's days were numbered as the
ranking member of the Natural Resources panel. Last month, Rep. Mike Simpson, R-Idaho, replaced Young as the
small-state repres_entative on the steering committee, a move that left the Alaska Republican without a voice
while its 27 members worked out this week who gets what top committee assignments for the next Congress.
Then Tuesday, Young met with Rep. John Boehner of Ohio, the Republican House leader. Boehner told Young he
wouldn't support him continuing -on as the ranking Republican on the committee. He also told him that the
steering committee controlling which Republicans get the top spots on House committees was unlikely to support
Alaska Republican. Still, Young went forward Tuesday with a presentation to the committee, which is a
requirement for all of the members seeking top committee post.
Young acknowledged that there remains a cloud hanging over his head because of the criminal probe. But he
characterized his move as a temporary one and said he hoped to reassume the top sQ.ot on the committee.
FtH - Stevens-2290
As the next session of Congress takes shape, Republicans have worked to rid themselves of the taint of
corruption remalningJrom GOP lawmakers with· close ties to convicted lobbyist Jack Abramoff.
House Republicans have also taken Democrats-to task for continuing to-allow Rep. Charles Rangel, D-N.Y. to
chair the powerful Ways and Means Committee despite allegations of ethical lapses. Having Young in a leadership
role on an important may have undercut those arguments for Republicans, who during the election
attacked Democrats who accepted campaign contributions from Rangel.
"I wish all the best to the incoming ranl<ing member" of the committee, Young said. "I look forward to continuing
my work as a member of the Committee on·Natural Resources. this upcoming Congress with my good friend,
Chairman (Nick) Rahall, and to resuming my post in the future." _ 00<6
Boehner issued it statement laterWednesdaycommending-Young.for-stepping d<;lwn._
II) '1t1--A·I"'- r
3
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Covgressman pon Young 0 that he be relieved of his duties af:'\lking on the House Natural
Committee so that he can focus on resolving questions he is The Steering Committee granted
Ilis request. • .
"I commend Don Young for putting the interests of the Republican Conference, the House and the American
people first by making this decision. In the interests of Don, his family and his constituents, it is my hope that
this matter will be resolved as soon as possible."
It is an end of an era, said Deborah Williams, who now heads Alaska Conservation Solutions. Williams worked for
then-Interior Secretary Bruce Babbitt as a top aide on Alaska issues when Young headed the Resources
Committee, and in that role she often testified about Alaska-related issues at his committee meetings.
"When Don Young sought to advance'the public good in that position, it was a pleasure to work with him and he
was very effective," Williams "But again and again, when he sought to advocate for legislation or interests
that were not in the public interest... he was thwarted and spent a lot of energy and political capital on issues.that
did not advance."
Young took over the committee in 1995 after Republicans regained control of the House of Representatives in the
1994 elections. At that time, the committee was renamed the House Public Lands and Resources Committee -- a
signal that its focus would be less on conservation and more on resource development. At one of Babbitt's first
meetings with Young at the helm, at a committee hearing on a federal wolf reintroduction program, he told
Young: "Mr. Chairman, I have no doubt about who the alpha wolf is in this room."
Young held the chairmanship of the committee,until internal House rules on term limits for committee
chairmanships forced him to step aside for a Republican he had mentored, Rep. Richard Pombo of California.
Young then 'took over as chairman of the House Transportation and Infrastructure Committee, where he oversaw
the $286.4 billion highway spending bill in 2005 that included money for what became known as Alaska's "bridge
to nownere." It"also.earmarked $10 million for the nOW-infamous Coconut Road interchange study in Florida that,
this year, prompted Young's colleagues to ask for a federal investigation into -how it was ih-serted in the bill.
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Judge calls hearing for flip-flopping Stevens witness
ALLEN'S NEPHEW: Defense requests for evidentiary hearing will be heard.
By RICHARD MAUER
rmauer@adn.com
(11/26/0800:02:57)
The strange developments involving a prosecution witness who said he was untruthful in the case against Sen.
Ted Stevens inched forward Tuesday with an order by the trial judge for a "brief hearing" in the matter Dec. 1.
After dealing with cantankerous and AWOL jurors, a lawyer who he thought was signaling a witness, and multiple
accusations of prosecutorial misconduct by the defense, U.S. District Judge Emmet Sullivan now has a witness
who appears to be recanting at least part of his testimony.
Sullivan, in a one-sentence to attorneys in the case, he was seeking ideas about how to proceed
with the witness, David Ander§..on, the estranged nephew of former Veco Corp. chief executive Bill Allen.
Anderson, a welder by tra51e, helped supervise Veco-financed improvements made to Stevens' home in Girdwood
starting with a clean-up crew that spent about a week there in the spring of 1999.
Stevens' defense team is a seeking a full-blown evidentiary hearing in February so they can question FBI agents
and government attorneys under oath about how they prepared Anderson for his testimony. They also want to
learn whether Anderson had gotten immunity for himself, his family and friends for cooperating in the FBI's public
corruption investigation in -
Sullivan said next week's hearing will be to discuss the defense requests. r
Prosecutors said Anderson lied in his letter claiming he didn't tell the truth on the witness stand about the
immunity deal. Instead, the government said he was truthful when he said he had no formal immunity
agreement.
Prosecutors said last week they would respond more fully to Anderson's. letter on Monday, but has
appeared on the public docket. -
Anderson has 9ffered multiple versions of what he considered to ,be his deal with government, though none
are .in writin lIn March, he signed a sworn statement that he and 13 friends and relatives, including former state
Sen. Jerry ard, the father of his girlfriend, were covered by his immunity agreement.
Prosecut· rs have said they learned about that affidavit in August but haven't explained what brought it to their
attention. However, on Aug. ll, former private prison advocate Bill Weimar gUilty to making illegal
payments to assist the campaign of a state Senate candidate In 2004. The candidate wasn't named in Weimar's
plea, but the description closely matched Ward. FBI - Stevens-2292
Two days after Weimar's plea, FBI agents interviewed Anderson about the March statement, according to a copy
of the agents' report and a summary that was prOVided to Stevens' lawyers. Both documents have been publicly
filed in the Stevens docket.
According to the documents, Anderson told the agents that the March affidavit was drafted by Ward, and that
Ward decided who would be covered by the purported immunity.
The government said that Ward was the subject of an investigation but prOVided no details.
In the Aug., 13 FBI interview, the government said, Anderson acknowledged that the only agreement he had with
.prosecutors was would not be required to provide direct testimony against any family member. It's a
__ that .. L
by blood or marriage. Q 0
"Anderson knew that there had been no agreement relative to immunity' or promises of immunity by the
government as to anyone," prose!=utors said in a pleading Friday.
Anderson, the government's 24th and final witness, '!Vas a last-minute addition when he was called to the stand
Oct. 9.
Prosecutors previously announced their intention to rest their case the day before, but decided needed
additional testimony on how much work Anderson performed on Stevens' house when evidence of his work hours
was stricken from the record because of faulty Veco accounting.
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Misconduct alleged in Stevens
UNETHICAL: Agent says prosecutors covered up evidence, corruption investigations tainted.
By RICHARD MAUER
rniauer@adn.com
(12/23/0800:02:58)
An Alaska FBI agent has .accused fellow agents and at least one prosecutor of misconduct. and unethical behavior
in the public corruption investigation in Alaska and the trial of y.S. Sen. Ted Stevens.
The agent's complaint to internal investigators inthe Justice Department was made public Monday in U.S. District
Court'in Washington, D.C., by the judge in Stevens' case. .
The complaint had sharp words ab.o·ut one supervising agent, accused of getting too close to sources, including
Allen. It said agents took gifts and accepted favors from sources and revealed confidential grand jury information
and investigative practices to sources and reporters.
And the complaint said that prosecutors deliberately'withheld·and covered up evidence favorable to Stevens
cfur.ing his month-long trial, contradicting their statements to the judge at the time that their errors in not
. to, Stevens were .
. •
wh'o, he protect of the apd who were named, covered up
almost'a(lldentlfYlng details In heav.y,black Ink, making some allegations difficult to follow.
But the agent who produced the explosive eight-page complaint, drafted in November, was clearly someone with
intimate knowledge ofthe government's investigation in Alaska and the preparation and conduct of its trial of,
Stevens.
"I have witnessed orlearned.of.serious.violati9,11?_ 9f P91!C)',rules, and procedures as well as possible criminC!'
the',Whistle-blower asserted in.the whicfl'i's n'ow Defore the Justice-Dep.artment's Office.of.
Professional Responsibility.
The whistle-blowing agent ran at least one of the sources in the investigation who gave jury testimony.
And the whistle-blower described being in the room on Aug. 30, 2006, when agents were convincing the man
who Would become their important witness, former Veco Corp. chief executive Bill Allen,.to cooperate..in the
kivestigation. '

1:) i . - _
the complaint, U.S. District Judge Emmet Sullivan made good on a pledge he made in an order
F,r,idaYifollowing a closed-door hearing with prosecutors, the defense, -and the whistle=blow.er's
afin"- . r-51-- ::>(evens-LL'::J'
Prosecutors and the whistle-blower sought to keep the document under seal. The defense asked for its release.
. .
. Sullivan said the·document-wastoo.importantfor public and the defense to remain secret, though h.e·
acknowledged that some of the people named in the'complalnt have aright'to'privacy--- at'least for now. -
In the order Monday that accompanied the redacted complaint, Sullivan said he would entertain a request by the
defense to reveal more of the document. . .
Just 49 minutes after Sullivan put the complaint in the public docket, Stevens' attorneys cited it as the smoking
gun in an motion to dismiss the. case, or at least get a new trial. tin ..-PIII_IP-o':- f'A .
-CJro
[, , . -12123/2008
.I Misconduct alleged in Ste" trial Page 2 of 3
whistle-blower complaint "confM what the defense has long believeOd alleged: the government cheated
.. tied in. order to obtain a verdict against Sen. Ted Stevens," attorney Robert Cary 'said in the motion.
}"d>"'!\o1 ",
..,been a case of prosecution by any means necessary," Cary wrote. "The court should exercise its power
this indictment."
David Heller, a spokesman for the FBI in Anchorage, referred questions to the Justice Department in Washington'"
There, a spokeswoman, Laura Sweeney, said the government would only address the matter in court.
"We will continue to litigate in the court all matters, including these allegations, related to the jury's conviction of
Senator Ted Stevens," she said in an e-mail.
In his complaint, the whistle-blower described himself as a five-year agent who working on the public
corruption investigation shortly after he came to Anchorage.
The case was code-named "Polar Pen" because it began as an· investigation of efforts to build a private prison in
.Alaska by a private joint venture that, included Veco.
FBI focus shifted after agents tapped Allen's phones and heard him talking about the extensive
and repair work Veco did on Stevens' home in Girdwood starting in 1989. Then, a hidden FBI camera
suite in Juneau caught Allen and a vice president bribing legislators with $100 bills.
'.. " -
Stevens was convicted in October of lying on his Senate financial disclosures by failing to report gifts from Veco,
Allen and others. Allen, who has pleaded guilty to bribery, was the lead witness against Stevens and two
legislators convicted in 2007.
AlI.en has testified that he agreed to work for the government on Aug. 30, 2006 -- one day before the
investigatio,n became public with a series of raids of-legislative and business offices in Alaska. The. whistle-blower
said that the agent working on Allen revealed far too much information about other subjects of the investigation.
Later, with Allen on their team, ah agent -- possibly the same one -- told Allen that a source being run by the
whistle-blower had testified before a grand jury, a possible. violation of federal law. The whistle-blower said Allen
or, his attorney were also tipped off about an unrelated Anchorage Police investigation of him, probably involving
accusations reported earlier this year that he had sexual relations with a minor.in the 1990s.'
BU¥lng the Stevens trial,- the agent inappropriately met with Allen in a hotel room more than Ol')ce, the whistle-
-During Allen's testimony, the agent dressed in a 'tIay that was meant to be a "surprise/present for
Allen)" tHe whistle-blower said.
. .
A witness issue erupted during the trial when the sent home the Veco supervisor at Stevens' home,
Rocky Williams, without calling him to the stand. Prosecutors said he was too ill to testify. But Williams was also
under subpoena as a defense and the defense team didn't know Williams was back in Alaska until' he
callec;l frqm home. That led to a loud objection from Stevens' lawyers and a stern lecture from the judge.
The whistle-blower agreed that Williams was ill and feared that Williams could die in Washington if not treated.
But the whistle-blower said the prosecution team ignored his pleas that the defense and the judge be told of the.
plan to send Williams home.
"The defense and judge found out, were very angry, and suggested prosecutorial misconduct had occurred," the
whistle-blower wrote.
whistle-blower also said that someone from the prosecution team didn't want to send a complete copy of an
of Allen to the defense because it contradicted information sent earlier in a letter to the lawyers.
O
• .. 'it • .
.
said he initially brought his complaints directly to the agent or agents, and also.to Eric
Gonzalez, the chief division counsel to the FBI in Anchorage, but the problems were not solved, he said.,
,http://www.adn.cdm/ted-stevens/v-printer/story/631518.htmI
FBI - Stevens-2295
12/23/2008
·[llq'\"·· . ,..
Misconduct alleged in Ste" trial' 1'\ Page 3 or3
decided to take his complqint toYshington-after one of the FBI Alaska official
Frank Prewitt, wrote a self-published book about the investigation that contained information he "should not have
known." Another book is being written in prison by one of the people convicted in the case, the whistle-blower
said, "and I feared more problems would occur and I would be in the middle of [an agent's] problems again."
The whistle-blower said he was also upset by what happened during Stevens' trial.
On Nov. 21, he wrote, he asked for protection under federal law as a whistle-blower, fearing he would be
punished for coming fo·rward. FBI officials, from the Public Corruption Uliit in Washington "to the highest levels"
are extremely pleased ab<?ut the Alaska investigation. .
1'j,.qm concerned about possible retaliation," the whistle-blower wrote.

Bilt(rRIc!i.ard Mauer online at ?Ldn.cpmL(;pnta_c..tL.rmCJJ!...er. or call 257-4345.
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FBI - Stevens-2296
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12/23/2008
Anchorage Daily News
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Stevens witness affirms immunity offer
TRIAL: Anderson sends judge a letter saying government granted him and 12 friends a deal.
By RICHARD MAUER
rmauer@adn.com
(12j24j08 00:01:31)
David Al"!derson, the government witness at the center of the storm involving ex-state Sen. Jerry Ward and
allegations of misconduct in U.S. Sen. Ted Stevens' trial, has written a new letter to the judge in the Stevens
case asserting again that prosecutors promised him and his friends immunity. ' .
!n his latest letter; Anderson offered a more detailed explanation.about why he prepared an affidavit in March in
which he listed 13 people whom he said were promised immunity by the government in exchange for his
c()operation.
Ward, the father of Anderson's girlfriend, was on .the list.
Prosecutors have denied they ever promised immunity to Anderson or anyone on his list., Anderson testified
during the Stevens trial that the March affidavit was false.,
The messy controversy, one of several that'have erupted'since Stevens' conviction Oct. 27 on seven felony
disclosure violations, has 'become one of the grounds for Stevens' defense attorneys, to demand dismissal of
char.ges.or a,retrial. They called on ·U,S. District Judge Emmet Sullivan, who presided over the Stevens trial in
Washington', to hold eVidentiary hearings -;. essentially mini-trials -- into the Anderson',-matter, and, an, FBI.
whistle-blower complaint that surfaced Friday,
A defense attorney, Robert Cary, fi'led Anderson's letter in court Tuesday ,as an exhibit to his request for the
hearing. Anderson's letter was dated Dec. 15 and follows up his first letter of a month earlier, in which he
asserted his testimony refuting the March affidavit was itself false.;
Both lette'rs start, the"same way: nam'e is David Allen,Anderson."
Anderson, the estranged nephew of Veco Corp. chief executive Bill Allen, wrote the ,latest letter in response to 'the
government's opposition to re-open the Stevens case. Prosecutors said that Ward, under scrutiny in the
corruption investigation, had a hand in drafting the March affidavit and in sending the November letter, 'Both
documents were tainted py Ward's self-interest, they
Anderson addressed that point in his latest letter. He said he dictated, then signed, the two letters and the
affidavit. .
"I am not a typist or an officer worker, but a welder," he said.
FBI - Stevens-2297
.Anderson was one of two Veco supervisors at the project that- doubled the size of Stevens' Girdwood
home from 2000-2001. Anderson built an outdoor staircase and part of a deck out of steel, helped move a
'-generator by Veco and fixed things-for'Stevens they,broke ,--all paid_by Veco,- Am:ler?,on was the
last witness to testify for the prosecution. -
But Anderson said in-his first letter, and emphasized in the new letter, that he would not have taken the,stand if
he thought there was no immunity deal.
"I would like to be perfectly clear," he wr.0te this month. "I would have pleaded the fifth."
said he didn't sign the March protect Ward or any .of the others. He to save
, , " _ q II' , tuJCi Ii? "J'l '
, • ....
being killed-by Allen son, Mark, he said. 0
• 1 .
"It was to protect ME," he wrote..
Though 11 exhibits accompanied the government's opposition to re-open the case, none even discussed, let
alone. refuted, "the fact that Bill and Mark Allen had a contract to murder me," Anderson said.
He wrote the March affidavit, he said, because he was. traveling to New Mexico, a haunt of Allen and his son, and
feared for his safety. .
"My thought process was that if it was in writing and anything to me, people would know where to
look," Anderson said in his letter.
A copy of the affidavit, filed last month,.doesn't mention either Allen by name. While it refers to a murder plot, it
no suggestion about who to question should he be killed.
Rather, the affida,!it appears to be an effort to immortalize an immunity deal for Ward and the other 12 named
people if Anderson died and claim 'it himself.
Bill Allen has denied in testimony that he ever intended to kill Anderson. Mark Allen didn't return a call left at his
ranch in Roswell, N.M.
If the judge wanted to confirm the murder plot, Anderson wrote, he should call an Anchorage reporter, Tony
Hopfinger, who produces the Web site Alaska Dispatch.
"He has seen the documents under seal regarding the murder-for-hire scheme and is also aware that from day
I immunity was granted," Anderson said.
But in an interview Tuesday, Hopfinger said he never saw any such documents.
"I was read something that was regarding an FBI wiretap where some conversation of a kind of cryptic nature of
hurting Dave, or hiring to hurt Dave -- I was read that by a source," Hopfinger said. "And I asked
Dave about it."
But his source was "very guarded about the ,mqterial," Hopfinger said.
In a story he wrote about Anderson, Hopfinger said he originally had a paragraph saying that Allen had
considered killing Anderson. That paragraph was sourced to "others who have viewed the sealed government
affidavit," said, but he cut the paragraph from his story because he couldn't yerify it.
On the matter of immunity, though, Hopfinger said Anderson always maintained he had gotten protection from
the government. Anderson said something similar in interviews with the Daily News starting in May.
A man answering the phone at Anderson's house Tuesday said he wouldn't deliver a message to Anderson.
Find Richard Mauer online at i3.9n.c..omLc..ont§Lctf.rmaJLe.r or call ?57-4345.
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FBI - Stevens-22gB
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"
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I. FBI man is stevenOe whistleblower
It ;J/
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Page 1of2
adn.com
Anchorage Daily News
FBI man is Stevens case whistleblower
By RICHARD MAUER,
rmauer@adn.com
(12/22/0813:52:58)
1-' Print Page" IL,'Close Window, ]
A five-year FBI agent assigned to the Alaska corruption investigatipn is the whistleblower who
brought a complaint of misconduct against other agents and at least one prosecutor involved in the
trial of U.S. Sen. Ted Stevens.
The redacted -- meaning partially blacked-out -- complaint was publicly filed this afternoon in
Washington, D.C., by the judge in the Stevens trial over the objections of Justice Department
lawyers and the attorney for the unidentified whistleblower. Stevens' lawyers wanted the full
document released without restrictions.
The whistleblower's name was blacked out, as were the names of nearly everyone else in his
complaint. But the whistleblower's explosive allegations about misconduct by other members of the
FBI and the prosecution suggest intimate, firsthand knowledge of the full investigation from the
start, and of the activities surrounding Stevens' trial.
"I have witnessed or learned of serious violations of-policy, rules and procedures as well as possible
criminal violations," the whistleblower asserted in his complaint to the Justice Department's Office
of Professional Responsibility.
The whistleblower said agents got too close to sources, took gifts and favors from sources, and
revealed confidential grand jury a,nd investigation Information to sources and reporters.
The whistleblower also said members of the prosecution team intentionally withheld, information
from Stevens' defense that was reqUired by law to be turned over. In addition, the prosecution
deliberately failed to alert the defense that it was sending a key witness back to Alaska without
testifying even though that witness was under a defense subpoena. •
Prosecutors and agents also fa}led to properly log and track evidence, the whistleblower s9id.
In releasing the eight-page complaint, addressed to internal investigators iii the J'ustice
Department, U.S. District JUdge Emmet Sullivan made good on a pledge he made Friday after a
dosed-door hearing with prosecutors, the defense and the whistleblpwer's attorney. Sullivan said
the document was too important for the public and the defense to remain secret, though he
acknowledged that some of the people named in the complaint have a right to privacy -- at least
Jor now. FBI - Stevens-2299
-
In the order today that accompanied the redacted complaint, Sullivan said he would consider a
request by the defense to reveal more of the docl;Jment.
Within an hour of the judge's release of the document, Stevens' attorneys filed a motion to dismiss
the case or at least grant the senator a new trial. The whistleblower complaint "confirms what the
defense has long believed and alleged: The government cheated and lied in order to obtain a V> fA
f' ...
?vJf!1
- - - - - /631518.html - cr 12/22/2008
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t IFBI man is stevensp whistleblower
,l -r
verdict ag?inst Sen. Ted Stevens."

Page 2 of2
Fi,!d Richard Mauer online at adn.comlcontactlrmauer or call 257-4345.
Copyright @ Mon Dec 22 16:14:35 UTC-0900 20081900 The Anchorage Daily News (www.adn.com)
FBI - Stevens-2300
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Whistle-blower adds twist
to Stevens case
WHISTLE-BLOWER: Federal employee accuses
government of mi'sconduct.
By RICHARD MAUER
rmauer@adn.com
Published: December 21st, 2008 12:00 AM
Last Modified: December 2008 12:18 AM
Related Links
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A whistle-blower the Justice Department has accused'
me,mbers of the team investigating public corruption in Alaska
of official misconduct, according to the judge who presided
over Sen. Ted Stevens' trial in Washington, D.C. .'
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The whistle-blower's complaint,.
dated Dec. 2, is now the subject of
an internal investigation by the
Justice Department's Office of
Professional Responsibility,
according to a memorandum and
or:der signed Friday by U.S. District
Judge Emmet Sullivan of the District
of Columbia.
The corruption triaJ
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Sullivan revealed the existence of the complaint, and three secret
hearings about it last week, in his 29-page order•.
Sullivan said little about the nature of the alleged misconduct. Among the allegations was that a
government employee accepted "multiple things of value" from sources cooperating in the FBI - Stevens-2301
investigation, Sullivan said.
The judge also reported that the whistle-Blower accused at least two federal employees of
intentionally violating government policies in the corruption investigation in Alaska and in
connection with material that was supposed to be prOVided to Stevens for his defense, Sullivan
said.
Stevens was found guilty Oct. 27 of seven felony counts of failing to report gifts and services on
his annual Senate disclosures.
Sullivan said it was premature to say whether the allegations, if true, could have affected the
outcome of the trial. But Sullivan said. the allegations were clearly relevant to the Stevens case.

-- --=-->- --_.-==---=...
FBI - Stevens-2302
asking for a new trial, argQ that his case was tainted by goVernmeOisconduct,
ambng other issues. The motion will be heard by Sullivan in February.
The whistle-blower is a federal employee "with extensive knowledge of the investigation and trial
in this case," Sullivan said. The whistle-blower and the people named in the complaint "are not
strangers to these proceedings, but rather were significantly involved in the investigation and
prosecution of the defendant."
His order advised lawyers representing the Justice Department, Stevens and the whistle-plower
that he intended to make public a redacted version of the complaint Monday at 4 p.m. Eastern
Standard Time -- noon in Alaska.
The public version of the document will not reveal the names of the complainant or the subjects of
the internal investigation, Sullivan said, but will otherwise disclose the allegations.
Prosecutors had sought to keep the complaint secret since informing the judge of its existence
Dec. 11. Sullivan, in his order ,Friday, soundly rejected that effort, citing the constitutional rights of
Stevens to a fair trial and the public to observe the administration of justice. But he acknowledged
that the whistle-blower and the officials cited in the complaint had privacy rights, at least.in the
current stages of the internal investigation.,
SECOND INVESTIGATION
Stevens' lawyers, who complained throughout the month-long trial of prosecutorial misconduct,
had sought full public disclosure of the document, Sullivan said. The concerned
about the consequences of being exposed, joined with the government in seeking to keep it secret,
he said.
The complaint is the second time the Office of Professional Responsibility, which investigates
misconduct by Justice Department attorneys and law enforcement personnel, has gotten .involved
in the Stevens cOlse.
In mid-trial, lead prosecutor Brenda Morris told Sullivan that she and the other members of her
team had self-reported that they had failed to turn over material to the defense as required by
law.
The material involved FBI agent notes of irterviews with the government's chief'witness, Bill Allen,
the former chief executive of Veco Corp.
At the time, Sullivan said tle·thought the government was intentionally hiding information and
ordered prosecutors to sweep through their files and give everything connected to Stevens to the
defense.
With the jury gone from the courtroom Oct. 2, Morris acknowledged the government committed "a
gross error" in withholding the material, but denied any intentional misbehavior.
ARTWORK AND A JOB
From the_onset, the government sought to keep the latest problem secret, Sullivan said. When it
alerted the court to the complaint Dec. 11; it diel so in a sealed-memorandum, he said.
Prosecutors asserted the complaint bore "no relationship whatsoever" to the Stevens case.
"The court flatly rejects the government's position," Sullivan wrote. The complaint alleged a person
involved in the investigation accepted "multiple things of value," including "artwork and
employment for a relative" from cooperating sources, the judge noted with some irony._
"SlIrely does not need to remind the government that the defendant in this case was
convicted for failing to disclose-that he-had accepted multiple things of xalue f<ict, the trial
--
.

about his receiPOr!=work and for a wrote.
During one of the secret hearings last week, Sullivan said, he was unable to get any kind of
from a government lawyer to repeated questions about whether the complaint contained favorable
information that needed to be disclosed to Stevens. The lawyer's refusal to answer "blillks at
realitY," Sullivan wrote.
In his order, Sullivan cited a long history of court decisions supporting the public's right to know
about government conduct.
"To seal the complaint would be to deprive the public of information that direct!y addresses
courtroom conduct, that were introduced at trial, and information that was relied upon
by the court for various decisions throughout the proceedings," Sullivan said. "To say that the
public's interest in· this was and is significant would be an understatement. In fact, even post-
trial, the media has an interest in the case," he said, citing recent reports in the Anchorage Daily
News and the Washington Post.
But Sullivan acknowledged the complainant also needed protection, referring to a case involving
the Alyeska Pipeline Service Co., where a number of whistle-blowers were subject to reprisals in
the 1980s and 1990s.
At the secret hearing Friday, the lawyer representing the whistle-blower "argued that the
would not have filed the complaint, at least in the form it was filed, had the
complainant known that it might be made public."
But whistle-blower rights don't trump those of Stevens or the public, Sullivan said. Hiding the
identities in the document is adequate protection, he said.
Find Richard Mauer online at adn.com/contact/rmauer or call 257-4345.
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FBI - Stevens-2303
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adn.com IWitness in Sen. Stevens' testifying

Daily News
I: F--
W:l.fness-in Sen. Stevens' trial regrets testifying
By JESSE J: HOLLAND
(12/23/08
)
Page '1 of I
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A witness in convicted Alaska Sen. Ted Stevens' corruption trial has told the judge he never would have testified if he'd
known he did nothave immunity from prosecution.
"I would like to be perfectly clear ... I would have pleaded the Fifth," welder David Anderson said in a Dec. 15 letter to
U.S. ,District Judge Emmet Sullivan. Anderson was referring to his Fifth Amendment protection against self-incrimination.
, -
The letter was made public Tuesday in papers from Stevens' lawyers, who have asked Sullivan to hold a hearing qn
Anderson's charges and to let them investigate. It was unclear when Sullivan would rule.
he thought he had an immunity with the Justice Department, even though he tetsified during
that he did not hilVe such a deal. The Justice Department previously has said the government never made any
immunity with Anderson odor any of his family or friends.

D'epartment spokeswoman Laura Sweeney declined further comment Tuesday.
- ·f - •
Stevens, 85 and the Senate's longest-serving Republican, was convicted in, late October on seven felony counts of lying 6n
Senate financial disclosure forms to hide hundreds of thousands. of dollars in gifts and home renovations from millionaire
businessman and \'ECO Corp. 'founder Bill AIIEm, who is Angerson's uncle.
The senator, who is scheduled to be sentenced next year, has said he will.appeal. He lost his Senate_ seat to Democrat
Mark-Begich -in the November election.
allegation is the latest against the Justice Department since Stevens' conviction.
An FBI-agent, in-a heavily redactedJetterreleased Monday, complained about some of the department's tacti{s during the
trial, including-not turning over tQ an "inappropriate-relationship" between a
'1 and the prosecution's star witness. •
'.
seeV'erfs' Iiiwyers on Monday asked Sullivan to throw out the conviction or order a new trial because of the allegations.
not yet responded to their request. '
:- -
AhCJerson supervised the start of the 2000 renovation of Stevens' Girdwood, Alaska, home to .
maintenance requests by Stevens and his