Ted Stevens FBI File Part 2 by ProphecyFactory


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                monthsI                                                  FISA Talks Collapse
                                                      WhiteHouse, Congress

        THIS JUST IN:                                     JeffersonO ice Raid Unconstitutional
        RULES    SIRIKES
        MOLLOHAN                       ARCHlVE
                                    FULL                HOME
                                                                                                                  MUCK RESOURCES
        EAR1vIARKS                                                     Senate       Aide's
        TheHouse   Rules                                                                                                 of
                                                                                                                    Bios KeyPlayers
        Committee,          by
                   prompted a                                          Disclosure          Shows        No                  Old
                                                                                                                     Grand Docket
        request Rep.     Alan
                                                                       Payments From                                  HOT TOPICS
        earmarks the
                 that                                                                                                       Gonzales
        lawmaker  had
                                                                       Stevens                                          TedStevens
        asked from
              for     the                                              Laura McGannAugust 3, 2007,
                                                                       By         -              10:30                  Surveillance
                                                                       AM                                              U.S.Attorneys
        bill Wednesday night.                                                                                           Subpoenas
         TheHill!                                                      If the Senate   aidewho hasbeen                   Murkowski
                                                                       accused handling      Sen.Ted Stevens
        Fl-JMA SUSPIZNDS    USE                                         R-AK! personal nances     while on the            Iraq
        TRAILERS                                                       govemmcnt      clockreceivedseparate                 Read
        TheFederal  Emergency                                          payments    fromthe Alaskasenator, she
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        stopped  donating and                                                       in
                                                                       disclosure 2006, theAP reports
        selling disaster
                       trailers                                                                                     Advertise here
        while studies
              it       reports                                                                                    Obama for America
        thatpeople        in
                   living them                                                          yesterday the
                                                                       Roll Call reported       that
        andRita sick
                                                                       aide,Barbara         didn't
                                                                       any additional
                                                                                            incomein 2007
        JUDGE   BACKS   CIAIN                                                       in
                                                                          Flandersinvolvement theethics         WATCH BARACK
        SUI! ONMEM OIR              scandal       when
                                             airedTuesday      pressreports  saidshetesti edbeforea grand jury  "
        ValerieWilson bethe
         known former
                      may           about  Stevens nances provided
                                    aideto Stevens now is supposed work full time for theSenate
                                                                                    Flanders a fomaer
                                                                                            is        personal
                                                                                                                                    p °'
        recent history, a
                      but                    and
                                    Science Transportation                It
                                                              Committee. appears alsohandles
                                                                                     she           Stevens
        federal      in York
               judge New                             paid for
                                    bills.If shewasn't thiswork, Stevens     shouldhavelistedher servicesas
        ruledWednesday she
                         that         on
                                    a gift hisown disclosure  f0I1TlS,                 If             this
                                                                     whichhe hasnot done. accurate, kind 5-i" "1 £5 "- I Iii? _
        wasnotallowed say           of an arrangement a violationof federallaw.
        how longworked for
                 she                                                                                             Then AND New
        theCentral Intelligence
        Agency thememoir
                in            she          of         a
                                    Stevens ce offered vaguedenialof wrongdoing:
              to        this
        plans publish fall.                                                                                           time to
                                                                                                                  lt's project   strength
         NYTimes!                                                                                                  through  diplomacy  again,
                                          Stevens  spokesman,                   said
                                                              AaronSaunders, in an c-mailed
                                                                                                                   and timetoturn the page
        DOCUMIHVTS    SAY                           "As                      of
                                          statement: the formerchairman the Senate        Ethicsand
        ARMYIGVEW     OFIEXAM                                                                                         on the same insider
                                          RulesCommittees,  Senator          has
                                                                     Stevens vastknowledge      and               thinking that led Congress
        CHI£A'l ING
        TheArmy warned
                  was      at                        with
                                          experience theSenate       rules. haslong-standing ce
                                                                          He                   of                to authorizeBush's
        least years thatits
             six      ago                         that              with
                                          policies areconsistent these         rules,including                            war in lraq.
        onlinetestingprogram              personallystaff                         for
                                                     compensating members performing           tasks                    Advertise here
        was vulnerableto                  thatareoutside theirofficialduties."
                 and known
        cheating, has                                                                                               New video reveals...
        fornearly yearthat
        soldiers obtaining
                are                         | Comments |TOPlCS: Stevens
                                    Permalink 0!              Ted                                                      Justin
        copies exams   and                                                                                         Timberlakefs
                on     to
        answers thelnternet
                                    FBI "Gestapo-like" In Raid Of Stevens
                                                                                                                         s. it
        promotion  points,
        according military
                  to                Home
        documents.                    McGann
                                    ByLaura       - August 2007, PM
                                                         2,    5:44
         Boston Globe!                                                                                                    ¬~     at I . by.-_¢;
                                    Sen.Lan'y                      usedby FBI andIRS agents
                                                        calledthctactics                        who
                PAYS :
        I!.C. 'I'O          raidedSen.Ted StevensR-AK! home"Gestapo-like" today,the Crypt reports.
                                                                                                                          r O8
        PROTIESTORSCraig's       seems be thatthe agents
                         mainobjection   to                couldhaveparkeda large
        The of Columbia        -
                               FBI Stevens-848
            to      $1
        hasagreed pay                                                                                                      Bush?
        million 120protesters
        who were improperly                                                                                          Watchforyourself.
        rounded bythepolice
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           Ted     Archives
TPMmuckraker Stevens                                                                                             com/archives/eats/ted__stevens/
 it                                        Q                                                         I
                                              front of Stevens Girdwood
                                 white truck in                home,            photographedit and the
                                 neighboringproperty and carried out black trashbags presumably lled with
                                 evidence!muchmore discreetly than they did. Maybe Craig&#39;s beento
                                 Gtrdwood,because just consultedour handyGirdwood map and it looks like it
                                 mighthavebeentough         dozen federal agentsto have shown up at the most
                                                        for a
                                                   housewithout any of the neighborsnoticing:
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                                 From the Crypt:

                                           "I think somepeople say, Ah,but for the grace of God go 1.
                                          Especiallywhen                    you
                                                                  have the allegatiatons,   have the
                                          judicial segmentof our govemment,the executivebranch, out
                                           raiding the homesof senators,thatis very frightening
                                           proposition.It is bit Gestapo-likein its styleand tactics,
                                           Craig saidon Wednesday."When the FBI was offered a key
                                           and invited into the home,       chosepublicize it to make sure
                                           the mediawas there rst, andthey     broke in. That is
                                           gamesmanship.    That makessenatorsvery, very angry when they
                                           attemptto cooperatewhen for reasonthey are caught in these
                                           websandyet they aredenied that for the sakeof the judciary s
                                           publicity.      is wrong.

                                         |                   Ted
                                 PermalinkComments4! | TOPICS: Stevens

                                                                           Uncle Ted&#39;s
                                                                           By LauraMcGann August1,2007,PM

                                                                           Planning to eatat Uncle Ted&#39;s If
                                                                           you are,planon canceling.

                                                                           A former aideto Sen.Ted Stevens
                                                                            R-AK! led papersin 2004 to createa
                                                                           restaurantcompany called Uncle Ted&#39;s
                                                                           Alaska LLC. But, unfortunately, it looks
                                                                           like the aide got cold feet last year, right
                                                                           around the time his boss criminal
                                                                           investigationcameto light. few    weeks
                                                                           following       Anchorage Daily News FBI          Stevens 849
                                                                           initial coverageof the scandal,the aide,
                                                                           Trevor McCabe, dissolvedthe company.
                                                                           "Decision not to pursue  original business
                                                                           idea," is the only explanation.

                                                                        According to documentsMcCabe led
                                                                       with the state,he was registeredto run
                                                                        eating and drinking places,foodstores
                                                                        and miscellaneous  retail stores.Perhaps
                                 he had a vision for a chain restaurantdevotedtofoods loved by Stevens,who is
     Stevens http://wwwdpmmuclcraker
TPMmuckraker Ted                  com/archives/c
           known as"Uncle Ted" up in his homestate. Alas,            know
                                                          we&#39;ll never we can
           only offer our suggestion "Big Boy" inspired icon!. lcan imagine amean
           salmon sandwich, could even call it a  "Murkowski" for fun. Certainly pork
            ribs? chop? roast?! wouldhave beenin generoussupplyl

           This wouldn&#39;t been   the rst time that McCabe usedhis relationshipwith
           Stevens for bene t -- a                             clearer
                                     connection that&#39;s become dueto the federal
           investigation ofStevens. He  served onamarketing boartbvith Stevensson,
           Ben Stevens,                                                    while they
                         that providedfederal grantsto the seafood industry,
           were paid"consulting fees" the same companies      receiving themoney. He
           also bene tedfrom a string of the elder          earmarks that have come
           under FBI scmtiny.

                     l         |      Ted Stevens
           FerrnalinkComments ?!TOPICS:

                                                 Company Tied To
                                                 Stevens Fishery
                                                 Scandal Got             $3.5
                                                 Million Earmark
                                                        McGannAugust 1, 2007,
                                                 By Laura    -              12:54

                                                 One of the companies    involved in the
                                                 widening federalprobe         Alaska
                                                 political corruption is positionedto
                                                 benefit handsomelyfrom a    $3.5 million
                                                 eamiark tuckedinto a   2008 Senate
                                                 spending bill by Sen.Ted Stevens
                                                  R-AK!, CQ reports.

                                                The company,Trident SeafoodsCorp.,
                                                was oneof severalthat receivedfederal
                                                money via a local board headed by
                                                 Stevens son, Ben Stevens.While the
                                                younger Stevensout
                                                                 dolled    federal
                                                grants supplied his father, he
                                                received "consultingfees" from an
           association formed the same companies
                             by                              grants. Trident CEO
                                                    winning the
           Charles Bundrant contributed $6,700to the elder Stevenscampaign and
           affiliated PACssince2004.     also gavethe NationalRepublican Senatorial
           Committee $35,000   between 2005and 2007.

           The earmark                  airstrip that would
                        CQ notesis for an             service       seafood giant
           Trident, andthe 100Alaskans  who live in Akutan.

                          Stevens are nostrangers. For
                  Trident and                               years, company
                  founder and Chief Executive Charles Bundrant    has been a
                  generous contributor the Alaska Republican scampaigns.
                  And in December, according the Seattle Times, a     federal
                  grand juryinvestigating political corruption in Alaska ordered
                  Trident andother seafood companies toproduce documents
                                  ties the        s       Alaska
                  detailing financial to senatorson, former
                                    Board Chairman Stevens.
                  Fisheries Marketing           Ben                                         FBI - Stevens-85f!

                                       Ben Stevens
           PermalinkComments 4! |TOPICS:
                   I                             :Ted Stevens

                   ,rt i             .           Senate Leadership
              H                              I&#39;M;
                          V              ;       Backs Stevens
               92~;                          Laura McGann-August1,200&#39;I,11:52
                         W, V. » p _~.¬/1 _ AM
                                ,.   1

                  i            ~_
                                                     Sen. Ted
                                                 TlzellillStevens R-AK!       told
                                               Members of the Senate leadership

                                                      allowed to
                                                 should be keep his
                                 -.5 -~f.        committee seats.

4 of38                                                                                                      8/3/2007 5 14 PM
       ,__._- _~ < --~~- .._l,~-u-,.__- ...-1.1..
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                                                                                                                                                                  -92.     t        ___

     Stevens http://www.tpmmuek1&#39;aker.com/a
  1-       a
                                         &#39;1 have                                     Stevens temporarily  removed from
                                                                                     his committeeassignments untilthe
                                                                                     conclusion of afederal criminal
                                                                                     investigation looking into his dealings
                                                                                     with oil services company  Veco and a
                                                                                     series ofeamiarksthat ted        one of
                                                                                     his pet projects in

                                                        ..    .          ,Unlike           in the House, theSenate has
                                                                                     adopteda"wait and see"posture:

                                                  Senate MajorityLeader HarryReid D-Nev.! and Minority
                                                  Leader MitchMcConnell R-Ky.! both saidTuesday that
                                                  Stevens could                                    since
                                                               continue servingon his Senate panels,
                                                  charges have been brought against
                                                              not                     him.

                                                   My personal feeling is that we have tobe very careful about
                                                  punishing people during an investigation," Reid,aformer
                                                  longtime appropriator,                      know
                                                                        said Tuesday. I don&#39;t anything
                                                  about theStevens investigation, I m not going to be in a
                                                  p0SltiOn where becausesomeone s under       investigation
                                                  they re punishedhere in the Senate.

                                                           8!        Ted Stevens
                                          Permatink [Comments |TOPICS:

                                          Stevens Vows                To Block           Ethics Bill
                                          By Laura                  PM
                                                      -July 31, 2007,

                                                   we                more
                                          Just when thoughtthere wasno                 Sen. TedStevens R-AK! news for the
                                                  Brcsnahanhears that
                                          day, John                          to block
                                                                  he&#39;s promising ethics legislation.
                                          You couldn&#39;t thisup:

                                                  Republican Sen. Ted Stevens, whose home  back in Alaska was
                                                                               Monday in a
                                                  raided byfederal investigators           wide-ranging
                                                                          has threatened place a hold the
                                                  corruption investigation,             to        on
                                                  Democratic-dra ed ethicslegislation justpassed by House
                                                  and expected the Senate floorby week s end.

                                                  The senatortold aclosed session offellow Republicanstoday,
                                                  including Vice President DickCheney, thathe wasupset that
                                                  the measure                                  and from Alaska
                                                              would interfere with his travel to
                                                   and vowed toblock

                                                  And Sen.Lany Craig R-Idaho!, con rming Stevens threat,
                                                  said bluntly: There could alot of holds on this bill."

                                                   |         ] Ted
                                          PermalinkComments 0! TOPICS:              Stevens

                                                                                     Stevens Financial
                                                                                     Clerk Testi es
                                                                                                                                  FBI      Stevens 851
                                           . Before                                                Grand Jury
                                                                                     Laura McGannJuly 2.1, 2001, PM
                                                                                     By         -
                                           iA                                              clerk
                                                                                            for     Stevens
                                                                                        Senate Sen. Ted
                                          &#39;                                              has testifiedbefore agrand
                                                                                     jury about the remodelingof the
                                                                                      senator&#39;soverseen byVeco, the
                                                                                     AP reports.

                                                                                     The CommerceCommittee clerk,
                                                                                     Barbara Flanders,who assisted Stevens
                                                                                     with his personal nancial records, also
                                                                                     handed overdocuments related the

5 of 38 8/3/2007                                                                                                                                                     5:14 PM
    Ted Archives
TPMmuckraker .                                                   http://www.tprnmuckraker
                          and                      knew how murky
                                                 she about the home
                                         remodeling        bills
           §g11_Te<i$1gven$tR~{92!»Q VJDC,PlX,gon1! pl 0]¬0lI were paid.

                                                   Flandersis not the rst Capital Hill
          stafferto be brought in to the investigation.Someof Stevens former aideshave
          alreadybeenquestionedby the FBI.

          Stevens arftully claimed he paid every bill he receivedfor the work done
          on his house.But the contractoron the job has describeda suspiciouspayment
          process.The contractor,Augie Paone,said he would submit invoices to Veco
           the major oil servicescompanyup in Alaska! and then would receivepayment
          from Stevens.  Paonealsosaid the cheekswere all coming from a special
          accountsetup for thejob.

          The     also con rms that Interior Departmentinvestigatorshavejoined in the
          investigation,probing a series of earmarks Stevensobtained:      Interior
          Departmentsinspectorgeneraland the CommerceDepartmenthave alsojoined
          the caseto investigateStevens connectionswith a Seward,Alaska, marine
          science organizationthat operatesthe Alaska SeaLife Center."

                  |                  Ted
          PermalinkComments4! ITOPICS: Stevens Veco

                                             i  VStevens Investigation
                                                 Broader        Than       Veco
           f                                     Home Makeover
                                                 By LauraMcGann July 31.zoo"/,12=1s

                                                 It&#39;s the FBI is looking into
                                           g.    more than Sen.Ted    Stevens
                                          1      Veco~overseen     remodeling project.
                                                 Roll Call reports that the FBI and the
                                                 Departmentof Interior are also looking
                                                 into seriesof earmarksfor one of
                                                 Stevens pet projects.

                                               The project, the Alaska SeaLife Center
                                                in Seaward,Alaska, has receivedsome
                                                $50 million in federal money since
                                                 1998.One of Stevens former aides,
                                                Trevor McCabe, was paid      8,000 of
          that money for an adjacentpieceof land. Federalinvestigatorswant to know
          more aboutthearrangement.

                    t                                                        pocket.
          It wasn the only time that federalmoney found its way to McCabe&#39;s
          McCabeis also tied to the federal investigationof Stevensson, former state
          Senate President  Ben Stevens. The FBI:-aidedthe younger Stevensoffices last
          year,gatheringdocumentsrelatedto his time on an Alaska boardhat handed
          out millions in federalgrantsto the seafoodindustry. While Stevenswas on the
          board,he partnered                 a
                               with McCabe in consulting companythat took feesfrom
          the companies receivedthe federal money. The older Stevenssaw to it that
          the board was stockedwith federal funds.                                  °

          If the three-pronged                                    by
                               federal investigation into Stevensrun the IRS, FBI and
          Interior Departmentdoesn&#39;t you, Roll Call mentionsthat the raid of a FBI
                                       impress                                            Ste-vens 852
          US senator&#39;sis ahistorical moment in Congressional     comiption:
          "Stevensappearsbe the only memberof the Senateto have ever had his
          residence  raidedby the FBI. "

                  l       I
                          9!      Ted
          PermaltnkComments TOPICS: Stevens

           I                                     CREW:          Stevens
                                                 Should Step Down
                                                 from      DOJ Committee
                                                 By PaulKiel- July31,2007,   AM

                                                                                                   8/3/2007 5:14
     Stevens Archives
TPMmuekraker: http://wvvwftpnmiuekraker.com/archive
 ,       1

                                                    Another D.C. watchdog, Citizensfor
                                                    Responsibility andEthics in
                                                    Washington, has             for
                                                                    joined the call
                                                    Sen. TedStevens R-AK! to relinquish
                                                    his committeeseats, thistime focusing
                                                    on Stevensseat onthe committeethat
                                                    funds theJustice Department.  Says
                                                    CREW director Melanie Sloan:

                                                  "Senators should   follow the
                                                  lead of their Housecolleagues
                                                  and require whose
                                                  property hasbeen searched     in
                                                  connection with a criminal
                                                  probe torelinquish his plum
                    committee post. Senator Stevens,       on
                                                    who sits the subcommittee
                                  funding the Justice Department,
                    responsible for                                 which is
                    conducting aprobe into his potentially criminal activities,
                    should immediately resign hisposition on the Appropriations

             A similar situation occurred the House earlierthis year,where Rep.Alan
             Mollohan D~WV!,who&#39;sunder    been
                                              federal     investigation sincel£1S A]&#39;!l il, did
             not step                                     that
                            from his cliairmnnshipof the panel     oversees the Justice
                            Mollohan,      recusecliimself from
             Department&#39;s budget. however,                Department
                         recusal has
             matters. That                                          Call
                                   been calledinto question,however.Roll           reported
                     yesterday that
             sub. req.!                            voted    an
                                 Mollohan nevertheless against amendment
             last weekthat would                   FBI&#39;s budget million.
                                       increased the          by $6

                       I                Ted Stevens
             Pennalink Comments ! TOPICS:

             Watchdog: StevensShould StepDown
             from Committee                Posts
                   Kiel            10248 AM
             By PBIII -July 31, 2007,

             Below is the letterthe nonpartisanD.C. watchdogTaxpayers forCommon
             Sense sent Senate    Minority Leader Mitch McConnell R-KY! this morning
             asking thatSen. Ted  Stevens R-AK! get thetemporary bootfrom his committee

             The letter:

                                                                                              FBI     Ste-vens 853

7 of38                                                                                                          8/3/2007 5:14PM
        Ted Archives
    TPMmuckraker:                                               http://wwwipmmuckrake
                   TheHonorable    McConnellMinority LeaderUnited
                   States    Washington, 20510

                   July l, 2007


                                      that           Ted StevensR-AK!
                   Fm writingto request you askSenator
                   totemporarily        from committee
                                  himself   his     assignments
                                 criminalinvestigation his activities
                   untilthefederal                   into           has

                   UnderMinorityLeaderJohnBoehner R-OH!, House
                   Republican  leadership            a           of
                                         havecreated precedent self-policing
                   by asking lawmakers                            to
                                        underfederalinvestigation leavetheir
                   committee              until                is
                              assignments the investigation completed,
                   particularly a
                               after search                 on
                                           warranthasbeenexecuted their
                   homeor business. urgingRep. Rick Rienzi R~AZ! andRep.
                   JohnDoolittle R-CA! to leavetheircommittee    assignments,
                   Leader Boehner  drewa proverbialethicsline in the sandthathe
                   will notcross.      a
                                  Now that searchwarranthasbeenissued     and
                   executed hishome, it is time for Senator
                            in                                       to
                                                            Stevens do the
                   rightthingandstepdownfromhiscommittee       assignments.

                   We don t  makethisrequest lightly.Senator         has
                                                             Stevens served
                             of                     for
                   thepeople Alaskain the Senate 37 years.Like every
                   target a federal              or
                                    investigation criminaldefendant,   Senator
                    is                             and
                   Stevens entitledto dueprocess remains       innocent until
                   proven            But             for
                          otherwise. the standard holdinga power ll
                   committee  position      not
                                      should hingeon theabsence a    of
                   criminal conviction.                    of
                                       Eventhe appearance usingpublicoffice
                   for personalpro t undermines                   in
                                                publiccon dence Congress.
                   A judicial ndingof probable  cause             of
                                                      thata search the
                   Senator homewouldproduce
                             s                   evidence a crime certainly
                   hastheeffectof harmingthepublictrust.

                                         that    Stevens
                   Thereis growingevidence Senator     may haveused
;                    powerful on appropriations
                   his    perch the              todirect
1                      of                           to
                   tens millionsof dollarsof eamiarks bene t family, friends,
l                       partners former Wethink would
                   business and      staff    you   agree
                   thattheuseof publicoffice for personalpro t in anyway,
                         or      be
                   shape, formcannot condoned.                      will
                                                     Indecisiveness harm
                   thepublictrustandcurrent Senate  effortson ethicsreform.The
                   Senate      to
                         needs takedecisive    actionto showtaxpayers  that
                              will be
                   self-dealing not tolerated.

                   Thankyoufor yourattention thismatter.


                   Taxpayers CommonSense

                                                                                    FBI   Stevens 854
                      | Comments | TOPICS: Stevens
              Pennatink        9!        Ted

                                                Today&#39;s Read
                                                ByLaura                10:08

                                                 Two dozenFBI andtheIRS agents
                                                 took close               at
                                                           look yesterday the
                                                 infamous            job by
                                                         remodeling overseen
                                                 Veco Corp.thatdoubledthe  sizeof
                                                 Sen.Ted Stevens R-AK! home,
                                                 snagging in thewideningprobe
                                               t intoAlaskapoliticalcorruption.

    8 of38                                                                                         8/3/2007 5:14 PM
                _            ,-.- .-»-.... .~»_;______       ~1
                    &#39;__.__:___;_ _~<_ ~-1 ~-i DF v ! 1&#39;A.1 -t~~.-»_-s:
                                                                i1<G-». _- ,.y--_-;._~.,1t~,.@t,/-»w.w-,. q...-.1.-. .__ n&#39;92u¬&#39;
                                                                      i:                5,;§_5 ,,h;q_. l. ,t__,.-alg_L....u~.n_ .1
                                                                                                                            ;._{_ __l______

                      7orful                                       details.

                                                               The agents  were at Stevens improved
                                                               home in the smalltown ofGirdwood
                                                               with curtains drawn well into the night
                                                               -- collecting evidence andshooting
                                                               photos andvideo of the houseand
                                                               neighboring property.The FBI and IRS
                                                               declined tocomment onthe raid,but a
                                                               reporter perched  outside Stevenshome
                                                               got apretty good idea ofwhat was
                                                               going on:

                                                               The agents  were obviously
                                                               cataloging thehouse andits
                                                                xtures, from light switches
                                            outlets to abig stainlesssteel barbecueon
                               and electrical                                        grill a
                               second-floor deck that neighborssaid washoisted there    with a
                                      one point, agentsclimbed on the pitchedmetal
                               crane.At                                            roof       to
                                            of tape
                               take pictures heat        the gutters.

                                       carried a
                               One agent                                   out
                                                full large blackgarbage bag of the
                               house and it in the white truck.

                      Stevens, who themost seniorRepublicanin                  on
                                                               the Senate, sits the Commerce,
                      Science andTransportation andAppropriations committees. Known for his
                                           watchdog groupTaxpayers forCommon Sense ask
                      aggressive earmarking,                                            will
                      Senate MinorityLeader Mitch McConnell R-KY! to temporarily remove
                                   his                                               to
                      Stevens from postsuntil the federal investigationends, according Roll
                      Call sub req.!:

                               According to a sourcewith the group, this will be the first time
                               TCS hasever madesuchan     appeal. But the organization will
                               argue ina letterto McConnell that given the currentpublic
                               concern withCongressional ethics, shouldtake apath similar
                               to onethe HouseGQP leadership     has followedand request     that
                                                   his     on
                               Stevens relinquish seats the two powerful committees
                               until the investigation iscompleted....

                               In the letter, TCSPresident Ryan Alexander will argue that
                               McConnell shouldask Stevens stepdown until this federal
                               investigation can resolvedand thepublic trust restored," said
                               the source,  who spokeon condition of anonymity because the
                                          not                   as
                               letter had yet been completed of this posting.

                      Stevens son,former state                  Ben
                                               Senate President Stevens        has beenimplicated in
                                           payments fromVeco executives,
                      receiving questionable                                   and Rep.Don Young
                       R-AK! is under federalinvestigation for his tiesto the company as well.

                      Update: See letterfrom Taxpayersfor Common Sense here

                           1        Must                                      Wf
                                                               Rid : il ediStevens H                     - Stevens-855
                      BREAKING: FBI                      Raids Stevens              Alaska g
                            Kiel            PM
                      By Paul -July 30, 2007,

                      From theAnchorage Daily News:

                               Federal lawenforcement agents currentlysearching the
                               Girdwood homeof Alaska U.S. Sen.Ted Stevens, FBI agent

    90f38                                                                                                             8/3/2007 5:14 PM
                    IAl1 cansayis thatagents      FBI
                                            from the     IRS
                                                        and    arecurrently
                             a       at               said
                   conducting search thatresidence," Dave Heller, the
                           special                 F
                                        charge of the BI&#39;s
                                  agentin                           of
                                                           Anchorage ce.
                   The searchbegan              he
                                   thisaltemoon, said.

             That&#39;s home,of course, wasdoubleda renovation
                  thesame               that            by         undertaken
              2000 -- thecontractor,
             in                            wasVeco, the corrupt company.
                                  curiously,                   oil     Veco,
                        have                                of
             prosecutors pointedout "wasnot in thebusiness residential
                         or                   not all      curious
             construction remodeling.And that&#39;s that&#39;s aboutthe

                     1Comments | TOPICS: Stevens
             Permalink       8!        Ted

                                      Don Young Under Federal
                                      Criminal Investigation
                                                         2007, 9:09PM
                                      By LauraMcGannJuly24,

                                      The WallStreetJournalreportsthat 18-termRep.
                                      Don Young R-AK! is undercriminal
                                      investigation hisdealingswith Alaskaoil
                                      servicescompany Veco Corp.

                                      While the investigation Sen.Ted Stevens
                                              to    including remodclingof
                                      R-AK!ties Veco,       the
                                      hisGirdwoodhome,hasbeenwidely reported,
                                      thisis the rst time Younghasbeenimplicated
                                      the scandal.

              looks like an annual
             It                           fundraiser
                                  pig-roast               the
                                                   snared congressman    knownfor
             hugeporkprojects,           the
                                including infamous   "Bridgeto Nowhere."


                   For a decade,
                               formerVECO ChiefExecutive   Bill Allen has
                                  for             every
                   heldfund-raisers Mr. Young in Anchorage         August,
                   knownas"ThePig Roast, paiticipants said.Publicrecords
                   showcontributions Mr. Young of at least l57,000 from
                                    to                    $
                   VECO employees itspolitical-action  committee   between
                         2006, the lastyear theeventwas

                   Mr. Youngamended campaign- nancelings in January      to
                   re ect                    to
                                 in payments Mr. Allen, the formerVECO
                   chief.The refunds,           previously
                                     whichhaven&#39;t      beenreported,
                   werelabeled             costs" documentsled with the
                               "fund-raising    in

                                   of                  contracts, it&#39;s
             Vecohasbeentherecipient a varietyof federal        but  still not
             clearwhatthecompany                   in         for
                                wouldhavereceived exchange all of its alleged

                    [Comments | TOPICS: Young Stevens
             Permalink     9!        Don    :Ted                                     _ Ste /en5_856

                                               Ted Stevens
                                               Foundation          Late       To
                                               Register, Pay Fees
                                               ByLaura-         2007, 5:48
                                                     McGannJuly24,        PM

                                               The Ted Stevens          was
                                               founded2000 aimingto servea
                                                                 causes work
                                               varietyof admirable     and
                                                            and         the
                                               on "educating informing public
                                               aboutthecareer Senator  Ted
                                               Stevens." extentof its charitable
10 of                                                                                           8/3/2007 5:14 PM
     Ted Archives
TPl92/Imuckraker                                                 http://www.tpmmuckrak
           92                                  ling a FOIA request            the
                                                                   with Alaska,
                                                Sunlight Foundationdiscovered  that
                                                 group hasfailedto pay itsduesand
                                                       with the state lastthree
                                                register             for

                                                A shortage moneyisn theirexcuse.
                                                           of           t
                                                Backin 2005 The Ted Stevens
                                                Foundation,  whichwasrenamed  North
                                                to theFutureFoundation year,had
                                                          of million
                                                net assets $1.7        in 2004 and
                                                $2.3 million in 2005.

                                              Besides         the
                                                     spreading wondabout
                                              Stevensaccomplishments, group
                                                       make grants other
                                              alsoaims"to            to
           publiccharities to provideprograms  whicheducate,encourage
           communication, relievepovertyandpromote community                 the
           state AlaskaandtheUnited States.

           How successful it beenat givingout money?         to
                                                    According Sunlighfs

                 Between                              has
                          2003 and2005 the foundation spent   morethan
                 $380,000on fundraisers hasgivenout
                                       but            only            one
                                                            two grants:
                 for $40,000to theSmithsonian          in
                                              Institute 2004 and$10,000 to
                 theAnchorage                     in               to
                               RowingAssociation 2005, according the

           So, then,whatdoesthisnon-profit actuallydo?Back in 2004 The lVasIu&#39;:tgz an
                             takinga guess therealpurpose: shakedownlobbyists
           Pastranan editorial              at               to
           forthebene tof sittingpoliticians.

           At aneventheldat theCapitall-liltonin 2004, The Ted Stevens
           aimedraise millionwith tables
                     $2                    goingFor$50,000 each.Someluckydonors
           hada VIP at theirtable oneof thetwo thirdsof the Senate membersthat
           attended. thetime,Stevens
                   At                          of
                                      wasthechair the Appropriations   Committee
           andlobbyists happy
                        were         to                    for
                                  to donate his"charity" a little time by hisear.

           The Washington editorialcutsat theheartof theproblemwith thiskind of
           a "non-pro t":

                 Whenfoundations thisaresetup for thebene tof sitting
                 lawmakers,           for
                             requests contributions                       air
                                                       havethe inevitable of
                 a shakedown:   What lobbyist                 in
                                              with an interest appropriations
                 matters                                    charity?
                         wouldfail to giveto Mr. Stevens&#39;s Meanwhile,
                 themoneycancomefrom corporations areprohibited            from
                 givingdirectlyto the senator&#39;s campaign, in far  and
                 larger                than
                        denominations ordinary      campaign   contributions. All
                 of thisactivityis subsidized thetaxpayers,    since
                 contributions the fundaretax-deductible.     Most disturbing of
                 all, theStevens            -~
                                 foundation unlikesomeof theothercharities
                                         --      planto
                 with tiesto lawmakers doesn&#39;t disclose donorsits       or
                 theamounts   theygive.                                               -
                                                                                      FBI   Stevens 857

                   | Comments |TOPlCS: Stevens
           Permalink        1!       Ted

                                                Stevens        To Walk
                                                Backward Through
                                                ByLaura-                5:29PM

                                                Sen.Ted StevensR~AK! announced
                                                hisplansthisweekto startan Alaska
                                                awareness        he&#39;ll
                                                             where guide

                                                                                                     8/3/2007   14 PM
    Stevens &#39;
TPMmuckraker:                                                http://wwwipmmuckra
           Q                                demonstrate     --
                                                            needs which
                                             requirelotsof federalfunds.

                                             The guidedtours       showcapital
                                             politicos maybebloggers,  too?!how
                                             vastandremote state     reallyis,
                                                       for       in
                                             especially those ruralvillages.

                                             Interestingly,     had speci c
                                                  the pressconference
                                             rulefor                 wherehe
                                             unveiled plan:

                                              Stevenssaidhe wouldn&#39;t
                 answer questions                               in
                                    with the word "investigation" them,
                 which ruledout questions
                                        aboutthe federalinquiryinto
                            that       the
                 renovations doubled sizeof his Girdwoodhomein
                 2000. No charges     beenbrought, a federal
                                                   but         grandjury
                 has                   with
                                involved it.

                   I Comments | TOPICS: Stevens
           Permalink        7!        Ted
            A                                     Artful
                                             Laura McGannJuly18,2007,
                                             By                     2:42PM

                                             Sen.Ted StevensR-AK! gavean
                                             artfulexplanation how he paid for
                                             theremodeling hishomeyesterday
                                             -- so agrantlyartfulthatquitea few
                                             TPM readers havewrittenin to ag it
                                             as "non-denial denial."

                                             The longest-servingRepublican senator
                                             was defending  himselffrom
                                                         that company
                                             accusations oil-services
                                             Veco Corp.paid for therenovation
                                             project            the
                                                    thatdoubled sizeof his
                                             Girdwood, house
                                                         Alaska       2000. A
                                             grand                    has
                                                   jury in Washington started
                                             lookingintothejob because Veco&#39;s
                                             bizarrerole asgeneralcontractor.

                                                           matter,Iwill tell
                                              As a practical
                                              you. We paid       bill that
                                                           Every bill that
                                              wasgivento us.
                                              wassentto ushasbeenpaid,
                       ~   &#39;     e        personally,with our own
                                                               all there
                                              money,andthat&#39;s is to
                         our own
                  it. It&#39;s money.

                       didn sayhe paid for thewholejob: he paid for what he was
           NoticeStevens    t
                                                                                   FBI   Stevens 858
           And whowassending the invoices?

           According thesub-contractor,
                   to                                           to
                                     Augie Paone,who washiredby Veco
           handle construction hewould
                the        work,         bills
                                     givehis                               for
                                                           toVeco notStevens!
           review.Then,payment &#39;om wouldarrivein the
                                   Stevens                 mail.  The checks all
           camefroma special       set              for     job,
                             account up speci cally theremodeling Paone
           toldthepress few months
                      a           ago.He recentlyhired a lawyer andis no longer
                   received response ourrequest clari cation
           We haven&#39;t          on         for           from Stevens

           1       EommentsITOPICS: Stevens
           Permalink     8!      Ted      :Vecu

12 of 38                                                                                          8/3/2007 5:14 PM
        D           92
                                             Second       Disclosure
                                             ByLaura    -        11:45

                                             Sen.Ted StevensR-AK! is getting
                                             anotherextensionto le his nancial

                                             Spokesman  AaronSaunders
                                                  could not elaborate
                                             saidhe                 on
                                             what changes       to
                                                         needed be
                                             madeandissued briefwritten

                                                "The EthicsCommittee has
                                                completed reviewandhas
                                                askedSenator        to
                                                              Stevens make
                                clari cations hisdisclosure,the statement
                  a few technical            to
                  said. To makethese                    the
                                      minoradjustments, Committee     has
                  granted Senator   another extension."

                        paperwork dueMay 15,but Stevens
            Thedisclosure       was                           deadline.
                    it       the    Ethics
            Heskirted byasking Senate            to
                                         Committee review         from
                                                         his nances
            theprevious                                    like
                                        facinglegaltroubles, Rep.JohnT.
            Doolittle          Robert
                            Sen.           D-NJ!,didthesame.
            Permalink        l5!     Ted
                    | Comments TOPICS: Stevens

                                              Stevens Popularity
                                              Sinks To New Low
                                             By Laura    -        11:26
            E                                AM

                                                     hopes the grand
                                                 bethe              jury hasa
                                                  opinion him.
                                              better    of
            is                                   poll
                                                new      shows     44%
                                                              thatonly     of
            P                                 Anchorage votershavea positive
            11                                attitudeaboutSen.Ted Stevens

                                              That&#39;s dip for Stevens,
                                              according pollster Ivan Moore, who
                                              saidthatbetween  September2005 and
                                              April 2007 thesenator&#39;s
                                              ratingranged58between percent and
                                              63 percent.

                  isn t
            Stevens tooeoncemed:
                                                                                   FBI   Stevens 859
                  "Mooreis an opinion-making          not
                                              pollster, an opinion-taking
                  pollster,"      told theFairbanks Daily News-Miner.

                    |Comments | TOPlCS: Stevens
            Permalink        !        Ted

            Alaska Lawmakers               to Get Ethics
            ByLaura-            11:49
                  McGannJuly13,2007,       AM

            Sharpenthose      2       Alaskalawmakers. a moveto combat
                        number pencils,              In                  the
                     scandals launched FBI&#39;s intothe state&#39;s a new
            corruption      that        the   probe            politics,

13 of                                                                                                       PM
                                                                                                  813/2007 5:14
       PMmuclcraker: Ted
&#39;l Stevenshttp://W?tpmmuckraker.com/archive

                state iaw requires legislators undergoethics training.

                Gov. SarahPalin signedthe law earlier this week, right after former state Rep.
                Tom Anderson R! was found          of sevencounts of extortion, bribery,
                conspiracy andmoney laundering. Anderson wasaccused oftaking bribes from
                          prison industry exchange pushing facilities
                the private            in        for     for                 state.
                                                                    across the
                The legislaturehopes thenew law will help clean upits image.

                       House 109
                              Bill     tightens upthe de nition of bribery, requires
                       legislators tomake nancial disclosures when    leaving of ce,
                       puts newdisclosure requirements consultingfees and       meals
                       purchasedlobbyists for lawmakersand makes
                                  by                                     numerous
                       other clari cations in laws applying to both the executive and
                       legislative branches.

                                          Ted Stevens
                PcrmalinkComments! |TOPICS:

                                                      The Senate:             One
                                                      By Laura                             PM
                                                                         -July 11,2007, 2:40

                                                      The family that&#39;s investigated
                                                      stays together.

                                                       Sen. TedStevens R-AK! said his
                                                       fellow senatorshave stoodbyhim now
                                                       that hefaces federalscrutiny for his
                                                       involvement with oil eld services
                                                       company VecoCorp.

                                                       During an interview with reporters last
                                                       week in Alaska, alocal public radio
                                                       station grabbedaudio of Stevens

                                                    Thcre is sort of a cloud out
                                                    there, butit&#39;s not my
                                                    role asa senator for Alaska, if
                                                                   is a
                                                    anything, it&#39;s strange thing,
                                                    it s enhanced because
                                                    senators read  papers too,and
                                                             of a
                                                    it&#39;s sortfamily, the senate
                                                    family comesaround when
                                                    someones gota     problem. And
                                 encouraged me:
                        they&#39;ve all                    excited this
                                                "Don&#39;t get about          because
                        so manypeople have been throughit in their own states and  it&#39;s
                        not aneasy thing."

                                 Bums R~MT! wasn&#39;t around
                Too badSen. Conrad                      to provide a          cry
                                                                    shoulder to

                      15    here.
                The audio onhne FBI                                                              _ Ste /enS_86O
                       |Comments |TOPiC$: Stevens
                Permatink     87!     Ted                                            _

                                                       Stevens Secured Big
                                                       Federal Money For
                                                       Business Partners
                                                                    -      2007, 11:14
                                                       Laura McGann July 10,

                                                       The federalgovemrnent has  been very
                                                       good to two of Sen. TedStevens
                                                        R-AK! business partners, Leonard

14 of38                                                                                                   8/3/2007 5:14 PM
W1                       ~-- -- ~&#39;
                 &#39; &#39;~~--»~ ~ ~-; ~ - ~> ~ ~~~~ »» ~~~ ~~ ~ ~~-|_|gq-; ~~~ -A---.~ -»_ ~ ~-;-s-».-M--~.-»» Us . 4
                                               A                                »--M-» » -                  ~» H» -»--___;_.~. i _--, -
                                                                                                             -          ...- .-V

 TPM1nuckraker: Ted

                                 II                                                        of
                                                                       lb. req.!John Stanton Roll Call.

                                                                            In 2004, Stevens slippedthem a $3.5
                                                                            million earmark for an empty plot of
                                                                            land in Anchorage thatwas to be used
                                                                            by the National Archives and Records
                                                                            Administration. The deal meant$2
                                                                            million pro t for Hyde and Rubini.

                                                                                             since the
                                                                            What&#39;s happened initial
                                                                            windfall for Stevens business
                                                                            Not much:

                                                                          Since theland dealwas
                                                                           nished, federal funding has
                                                                          slowed signi cantly for the
                                                                          project. Despitea pricetag of
                                          at least million
                                                 $29         in constructioncosts, Stevens  appears to
                                          have taken  only modest interest insecuring fundingfor the
                                                         the                     set      $3
                                          project since land transfer. Stevens aside million in
                                          2005 for site preparation,while the archives eamiark
                                          diminished tojust $1.9 million last year.

                                          However, according a May l l,2007, Anchorage DailyNews
                                                        tagged forthe constructionhas been
                                          story, $290,000
                                                         new               project being
                                          reprogrammed fora speed-skating-rink
                                          planned next the NARA land. Stevens also     secureda
                                          $940,000 earmark  speci cally for the skatingrink in 2004,
                                          according tothe story.

                                           secure federal money business
                                 Stevens help
                                          to                 for                atypical. Roll
                                                                       contacts is          Call
                                 surveyed the              on                      about whetherany of
                                             senators seated the 29~member committee
                                 their business receive federal dollars:

                                                        Appropriations Committee
                                          Of thel9 Senate                    members whose
                                                            to        for
                                          offices responded requests comment,out of 29 on the
                                          committee, Stevens oneof only two memberswho
                                          disclosed a              relationship between
                                                     direct business                   themselves or
                                          their spouses anentity that receives federalfunds and
                                          was theonly memberof the powerful committee who has such a
                                          relationship himself.

                                 Stevens is        trouble with federal investigators forallowing an oil
                                 services company overseethe renovationof his home in Alaska. Hewas
                                 quoted yesterday the Associated Press   saying theprobe "could cause me
                                 some trouble."

                                                            Ted Stevens
                                 PermalinkComments0! [TOPICS:

                                  l                                    1
                                      t                                     Investigation "Could
                                      L                                                                               FBI   Stevens 861
                                                                            Cause Me           Some
                                      i                                5
                                      v                                     Trouble"
                                                                                   McGann July 9,
                                                                            By Laura      -     2007, 3:45 PM
                                                                            Sen. TedStevens R-AK! told the
                                      r                                     Associated Pressthat the ongoing
                                                                            federal probeinto his dealings with oil
                                                                            services company  Veco could have
                                                                            rami cations at the polls:

                                                                            "The worst thing about this

 15 0f38                                                                                                                             8/3/2007 5 14 PM
      Stevens Ted
                                  tigation nge                      in
                                                              your life of
                                  0-&#39;!DCFlX¢<>m! employment potential,"Stevens
                       5en.Ted Stevens
                                                               said in an inten/iew with The
                                              "It           matter
                             Associated Press. doesn&#39;t whatanyonesays,it           does
                             shake youup. If this is still hanging arounda  year om
                            November,it could cause me       some trouble."

                       Stevens also               his                         Veco
                                   commented on homeremodeling projectoverseenby
                                      of interestto investigators:
                       that&#39;s reportedly

                               Tm working to get this conceptout of my mind thatsomeone is
                              trying to make somethingillegal out of all this, That&#39;s
                              really disturbing."

                       While Stevens was in Washington, Vecoexecutives madesure hishouse was
                       safely ratcheted the ground anda new rst story slipped in.

                                I                   Stevens :Veco
                       PermalinkComments 5!TOPlCS:Ted

                                                            Kenai River            Classic:
                                                            Where Politicians
                                                            And CEOs            G0
                                                            Laura McGann July 2007,PM
                                                            By                    3:23

                                                            This weekendthe annualKenai River
                                                            Classic broughttogether members of
                                                            Congress,like     Ted Stevens
                                                             R-AK!, and heads ofmajor defense
                                                                       help raise $1
                                                            companies to           million for
                                                            Alaska salmonhabitat preservation.

                                                            The 200 or soparticipants whoeach
                                                            contributed atleast $4,006!were
                                                            shown agood time. They shed the
                                                            Kenai River for giant king salmon
                                                            where ahospitality boat handedout
                                                            bloody matys and cigarsand they
                                                            wined anddined along the riverfront.
                                                            The AnchorageDaily News has two
                                                            great photosyou can see here.

                                                       The annualevent hasgone on for 14
                                                       years, drawingmajor corporationsas
                                                       donors, including Lockheed Martin,
                                       Raytheon, Boeingand theheavily-investigated BAE
                       Northrop Grumman,
i Systems.
                                           piped about theinvitational, saying it doesmore harm
                       But somelocals haveup
                       than good.This year,the KenaiArea Fisherman&#39;s took out an
                       opposition adin theprint edition of the local paperto complain about the
                                     and         caused
                                                      the       can the
                       environmentalcommunity damage by event. You see FBI                            - SijeVen5-862
                       print here The group, which includes 10 sh biologists, calls themessage of
                       the fundraiser disingenuous, arguing  that themoney endsup promoting
                       non~sustainable growth   along theriver, ultimately hurting the habitat. The
                       alliance isalso rallying against themurky politicking taking place.

                       "People getseduced were helping savethe river," said Ken Tarbox, who is a
                                               group. "LockheedMaitin doesn&#39;taboutthis river. A
                       member of&#39; sherman&#39;s                         care
                       lot of people inthe communityhere wouldnot supportthis if they knew what
                       was goingon."

                       Tarbox, andothers, havewhat
                                              said                    is
                                                      is really going on favor swapping.The ad
                       highlights whatStevens said the2002 River Classic, ascaptured bythe
                       Anchorage DailyNews:

   16 of 38 8/3/2007                                                                                                   5:14 PM
TPMmuclcraker                                                         tpmrnuckrak
                                                             http://w com/archive
               "We invitepeoplewethink canafford                      into
                                                  to put a contribution
                                said, "andpeopletheywantto meet."
               thetill, [Stevens]

        By we, Stevenslikely meanthis co-host
                                            Bob Penneyandhimself.Penney ais
        longtimecampaign  contributor            a
                                     who co-owns racehorse               and
                                                          with the senator
        hasbrought         in                         deal.
                   Stevens on at leastoneincredibleland Penneyalsotesti ed
        before grand jury aspartof theongoing andexpandingfederalprobeof Sen.
        Stevens Republican    statelawmakers.

        |       Comments ITOFICS: Stevens
        Permalink      8!       Ted

        Ted StevensHires Ollie North&#39;s
        ByLaura    -Juty2, 2007,
              McGann           6:16PM

        TakinghisleadfromOliver North, Sen.Ted StevensR-AK! has   Brendan
        V. Sullivan,                         and
                              mostexpensive mostpowerfullawyer,The

        The movemakes look like Stevens    taking         in
                                       isn&#39;t anychances the ongoing
              probeintohisdealings    oil
                                 with Alaska servicescompany Veco Corp.

                       to                                  including
        Sullivanis used goingto batfor heavyweightdefendants,       North,
             HUD Seeretarylienry
        fonner                       who         to
                              Cisneros, piedguilty a single
                 at            $9             four
        misdeamenor theend of a millionprobe,and                     involvedin
                                                            FBI agents
         1992 Ruby Ridge shootout.

        |       Comments |TOPlCS: Stevens
        Permalink      !        Ted

                                             Retired       Fisherman
                                             Spoke With FBI
                                             About Stevenses
                                             By Laura    -June25,2007,
                                                    McGann           6:17

                                             While formerstateSenate President
                                             Ben StevensR-AK! headed seafood
                                             grantboardthathis father,Sen.Ted
                                             Stevens         fundedwith millions
                                             in federaldollars,theyoungerStevens
                                             took in thousands dollarsin
                                             consulting from thevery
                                             companies won the allocations.   At
                                             leastsome thosefees,oneretired
                                             Alaska sherman saidunderoath,

                                       The sherman,   Victor Smith,spoke
                                       with theFBI in Seattlelastyear,just
                                       beforea grand jury in Alaskaissued  at
                                       leastthree sheries subpoenas. Smith
        saidtheagents               on
                          information how the Stevenses                 to
                                                        were connected the
         sheryscandal he andothers                and
                                   havecomplained writtenaboutfor years.
        "They             interested    toBen    andI
                                 inpayments Stevens anything   &#39;
                                                           had FBI Stevens 863
              to            Smithtoldme.
        related Ted Stevens,"

        In a signed                                         a
                  affidavit availablehere!, Smithrecounts meeting     between two
        af liated      associationswherethe headof onegroup elded a question
                       The                  to
        froma member. memberwanted knowhow Ben Stevens                 wouldbe paid
        $500,000nowthathis fatherhadgotten     $53 million for a projectthatwould
        bene ttheindustry.            to
                           According Smith&#39;s af davit:

               * The       fromZuanichwas I mcon dentthat,with a little
               convoluted            we                  to
                           accounting, cankeepthepayments Ben
               Stevens of PSVOA sbooks.

17                                                                                     5
                                                                                      8/312007   14 PM
    Stevens Ted
TPMmuckraker A1                                                                          http://wwwtpmrnuckra
                                 Since 2001, youngerStevens has       pulled in upwards of$775,435 in
                                 consulting fees,according totheducliomge Dni.{vNew.-r.   Though, theAlaska
                                 Public OfficesCommission recently ned Stevens$5,630 for failing to  disclose
                                 $480,000 inpayments he  received fromvarious companies.    The complaint
                                 against Stevens was led by former Alaska state   representative RayMetcalfe
                                 who hasfollowed Stevensrelationship with the sheries for years.Metcalfe
                                 estimates thatStevens has      at                     in
                                                          beenpaid least $904,000 feesby sheries
                                 between and
                                         2000                    affidavit
                                                   2005. Smith&#39;s was included in the complaint.

                                           already roped
                                 Stevens was           into the ongoing federalinvestigation inAlaska
                                 when anexecutive at servicescompany VecoCorp. piedguilty in May to
                                           with $240,000. father also
                                 bribing him            His       is                  for
                                                                     under investigation his
                                             Veco as
                                 dealings with                   for    his
                                                   well, including having home               the
                                                                               remodeled under
                                 company&#39;s oversight.
                                                 2!        Ted Stevens
                                 Permallnk Comments [TOPlCS&#39;

                                                                           More Reasons            For A
                                                                       Far Away
                                  ; ,1,                               5
                                                                           Investigation 2007, 2:09
                                                                       By Laura     -June 26,

                                  t We                                        noted lastweek thataWashington,
                                 J,                                              jury          one
                                                                           DC grand --rather than in
                                  t                                                 investigating Sen.
                                                                        Anchorage - is              Ted
                                                                               R-AK! shiftyinvolvement
                                                                       ~ Stevens
                                                                           with oil services companyVeco Corp.
                                                                           Today the/inchorage Daily News
                                                                           offers morefodder for why federal
                                                                                                    set up shop
                                                                           investigators wouldwant to
                                                                           so far from home.

                                                                       The story is aboutthe headache
                                                                       prosecutors are  nursing in selectinga
                                                                       jury for the trial of former state Rep.
                                 Tom Andseron R-AK!. Anderson is charged      with taking $24,000 in bribes
                                 from acompany hoping to build a  number of private prisons in Alaska. Though
                                 the case not directly tied to theVeco scandal,Anderson wasa     Veco
                                            while office.
                                 consultant in

                                 Prosecutors are hitting two problems with potential jurorsthat cut in opposite
                                                 apparent lowregard for local politicians and theinevitable ties
                                 directions: their
                                 within a small community.Here&#39;stwo rejectedjury candidateshad to say
                                 about Anderson:

                                         "1 ve alreadymade upmy mind," Donald Bums of Soldotna told
                                         aU.S. District Court judgeon Monday.Burns, wearinga
                                         T-shirt anda           said
                                                     baseball cap,     listens to talk radio, watches
                                         TV news and reads                   "l
                                                            two newspapers. hope they hanghim, he

                                                                                                                   FBI   Ste-vens 864
                                         When longtimeAnchorage resident Hannah Davisheard about
                                         the charges      Anderson, herreaction was,"Oh no, not
                                                     she toldthe judge.Too o en, people in power,
                                         another one,"
                                         from Anchorageto Washington,D.C., usetheir positionsfor
                                                      she said.
                                         personal gain,

                                                                   juror said she hadgone on a
                                 As for community ties,one potential                          date with
                                 Anderson and                                    of
                                             said shefound the accusations "kind unbelievable."

                                 How a potential jurywould receiveStevens ifhe wereever ontrial is hard to
                                            has       in
                                 say. Stevens been of ce since 1968and is an Alaskaicon, bringing his

18 of 38 8/3/2007                                                                                                                       5 14 PM

      Ha. ......._.._.____,___   .,,_._.__.._,___,_._i,¢__,é_,;,,,_ ,,__       _
                                                                              ..._.                 Hg
             . Archives
TPl92/Imuckraker: Tedtpmmuckraker com/archives/

               state millionsin federaldollars. His re-election campaignhas alreadyraked in
               $1 million and noviable competitorhas stepped to the plate.But some in the
               state have called himless popularand morevulnerablethan in past elections.
               However a                                   that
                           jury might cut for Stevens, it&#39;s a
                                                          clear     prosecutor won&#39;t12 nd
               Alaskans who&#39;ve heard him. of

                       |                             :Veco
               PemtalinkComments2! ITOPICS:Ted Stevens

                                                          Fisheries Netted
                                                          In Federal          Alaska
                                                                 McGann June 22,
                                                          By Laura      -      2007,

                                                          Sen. TedStevens R-AK! had his
                                                          son, formerstate Senate  President
                                                          Ben Stevens,  heada  board that
                                                          distributed $12         in federal
                                                          grants topromote seafood
                                                          companies that, the same time,
                                                          paid the younger Stevens   upward
                                                          of $775,000 "consulting fees."

                                                          This arrangementhas caughtthe
                                                                        Last fall, least
                                                          FBI&#39;s attention.at
                       gate    three
                Aiaska §é6_B~enRSwvens                                    issued
                                                                 Sl16X l¬S were grand
                                        Jury                  subpoenas tohand over
                                                         documents related the lobbying
               and consulting                                     and former aide to Sen.
                              work provided by the younger Stevens a
               Stevens, Trevor McCabe. Thesubpoenas also  sought anydocuments connected
                                   Two of the companies based Seattle, and anotheris
               to the older Stevens.                    are      in
               in Juneau.

               Since 2001,                                                      of
                           companies inthe industryhave paidStevens upwards $775,435
               in "consulting fees," theAnchorage Daily News hasreported, forwork that
               Stevens has never publicly explained. Others have saidStevens has pulled in
               even morefees. The   Alaska Public Offices Commissionrecently ned Stevens
               $5,630 forfailing to disclose $480,000payments he receivedfrom various
               companies. The   complaint pdf! against Stevens was led by former Alaska
               state representative Metcalfewho hasfollowed Stevens relationship with
               the sheriesfor years.Metcalfe estimates   that Stevens        paid least
                                                                     has beenat
               $904,000 infees by sheries between2000 and      2005.

               Stevens anangement the seafood industryis strikingly similar to his setup
                with the oil servicescompany, Veco.Former chiefexecutive ofVeco plcd guilty
               just a                 to
                     few weeks ago bribery charges, includingpaying Stevens$240,000 in
                                   as for
                "consulting fees" abribe favorable legislation.The mediafocus on the
               probe inAlaska has farbeen onVeco, but it looks like there is plenty of
                 shery work for the grand jury to investigate.

                                 4!       Ted Stevens Veco
               Permalink lcomments |TOPICS:         :

                                                     Stevens Friend               That
                                                     Testi ed Is          Also FBI              -Stevens-865
                                                     Business Partner
                                                            McGannJune 21,2007,
                                                     By Laura    -            6:17

                                                      Anchorage realestate developer   Bob
                                                      Penney, whotestified beforea   grand
                                                     jury about the bribery scandal in
                                                      Alaska, is good to his friend Sen. Ted
                                                      Stevens R-AK!.

                                                     So goodthat hebrought Stevensin on a
                                                               deal thatfetched thesenior
                                                     real estate

l9 of38                                                                                                  8/3/2007 5 14 PM
        Ted Archrves
                &#39;                                                               com/archives
                                                                            h p://wxxtpmmuclqake
                      s                                     estmentin just ve years.The
                                                             investment,reportedby The Anchorage
                                                             Daily News in 2004, shedssomelight
                                                             on the         ties betweenthe two
                                                              via Nexis!:

                               Penneysaidhe and his businesspartnersinvited Stevensto join
                               themin "appreciationfor       done
                                                         he&#39;sfor Alaska and the
                               country. We respecthim      very much.

                      The groupof investorspurchaseda 96-acreplot 30  miles outside of Salt Lake
                                                               sell off individual piecesover the
                      City, Utah in a.growing areawith a plan to
                      courseoften years.Stevens $15,000              to at least$100,000 and
                      possibly asmuch as$250,000.

                      The real estate             only
                                     deal is not the     nancial endeavorbetweenthe two. Penney
                      is alsopan of a group of investorscalled Alaska&#39;s Eagle a nod to Stevens
                      daysasa pilot inWWII! who bought a    race horsewith the senatorand former
                      chief executiveof eco, Bill Alien.

                      While Veco oversawthe renovation of Stevens Girdwood, Alaska home, the
                      horse&#39;s Bob Personscheckedin on the remodeling project while
                      Stevens    in Washington.

                               Persons  was orderedby the Washingtongrandjury to produce
                               documents                    eight
                                           going back more than     years,including all
                               letters,e-mailsand other documentsinvolving Ted, his wife,
                               Catherine, Ben Stevens.Speci cally mentionedwere records
                               abouta racehorsepartnership,Alaska&#39;s Eagle, he
                               manages Ted Stevens,Allen, Allen&#39;sson Mark, Penneyand

                      So far, the main focus of the Stevensinvestigationhas focusedon the Veco
                                                  Ted :
                      PermallnkComments2! | TOPICS: Stevens Veco

                                                      Veco Gives, But What
                                                      Does It Receive?
                                                       Laura McGann
                                                       By                      7:04PM
                                                                  -June 19,2007,

                                                     Over the courseof the federalprobe in
                                                     Alaska, it&#39;s clear that oil services
                                                     companyVeco dabbled in shady dealings--
                                                     someconnectedto Sen.Ted Stevens R-AK!
                                                     and his son Ben, a former statesenator.Two
                                                                            pied guilty to bribing
                                                     top executives,who&#39;ve
                                  .state                   lawmakers,have also played general
                                                     contractorfor Sen. Stevensand doled out
                      $240,000in "consulting" feesto his son.Veco hascontributed more than
                      $70,000to Stevenscampaignsover the years making the companyhis second
                           donor!, $25,000 tohis
                      largest and                   action
                                        more political committee.                                    &#39;
                                                                                                     FBI Stevens 866
                      But what has Veco fetchedin return?

                      As easyas it hasbeento documentAlaska lawmakerswho&#39;ve fed their
                                                                                 lessobvious how
                      campaignfunds and lined their pocketswith Veco money, it&#39;s
                                                                       a glimpse at what Sen.
                      the companyhas directly bene ted in return. Here&#39;s
                      Stevens donedirectly for the company.Back in 2003 TheLos Angeles
                      Timesran a story about family ties amongstlawmakersand corporations via

                               VECO had helpedbuild a$70-million pipeline for Pakistan,but
                               the governmentwas slow to pay.  it happened,Pakistan

    20 of                                                                                                                   PM
                                                                                                                8/3/2007 5 14

_   T7       7_   7       ___-;- _                                                                 __
                                                                                                 ____       7      _7
TPMmucltraker:                                               http://www.tpmmuck
                 desperatelyneeded             help                and
                                  congressional on a tradeissue, Ted
                 Stevens positionedblock the necessary
                         was            to                legislation.
                 Beforelong, Pakistan&#39;s         in
                                       representatives Washington
                           that     bill
                 concluded theirtrade       wouldgo nowhere  untilPakistan
                        with      anditspartners.Pakistanagreedto
                 arbitration. bill sailedthrough.

          Otherclearcutexamples        so easy
                                 aren&#39;t to comeby, but generally speaking  Veco
          hasdone     for itselfsecuringfederalcontracts.company
                                                        The         haswon
          NationalScienceFoundation  contractstwice.One contractfrom2005 was
          worth     milliontoprovide"  Arcticresearch        and
                                                     support logistics          in
          Alaska,Greenland, North Pole,Canada,    Russia  andotherArcticlocations."
          The companyalso disclosed
                      has               otherlucrative-looking        thoughthe
          exactvalues unknown.

                    is: many
          Thequestion I-low        of those
                                          contracts     the hand
                                                 received helping              of Sen.

          Pennalink       |4!     Ted     :
                  1Comments TOPICS: Stevens Veco

                                             AP: FBI Questions
                                             Former        Stevens
                                                              2007, 5:12PM

                                             And thefederalinvestigation Sen.
                                             Ted StevensR»AK! continues gain

                                              FormerCapitolHill aidesto
                                              Sen.Ted Stevens being
                                              questioned the FBI aspart
                                              of an investigation the

                                               A lawyerclose the case,
                                               speaking condition    of
                                               anonymity because  the
                                                           is under
                                               investigation still      way,
                                               con rmed FBI hadrecently
                 aides     Bill Allen, a contractor
                                                  who haspleaded   guiltyto

                  I Comments | TOPICS: Stevens
          Permallnk        !         Ted

                                              Ted Stevens           Friend
                                              Testified      Before
                                              Grand                                   FBI   Stevens 867
                                                    McGannJune 2007, 1:59
                                              ByLaura-        19,

                                              If you&#39;re lookingto help
                                                      a CEO
                                              preserve sh habitats catch a
                                                                 and       60
                                              poundsalmon oneweekend,     Bob
                                              Penneyis your man.

                                              He is alsoold friendswith Sen.Ted
                                              StevensR-AK!. TheAncIzorage     Daily
                                              Newsreportedthisweekend     that
                                              Penney  testifiedbeforea grandjury in
                                              Alaskaa few         agoaspart of the
                                              ongoing  federalinquiryintoconuption

21 of38                                                                                              8/3/2007 5:14 PM
    Stevens Archives
TPMmucl<ralcer: Ted
  ,       r

                                                          Penney isaesh face in the probe
                                    ~       -
                                            V    -
                                                 ~        has grabbed              had already
                                                                        Stevens, and
                                                                                    Ben Stevens;
                                                          touched thesenator&#39;s son,
                    several otherlawmakers;                                         at
                                                 and two top oil services executives Veco,both
                    of whom have pledguilty to federal C !lTl.lplI l0[1

                                                     is for
                    The longtimeAlaskan entrepreneur known founding the Ted Stevens
                    Kenai River Classic overten yearsago to help protectthe sports- shing river
                    that ishome toawild salmon run.The weekendevent now draws politicians
                               as                                     like
                    from asfar away Washington andexecutives fromdonors           Veco,
                    Lockheed Martin,Boeing andShell.

                    Here isa description the 2002 toumamentfrom theinchorage Daily News
                    via Nexis!:

                           Ashore, peopleowed around Bob Penney&#39;sbig riverfront
                           house Monday                   for    expanse
                                         evening, headed the broad             of paved
                           driveway thatruns      to it. There, anking asound system,
                           stood couple ofhefty trophiestopped with berglass king
                           salmon. The                    of         Kenai
                                      opening ceremony the ninth annual            River
                           Classic wasabout tooccur.

                           In the river of people wereUnited Statessenators, the  secretary
                           of labor, the govemor,most of the hierarchyof the Department
                                        a                                  the
                           of Fish andGame, couple of state legislators, mayorof
                           Anchorage, thepresident the Kenai PeninsulaBorough
                           Assembly, the   president ofthe University of Alaska, a
                           so -spoken formerastronaut,a   retired famous college
                                              a                 a
                           basketball coach, few entertainers, writer with a new book
                                     and        from many
                           about Alaska executives many,                    companies.
                           They constituted, theydo everyyear, thegreatest
                                          political and economic powerin Alaska.
                           concentration of

                    Though officially meant toraise moneyto preservethe river,           breaks
                    down whatthe eventis really meant todo:

                           "We invite people wethink can afford to put a contribution into
                           the till,"        "and
                                            said,     they
                                                      people       want to meet."

                                         his audience had
                           Many of thosein                  paid $6,000for themselves
                           and aguest toattend. Alongwith corporatesponsorships --the
                           openingdinner             Alaska Communications System
                                             put on by
                           and Veeo-- and the proceeds from an auction, thefees meant
                           the tournament            million, as lastyear&#39;s did.
                                         could gross$1

                    Penney declined tell the/inchorage Daily Ncwswhat he        his
                                                                          said in
                                      has no obvious ties to Stevens infamous
                    testimony. Sofar he                                      home remodeling
                    project,which     caught theFBl&#39;s eye.
                                                                                                   FBI   Stevens 868
                             l         |      Ted Stevens
                    PormalinkComments 7!TOPICS:         :Veco

                               ."               92.. ; _          2nd Strain     of Probe
                             . &#39;,g          »V-. .,
                            ee -5
                               ,.92              A            .   Proceeds Far      from
                               __.."-~ -_             »
                                    sr ,        ,,        .       Stevens Sway
                                    5 *~                              Kiel 19, 12:29
                                                                  By Paul June 2007,
                           P            J         t                            Daily
                                                                  As theAnclzorag.e News
                            K,          ,-                 reported yesterday, grand
                                                           &#39;           afederal
                             ,p                  Stevens
                                                                               Sen. Ted
                                                                       has investigating
                                                                  jurybeento the
                                                                      R~AK! ties
                           M     p____oil company,
                                            Veco. Both
                     i_ __W_7__ &#39;5; Alaskan the

22 of 38 8/3/2007                                                                                                      5:14 PM
               Stevens Archives
TPMmuckraker Ted                                                                   http://www.tpmmuckraker.com/archives/cats/ted__stcvcns/

                          t led                                    guilty to corruption charges.

                                                                 But just as surprisingas thefact of the
                                                                 investigation is the locationof it: far
                                                                 away from Alaska, in Washington,

                                                             The heavylifting in the probeso farhas
                                                              been doneby a grand jury in
                                           That investigationhas resulted a
                          Anchorage, Alaska.                             in number of guilty pleas
                                      and indictments statelawmakers.
                          by executives             of

                          But theexistence of second   grand jury raises thequestion of why
                          prosecutors split investigation.ADNwent to the expertsand cameup with a
                          number oftheories:

                                  Legal experts corruption cases said   that while it s unusualfor
                                  prosecutors to use grand                                in
                                                          juries in separate jurisdictions an
                                  investigation, theymay havesound reasons.   The expertsalso
                                  cautioned that                              be
                                                 even thoughprosecutors may presenting
                                  evidence togrand jury, that doesn&#39;t crimes have
                                              a                                            been

                                  Paul Butler,a law professor atGeorge Washington University
                                  and aformer federalattomey whoprosecuteda U.S.           and
                                  several FBIagents, said could simply be amatter of
                                  convenience for witnesses.

                                  Jules Epstein,law professor atthe WidenerUniversity School
                                  of Law in Wilmington, Del., anda criminal defense lawyer,
                                  said thegrand juriescould be investigating separate,

                                  Peter I-Ienning, law professor atWayne StateUniversity in
                                  Detroit, saidprosecutors mightbring acase against apopular
                                  elected officialin Washingtonto avoid      "home-courted."

                          Given thatwitnesses in probehave been ying out from Alaska to testiiy, I
                                   fair to
                          think it&#39;s discount the"convenience" explanation.

                          But thatprosecutors might have chosen       the venue tomake theircase
                                                                D.C. as
                                          =~ perhaps hisson, Ben,a former state senator,been
                          against Stevens and                                             who&#39;s
                          implicated incharging documents makesa                              simply
                                                                     whole lot of sense. There&#39;s
                          not amore powerful gure in Alaska or perhaps inthe history of Alaskan
                                                     who&#39;s servedSenate since
                          politics! than Sen. Stevens,           in the             1968, andwho
                          even, back                 a
                                      in-1958, playedrole in shepherdingAlaska to statehood while
                          working at the InteriorDepartment.

                                    their case D.C.,
                          By bringing        in                     the   of     their case
                                                   prosecutors avoided task making
                                                     the         of
                          in Stevensbackyard, where vestiges his power areeverywhere. Asthe
                                       from the state, Stevens traditionally even been
                          senior senator                      has                      responsible for
                                           for           attorney
                          tapping candidates the local U.S.          spot - though theJustice
                          Department notablyovcrrulcd senator     when appointingareplacement last
                          September.                                                                  FBI   Stevens 869
                                         avoid havingto convince a
                          Prosecutors also                           jury full of Alaskans whogrew up
                          surrounded bylandmarks named     after Stevens,                  for bringing
                                                                         who&#39;s responsible
                          back tens billions of dollars to the state overthe pastforty years.

                          One of the lawyersinvolved in the case                            what
                                                                certainly thoughtthat&#39;sprosecutors
                          are upto:

                                  Penney&#39;s attomey,Gagnon,said of [Alaska businessman
                                  Bob] Penney s                 the
                                               appearance before grand  jury: "I think you
                                                   what they&#39;re interested
                                  know aswell as I do                    in." Asked whether
                                  that wasTed Stevens and BenStevens, Gagnon  said, "Yeah,

                                                                                                                     8/3/2007 5 14 PM
TPMmuckraker:                                               http://wvatpmmuckra

                "And           going
                          arethey                       D.C., aswell as
                                       off in Washington,
                here?"Gagnon           out
                               wondered loud. "It may well he because they
                wantto try thiscasebackthere."

                  | Comments TOPICS: Stevens
          Permaltnk                Ted

                                       Paper: Grand
                                       Examines         Stevens       Ties
                                       to Oil
                                                        18, 9:35
                                       By PaulKiel- June 2007,     AM

                                       From the/lnchamgeDaily News:

                                       A federal
                                               grand      in Washington,
                                     D.C.,             last
                                               evidence month                                                  1
                      e                               of
                                     abouttheexpansion U.S. Sen.Ted
                                     StevensGirdwoodhomein 2000 and
                other matters        Stevens theoil services
                            connecting      to              company

                The existence theWashingtonjury
                             of                grand                 is
                                                        investigation the
                strongest          to
                         indication datethatStevens  himselfhasbecome   a
                subject thewide-ranging   federalprobethatsurfaced with
                FBI raidson statelegislative ceslastAugust.Fonner
                                 Ted                        the
                Sen.BenStevens, Stevensson,wasamong legislators
                whose officesweresearched. Stevens denied
                                            Ben        has

          Earlierthismonth,Sen.Stevens            the
                                      adnrittedthat FBI hasaskedhim to
          preserve       relevant histiesto Veco.
                   records      to

          *i°fi i&#39;li E.!£°L IZ E" ,"iT?F"T °° p°"°"=
                          ""*,l_T9"L i $     _ps
                                       Stevens       Asks For
                                       Extension         To File
                                       Financial        Disclosure
                                              MeGannJune 2007, AM
                                       By Laura-        15,  10:48

                                        Sen.Ted Stevens followingin the footsteps
                                        of Rep. JohnT. Doolittle R-CA! andSen.
                                        RobertMenendez D-NJ!, who are both under
                                                by                     a
                                        federalinvestigation, askingfor review
                                        of his nancialrecords from lastyear,
          allowinghim to putoff ling hisof cial disclosureforms.

          The formsweredueto the Senate     by
                                      EthicsCommittee May 15,but Stevens            _   _
            not . The
          were themIVashington
                            McClatchytheFBI Stevens
                                report           870
          request a reviewcould
                for                                is
                                   a signthatStevens in troublewith the law. From

                        of                                 are
                Ethicsreviews lawmakers nancialreports unusual
                unless theyareundera legalcloud.A source  closeto Stevens
                officesaidhe hasrequested such reviewsbefore,although this
                                            the       release.
                is the rsttime it hasdelayed report&#39;s

                        admittedthat FBI hasasked
                                   the           him to holdon to
                  they    to
          documents maywant reviewaspartof itsongoing  probeinto a
                 scandal state. son,
          corruption inthe           Alaska Senate
                             His former   State President

24 of38                                                                                     8/3/2007 5:14 PM

                     iiiiiiiiiiiiiiiiiiiiiiiiiii A
                    _,                                         _        S,
     Stevens Archives http://wwatpmmuckra
TPMrnuckraker: Ted
          Ben Stevens            been snared the investigation. Thehead ofa
                       has already           by                               local
          oil servicescompany, Veco Corp., pledguilty to conspiracy andbribery charges,
                                        in                 in
          implicating theyounger Stevens receiving some$240,000 illegitimate

                       Post pointsout who else has
          The Washington                          asked fora ling extension:

                 Nearly 80                                 for nancial
                          lawmakers received extensions their
                              which required by
                 disclosures,are                  federal law. Knowingly
                  ling false disclosure formsis a                         have
                                                 federal crime. Prosecutors
                                  apparent violations
                 aggressively pursued               recent corruption
                 investigations onCapitol Hill, including thoseof former
                               "Duke" Cunningham
                 congressmen Randy                         Robert
                                               R-Calif.! and
                 W. Ney R-Qhio!, both of whom are nowin prison.

                 Other lawmakers who havefaced nancial scrutiny and
                                   include Sen.Robert Menendez D-N.J.!,
                 received extensions
                 who under federal  investigation for renting propertyto a
                                    while also
                 nonpro t organization                 federal grants
                                             pushing for           for
                 the nonpro t, and Rep.John T. Doolittle R-Calif.!, who is
                                    for               doing
                 under investigation his wife&#39;s unspeci ed         work
                 for imprisonedlobbyist JackAbramoff while her husband
                 performed legislativefavors for him.

          PermalinkComments! I TOPICS: Ted

                                          Ted Stevens            Admits
                                          Involvement              FBI
                                                          - June
                                          By.Laura MoGann 7, 2007,AM     11:24    Sen.
                                          Ted Stevens R-AK! has admitted heis
                                          involved inthe FBI s probe into Alaska
                                          lawmakers dealings   with oil services
                                          company VecoCorp. In  an interview with the
                                           Waslzingron Post,tight~lipped Stevens said
                       ,.                     getting ready tohand overdocuments to
                                          he is

                  "They putme on notice to preserve some    records," Stevenssaid
                  in a brief                                discussions withthe
                                      about hislegal team&#39;s
                  FBI. He declined tosay whatkinds of records were    involved
               i but con nned that he hadhired lawyersand thathis son,former
                  state Senate  president BenStevens, "isalso under

           no              the         Stevens
          It s surprise that FBI has asked         for recordsnow that his home
          remodeiing joboverseen Veco has caught                 But
                                                  investigators eye.     this does
          appear to Stevens rst of cial public commentabout thefederal probe.
          Stevens acknowledgment his son in under investigationfirms up what the
                     together in
          press pieced                   Alaska Senate
                               May. Former           President BenStevens
                      by press as
          was identi ed the                  B          in          of
                                  state senator described theguiltypleas
                 Veco   The Veco
                               executives admitted
          two former executives.                Stevens FBI
                                          to giving     &#39; Ste /en5&#39;871
          about$240,000 consulting fees that requiredno work in exchangefor
                                     the               t
          political favors.Stevens was only lawmaker to the description.Permalinu
                         I       Ted
          Comments 0! TOPICS: Stevens    :Veoo VT

            Alaska Lawmakers: Kohring, Get Out
          By Laura               5,
                  McGann -June zour,   11:51 AM Alaska statelawmakers havehad it
          with one of their own. Two Republican leadersthe Alaska legislature
          con onted Rep.Vic Kohring R-AK! in his home to pushhim to resign instead
                    them allKohring
          of dragging      down.        has been          part
                                                indicted as ofthe wide
          federal probe Alaska                  with                 Veco
                              politicians dealings oil services company
          Corp. TheAnchorage Daily News reports:

25 of38                                                                                   8/3/2007 5 14 PM

                            _:t_.A.                               .
                                                                 __._                                    _
     Stevens Ted
           . Archives
                  Prosecutors have  accused Kohring,a Republican, of selling his
                  vote onthe state petroleum taxlast yearto the Anchorage oil
                   eld servicescompany VecoCorp. Kohring and two former
                                 under indictmenthave pleaded guilty. Veco
                  legislators also                              not
                  executives BillAllen and Rick Smith          guilty to
                  conspiracy, bribery and taxcharges. Allenand Smithhave since
                  resigned from  Veco.

           The probe brushed Sen.                             house
                                       Ted Stevens R-AK!, whose           got a makeover
           seven years underVeco&#39;s direction.               son, formerAlaska Senate
                                                   The senator&#39;s
           President BenStevens, has  also beentied to the investigationby local press
           who concluded wasone of the lawmakersto takecash fromVeco executives
           who recentlypled guilty to federal bribery and conspiracy chargessermalink I
           Comments !  |TOPlCS: Ted            :
                                     Stevens Veco

                                           Stevens Contractor
                                           Hires a Lawyer, Opts To
                                           Keep Quiet
                                            By Laura                4, 9:39
                                                      McGann -June 2007,       AM An
                                            Almka contractor,Augie Paone, painted
                                            most of the picturewe haveof how a   major
                                            state oil services company  oversaw the
                                            renovation of Sen. TedStevens R-AK!
                                            house. Aftergiving a  few interviews last
                         ..                 week, Paone    has hiredalawyer and will no
                                            longer commentpublicly. I spoke with
           Paone s wife thephone yesterday      who said the family would not release the
           |awyer s name.  The lawyer has advised them to                  It&#39;s bad
                                                          stay quiet, shesaid.     too
           the Paones theneed tolawyer up, though it s probably not that   surprising.  In
           an interviewwith the Arrclromge Daily News, Paone     said hewas
            uncomf&#39;ortable" with the renovation contractinitially becausehe hadnot
           provided anestimate toVeco Corp.,the companythat   handled     the job for
           Stevens while senator     was in Washington:

                          suspect anything, I just wanted to makesure," he
                  "I didn&#39;t           but
                  said. "Whenyou       with ahouse of alegislator or asenator,
                  you makesure youhold on all the billings, just in case
                  something happens."

           That wasa goodmove. Thejob has piqued federalinvestigators interest part
           of abroad investigation intopublic corruption in Alaska. Six months ago the
           FBI askedPaone forrecords andinvoices from the job. He alsotesti ed before
           a grandPaone
                   jury.       he
                              said had donework for Veco Corp. s offices andfor a
                         before they
           company executive                  the  on      home seven
                                   offered hinl work Stevens
           years ago. charged                 but
                                 normal rates, saw the job as afavor - afavor he
           couldn t declineto offer- rather thanatypical contract:

                   Bill Allen Veco CEO! and someof the Veco boys,some of
                  the Vecoguys, werethe onesthat approached andwanted to
                  know if I could give them a hand,"Paone said.I did it more as
                  a             It&#39;sthose
                   favor,you know.                  somebody
                                     of onethings when     FBI
                                                          is                                 _SteVenS_872
                  the head,and packs                       for
                                    that muchpower andasksyou           afavor,
                          of hard
                  it&#39;s kind to say no."

                                                           last month in a
           Allen pled guilty to bribing ve state legislators              classic
           cash~for-votes scheme. of the charges      stems froma meet-up between State
           Rep. Pete Kort in ahotel suite whereKott complainedabout having to cheat,
                     borrow andlie, to ensure government-backing a
           steal, beg,                                               of pipeline valuable
           to Veco.In response the legislator s complaints,   Allen said: I own your ass.
           Sounds likeAllen would take ano thank you well. Permalintq      Comments 8!|
           TOPICS: Ted StevensVeco

                                           Veco s Adventures                  in

                                                                                                      8/3/2007 5:14 PM
                                                                                                 -           &#39;_      A:
       Stevens Archives
              . Ted
                                                               By Laura         - May31, 2007,6:18 PMAs
                                                               we reported a couple of days ago, thefederal
                                                               investigation into abribery scheme centering
                                                               on one of Alaska&#39;s oil scnrices
                                                               companies has            with
                                                                              crossedpaths       Senator
                                                               Ted Stevens R-AK!. And Stevens problems
                                                               seem tocome downto somehighly creative
                                            &#39;                                      to
                                                                        Stevens used remodelhis Alaska
                              home. According contractorAugie Paone, it all started whena groupof
                              unnamed "friends" togetherto renovatethe senator&#39;s a  as
                                                                                        house weekend
                              project. Thegroup of friends ended being unableto pull it off But in the
                              group s defense, job was prettyambitious. Theplan wasto ratchetthe
                              one-story house is foundation, build a new rst floor and thenplace theold
                               rst oor on top of the new rst        Unfortunately for the do-it-yourselfers,
                              they raninto afew problems. That swhen thelocalcontractor,     Paone, came  into
                              the picture.Paone has provided mostof the sordid detailsin this story, since
                               of          players
                              none the other           are talking.According to Paone, itwasn t Stevens  who
                                       out                          but               Corp. It&#39;s
                              sought him to x the mangled construction, oilcompany Veco
                              not clearhow involved Veco hadbeen in the do-it-yourselfphase ofthe
                              remodeling. ButPaone says Veco wasin chargewhen he   came on board.Veco
                              hired Paone and andcollected andreviewed the$100,000 worth of invoices he
                              submitted as projectprogressed. Paone    would then receive payments    signed
                              by Stevens checkswhich accordingto Faoneappeared to      come from a   special
                              account created the renovation. Paone   says hedidn t know Stevens before
                              working on the house and dealtwith Veco during the project. He told a local
                                                he                                   any ags.
                              television station doesn tthink the arrangement raises red

                                       "The senator                know
                                                     doesn&#39;t me, sosome ofthe peopleIhad
                                       contacts withwere morefamiliar with the senator, theykind
                                       of took over his interests andthey kind of oven/iewed the
                                       billings. After they sawthem, it was justfaxed overto the
                                                    the        a
                                       senator and senator few days   laterjust    mailed me a
                                       check," Paone    said.

                              I-lere s the                             oil
                                          straightforward arrangement: company decides toremodel
                              senator&#39;s oil company nds contractor, contractor creates     new rst oor
                              in senator&#39;s contractor                  to
                                                             sends invoices oil company, oil company
                              reviews bills,oil company faxesbills senior senator,    senior senatorcash
                              from a special account upspeci cally for the constructionand pays
                              contractor, senior senator never speaks tocontractor. Thearrangement looks
                              fairly questionableits face. And it looks even morequestionable when
                                                    on                                                   you
                              take Veco&#39;srecordinto account.The personfrom Veco who hired Paone
                              was VecoCEO Bill Allen. Allen happens to     have justpied guilty this month to
                              federal conspiracy briberycharges for giving things of value to local
                              lawmakers. ina courtdocument accompanying guilty plea, theAnchorage
                              Daily Newsnoticed a    seemingly irrelevant descriptionof what the companydid
                              not do while hewas in charge: "Vecowas not in the business ofresidential
                              construction or                                          to
                                               remodeling." Sofar Stevenshas refused explain the
                              arrangement. But haspiqued theFBI s interestand investigatorsare looking
                              into it. Paone says FBI interviewed him about six months agoand thathe
                              testi cd before a grand      in December.In responseto questionsabout the
                              remodeling, Stevens                    me statement saying senator isnot
                                                      spokesman sent a               the
                              <:0mmenting.PermaIink    |Comments8! |TOPICS:   Ted Stevens :Veco               FBI -Stevens 873
                                                            &#39;        "                                                                 l
                               Sen. Stevens          Denies Sear             ch of   Home and
                               Of ce
                              By LauraMcGann             4:15 PMWhat did the FBI search inthe tiny
                                            -May 31, 2007,
                                                                The mystery continues.
                              Alaska townof Girdwood last summer?

   27 of 38 3/3/2007                                                                                                             5 14 PM
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TPl92/lmuckraker: TedStevens Archives
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                                   A spokesman Sen.Ted Stevens R-AK! told me todayit wasn t his boss
                                   home orof cc -- two favoredguesses. Stevens beenhas tightlipped      the FBI s
                                   broad probe                                                        and
                                                 into oil company VecoCorp. s dealingswith Alaska state
                                   federal lawmakers. today his of ce opened upslightly. Stevens spokesman
                                   Aaron Saunders                                   or
                                                     denied araid of Stevens home of ce and sentme a copy of
                                   this local television storywith the following portions underlined:

                                               The FBI will not comment onwhether Sen.Stevens isbeing
                                               investigated. Butwhen theagency served              on
                                                                                     search warrants
                                                                 of ce
                                               lawmaker&#39;s last August,one searchwas
                                                                                     warrant    servedin
                                                                              the senator&#39;sor of ce,
                                               Girdwood. Agentssaid it wasn&#39;t at      home
                                               but theywon&#39;t say

                                              much      in                    Permallnkl Comments |
                                   &#39;I here s notelse Girdwood. Any guesses?                2!
                                   TOPICS: TodStevens: Veco

                                                                           Stevens Not A Target,
                                                                           Investigation Still a
                                                                   By Laura          -May 30, 2007,PM
                                                                   Yesterday wetalked abouthow Sen.Ted
                                                                   Stevens R-AK! home improvementproject
                                                                   has piquedthe interestof federal
                                                                   investigators. Alocal oil company s
                                                                   involvement in hiring one of the contractors
                                                                   who built the new level Stevens
                                                                   single-story home-- undemeaththe existing
                                   ground oor - seems to thequestionable part.      The92ssociated Press
                                   followed up today the storyby adding that two sources close theto
                                   investigation saidStevens wasnot considered target of the investigation.
                                              comfort Stevens.
                                   That won&#39;t Sen.                                                 not a
                                                                    The care illy-crafted language "I&#39;m
28                                 target" hasbeen peddledother politicians tied investigations, likeformer
                                                           by                   to                                              8/3/2007 5 14 PM
                                   Sen. Conrad Burns R-MT! and Rep.John Doolittle R-CA!. The phrase
                                   makes the politician soundpractically exhonerated, when really, prosecutors FBI -Stevens 874
                                   tend towait to send outatarget letter until shortly beforean indictment is
           . Ted
                 ther1 Senate President Stevens,     one of Ted Stevenssons.
                 The FBI said atthe time that also hadexecuteda    search
                 warrant inGirdwood, amongother places,     although thelocation
                                  never been
                 of that search has          officially disclosed.

                hasn t said
          The FBI                          the                   isn
                         what itsearched, but listof possibilities t verylong.
          Take a  look at amap of Girdwood, population 2,000:
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          PermaiinkComments7! I TOPICS: Ted   Stevens :Veco                                                                 i
          A                                                    Makeover:
                                            Veco Edition
                                            By Laura                         PM
                                                              -May 29,2007,12:24 Sen.
                                            Ted Stevens R-AK! jacked his houseoff the
                                            ground, inserteda  new rst story and placed
                                            the old rst floor     top, thanksto the help of
                                            a top executive atlocal company Veco
                                            Corp. who hired at least onekey contractorto
                                            complete thefeat of a  job. Veco isentwined
                                            in a broad         investigation thathas ledto
                                            the indictmentof four current and
                           ensnared former Alaska
          Alaska politicians
                          and                                Ben
                                                Senate President Stevens,
          son of Ted Stevens.   Local pressconcluded thatStevens was    state "SenatorB,"
          listed in the charging documents oftwo former Veco Corp. executives whopied
          guilty to federal briberyand conspiracy  charges, saying  they gavethe younger
          Stevens $242,000 illegitimate consulting fees.     Neither Stevens has been
          charged witha   crime. lt s unclear how the senior Stevenshome doubling is
          connected to broaderinvestigation, butthe Fedsare now eyeing the
          construction jobaccording tothe Anchorage Daily News , which  noticed       a line
          in the Veco executivesplea bargains    that could link the senator tothe probe:

                             preceded bya listing of a dozen Vcco-related
                 The sentence,
                                 the      said: "Veco
                  enterprises around world,               in
                                                    was not the
                            residential constnrction remodeling."
                  business of                      or

                   they       Comments ea! Stevens :Veco -SYEVEHS-875
          it/taybe dabbled. Permalink| iromcs: Ted     FBI
          A Guilty Plea Hat Trick For Alaska
                 McGannMay 16,
          By Laura     -      4:45
                             2007,    A                                  last
                                      PM third corruption guilty plea since
                   out                 This time, prominent lobbyist Bill Bobrick
          week came of Alaska yesterday.
                 to conspiracybribe former state
          owned up a         to                      Anderson, who
                                              Rep. Tom
          himself wasindicted onseven felonycounts ofbribery, extortion and money
          laundering inDecember. Last week, top executives atoneofBobrick s client
          companies, VECO   Corp., pied guilty to charges ofbribing three state
          representatives and senators.   The Anchorage Dniiy News had thestory on
          Bobrick this moming.

29 0f33                                                                                                  8/3/2007 5:14 PM
           . Archives
TPMmuck1"aker: Ted

                      The prosecution   says incourt papersthat Bobrick and Anderson
                      began conspiring July 2004. Bobrick createda    sham
                      company to mnel payments to Andersonin exchangefor his
                      doing thebidding of a                              in
                                            private corrections company the state
                      Legislature, the prosecution says.Prosecutors quote Bobrick
                      telling an informant     he andAnderson were"pitching a
                      bunch ofpeople to get money for the legislator.

               PermalinkComments! ]TOPlC$: Ted Stevens

                                                Another Bridge,
                                                Another Part              of
                                                 By LauraMcGannMay 14, 2007,
                                                                  -             12:15 PM
                                                 When your bid to build a bridge tonowhere
                                                 is shutdown, try to get federal funding for
                                                 another bridge,to a                nowhere
                                                                    different part of
                                                 -where your friends own property. John
                                                         Roll Call wrote a
                                                 Stantonof                   great story
                             ,,                   Req.!
                                                  Sub.                   out
                                                            that parses the likely
                                                 motivations for the Alaska Congressional
               delegation s work over the last few months tosnag federal   cash for abridge to
               connect an                     to
                          area whereone lives Anchorage. Whybother to invest in
               infrastructure to                it make
                                nowhere ? Well, could         the remotearea, called Knik
               Arm, a  major suburb, butmore importantly, folks with familial and political
                     Republican Rep. Young Sens.
               ties to           Don     and Ted                           Lisa
                                                                  Stevens and Murkowski
               would pro t:

                       the area issuccessfully developed, could mean a
                      signi cant windfall for anumber of people close tothe
                      Congressional delegation   including Young s daughter,Joni,
                                       of and
                      Stevens chief staff         campaign manager  and Murkowski s
                      state director some of                          in
                                              whom purchased land the area justa
                      few monthsbefore then-Transportation    and Infrastructure
                      Chairman Young substantive           work on a massive highway
                      bill in early 2003.

               Here&#39;sfrom Roll Call:

                      According to land recordscompiled by the Matanuska-Susitna
                      Borough, Senatenancial disclosure formsand      published
                      accounts, Stevens                    George
                                          current Chiefof Staff        Lowe owns a
                      2.6 acreparcel ofundeveloped landon the Knik Am1, which he
                      purchased in  December 2004 the
                                                    from      Alaska Mental Health
                      Trust Authority, according toa copy of the deed. Former
                      Stevens aide                              to
                                    Lisa Sutherlandalso stands seesigni cant
                       nancial gain &#39;om the             Knik Arm. Sutherland,a
                      close con danteof Stevens,worked for  the lawmaker from
                      1977until       March in a         capacities, including
                                                variety of
                      deputystaff          on the Appropriations Committeeand then
                      staff                                     and
                                    on the Commerce, Science Transportation                      _   _
                                  Sutherland to work FBI Stevens
                      Committee. theSenatein March
                               left                           876
                      full     on Stevens re-election campaign.

                                4!           Stevens
               PermalinkComments | TOP|C$: Ted

                                                     Vecoz A                       Force
                                                     in Alaska          Politics
                                                    By Laura           -
                                                            McGann May8,  2007, 6:24 PM
                                                   Veco Corp., the oil company atthe center
                                                    abribeiy scandal involvingat least
                                                    ve lawmakers has spent lastthree
                                  itself asa
               decades establishing                                   2,000
                                            force in Alaska politics. Some      Alaskans

30 of&#39;38                                                                                             8/3/Z007 5:14 PM
        Stevens Archives
               . Ted
    TPMmuckraker:l&#39;lt l&#39;p2//WW6tp1 l1n 1l1Ck1
      r I
                        work for the company   that cleanedup after the Exxon-Valdezcatastrophe and
                        controlsa conservative opinion armof the Anchorage      Daily News. And, for
                        lawmakers at state     and federallevel, Veco is amajor source ofcampaign
                         nancing. Two Veeo heads, J. Allen and Richard L. Smithpled guilty
                        yesterday to                  for
                                     bribery charges paying lawmakers forvotes, includingthe
                        former AlaskaSenate President Stevens,        son of Sen. TedStevens.
                        According tothe pleaagreement, Veco     paid Ben Stevens about   $240,000 in
                        consulting fees  that wereactually in exchange forpolitical favors. Stevens
                        lawyer said client is not guilty of any wrongdoing.Since 1993,Veco saysit
                        has completed   about $25billion worth of projects involving oil re ning,
                        pipeline work and powerproduction. Recently,it createda     separate corporate
                        entity to handlefcderal contracting, to meet       recent growthin the market.
                        Veco pridesitself on honesty, whichthe companylists as second priority
                        behind safety,  and justbefore beingagood corporate citizen they are, after
                                     in                                             0!
                        all, engaged the political process.Permallnkl Comments | TOPICS: Ted
                        Stevens: Veco
                            --- ..»  - »-»¢
                        &#39;¥-~~¢ a»»- »-
                                                                   tTed Stevens Son
                                                                   s Identi ed           In
                                                                      Corruption Case
                                                                      By Laura            -
                                                                                McGann May 8,    2007,
                                                                      12:11 Roll Call       sub req.! and
                                                                      the Anchorage Daily News
                                                                      named BenStevens,son Sen.
                                                                      Ted Stevens R-AK!, as one of
                                                                      the unidenti ed legislators
                                                                      involved in the 92/ECO
                                                                      cash-for-favors corruption
                                                                      scheme. According charges
                                                                       led Friday against twotop
                                                                      executives atthe oil company,
                                                                      Stevens company      allegedly
                                                                      received $243,250 consulting
                                                                      fees      were in fact for the
                                                                      purpose ofobtaining Stevens !
                                                                      official support on
                        pending before AlaskaState Legislature. Ben s dad,Sen. Stevens, pals      is
                        with one of the executives, Bill J. Allen, who pled guilty to bribery charges
                        yesterday. The men belong to a                             horse
                                                             group that boughta race           named "So
                                for bargain-basement
                        Long Birdie,"
                                   a                      in 2005.
                                               price of$40,000
                                Allen and his wife also havehosted numerousfundraising
                                                      well his fellow members ofthe Alaska
                                events forStevens, asas
                                delegation, Sen.Lisa Murkowski R! and Rep. Don Young R!.
                                A preliminary review of campaign nancerecords shows   Allen
                                and otherexecutives at VECO have made $206,900in
                                campaign contributions the Alaska delegation, with more
                                than $72,000 that total going to Ted Stevens.

                        Ted Stevens                                  screen
                                    does notseem tobe on prosecutorsradar       the corruption
                                              |Comments3! l TOPICS:
                        investigation. Permalink                              :Veco
                                                                    Ted Stevens

                        Top Veco Execs Plead Guilty To Bribery FBI                                          -Stevens-877
                        By LauraMcGann  -May 1, 2001,         The
                                                     4:45 F- M AnchorageDaily News reports that
                        top VecoCorp. executives  pled guilty to bribery and conspiracycharges in
                                    today, undera
                        federal court             deal that couldbuy them gentler sentences    in
                        exchange for cooperation inan FBI corruption investigation.Bill J. Allen,
                        Veco s chiefexecutive, and Rick Smith, the company svice presidentand chief
                        lobbyist couldsit behindbars for ve to 15 yearsand shellout up to $250,000
                        in nes on eachcount.

                                In the written charges,prosecutors sayAllen and Smith
                                conspired "tooffer and provide things of value to" three state
                                representatives and senators,   none of them namedin the                                             ,
                                document. Among speci cs listed, Allen is accused       of

l   31 of 38 8/3/2007                                                                                                      5:14 PM
       Ted Archives
    TPMmuckraker:                                                 http://w92$tprnmuckr
                    paying a special    of
                                   bonus" corporate mdsto certainVeco
                    executives theycouldmake illegalcampaign
                             so                            contributions.

             The two executives likely provideimportant               in           of
                                                             testimony the cases three
                            charged  with extortion briberyin federalcourtlastweek
                                                   and                             --
             andthetwo anonymous     statesenators           in
                                                  implicated theirguiltypleas.As
             reportedby Paulon Friday,the indictmenta  alleges classic cash-for-votes
             corruptionscheme. One of the legislators,PeteKott, met with Allen in the
                         s                   about
             exeeutive hotelsuitewherehe complained            having to cheat,steal,beg,
             borrowandlie, to ensure                       of
                                       govemment-backing a pipelinevaluable Veco.to
             In response thelegislator complaints,
                        to                 s                        your
                                                      Allen said: I own       ass."The
             indictment       the identities two Alaskastate
                                            of                 senators,        only
                            notclear            Senate
             by A andB. It&#39;s ifAlaska&#39;s President                      son
                                                                 Ben Stevens, ofU.S.
             Senator StevensR-AK!, whose         officewasraided by the FBI in August,is
             oneof them.Permalinkl             8!          Ted
                                     Comments | TOPICS: Stevens Veco  :

             Feds Indict Alaska GOPers                                                                                  l
             ByPaul-Kiel May 2007,
                             4,          I
                                     6:06PM tell you,corruption     get any
                                                               doesn&#39;t uglier
             thanAlaskan   corruption.The investigationsurroundingVECQ an Alaskan
             oil company,                                     members thestate
                           has nally bornefruit. Two Republican      of
             legislature                                             of
                                     today,oneof themtheformerspeaker thehouse.
                    still no                                            son
             There&#39;s wordon the fateof formerstateSen.Ben Stevens, of Sen.
                                                               Oh,      ugly.
             Ted StevensR-AK!, who is alsounderinvestigation. andit&#39;sPete
             Kott andBruceWeyhrauch on thehookfor tradingvotesfor cash
                                        are                                andsweet
             jobs,plainandsimple.  From The AnchorageDaiip News

                                 saysKott askedexecutives the unnamed
                    The indictment                      of
                    company money ajob after lefttheLegislature.
                          for   and        he
                    Weyhraueh, attomey,
                                 an          asked a job andlegalwork,the
                    indictment  says. about Sept.26, 2005, the indictment
                                     On                                     says,
                    Kott calledan unnamed   company                 and I
                                                      vice president said,
                    needa job. The vicepresident    replied, You vegot a job; get
                    us a pipeline, theindictment  says.... a meeting April 18,
                                                         In          on
                    2006,       toldthecompany    executives,You ll getyour
                    pipeline, govemor     getshisbill, andl ll get myjob in
                    Barbados ...   Kott metwith the company             in
                                                             executives their
                    hotelsuite May 7, theindictment      says,andtold themhe had
                                   an             to
                    triedto defeat amendment theoil tax the company        didn t
                    like. l hadto cheat,steal,beg,borrowandlie, Kott said,
                               to                The            s
                    according the indictment. company chiefexecutive
                    responded, own yourass, theindictment       says.

                                                       who tooka shineto calling
             Thesetwo areamongthesamegroupof legislators
             themselves "Corrupt BastardsCaucus."No W011 lerPermallnk
                        the                                          | Comments
              1! | TOPICS: StevensVeco
                          Ted    :

             Alaska Finally ClosesBribery Loophole
                     Kiel   s,    9:45AMAttentionCorrupt Bastards,theloophole
             ByPaul - January 2001,
             is closing:

                    A groupof HouseDemocrats                 a
                                              wantsto change statelaw that
                                           to                        for
                    theysayallowspoliticians selltheirvotesin exchange
                    campaign That&#39;s already under
                          donations.right: not
                                         It&#39;s crime                                     FBI_St   _878
                    state according
                       law,    toAnchorage Gara Harry
                                        RepsLes and  evens
                    Crawford,                                 a
                             who led a bill to close whattheycall legal-bribery

                     | Comments 1TOPlCS:Ted
             Permalink        !           Stevens

             Dem Still Holding Pork Database Bill
             ByPaul-  Kiel September2006,AM
                                    7,  8:20   An unknown           is
                                                           Democrat still holding
                                bill      a
             theCoburn-Obama to create searchable            of
                                                     database federalgrantsand
                        The                         is
             contracts, Hill reports.And thatSenator now theonlyoneholdingup the
             bill, sinceSen.Ted StevensR-AK!, who hadreinstated earlierhold,has
             since          his                     thatunknown
                    changed minddroppedit.So who&#39;s                  We
                                                                 Senator? don&#39;t
                                do                   the        has
             know.And-neither we knowwhatconcern Senator -- whether         it&#39;s

                                                                                                     8/3/2007 5:14 PM
L    ____
               .                                                          http://wwatpmrnuckrak
                                cost,                                      the speedwith
                 aboutthe bill&#39;sasthe Pork King claimed, or whether it&#39;s
                 which the bill&#39;s       forward, asthepork-inclined senior senatorfrom
                 West Virginia asserted Sure       good to
                                                  be       know, wouldn&#39;t |
                                                                             it&#39;5 errnalink
                 TOPICS:         Ted
                         Reform: Stevens

                       W                                                While
                                                            l We Were Out
                                                               By JustinRood~September     5,
                                    ~                                     PM
                                                               zoos,12:34 Over the long
                                                               weekend,more details emergedin
                                                               the growing           state
                                                               legislaturescandal,          has
                                                               now involved more than two
                                                               dozen searchwarrants and a
                                                               growing posseof federal agents
                                                               from around the country, and
                                                               includesthe IRS as well as the
                                                               FBI. The probe has put two
                                                               names the headlines:Ben
                                                                         president the Alaska
                                                               Stevens, of
                                                               StateSenateand son Sen. Ted
                                                               Stevens            and VECO
                                                               Corp.,         has given
                        state S"en.B en"§tevens,R
                   Alaslca                                     generouslynot only to Alaska
                                                               statelegislatorsbut to friendly
                 U.S. lawmakersaswell, including Stevenssenior.             are the feds
                 investigating? Investigatorsappearto havea keen interest in legislation
                 recentlyhammeredby out Alaska Gov. Frank Murkowski R!. Currently
                 awaiting passage the statelegislature,the dealwould       pave the way to build a
                 $21 billion naturalgaspipeline to tap the statc sNorth Slope reserves.  VECO
                 hasbeena strongsupporter the deal. However, the probeseemsto have
                 expanded - in scopeand in size past that one deal:

                         "Theyarealterpeople                             oil
                                            payingfor votesduringtherecent and
                        gasspecialsessions. think that was fairly transparent,"said
                        political pollster Marc Hellenthal, who said he was interviewed
                        Friday afternoonby two FBIagentsfrom Sacramento,        Calif.
                             also                                back
                        Agents toldhim whattheyarelookingfor "goes
                         longer than that."

                        The      hasbrought in agentsfrom around the country for the
                        investigation.The lntemal RevenueServiceand other federal
                        agencies also are involved, Gonzalezsaid.The investigation has
                        stretched pastlegislators,including former Sen. Robin
                        Taylor, R-Wrangell, who was interviewedThursday by FBI
                        agents.        is now a deputy commissionerin the state
                         of             "They
                        Department Transportation.            interviewed him about his
                        pastasa lawmakerand his dealingswith Veco," said Will
                        Vandergriff, deputy presssecurity for Gov. Frank Murkowski.
                        "He saidthey arejust expandingtheir net."

                        the Corrupt Bastards C:rucus?It was apparentlyan insidejoke
                 amonga dozenlegislatorssingled out in a March 2006Anchorage Daily News FBI          Stevens 879
                 op-edfor donationsthey receivedfrom Alaska petro-giantVeco Corp. The
                 moniker didn&#39;t in the article. Rather, "Somebodywalked up and said,
                  You corrupt bastards, and that namestuck, Alaska House Finance
                 Co-ChairmanMike Chenault R! told the Daily News:

                        Hatswere evenmadewith the initials          on them, but that
                                 of      CBC
                        was the extent the         deal, Chenaultsaid. .. . House
                        Speaker JohnHarris, R-Valdez, said he saw [StateReps] Smith
                        and Kott handing out hats in Juneduring the rst special
                        session when lawmakersvoted down the petroleum tax bill. But
                        he did not seeanything with the Corrupt BastardsClub on it.
                         They werehanding out hats down at the Baranoff Hotel! at

    33 of                                                                                                     8/3/2007 5:14 PM

                 Stevens Archrves
TPMmucktal92er Ted                                                                    http://wwwtpnmtuckraker com/archrves/cats/ted_stevens/

                                    the bardown there.All they had was VECO on them, Harris
                                                 said hemay still have a CBC hat, but he can t
                                    said. Chenault

                                     |      Stevens : Veco

                                                              From D.C.,            Alaska
                                                              Senator Keeps  Eye
                                                              and AHand! Out For
                                                              His Son
                                                                   By JustinRood-September 2005,PM
                                                                                             1,       5:31
                                                                   Ah, how the bennies the father arevisited
                                                                   upon theson! A 2003 article counted atleast
                                                                   nine separate cases inwhich Sen.Ted Stevens
                                                                    R-AK! has done favorsfor companiesor
                                                                   organizationswhich        his son Ben over
                             $1.5 million in salaryand "consultingfees." And there havebeenmore since
                             then. Thearticle, from the LosAngeles Times,        was unearthedby the
                             Washington, D.C.-based    Sunlight Foundation.!Ben Stevens,       president ofthe
                             Alaska State                     had
                                           Senate, recently hisof ces raidedby the FBILNews out of
                             Alaska indicatesthe fedsare looking for information surrounding amajor
                             resource legislation package that     bene ted at least oneof the companies father
                              helped out, VECO Corp Since the Times
                             Ted                                          piece       was published,the elder
                             Stevens has  done morefavors which bene ted Benin late 2003,the U.S.
                             senator nagleda $29million eannark for The Alaska Fisheries            Marketing
                             Board." Guess                the
                                                  got to chair group -- which for two yearsdid not
                             disclose its                    right: Ben Stevens. Aspokesman forthe father
                                         activities? That&#39;s
                             said hemerely "recommended" sonfor the post.! And last December, was          it
                             revealed that Stevens senior    inserted aprovision into a bill worth $10 million to
                             a shing venture forwhich his son Bensecretly heldan investmentoption. The
                             provision wasestimated tobe worth $1.5 million to Ben. ln the end, Bendidn&#39;t
                             collect thatpro t, however; the venturesoured forunrelated reasons.!        There&#39;s
                             no evidence                is
                                          Ted Stevens of interest tothe investigationannounced yesterday
                             -- althoughhe does   have anoffice in    the same townwhere oneof the FBI
                             warrants was                      in                               are
                                           executed. Keep mind, however, investigators requiredto
                             follow up on anyevidence ofwrongdoing they come across.           And judging by the
                             news pictures, FBI has been          wheeling alot of documentsout of those
                                                         got reasonto believe that evidenceas outrageous
                             of ces. if they&#39;ve already                                                    as
                             "Corrupt Bastards   Club" hatsexist, who knowswhat        kind of stuff they might
                             stumble across.               |
                                              PerrnalinkTOPICS: Ted      Stevens: Veco

                                     Ran     Tn
                             Alaska inst PLEASE U ;n;;;;J"
                             Found the          Hats
                                         -             1,        PM
                             Justin Rood September zoos, 3:31 AP reports on
                             By                                                 the recent raidon
                                                                                   son of Sen. Ted
                             Alaska lawmakersoffices, including those ofBen Stevens,
                             Stevens R-AK!:

                                    Among theitems federalagentswere searching     for in Alaska
                                    legislative officesthis week are hatsor garmentslabeled
                                     Corrupt BastardsClub" or Corrupt BastardsCaucus,"
                                               to     warrant. FBI
                                     accordingthe search                                                               _Steve -15-880
                             Permalink §TOPlCS: Stevens

                                                              For AK          Scandal
                                                              Company, Money Can&#39;t
                                                              Buy Happiness -- But
                                                              Influence? Perhaps.
                                                               Justin Rood-September2006, 12:15 PM
                                                              By                        1,
                                                              When FBI agents raidedtheoffices of
                                                              Alaska Senate  President BenStevens andve
                                                              other legislators,they werelooking for

34 of 38 8/5/2007                                                                                                                       5 14 PM

    ~_ __       _                        __      7H____...____                                _;<_A_&#39;___ *4
                                                                                     ..:.¢_v _~                                         1 7:41
FPMmuclcraker                                                           hlilfpI//W92$tpII1IXll.
                §;f,-& §;;;n                     evidence       between those
                                                       ofimproper           state
                                                lawmakers a company
                                                          and            calledVECO
                Corp.That left some  scratchingtheirheads.       VECO?
                                                          What&#39;s Basedin Alaska,
                theprivately-owned,  non uniondeals
                                               company       primarilyin petroleum and
                petroleum-related         its
                                  services; estimated         in
                                                       revenue 2004 wasS500million, and
                it employsaround   5,000peopleworldwide.  That ssmallby oil megacorporation
                         but big in where
                standards, it&#39;s Alaska,                       has
                                                      thecompany beencalled"a titanin
                theAlaskan industry."                                          but
                                         VECO hasovertwo dozensubsidiaries, it likesto
                spend                     It&#39;s
                      moneyon in uence. the top campaign                 to
                                                              contributor bothAlaskaSen.
                LisaMurkowski anditscongressman,         Young
                                                         Don        R!. And although it&#39;s
                onlythesecond-biggest              to          R!,
                                        contributor Sen.Ted Stevens       with over$70,000
                in donations thesenior   senator fromVECO employees    according to
                               it keeps                   in
                FECInt&#39;o.com!, closetiesto Stevens otherways.For one,it s       dumped
                $25,000intohis"Northern                                    The
                                          Lights politicalactioncommittee. company
                   paid     Senator Ben heof theraided
                also hisstate    son,                      over
                                                     office!         for
                variousreportedpurposes,including         his
                                                 lobbying father.         more,
                                                                   What&#39;s theson
                of /ECO president Lethardwasreported work for Stevens
                                  Pete                    to         in
                Washington, D.C. Also,thecompany  brie y ownedtheAnchorage   T2&#39;nzt;.sin
                1992it shutthepaper                   to          of
                                    down,andswitched fundinga haltlpage editorials   in
                theAncIiorageDaily News.The section, called"Voiceof the Times,"is
                         devoted "conservative,"
                reportedly       to                            views.Permallnll
                                                  "pro-industry"               TOPICS:

                                                 FBI     Of ce
                                                         Raids                   AK
                                              ByPaulKiel August2006, 11:08
                                                                    31,            PM
                                                         the                  of
                                                                    raiclcdthe ce of Ben
                                              Stevens,         president
                                                       who&#39;s of the AlaskaState
                                                    --        of
                                              Senate andson Sen.Ted "King of           Pork"
                                              Stevens             Investigatorssearched  his
                                              of ce and those         ve otherlegislators!  for
                                            . evidence anyties " nancial information
                                              andgifts"!between lawmakersVECO
                                                                     the            and
                                              Corp, "anAnchorage-based eld services
                                              andconstruction    company    whoseexecutives
                aremajorcontributors politicalcampaigns,"
                                   to                                            a
                                                            accordingto the APVECO,
                reader         of
                            is one fatherTed Stevens   biggest   campaign  contributors.  Its
                employees  donatcd$45,750duringhiscareer.   This is the second   time in a week
                Ted Stevens                        at                    ~-
                            namehasmadeheadlines TPMmuckraker earlier,readers                will
                                        this as
                recall,he wasunmaskedon site beingthe GOP masked               holder"  who
                    up           porkbusting
                held theObama/Cobum                 billUpdate: this of
                                          transparency       Is     part
                whattheFeds  wantto know about?            28
                                                  Froman April article in theAnchorage
                Daily News:"Veco,an Alaskaoil eld services construction       company
                whose            are                  to
                       executives majorcontributors Republican      politicalcampaigns,  paid
                [Ben]Stevens  $57,000lastyearfor unspeci ed business  services, according  to
                Stevens mostrecent disclosure." more,ti-oma Nov. 3, 2005
                                                And                      AP       article:
                "BenStevens          relationship
                              business            with theoil eld servicecompany   Veco,
                whichhaspaidhim $243,000since     2000, wascitedasan example   of
                           in therecallpetitionbrought against       by
                                                              Stevens Republican
                Moderate Partyfounder  Ray Metcalfe. Permalink         Tod
                                                              ITOPICS: Stevens:     Veco

                Are Even Porkbusting Projects Full of
                POl&#39;k?                                                                         |:BI   Ste-vens 881
                       Kiel        s1,    3:03
                ByPaul - August zone, PM The Congressional         BudgetOf ce
                calculates                                       to
                               thatit wouldtake$15 milliondollars create  andmaintainthe
                database onlinesearchable          of
                                           database government   grants            for
                 ve years. EllenMiller of The Sunlight  Foundation saystodaythey&#39;ve
                commissioned Washington,     D.C.~based nonpro tOMB Watchto do the
                exact same thing.The cost?                             Ted
                                          $234,713for threeyears.So is Sen.   Stevens
                 R-AK! vindicated havingalleged
                                  for             costconcerns? And, moreimportantly,
                does OMB Watchhavean Alaskan    bridge-building                |
                                                               division 3>ermaltnk
                TOPICS:        Ted
                        Reform: Stevens

                Who&#39;s   Who?
                ByPaul - August 2006, PM
                      Kiel      30,    5:36    an
                                              About hourago,CNN posteda   story
                on Sen.Stevens       as         pork-meister highlighted way a
                              exposure the secret          and          the

                                                                                                                   8/3/2007   14 PM

    _   11%-~      ~ Ti                                        >7.77_                __       .7
TPMinuekrakerTed Stevens                                                                            COD !/ ICl&#39;11V¬S/C3.iZS/lI¬d__

                            hostof different yes,
                                           blogs    including TPMmuckraker.com!
                                            PMm             satis and        us
                            out.But &#39;l Reader/1C isn&#39;t ed, emailed the following:

                                             Sen.        is
                                      [CI921N: Stevens thesecretsenator !
                                      POSTED:4:38 p.m. EDT,               "CNN
                                                                     30, 2006         has
                                      con mied  thatAlaskaSen.Ted Stevens, R-Alaska,hasplaced
                                      a holdon bill thatwouldrequire government publish
                                                                    the              to
                                      onlinca database federal
                                                      of                           "MASKED"
                                                              spending.[&#39;I 1 Mm:
                                      BILL-BLOCKER REVEALS SELF] By PaulKiel August-
                                      30, 2006,1:59 PM
                                                    for          R-AK!
                                      "A spokesman Sen.Ted Stevens            just con miedhis
                                      boss wasthemanbehindthesecret  holdon the Coburn/Obama
                                            database whichhasa
                                      spending                        segment the
                                                             captivated    of
                                              blogging community recent
                                      political                in     days. CNN... Catch-up
                                      News Network

                            Hey, he saidit. We didn&#39;t.        Ted
                                                            TOPICS: Stevens

                            V Bill&#39;s                                Troubled
                                                                     Cost     Me,
                                                           Pork King Says
                                                                         ac,       3:56
                                                      ByPaulKiel- August zoos, PM Sen.
                                                      Ted StevensR AK! heldup a            would
                                                                                     bill that
                                                      create free,searchable   database  of
                                                      government            and
                                                                  contracts grants       because he
                                                      wasworriedaboutthe proposal&#39;s his    tag,
                                                      spokesman me thisaftemoon. costhas  Its
                                                                     at million.
                                                      beenestimated $15               Stevensof ce
                                                      hasaskedSen.Tom Cobum R-OK!, the
                                                              of                              t
                                                      sponsor thebill, for "a cost-bene analysis
                            to makesurethisdocs create extralayer of unnecessary
                                               not                                  bureaucracy,"
                                   Aaron    said.       wanted make that
                            spokesman Saunders TheSenator    to   sure this
                                   t                                   and
                            wasn goingto be a hugecostto thetaxpayer thatit achieves goalthe
                            whichthebill is meant achieve. Saunders   addedthatStevensholdwasnot
                            "secret," thathe
                                     and     would backthebill if theanalysisshows   that"it achieves
                                                  its                          spokesman
                            itsgoalandit achieves goalwell." But Sen.Coburn&#39;s          JohnHart
                            questioned  Stevens                       to       this
                                               motive."Theonly reason oppose bill is ifhe has
                            something hide, Hart said.I-lartsaidthatStevens,       on the
                                                                            who&#39;s Senate
                            Homeland          and
                                       Security Govemmental     Affairs Committee,failedto attend any
                                     on                   hackedup by vote tallies."lf he had
                            heaiirigs thebill, an assertion
                            concems, should    haveaddressed themin regularorderratherthanblocking
                            something             bene millions taxpayers," said. added after
                                                       t      of        Hart    He    that
                            Stevens ceraised concems,
                                  of        the           o ice        a        but
                                                    Cobum&#39;srequested meeting,
                                got    The           Budget                 that
                            never one. Congressional Of celiasealeulated Cobum s
                            proposal       "$4
                                        cost million 2007and
                                                    in            $15
                                                              about million        over
                                                                             [total} the
                                    period. comparison,
                            2007-2011      By                 --    beeicalled
                                                       Stevens who&#39;s the"King     of
                            Pork" one
                                by govemment   --
                                               watchdogwas         publicly
                                                            recently                for
                                                                          lambasted his
                            appropriation   than          for          "Bridge Nowhere,"
                                                $200million theso-called       to
                                                   Alaska population
                            whichwouldlinkKetchikan,               8,900! with its airporton
                            GravinaIsland         50!.     the
                                         population Despite factthatStevens       has
                                                                             office refused
                                today admit heplaced hold,
                            until    to     that       the           said,
                                                              Saunders "This          does
                            notplace     holds." number senators
                                    secret     A       of            initially
                                                               offices             to
                                  in       to                         as
                            comment response bothpublicandmediarequests to whetherthey&#39;d
                                  hold. Hatch Crapo waivedgeneral in FBI_ Ste /enS_882
                            placed Sens. and both that        practice
                                                             request senators
                            lightof MajorityLeaderBill Frist s     that           to
                                                                            respond bloggers&#39;
                            and      TPMm
                               readers                              con rmation twosenators,
                                                          stillawaits        from         Byrd
                                         that           a
                            andBennett, theydo nothave holdon the      bill.  Sen.Cobuminitially
                            revealed Stevens                                    a
                                             identityastheholder two weeksagoat townmeetingin
                            Sallisaw,           --
                                      Oklahoma but thatrevelation          to
                                                                   seems havebeenunintended. wasIt
                                                      his           told
                            an "off thecuff comment, spokesman me. Update!As to why
                            constituents,TPMm, andothers          told whentheycalledStevensoffice
                                              the                    just
                            thathe hadplaced hold,hisspokesman explained, Sen.Stevens          was
                                      the        that
                            traveling, staffers workedthisissue       hadalsobeentraveling so it was
                               for       to               about particular
                            hard ourpeople gettheinformation this       hold. Permalinll
                                  Reform: Stevens
                            TOPICS:     Ted


36 of38                                                                                                           5
                                                                                                                 8/3/2007   14 PM

            __          _         1     ;____
                                            __-                                     _____ __ _          _   __     _ __
     Stevens Archives
TP192/lmuckraker: Ted http://wvstpmmuckrak
                                          BILL-BLO CKER
                                          REVEALS SELF
                                        By Paul                 1:59
                                               Kiel -August30,2006,      PM A
                                        spokesman for  Sen. TedStevens R-AK! just
                                        con med his boss wasthe manbehind the
                                        secret holdon the Cobum/Obama spending
                                        database bill,which hascaptivatetla
                                      rsegment of the political blogging community
                             Stevens does
          in recentdays. "Sen.           have ahold on the bill," said thespokesman,
                  only speak the
          who would                      not named. He
                           on condition he be         that
                                                     added                       Sen.
          Tom Cobun-l&#39;s of ce was noti ed of the hold after it was placed. So
          Cobum&#39;s commentstwo weeksago mayhave beenduly infonned. So why does
                        he      the Why
          Stevens say placed hold?                                                   And
                                             did it take this long for him to say so ?
                                   have                 |TOPlCS: Refomwz
          will he li it? We&#39;ll more S00l1...Permalink                  Stevens
          it                      SCoburn: Stevens
                                          Blocked My Bill
                                          By Justin                  11:27
                                                   Rood-August 29,2006,       PM
                                          Twelve daysago, ata   town meeting in
                                          Sallisaw, Oklahoma,Sen.Tom Cobum
                                           R-OK! accusedSen. TedStevens R-AK! of
                                          obstructing hisporkbuster-database billwith
                                          an anonymous                accordingto an
                                                         hold. That&#39;s
                                          Aug. 18 article in the F Smith Ark.!Times

                 One ofthe senators   most criticized for his personal projects,
                 Sen. Ted  Stevens, R-Alaska, a has hold of his own on Cobum s
                 bill to makepublicthe spending patterns ofthe government.
                 Called theFederal FundingAccountability and Transparency
                 Act, the legislation callsfor the creation of adatabase open to
                 the public        citizens cantrack governmentspending. He s
                 the only senator blockingit," Cobum said of Stevens.

          Cobum s of co was notavailable for comment thisevening. Thearticle has
          gone largelyunnoticedin recent days, ashundreds ofbloggersand blcg-readers
           at TPMm and elsewhere!                                  in
                                       have calledSenate offices an effort to detennine
                                  hold Cobum&#39;s piece
          who placedthe "secret" on                     The
                                                       bill.     does               in
                                                                           not tum up a
          Nexis search,  although it is in Google. Stevens             the
                                                             has been odds-on favorite
          since the hunt for the HolderWho Dare Not Speak  His                         he
                                                                      Name began.But did
                              had a motive: As the paper
          really do it? Well, he                         and                   Stevens
                                                                   others havenoted,
          and Cobumhave clashed       before -- in particular over Stevensnow-legendary
                   nowhere." Cobum
          "bridge to                        failed! to
                                 attempted and                $233 million
                                                      block the
          boondoggle. And                                           m.o. "Stevenscan
                            revenge certainly ts the senior Alaskan s
          play rough," the SeattleTimesnoted inJune. "Despite  denials from his staff, he
          retaliates -and doesn&#39;t
                                mind          years todo so." Stevens of eehas sofar
          refused tocomment on hold. Ninety- ve other senators have       con rmed
          they werenot responsible. Thanks toTPMm Readers for  MEGC       the tips.
                    |        Ted
          PermalinkTOPICS: Stevens
          return to homepage

                                                                                            FBI -Stevens 883

37 0f33                                                                                                    8/3/2007 5:14 PM

     Stevens Archives
TPMrnuckraker: Ted

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                                                                          FBI -Stevens-884                92


38 of38                                                                              8/3/2007 5:14 PM l
               #                          1i           r                                                  _
        ,i        _.r    _ ____         ,   ,_ _... ...s                             ,_    t t.      t ., ..
                                                                                                           _        t.   L, ._

  l»   Braggcti
     | Beth This ict-of-iriterest
    adn.cox.nthing must Lisa Page
             ll              Tedéd 1 of
                         confuse     2
Y        a

                                                                                           [ Print          ]
                                                                                                Page [ *Close

       This conflict of-interest                                   must confuse Ted and Lisa

       COMMENT Beth

       Published: August 3, 2007!

       As yet another fine mess embrolls an Alaska lawmaker, you have to wonder:

               so hard for these people to recognize a conflict of interest?
       Why is it

       Had either Ted Stevens or Lisa Murkowski asked themselves the most basic of questions before
       saying yes to offers way too good to be defensible, they&#39;d it much easier to stay out of the
       cross hairs of the FBI, the    political watchdog groups, bloggers, comedians and plain ol&#39;
       ordinary Alaskans.

       The questionsthey should have asked are A B-C, 1-2-3 simple:

       Would ordinary Alaskans be offered similar deals or favors?

       Would            Penney sell his 1.27-acre Kenai River lot for $179,400 on Craigslist?

       Would Bill Allen run a classifiedad seeking horne~remodeling projects to oversee?

       The     to   is       is
          answer each no.Which whytheanswer thesenators
                                          from       should been way.
                                                          have  no
       It&#39;s simple.

       It doesn&#39;t that Penney has
                matter                                                             5
                                                               Murkowskl since she was            years old or that Allen has
       beenfriendswith Stevenssincethe Paleozoic                                                               _

       What matters is that Murkowskiand Stevens are United States senators, and everything they do
       must be free of even the appearance of conflict of interest.

       Note the use of the word "appearance." For some reason, lawmakers and even some ordinary
       Alaskans! seem to think there needs to be an overt, egregious ethical lapse for something to
       qualify as a conflict of interest.

       Wrong. It&#39;s what looks fishy or oily, not just about what actually is fishy or oily. You don&#39;t
       need an indictment         or a conviction    for certain    behaviors   to erode   trust.

                                                                                 domain! or Stevens
       Whether Murkowski makes decisionsthat will benefit sport fishing Penney&#39;s
                                                                doesn&#39;t matter.
       makes decisionsthat will benefit the oil industry Allen&#39;s!  really

       What matters is, by accepting deals or services unavailable to the rest of us from well-connected
       heavyweightswhose prosperity          be affected by lawmakers decisions, Murkowski and Stevens
                                               FBI         Stevens-885

       http://Www.adn.com/news/     9L1 ?    8/3/20
      Bragg     thing Ted
                    confuse Lisa    2 of
!_adn.c%m : cwlict-of-interestad Page 2
 Va ii                                                                     &#39;

give ordinary Alaskans legitimate reason to wonder if the senators can do their job without being

       no              got
                      both                                              If in
                                 something the average person won&#39;t get.doubt,         review the
previous questions.

Murkowski realized the appearance of a                                       up
                                         conflict was significant enough to give      the land she and
her husband bought from Penney. Her cry-me-a Kenai-River-lament that        criticism ofthe deal cost
her family the Alaska home they deserve is   shameful.         should
                                                         She never         have taken the deal in the
first place. She deserved every bit of scrutiny she            She and her husband should have
shopped for land the        way other Alaskans do, or at          Alaskans
                                                         least those                         have
                                                                                  who don&#39;t cozy
relationships with the     and powerful.

When you&#39;re                                                               avoid
                         or appointed official, ethics trump friendships. You must               the
appearance of conflict in matters both professional and personal. Simple as that.

Problem is, Alaskans have long enabled the pervasive mentality among lawmakers that      it&#39;s OK to
      on their office and influence, that
cash in                                                                                         get
                                       it&#39;s OK to take consulting jobs they wouldn&#39;t if they
                               it&#39;s OK to
were merely cabinet makers, that            let  oil industry bigwigs like Allen dictate lobbying laws.

                              long       of
Juneau insiders say they&#39;ve been aware                                            level,
                                                  the culture of corruption at the state         but it
took         investigators to kick over the stone and expose the Tom Andersons of that    world.     And
most Alaskans sat by quietly as majority                         state
                                            lawmakers delayed fixing         ethics laws thathad
allowed aformer attorney general to take a lead role in a              could
                                                            project that         have steered business
to                  more
         company heowned          than $100,000 worth of stock in.

The other day I heard awoman talking about the scene in    "The Simpsons Movie" where Homer
learns Alaskans receive annual checks for "letting the oil companies ravage" the state&#39;s natural
beauty. "I always wondered why we got them, she said, not considering for a minute the line was
a                                affair
 commentary on the state&#39;s love with the industry that helped spawn Allen and his dirty

Lawmakers may be too              or too arrogant to recognize obvious conflicts, but ordinary Alaskans
deserve part of the blame for letting them           away with it for so long. Even now, people defend
Murkowski by saying                                           deal
                         long friendship with Penney exempts their  from criticism and defend
Stevens by saying his four~bedroom, three-bath Girdwood home assessed at $440,900 ismodest
and therefore immune from scrutiny.

Until everyone accepts that the only rewards lawmakers deserve is their         their considerable
power                      their
            influence, and perhaps                         stuck
                                        re-election, we&#39;re in this fine mess together.

            opinion column appears Wednesday, Friday and Sunday. Her e-mail address
Beth Bragg&#39;s                                                            is

[ PrintPage Closewindow                ]

Copyright © 2007 The Anchorage Daily   News www.adn.com!

                                                                          FBI      Stevens-886

                                                                 97 87p-91061 .8/3/2007
http://WWW.adn.com/news/alaskalanchorage/beth_bragg/v-printer/story/91 8    86..
WorldNews: I play
Access Document                                                                       .                          1
                                                                                                              1 of
         boat           -
Cowdery&#39;s bums and sinks
RESCUED: Fishermen pick up the legislator and his passengers.
Anchorage      News AK!
August 3, 2007
Estimated printed pages: 2

Sen. John Cowdery&#39;scaught re and sank Wednesday night near Whittier, according to
two who         took him to safety.

Tory Freeman said he and a friend were nishing a day of shing when they heard report
over the radio of a boat in trouble. They saw Cowden/ s40-plus-foot boat nearby, carrying
the Anchorage Repubiican and three adult passengers, billowing smoke.

"The cabin was totally lled with like this really thick, white smoke; it was like an electrical
 re," Freeman said.

"John Cowdery        stuck his head out of the cabin, and we yanked him out of there."

The re began on boat called the Johnita about 6:40 pm. on the southwest side of Esther
island, said Chief PettyOf cer Barry Lane of the U.S. Coast Guard.

lt wasn tthe rst time one of Cowdery&#39;s has sunk.

Gn his personal Web site, Cowdery writes that he bought a 50-foot-plus pleasure boat
around                                               stat?
            and named it Johnita ll. One of Cowdery&#39;s members got married on that
vessel,rhe wrote.

Whittier   harbormaster   Mike Davidson   said the Johniia   ll sank in the winter   of
                                                                                      2000       2001
                                                                                                or      at
the Whittier dock, but was recovered and repaired.

Cowdery could not be reached for comment Thursday.                woman who answered the phone
at his home hung up when a reporter identi ed himself.

Freeman and a longtime friend, Jeff Ohman, spent Wednesday bottom shing near Whittier.
Ohrnan said they were headed home when they passed Cowdery&#39;s and saw smoke, but
thought it was just heavy exhaust.

Then no morethan two or three minuteslater a maydaycall came over the radio, and they
             new 22-foot Hewescraft -- the Live and Learn-- to help.
turned Ohman&#39;s

"The boat was engulfed in smoke like you see in a house re," Ohman said.

Cowdery told the shermen that he&#39;d lled the boat with fuel, Freeman said. After the
senator and his passengers boarded the good Samaritan boat, they left for Whittier and
watched as the Johnlta erupted in ames, Freeman said.

Another boat in the area soon reported that the boat had sunk. The shermen said no one
appeared to be hurt.

The Coast Guard is investigating the Incident

                                                                                          FBI   Stevens 887

                            ~l  ~ it /2007
    News: Why
Access Document                                                            0                          2
                                                                                                   1 of
Palin to discuss special session -
OIL TAX FORMULA: Legislature would address possible malfeasance.
AnchorageDaily News AK!
August    2007
The Associated Press
Estimated        pages: 2

Gov.SarahPalin         outlineherplans a special
                                      for            on          petroleum
                                               session the state s       pro ts
    a           here
tax during newsconference           this morning.

Palin   joined by RevenueCommissioner Galvin, who is expectedto have a report
        be                                 Pat
preparedon the tax systempassedlastyear, said deputypress secretarySharon Lelghow.

               basedon pro tsratherthan grosssales, has been underscrutiny
The tax formula,                                                         atter
three formerlawmakers                           in
                     came underfederal indictment ll/lay.

Vic Kohring,                                          are
                        and Pete Kott, all Republicans, chargedwith taking
                 favorsin exchangefor votes on the state&#39;s last year.
bribesor extorting                                       oil tax

Allthreewerearrested4               not     Theyare awaiting thistalt.
                   May andhavepleaded guilty.              trial

                              Palinpledged take a look at the potential
The day afterthey were charged,           to                          role any
malfeasancemay have had on the currenttax.

"Therea              we be
      are lotof things will                through,
                                     walking                  and        Palintold
                                                  investigating studying,"
The AssociatedPressthat day. We will see what kind of in uencewas effective in terms of
the administration       what they proposedand lawmakersadoptingwhat they

One day atterthe state&#39;s             in        she          plansto have
                                 adjourned mld~l92/lay, announced
                   outsideof the state&#39;s in the fall.
thissession,possibly                   capital,

Today,she willanswerlong-awaitedof
                               questions where and when.

       she           like              wherethereis a roadsystem
Recently saidshewould to havethe session                        providing
accessto a majority the lawmakersand citizens,whichJuneau does not have.

ButPalinhadalsosaidshewasalarmed the costforthe one-day      lawmakers
                                                       session       held
in Anchoragetwo monthsago. it surpassed$100,000.

            said the governor&#39;sto take advantage the road systemhas not
Still,Leighow                wishes                 of
changed,makingAnchorageand Fairbankslikelycandidates.

"Gov.Palinhasalways          this    session
                        having special              on
                                            somewhere the roadsystem
so Alaskanscould have accessto the lawmakers,"                  never
                                              Lelghowsaid. "She&#39;s wavered."

Just because the announcement is to       made in Juneau does not mean Palin will call for it
to be in the capital,Lelghowsaid.

                 of          in         or         out             a
Palinhasspentmost the interim Anchorage traveling of state,including tripto
Kuwait visit
                      soldiers in
                              serving the MiddleEast.

Her oi ce and mansionhave been undergoingrepairs,asbestos abatement and restoration
     the      so      outside capital
during interim, working     the                Leighow
                                    was logical,     said.
                                                                               FBI   Stevens 888

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       Aoceis News:
      _ WorldDoou1nent$&#39;sp1ay Page                                                                                                        of
     k;J                                                                                             &#39;
            House Speaker John Harris, R-Valdez, said he has not heard any speci cs                        about the
            sessiorfs mission        or location.

                    to                                               most
            What I want do is encourage the governor to do what&#39;s bene cial to getting in a
            good process for whatever they are          Harris said.

                                                                                                                FBI - Stevens 889

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Access Document                                                                                        1
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Despite reservations, Alaskans vote for reform
AnchorageDailyNews AK!
August3, 2007
Estimated printed pages: 2

       entire           delegation
Alaska&#39;s congressional        voted for the ethicsbill.

There had been some questionearlierthis week whether Sen. Ted Stevens would vote for
                                     to                    for
the measurebecausehe had objections the stricterprovisions charteredplane travel.
Both he and Sen. Lisa Murkowskisaid they thought the new rules would make it more
expensive charterplanesto travelwithinthe state.

Butfor Stevens,it was no time to cast a vote againstethicsreforms just days after the FBI
raided his house as part of a corruption  probe. The raid proved awkward timing for GOP
leaders, who were working to show that they are as tough on ethics as their Democratic
counterparts who pushedthe billthrough   the House and Senate.

Murkowskisaid she had spent a lot of time thinking about how to vote on the bill, in part
becauseshe thoughtthat earmarksshouldbe even more transparentthan the standardsin
the legislation.

                                                                And like Stevens, she
Like Stevens, she had concernsabout the charter plane provisions.
      A                group
hashadproblems. watchdog   filedan ethics        against afternewsreports
                                         complaint     her
surfaced about a sweetheart land deal she had with       developer and family friend.
          stung the criticism
l92/lurkowski,               overthe deal, soldthe land back for its asking price.

It&#39;s clear that people across the country want to holdCongress to high standards,
Murkowskl  said, and now is the ideal time to pass such guidelinesand show the publicthat
they are seriousaboutchange.

"Peoplewantto knowthat we reallyhave made a change in that dlrection,"
                                                                     she said.

Rep. DonYoung,R-Alaska,votedfor the measurein the House earlier in the week.

                                                                                  FBI   Stevens 890


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                           tax                                                                                   of
                                                                                                               Page 1

          State to                 hire consultants                    to review              oii tax
          TASK: Experts            wiii iook   at other   pians, consider   aitematixres to        the PPT.
          The AssociatedPress
          Pubiished: August 4, 2087
= Last                   4,
              Modified: august Z087 at Q5218 AM

          FAIRBANKS -- The state Tax Division hopes to hire rive consuitants to review Alaska&#39;s oii
;_                       .
                    .. . W                            going                    number of areas of expertise,
                                           "The state&#39;s to need to draw on a
1 5t° "        t°°i$ and                  the         has
                                    each of contractors certain            different areas,"
                                                                strengths in
                         this                     Tax        director.
            ¬°" _ B"t_°" 5t°"v said Jonathan Iversen, Division
            1:-mail a friend

          7 gig"; Barring                                 state contracts   Cline
                                                   protests, theaward to Gaffney &
           Seed Newsvme                                                              PFC Energy,
                                     Associates, ArthurD. Little, Research Associates,         and
               ii;-,g.; Am Mai iidalé
          D Send        Via                    Consultants Inc.
             r= *  ;A A             A
               Ont weg  i                        have done internationally. Department of
                                           Ail five    work         The state
                                    Revenue has contracted in the past with ail the companies except
          Research Associates, according to deputy revenue commissioner Marcia Davis.

          Research Associates is operated by Richard Fineberg of Ester and is the oniy Aiasi<a based
          company. Fineberg served as senior oil and gas adviser to the governor in the iate 19805.

          The division requested. proposais in Joiy for aconsuitant to heip gure out how Aiaska s new
          petroieum profits tax, or PPT, compared to other taxes around the worid, and to heip consider
          alternatives if      needed.

          The proposal request described asix~month contract running through January 2068. Consultants
          wouid be expected to testify on     tax proposals, The contract budget was capped at $400,000.

          The Tax Division nicked consultants based on their understanding of the project, work plan,
          experience and cost. A preference was given to Alaska applicants.

          Iversen said the division plans to split   among the companies and to have some "cross-
          checking," with multiple companies researching the same topic.

          Companies wiii be paid for tasks they are assigned.

          * it s an expensive undertaking, but we wiii be using these experts frugaiiy,"   said.

          The Department of Revenue aiready is reviewing the PPT.  According    to Iversen, the consuitants
          wiii acid to the expertise avaiiaoie at the departments of Revenue and Nature! Resources.

E; FBI                                                                                             Stevens-891

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                                                                            li1i 92 iii92i~l?>L@;              3/269,007
     Access          News: Document isplay                                                                          3
          *                               3                                         I.                        Page1 of

     Palin sets special session date -
     OCT. 18: She wants review of oil pro ts tax; location still undecided.
     Anchorage News AK!
     August4, 2007
     Author: STEVE QUINN
     The Associated Press
     Estimated printed pages: 4

            oil tax                                        tainted              Gov. Sarah
     Alaska&#39;s systemis notonlyfailingthe state, but it&#39;s with corruption,

     So she will call lawmakersback to work Oct.                               petroleumpro tstax,
                                                            to reviewthe state&#39;s
     also known as

     Palin, however, has not selected a site for this special session, which could take up to
     days.A one-dayspecialsessionin Junewas held in Anchorage.

     This means   lawmakers     will be in session                     1
                                                        soon after the Oct.   deadline       for interested
                                      for                      pipeiineto ship trillionsof
     companiesto submitapplications buildinga multiblllion~dollar
     cubicfeet of naturalgas to market.

     The tax formula, based on pro ts, not gross sales, is coming up short of projections,
     according report
            to     prepared Revenue
                          by      Commissioner Galvin.
                                           Pat                                           _
     PPT came under additionalscrutinyin May after three former lawmakerswere indictedon
                        chargesin connection
     briberyand extortion                  with the tax law.

     "PPT just is not workingas had been promised,"Pailn said. We are in great need of
     creatingan environment here in Alaskaof investment.

     "Revisiting     can tackle that issue and also allows legislators basicallystart anew, to
     remove the taintof corruption restorepublictrust."

     Palin&#39;s     tall rightin line with concerns by Democratsthat date back to last year
     when PPT was beingdebatedin regularand specialsessions.

     Many Democratssay the state is losingmillionsunder this formula,but Palln did not call for
     any speci c changes just yet. Still, she plans to give legislators speci c direction for
     reviewing        by Sept. 4.

            report       PPT
     Galvin&#39;s statesthat                                                 of
                                      forecastswill fall short of projections a year ago and that
     PPT is not doing enough to stimulate investment.

     On one hand, Galvin&#39;s                                             PPT
                          forecastsfor scal year 2008, which began July 1, show       would
     generate $250 millionmore than the previoussystem, consideredoutdated for the North
     Slope production. still comes up $800 million short of what was predicted last year by
     former                           administration.
                  Frank l92/lurkowski&#39;s

     Last year, the state also underestimatedoperating costs that oil companies would be
     deducting, Galvin said.

     Some lawmakers, however, want to make sure the administrationisn trushing toward
     judgmentjustone year afterthe new systemwas put in place.

           know if                 timeunder present
     "i don&#39;t therehasbeenenough       the            said
                                                   system," HouseSpeaker
                                    FBI   Stevens 892

     Access         Display
          WorldNews:Document                                                       _                          2    3
                                                                                                              Page of
    &#39;1   r0                               0
     John Harris, R-Valdez. "But if the administration     agood                     system
                                                                          case that the              is
                  needs to be changed,then we
     broken, and it                          ought to tookat it."

     Harris                    unsolicited
                told Palin in an             7
                                             May               would
                                                   letter that he        support revisiting PPT
     should she deem it necessary.

     His letter followed the arrests of former lawmakers Vic Kohring of Wasilla, and Bruce
     Weyhrauch   and Pete Kottof Juneauon briberyand extortioncharges.

     All are Republicans  and chargedwithtaking bribesor extortingfavors in exchangefor votes
     on the oil tax lastyear.

     All three were arrested May   and have pleaded not guilty. They are awaiting trial this fall.

      The day after formerlawmakers were charged,Palin pledgedto take a look at the potential
      roleany malfeasance  may have had on the currenttax.

      Once the Legislatureadjourneda few weeks later, Palln announced her intent to have
                    PPT, possibly
      specialsessionon             outsidethe capital.

      Palin said she rst wants feedback from lawmakers on where they believe the session
      should be held. She wili ask Senate President Lyda Green and Harris to submit a
      recommendation Sept. 4.

      "The governoris right in that it&#39;s                        we
                                        incrediblyimportantcontent, but           need to have the
      specialsessionin Juneau,"saidMinorityLeader Beth Kerttula.

                                in                          want make decisionslike that
      "We have the infrastructure place,"she said. "You don&#39;t to
      when you&#39;re                  going                                   going
                 worryingaboutwhere you&#39;re to have an office or where you&#39;re to

      Palin has made severaltrips backto Juneausince the end of the session,includingtrips for
                  She has signed 62 billssince May 16.

      She has attendeda nationalconferencein Michiganand traveled overseas to                  Alaska~
      basedtroopsin Kuwait.

      For iawmaking,Palin said she understands that sessions held outside of Juneau are an
              issuefor thosewho cherishthe city srole as the capital.

      She said she is simplytryingto make the Legislaturemore accessibleto the public year-
      round and not renew a push to move the capital.

      That&#39;s she wants the legislators consideration for a site that has road access, which
      Juneau lacks, she said.

      "The desire by a lot of Alaskansto be able to participateand access their lawmakers via
      specialsessions      a step moving
                      isn&#39;t toward        the capitalout of the city of Juneau,"she said.

      "l keep repeating that, but i guess our actionswill have to speak louderthan words. That&#39;s
      our message."


      EXTRA HELP: statehopes hireconsultants review petroleum
                The        to             to       the           tax.
                                                            pro ts

      Page B-6
       <3aiI>li0 I                                                                       FBI    Stevens-893

                News: Document
           Access World                                                                    .Page                                      of

           Reports of corropiion shake Alaska delegations credibility -
           CRlTiCiS;li ; Stevens, Young      off questions and continue to work.
           Anchorage Daily News {AK}
           August 5
           Author; ERIKA
           eooisiao @ao&#39;n.com
           Estimated printed pages: 6

           it was just two days after Monday&#39;sraid on US. Sen. Ted Stevens house, and his
           colleague, U.S_Rep. Don Young, was at a press
                                                       conference     to attack a
                                                                                Democratic energy                                                     l
           hill. it was the rst time reporters were able to ask Young any questions since the news                                                    i
           emerged that ha, too, was under federal -investigation.                                                                                    i

           Young swaited away the inquiries. He didn&#39;t really up until he was asked about Alaska-
           related projects he inserted into afederal water bill - including money for a study of the
           proposed bridge across Knik Arm, a             to
                                                 project known       the rest of America as one of the
            bridges to nowhere." He grinned, happyto  answer questions about the millions of dollars he
           has squirreled away for his home state.

           "Uh yeah, ldid real well, Young said, before hopping an elevator and avoiding additional
           questions. Fmhapoy.

           These days, though, such boasts make many in hoth Alaska. and Washington cringe,
           especially as it becomes more apparent that two-thirds of the states congressional
           delegation is being investigated for irnproprieties connected with how they allocated federal
           money. Many people          have started to question how a delegation weakened by  criminal
           investigations and ethical concerns can continue to effectively represent a        since
                                                                                      place that,
           statehood, has depended on federal money and attention to thrive.

           NEWS REPQRTS       DOl92l T HELP STATE

           Even as she refused to speculate about          investigations involving her two colleagues,
           Alaska&#39;s other senator,   Lisa Murkowsld,   said she   realized that    the news      about the
           Alaskan delegation -as well as recent questions about the ethics of the Kenai River real
           -estate dealshe was involved with -- hacin tbeen good the state.

           "There has been a very intense media scrutiny on Alaska," Murkowski said. "And it&#39;s
                                       our own newspapers or hear about it on
           thing if you read about it in                                   the  6 dciock news. its
           another thing when you see the media reports coming out of New York and the Washington
           Post. We all want coverage to  be good about our stale. And lacknowledge that it is not
           particularly good news for Alaska."

           There was another development in Washington last week that had an effect on the
           cieisgation. The i-louse and the Senate passed an ethics oili calling for more detailed and
           transparent disclosures about earmarlts, the spacial spending allocations that have made
           the Alaska delegation so infamous its a  change that has made it inst alittle bit unsavory for
           Stevens and Young to    continue to brag, as Young once did in Z003 of an appropriations hill,
           that he "stuffed it like atorlrey."                i

           The Alaska that once appreciated such talk has changed in the past 48 years. said Willie
           Hensley, a former state lawrnaker and a iounder of the NANA Regional Corp. who now lives                                                    !
                       and     giovernmeni relations theAiyesita pipeline.
           in Washington handles                  for
           As the state matures, its leaders have to he cautious about how they look to the rest of the
                         said. That means theycan no longer affordto appear as though they re
           nation, Hensley

                                         FBI Stevens-894

           http://Zephyr. ci.anchorage.ak.us
                                                                                                           .d                    I

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          News: Wlotid
    .§&<;_c_ess Document                                                              .Page                       3
                                                                                                                2 of
    craveniy grabbing iederaimoney --                       he         hy
                                         and itsieaders can": tarnished ethicalprohiems.
    There is sirnpiy iesstoierance forsuch behavior,even thoughAiaska mightstiii need the
l   federal help, he said.

    "Alaska is somewhat fragile, he said. Oil isabout the oniy thing that pays its way, really. i
               we    a                                                       have
                       lot of room for error in our politicai judgments, and we     to have the
    best people we    in there, using theirjudgment and influence."


    Like Young, Stevens aiso has refused to taiir about the investigation, or directiy address the
    question on a tot oi peopie&#39;s Has the investigation become such a distraction that it
                         worit on hehait of the state?
    hampers his abiiity to

    His spokesman, Aaron Saunders, said in a written statement that "Sen. Stevens remains
    committed to working with members of the Appropriations Committee to   ensure    Alaska
    receives the same rights bestowed upon other states ~- the right to basic transportation,
                 water, essentiai
    clean drinking                               quaiity pubiichousing andother things
                                education programs,
    that Americans in the Lower 48 take for granted.

    And in tact, both Young and Eitevens havebeen busy. even with the distraction oi reporters
    camped outside their offices hoping theyii say something about the ongoing investigations.

    Stevens and Murirowski co-sponsored a resoiution to protect Arctic sheries. Congress
    passed aStevenseponscred hilt to direct more money to research in science, technoiogy,
    engineering and math. He introduced iegisiation to enhance chiid pornography enforcement.
                                     delegation approved sweeping ethics reforms in Congress.
    And he and the rest of the state&#39;s

    Young, who had prostate surgery and was out for a "few days in Juiy, jumped right hack into
    the iegisiative tray by attaching aDemocratic energy hiii as "energy suicide" on the House
     oor Saturday - as Congress went into an extended session. And as the former chairman of
    the House Transportation committee,he caiied on    the president and Congress to consider a
    new gasoiine tax that wouid        for uogrades to the countnfs infrastructure, improvements
    that Young said wouid        prevent tragedies titre the Minnesota bridge coiiapse-

    As                                                      posts,
                GOP iawmairers who heid i!OW6i&#39;iUi committee both Young and Stevens
    had already iost much of their in uence when Democrats took control oi Congress last fall.
    But their legacy of federal earmarking lives on Alaska.

    For years, Aiaska has topped the iist of states with the most pencapita iederai government
    spending. There is no uncieresiinnating the roie tederai spending plays in the states
    economy, said    Scott Goioismith,   an economist   with the   institute of   Sociei and   Economic
    Research at the University of Aiasira Anchorage.

    One third of Aiaskas economy is based on oii, another third is based on iederai govemrnent
              and thirdeverything
    spending, the tinai is              Goldsmith. FBI
                                eise, said                                                            _ StevenS_895
                          come intoAiaska areclearly a
    The federaldoiiars that                                             of
                                                      very important part the economy
                            in                                          trying
    and in uencethe economy myriadways," hesaid. "Justbecause they&#39;reto tighten
    up in generai on earmarks, those earmarks and grants in general are in jeopardy. and to the
    extent that gets squeezed. it has anegative effect on our economy."

    But Goidernithaiso points out something interesting about the iederai money that keeps one-
    third of the states economy a oat: its mostiy in the form of  everyday spending that wouid
    come to Aiaska regardiess or who is in oriice. it inciudes saiaries tor iederai ernpioyees such
                             spending, highway
    as postaiworkers. miiitarg                                                   to
                                             money andeven SociaiSecurity payments

    hrtp2/r zephyr.r:i.anoh0ragc,a.i<.us:2O69/iw soaroi1f92velIi1foWeb ?d___issuesearch===on&f__s
          News: Document
     Assess ihforldpiay                                                             tPage                            of
                                                                                                                   3 .>
     "iirirrch ofthe federal money that comes into the state is insuiateo or not realty very sensitive
     to the kind of probiems were seeing right now with our delegation," Goicismith said. Those
     come independent of what your legisiators are doing."

     SENSE OF       iiviPEl92iDii92iG FALL

     Politicatiy, manysmelt hiood.

     For the rst time in years, Rep. Don Young has a  chailenger with iunclraising juice: Jake
     Metcalfe, aformer Anchorage Schooi Board president and former head of the state
     Democratic Party, who announced his candidacy iasi week. Democrat Diane Benson, who
     challenged Young in 2808, is also running. There may be more. There s also serious talk
     about both Republicans and Democrats considering a run against    Stevens - people who
     wouldn t have dared take him on in past years.

     The delegations actions have consequences for the state, said Ethan Berkowitz, a
     Democrat and former state lawmaker who ran for iieutenant governor last year. Berkowitz is
     now considering abid for Stevens seat, and also has thought about running for Young&#39;s. He
     expects to make an announcement inSeptember.

     "As tong as                           there, Aiast<a s going to he
                       current delegation is                          cot      in
                                                                              up   the process,"
     Berkowiiz said. "in my judgment, theyre hurting the state. The national perception of Alaska
     is something we need to change."

     irtetcalte was in Washington test week and said it was scary to see the heariiines about
                      under investigation. saidYoung andStevens have
     Alaska politicians                 He                          been inWashington
     too long.

                     has    and i think theireffectiveness has
     "Their generation passed                                                in
                                                             reaily diminished the past
     tour years, he said. Part of that has to do          the Bemocrats taking over, not part oi it is
     the style of leadership.When you have the corruption andthe offices stained by whats
     happened, peopie don t believe government works for them. They believe it works for the
     specie! interestsand campaign contributors.

                    shift may
     That generational                  started within state&#39;s
                             have already            the                     with the
                                                             Republican Party,
     election last year of agovernor whose rst order of business was to pass an ethics reform

         agenerational shift thatsgoing
     "it&#39;s                    on,           but its also a                  going
                                                              values shift that&#39;s       said Gov.
     Sarah Palin.

                                                                                 poor example to
     The "culture of corruption" that has become ingrained in Alaska politics is a
     the rest oi the nation asthe statetries to be taken seriously innegotiations overnatural
     gas pipeiine, Paiin said.

     "We have to prove that we are responsinie, that we are trustworthy, that we are truthful no
     here." she saicl. Our actions have to speak iouder than our words."

     Find Erika Boistao oniine at a~:in.comfcontact!eI:>oistat:l.                              FBI - Stevens 8Q5

     http://zephynci.anchorage.alcus:2069/iw-search/we/InfoWeb?d_issuesearoh=0n&f subsectronr-=s
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   World                                                                                                       1 of
    The Alaska political corruption investigations
    Anchorage Daily News {AK}
    August5, 200?
    Author:Compiled DavidHelen and RichardMaser/Anchorage DaffyNews
    Esiimateo prinfeo pages: 6

    A broad federal investigation public corruptionhas been under way in Alaska for more
    than three years, althoughit didn&#39;t widely known until Aug. 30, 2006. Thais when
    teams of federal agents execuiedsearch warrants at the o ices of six state legislatorsand
    elsewherearoundthe state. The governmenthas since broughtindictments      and won a jury
                                                  continues,with grandiuries hearingsecret
    verdictand severalguiltypleas.The investigation
    testimonyin Anchorageand Washington,D.C. Last   week,      federal agents searched the
    Girclwood homeof U.S. Sen. Ted Stevens,drawingnationalattention.

    Auihorities                                                                     headed
               have said very littleabout the overall shape of the inquiry,where it&#39;s or
    what&#39;s invesiigatecl.        s
                             l~lere someof whats known:

    WHO      THE
             CONDUCTWG                iN 92/ESTIG/5.TlONS&#39;?

    ifs losing by the Fill, the lRS and the LLS. Justice DepertmenifsPublic integritySection
    from Washington,D.C., which focuseson governmentcorruptioncases. Two prosecutors
    fromthe alaslra U.S. AttorneysCil cehave been assignedto the effort.

    CHARGED        AND AWAlTii92iG TRlAL

    FormerAlaskaHouseSpeakerPele Knit of Eagle River. indictedin May on bribery,extortion
    and conspiracy                                  payoffsand a promiseof a iob from Vacs
                   charges,Kotl is accusedof ial-ring
    to help push an oil-production favored by the inclustnr
                                  tax                       through the Legislaturein 2006.
    Asidefrom cash, has accusedof beingpaid a "fraudulently  iniiated"fee by Veco for flooring
    work and a promise a futurejob. He pleadednot guilty.Trial is scheduledfor September.

    FormerRep. Vic Kohring Wasilla.The chairmanof the Special Committeeon Oil and Gas
    was indictedin May on bribery,extortionand conspiracycharges, accused of taking cash
                         executivesin exchangefor supporting company s
    and a loan from 92/eco                                    the            positionon the
    oil tax. memberof the Legislature                       he
                                      when indictedin l92/lay, later resignedunder pressure
    from constituentsand RepublicanHouse leaders. He pleaded not guilty.Trial is scheduled
    for October.

    Former stale Rep. Bruce Weyhrauch of Juneau. Charged with bribery, extortion and
    conspiracy,Weyhrauch is accused oi switchinghis vote on the oil lax after receiving
               from Koriand BillAllen. i~le also accusedof soliciting
    instructions                            s                        work for his legal practice
    from92/eco exchangefor hisvole. He pleadednot guilty.Trial is scheduledfor September.

    PLEADED GUll.TY                                                                             -
                                                                                                FBI   Qtgveng-8§}7

    Longtime decoBill
                 CEO             Allen. He pleadedguiltyin May to charges of bribery,extortionand
              for          with
    conspiracy hisdealings fourlegislalors:                           Weyhrauch
                                           formerReps.Pele Koti,léiruce
    andVicKohring, former                {described thepleaas "StateSenator }.
                            Sen.BenStevens        in                       8
                            Stevens notbeen.Allenalsoadmitteda
    Thefirstthreewerecharged;      has                        paying "l>onus in
    companyfundsto executives illegalcampaigncontributions 2-385and
                             for                         in                                   For more
                   he a
    thantwo decades, was                            fundraiser Alaskapoliticians. resigned
                                       maiorpolitical        for               He
    fromVeco alter hisguiltyplea and awaitssentencing.

         vice         Rick
    92/eco president Smith,      whoranthe compangrs  government                He
    workedpartof the year out of a suitein .iuneau s     Hotelthat was beingsecretly

                     .                          .     1ssucsearch=on&f
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         News: Documsnt8spiayPage
    Lsccésp World
        monitored by the FBL in May he pleaded guilty to the same charges as Ailen. i-is admitted,
        with Alien, to making more than $489,980 in payoffs to elected otiiciais and illegal campaign
        contributions. Resignedafter plea, awaits sentencing.

        Lobbyist Bill Bobrick. is longtime ioobyist at the city level and one-time head of the Alaska
        Democratic Party, he pieaded guilty in ittay to conspiracy for bribing Anderson while working
        for aprivate prison company, Cornell Cos. He testitied against Anderson and is awaiting

         TRK-ED AND COi ~i92r iGTED. AWNTINGSEl92lTEl92 CiNG

         Former Anchorage state Rep. Tom Anderson. in December, he        became      the rst person
         charged. On July 9, federal jury convicted him on all counts of bribery, conspiracy and
         other charges connected with taking payoffs from Bill Bobrick, alobbyist for aprivate prison
         company. Anderson worked as a                           the
                                          consultant for 92/ecc, oil field services and engineering
         company at the center of the broader investigation, although none of the charges against
         him concerned Veco. It was revealed during his trial that federal agents were investigating
         corruption in the Alaska Legislature asfar back as early                    sentencing.
                                                                       He&#39;s awaiting

         OTHERS CONNECTED            WlTH THE      ll92l92/ESWGATIONS

         U.S. Sen. Ted Stevens. He has represented Alaska            1968 and is the most senior
         Senate Republican in history. Stevens has come under political attack recently from scal
         consewatives and others for his use oi earmarks to direct programs and money to Alaska.
         Some of the earmerits bene ted his         son Ben and aformer             aide, Trevor       iiictlaize, and   their
                        Alien s
         clients. 92r&#39;ecooversaw aconstruction project in 2008 that doubled the size of Stevens
                                                                        least some of that wort: was
         Girdwood home, and investigators have been trying to learn it at
         an irnpropergift.

         Former state Sen. 8en Stevens. inhis piea agreement, Allen admitted making improper
         payments of $243,250 to "State Senator B" -- an unmistakable reference to Ben Stevens, the
         former state               Ben Stevensottice wassearched inthe August2l3l36 raids
                     Senate president.
                                     Fi3l agents seeking information about his fishery interests and
         and was later visited again by
         bene ts he may                                           his father. He was paid hundreds
                                received from legislation written by
         of thousands of dollars as a   consultant for various commercial fishing companies and
         groups, and chaired a  federally funded panel, created in an earmark by  his    father, that
         awarded grants to some of those entities.

                                              sole                          Young
         Li.S. Rep. Don Young. Alaska&#39;sU.S. representative since i9?&#39;3, has been widely
         reported to be under investigation over his own ties to Veco and use of earmarks, aithough
         details of what is being examined are unclear. Since 1989, he has received more than
         $212,000 in                 from Ailen,Smith andother Vecoexecutives, making
                    campaign donations                                              the
         company by tar                                          aides
                           his top contributor. One of Young&#39;s has pleaded guilty in the Jack
         Atzramoti lobbying scandal, and Young himself has ties to the lobbyist. Young has come
         under political attack for adding earmarks to transportation legisiation that would bene t a
         Wisconsin trucking company and a    Fioricia real estate mogul, both oi whom contributed to
         his campaigns. Young recentiy reported spending $282,800 in campaign funds on
         unspeciiied legalfees during the rst six months of 290?.

                          Seward native and former legislative director to Ted Stevens. he became
         Trevor i92licCei:e.
         partner in aconsulting business with Ben Stevens, and iohoieo tlongress on behalf of a
         Southeast salmon group that obtained federal funds from Ted Stevens. An attorney and
         iohbyist, it-*icCabe representedother seafood interests as well. With two partners.
         ivlctlabe soid property to the Aiaska Seal.ite Center in Seward at aprice substantially above
         its appraisal after Ted Stevens providedthe money in an earmark.

         Frank Prewitt. Former state corrections commissioner              who became        a consultant         to Cornell
         Cos., aprivate prison company that wanted to buiici alarge                   prison in Alaska at one time
                                                                                                 FBI      Stevens~898

        http://zephynci.anchorage.ak.us:2069/iw-search/weflnfowcb?d__issueseaxch==on&f subscct1on=s
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i,_Acce s§ World
                         tPage                                                                                  of
 teaming with Veco!. Prewitt was being investigated by the FBI in 2004 when he agreed to
 work for the government to root out corrupt legislators and lobbyists. He passed out money
 and recorded conversations, providingthe foundation for the Anderson case.

                                                                      of oes
 Sens. John Cowdery, R-Anchorage, and Donald Olson, D-Nome, also had their
 searched in August 2006, but have not been charged.

                          WlTl-l     lN92/ESTlGATlON$

 Veco Corp.        oii eld services and engineering company that  operates     extensively in
 Alaska and elsewhere, Veco has been among the most   politically    active companies in the
 state for years. It has lobbied in Juneau for legislation bene cial to the oil industry and
 aggressively supportedpro~development candidates Alaska and Outside. Since 2000, the
 company received more than $40 miilion in federal contracts, according to the database
 FedSpending.org. Allen         Smith are the only two 92/ecoexecutives charged. While Bill
 Allen has stepped down, his family still owns a  majority of the company. Denver-based
 CH2M Hill is in negotiations to buy it.

 Alaska SeaLife Center. The Seward research center and visitor attraction was built, in part,
 with settlement money        the Exxon Valdez oil spill, and run with heavy federal nancial
 support engineeredby Ted Stevens. Investigators are examining a deal in which the SeaLife
 Center bought property from former Ted Stevens aide Trevor l92/lcCabe     and partners at a
 price             above its appraisal after Stevens provided the money in an earmark.

 Alaska Fisheries Marketing Board. Created by Sen. Ted Stevens in 2003 to boost the North
 Paci c shing industry, the nonpro t has distributed some $30 million in federal money to
 seafood companies and other entities to promote theirproducts.     Ben Stevens served as
 chairman of the board until                                                awarded
                                    year, and while he was in that role the board
 millions in grants to groups that paid him consulting fees. Last November, a grand jury in
 Anchorage issued subpoenas to several North Paci c seafood companies and groups
 demanding records on their dealings with the marketing board, Ben Stevens, MoCabe who
 also sat on the board! and others.

                                                                                       FBI      Ste-vens 899

    News U
Ange? litrorid &#39;                                                                        .Page                                   of
  ank,I,., diocese tttt oi !d fdeoss
Paper: Anchorage Daily News AK!
Title: Kohring   asked to step aside -
SCANQAL: Corruption charges against Wasiila representative taint other lawmakers. some say.
Date: June 5, 2807

House leadershave askedRep. VicKohrlng toconsider resigningbecause of his indictmentin abribery scandal, as pressure inthe
                district mountsremove him fromoiiioe by special election.
Wasilla lawmakers             to

House SpeakerJohn Harris,R-Valdez, and                 Leader RalphSarnuels, R-Anchorage.
                                      l-louse lvlaiority                                   said they relayed to Kohnng last
                                  that thecorruption scandalis
week theconcerns ofteiiow lawmakers                           tainting them all.They met with Kohnng in his Mat-Sn home.

A federalgrand juryindicted Kohring  last monthas part of a wider corruptionprobe. Prosecutorshave accusedKohring, aRepublican,
of sellinghis voteon the state petroleum lastyear to the Anchorageoil lieid services company92/ecc Corp. Kohring andtwo former
legislators alsounder indictment              not
                                have pleaded guilty.Veco executivesBill Allen and Rick Smith pleadedguilty to conspiracy,
bribery" and charges.Allen andSmith havesince resignedfrom 92!eco_

Kohrings trial is           to begin Oct. 22 in Anchorage.

Samuels said andHarris approached   Kohrlng toshare seriousconcerns expressedby several other lawmakersregarding the
                           was havingon the puhlids trust in the Legislature.
impact thecorruption scandal

"We didnt goout there totry andforce himto resign;we lust want to make surehe understandswhere his colleagues areat with the
                 said, addingthat Kohringwas still innocent untilproven guilty.
situatlon," Harris

                                expelling Kohring
Harris saidhe was not considering               from the House atthis/time.

But inWasilia, public            led                                                         Tsshirtsaies.
                     pressure has to a call for his resignation andeven inspired Recall vi-2,"

Wasilia CityCouncilman Mark Ewing lastmonth begangathering signaturesfor an application requestinga special election tostrip
Kohring ofhis Houseseat. Theapplication for recall must haveat least 709 signaturesbefore the state Divisionof Electionswill
review it.Ewing saidvolunteers had                the
                                  already collected required minimum butplanned to double the amount in ablitz weekend"
before ling it nextweek.

               us                        in        stable and trusted,"Ewing said. A lot of his supporters whogave him
The focusis lo gel some representation Juneauthat is
$580 everytime heran aresigning thisthing."

Getting the709 signatures only the rst of severalsteps that must be completed beforea
                         is                                                          recall election wouldbe held.

it the Division ofElections approves recallapplication, Ewing   would then need to collect at least 1378 signatures -equaling 25
percent oithe votersfrom thedistricts lest election. Theelections divisioncould orderaspecial recall electionalter this second setoi
signatures is in hand.

Gov. SarahPalin, whois fromWasilla, saidlast monthKohring shouldstep down.As governor, Palin would appoint anotherRepublican
to replacehim if he resignedor is recalled.

Kohring saidMonday thathe wouldrespond onlyto questionsfor this article that were e-mailedto him.                                 the
                                                                                                             then did not respondto
e* a=*- FBI                                                                                                   Stevens-906
Kohring was                                        said. Kohringresponded openlyto the discussion, sayinghe continuedto
           aware offellow lawmakersconcerns, Samuels
labor over what would be the best for him, the Legislature and his constituents, Samuels said.

            of                                                                 Even
 t~le s aware the situation thathe s puthimself andeveryone elsein, Samuels said.                                            the
                                                                                                 he did nothing wrong, thereis
negative perceptionthe public thataffects thewhole institutionoi the Legislature."

               Monday that expectedto have t<o&#39;nring s decisionfew days on whether he will retain his Houseseat or
Harris indicated         he                                 within a                                                step

if he resigns, itwould removehim fromparticipating inaspecial legislative sessionto revisit the oil tax that is tentativelyscheduled for
this tall.

                                                                                       n4 ---lsooo-in
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A@Q6iS_W0r1d News                                                                                                         of 2
Palin                                                                            executives
                      that shewould cailfor the special sessionshortly afterthe 92/eco                on
                                                                                              pleaded guilty        to
                                                                                                               May 7 bribing
           their on             tax
lawmakers for votes the petroleum
        the  said the
 Palin at time      corruptionsurrounding
                             probe                                        tainted the and
                                                          the taxdebate had         law           question if wastheright
                                                                                        called into        it        tax
 law for the state.

                have questioned it would beappropriate forKohring toparticipate in
Several lawmakers              if                                                the debate again,given the allegations
against him.

       a                 it
"l havestrong feeling that won&#39;tat
                              be anissue that point,"
                                                           regarding l<ohring s presence fall special
                                                                                      in             session. "l
         seeadecision here pretty
think we&#39;ll                            or
                                soon. Whether notthat&#39;s be himsaying he step
                                                      going                 will                      decision."
                                                                                   down isultimately his

          reporter Sabra
 Daily News            can
                      Ayres                       at             or
                                         be reached sayres@adn.com 1-907-586-1531.
 Photo 1: VicKohring_060507.jpg

 Copyright c!2007, AnchorageNews

Author:    Anchorage
      SABRA                         News
                                    Daily      Staff
 Section: Main
 Copyright c!2007, AnchorageDaily News

                                                                                                       FBI     Stevens 901

 http://Zephyr.cianchorage.ak.us:2069/iw-search/we/Inf0Web/?p__aotion=print&p_docid=1 1999133
§:;coessq92» ¢&#39;o1 ld News
            0              0                                                                                                                 3
                                                                                                                                           t of

           World literate
i Nes/;s% an!c;,s siccess
Paper: Anchorage Daily News {AK}
Title: Anderson trial   with iury selection -
EX-LAWMAKER: Prosecutors          plan to play tapes that record    alleged influence-peddling.
Date: June 25, 2007

tapes secretly recordedby a federal informant will nally become public whenthey are played forjurors being chosen todayto nearthe
corruption case against formerstate Rep.Tom Anderson.

Jury selectionis set for this morning asAnderson&#39;s             on sevenfelony counts that include oritrery, extortionand money

The trial is expected to take two weeks, half for each side.

            first real testof the prosecution team
lt will be the                                     handling corruptioncases againstfour former or currentAlaska legislators.The teem
is led bythe U.S. JusticeDepartmerrts Public   lniegrity Sectionout of Washington, D.C.,and includes two assistant ti.S. attorneys
based inAnchorage. Anderson the rst to go to trial.

Prosecutors have outtheir casein a29~page trial rnemoranclumthat provides new details.
                 Paul Stockler, whois
Andersons lawyeris                                   government
                                     ghting to keep the                        from showingcertain documentsto the jury, such as
Anderson&#39;s tax and credit card bills.

"He di<in agree toperform anylegislative actsin exchangefor money, and the government isnot going to be able to prove that he dict,
said atockler, who has listened to           oi hours of recordings.

            was                                  in
Anderson, 311!, electedto serveEast Anchorage the House in                           He     run last
                                                               2002 and again in 208%. didn&#39;t year. Hiswife is state
                                       is                           case.
Sen. LesilMcGuire, andtheir relationship an issue in the government&#39;s


The prosecutionAnderson
              says               was partof a                 former
                                             scheme initialed by             lobbyist Bill Bobrick to funnel paymentsfrom aprivate prison
company to Anderson.

                 that Anderson
Prosecutors assert            sold his legislative ot cefor $ l2,828 to help the private prisoncompany.

While Bobrickis not named inthe Andersoncourt documents,hehas pleaded guiltyto asingle count of conspiracy tocommit extortion,
bribery andmoney laundering and agreedto testifyagainst Anderson.

                               clients with city business outgave them up after his guilty plea
Bobrick foryears hada longlist of

in a                 the
    written snowman; of case,prosecutors saywill
                                             they     rely on recordings madeby acon dential source" in Z864 and into 2805.
They         named thesource, butFrank Prewitt, former state correctionscommissioner, con rmed it was him. After leaving his
state post, Preoitt became acontract   consultant for Cornell Companies, aprivate     prison rm based Outside.

                             that he&#39;ll
Prewitt saidin a recent e-mail                               talk furtherwith the trial so
                                     be testifyingbut couldn&#39;t                       near.

in summer2004, Prewittwas workingas acon dential source on other, unrelatedinvestigative matters,"the prosecutionsays without
providing further

On July lo, 2004,Bobrick leftamessage on Prewitts machine toask whetherthey could try with Cornell to help out Tom Anderson."

in ameeting     ve days later, Prewifl asked "what could Tom do?" Bobrick answered "be our boy in Juneau." He said he planned to
       political newsletter,which
create a                    he                                                                    set
                                       later saidwould be published onthe Internet.Anderson would help           it up and write for it,
Bobrick told Prewitt.

The real question, Prewitt said, was what can Anderson do for Cornell i"

Oomeil wasnot awareoi the bribery scheme Prewitfs role in the undercoverinvestigation, theJustice Departmenthas said.

We LEC-whereas                                                                          FBI -Stevens 9{32


          --».-..-~                       _
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                                                                                                       ---                                 ._.._...-__4.-_.......i....,.__

                         News 0                                                                    t                                  3
                                                                                                                                    2 of
Y        Bobrick
               noted        romantic
                    Anderson&#39;s relationship anotherlegislator saidCornell
                                              with              and      would                           you
                                                                                    "gettwo legislators!-- know,Chairof
i        LaborandCommerceAnderson!, Chairof Judiciary
                                   and              {otheretectedoi ciai} that&#39;s
                                                                               the minimum      going
                                                                                          we&#39;re to have nextyear."
                thana staterepresentative,
         McGuire,                       chaired         She
                                               Judiciary. and Anderson       in
                                                                      married 2085.
                 An-:&#39;erson sattorney.
                          defense        saidhe s
                                                stunnedthatthe prosecutionup
                                                                         brought                                                i
                                                                                                  McGuirebecausehe saidshe hasn done

             at a ioss        would
         "l&#39;m as to whythey                             memo,"
                                      putthatintothe pretrial     Stockler         imagine
                                                                         said. Youcan                        what effectthat had in that
         householdas I&#39;mto get Tomreadyfor trial.

                            the           is to                 oi
         Oncethe tristbegins, prosecution expected ptaysnippets the tapesmade by Prewitt.Stockter saidthe defensewit!pushto
         get ionger different
                  or        sections the recorded
                                   of                       beforejurorsso they have a morecomptete
                                                conversations                                             or
                                                                                                   picture Anderson.

                    Stoctder a motion oarthe prosecution
         On Thursday,      tried     to                fromusingAnderson Visa statements,
                                                                         s              bankrecords,            and
         tax returns.

                     relevancethis typeof evidence substantially
         "Anyminuscule       of                  is                     by                           and confusion
                                                               outweighed the dangerof unfairprejudice           of
         issues,"Stockler wrote.

         Prosecutors notreturn
                     did             tast                         describes eariydays of the atiegedschemeand iistsa variety
                                catts weak buttheiririai memorandum       the
                  acts theyctaim
         of otriciat            Anderson          for
                                          performed money.

         PUSH FOR FEA$¬Bii..lTYSTUDY

         in an Aug.17, 2004, meeting withAnderson,
                                                 Prewitt                                             but
                                                                                                 and Bobrick would needAnderson
                                                        said he couidpay $24,000 to the legislator
         to further        interests               in          Cornellneededhelp pushing state Department Corrections do a
                   Cornell&#39;s in the Legislature. particular,                           the               of         to
                   study a private
         ieasioiiity    for        prison.

                said     cait           commissioner October
         Anderson he ooutd thecorrections         in                         you have thisfeasibiiity
                                                           and say "inNovember                      study}done,"
         according to the triat meme.

         Altthemoney     go      Bobrick,
                    shouid through             said.The AlaskaPublicOt oesCommission
                                        Anderson                                   "oniyneedsto know{"Lobt>yistA"}
         pays me and then were always safe," Anderson is quoted in the trial memo as saying.

                2004, Prewitt
         On Oct.20,           askedAnderson heipchangingruies on halfway
                                             for           the               houses.Cornet!wantedto minimizecostsby shifting
         inmates staffing.rutes
                and      State                       minimat
                                   at the timerequired                    of            of
                                                           sta ingleveis,regardiess the number offenders.

                            taxeda letterto then~Correotions
         The nextday,Anderson                                        MarcAntrimon tegisiative
                                                          Commissioner                                The ietterdrewfroman
         e-rnati draft provided by Prewitt. Anderson asked for a meeting witti Antrim about budget chaiienges for the private contractors."

         A day afterthat,Prewitt             of                   to
                               madethe second three$8,000 payments Bobriok, whokepthaif or moreof the moneyeachtime.Later,
         afterAnderson complained                    madea separate$2,000 paymentdirectly him,prosecutors
                                 abouthisshare,Prewitt                                  to               say.

         Aii the money was provided by the FBL

                           met         in          iegisiative
         On Oct.29. Anderson withAntrim hisAnchorage         officeand talkedabouthaiiwayhouses.

               month,     sat  with   and his                 ofthe
                   Anderson down Prewitt described understanding retationship.
               you                            and,                                   want that.You want votesin the
         "Unless wantme to quitthe Legislature! you know,workfor you.But no, you don&#39;t
         Legislature, would assume," Anderson is quoted as saying.

           course, responded.
               Prewitt                                                                                           &#39;
                                                                                                                 FBI SteVenS 903
         One project
                   Corneti    heipon was a pianned
                         sought                  residentiei
                                                           psychiatric       centerin Anchorage.
                                                                     treatment                 The centerto treattroutzied
         youths required a state certitioateoi need.

                testi ed a puhtio
                       at       hearing Anchorage Nov. £7,
                                       in       on              which stateofficials
                                                         2004. at                                 competing
                                                                                   were considering       applications
         to       a center.

         Anderson told the crowd that he didn thave a connection with either group.

                        t                         and                  and work, and certainty
         "SetwithCornet}. havemet withadministrators see howtheyfunction                     couidendorsethemto thatend,"
         Anderson              to          of
                 said,according a transcript thehearing.

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       <i;ooss92Wor1d News
                 0                                                                              Page
                                                                                                b                         of
                                                                                                                         33 -
       Find Lisa Demer online at adn.com/contact/Idemer or cal! 257-4390.
       Photo 1: Anderson.1_062507.jpg

       Copyright ! 2007, AnchorageDaily News                                                                     ,

       Author: LISADEMER                  Staff
       Section: Main
       Page:A 1
       Copyright c!2007, AnchorageNews

                                                                                                    FBI   Stevens 904

                                               InfoWcb/ ?p__action=p1int&p_dooid=1 1AO35
       http 1//zephyr.ci.anohorage.ak.us:2069/iw-search/wd                      9/26/2007
--a V                    *..._-..._.._..e_a_ _                                         __.
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    Access World                                                                               Page                                 of

      anK;,.. Access World News
    Paper: Anchorage Daily News {AK}
    title: Corruption triat uncovers FBi mote -
    DON STOLWORTHY:                                         help."
                            Deputy prisons chief was "glad to
    Date: July 1, 2007         -

                             commissioner whose
    A formerdeputy corrections                 name cameup Friday in the Tom Anderson corruption triatwas workingas an
                the               asked a
    informant for F8! in 2004when he       prison company consuitantfor money,an F8-tspokesman saidSaturday.

              Cos.        Frank  testified Friday he
    Former Corneii consultant Prewiti                               commissioner Don
                                               that worked with deputy                       year
                                                                                 Stoiworthy that to
    developa compromise on competingbiils to build a new prison.One measurecould have led to aCorneil~run prison in Whittier. The
    other, supported theMurkowski administration,  pushed astate-run prison in the Valley.

    Prewiti,a                               in
             state corrections commissioner the 1990s, iestitiedStolworthy toldhim he was worried about losing his job because of
                     to private prison. Prewitt
    union op;-osition a                                                                                                      .
                                               said he assured Stolwnrthythat people would be there for him" ii that happened Prewitt
    into iurorsthat Steiworthyeventuaily began seeking money,as a sort of insurance poiicy,if he iost his job.

    But heonly didthat becausethe F53asked himto, FE-ispokesman EricGonzaiea saidSaturday. Stolworthywas workingfor the F83as
    a "cooperatingwitness, hesaid.

     We approachedhim outof the blue," Gonzalez          for
                                               said. "Weasked                                    be glad
                                                                         his help and he said he&#39;d to help us."

                 squeaky ciean, Gonzalez said.
    Stolworthy was

    The factthat Stoiwcrthywas workingundercover tor FBi never cameup during the triai on Friday.

                    -that was
    Prewitt iesti e-ci he          shocked thatStolworthy wasasking for money and read him the ethics act.

                        what evidence may have collectedon Prewittthrough Stolworthy.But in his opening statement onWednesday,
    The FBIwon&#39;t discuss           it
                     Joe Bottinisaid that Prewitt mayhave tried to improperlyinfluence a
    federal prosecutor                                                                  state corrections of cial.

    The mattercame Up  because Prewitt thegovernnients star witness inthe corruption case against Anderson, s former state
                                     is                                                                                                       l
                          attorney PantStockter cross-examined
    representative. Defense                                  Prewitt on Friday about possible iilegaiactivities in his backgroundand
                on                                            to
    pressed him whetherhe wasinst testifyingagainst Anderson save himseii.

    Efforts toreach Sic-lworthy 8aturdaywere unsuocessiui.  When the state issueda statementannouncing hisresignation inJanuary
    2005, itsaid heaccepteda job for the U.S. JusticeDepartment aswarden oi aprison in iraq.

                resumes                   cross-examination ofPrewitt continues.
    Anderson&#39;s trial MondayStocl<ier&#39;s

    Find Lisa Demer ontine at adn.comicontactfldemer or eati 25?-4390.
    At. GFSLLO IThe Associated Press

    Former state                  and
                Rep. TomAnderson,isii,           attorney PaulStookier walkthrough the Federai court building in Anchorage iastweek.
    Graphic 1 Anderson_Trial__AKAGiQ5_070107.eps
                                                                                                         FBI     Stevens 905
                2007, Anchorage
    Copyright {0}             Deity News

    Author: USADEMER io emer@adn.com  Stan
    Section: Aiaska
    Page: B1
                              Daily News
    Copyright ! 2007, Anchorage

    httpr zeph»rr.oi.m1ct1orage.ak us:2069!iw-seat-o
       _1                              1AJ0
                                          .     t                                          2
                                                                                           V                                           O
Ac                                                                                                                           3
orass, i 0News
 0   I1                                                                                0                              Pagei. of

 nkL¢                                        i/iforid
                                        riiccess News
Paper: Anchorage Daily News AK!
Title: Bobrick tails of Web scam -
ANDERSONTRlAL:The legislatordid nothingfor communitysite but was paid anyway, jury hears.
Date: Juiy 4, 286 ?

On the stand a second in iederaicourt
            for      day                                 Biii                              a          Web site
                                    Tuesday,formertoohyist Bohrick toidjurorsthat his ideafor poiiiioai
started as a reai businessventure in 29% with themstate Rep. Tom Anderson.

               to                           or                it          ended up thatway, Bobricktesii ed.
it wasntsupposed be a way "tobribeTomAnderson channelhimfunds.But certainly

Ultimately, onlyreal purpose
         its                was to disguise        to      he jurors.
                                          payments Anderson, told        Anderson   neverdid any realworkforthe Web
siteandreceivedmoney "for
               the                           said.
                          being a legislator,"
                                             Bobrick   The Web site never got offthe ground.

Prosecutors                   caseagainst
                theircorruption                   on             after callingeightwitnesses
                                         Anderson Tuesdayafternoon                         overfourdays.The triai
beganJune withjuryselection, whichtasted2112days.

Prosecutorscontend        Bohrick s Wei: site business was used to funnei payments from a Cornell Cos. consuitant to Anderson so
thathe woutd thecompanys
            do         bidding haiiwayhouses. iuveniietreatment
                             on             a                        e               Anderson
                                                              centerand privateprison.      facesseven
feiony counts.

Bobrici:has pieaded     to         and                   with           in                          sentence.
                   guiity conspiracy saidhe is cooperating the government the hopeof gettinga tighter

in all.Andersona                                       aboutvarious
              received totalof $25,838,basedon testimony           checks.

That&#39;smoremoney                  disclosed. chargeslist$12,838 in payments Anderson.
                    thanwas previously        The                            to        The FBI actuallyprovided
the money.                of            the        has
               was unaware anyscheme, government said.

                    for             appeared
Bobrick.a mainwitness the prosecution.      drainedbutcairnduring                and thenaggressive
                                                                 hoursof testimony                cross-
examination.                                            .

Defense       PaulStockler Tuesdaypushed
       attorney            on                                                     to            the
                                            Bobrick on whetherhe turnedon Anderson save hirnseii, someapproachhe
usedthe daybefore                        FrankPrewitt,a formercorrections
                 withthe otherstarwitness,                                         who
                                                                        commissioner thenbecamea Corneii

                                          in              Bobricksaid.And he may go to prison
"i lostmycareerof 20 years.l lostmystanding thiscommunity,"                                  even yet.

"My ispretty
           much           of
                    because mystupid,
              wrecked                      actions,"
                                    reckless            said. saidhe made a
                                                  Bobrick   He                         a
                                                                         $200,000 yearas lobbyist
      the      Assembly, no more.
before Anchorage       but

                       with                                              he                      his houseand
Bobrickbegancooperating the F8l soonafteragentscaliedhimin testSeptember, said.They were in frontof
cameinto piayrecordings conversations.
                      of            Prewitt
                                          had secretly              as             source" the FBI.
                                                      made recordings a "coniidentiat     for

 treaiized haddonesomething wrong t                            Bohrick saidas prosecutor Bottini
                                 and neededto do the dg;htthing,"                      Joe              him.He
saidtater    he had made tremendous                 he
                                                   When thought Web sitewouidbe tegitimate
                                    errors §udgmeni."
                                          in                      the               a          businesswiui
Anderson, he was in deniai," he said.

                  othertroubies. saidhe onceaskedhismother mat-ze campaign
Bobrickacknowiedged            He                        to     a                    thenfelt bad aboutin so he

He alsosaidhe worea wire,butprosecutors     introduce                    His                         requires
                                        didn&#39;t any of thoserecordings. agreementwiththe government      him
to cooperate "testify          he
                     truthfuliy," said.

Basedon howhe does,prosecutors ask. U.S. District                            to
                                                 CourtJudgeJohnSedwick give him lessthanthe estimatedsentenceof
24 to 30 months conspiracy. theway hislifeis going, i tuilyexpectto be hit prettyhard, Bobrick said.
              for        But

      the          he                         up
During investigation, said,the FBi wouid"check on me to makesurei had notkittedmyseit.

THE BOGUS          StTE

                                  newsietter to havestringers overAlaskawriting
The ideawiththeWebsiteor eiectronic        was              ail                                     Bobricktoid

                                                 "              -
                                                                FBI    Stevens-906

     News U
Access World
    L. .."      r                                                                          0Page                                       of
iurors. Companies Comeltor thedeveiopers oithe Pebtaie      buy
                                                       minemight                             pay
                                                                                subscriptionsor      to advertise on it. State andtederai
issues wouid airedtoo. Andersoncould givethe view from Juneau.

Wasn&#39;t it project, with
      a                    Anderson being         work?
                                         paid forreai                     time
                                                                Stockler asked       and again.                                             I
"I wantedthe Website to be                                  wake                          going
                                   Bobrick said. "... ldidn&#39;t up one day thinking, &#39;l m to bribe TomAnderson. "

                            work, Bobrick said: no stories, noadvertising contracts,no invoices.nothing.
ButAnderson neverproduced any                                                                                              .

Anderson had haveknown hewas beingpaid forhis in uence as aiegisiator, not ior the Web site, Bohrick testiiied. "At the end oi
          he had,"
               ati    who iurors he urged pass oar exam
                           toid had Anderson tothe so c-Quid practice
::Z <§;:£hat s said Bobrick,                         he           do
                                                             law and
Bohrick said he didpay twopeople toget the protect going.A tegislativeaide to Anderson waspaid to research viiieges,towns and
boroughs asa first step to nding stringers.

                     the                                        received $1,000as a
And Ken Erickson, now Webmaster forthe House Republican majority,                  partial payment todesign andbuild
the Web site.

                 Tuesday thathis maincontact onthe projectwas Bobrick. But he admitted underquestioning by
Erickson testified                                                                                      Bottini                that
                   detailed invoice ailer the fact. in September 2005. he said, he submitted one hackdated to Dec. 27, 2004.
Anderson requested a

He said he designed the site so that peopie without technicai sioiis      easily submit their stories. But the oniy story that ever ended
up on the sitewas onewritten bystate Sen.John Cowdery,R-Anchorage, thatErickson saidhe put on the site just to show it worked-
tie checked heck two or                but
                              times a year,     no one had contributed.

i gured the protectwas deador moribund. Erickson said.

Out of 100 orso Websites thathas designedfor people over the years, thisis the rst one that zzied after money              invested.
though maybe  half dieduring thetaiking stage,Erickson said.


                           asked witnesses
Aiso on Tuesday, prosecutors             about Comeifs push to open atresidential psychiatrictreatment centerin Anchoragefor
emotionaiiy troubled kids.

                 iobbyiet for Cornellon the proiect, toidiarors that he asked
Eobrick, who was a                                                       Anderson          to testify at aNov. ti. 2604, puhiic hearing
about the proiect.

Anderson signed on behalf ofhimseif andnever acknowiedgedhis nancial reiationship withComeit, David Pierce, withthe state
Department oi                         told jurors.
             Heaith andSociai Services,

Twice in his testimony            Anderson
                      that dayin 2004,         said he had no connection tothe competinggroups seekingto open atreatment
center. Buthe said could endorse                   he
                                    Cornell because had met the administrators andknew how they worked.

                         The defensegets itschance to call witnesses.
The trialresumes Thursday.

Find Lisa Demer online at adn.com. contaci;iiden1eror cail 257-4390.

Anderson trialat a glance                                                                               _

THE DEFENDANT: Torn Anderson, 39, represented East Anchorage in the state House irom E003 untii this year. He did not run in
2006.            I

           Three counts moneylaundering, twooi extortion and one each of bribery andconspiracy.
THE CHARGES:           of

THE CONSPIRACY:                      say
                   Federal prosecutors Andersonparticipated inascheme in which he agreed to do the bidding of the private
prison rm Cornell Cos.in exchange money.

THE CO-CONSPRATOR: Lobbyist Bill Bobrick pleaded guilty in May to a       single count of conspiracy. He set up a company reportedly
to produce apoiiticai Web site for which Anderson wouid write. Prosecutors say it became a sham used to funnel payments to

THE T iht. SO FAR;The triatbegan June25 withjury selection. The prosecutionrested its case Tuesdayafter settingeight
                                       Bobrick and Frank Prewiit,Alaska correctionscommissionerin
over fourdays. Maingovernment witnesses:                                                          the 1990s andthan a
                  Working undercover the F81, Prewittmade ah-outdozen audio andvideo recordingsinvolving Bobrick,
Cerneii consultant.                for                            a
Anderson or both. He testified that Anderson knew he was being paid to do what Comet} wanted.

         g                                                                                       - Stevens-907

                                                                               1?... 9/27/2607
http:1 /Zephyr.ci.anchorage.ai<.us:2069/iw-soarch!we/ Ini oWcb/?p_acti0n=print&p_docid=1 M38
 &#39;==- &#39; -   ~   -&#39;             --     -
                                                 ~A          ~_   7____   »   »I                      .. ._.....,_,_~<-_ _.,.

     News 0
Access World
   5 ~      I                                                                 0Page                               of
           Defense lawyer
THE DEFENSE:                        spent hourscross-examining Bobrick and Prewitt. His defenseappears to
                        Paul Stockler                                                                   be   that the
            Anderson, the
FBI entrapped                             are    trying tothemselves, and the
                         government witnesses just        save                                took Cornell were
                                                                              actions Anderson for
        of     that legislators He
the kinds things                                 as                         who       the one
                             do. portrays Anderson aneager-to-please legislator wasn&#39;t who kept  talking about

        The    resumes Thursday, the
COMING UP: trial             with defense case.
                                             Stockler indicated
                                                             Anderson hasn&#39;t whether
                                                                          decided      testify.
Photo    BilIMugDSC_0Ol4_070407.jpg

Copyright c! 2007, Anchorage Daily News

             Idemer@aa n.
Author: LISADEMER              com Staff
Section: Main
Page:A 1
Copyright c!2007, AnchorageDaily News

                                                                                        FBI   Stevens 908

                           69/ iw-search/we/InfoWeb/
http://zephyr.ci.anchorage.ak.us :20                                    817...
                                                ?p_aotion=print&p_dooid=1 1A3 9/27/2007

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l    Q                                                                                                y

                                                 Acrcess World                 News
i    Paper: Anchorage       Daily News {AK}
     Title: Anderson lawyer lays        for entrapment defense ~
     FBI TARGET:Stockler says the ex-lawmaker sought consulting work, not bribes.
     Date: July 3, 2007

     As the trial former stateRep. TornAnderson wrappedits
                                                       up               sixth day Monday, thedefense strategybegan to reveal itself.

     The defenseis tryingto plantthe ideawith jurorsthat Andersonwas lured into atrap and that Anderson didrrt do anythingspecial for
     the privateprison rm Cornell Cos.
                       allege Anderson
     Federal prosecutors                                                                     bidding.
                                     was paid$12,838 to use his legislative o ice for Comell&#39;s
V    The government   has introducedmore thana dozen audio andvideo recordingsinvolving Anderson.including anumber in which he is
i             talking
     heard orseen         about hiswillingness tohelp Cornell,
     But duringcross examinationdefense lawyer PaulStockler, formerCornell consultantFrank Prewitttesti ed that Anderson wasnt
                              he           with
     even onthe listoi targetswhen began towork    the F8} in the spring of 2-394 inacorruption investigation oilegislators.

                 he                     Anderson atthe FBl s direction alter hearing froma Cornell lobbyist in Juneau
     Prewitt said begansecretly recording                                                                       that                 the
     legislator wanted to work for the company as ta consultant. Prewltt, state corrections commissioner    in the 19905, is the governments
     chief witness.

     Stockist seemed               would getthe FBi sattention. "Justa
                    incredulous that                                  guy who is looking for some consultingwork? he said in
     questioning Prewitt.

     But the FBl wasvery interested Alaskalegislators andtheir questionableconsultant contracts,Prewitttestiried.

                     Nick Marshasked Prewittabout a
     Later, prosecutor                                                                      for
                                                   conversation in which Anderson&#39;s consulting
                                                                                            work                   Anchorage-based oil eld
     services contractor Veco Corp. came up.                                         -
                  a         in
     Bill Bohrioir, lotahyist Anchorage,met withPrewitt atthe SouthsideBistro inAnchorage on July 21, 2004, to talk about setting up a
     political newsletterbusiness
                        orweb                 be
                                         that would used to funnel paymentsfrom Comeltto Anderson. Bolxricit haspleaded guiltyin the
     scheme. Asit worlsed                           of                                        from
                           out, Cornellnever learned the plan, and the moneyfor the payments came       the F81.

     in a recording of lunch,Bobrick tellsPrewitt thatAnderson wasmaking $2,580amonth for Veco and theyjust pay himto do

     Stoclder initially won amotion to oar the jury from hearing that. But prosecutors successfully   argued Monday that they needed to show
     they hada reason to investigateAnderson. U.S.District CourtJudge John Sedwlck agreedthat the conversation couldhe used to show
                          the government.
      wasrftiust "a lark by

     Did Andersoniever anythingfor Cornellother thanuse his position asastate legislator? Marshasked Prewitt. No, Prewittanswered-

     Slockler pressedPrewiit onwhether duringtheir meetings,Anderson brougiitup getting paid. Usually, Prewitt acknowledged,he was
     the one to mention it.

            heard Anderson Where&#39;s " Prewitt
     "l never          say     money?
                               my             said. FBI                                                                 _SteVenS_909
     HQW LEGlStA&#39;i ORS

        Dec. 2i, 2094, meeting aithe Whales Tale at
     At a                                         the Hotel CaoiainCook, Prewittslid an envelope with two checks - one tor $8,006,
     one for $2,000 -- to Anderson.

              even         and
     He didn&#39;t open it up         look at it? Stockler said.

     the kind oi actions that Anderson took -including      asking Prewitt to e~mail him talking points about haiiway houses that he than used in
     a letter to a                               behavior
                  state officials ~- represents common             among legislators, Prewitt acknowledged.

     The difference, toldjurors, is that Andersonwas getting paid.

                                                                                                      , ~         ,.-

      Access WorldNews
         RK.   ,                                   __
                                                                                                                                      Page 2» 3

                                       recordings, includingvoice-rnaii message, videotapedmeetings ans shone conversations,many
      White thegoverixment-introduced its                  a
      others weren t played toriurors, Prewitt said under questioning by

l     For example, on Aug. 5, 2004, Prewitt took Anderson, Bobrick and state Rep. Mike l-lawlrer. R-Anchorage and the head of two key
      budget panels, hissailboat fora     of                               recorded
                                     trip out Whittier. Prewittacknowledgedhe                      the outing.

      Was the FBI following along in another boat? $tockler asked.

      Dent know, Prevntt answered.

      Wasrft the real reason for the saiiing trip to make Anderson feel like a friend? Stockier asked. Prewitt said it wasn t.

      On thetrio, whenHawker wasasked it he wason the budget naneifor health, education andsocial services,heresponded:                 "l own the
      HESS subcommittee,              Wasn&#39;t that taik iust boastful? Stookler
                         Stockier said.         kind of                           asked. True, Prewitt said.
      While Hawkefs name has come up                                                                          wasn&#39;t
                                              the tnai as a supporter of private orisons and halfway houses, he       getting paid to take
      those            Prewitt said.
                        marching orders
      As far as Prewitt&#39;s                         said
                                      from the FE?-l, he he was told not to do anythingillegal but to explore certain areas,like
92                        When theF81 rstapproached him,Prewitt himselfwas under investigation forpossibly illegal acts stretchingback
      consulting contracts.
»     to 1994.
i         ever
      Was he        toid he had to "hag a state legisiator?   Marsh asked him.

i     ho, Prewitt answered.

      A FRiEi92iD NEED

     Another witness, Marc Antrim, corrections commissioner in the Murkowski administration,                      was
                                                                                                   testified that he      in contact with the FBi
          was investigating Anderson.
      as it

      Anderson, in letterbased onPrewitfs emailed talking points,asked Antrimfor a                 how
                                                                                  meeting to talk about                   halfway housebeds
      were needlessly going empty.

     Antrim ioidiurors thatin fact. tow-risk inmatesbeing
                                                   were   out into haltrray houses.but that to ll more beds, riskier or more serious
     offenders wouitthave tobe placedin them.That aireadywas happeningand the number of inmates walkingaway fromhalfway houses
     had gonethrough theroot. Antrimsaid.
2     He saidhe explainedthat in an October2804 meetingwith Anderson.

           Monday, Eobrick
     Aiso on                         forthe prosecution, toid
                       began testifying               He    jurors that and
                                                                      he              been friends years.
                                                                           Anderson had          for
              in                    and
      Sometimeearly 2004 "Tomcame tome                  told me
                                                             he                                       friend
                                                                   needed money,"Bobrick said."He was my                             help him
                                                                                                                        and iwanted to

      Bobrick will be on the stand again today.

                                                         or call
      Find Lisa Denier online at adn.oorn1&#39;contact= idemer 257-4390.

      FOR MORE CO92fERr192GE of Anderson irtai, visit


     Anderson eta glance                                                                                         FBI _StevenS_91O
                  Tom Anderson, represented
     THE DEFENDANT:           39,          East Anchoragein the state Housefrom 2003 until this year. He did not run in
     2006.                                                                                     r

     THE CHARGES: Three counts of money                       two of extortion and one each of bribery and conspiracy.

     THE CGNSPRACY: Feclerai prosecutors say Anderson participated in a scheme in which he agreed to do the bidding of the private
      prison firmCornell Cos.in exchangefor money.

     THE CO~COi92iSPiRATOR:   Lobbyist Bobrick nieaded  guilty in May to a single count of conspiracy. Heset up a company roportediy
     to producea politicalWeb sitefor whichAnderson wouldwrite. Prosecutorssay it was a sham used to funnel paymentsto Anderson.

     http://zephyr.oi.anch0ragc.ak.us:2Ci69i iw-search/we/Tnfowcb/?p_action=print&p_docid=i.i.A2D8... 9/2&#3

      Access World                                                               Page
                                                                                 D                                  of
             SO   The       has      with
      THE TRIAL FAR: prosecution nished three
                                            witnesses. The witness Frank
                                                        main    was    Prewitt, Alaska
                   in     and  a
      commissionerthe 1990s thenCornell consultant. Working
                                                         undercover for FBI, made
                                                                     the   he about             a              video
                                                                                                 dozen audio and
                      Bobrick, Anderson He testi ed Anderson he being to what
      recordings involving         or both.       that    knew was  paid do Cornell wanted.
               Bobrick started
      COMING UP:             testifying tateMonday andcontinues today.
      THE DEFENSE:               Paul
                    Defense lawyer Stockler hasn&#39;t yet case, hespent hours
                                                     put onhis     but                                    His
                                                                                    cross-examining Prewitt. defense
               be the
      appears to that FBI entrapped Anderson, that
                                             and the actions   Anderson took Cornell
                                                                           for        were the       things that
                                                                                              kinds of         legislators
      do. He               as                         who       the one
            portrays Anderson aneager-to-please legislator wasn&#39;t who kept taiking aboutmoney.
      Photo 1: Bobrick01__070307.jpg

                                Daily News
      Copyright c!2007, Anchorage

      Author: LISADEMER Idemer@adn.com  Start
      Section: Main
      Page: A&#39;l
                                Daily News
      Copyright c!2007, Anchorage

                                                                                             FBI - Stevens-911

 T>                                                                                         _
                                                            ._._..__..._..__...._.____._..._..._   H                      _. .__
                                                                                                       I _________.__.___.__ ___   ___ , ,

  uU z
A*&#39;e" ss News
       World                                                                                                                   3   7
                                                                                                                            Pane i of        M

            Access {news
Paper:            Daily News AK!
Title: Anderson case iikely to get to jury today -
                             was duped by FBK; doe-sn testify.
DEFENSE:Lawyerssay ex-tawmaker               he        t
Date: Juiy 6, 208?

         2805; an FBl agentieita message then-state
On Junei3,                             on                                                        an
                                                   Rep. Tom Andersons ceii phoneaskingforhisviewson                          upmming
iederaiappointment      he                          in
                because had beensucha friendor iaw enforcement the past.

                         up              in      Anchorage nextday, he discovered was just a pioy.He was
ButwhenAndersonshowed at the FBl building downtown       the                    that
thetargetof an undercover investigation.

Hugeblown-up pictures                   Prince Sound
                     froma iive-hour-long     William           trip                                FrankPrewitt
                                                         sailing on the boatof CornellCos. consultant
wereon thewall. Agentsplayed secretly               oi               with               Bill
                                    maderecordings his conversations Prewittand lobbyist Bobrick.

The agents      to                      in
          wanted get Andersonto cooperate its ongoing         investigation. for a time he did, prosecutors
                                                     corruption           And                             said.

           in                 triai
The defense Andersonecorruption wrappedup Thursday afterfive quickwitnesses.                    to
                                                                            The case is expected go to theiury
                        Andersonis charged
todayafterdosingarguments.               withseveniederatieionies,        orihery,extortion
                                                                  inotuding                and moneylaundering.

Defense tawyer Paul Stookler maintained that Anderson never took any legislative actions tor money. He tried to portray Anderson as
a manwhohad          inclination do anything;
                               to                                                 thingsby the FBl.
                                           shadybutwas iuredin to doingquestionable

Andersondidn&#39;t stand.Aftercourtendedfor the day on Thursday,
            take the                                                    he
                                                               Andersonsaid trustedSiockle s       in
                                                                                            judgment directing
hisdefense.              to          he
             the caseabout go to thejury, saidhe felt anxious didnit
                                                             but    want to say much.

      in               testi ed
Eariier thetriai,Bohrlck       thathe created business was supposed produce Web siteaboutAiaskapoiitios. he
                                             a       that         to       a                           But
told jurors that it ultimatelybecame a sham used to tunnel iiiegal payments from Prewitt to Anderson. Prosecutors assert that the
money                          to                  on
     was usedto gettheiegisiator do Corneliabidding halfway houses,a iuvenilatreatment centerand a privateprison.
Though                      to
      Andersonwas suooosed haveproduced             for                    have testified
                                            rnateriai the Web site,witnesses             that he neverdid.

Sooriokhas nieaciedguiity and Prewitt worked undercover for the FBi, making;recordings as a cooperating witness.

Both sides sutiered setbacks on Thursday. Two witnesses for Anderson wererrt aitowed to testify that he had approached them about
the Web site.

             iost        to                defense.Prosecutor
Andprosecutors theireffort bar an entrapment                NickMarshsaidtheywere neverput on noticeaboutit and
      no evidence Anderson was lured in.

ButU.S. District
               JudgeJohnSedwick                                  to                 to
                                  said,"Ittakesveryiittleevidence entitlea defendant an entrapment          Thejudge
said he didrrtallow it, andAndersonwereconvicted, mightappeaion grounds
                                                  he                                              assistance counsei.
                                                                            thathe had "ineffective        of

Stoclder he didn bring
       said      i    entrapment eariierbecausehe learnedmoreaboutit duringthe triai,in particuiar
                               up                                                                howthe F82was
       the           and          Prewitt
steering conversations interactions     and otherswere havingwithAnderson.


                witnesses the PB!caseagent,Mary BethKepner,who hassat besideprosecutors
Oneof the defense       was                                                                    the
                                                                                      throughout triai.No FBi
agents testifiedfor the government.                                                                              .

With jurors out of the room, Stockler told Sedwlck that he expected Kepner to say that the FBI told Anderson in that June 2005
meeting lo stop working on the Web site. That wouid explain why Anderson hadn&#39;t articles or done other demonstrable work in
       for                  saidwas paidto him.
exchange the $25,838witnesses

         not what Kepner ioid jurors a few minutes tater.
But that&#39;s

When asked by Stooitier,iiepner testified that the FBl didn tteii Anderson to stop working on the site.

Why the ruse to get Anderson to meet with the F8! at that June meeting? prosecutor Marsti asked Keener.

The FBl wanted gainAnderson&#39;s
              to            cooperation its ongoing
                                      in                   investigation ciidn want to blow its "covert
                                                  corruption           and     t                      status."

                                      FBI » Stevens~912
  Vtiorid 0
     News                                                                                                         3
                                                                                                                2 of
Keener toid the jury.

       aisowantedto question
Stockler                        aboutsecretrecordings were notusedby the prosecution. showthatthey contained
                           Kepner                   that                            to                     no
evidence that Anderson was corrupt.

          jury outof the room,thejudge
 But,withthe                      said                     going
                                          thatwouldbe likesomeone            a          storehundreds timesand only
                                                                            into 7~Eieven           of
        it -                 at             the
 robbing once altthatmatters trialis whether robbery  happened.

              isn&#39;t         told
  Thegovernment on triai, Sedwick Stockler.

                disagreed. worst
The defenselawyer        The                                        work,he said.
                               thingAndersondidwas ask for consuiting


Stooldercalledtwoof Anderson&#39;s consuitirsg
                             former                on       askingthemwhetherhe votedtheirway in the Legislature
                                            ciients Thursday,

No, saidBernadette      ownerof The BradleyHouserestaurant                        and president the hospitality
                                                          and bar in SouthAnchorage           of              trade
group Anchorage                      and
              Cabaret,Hotel,Restaurant Retailers            or
                                                 Association, Anchorage   CHARR.

ln fact,shetestified Anderson-- thegroup&#39;s director
                   that                  executive     beforehe tookotticeand a sometimes           whilein the
           --           the             a                           he
Legislature votedagainst groupsinterests numberof times.For instance, supported           towering legailimitof
                                                                                iegisiation       the
             content for driving.
blood aloe-hot

        was         cut       the
Theanswer notas ciear regarding Aiastta
                                              Association, paidAnderson
                                                        which         $20,888 2303,meiniy the
                                                                             in         with
           end               on        issues,according JamesRowe,the organizations
hopethathe d up bettereducated teiephone                to                          executive         Anderson
                both               the        raising
andtheassociation endedup supoorting same tziii                  for                        was gladthe
                                                     fees charged Bit sewices.The association
increase wasn&#39;t higher, Rowe testl ed.

              for                     aide                                        Rep.
                                                    whoworkedon the Web site,and state
Alsotestitiying Anderson:histogislative JoshAppiebee,                                                BobRoses,who
replaced in the Legislature.

       2005,Aoplebee Anderson&#39;s
in eariy           was           of     He
                             chief staff. said worked hours identity
                                              he    after to              in         all
                                                                   contacts communitiesaround
Aiaska   write
      whomight                for                                 fromAnderson on howto proceed.
                        stories thesite.By March,he neededdirection                                              he
                                                                                               That neverhappened,

Find Lisa Demo."oniine at adn.com!conteci}tderner cat! 25?-4398.

ANDERSONTPJAL: morecoverage,
             For           including                       and           and audioexcerpts the opening
                                   peststories,hisindictment courtmotions,                of
statements, visit

Photoit Anderson.1_07G607.jpg

        to}            DeityNews
Copyright 209?,Anchorage

Author:                      Staff
       USA DEMERtdemar@eo&#39;n.com
Sect,- on:
Copyrlgiit          Deity
             Anchorage News                                                                   FE] _ SteVen5_913

1A3D5                                                                         9/2712007
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      World D
        km                                                                                   Page
                                                                                             v                                      13 1

     [ ankI... ilccess
     Paper:AnchorageDaily News {AK}
     Title: Anderson iury ends first day; no verdict -
     CORRUPTiONTRlAL:Jurors will return Mondayto resume deliberations.
     Date: July 7, 2007

     A federal
             juryof eightwomenandfourmenspentFridayafternoon     deliberatingwhetherformerstate Rep. Tom Anderson tookbribes,
     thenconcealed money                  otherlegislators,
                            fromthe public,                             and eventhoseclosestto him.
                                                          slate officials

     They dicin reach a verdict and will be back in the iury room on Monday. The corruption case went in iurors around noon Friday, the
     trials ninthday.

     Andersonfaces       federal              bribery,
                                      including              and              He                     payments do
                                                     extortion moneylaundering. is accusedof accepting      to
     private               Cole bidding.
            prison rmCornell

     if he is convicted, he taces prison time and steep lines.

     As a group, jurorslookrelatively
                the                 young.Theyare mainlylongtimeAlaskans.One attendedDirnond     with
                                                                                            HighSchool      Andersorrs
     wife,stateSen. LesiiMcGuire.                      a
                                Severalworkwithnumbers: payroll           an
                                                               accountant, insurance                         manager.
                                                                                     claimsadjuster,a business
            also           at
     There&#39;scustodian, Wal-Martdepartment          a
                                               manager. pipelinetechnician.

     During trial,lobbyist Elobrick
            the          Bill                             that                     that was supposed be aboutAlaska
                                  lesli edforthe government he set up a Web business                lo
     politics ultimately usedas way to funnel
            but        was                     moneyto Anderson.                                  "

     Nearly$24,066wentto Andersonthrough         froma Cornellconsultant, was working
                                           Bohrick                      who                       for             The
                                                                                        undercover the -government.
     consultant,                   thathe gaveAnderson another$2,000 directly.
                           iesti etl                                         The Web sitenevergot off the ground.

                   the                  and           knowaboutthe scheme.
     The F81provided moneyforthe payments Cornelldidn&#39;t

             lawyers bolh
     OnFriday,     on        gave
                         sides   impassioned
                                                arguments a courtroom
                                                       in                 with      including agents,
                                                                    crowded spectators      FBI
                   and     and     of
     otherattorneys, friends family Anderson.

     McGuire in thefront
             sat;                                the               mother                                       oi
                              as she hasthroughout trial.Anderson&#39;s was theretoo. His father,a formerdirector Alaska
     StateTroopers,     attend,                                 a
                               Andersonsaidhiscladis busybuilding homein Wesillabutwantedto come.

4                         NFLUENCE

              Nick   whois withthe public
     Prosecutor Marsh,                          section the U.S. JusticeDepartment of Washington,
                                        integrity      of                        out            D.C., toldjurors
     Anderson knew exactly what he was doing when he agreed to use his in uence as a legislator on behalf of Cornell.

     "ifs forofficial             tor a
                    acts.its money being legislator,Marshsaid.                                                                            l

     Butdefense lawyer
                     PaulStocklerarguedthatAndersonwas notsailinghisvotes.He was philosophically
                                                                                                                on                        r
                  Stockler                worlr
                         said.Hisconsulting   was legitimate                pay,"the defenselawyersaid.
                                                           workfor legitimate                                                             l
                 to      Prewitt a government
     Stockiertrled portray     as                                                he
                                            agentwho luredAnderson intothe schemewhen                     otherwise      t
                                                                                                                  wouldn have been        i
     inclinedto do so.                                                                                                                    I

        trying it be
            to         illegal, said.
     "l~ie s getto somethingSlockler                                                                       _
                                                                                                         FBI Stevensrglq
l                                                                                                                                         »
92                                                                                                                                        »
     Prosecutors iurors
               ioki    thattheyiustneedto listen Anderson s
                                                to                    he
                                                          ownwordsto know                   is guilty.
     During argument,   whichlastedmorethanan hour,Marshreplayed         fromsecretrecordings
                                                                highlights                          Anderson and others
                                                                                            involving                                     l
     thatthejurorsalreadywerewell acquainted fromthe trial.
                                           with                                                                                           l

4    Marshshowed
               jurors                             withPrewlttaboutthe Woo site duringan Aug. 17,
                     videosnippets Andersonlaughing
                                 of                                                           2004,                            at
                                                                                                                        meeting the
4    Whales Tale at the Hotel Captain Cook.

                       he                  werent reallyforCornell
     AndersontoldPrewitt knewthatthepayments

         the     on
                                                                 bannerads on the Wet: site.

      Quit bulls»-~ the bannerthing, Andersonis heardtellingPrewitt.
                                  Aw      lac
                              iriiil H9221! 9r 27; 2C


          z_     g1       _
                                                    U                                                                                 Page
                                                                                                                                      2 of
     "Does it look to you itke         Prewittis twistingTom Anderson s arm here? " Marsh asked lurors, pointing to a frozen video image or
     Anderson smiling.
               2004, meeting Prewitjt his legislative ice,Andersoncomplained Bohrick
     ln a Nov.16,          with    in               o                      that    wastakingtoo bigof a cut andthat
     he didn&#39;tto split the nal payment,accordingto a recording replayed Friday.

                                   need          s
     Frewill told Anderson he didn&#39;tBobrlcl< help within the Legislature-~Anderson was positioned for that.

     At that point, Marshsaid, Anderson could havelumped up and askedPrewitt what he was talking about.
      Thafs not what he says. He says lknow. l know.Exactly, Marsh said.

     Duringthe same conversation.   Anderson notesthat he oouid onit the Legislatureand go to work directly for Cornell. But no, you don t
     want that. You want votes in the Legislature. would assume. he says in the recording.
     Marshwarnedjurors not to be swayedby a smoke-and-mirrorsdefense. He displayed lists of Andersorfs actions and commentson a
»                                            Web Site." TomAnderson Ties Of cial Acts to Money. "Acts of Concealment."
     screenforlurors: "The MoneyWas Not for the
1                                                    even       who
     Prosecutors zeroed in on the fact Anderson didn&#39;t went McGuire,          at the time was a state representative and his romantic
>            to where
     -partner, know            the moneywas namingfrom.
l         say what, you crazy? " prosecutorJoe Bottini totd iurors. ...The reason he cloesn do it is that he knows this stinl<s.
     "She <i      are                                                                       t

                                    mainwitnesses,recorded the conversations.He was under investigation for possibly illegal activities
     Hewitt, one or the governrnenl s
     when he agreedto go undercoverfor the FBI in spring 2604 to help in its ongoing corruption investigatiorl of Alaska legisiators.

     Stockierput the focus on Prewlttand Bobriclt.who has pleaded guilty to conspiracy but hasn&#39;t sentenced. The defense says they
     both turned on Anderson to save themselves.

     F                                                      2004 when it heard he was looking for consulting work, Stockler said.
     The Bl only started looking at Anderson in the summer of

      That&#39;s he told jurors. No one is free from that kind or scrutiny. he said.

      Fortwo and a half years, they taped Torn Anderson, and you heard the few snippets the government has of him saying things either
     stupid or a littie hit out ct context," Stoctder said.

     He remindedjurors what Anderson told Prewittin their rst meeting on July 24, 2094: "You have my support there and it is out of
     princlpie,nothingto do with whether some to agreementor not, which is nice.

     Prosecutors     want                                                                                             l8,
                didn&#39;tjurors to know the real Tom Anderson. Stockler told them. He referred to a recording of an April 2004,
     telephoneconversation which Anderson agreedto help Cornell, and there sno talk of paying him to do so. That occurred before
                                                               play it
     Bobrlckcame up with his Web scheme,and prosecutorsdidn&#39;t for the jury.

     "ifs not so much what the government said. lt s what they didn&#39;t Stockter said.
     The Web site was a real proiectthat only tell apart in June 2085 when the FSl confronted Anderson with its evidence to get him to        92
     cooperate in its investigation, Stoclrier said.                                                                                          V
      They&#39;ve destroyedthe man&#39;s career, Stockier said. "Now
            already                political                     we                    are talking about the rest or his tire.                »
        Lisa oniine
     Find Demer atacmcomicontactitderner
                                    2574390.                                                                         Steven
                                                                                                                 FBI__    9915                »
                  Havethe Anderson verdict e-mailed to you immediatelyby signing
                                                                          up                        for our breaking news alerts at           92
     adncominewsletters                                                                                                                       92
     Al. GRiLLO 1 The Associated Press

     FormerAlaska state Res. Torn Anderson. left, and attorney Paoi Stooirlerleave the federal coon building Friday.
     Photo i: Tanderson_07t7? G?.§ng

     Copyright-2007,       AnchorageDaily News
_§_ __          _                         i 7&#39; __ _7_.___   1   _A.                                ?

       Wgrld                                                                              Page 3of 3
                                     O Q.
Author: LISADEMER             com Staff
Section: Main
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Copyright c!2007, AnchorageNews

                                                                          FBI   Stevens 916

      NBWQ.               Page
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                                             Access Wor&#39;!oi

Paper: Anchorage Daily News {AK}
Titte: Forecast for Young. Stevens clouds up
CONGRESSMEN: increasing       national scrutiny makes pair take notice of politicai winds.
Date: July 9,

          their own admissions,
They are,by                   feisty andcranky, withtempers thatunderpin theirreputations asoid~school --yet effective-
members oiCongress. Theyhave morethan it !years of service on Capitol Hillbetween themand aren tready to call it quits.

But AiaskaSen. TedStevens, 83,and Rep.Don Young, 74, have also foundthemselves underincreasing nationaiscrutiny while
Repubiican party which                 them tries lo mount a
                      staunchiy supports~-                  comeback to regain majority statusin Congress.

                          on                                   relationships
The twomen arebeing pushed legaland ethicalgrounds forvarious cozy                      with in uential businessmen.

Yet neitherpians tosoften thetone or approach thatenabled themto direct millions of federal dotlarsto Alaska.

                      term nextyear. undaunted the
Both areseeking another                       by         growing scrutinyand with hopes the Republicans wiiihe hack in power.

            t            you don testabiish yourself the biggest dogin the yard, you&#39;re to he
"People don understand; it                         as                                 going     chased          out, Young said. "No
one has been able to do that to me."

                 say                  lone representative
Political analysts Young ~- Alaska&#39;s                   since aspecial election In 1973 -- may he the most vulnerable rightnow,
out Stevenscould bein for the toughesttime yetin his poiitical careerheading towardthe 2068 election.


                        from feoeraiinvestigators for home remodeling protect. investigation that dovetailedwith a
Stevens isfacing scrutiny                           a                        an                                   corruption
investigation into state otiicials.

             son Ben,a
Meanwhile, his                                                                             of ces
                      former Alaska Senatepresident, wasone of six state lawmakers whohad their                         the
                                                                                                                raided by      FBl last
year. Hehas notbeen chargedand hasdenied anywrongdoing.

           a                       his
Ted Stevens,former prosecutor, said attorneyshave advisedhim not to discuss the investigation,

               did          not takingthe investigationlightty, especiatty it gains momentum.
However, Stevens saythat he&#39;s                                         it

"The worstthing aboutthis investigation that it does change youriiie in terms of empioyment potentiai, said Stevens,the longest
                  in                                          "lt          matter
sen/ing Republican Senatehistory whowas appointedin 196844 doesn&#39;t whatanyone says, it does shake you up. if this is
still hanging around a                                   some
                      year from November, it could cause me      trouble."

But sofar, Stevensseems tobe thrivingon thesetbacks. Hewas recentiycredited for helping broker acompromise on the Senate s
energy biii.

                               my                      said. "Pm workingto get this concept out of my
"i think aii this has increased focus on doingrnyiob, he                                           mind         that someoneis trying
to makesomething iilegai of alt this.That s whatsreaily disturbing.


                    iaunched atYoung have come piecemealover the last severatyears. He was connected to the scandai .
Meanwhiie, criticisms
                   Jack Aoramoff
surrounding tohbyist                                                     to
                                when oneoi his former aidespieadeci guiity accepting gifts in exchange for or ciai acts on the
totit>yist s behatf.

He hasaiso takenheat forearmarks, money   awarded torspeci c projects. Young most notahiy gainednational attentionfor securing
$200 miliionfor a                     the
                 bridge project {inking southeastAlaska communityof Ketchikanto its airport on Gravina, anearby island, which
became known the"Bridge toNowhere."

More recentiy,                                                               -                                     Florida
              Young ~-the formerchairman oithe HouseTransportation Committee is taking heat for directing money to a
road projectstudy. Themoney                the districts Repubiicen congressman butwould bene t a
                                not soughtby                                                      major contributor to
Youngs campaign.

                    oi committee, you representthe whoie nation; youdon? representone district, which is in my
When youare chairman a                                                                                      case              is one

                                      FBI ~
     ft/&#39;orld News
it Aemss      u                                                                                   Page                                     of
  state. Young said. Earmarksare goodfor the country andgood for the peopieyou represent.

                      congressman. if you can&#39;t get foryour district,you sh0uidn tbe in Congress, he said.
   That is the roleof a                          money

  The Democratic Congressional Campaign  Committee put                      wilt provide logisticaland nancial support toa
                                                       Young on notice thatit                                             strong
  party challenger. far, his onlychalienger isDiane Benson,whom Young defeated for re-election in 2006.

  "They arewelcome totry." Young said. l know thatl m the one they would iike to eiimlnate. it doesn&#39;t me as long as l run a
  good campaign and do whats rightior      this state."

  The iirst punch hasalready been                                recently tauncheda
                                  thrown. the Democratic committee                 radio ad criticizing Youngfs commitmentto
  providing bene tsto troopsin iroq and A ghanisian.

  Committee spokesman Fernando Cuevas says the party naiionaiiy beiieves the old guard  needs                                    Alaska
                                                                                                       to step down, especiaily in
  where one current and three former stats iawmakers face federal tzritsery and extortion charges.

  "People aretired ofseeing politicians this light, fromthe state legislature tothis," Cuevas said. "Peopie are tired of the spin. That
  style isdone. Youare seeingpoliticians atadifferent standard."


                  Party chairman
  Aiaska Republican                          is
                                Randy Ruedrich not worried about the fate oi his party s twowarhorses. Ho said enoughAlaskans
              how Stevensand Young have helpedthe state grow, and not just the major cities, out the rural areas as wsii.
  wit! remember

   Their workis what made gooddrinking wateravaiiable toour rorai system, Roeorich

  They mattelife in many viiiages     towns
                                 and smaii     20th centuryiiving ratherthan ahoney bucket wortci. he said of the plastic buckets
            some Aiaskans without
  still usedby                                  in
                                   running water their homes.

  Rusdrlch saidhe welcomes challenge from Democrats
                            a                                      unseat                                        her
                                                      who couldn&#39;t U.S.Sen. Lisa Murkowski, whowas appointedby
                                            elected governorin
  father tohis seatwhen Frankll/lurkowski was                2004.

                     start iorsmellblood, political
  But evenas Democrats                            analysts saynone of the troublesfor Stevens or Young is enough to knock them
  off their perch just yet.

  "Those twohave beendriiiing foroii in Washington foratong time and they struck it rich, said David King, poiiticai scienceprofessor at
                    John Kennedy Scnooi Governnwent.
  Harvard UniversityeF.                      of

                                                                                                  as much as bringingmoney
  "They aremaking surethey bringrorne the bacon toAiaska," he seici. ideoiogyand styie don&#39;t matter
  back home.that culture in Washingtonhash ! changedmuch at ail.
  AL GRiLLO fAssociated Press archive 2004

                        stands withSen. LisaMurkowski andRep. DonYoung at a news conference inAnchorage in2004. Stevens
  Sen. TedStevens, right,
  and Young have foundthemselves under                    scrutiny whiletheir
                                        increasing national              Republican  tries
                                                                                    party    to mount acomeback to regain
  majority status in
  Photo t: 9 »tiasi<a~W arhorses_t}7ti907.§pg

              2067, Anchorage
  Copyright {o}             Deity News

  Author: STEVEQULNN          Associated PressWlFiE
  Sec ons Ma,"                                                                                               FBI Stevens-918
  Dateiine: JUNEAU
  Copyright c!2007, Anchorage News

  http://zcp11yr.ci.anchorage.ak.us:2O69!iw-search/we/InfoWeb/?p__ection=print&p__docid==1IA-4B3... 9/2712007
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      Recess World
      92- Q                                                                                   . Page       13of

       Q        rlccess
                      iiieinrs &#39;
        iers/lskankii... triforid
l      Paper: Anchorage Daily News AK!
       Title: Anderson guilty on all counts -
       Jury convinced the ex-legislator was paid for his political favors
       Date: July       2007

                    said theyrelied onformer stateRep. TomAndersons own words to convict him Monday oi conspiracy, briberyand other
       Federal jurors
       charges related poiiticaicorruption. -

       Eleven jurorsreturned seven                           nding
                                  guilty verdictsaround 1:30o.m..           Anderson, 39,guilty of all charges against him.

       Witnesses tesii edAnderson tookmoney todo the bidding of aprivate prison rm. In all, Anderson received$25,838 in 2004 and2005,
                     The moneywas suppliedby
       witnesses said.                      the FBl through Frank Prewitl,a   consultant for Cornell Cos., who secretly recordedhis
92     conversations Anderson
                    with         and aco-conspirator, former lobbyistBill Bobrick.

                was dismissed Monday
       Juror No.Q                  after aclosed hearing forreasons thatweren t expiained.Both sides agreed to go forwardwith
       fewer than i2.

       Jurors at first were tom over whether Anderson had been              the
                                                                            by    government, said several reached after the verdict.

       Jury forewonian Wendy Glihert of Vaidez said the     evidence came from a duly 28, 2064, recording of aconversation        between
       Anderson. Prewitt and Bohrick -the rst after the conspiracy began, according to the government.

       Jurors asked it to be replayed onMonday andfound that Anderson hadan idea what was expected of him from-the start.

       "They started                            for
                    talking aboutwhat hecould do Comell," juror TravisGardner ofChugiak said.And when Anderson wasasked about
                      Gardner said,
       his credentials,                                             alegislator.
                                   the rst thing hesaid was that he&#39;s

       it didn&#39;t ifAnderson wouidhave takenthe sameactions anyway,such as getting on key budget committees, becausehe
2      accepted money for it, said Gardner, 23.
       Anoiheriuror saidshe feltoroseeutors presented substantialamount of evidence."

l      Asked whatwas keyin theirdecision, jurorMarie Sieryioof Eagle River repliedin an e-mail:

l                                                                      of
       "in particular,the juryseemed togive therecorded conversations Andersonand others considerable weight.From these
       conversations and   other evidence           trial it became clearthat Andersonunderstood hewas taking part in illegal activities,"
                                         presented at
       Gielyio wrote.

                                             into theLegisiaiure, shewrote.
       The verdictshould heip"reiniect ethics"

       "By itsverdict today,the iuryaimed tosend astrong message to Anderson andother legislatorsthat there is a significant price to pay
                               s                                                                  they sell out.
       for abusingthe r:»uhlictrust inthis manner,"she wrote.Legislators needto think twice he-tore

       Anderson and his attorney seemed stunned by        verdict. When the iury left the room, Anderson uttered aweary   sigh.

       "Pm devastated," said.i-is saidhe d ans-eat.

       The prosecutionhas cdininaiizedbeing aiegisiator overthis past veal". Andlthink l fell victim to that, Anderson said.

                         Paul Stockler,
       Anderson&#39;s attorney,                 do appealwork, saidAnderson will need to think over what to do next after consulting
                                      who doesn&#39;t
       with his wife,     Sen. Lesil McGuire, and acircle of advisers.

                    right now,"
       "Pm speechless     Stocder     said. Butwhen you go up against thegovernment, yourisk iosing."Anderson nevertied the
       payment oimoney any oiiiciatacts as alegislator, Stockler said."He was always wiltingto help, and it had nothingto do with

       For thereading ofthe verdict,the courtroomquickly ttedwith FBl agents, prosecutorsand stah members.

       McGuire wasn there. 8he and otherfriends andfamily cameto the trial out couidn t getto the tederai building in downtownAnchorage
       in timeaiteriurors announcedthey hadreached averdict, Andersonsaid.

                                             FBI -Stevens-919

        __ ________________________
J. _____________      __

»    1.
r            _
     Accesst News                                                                                     .                           2 of
                                                .                                                   Q
     McGuirewas not accusedoi wrongdoing.in fact, prosecutorsused the fact that Anderson hid the payments trom her as further
     evidence of a shady deal.

     With        countsand an entrapmentdefense,the case was particularlycomplex, said Gilbert, the jury fore-woman.

     "There s lot on the line and a lot on your shoulders,and you want to make sure you do the right thing," said Gilbert, a pipeline lab
     technician and mother of three.

2    But in the end,jurors conctuoedAnderson had not been tured to commit crimes by e government agent. He was not entrapped.
     The pubiiccorruptioncase againstAnderson providedthe first rest test for the FE-iand prosecutors in their on-going investigationor
     Aiaska state iegisiatcrs.Three other potiticiansare awaiting trial, though the schemes aiieged in those cases are different. Those cases
92   invoive atte-gationsof britzes paid by executives with oii tield services contractor 92/eco.

           indicted Reps. Weyhrauch Kott,
     Lawyers     former Bruce   and
                                  i=&#39;ete trial set Sept. said guilty
                                        whose is for      5, the verdict have any
     impact on their strategy because the facts are so different.

     State Rep. Vic Kohring, whose trial is set for   22 and who is stepping down from his post next week, said hewas saddened for
     Anderson but that his own resolve to ght the charges had not waned.

     Nick Marshand Joe Bottlniprosecutedthe case against Anderson.They didn&#39;t                   the verdict, nor did the FBI in Aiaska.The
     only government statement came out of Washington, Di}.

     "Andersonhas been heid accountabiefor his crimes thanks to the hard work of federai prosecutors and FBi agents, and the
     Departmentof Justicewtit continueits pursuitof public corruption at all ieveis of government," 8.8. Assistant Attorney Genera;Aiice S.
     Fisher said in a written statement.

     One of the governmentsmain witnesseswas former ioobyist Bobrick. Juror Gardner said the panel didn t nd Bobrick that betievable.
     Bobrickpleaded                                                                                        hope of getting a tighter
                        in May to conspiracyin the scheme and agreed to cooperate with the government in the

     Bobrick jurorsabout series checks wroteto Anderson hisconsulting
                       a       of    he               or                   that            the
                                                                    business wentfer beyond initialpayments
     revealed before the trial: $3,000 on Feb. 14, 2005, $1,500 on Feb. 25, 2005. and more, on into June 2005. in all. Bobriok passed nearly
     $24,000throughto Anderson.and Prewitt gave him another $2,000 directty, according to their testimony.

     Bobricktesti edhe had i-toidea for a politicaiWet: site that he had hoped would become a real business with Anderson, but it never
     did. Anderson was paid "for being a iegi-stator," Bobrick toid iurors.

                                       own words were most damaging.
     But, as jurors indicated,Anderson&#39;s

     On a Nov, 18, 2004, recordingof a meetingin his Anchorage tegislativeoffice, Anderson brought up money and told Prewitt he didn&#39;t
     want to split the next paymentwith Bobrick.
I                                                                    run in
     Andersonsen/edin the state Housefrom 2003 to this year. He didn&#39;t 2006.
l    U.S. District CourtJudge John Sedwickset sentencingfor Oct. 2.

     Find Lisa Derner ontine at adn.cornlcontectridemer or cail 25714390.

     CORRUPTiON: more coverageon the Andersoncorruptiontriai, including;past stories, his indictment and court motions, and audio
     excerptsoi the openingstatements.visit

      Caption:                                                                                                  _
                                                                                                                  920 _
                                                                                                              FBI Stevens
     ERlK HILL I AnchorageDaily News

     Formerstate Rep.Tom Anderson.center left, and his attorney, Paul Stockier, leave the federal building Monday after a jury convicted
                             bribery.Anderson,39. was found guilty of ait seven charges against him, inciuding conspiracyto commit
     Andersonof conspiracyrand
     extortion, bribery and money taundering. "Fm devastated, Anderson said. "The prosecution has criminaiized being a iegisiator over this
     past year. And t think fett victim to that."
     Photo 1: Quote mari<s_"l23 5Q.psd

     Photo2: VerdictAnder"son__020
                       Page    33of
~.&#39;kcc§f§§"%/921 o}&#39;1d News
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                           Daiiy News
Copyright {c}200?, Ancharage

             DEMEF. !deme¢@adn.<:om
Au2 ho.*? LISA                     Staff
Seciion: Main
Page:A 1
                           Daily News
Copyrighi {a}280?, Anchorage

                                      &#39;                      -Stevens-§21

http://zephynci.anchorage.ak.us:2069/iw-search/we/InfoWeb/ ?p__acti0n=print&p__docid "=1 lA52

    Access WorldNews Page                                                                                                                1 of I
      or                                      qr

      nk,I... Access                                              lfttorfd itiews
    Paper: Anchorage Daily News {AK}
    Title: More corruption cases on deck -
    REST OF YEAR: Three ex-tawmakers wiil          stand trial; feds might    look at Stevenses.
    Date: July 10, 2007

                                                         on all
    With former state Rep. T om Anderson&#39;s conviction oounts, the focus of the Alaska corruption investigation      now shifts to two other
    pending triais invoiving three former iegisiators, and to the ongoinrg federal inquiry.

    Former House Speaker Pete Kott, a Republican who represented Eagte River, and former Rep. Bruce Weyhrauch, a Juneau
    Republican, are scheduled to stand triat in Anchorage Sept. 5. They are charged with bribery, extortion, conspiracy and fraoo in a
                                      support fora
    scheme tosell theirvotes, including                                   the
                                                  change in taxes favored by              petroleum industry,to the oi!- eld sen/ice company

                 Rep. VicKohring, alsoa Republican,
    Former Wasiiia                                                                                                          be
                                                   faces tour counts of bribery, extortionand conspiracyand is sche-ziuled totried
                   accused                                       industry policies.
    Oct. 22.He&#39;s also ofsetting hisvote to Vase andits oro~oii

    Atso pending sentencing     hearings forAnderson, scheduied  Oct. 2, and for the three people who have confessedto bribing
    legistators: former                       Ailen; Veco s
                       Jeco chiefexecutive Bill            former vicepresident forgovernment affairsRick Smith;and lobbyistBill
    Bobrick. Allthree havepleaded guiltyand arecooperating with federal authorities.Their sentencingdates have not beenset.

    The FBIand prosecutors notdescribe thescope oftheir ongoinginvestigationor  where they expect it to ieacl. Buthints have
    surfaced frompeople whohave testifiedbefore tederaigrand juriesin Anchorageand Washington,D.C., and from referencesin court
    documents and search warrants.

    Former Alaska  President
                   Senate                                                      in
                                  Ben Stevens,an AnchorageRepubiican referenced Ailerfs otea dealas the recipient ofmore than
                              from Veoo,has notbeen chargedand has denied wrongdoing.
    $240,080 inillegal payments
    His father,lJ.S. Sen.Ted Stevens,R~Alaska, is                   for
                                                  being investigated the 2000 remodelingof his home in Glrdwood thatwas managed
             Stevens has
    by 92/eco.            hired oneof the most high»pro Iedefense attorneysin Washington,Brendan Sullivan,who representedOliver
                                                            on the investigation.
    North in the Iran-Contra scandal. Stevens won&#39;t comment

    in additionto SenStevens, theef ces of at ieasttwo other tegisiators»Repubiioan Sen. John Cowdeiy of Anchorage andDemocratic
    Sen. Donny Oison of Nome ~- were                   tscterai
                                                       by                                                charged.
                                                                  agents in Augost, but the two have not been

    A numberof companies                 connected with North Pacific commercial shing industry in Alaska and Seattiewere served
                           and individuats             the
                grand jurysubpoenas demanding
    with teclerai                                             their ties to several people andorganizations, includingBen Stevens,
                                              information about
    who has worked as asheries      consultant.


                                                        after Antlersorrs conviction.
    ETHCS: Gov.Paltn signsinto tawa reformpackage minutes

    Alaska, Page 84
    Lobbyist Bill Bobrick pleaded guilty to bribery.
           ll      231
    Photo Quote markswl69.psd                                                                                  FBI _SteVenS_922
    Photo 2: Bobrici<i92Ilug~_i23i{59.jpg

               200? , Anchorage
    Copyright c}              Daiiy News

    Author; DailyNews staffnewa@adn.com Staff
    Section: Main
    Page: At
                 208?, Anchorage
    Copy-n&#39;gnr {:2}        Uaify News

                                                                                      it l2>£@;_>»0-i92 i;&

          World t
            .             ,___    x                                                            0Page                                  tof



        Paper: Anchorage Daily News {AK}
        Title: Palin signs ethics reforms -
        Law closes loopholes, stipulates bans as legislative cleanup begins
        State Lawmakers to face new rules
        Date: July 10, 2007

        Ah ethicsreform      for
                       package stateof ciaiswassignedintolaw Mondayby Gov. SarahPatio,just minutesaftere formerstate
        representativewas convictedon seven federal counts of extortion and orthery,

        Palin thelawwillhelp          trust    the    and
                            re-establish between public elected
                                                              officials improving existing
                                                                      by        on       statutes. conviction
                                                                                                The        bl
             Rep.TomAndersen, Anchorage
        former              an                  makesthe law morenecessary
                                      Republican,                        than ever, she said.

        "l believe could a precursorior
                  it    be                 to come,     unfortunate," said."Thisbillis a goodstartto getting
                                      what&#39;s and it&#39;s      she                                      the
        comprehensiveethics reform that     need here in Alaska."

        "threemorecurrent former
                         or     Alaskalawmakers               trialsthistall. The formertoptwo officers Veco Corn, an Anchorage
                                                face corruption                                        of
        oil eld services      havepleaded      to
                                         guilty bribing lawmakers.

        Ethicsreformhadbeena recurring   themethroughoutPalin s
                                                              electioncampaign,and she pushedhardfor the billto becomea
                 effortin the Legislature session.
                                        this      She saidshe remains determined cleanup
                                                                                to      Alaska politics.

        State Sen. Hollis                  said                           and      a
                         French,D-Anchorage, the law closesseveralloopholes includes ban on outside           for
                                                                                                   compensation official
        acts.it alsobanslegislators           campaign            as
                                                      contributions bribes.

        "lt s further      by          this we                                   s       Frenchsaidduringthe signing the
                      hopethat signing bill willclosea shametalchapterin Aiasl<a history."                          of
        billat theAlaskaPublic                 in
                                    Commission Anchorage.

        French saidthe law sendsa message Alaskans
                                          to          thatlawmakers serious
                                                                  are                       and        the      even if
                                                                           aboutacknowledging correcting problem,
                     not             illegal
        the lawmight affectanyone&#39;s    activities.

        "You can&#39;t a bill thats
                 write                   to make a dishonest person honest." he said.

        French                   had
              saidsomelegislators firstproposes        all       contracts, that idea didrrtsunrise. he saidthe disclosure
                                                banning consulting        out                      But
                            nextyear,whichcouldmeanan unwelcome
        lawswillbe morestrict                                         for
                                                              surprise somelegislators.

        "There&#39;s             to be somecha ngat the bit,if youwill,whenthat comesabout,"he said.

        WhilePalinand several       at          saidtheyexpectedfurther nements the law to becomenecessary its flaws
                            lawmakers the signing                      re         to                     as
        becomeapparent,             against l<nee»jerl<
                        somecautioned      a                 in                    conviction.
                                                     reaction the wake of Andersen*s

        "Letsnothe reactive whathappened
                          to           today, saidRep. Jay Rarnras.          "t we
                                                                  R-Fairbanks. think                 do betterwhenwere deliberate,
        thoughttul patient.

        Rep. 80b Roses,R-Anchorage, succeeded
                                  who                    in             whenAnderson
                                                 Anderson the Legislature                  t              in
                                                                                     didn seek re-election 2006, saidthe
            go     far
        lawdidn&#39;tenough.Campaign  contributions
                                                  should available immediate
                                                        be        for        public        he                         should
                                                                                   scrutiny, said.and all contributions
                   eventhosebelowthe current .000 threshold.
        be reported,

        "Quitefrankly, thought
                     l                       should
                             someof the things          e                thanwhattheywere, butthisis a firststep,"he said.
                                                   have been littletighter

                           lobbyists report APOC any foodor drinktheybuyfor a legislator costsmorethan$l5 an unpopular
        The law alsorequires        to     to                                             that
        stipulation               owners,particularly
                                                    thosein Juneau-~and it prohibits         gifts
                                                                                   themfromaccepting           $253
        fromthesameperson         a
                            within year,excluding               to
                                                 foodand tickets charitable  events.

        The lawalsowillprohibit
                              people                                                                  a
                                    fromregistering lobbyists they have beenconvicted a felonyinvolving moralwrong.
                                                  as        if                      of

        Reform gained momentum alter F8! agents investigatingcorruption charges served search warrants on the oi ces of six legislators last

                       R-Wasilla, resigning Houseseat July =9 he can defendhimself
        Rep.Vic Kohring,        is        his               so                   againstfederalbribery            charges
                                                                                                      and extortion
        related hisalleged
               to                withVeco Corp. &#39;
                                                FBI Stevens 9.-&#39;13

        http:ZXzcphyr.oi.anchorage.aIeus:2069fiw-searctifvve/Inf0Webl ?p_acl;ion=print&p_docid=1lA52&#
            s World                                                           Page                         of
92                       also
             prosecutors have charged Republican Pete and
                                  former                         of selling votes company.
                                           Reps. Kott Bruce Weyhrauch their      the
     All the legislators have pleaded not guilty.

     MORE ONLlNE: For past legislative stories, go to

     FRAN DURNER IAnchorage Daily News

     Gov. Sarah signs                109         at Alaska
                                     Bill on Monday thePublic   Of ces Commission in
                                                                              of ce Anchorage.        are,
              Rep. Max
     from left,                         Rep.
                     Gruenberg, D-Anchorage; Bob
                                               Lynn, R-Anchorage; Hollis
                                                               Sen                       Brooke
                                                                       French, D-Anchorage;
                                                                                        and           Miles,
     executive director of APOC.
     Photo 1: AK Legislature CMYK__071007.psd

     Photo 2: Ethics01_071007.jpg

     Copyright c!2007, AnchorageDaily News

     Author: JAMESHALPIN TheAssociatedPress
     Page: B1
     Copyright ! 2007, AnchorageDaiiy News

                                                                                      FBI   Stevens 924

                                                                         ... 9/27/2007
       News b
Ail fe-is World                                                                               .Page                                      of

[ nk,Il¢ aiccess News
Paper:              Daily News AK!
Title: With Bobrick out. opportunity arises for other lobbyists ~
BSG MONEY:    Void opens after former go-to guy pleads guilty to conspiracy in corruption case.
Date: July 13, 2&8?

Until this year,     Bobrick was the busiest lohhylst in the city.

A former director of the state Democratic party and friend oi                                three
                                                                      mayor, he represented about        dozen different clients over the past
live years, according to public records.

Suddenly, the go-to guy on city issues is out of the game.

                           He&#39;s pleadedto conspiracy ina
His clientshave disappeared.           guilty                federal corruption caseand lhe Anchorage Assemblyslammed the
door behindhim, passingnew rulesthat can anyone witha                                  the
                                                     felony record fromregistering lo lobby  city.

                               mind                 zoning
So, ityoure well~oonnected, clon t hoursof meetingsabout                                                     bureaucracy: Help wanted.
                                                                              rules and can navigatethe maze of

Two candidates Bobricl< s                              his wake -- one an ad agency owner and the other a
                              former titlehave emergedin                                                 former lobbyist who
until recentlyworked forthe city- adhough neither hasas many clients as Bohrick regularly served.

"i"nere savoid right now,"said MarcHellenthal. anAnchorage pollsterand politicalconsultant whoworked for Republican candidates
in this years Assembly races.

                              somebody out
"This isa careeropportunity for          there," hesaid.

But whatkind ofcareer isit exactly?

               Traini saidlobbying thecity is like being a
Assemblyman Dick                                          pltchman.

           really saiinga tangibleproduct, they re
The;/ re not                                     trying to sell an idea. And theyre trying to gel enough cf the ii people {onthe
Assembly} and mayorthat theycan getii broughtforward."

Jim Lolisteldt,who ownsan ad agency. registered representthree clientsbeiore the Assembly this year.

                    is                                                         bring
"Government sometimes hardto understandor hard to work with," he said. And so you                    in specialiststo help. Same reasonyou
hire architects and engineers."
Lottsfeldt saidlobbying theAssembly isdifferent thanlobbying theLegislature inJuneau becausein Anchorage,Assembly members                        l
                                 They aren&#39;tawayfrom homein the rare ed atmosphere of the Capitol. Here,
are goingabout theirregular lives.           living                                                     there&#39;sless
wining anddining, hesaid.                                                                                                                        l
Still, asuccessful                                         rst
                     lobbyist knows the lorxsl olayers by their      names.

A lot of Bohri<:l< s success simply was that he was politically connected," said David Ditiman, alocal    pollster and consuliantwho works
mainly forReouhlicahs.

Bobrick ran the stateDemocratic party the early 1990s.l-le donatedat least $1,600 to the campaigns of Assemblymembers Allan
Tescbe, DanSullivan, Dan              and
                        Coffey, Trains MayorMark Begich.

Begich wasthe best               wedding in1998 andthe two have knowneach other for decades. Thursday, Begichsaid he
                      at Bobrick&#39;s
never pushed       hire Bobrick. In tact, peopledon t reallyneed a
            anyoneto                                              lobbyist to do business withthe city. he said.

        bull. People
That&#39;s lust                                                                              down
                    want to come meetwith me, they can walk throughthe door. ll they want to go                   to the Assembly. theycan
just show up."

Bobrlck s conspiracy                  passing bribesto formerAnchorage Rep.Tom Anderson.On the vdtness stand,he saidover
                    conviction involved
             regretted his actions.
and overthat he

The crime bad nothing to do with city oi cials, hesaid     in an interview Thursday.

                                              Stevens Q25
                                          FBI ~
     =~ World 0
      Asofess                                                                                  0                            2
                                                                                                                         2 of
                                                                                                                         Page           "f

         "Assomeone         s     for                          oiients frontof formermayors}
                     ti1at ioebieri over20 years,Firerepresented     in                    TornRois,RickMystrom,   George
         Wuercn andthe currentmayor,             previous
                                      andcountless        Assemblychairsand assernblymen -women," said. And crimeihatl
                                                                                       and          he           the                     l
                  to            to
         piedguilty hasnothing do withanyassemblyrnan,                  or                                        Torn
                                                         assemblyoerson, mayor,pastpresentor future.it onlyinvolved
         Lobbyingis about relationships,said Lottsfeidi.who also works on state issues.

             relationships thesamething Juneau understanding government
          tt s           and           in                  how        worksand howio navigatewithingovernment."

                  has     on                                   P.   Montgomery, of ve companiesout
         iottsteldt signed withan otdBobrickclient,maltdeveloper 0&#39;8      one             that                    tieswithBobrick
         after no got in trouble.

                  said        cailedhim,and thathe hasn&#39;t Bobrici sotherclients.
         Lottsfeldt the company                         chased

         Lottsfeldt he gotintocitylobbying
                  said                   because saw a
                                                he    way to earn somemoney."Justgoodold capitalism."

               newlobbyist    in        wakewillbe a familiar
                         moving Bobrick s                                        KevinBruce.
                                                            face for cityof oials:

         UntilMaren,Bruce      for                        a                        be able
                                                    whichis cityjob. He saidhe won&#39;t to lobby on port related
                         worked the Portof Anchorage,                                                                   but
                  AlaskaPaci cEnvironmental
         represents                       Services,        Ji. -
                                                  developer Properties bothBobricl-t       at           BP
                                                                                    cttents one time ~ and     Exploration.

         Bruceis former             of
                      ownerandfounder thepubiicrelations rm Northwest
                                                                    Strategies              a        before.Butthejob
                                                                             and has workedas lobbyist
         has changed in the past       he said.

         in December, Assernbiy
                     the       approveo newethics                      or             fantiiies
                                                 rulesthat ban ioboyists theirimmediate                   to
                                                                                               fromdonating the politicsi                l
         campaignscity candidates, helping
                  of            or        thosecandidatesraisemoney.                                                                     l

                 evensupport people
          Youcan&#39;t     the     youlike,"he said.                                                                                     l

                                     $87,600working the port,according cityrecords.
         Bruceearneda salaryof roughly             for               to

                         trial,Bobricksaidhe madeup to $260,006 a year lobbying Assembly.
         DuringtheAnderson                                                    the
         Tnatwas news,evento localpolitical             the
                                                 Although staterequires        to
                                                                       lobbyists reportnew muchciientsnaythem,the citydoes
         not. even in the ntocn-toutednew ethics roles.

         BruceandLottsfeidt       t                       being paidfortneirnew work.
                          wooidn saythisweeknowmuchtitey re

                                biog                          or
         FindKyleHopkinspotitical oniineat adncomfalaskapoiities call nimat 257-4334.
          Caption:                                                   *
         Photo : l3bobrick__O71307.jpg

                 to}    Daily
         Copyright 206? Anchorage            News

              M15 h OPKfr&#39;92i-S
        Author:                              Staff
        Section:Main                                                                                                                     92
        Cogzyrignt 2907, Anchorage
                 {c}             DailyNews
                                                                                                         FBI - Stevens-i326


                                                                                                                t                       I

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-=---1»»»»»»-===>---»--h-7-4-7>::_=~:_:r                  -                 &#39;___________
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                                                                                             ___ ____,_-,__v;_,____%_      ._   .
       Aer - cs News
     §»&#39;i1a-R9; "9                                                                         0Page                                  12

                                                  Access ififorio           News

      Paper: Anchorage Daily News AK!
      Title: Palin wants independent legislator ~
      KOHRtNG&#39;S SEAT:                                      to
                           She prefers someone who will stand up         pressure.
      Date: July 13, 230?

      While Malanuska  Susitna area                  down a
                                   Republicans wirihow     list of replacementsfor adeparting Wasilla legislator,Gov. Sarah Patio
      said sheis lookingfor someonewho wont be pressuredto toe the party line,

      Palin saidshe wholeheartedlyagreed witha                                         D-Anchorage,
                                              letter she receivedThursday fromRep. Les Gara,                      who askedthat shetalk
      to candidates       ability
                   about their     to stand rm under pressure. »

      We haveto changethe culturein stategovernment and have to get away from politics as usual when politics as usual hasallowed
      Alaska toarrive atthe pointit is today." saidPalin.

      At stakeis the District 14seat heldby Rep.Vic Kohring. The seventerm Republican whofaces federal charges orbribery and
      extortion, announced monththat hewould leavehis positionJuly l9 in order toconcentrate on his defense. Kohl-Eng maintains that
      he is innocent.

                                  met                                                                                   three today and
      Seven valleyFleouhlicans have thequali cations forthe job, according todistrict officialswho will narrow thelist to
      forward to the governor.

      in a                                                discuss with candidatestheir willingnessto buck the pressureto
          letter to Palinthis week,Gare askedthe governorto                                                            vote along
      party lines.

      Gara saidparty linevoting hasresulted inbad decisionsand harmed party memberswho have broken ranks in the past to vole their

                         pass aflawed oiltax in 2006, hesaid. Thats an issue that could he the first on the new iawrnakers plate in a special
      it led lawmalrers to
      session laterthis year.

                                      between those us who believein a
       We havea prettysplit Legislature            of                 much stronger oiltax and those of us who support thelaw we
      have onthe cooksright now, Sara said. That appointmentis probablygoing to he aswing vote on whether or not we stiol: withwhat l
      think isavery flawed oiltax,"

      House Speaker John Harris,R-Valdez, saidcaucus membersare requiredto follow party linesonly in the nal budget voteand
      procedural motions.

      Though manyHouse members   supported atax on gross productionover the net pro ts tax that passed, Harrissaid it was clear such a
      tax wouldnot havepassed theSenate orformer Gov.Frank Murltowskisveto pen. The nal vote for a   net tax, which was along party
      lines, was acompromise,       he said.

                           was politicalposturing from industrycritic.
      l-le saidGara s letter                          an

       Nobody isrequired tovote anycertain lineon oil taxation. Theycan vote any way they wantto vote. Les is using this as a political
      opr;-ortunityf Harris said,

      l-larris, however, a      sessionreview the
                          special       to                Tex.
                                               Petroleum Pro ts FBI                                             __ StEvenS_927
      And Palinsaid shewants lawmakers weighin once more andmake cleartheir wishes on atax that she said passed under adark
                                            should demonstrate knowledge,experience andintegrity to make a good decision.
      cloud. Andshe saidKohring s replacement                 the

            going tomake thatcandidate promise anythingexcept promisethat they will fairly and objectivelyconsider thesituation we
      "Pm not                                me
      are in," she said.
    ___cf *                      _
                      &__.___*_7__    D
                                  ___ _         __ _ _
                                                  _                                             .
                                                                                               _ . ._____________ _ __
                                                                                                                  _      __

    V ;Wor1d News
              0                                                                                Page
                                                                                               U                                of
    forwardeddistrict of cials or
            by                  pick a                 of              The        then must con rmed a
                                      district Republicanherown choosing. candidate       be       by majority of
    House Republicans.

    District 14Committee chairmanColligan
                                 Steve                                           will
                                               said at least 10 committee members evaluate written and oral interviewswith the
                   also willconsidera
    candidates. They                 public presentation byeach candidateat an open meetingin Wasilla today.

    The committee will score each candidate and announce the nal three         evening.

          looking for
    "We are                  good conservative
                    folks with              values, there&#39;s about that,"
                                                         no doubt                      "Part of
                                                                          said Colligan.              best candidate
                                                                                              being the           is
    representing the constituents."

                          the                      legislative
    The sevencandidates for District14 seatare Wes Keller,                  staff memberfor Sen. Fred Dyson;Colleen SullivanLeonard,
                  staff, Wasilla
    governor&#39;s of ce                        member and
                              Planning Commission                        City
                                                            former Wasilla Council               Hargraves, retired
                                                                                    member; Darroll
    school superintendent;
                        Steve                     staff and
                                    governor&#39;s of ce Wasilla Citymember;
                                                                     Council                   Wasilla business
                                                                                     Pat Marley,             owner;
               Wasilla business
    Greg Koskela,                       Wasilla City
                                owner and                         and
                                                   Council member; Dan                Borough Assembly.
                                                                          Kelly, Mat-Su
              former state
    Kohring and                       Pete
                         lawmakers Reps. Kott
                                           and Bruce
                                                   Weyhrauch were
                                                               indicted last
                                                                           May on               to
                                                                                 charges relating alleged
    dealings withAnchorage-based oilservices
                                    eld               company VecoCorp.

    Two Vecoexecutives,Bill           and RickSmith, pleadedguilty to extortion and bribery.

    In aseparatecase,a                           week found
                      federal jury inAnchorage this       formerstate
                                                                Rep.                             guilty of
                                                                                      Tom Anderson                 corruption.
                                                                                                         bribery and
                 would-be replacements
    Vic Kohring&#39;s                 be
                                     will          cut fromseven to three today.
    Photo 1:Vic Kohring CMYK_071307.jpg

    Copyright c!2007, AnchorageDally News

    Author: TheAssociated PressWIRE
    Section: Alaska
    Page: B1
    Dateline: JUNEAU
    Copyright c!2007, AnchorageDaily News

                                                                                                          FBI -Stevens-928


>~~~ ~I ~~ ~~       7      ~~~~»~~~»~~                                 _
                                               -a~---~-~~---.~~----__~-H-~-H   _ .__,v_._______.___.______________ .
                                                                                                        __,_____       .

    News                                                                        U                              1 of

                                       Access            World         News

Paper:AnchorageDaily News AK!
Title: Valley GOP produces short list -
KOHRWG REPLACEMENT: Pool of three goes to governor.
Date: July     2607

Mat-Sn                          reolaoe Vic
    Republicans ashortct
             chosen list finalists Rep. Kchring,
                              to                  who plans        V
                                                          leave this
                                             R-Wasilla, to oiiice week.                                                    l
Kohring,whofacesfederalbribery extortion
                             and       charges,
                                              sayshe is innocent.
                                                                               narrowed poolof sevencandidates
                                                                                       a                                   l
for job       three
         to top choices night are
                     Friday They asking
  his downtheir                       Sarah Palin select
                                      Gov.      to    among:                                                               l
* Darrell        a
        Hargraves, retiredschool
                                      superintendent formerdirector the AlaskaCouncil SchoolAdministrators.
                                                  and             of                of
         also was a lobbyistfor the council.

*Wes alegislative
   Keller,      member Fred R»Eagle
            staff    Sen. Dyson, River.
* Colteen               a                         member
         Sullivan-tacnaro. formerWasillaCityCouncil      who worksforihe governorsofficein the Mat-Su,and serveson the
WasillaPlanning Commission.                has                           and her husband, tormerWasttla
                            Sullivan-Leonard runfor Kohrings seat tzetore.              a              city nance
        new       for                     as                    in
director, works the Palinadministration a deputycommissioner the stateCommerceDepartment.

                          strengtns saidSteveCottigan,       of         District i
                                                     chairman the party&#39;s t4 committee.

He saidPalincouldchoosesomeone          as                   a
                             elseentirely longas that personis registeredRepublican                           sinceat
                                                                                   who has livedin the district
         A             of
leastJune2005. majority HouseRepublicans                                       year of Kohring s
                                         mustcon rmher pickto servethe remaining                term.

Kohring&#39;s searched federal
            was      by           in
                             agents lateAugust. wonre-electionlittle
                                             He              a         thana monthwith
                                                                    more         later                           60
      of                Democratic
percent thevote,defeating                 KatieHurley.

Konrtngsdistrict      the of        and is abouttwicethe size oftlnecitylimits.Cotligan
               includes city Wasilla,                                                  said.

                         reached comment
                               for     $aturday.Colligan                    is,            will
                                                        said,"Myunderstanding Monday Patinji be
considering,talking to the cano&#39;idates."
FindKyleHopkinspolitical         at                   or cali      1
                       biogonline atln.c:om1alasl<apclitlcs himat 25? -4334.

        c!             DailyNews
Copyright 2007,Anchorage

      KYLE HOPKINSklrcpl<ins@adn. Staff
Author:                         com
         {c}             DairyNews
Bc,oy.dgi:z 2067,Anchorage

                                                                                            FBI ~ Stevens-929


                          92oci 35/%7J;
    ;§§>cc§s§it ortd Nev1s                                                                       Page
                                                                                                 U                                        2
                                                                                                                                        i of

     i[ ank,;,,, riiccess News
     Paper: Anchorage Daily News {AK}
     Title: Young shells out for iawyers
                       account is tapped for D.C.
     $262,131 : Campaign                     attorneys              advice.
     Date: July 17, 2007

     U.S. Rep.Don Youngspent morethan $262.13?from his campaign accountto pay legal bills this year, according tohis most recent
     tiling with the Federal Election Commission.

     Between March andJune 15,Youngs congressionaliundraising committee,Aiaskans for Don Young, paid two Washington law
                                    shows campaign spent$242,306 withAlain, Gump,
     rms to advise him.Young&#39;s report                                        Strauss and Hauer, andanother $19,831
     went to Tobin, Q Connor, Ewing and Richard.

     The FECreport doesnol detailwhat sortof legal  the campaignis paying for. Young s o ice in Washington referredall questions
     to his campaign manager Anchorage,Steven Daugherty. Dougherty wouldnot address how the campaign moneywas beingspent,
     and saidhe had no comment regarding theFEC reportand the legal feeswe ve paid.

     in April, {otrng s campaign                     the
                                acknowledged paying Akin, Gump rm a      $25,080 retainer in oonneciion with campaign contributions
     from a                    under
           Wisconsin truckingexecutive        indictment. Atthe time, Dougherty said,"With all the innuendo, accusations andwords that
     have beenout there,ljust       think itwas ebad decision to have somelegal counseland keep them on retainer for basic feedback
     and second opinion.

     Young hired the legalteam aboutthe timethat mediain Milwaukeereported thatthe U.S.          oiiice there was tackinginto
     campaign contributions businessmen    Dennis Troha.Troha reportedlybene ted from new truck-haulingrules that Young helped
           2065 as partoi a
     pass in                maior lransponation-spending bill.

              received about
     Young, who           $20,809 in
                                   campaign contributions Troha, lzlmiiy
                                                       from    his               associates, has he
                                                                       members and             said does not
     recall evermeeting theman. Nordid he           Troha wouldbene t from new rules Young favored. he said.

     Troha wasindicted lastmonth oncharges ofusing familymembers toillegally funnelmore than $100,000 in campaign contributions
     Wisconsin Gov.Jim Doyleand theslates DemocraticParty.

     Young also has beenunder scrutinyfor sponsoring $18 million roadproiect that helped Floridareal estate developer Danieinronoii,
                                                   Youngs re-election. A former aide to Young on the transportationcommittee, Mark
     iust daysafter Aronofihelped raise$rio,oo=:~ for
     Zachares, pleaded guilty inthe JackAhramoif briberyscandal.

     Although some  lawmakers faced                      establish
                                      with sizablelegal bills         separate defensefunds, federallaw allows them to spend the money
                      in their
     they&#39;ve amassed campaign nanceaccounts andit is not uncommonfor them to spend it. The rules for using campaign
     contributions to                                Bob
                     pay legalbills arefairly broad,said      Biersack.aspokesman for the Federal ElectionsCommission. Theonly
     requirement isthat thespending herelated tolegal hillsconnected totheir role as an eiected oiiiciai.

     "its certainly acceptable whenever appliesto either activity relatedto the campaign orthe responsibilitiesof the person asan ottice
     holder, Biersaois said.

                    took in                 contributions this spring,according tothe FEC report, bringing his accountto $1.6
     Young&#39;s campaign more than$11,356 in

     Young&#39;s rst reportfrom thebeginning of2007 showsthat he spent the $25,000 withAkin, Sump, Strauss and Hauer in March,
                            suggest             tapped his campaign accountto pay legal biiis.
     but previous lings don&#39;t hehas reguiarhr

                            he                                                    and
     The newestreport shows paid$85,103 tothe rm on April i8. $8? ,i28.23-on May 22                           on
                                                                                                   $70,i3i&#39;5.{}4    i5. Smaller payments
     to theTobin, O Connor were also spreadbetween Apriland June.

     The mostrecent FEC lings, whichwere dueat midnightSunday, showthat other high pro le House membershave tappedtheir
     campaign accounts pay lawyers. Theyinclude formerHouse SpeakerDennis i-iastert,R-Illinois, whospent $59,884on      legal bills last
     quarter. according Congressional                              And Friendsof Mark Foley, the campaign committeefor the
                                      Quarierlys PoliticalMoneyLine.
     disgraced former                      reported spending$277,357 onlegal hills connected to the criminal investigation intothe
                     Florida representative,
     inappropriate e-mails he sent to underage pages. &#39;

               YOU Ti-iliili? Does $26233?in legal hiiis seem like a for a congressman? Doesthe fact ihat it wasspent in less thansix
     92Ni-iA"i&#39; DO                                              lot
     months aiiectyour opinion?To shareyour reaction,visit

                                                 Stei/ens 930 &#39;4 3
                                                FBI -
                                                                                           9/2?r"2 }07
     http:// i::epi1yr.ci.anchoragealt.us:2O69l iw~searchfwe: Inf0 iVebf?p__acti0n=prin r&p_docid=1 i.A7?61
                                           -_            __;::::_&#39;_a_<_a.a.a;
">>"~===-----»-~~---~ ~--»-&#39;=~ -=---=>"=!&#39;~l1H!@!@£-e==~==: .=_;~__.. =»» ",,..;-_-_1;__.;.;.;;.,,,,.<;:
                                          ..... .....   ....                                      ____________ __-_~_-________.a_
                                                                                                                                _ _     ,
    _l@oc_e§s World
    R»      _.r
         &#39;                                               tPage                     of
                               Daily News
     Copyright c!2007, Anchorage

     Author: ERIKA         eboIslad@adn.com Staff
     Section: Main
     Page: A 1
     Dateline. WASHINGTON
                               Daily News
     Copyright c!2007, Anchorage



                                                                  FBI   Stevens 931

                                                                              9/2&#39;7/2007 1A7
     http://zephyncianchorage.ak.us:2069/iw-search/we/InfoWeb/?p_action=prin&#39;t&p_d0cid=1 1
_                                                   -   jA                                  xii
    News O
Access Worici                                                                             Page                                 of

§ nk,§.a_ Access irtforio i tiews
Paper: Anchorage Daily News AK!
Title: Deadiine bumped again for Stevens -
FlNANClAL Fil.li92iG: Ethics Committee          few
                                         wanted a     clari cations from   senator.
Date: Juiy 17, 209?

The Serate Ethics Committeehas givenSen. TedStevens a                                                                  after
                                                       second extension for iing his annnai nancial disciosure statement
             make "a fewtechnicai c§arit ications, senator espokesman saidMonday.
it askedhim to                                  the

              Saunders said couldnot elaborateon what changes neededto
Spokesman Aaron            he                                        be                made and issued a brief writtenstatement.

"The EthicsCommittee has compieted its                                    make a
                                      review andhas askedSenator Stevens to     few technical clari cations to his
               statement said.
disclosure," the                            adjustments,
                             "To makethese minor            the Committeehas grantedthe Senator another extension."

Most members Congressmet theMay 15deadline forturning in information ontheir personal nances, including book deals,
              property ownership.
investments and                                besides Stevens aiso askedfor extensions.
                                However, several

The 83-yeenoid  senator isunder cioeepublic scrutinyduring thisround of fiiinge becauseFBi raids on the offices of severe! Aiasire
              year includedhis son,ionner AlaskaSenate PresidentBen Stevens. The raids were part oi an ongoing corruption
iawniakers iest

The FBlhas askedthe eiderStevens, whois the longest-serving RepublicanSenate history, to retain records,and a federal grand
jury is examining theremodeling oihis Girdwoodhome in 2006 in connection withthe investigation.

Four current                                      have beenindicted inthe last year on federal corruptioncharges. One,former
            and formermembers ofAlaska&#39;s Legislature
                                 was           a
Rep. TomAnderson, Re-Anchorage, convictedby federal jurylast week. However, theF Blhas not con rmed whether Stevens or
his sonare targets,and neitherhas beencharged.

Stevens statement              mid~July. He now has untii Juiy 30 to
                  was expectedin                                   submit the information,according tothe U.S. Senate&#39;s Cif ce
of PubiicRecords inWashington, 8.0.Senators haveup to£20 days to tiie the report withoutincurring a S200 iine,according to
Senate ruies.
Photo 117stevens_67i7{i7.}hg

Copyright c!2007, AnchorageDaily News

Author: JEANNE   TTE J.LEE TheAssociated PressWIRE
Section: Aiasira
Page: B1
             20831 Anchorage
Conyrigiii {<1}             Daily News

                                                                                                    FBI - Stevens-932

                                           D *i 9/2&#3
                                l i MilteeA7761.<1>°l
               ....,........._...._......    .   .    -
                                                     ..          _ V ___    .   ...            . ..      ,___

;        ed
          :     says
     | Sen. S aidesign helped
    _£2%dn.com ensno Veco
        T Stevens                1 of

    ad                                                                   Page        ]
                                                                       [ Print ][Close
    Anchorage» News                                                                                             _

    Stevens aide                says no sign Veco helped with fundraisers
    FUNDRAISERS: Treasurer says "we wanted to pay all costs."
    The Associated     Press

    Published: September 28,

    WASHINGTON - Sen. Ted Stevens campaign has no evidence a contracting firm paid workers to
                                 fundraisers, the campaign treasurer said, disputing one employee&#39;s
    help run the Alaska senator&#39;s
    claim that he parked cars and performed odd jobs while on the contractor&#39;s

    The      is investigating whether Stevens, the Senate&#39;slongest-serving Republican, accepted
    inappropriate gifts from Bill Allen, the founder of oil services firm Veco Corp. Allen has pleaded
    guilty to bribing lawmakers and said he paid employees to renovate the senator&#39;s  home.

    One those employees told The Associated Press last week      that Allen also hired him to help run
    fundraisers for Stevens and other candidates, an apparent violation of campaign finance laws.
    Robert Williams said he worked three or four fundraisers for the senator, delivering     arranging
    table rentals and parking cars.

    "If he was asked to perform services, were never told he performed those services," said
    Timothy McKeever, the campaign treasurer. "We pay for all fundraising expenses."

    McKeeversaid Wednesday night that in his 20    years working for the campaign, he never recalls
    seeing people parking cars for guests at fundraisers and was unaware    any Veco employees sent
     work at the events. Allen did host fundraiser at his home for the senator last year, but
    McKeeversaid the campaign insisted on paying for expenses.

    "I was very clear with them to send us bills for everything. wanted to pay all costs associated
    with     event, Mc l<eeversaid. "We got bills, which we were told for all services."

    Campaign finance reports show no payments to Allen but they do indicate more than$12,000      in
                                                             around the time that Allen and other Veco
    fundraisingexpenses were paid in mid-July 2006. That&#39;s
    executives -- who typically donated at fundraisers rather than through the mail    $1,000
    apiece to the campaign.

                                              fundraiser but said "we don&#39;t any outstanding bills
    McKeever did not recall the date of Allen&#39;s                       have
    unpaid" for it.                                                             FBI - S £E-VEHS-933

    Stevens has made a similar statement regarding his home renovation project, saying he paid every
    bill he received. Williams, who oversaw the project, backed that up in his interview last
    saying he recalled Stevens asking Allen to send him all the bills. But Williams now suspects Allen
    did not send all the bills and instead "did what he thought he could do."

    The      raided Stevens home in July and agents have assembled bills and other documents related
    to the project. Investigators also have amassed records on Vec0 s fundraising practices.

    McKeeversaid the FBI has not asked or subpoenaed the campaign for records and has not

                      l, 0+
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         I Sen. : wens
   iadn.co1n Stevens no sign witimdraisers Page
    -in   5
            Ted     says
                    aide Veco helped     22of
l approached                                                          not
                            him. The Federal Elections Commission has also   inquired about Veco, he said.

          Though corporations are prohibited from donating money or services to  campaigns,   election -
          lawyers have said         likely cannot be held responsible if he did not know the employees were
          on the   clock.

          [7 Print               CloseWindow

          Copyright © 2007                  News
                                  Anchorage Daily    www.adn.com!

1FBI                                                                                          -Stevens-934

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IF»- M t.

     Xocess World                                                                                                                           of
                                                                                                                                          Page 1
     House calls for special session -
     SENIORCARE: Speaker asks the Senate to join the effort.
     Anchorage DailyNews {AK}
     June 1, 200;
     Author: SABRA AYRES
     Anchorage DailyNews
     Estimated printed pages: 3

     House Speaker   John Harrisis askingthe Senateto join his membersin calling themselves oasisinto special
     legislative sessionas soon as this month to address extending a state             program for Alasi<a s
     neediest seniors.
l    in aletter                                                              two-thirds
                  Thursday to Senate President Lyda Green, Harris said more than                            of the House
     membership favors coming back into session before the end of June.
     Harris requestedlawmakers readclress
                                        funding the SanlorCare programas well as legislation that
                                                                                              backers                                         r
     say could ease the funding shortfall in state pension plans.

     Before adlournihgMay l6_ the Legislaturefailed to pass bills that would have extended the $10.3 million-a-
                    program. A
     year Seniortiare         week tater.Gov. Sarah              she
                                                   Patio announced had authorized thestate to
     oontlnue theprogram foranother month after it expires June 30. The program provides checks of $128 a
     month toseniors livingon less than $i 6333 eyear for singles or $21,641tor couples.

                     tor         was                 during the final days of the legislative session.
     Continued funding Se-niorCere a contentious issue

     Several Republican lawmakers viewed the program as an expensive state-funded            entitlement.

     Some, like Rep. JohnOoghill, R-NorthPole, arguedthe state already has several underused programs for
     needy seniors.

                            special legislative sessionthis tail to revisit the petroleum production tax, the 2066
     Palln caltedearlier fora
     legislation that    at the center oi a federal orihery investigation.          or
                                                                             Three current       former lawmakers    are
     under indictmenton charges of accepting bribes in exchange tor their votes on the tax. Two executives of
     Anchorage oiiservices company Veco Corp.pleaded guiltytest monthto paying the orit-es.

     House Democrats last month asked Palin to add SeniorCare to that sessiorr.

     According to the skate constitution, tawmakens can call themselves back into a    special     session ii two thircis
i    oi them agree. The governor can also call the Legislature into a special session.
i                                                                                                                                             l
     Aides to Green, R~i/Vasllla, said the senator had discussed the possibility of aJune special session            with                     I
     Harris, but had not had achance to poll other senators to see if there was enough support.                                               l

                                                    said the Democrats supportedHarris request to address
     House MinorityLeader Beth i erltl_rla, D-Juneau,
     the issue sooner than this fall.

     "However itgets clone, want to see our seniorstaken careoi, she said.                                                                    92
     Harris, R-Valdez. said the special session should be in Anchorage. not Juneau. and before the SeniorCare                                 l
     expires on June 38.                                                                                                                      i
     "The fall is too far out," he said. "We dorrt want to get into appropriations to extend it temporarily. Thais
                                                                                                                            Stevens-935       »
     risky ground."                                                                                                                           »
     Lawmakers would need only a
                               few days to work on the bill and get something passed. he said.                                                i
     Dally News reporter Sabra A3/res can he reached at sayras@ahd.com or in Juneau at 1-907-5864683.

            .            ..                                           -doo1d=119 4
    . tttp://Zephyr.c1.anohorago.ak.us:2{}69l 1w search/we/InfoWeb?p__act1on=doc&p
                                                                                 .B6852:l17C... 9/3/2007
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-.._----.....-__-                                                                                                                                  7+

  ficsesxs DiSp1f8                                                                                                                       Page
                                                                                                                                         1 of
  Government wiil re ect pub!ic&#39;s good or bed
  AnchorageDairyNews {AK}
  May so, 200?
  Estimated printed pages: 3

  Alter oil was oisoovereoat Prudhoe Bay in i969, my dad toid me, "lf you want to see your future, go to

  My clad, Fabian,was no tan of the oit industry. He meant: if you want to see your future, go to Oittahoma
  and see ooiittcal corruption. From his perspective, wherever i3ig Oil thrived, corruption followed, and he
  woutd point to Louisiana and Texas as well as the Sooner state.

  Fabien was a son of the Midwest progressivetradition, born in Minneapolis, the home of a powerful good-
  governmentmovementfor the rst half of the 20th century.

  My clad failed to tell me the whole story, however.          upon a time, Minneapolis was one oi the most
  corrupt cities in the UnitedStates, subjectto the outrage of muokrakerLincoln Steliens.

  Steitens was appelied hy Mayor "Doc" Arne-s, physicianwhose greed apparentty became boundless after
  he was eieotec in 1900. From city heli, Amos organized crime and vice, making gamblers, saioon owners,
  prostitutes and ooh men hehoioen to him. They aii paid a cot to the government -- that is, Antes in
  exchange tor freedom to ourish. The notice department, unoler the direction of the mayors                     brother,
  guaranteed their freedom. One source says Minneapolis had 150 brothels at the time.

  in a series of essays condemning corruption, "The Shame of the Cities,            Steifens Paused to explain why
                                       century communitieswere ted by boodlers out for the
  Minneapolisand other major turn»of»the                                                buck.

  Everywherehe looked, Steffensfound moral failure,especially in the business community.

  America is ruled by business values, Steffens said, and business values are about one thing: money.

   The commercial spirit is the spirit oi pro t, not patriotism; of or-edit, not honor; oi individual gain, not naiionai
  prosoerity;of trade and dioizering, principle, Sietiens waits-o And he wasn&#39;t
                                    not                            .          finished as he went on to                                            t
  conoemn the very fabric of American commercial and political iifs.

   The Fourth of July oration is the front for graft. There is no patriotism in it. but treason. lt is part of the
  game. The grafters     for cheers for the flag, prosperity,and theparty, iust as a highwayman commands
   up ..."
  This is the prose of an angry man,         man who could conolude "the spirit of graft and lawlessness is the
  American spirit.

  You won&#39;t
            be surprised that Amos dismissed Steitens moral indignation. in a   speech to temperance                                               C
  advocates,Am-essuggesteo reformer types were disturbing Gods naturat order. Temptation has existed                                               l
  since Adam and Eve met the serpent in the garden of Eden, Amos maintained.Who were the dogoooers to
  eiiminate temptation and its fruits ?                                                                                                            r

  it American capltaiismhabitually abuses American democracy for its own ends, if the world is inherently a                                        i
       piece           abounds, dowe reform
               temptation    how          governmenthowdo we reform
                                                  -               Alasite                                                                          i
                                                                       Bi                                                  Stevens-936             l
  governmentnow that we know the serpenthad a suite at the Baranot Hotel during legislative sessions?

 Years ago, i asked the pioneergame warden                 While for the best way to ensure Alaskans obey fish and
  game laws.

   Build lots of jails, sonny, and fill em." he repiied.

      tempting to ztppiy the Sam White sotution to ooiitios, except it&#39;s
  it&#39;s                                                              oouhtfut we could maintain our
  democracyif we madethe state House ano the iailhouse                branches of govemment.

         never   time
             spent iniait.rtewasdriven o ce oy
                                     from    citizens could siand stench
                                                    who    not   the   at                                                                          .
   hall.                                                                                                                                           i
  its a terrible cliche, a traditional bromide, but people have to care about honest government to get honest                                      l

 tttp://zephyrai.a:nchorage.ak.us:2069Iiw~s                                                                                                         92
&#39; {cc&#39;esi s,Wor1c11                                                                                                    of
government. And                                   the
               they haveto createinstitutions with strengthand reach to restrain would-be corrupters.
BiilAllen Veco acquiredso much powerin    the Republican Party and the halls of the Legislature, there
was no one to restrain him. No one inAlaska, anyway. He achieved his power through his money,
dispensed legally and illegally. ls there anybody who doubts that?

lt angered Lincoln Steffensto discover the Americanpeople were complicit in the corruption of their cities,
and it depressed himto admit this was the only real discovery in his reporting. The venaiity of American
businesswas                                 he
                 Steffens oldnews, although rantedabout it.

Steffens wasdoubly angeredand depressedwhen he realized why the people were complicit in              own

          American people
Because the                          was someone else worry
                       thought politics for           to                the
                                                           about. Because American
               were     as                             the      people admired
people themselves oftenvenal as theircorrupters. Because American            wealth
even when born of chicanery and crime.

             to                   to
Government has matterto you ifyou want                  And
                                                make it honest.                  honest
                                                                     you have to be       yourself.

             and you&#39;re you    expectgovernmentthat re ects
if youdon&#39;t care not honest, can    a                     your values.
Michael Carey                   page editor the Anchorage Daily
             the former editorial
            is                            of                              reached
                                                              News. Hecan be                            at
Photo 1: Michael__Carey_BW_053007.jpg
Edition: Final
Section: Alaska

                                                                                                         FBI - Stevens 937

                                                             oid=19"/A41 C2D C87 9/3/2007
                                                                   1     B
tttp ://Zephyr.oi.anohorage.ak.us:20697iW-soarch/we/Inf0Web?p_action=doc&p_do
         News:    Disp
ifcoess Wotld Document Page                                                                                            2 of2

            federal grand jury have been investigating the extensive remodeling of Ted Stevens
The FBI and a
              in and
Girdwood home 2000,                   of
                       the involvement Veco in the project.

                   comment on the remodel investigation, but Metcalfe, the Democratic Party chairman,
ivicKeever wouldn&#39;t
                          Stevens vulnerable
says theinvestigations make                 and could embolden opponents.

                                         Stevens hassaid that depending on
According tothe FairbanksDaily News-Miner,                              who      runs against him, he
may haveto raise much as$5 million.

Over a six-month period ending March 31, Stevens raised about $686,000, McKeever said Thursday,
bringing histotal sofar to more than$1 million.

                      runs a
"Every timeSen. Stevens                                                 a
                            campaign, he runs expecting thathe will facesstrong opponent,"
McKeever said.

Daily Newsreporter KyleHopkins canbe reachedat khopkins@adn.com.
Photo 1: Ted Stevens CMYt<Z_060107.jpg
Edition: Fina!
Section: Main
Page: A1

                                                                                                   FBI - Stevens 939

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Xccess Disf ér                                                                               D                     1    2
                                                                                                                   Page of

Weyhrarrcii fought off hires of ootd, mosquitoes
Anchorage  DeityNews AK!
April25, 2007
Anchorage  DailyNews
Estimatedprinted pages:

                            and swarming mosquitoes,             Bruce
                                                    formerstate legislator      Weyhraochsays
he neverthought                   of
               aboutthe oossihiiity dyingoutingthe i7 hours he spent wet, sold and missingafter
                                                          Auke Bay.
iatting hisboatand swirnming a nearbyisteno the icy watersof
      off                   to             in

Weyhrauch   said that keeping was
                             warm                     But thoughtsabout his tight-knit
                                      his rst priority.                              familyand the
beliefthat someone  was watchingoverhim it-apt going.he saio in a teiephoneinterview
                                             him                                       Tuesdayfrom
his home.

Weyhrauch, is recovering                 He
                        fromhypothermia. fell intothe 43 degreewatersof the bay. about 15 miles
northof Juneau,Sundayevening            and     his
                            afterslipping losing balance   whilealoneon hisboat.

           he                               Coghlanisland,wherehe spentthe nightfighting
He recalled swamforaboutan hourbeforereaching                                           oft
bitingmosquitoes ooid.

His familyreported former         of
                           member theAlaskaHouseand practicing    Juneauattorneymissing Sunday
night,after the CoastGuardfoundhis BostonWhalerabandonedhut with its enginestiil running. tong
searchbegan.and Weyhrauoh                                                           at
                            was locatedon the sandyshoreof the isiandMondaymorning about it

                          rescue." said. "There&#39;s
"I didnt want to anticipate      he             no manualfor how to do this, I just had to maintain
being calm, lookat options, thenmakethe decision do it."
                           and                   and

Weyhrauch                         for
           said he set out swimming Coghlanislandafter realizinghis boat was movingtoo fast to
catch.He swam withhishackawayfromthe islandto keep the coidwaterfromrushing              core.
                                                                            intohis hody s
He kept his arms as close to his side as possitsie,he said, in oroer to try to retain hody heat. The position
caused him to swim like the cartoon character Memo, he said.

Hisfeet and tagscramped                                                                   When
                       eariyon in the swim,whilehis armsweakenedto the pointof usetessness.
he naliymadeit to theshore,he hadno energyiettand tet a wave givehimthe {instpush land.

           on                                  said he stumbled
Afterresting thesandybeachforsometime,Weyhrauch,               intothe woods.


      the          could
Across hay,Weyhrauch                  house               ferryterminal.
                        see hisfamily&#39;sand the regional

Sorted                          in                   of
             in the fetalposition wet loaves,he spentmost     the nightshakingfromthe ootdand enduring

              he          the     to
to the morning, recovered strength movehack to the oeaoh.He said he believeshe saw at teast
                         He            waved
one boatpassby the island. waveoandthe passengers    hackbut musthave oeen unawareof the
search efforts, he said.

     spotted   from Southeast Dogs
          rescuers the    Aiaska Organized     a
                                              Search,       St
                                                    xrolontegrm                                                 _q40
    and    group in    who searching evens
search rescue basedJuneau were   theisiand.
The Coast Guard airliftedWeyhrauch BartlettRegionalHospital.Doctorsreleased him late Monday

        saidTuesday tell likehe had been "locked a miiiion
Weyhrauoh          he                                             and had pain in hisjaw and
teeth from chattering.

when askedhowhisfamilywas hanctiing oroleai, said theymusthe relieved have him home again.
                                  the     he                         to

 Thedishes           to                          liveswithhiswife and three children.
          werestarting stackup, he iokod.Weyhrauoh

        was pa                                He                   and
Weyhrauch wearing floatcoatwhenhe felloverboard. saidwhilekriowledge experience
aroundSoutheast                 boaters
              watersis essentiai,             about
                                       shouldthink                a                   devicesuchas
                                                                 carrying communication

                              A113 lg~.
                           h Air
tttp:Ifzopl:tyt~.oi.anct10rage.ak.us:2069i iw~s
92cces§*Wor1d Document Display                                                                                  2
                                                                                                           Page of 2
a cell phone               when
                 a plastic bag        water.
                                  on the

                   ordeal won&#39;t
His life-threatening      stop    him from boating inthe future.

                               I        do, ignore thefact that the
"This isAlaska," hesaid. "Whatam going to                        waters   are cold?"

Daily Newsreporter Sabra           be
                                  can           sayres@adn.com.

Page: B1

                                                                                       FBI   Stevens-941

        Xccess World                                                                                                      of
        Special interests win again in Juneau, and we all lose

        Well, well, well, things just never change.

                   richest church Anchorage haveto pay even lessproperty
        The largest,            in           will                    taxes       the future "Church
                 exemption for
        scores tax                         10!.     like
                              houses," May Looks more                       behavior to
                                                              anti-Robin Hood         me. Giveto the
         take from the
        rich,           poor and             The
                                 middle class. Alaska  Legislature should ashamed.
                                                                       be                 win
               the     of
        again at cost theaverage Alaskan.   l guess can thank
                                              we               Sen. Lydafrom
                                                                        Green              some last-
                                                                                 Wasilla for
                         to     one
        minute maneuvering get this           passed.

              the oil tax bill andgas line negotiations. How
        Next is                                                       to
                                                           much arewe going give in to the mighty oil
        companies toget thesethings accomplished?

               so     in     that oil        are to                     the
        They are afraid Juneau the companies going pick upand leave state.      Pul-eeze. They
             going                      they                              and Legislature get
                          Especially when canpull thestrings ofour governor             to
        whatever they want.

        I vote every                   voting
                           and I won&#39;t be forany incumbentsfrom my district.

                      there are
        Ionly hope that                  out that
                              enough voters there           are tired theshenanigans in capital
                                                                     of              our      and vote
        get rid of thosewho arehurting Alaska.

        -- Lori Wilkins


l                                                                                                    FBI -Stevens-942

                                      is 7158
                             Wt/t/iii20 Lille 9/3/2
&#39; zftp://zephynci.anchoragc.ak.us:2069/iw-sear

 | Alaska:      trial won&#39;t
adn.com invitigations move
      political Weyhrauch                                                                    1
                                                                                          1 of

ad n                                                                          ]
                                                                  [7Page I Close
                                                                   Print_]   Window
AnchorageDaily News

Weyhrauch                     move
                   trial won&#39;t
REQUEST DENIED:               rules Anchorage is better for high-profile    case.
The Associated   Press

Published: August 6, 2007!

The corruptiontrial for former Rep. Bruce Weyhrauch, R-Juneau, will remain in Anchorage, a
federal judge has ruled.

The request by Weyhrauch to move his corruption trial from Anchorage to Juneau was denied in a
written ruling by                         John
                    District Court Chief Judge      Sedwick.

Anchorage has a largerjury pool and a larger courthouse that is more equipped to accommodate a
change of courtroom in the       of a technology failure, Sedwick wrote in the ruling.

Sedwick noted that      key witnesses in the trial both live in Anchorage. They are former Veco
Corp. CEO Bill Allen and former Veco vice president Rick Smith.

The decisionalso applies to former Alaska House Speaker Pete Kott, Weyhrauch&#39;s
and his trial will also be held in Anchorage.

Weyhrauch had said he wanted his trial moved to Juneau to avoid delays and save money.
Weyhrauch and Kott, a Republican                                1993
                                       represented Eagle River from      until this year, live in

They are accusedof selling their votes and influence to oil field services contractor Veco and Allen
during last year&#39;s on oil taxes. Their trial is set to begin in Anchorage on Sept. 5.

Weyhrauch, an attorney with a wife and three young chiiclren, served in the House from 2003 until
his term ended this               run in
                        He didn&#39;t 2006.

Allen and Smith have pleaded guilty to extortion and         related to their dealings with

[ Print
      Page                   ]

                         i                                                     FBI   Stevens 943

Copyright © 2007 The Anchorage Daily News www.adn.com!

          ;aq~a.so92.oi92a                               a                             5
                                                                     l i~iA»A~io»92"5<@e.o
http://WWW.adn.com/news/p0litics/fbi/v-printer/story/919816-4p-91                             8/8/2007
                Young n?"
            politics thehill forof crab
         adncorn 1 ; pays 7 years                    1
                                   at1°i1i*ir i.rr;1iscrs Pa

         ad n J                                                                                                Window
                                                                                                          féiose   i
         Anchorage Daiiy
         Young finaliy         pays the       biii for   7 years      of crab       at fundraisers
         &#39;CRAi3 FEED : notes        in-kind contributions;      payback is    $5,583.
         By          BOLSTAD
         Pubiished: August 7, 2007}

         WASHINGTON - U.S. Rep. Don Young  has       agreed to reimburse a  seafood trade association       $5,583 for the
         cost of providing food at his annual "Crab Feed" fundraiser for the past seven years.

l        Young s campaign treasurer said that this spring the Pacific Seafood Processors Association sent the
.        campaign an e-mail, saying the group had researched its records and determined it had made in-kind
         contributions that needed to he disclosed. The campaign wasn t aware of the contributions until                     the
         e~maii, said Robert Bohnert, Young&#39;s campaign

         Driginally, the campaign wasgoing to reimburse the industry group only for the 2004-2006 contributions,
         but decided iast week to aiso send hack the 2GO1 2003 contributions, worth about $3,175 totai. Typicaiiy,
         the Paci c Seafood Processors Association provided between $7139 to $908 in seafood for the event, Bohnert

         Bonner : said he did not know why     or his iawyers made that decision,           and referred further questions    to
         Yc-ung s campaign manager, Steven Dougnerty.

          We re not commenting at this time," Daugherty said.                 not
                                                                    We&#39;re commenting on                         this
                                                                                                 issues pertaining to

         But untii                                                                           weren
                      seafood trade association told them about the in i<ind contributions, they t        aware of
         them, Bohnert said. They pay someone to   organize   the event, inciuding ordering the food and renting out
         the Capitoi Hill Club. The annual event is a                                               congressman
                                                     Washington tradition for Alaska&#39;s Republican

         "If we don&#39;t know it, we can t do anything about, Bohnert                                what
                                                                                 said. "I don&#39;t know prompted    them to
         send it to us."

         In July,       disclosed to the Federal Elections Commission that he spent more than $262,137 from his
         campaign account to pay legal bills this year. Between March 10 and June 15, Young s congressional
         fundraising committee, Alaskans for Don Young, paid two Washington law firms to advise him.

         Young, who is under investigation by        FBI, has refused to address questions about the federal inquiry.

         Young has four major fundraisers scheduled this August whiie he is in Aiaska, Daugherty said. There s a pig               l
         roast in Anchorage on Wednesday, saimon bakes in Fairbanks and Anchorage on Aug.   13      and 15, and an                 I
         Aug. 16 goif tournament in Faimer. He aiso pians his annuai               funclraising event in September,
         when Congress goes back into session.                                                                                     i

    92   L}- riniPage Ciose ié./indosfrwy]

         Copyright Cf;2007&#39; The
                              Anchorage Daily News {www.adn.<:om!
                                                                                                     FBI ~ Stevens-944             »
             l Ben   Ben     lands j
        a§h.com Stevens : Stevensob the sea                                                 -Page                           1 of
    r                                     00

        ad                                                                                    Page I        ]
                                                                                          [Print [llw lose Window
        Anchorage DailyNews

        Ben Stevens             lands job        on the      sea
        BACK TO ROOTS:                    Senate president       will crew     on Shell    Oil support   vessel in
        Beaufort       Sea.

        By WESLEY
        Published: August 8, 2007!

        Ben Stevens, the former state                                       with
                                                who has come under scrutiny along     his father in a
                                                         new job far from his Anchorage home.
        broad federal public corruption probe, has taken a

        The younger Stevens has been hired as acrewman aboard a    work                   boat supporting     Dutch oil giant
        Shell&#39;s planned Ocean exploratory drilling campaign. _

        The job marks a return to a former seafaring life for Stevens, who for many years ran crab fishing
        boats the Bering Sea.

        A Shell                             Corp.,a
                                Bering Marine                            transportation company
                                                   unit of Anchorage based                    Lynden
        Inc., hired             as mate and relief skipper aboard the 121-foot combination tug                and landing
        craft Arctic    Seal.

        The vessel is supporting a Shell-hired drilling ship now sitting in Dutch Harbor, preparing for a
        drilling campaign later this                                                        coast.
                                              in the icy Beaufort Sea off Alaska&#39;s northern

        Stevens and the crew of the Arctic Seal have been ferrying heavy equipment and supplies from
        land to the drill   Frontier Discoverer, which is anchored offshore.

        Lynden executives said they called Stevens and offered him the job. They said he had previously
        worked for the company running boats.

        "He&#39;s licensed,
                       qualified,                        to find
                                      right now it&#39;s hardgood                 experienced employees         like that," said
        Rick Gray, president of Bering Marine.

                         Jansen      that
        Lynden president&#39;Jim added workingaboard theArctic Sealis noglamour job.He
        called it a pretty crude piece of equipment.

        "It&#39;s                  job,
                        dirty and difficult    and we pay Ben the identical wage that any other crew member
        in asimilar                                "We&#39;re real proud
                        position would get," Gray said.             to      have Ben working for us."

        Stevens, who was state Senate president until his term ended in January, has come under scrutiny
        amid a         investigation that   has resulted        in bribery   charges against    four former    state
        lawmakers, one ofwhom       has been convicted.

        Stevens, 48, was among several lawmakers whose Anchorage legislative offices were searched by
        FBI agents      nearly ayear   ago.
        He hasn&#39;t charged with any crime, but federal prosecutors have made reference to a "State
        Senator B" -- unmistakably Stevens -- who took $243,250 in bogus "consulting" fees from Bill Allen
                                              FBI Stevens 945                                                           .
                   see :.oa.o°<9292                                                1%!-92~ nw~
                                                        storyl 92033&#39;72p 91
                                                                         18 8"/5c.html
        htlp I//WWW.&Cll1.C0111/I16WS/pO1itiCS/fbi/bStGV6I&#39;lS/V-pI&#39;iI1lI¬!I&#39;/                              8/8/2007
   1 Stevens job
    Ben Ben     lands
adn.com1 Sf/ens onsea. .Page
and his oil field services company, Veco Corp.

Allen                May to bribery and other charges, and admitted that the payments to
             guilty in
Stevens were mainly for influencing legislative action. Allen also offered to            Veco
                                                                                 Stevens a
executive, court     papers say.

U.S. Sen. Ted Stevens, R-Anchorage, recently has come under scrutiny as     after federal agents
                             Girdwood home, which
searched the senior senator&#39;s             was                               and
                                                       remodeled in 2000 with Allen       Veco
taking a           in the project.

Ben Stevens, who is living                          be
                                    the boat, could not                      asked
                                                                reached. But he         his attorney, John
Wolfe of Seattle, to return areporter&#39;s

Wolfe said          that Stevens has abackground in  running          boats, as well as awife     and children.
So       the job offer came from Lynden, he took it.

           like                                           work,"                 job
"It&#39;s many of the jobs Ben Stevens has had. It&#39;s hard Wolfe said. "It&#39;s
                                                                                a                  he&#39;s
qualified to do. He&#39;syears of experience on the sea."

Wolfe added that                                                            him
                           is innocent of any charges, and that Lynden saw in                   the honesty
and integrity necessary for the responsibility he&#39;s been

He said he didn t know how much Lynden is                  Stevens.

Gray and Jansen said Stevens has been hired for the Shell project, and that the job could last until
the Beaufort Sea ices up this   marking the end of the offshore drilling season.

Whether the drilling will          however, is       question
                                               an open           as environmentalists, the North
Slope           and other challengers have won a                                     in federal court.
                                                   temporary block of Shell&#39;s plans
At issue is whether the drilling could disturb migratory bowhead whales hunted for subsistence.

That&#39;s why    ship
                  drill                                can
                           remains in Dutch Harbor. If Shell     prevail in court and also secure
some remaining permits, the ship                 the
                                     head north to     Beaufort Sea.

And so, mostly likely, will                               is
                                   and the Arctic Seal, which                               as
                                                                       mentioned in Shell&#39;s
                                                                                           plans         part
of asupport fleet to voyage to the Beaufort for the drilling.

Find Wesley Loy online at aQn_icom[c,ontact/_ _v92gl9y 257-4590.

f PrintPage Cl0seWindow 1                                                             FBI   Stevens 946

Copyright © 2007 The Anchorage Daily   News www.adn.com!

          adn.com/news/politics/fbi/b stevens/v-printer/story/ 37
http I//WWW.                                                        1 87
                                                          9203 2p-9 1 8 5c.htm1                            2007
                                                                                                       8/ 8/




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»          in
                "92            FBI
                      a;ln.,oom mveshw science Veco Page
                            veco E
                              1        contracts awarded
                                                    U                                                                                        3
                                                                                                                                           1 of
92                     n
                      ad              I     m Print                                                                Window
                                                                                                            Page Close
                      Anchorage DailyNews
92                    FBI investigates             science contracts              awarded Veco
                  ARCTIC: $170 million in research                            coincided with    support for         polar funding          by
                  Sen. Stevens.

                      By          BOLSTAD and GREG GORDON
                      l92&#39;lcClatchy Newspapers
                      Published: August 16, 200?!

                      WASHINGTQN ~~                                                                 award
                                         The FBI is investigating the National Science Foundation&#39;s of $170 million
                      in contracts to the oil field services company that oversaw renovations on U5. Sen. Ted Stevens

                                              lucrative flve year NSF contract in 3.999 to provide logistics and
                  The rm, Veco Corn, captured a
                  support for polar research, although it had no previous experience in that eld. During the same
                  time period, Veco s top executive managed renovations that doubled the size of the longtime
                  Republican senators Girdwooo home ~ the scene of a Joly 30 FBI raid.

                              Dana Cruikshank
                  NSF spokesman              told MciilaicchyNewspapers that the FBI has made inquiries into
                  the 1999 award, worth up               $70 million, and a2004    follow~up contract for as many as seven
l                                                  to
                  years that the company values at up                                                         Sierra
                                                                   $100 million. Justice Department spokesman Bryan
l                                                                                               leading
                  and spokeswoman Deborah Weierman of the FBi s Washington field office, which is                                      the

               "-~~-~-~~~ »~~         .  .
      ~ *-~-~-&#39;-~-&#39;~~" ~~ ~--_-= _~-    . .-_a-__.=._._........~_...___
                                                                          __        . _.._____;.-___._-_._,_.._.-__._ .,..___...
                                                                                                      _:I1Il92VA92P 924>~92l   ....,_92___.__ _,_.

           1: FBI
       eqinoom invesiigiscontractsD
           veco     science awarded
                                 Veoo                                                                                     3
                                                                                                                       2 of
       them and provides equipment and communications during their stays.
       Stevens wouid not comment on any aspect of the investigation and has refused to taik about the
       FBI raid on his house. spokesman said that the 83~year~oid senator has long had an interest in
       seeing more money spent on Arctic research.

        Sen. Stevens has tong been a supporter of increasing federal funding for Arctic research, said
       Aaron Saunders, the spokesman. "Aiaskans, more than anyone in the nation, are feeiing the effects
       of ciimate change. in order to understand the causes and impacts of these changes, Sen. Stevens
       oeiieves that a variety of agencies must heip us iearn more about the Arctic. As an appropriator
       and a senior member of the Commerce Committee,            it is Sen. Stevens         roie to ensure government
       entities receive the necessary funding to carry out this important work."

       As far back as 1994, as a member of the Senate Commerce Committee, Stevens championed
       putting more Arctic research money into the NSF budget. In 1997,     when a government advisory
       group overseeing Arctic research issued a report detailing disparities in research between the Arctic
       and Antarctica, Stevens became a standard bearer for the cause.

i                                                        what
        I know that Sen. Stevens was very strongiy taken with                     we had uncovered in the study," said
i      GeorgeNewton,a research             LLS.
                              engineerand former                    Navy submarinecaptainwho servedfor 12
       years as chairman of the panei, the Arctic Research Commission.                    said Stevens cited the study
       as oasis for appropriating more money for Arctic research.
       Unsoiicited,Stevens out $25 million into the cornmissiorfs budget without ever expiaining why an
       advisory panei instead of the hlationaiScience Foundation wouid get the money. The funds were
l      iater shifted       NSF.
                       to the

       Newton said that when it came time in 1999 to award a poiar iogistics contract, it was believed
                                                               reiationship to Stevens son might give the
       within the NSF and in polar research circies that 921 eco s
       company an advantage.

                                  TO WIN

       in Allen&#39;s admittedpayingfees to the youngerStevens consulting
                plea, he                                                      firm beginning1995
       ~~six yearsbeforehe was appointed the state Senate. From 2002 2006 when he was a state
       senator,Stevenswas paid$243,250 by Veco mainlyfor "givingadvice, lobbyingcolleagues     and
                    acts in mattersbeforethe legislature,"
       takingofficial                                    Ailenadmitted in court filings.Allenalso
       offered to make Stevens a 92/eco
                                      executive, the lings say.

       "Thethoughtwas going around,that as the competitionwas goingon within NSF, there was
                                                 to                      "A
       alwaysthistaik that Sen. Stevens son was connected Veco, Newtonsaid. wink of an eye, so
       to speak,amongpeopiewho were not invoiveci the evaiuation.it was water cooier
       °°i    @i5aii°* » "                                                                          -
                                                                                                    FBI Stevens 9¢i8
F      One iosing               the of            s
                 bidderquestioned fairness 92fecoinitialaward in 1999 and said it shouid"hear
i      further scrutiny.
                      who submitted proposai behalfof the Universityof i92iebrasi<a s Ice
       MarijaneHancock,            a       on                                     Poiar
i                                                                                            gearing up
       Coring Office in partnership with a Canadian company, said she couid not imagine 92> eco
            l veco         science awarded
        a5in.<;ominvesti$s contractsVeco Page
                                        U                                                                         3
                                                                                                                3 of
        to 2080, earning $17 miilion over the final six years.

        Kari Kuivinen, who              the Nebraska project in the i99Os, said Veco came from nowhere to win
        the successor    contract.

        No one knew the coritract s vaiue until the agency oated a formal request for bids on April 23.,
        1999, said Mike Ledhetter, a former Science Foundation technical manager whosat     on a panel that
        reviewed competing bids.
l       Leclbetter and Hancock said that Veco gained expertise by hiring several former employees of
        Antarctica Support Associates, acompany that performed similar support services on the South

        Hancock, now a University of Nebraska assistant vice president for academic affairs, said she
        drafted a protest letter when Veco won the contract, but her bosses decided not to send it. Among
        other things, she complained that Simon Stephenson, the National Science Foundation&#39;s contract
        manager, had developed iong~term personal relationships" with the former Antarctica fieici
        workers who were hired by 92/eco.


        The NSF declined to make Stephenson or anyone eise avaiiable for an interview.

        Hancock also noted that, when              bidders were invited to send personnel to Greenland to
        tour the main site of the research in 3une 2008, two Antarctica workers missed a sign up deadline.
        She said NSF officials then asked her office to escort the two, who           said, were provided
        personal, extensive and special access to all aspects of our operation.

        We iearned in the middle of December, after the contract was awartled, that the two inciividuais
        we                                                            their
                          went to work for Veco Rocky Mountain Inc., on       contract, "she wrote.

        Veco had no previous government logistics            contracts of such scope, but the company s work on
        North Slopeoil fields gave it experience operating under harsh Arctic conditions. The entity set up
        by Veco to manage the NSF logistics contract, Veco Polar Resources, was formed after           its parent
        company landed the work in 1999.

        NSF said                major
                there had been no                                                on the
                                                 problems with Veco&#39;s performance contracts.

        Since Aiier sguilty plea, he has stepped down from Veco. The Coiorado engineering firm CHEM Hill
        is in negotiations to buy Veco for $463 miliion.

                                                                                            FBI - Stevens-949
        Researcher Tish     Welis contributed    to this   story.

           Print Page        Close Window

I                 2007
        Copyright ©       The Anchorage Daily News {www.adn.com!
       Ft,                     Weyhrauch
                       Rep. Bruce                asks separate.tr1&#39;a1 from
                                      :EX-legislator for                              Pagel
                                                                   co-defenda;1t~..., of&#39;3

                                                                                                &#39;] Window
                                                                                                  Qlose ]
             Anchorage Daily
             Ex-legislator asks forlseparate trial                                  co-defendant Kott»
             CORRUPTION CASE: Attorneys are           mum on      reasons for       the motion.
             By us/x
             Published:August          2007!

                 weeks                           trial
                                     the corruption ofrformer Reps.
                                                           state Bruce Weyhrauch Pete.
                                                                             and   Kottis set
                                   ajudge. tosplit hiscase.from.that of co-defendant.
             to begin,Weyhrauch wants                                 his
             No onewillsay why.

                      and supporting
             The motion                          filed                              same
                                   docurnents were underseal, outof publicview. It&#39;s
                                                                                   the                            story
             with much of the legal                in the case. Lawyers involved say they couldn t"tall< about the
             issues even they wanted to.                                                            _            -
                                                  >    .
                      lot going                                                                before
             "There&#39;s .a on behind the scenesand it involves evidence that we can&#39;t discuss the
             trial, said Doug Pope,                     attorneys..
                                          of Weyhrauch&#39;s                                                  .

                               to begin    though that
             The~trial isischeduled Sept. 5,                    U.S. District
                                                     could change.                   John
                                                                           Court Judge
                                                      motions. "
             Sedwick~ ha&#39;syet to:rule"on~several&#39;sealed 1                             r "*

                         case      accusations that
             The Corruptlori involves                         oilfield services
                                                 officials with                            Corp.
                                                                              contractor veco
                       legislators to
             bribed the.                    an             tax                            the
                                    help push oil-production favoredby the industry through
             Legislature in-2006.                                    i          v

                          executive, Allen vice        Rick   have     guilty to
             Veco&#39;s*former chief Bill , and president, Smith, pleaded
              .a                                legislators L-,KO_UI,.~
             Ibribery n,d..cgm&#39;_spiracy. .involving.;fgu1:                                            Vie
                                                                 -Weyihrauch;;-indictecl~-former Wasilla:-Rep=
                                           .Ben~1Steven_s,~~who .was:describ&#39;ecl-=
             Kohring..and..formei3 Senate iléresident                               rt
                                                                   but-not ~named~~in~-eou
             documents. Kohri g has an October trial date.                           charged;
                                                                         hasn&#39;t been              &#39;

                     Smith arenow .coopera&#39;ting.~with
             Allen and                                                         be
                                               the governmentand areexpected to key                     witnesses, at
             the trial. They&#39;ve resigned Veco.                                   *

                     from indictment that FB1
             It appears the                                        Ve&#39;co juneau&#39;s
                                      the used electronic.surveillanceof     s.s uite in
             Bara n&#39;o _f Hotel evidence.                                              _

                                          totaling $8,993. thepromise ofaijo&#39;b,from_92/ecoin exchange
             Kott isaccused:of-taking payoffs            and
                                   bidding.                  of
             for doing the company&#39;s -Weyhrauch.ls accused soliciting legal work from veco. _

                        reasondetendanttriessplit offahis is he~Won&#39;tby his .,
             Generally, one    a             to       case so     tainted
                                                                 be           c0
                           Rex        3. prominent_Anchorage;;ciiiminal.
             gefe_nda_nt, said _B,utl_eif,.                          defense. attorney.not,.con&#39;nected with
             the Kott Weyhrau_ch case.                                                                              ~

             "First of all,                      knee
                                person might be really         deep in the trouble Whilethe other person is asurface
                           said. "Theproblem in_la
             player," Butler               is,                 avjuror   one downpthey
                                                 joint trial,&#39;if takes           almost always
             will ta&#39;l e&#39; down.&#39;"

                              .FBI                    Stevens-950                        T                          &#39;

                 9~9- 9292<$c>U3 t»92
                           __ _                                           2 ~i>?r1
                                                                                               - i.92i-;.l3le2; &#39;!
             Ihttp2//wwvvsadnicom/newslp01mos/ u1/ Weyhrauch/v=pnnter/story/92 = i2~1&#39;c;"&#39;ht11_1.1
    L        Bruce asks separate          2 of
           lRep.Weyhra%1 for trial co-defendant
        ag1n.o92om IEx-legislator E311 Page  3
        The specifics of the           against Kott and Weyhrauch differ, though they were indicted
                  3                                                             extortion
        together May and face similar charges: conspiracy and bribery against both;           and wire
        fraud against Kott; attempted extortion and mail fraud against Weyhrauch.

        Kott is described in the indictment as willingly
                                               doing         Veco&#39;s
                                                             bidding         and meeting
                                                                                 with           Allen and        l
        Smith in the Baranof s Suite 604 to plot strategy.

        As laid out in the indictment, Weyhrauch&#39;s was smaller. But he is accused of following Kott and
                instruction to change his vote on an amendment opposed
        Allen&#39;s                                             by          the oil industry. He had
        mistakenly voted the wrong way, the indictment
                               a                                   in
        The charging document quotes conversation between Kott and Allen           Suite 604 after the
        amendment was defeated on May   2006:

        Kott: "I had to get er done. So, had to come back and face this man right here," pointing to
        Allen. "I had to cheat, steal, beg, borrow and lie."

        Allen: "I own your ass."

        Co-defendants may want to point the finger at each other, but that can backfire in     joint trial,

         Both parties will end up convicting each other," he

        Defense lawyers also may end up stepping on each other&#39;s And there can be problems with
        evidence when one defendant has made incriminating statements against the other, Butler" said.

        Plus, defense lawyers like looking like the little guy up against the government with all of its power
        and resources, Butler said. The image doesn&#39;t as well with a table full of defense lawyers.

        Jim Wendt, who represents Kott, said he probably won t opposethe motion to sever the cases, but
        he won&#39;t in, either.

                     defense, You&#39;ll to wait and see, but our defense is basically that our guy is not
        As to Kott&#39;s           have
        guilty," Wendt

        Weyhrauch attorney Pope said that his client is innocent and never sold his votes.

        Prosecutor Jim Goeke declined to comment on the upcoming trial or the maneuvering.

        Jury selection is scheduled to begin Sept. with a bigger than-normal pool of 120 potential jurors
        from Southcentral Alaska and beyond. Judge Sedwick has ordered that potential jurors be pre-
        screened with a questionnaire.    asks whether they know the defendants, lawyers or key
        witnesses; what they&#39;ve seen or heard about the case; and whether they already have
        opinions about Kott and Weyhrauch.                                                           _

         is                                                                                 2006
        Kott a former House Speaker from Eagle River first elected in 1992 and defeated in the
        Republican primary. He now lives in Juneau. Weyhrauch is a Juneau attorney who served two
                        run        2006.
        terms and didn&#39;tagain in

        Find Lisa Demer online at adn.com[contact[ldemer or call 257-4390.             -
                                                                                       FBI SteV¬l&#39;lS-951

   t_i,.__ .a. ,_%==-._>.;;:;_%_=.;_           ._
                                              _____7_   ____ ._   ___
                                                                   __   »_ --»~~    ~                 ____ ~ ~   f

   Rep.Weyhra%1 :for separate Page 3
        BmceEx-legislator asks
a§1n.<io£11 I                 $11     of 3
                        trial co-defendant
[ Pri:{tPageClosewindow ]

Copyright ©                      News
                   The Anchorage Daily   www.adn.com!

                                                                                   FBI -Stevens-952

h p ://WWW.adn.com/news/p0litics/ ui/weyhrauch/v printer/story/9228400p-9121c;htm1 8117/2007
    ii              _s___________._               .._._._
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                                                                      .W        ____..,       _ ..,__

     I Alaska
    atincom invc:s..tigations be &#39;of
         I.   _:
               d  Legislators paired 1 2
                       conuption    Page

                                                                           Page ] ]
                                                                       [W__Priint [ Closiefwindow

    Legislators          corruption trials may be paired
    TWO LAWMAKERS,         ONE TRIAL:           recommendation
                                        Judge&#39;s                  comes with    hearings     set to
    start Sept.
     Published: August 28, 2007!

            public       trial  a
                 corruption justover week    former
                                         away,             Pete and
                                                  stateReps. Kott Bruce
    Weyhrauch are maneuvering to throw out big chunks of the prosecution case.

    Wiretap evidence. Secret video recordings. Statements       "unindicted co conspirators,"as the
    prosecution calls

           and Weyhrauch&#39;s
    Kott&#39;s              defense lawyers are filing court pleadings at a furious rate as the Sept. S
    trial date nears. Prosecutors,meanwhile, say at least part of the legal battle is too late.

    On Monday, a magistrate judge issued a recommendation that the two former lawmakers be tried

    Weyhrauch»                                                  His reasons weren&#39;t publicly
               was trying to split his case apart from Kott&#39;s.                   stated
    because the argument, like         in the case, was filed "under seal." But in his 12~page
    recommendation Monday, Magistrate Judge John  D.       Roberts shed some light on the issues raised
    by Weyhrauch:

    ~ Worries about a spillover effect, if the government has more evidence against Kott. Frequently,
          the situation with co-defendants, Roberts wrote.

    "The argument that Weyhrauch never became intoxicated, used foul language or was given a hat
    with the letters "CBC" corrupt bastard&#39;s may serve to distinguish him from the actions of his
                              assessment of the case," Roberts said. Jurors should be able to separate
    co-defendant in the jury&#39;s
    the evidence against each, and the judge may give special instructions along those lines, he said.

    - If the two men are tried together, Weyhrauch&#39;s                          may
                                                     defense lawyer believes the prosecution       try
    to prove there were multiple conspiracies, but Weyhrauch is accused of participating in only one.

    Weyhrauch and Kott were indicted on       charge of conspiring with two Veco Co. executives, Bill
    Allen and Rick Smith, and others on the rate for a new        oil tax. Both Allen and Smith have
    since resigned. Veco is an oil field services company.

    If evidence of multiple conspiraciesis proven at trial, that could be harmful to Weyhrauch and            l
    make a conviction"vulnerable to attack on appeal," Roberts acknowledged. But until the trial
                  impossibleto know whether that will be the case, he said in his recommendation.
    happens, it&#39;s

    U.S. District Court Judge John Sedwick ultimately will decide the issues.

    Doug Pope, one of Weyhrauch&#39;s  lawyers, said that despite Roberts recommendation, his client&#39;s
                                               -- after
    case still could be split apart from l<ott&#39;s the trial begins and evidence is admitted. That&#39;s
                                        FBI   Stevens-953                                                 .
                   349 gm                                                      t3Ca9_e-1v92 1-
                                                                        lqL£ l~I l iU"
                                                           8/28132007 92
    http://WWW.adn.com/news/politics/ vi/v-printer/story/9258631p-91&#39;
   IAlaska :Legislators paired Page
      political invos tigations
                           ng be    of
¬i&#39;¬lIl.COl&#39;I&#39;1 trials2 2
usually how such matters play out, he said.

The deadline for motions was July 24. That&#39;ssame day prosecutors turned over to the defense
1,601 pages                                search
                materials used to support their                            simply
                                                      warrant application. There        wasn t
enough time                                             lawyer, Jim Wenclt, wrote in a
                handle that volume of documents, Kott&#39;s                           court filing.

Judges can
        allow                       make new
                           lawyers to                   at
                                           arguments, even thislatedate.
                                           the                         "because the materials
The reason the prosecution didn&#39;t provide documents sooner? It&#39;s
disclose multiple ongoing, non-public investigations," according afiling by prosecutors.

The details of the search warrant documents remain largely hidden from the public "under seal,"
 use the court term.
to                           have
                            sides       documents
                                       filed          that way. Prosecutors said in one court
document that they didn t want information about other suspects or investigations to become

Roberts ordered on Friday that no more documents in the case be      under seal unless the
lawyers first get permission from a           surprised
                                   judge. The order         the defense lawyers.

"He came in like acowboy    out of left field on that," Pope said.

                            returned Friday or Monday.
Calls to prosecutors weren&#39;t

Weyhrauch, aRepublican from Juneau, did not run in 2006. Kott, a former Republican House
Speaker from Eagle River, was defeated in the 2006 primary and now lives in Juneau.

Find LisaDemer onlineat adn.com,[contact[ldémeror call

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                                                                             FBI   Stevens 954

htip://Wwwadn.com/news/politics/fbi/v-printer/story/9258631p-9172777c.hl:ml 8/28/2007

                  | alaska BenStevens
          ac_in.com                 ID&#39;d
                                                A                                                      1
                                                                                                       Page of 2
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          Anchorage Daily News

          Ben Stevens               as
                              ID&#39;d Senator         A
          COURT FILINGS_: Ex-legislator had only been named in news reports.
          By LISA DEMER
          Published: August 30, 2007!

          In acourt ruling this week, a federal judge identified former state Senate President Ben Stevens as
          an alleged co c0nspiratorin a bribery scheme                              field
                                                                    legislators and oil   sen/ices contractor
          Veco Corp.

          Though news reports named him months ago, it was the first time Stevens has been so named in a
          court document.

          The development was just one of the intriguing pieces of information popping up in court filings as
                                                                                                     set to
          the public corruption trial of former Reps. Pete Kott and Bruce Weyhrauch approaches. It&#39;s
          begin Sept. 5.

          "The evidence which the United States will present at trial will show that state Senator     is, in fact,
          Ben Stevens,"     District Judge John Sedwick wrote.               I

          The indictment against l<ott and Weyhrauch says Senator       conspired with them and two Veco
          executives to benefit the company.

          In particular, the document describes a June 5,2006,  telephone conversation between the senator
          and former Veco chief executive Bill Allen.   the phone call, the two agreed that Weyhrauch came
          to support oil tax legislationfavored by Veco because Allen had promised him legal      for the
          company. Weyhrauch is a lawyer.

          Stevens                                                                      2006
                            as a Veco consultant for years, making $243,250 from 2002 through             while
          he was a state senator.

          John Wolfe, a Seattle lawyer      represents Stevens, said he was disappointed the judge named
          Stevens publicly without giving his client a chance to object. Stevens hasn&#39;t charged in the
          ongoing corruption investigations.

               concernedabout the impact that this will have on Mr. Stevens ability to get a fair trial" ~-
          should beindicted,
                               said.                                                       -
                                                                                           FBI Stevens-955

                                            done wrong,
          At any rate, Stevens maintains he&#39;s nothing             Wolfe said.

          In other developments:

          ~ Prosecutorswon tbe able to tell jurors that Weyhrauch allegedly cheated on his legislative per
          diem allowance. They wanted to include such evidence as "prior bad acts."

          Sedwick ruled Tuesday that even if Weyhrauch was chiseling on his per diem claims, that&#39;s   a lot
          different than being accused of selling his legislative office. But it&#39;sthe kind of behavior that

1    _                                    r.81l§3§3O
                                    i8édQD l1*i
,_ ,i,   _id                      ._, ,.    l       1 _.._          I-                                                 ,.   . .   .,.»._.,___

               |aiaska SteVens¬
                 : Ben Senator
         g, ;1_,<in.f:om as A d
                   kw                                                                             Page
                                                                                                  &#39;                        of
               outrages voters. Jurors may unfairly leap to theconclusion                   legislator
                                                                                       that a                        his
                                                                                                         who cheated on
               legislative allowance is guilty of everything else, too,             judge said.

               ~                  lawyer to
                Efforts by Kott&#39;s     dismiss various charges were struck down by Sedwick. Attorney Jim
               Wendt attempted to file legal                                                    if
                                                      past the deadline, but the judge said no. Even the
               pleadings were on        they lacked merit, he ruled.

               Meanwhile, some trial                   will be sorted out at ahearing   this morning before Sedwick.

               Find Lisa Demer online              admcomlcontactgldemer or      call 257-4390.

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                                                                                                          FBI   Stevens 956


                                9263 044p-917791Oc.htm1 8/0/2007
I http://Www.adn.com/news/a1aska/v-p1&#39;inter/st0ry/    3i
1g92,.          political invatigations illegal Page
         :~{{in.o0m                detention 81$1 2
                           : Kohring his           of

         ad                                                                                             Page
                                                                                                    [ Print ][ Close Window
         Anchorage DaiiyNews

         Kohring claims                    his detention              was illegal
         FBI RAID: He                        not
                                          he was        read his      rights during      questioning.
         By      DEMER
          Published: August                2007!

         Former state         Vic Kohring claims that when FBI agents raided his legislative office ayear ago,
         they illegally detained him                                      interrogation
                                           forced him to submit to hours of                         reading
                                                                                           without ever
         him his rights.

         Kohring was indicted on bribery, extortion and conspiracy charges in May. He accused of  selling
         his office to oil   sen/ices contractor Veco Corp. and resigned his Wasilla House seat in June.
         Trial is   set for    Oct. 22.

                                                    trying to suppress evidence seized in and statements
         His lawyer, John Henry Browne of Seattle, is
         made by Kohring during the Aug. 31, 2006, search.

         New court filings told from Kohring s point of view are full                       drama:

         Around 11 a.m. that clay, FBI agent Alan Vanderploeg called Kohring on his cell. He was with a
         friend, headed to Palmer to check     apickup for use in his House race. The agent insisted they
         meet right      away at                        office.
                                     Kohring&#39;s Wasilla

         "Five armed FBI agents, who were already waiting there, created a quite                                      scene," when
         Kohring arrived.

         The agents said they had a warrant to search his office, but never produced it, according to
                         Instead, the court papers say, they pressured him to
         l<ohring&#39;s story.                                               consent    to asearch so no
         warrant was          needed and     threatened to     tell the    media if   he refused.                     ~

         The FBI advised Kohring to send his aide home, which                           says in astatement    he later regretted.

         "Then, while Kohring was isolated and segregated, the agents finally revealed that he was not only
         a witness, but also a suspect as well, and displayed a        folder
                                                               thick file     with his name on it ostensibly
         containing incriminating information, though the agents never            its contents," says one of
         the court filings.
                                                                                                             FBI   Stevens 957
         The FBI investigation dated to                      his lawyer wrote.

         The agents told Kohring he wasn&#39;t arrest, but made it clear he wasn t free to leave, Kohring
         claimed in      his statement.      In fact,   they locked       the front   door to
                                                                                            his     and
                                                                                                    office                 him
                                                                                                             wouldn&#39;t let go to
         the bathroom or get adrink                of water, his lawyer contends.

         The totality of circumstances - including a "police~dominated atmosphere - shows that he was in
         custody, yet he was never read his Miranda rights, Browne argued. No reasonable person would
         have felt free to leave, one of the motions says.

         hitp://www.ad;n.com/news/p0litics/foi/v-printer/story/9264027p- 8o.htm1                                          . .8/30/2007
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                 Alaska political
                               Kohring claims
                                      :      illegal Page
             aglucopi | inv tigations his Cl6iZ6I1&#39;[iO1&#
      I3 I92 -I

             Kohring was able to phone a friend and attorney, Robert                   Hall. He contends the FBI pressured him
             to hang up -before getting any useful advice.

             Hall was so                                             office                        let         in
                                               he rushed to Kohring&#39;s but the FBI wouldn&#39;thim in, Hall says                            a
             court filing.

             "The                                                                                   Kohring
                          persisted in searching and questioning in excess of two hours, during which
             was isolated in his locked offices while his friend and personal attorney sat in the hallway, barred
             from entry," one of the motions says.

             Near the end of the inten/iew, after agents told           he was asuspect, "they threatened him
                                                                                              his association
             with 20 years in prison if he did not answer incriminating questions in regards to
             with VECO corporation," Browne wrote. They termed it "the Martha Stewart question." The
             homemaking diva went to prison for lying to investigators.

             The search ended after 2 p.m., according to

             Prosecutors and the FBI dispute Kohring&#39;s claims, said Joe Bottini, an assistant U.S. attorney. They
             will file their detailed response in court, he said.

             Kohring himself told adifferent                story the day of the search.

             "I fully          and answered all their questions," Kohring said in a written statement back in
             August 2006. "I was told that I am not atarget of the investigation and was asked not to discuss
             details of      the interview."

             Kohring wants the judge to move the trial     Washington state because of allthe  publicity in
             Alaska. His trial could     place around the same time as a special session set to revisit the state&#39;s
             new oil tax. Gov. Sarah Palin called     session because she said the bribery cases taint the tax
             legislation passedin                            _                    92                                                      - .

             Two other former representatives, Pete Kott and Bruce Weyhrauch, go to  trial-just before Kohring.
             Former veco Corp. executives Bill Allen      Rick Smith are expected to be key witnesses. They
             already -have         guilty to bribery and conspiracy.

             Browne also wants the government to reveal all promises made to Allen and Smith for their
             cooperation, as                                                                          Tom
                                 as to two witnesses who testified earlier this summer against former Rep.
             Anderson, who was convicted of bribery and other charges.

             A hearing on              requests to suppress evidence is scheduled for Sept. 17.

                                                                                                                        FBI      Stevens 958
             Find Lisa Demer online                 adntomlcontactlldenler           257-4390.
                                                                                 or call                                           ,

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   lAlaska:                       1 2
      political Kott, outline case of

                                                                     [ PrintPage Closewindow

Kott, Weyhrauch                 outline their corruption         case defenses
TRIAL: They are accused of bribery, fraud and conspiracy.
Published: August 31, 2007!

The government has misinterpreted innocent              as a corrupt conspiracy involving officials of
                                                                  go to trial say in recent court
the oil field service company Veco, two former legislators about to

Former            speaker Pete Kott, R-Eagle River, and former Rep. Bruce Weyhrauch, R Juneau, say
they expectto showduring their trial, set to start next week, that they        nothingwrong in taking
money from or discussingfuture employment with Veco head Bill Allen and one of his
presidents, Rick Smith.

The <:o~defendants                                                                   Court
                   gave outlines of their cases in briefs filed this week in U.5. District        in
Anchorage.The men go on trial for bribery, fraud and conspiracy on Wednesday, the second trial in
the four year federal investigation of political corruption in Alaska. In the first one last month, an
Anchoragejury found former Rep. Tom Anderson, R-Anchorage, guilty of all       seven     counts he faced.

Though only sketches, the trial briefs give the rst indications of the cases that Kott and
Weyhrauch hope to make. They were filed in advance of a pretrial hearing Thursday, in which
housekeepingand some jury matters were resolved by U.S. District Judge John Sedwick.

Sedwick dismissedthree dozen potential jurors even before they were required to appear in his
courtroom in the Anchorage federal building on Street. Making his decision after reading their
responses writtenquestionnaire,
                                   ruled                       jurorsappeared be
                                        that 36 of 120 potential            to
incapableof rendering a fair verdict or would have found it too great a hardship to attend daily
court sessionsfrom a.m. to 4:30 p.m.

By contrast, state court jurors typically serve a workday that ends in early afternoon, enabling
them to attend to at least some of their routine daytime activities.

         estimated trialwould for at leastthreeweeks.
Thelawyers       the         run                             be        to
                                                    Thatwould longenough
                              plannedby at least two jurors, while one collegestudent
interferewith medicalprocedures
would vebeen set too far      in his classes, Sedwick said. About 24 potential jurors said they had
already made up their minds, had biases against politicians or were close to participants in the
case, making them ineligible.

None of the jurors    identified by name, only by number and sometimes by gender. In a few
cases, Sedwick and the lawyers chuckled over questionnaire responses, but the jokes weren&#39;t
shared     with the rest of the courtroom.

The remaining 84 jurors will be summoned to the courtroom next  week,      where they will be
individuallyquestioned about         backgrounds and what they think they know of the facts   in the
case. Despite all the publicity surrounding the federal investigation, Sedwick said he expects there
to be enough unbiased -- and perhaps uninformed -- members                           12
                                                                    the jury pool to seat   jurors
                          FBI    Stevens-959

                                  .. . .                          it ~ -l%L@2O~iil; l
htip://www.adn.com/news/p011t1cs/fb1/v-printer/story/9266860p-918 8/31/2007
           :                      2 2
adn.co ,| in /ei Kott, outline case of
     political gations theirooonuption
   Alaska          Weyhrauch      Page
and at least two alternates.

In its indictment, the government                        were
                                         that Kott and Weyhrauch          in a pay for votes scheme
with Allen and Smith, selling their           on oil tax and gas pipeline legislation in 2006 for cash
and                          work.
          or the promise of future

                              false.                                     who
But the defendants say that&#39;s Both assert they were pro-development legislators            didn&#39;t
need to be       to vote in favor of the oil industry.

            intent                                   he
"Mr. Kott&#39;s was always to support legislation that      thought was in the best interests of the
State of Alaska and in support of the_almost universally agreed goal of getting a gas pipeline for
                               attorney said in his trial memorandum.
the people of the state, Kott&#39;s

Weyhrauch likewise said the evidence        show that he "had a long-standing commitment to
sensible development of Alaska&#39;s

One evidence of a                                                                by
                 bribe to Kott, the government asserted in the indictment, was a payment
Veco of a "fraudulentiy inflated" invoice of     to Kott&#39;s              August 2006.
                                                          flooring company in

Kott says nothing was wrong about that payment.

"Defendant                       at      $7,993
         Kottwill presentevidence trial that                of the monetarypaymentsreceivedwas
not for his acts as a public official but for his  installing and repairing hardwood flooring for Bill
Allen, a task he has performed for many politicians, business people and citizens," he said. He
acknowledged in his filing that the work was never completed, but excused that failure "because
                     Mr.                 the
this casehasprevented Kottfrom completing work.

Weyhrauch, his memorandum,
         in              indicated                         by
                                  that the plea agreementssigned                   Allenand Smith
would be fodder in his case. The agreements, in  which Allen and Smith hope to reduce theirjail
time     cooperating with the government, gives the two ex-Veco officials incentives "to provide
helpful, even if fabricated or exaggerated, testimony to assist the government in their pursuit of
Mr. Weyhrauch and others.

Find Richard Mauer online at adn.com[contact[rmauer      or call 257-4345.

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                                                                                 FBI - Stevens-960

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i__.,   _,,*___g.&_ __,_        ,__       ___.    .   .   .   . .               ..        .                        .         _

                : Prosecuto kect
            .9§§n.com| new against
                r~-     allegations
                           _>                                                                                          1 of
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              i92nchorage- News                                                                          ~

             Prosecutors direct new allegations                           against    Kott
             UNLAWFUL GIFTS: Prosecutors say Kott started accepting benefits from Veco officials in

             By RICHARD MAUER
              Published: September 4, 2007!

             As federal prosecutorsprepare to begin their case this week
             against two former state legislators, they have unveiled new
             allegations that one, Rep. Pete Kott,           unlawful
                                                       been taking
             gifts and benefits from Veco officials since 1999.

                                                                                         Former Eagle          lawmaker Pete
             Kott, a former House speaker who ran a flooring business on
                                                                                         Kott is led out of court following his
             the side, stored equipment from 1999 to2006     at a warehouse
                                                                                         arraignment Juneaulastspring.
             owned by the oil field  service company, the government said in               Kott and Bruce Weyhrauch of
             a recently unsealed motion. The government also alleged that                Juneau have pleaded not guilty to
             Kott received $12,000 in equipment from Veco or its former V                federalcharges. CHRIS MILLER/
l                                   2002, and that Allen gave him $5,000 in
             chairman, Bill Allen, in                                                         TheAssociated Press!
l                        year,
             2004. The next         Kott took possessionof tools and other                 ~ A A
             items that Veco bought in charity auction, prosecutors said.

             Those alleged actions were in addition to conduct charged in the seven-count indictment returned
              a                                                            River
             by federal grand jury in Anchorage in May against Kott, an Eagle        Republican, and former
             Rep. Bruce Weyhrauch, Juneau Republican. Most of the alleged illegal activity in the indictment
             took place between September 2005 and August
             Both men have pleaded not guilty to bribery, extortion, fraud and conspiracy. Their trial begins
             Wednesday in Anchorage before U.S. District Judge John Sedwick.

             In the days leading up to the trial, the two defendants have also been firing back at the
             government, challengingsome of the legal theories of the prosecutors. They aredisputing the
                           assertions that the two men had a duty to disclose they were seeking work from
             Vecoor BillAllenat the sametime they were votingon issuesaffectingVeco.

             Kott also asked the judge to prevent the government from bringing up alleged prior bad acts" that
                     specificallycharged in the indictment.                                         I

             Allen and former Veco      president Rick Smith are expected to be key government witnesses.
             They have pleaded guilty to bribing legislators and hope to get their sentences reduced by
             cooperatingwith the authorities.

             In disclosing they intended bringup Kott&#39;s conductto the
                         that           to            earlier                                         government            K
             prosecutorssaid they expected Allen and Smith to testify "to the general scheme to provide Kott
             with things of value in exchange for securing Kott sagreement to take officials acts to benefit
             Allen, Smith and Veco."

                                    attorneys said in a court filing last week that Kott was only joking when he
             In one instance, l<ott&#39;s
                                  &#39;                             FBI    Stevens-961

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                      <51 K30 92.iZi
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     ad-n_.com new against
           :Proseoutors Kott
        Q--~     1                                                                                          Page2
                                                                                                            2 of
            for                                               was
     asked 92./eco help in getting him a job at a prison the company                      building in Barbados.

     "These Barbadoscomments are made in jest, and that intent is clear                            of
                                                                                              the context    the
     conversations,    involved drinking and joking," they said.

                  of                                     he
     And Kott&#39;s working as a lobbyist for Veco a discussion
                 talk                                                  held while still in office -- were
     "off-hand, brief, and are absolutely      of any details or even specific requests to be Veco s
                                    be hired as Veco slobbyist," his lawyers said.
     lobbyist or a speci c promise to

                              of                     for
     Weyhrauch, a lawyer, is accused selling his votes                                          for
                                                               a 2006 oil-industry tax bill in return    a
     of         work
     promise legal        after the regular legislative session. The government saidWeyhrauch         should
     have disclosedhis negotiations for                    Smith.
                                              with .Allen and

     But Weyhrauch sattorneys said                duty
                                              had no         to disclose under state law or House rules.

          lawyers    much andasserted it&#39;s
     Kott&#39;s saidas              that the normal
                                                  House      to members
                                                      practice require                                                 to
     vote even                     of
                      they have a conflict   interest. That negates the need for disclosure, they said.

     Government lawyers said that position is nonsense.

       Each                                                      duty
                      of the Alaska State Legislature has an inherent              public
                                                                               to the               of
                                                                                             of the State
     Alaska to conduct theirdealings         of conflicts of interest," prosecutors said in amemorandum
     filed Saturday. "The existence this  duty                     public official sobligation to conduct his
                                                   is intrinsic to a
     or her affairs free               State
                             improper influences.          law requires legislators to not only avoid conflicts
                                 of               they
     of interest, but even the appearance a conflict,             wrote.

     Weyhrauch appeared to understand that duty, the prosecutors said, because he disclosed other
     conflicts even if he failed to disclose his job solicitation           Veco.

     Find Richard Mauer online at adn.com[contac c[rmauer             or call 257-4345.

     [ Print
          Page                      ]

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                                                                                                 FBI - Stevens-962

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{,5                                  2
               :R%sed tapesfederal 1 of
                   Anderson I
       "&#39;Anderson    unveil
      adr;.ooml Tom sting the case Page

      ad                                                                               ]
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      Released Anderson sting tapes unveil the federal                                       case
       YOU WANT VOTES : Lawmaker knew lobbyist sought more than newsletter.
      By     DEMER
      Published: September 4, 2007!

      More than a month after former state Rep. Tom Anderson was found guilty of bribery and other
      corruption charges, the prosecutionhas released the secretly recorded conversations used to
      convict   him.

      A federal jury convicted Anderson, an Anchorage Republican, on July of bribery, extortion, money
      laundering and conspiracy. Several jurors said afterward that Anderson&#39;swords were the
      strongest evidence against him.

      The Daily News and KTUU Channel sought copies of the recordings and other exhibits during the
                     get them at that time. The news organizations then went to court. Negotiations
      trial but didn&#39;t
      began with prosecutors.The records were released Aug. 23.

      The recordingswere made by the FBI. A government witness, former Cornell Cos. consultant Frank
      Prewitt, wore a wire. The recordings, along with witness testimony, gave jurors picture of a
      scheme in which Anderson took bribes to do Cornell&#39;s                        a    Cos.
                                                               bidding. The plan was for Cornell
      lobbyist, Bill Bobrick, to create a sham political newsletter or Web site that would be used to funnel
      money to Anderson.

               sentencing is scheduled for Oct. 2.

      a      quick
      Here&#39;s guide to some of the key conversations:

      July 21, 2004

      Audio recording. Bobrick and Prewitt meet at Southside Bistro in Anchorage to discuss how to get
      money to Anderson. In exchange, Anderson would be our boy in Juneau, Bobrick tells Prewitt.

      July 28, 2004                                               A

      Video of meg_ti_ng_at Whaiefsjjale                                        between Anderson, Prewitt
                                                    in _the Hotel Ca_pta.in_Co_o,k
      and Bobrick.                 hands are in view.
                       Anderson&#39;s                   When   asked   about   his credentials   to do work   for
      Cornell, the first thing he mentions is that he is       legislator. Jurors asked for the recording to be
      replayed during their deliberations.

      Nov. 16, 2004

      Vide_o_|;eco_rding_ofmeeting between Andersen and Prgewitt in,_Ande,|:son&#39;s   ,l__eg,islat__iye
      office in Anchorage. Anderson acknowledges to Prewitt that he knows Cornell really isn&#39;t
      interested in political newsletter. You want votes in the Legislature, I would assume, Anderson
      says. He also says he doesn&#39;t to split the next payment with Bobrick. They discussAnderson
               the                hearing a juvenile
      testifying nextdayat a public     on          treatment
                                                            center          needed
                                                                 that Cornell    state
                           _                                       -
                                                                   FBI Stevens-963
                                  ;6~ Y_§L¢&#39;92
                                - .63c.htm1
                                         9/4/20 5&
             : Relssed tapes
                        unveil      2 of
    i _ac1£t:.coml Andersonthe case Page
            Anderson sting fegal
     approval to

     Dec. 21, 2004

     Video recording ofmeeting    between Anderson and Prewitt at the Whale s Tale. Prewitt
     brings two checks, one made out to Anderson sconsulting directly. That is perfect," Anderson

     Feb. 16, 2005

                            dinnermat the Blaranof Hotel in Juneau that includes Prewittt
     Anderson and then-state Rep. Lesil McGuire. At the time, McGuire and Anderson were dating.
     They since have married, and McGuire has been elected to the state Senate. McGuire tells Prewitt,
      Don&#39;t I&#39;m to stay right up on you boys" to make sure Cornell offers rehabilitation. At
            forget,   going
     one point, McGuire is distracted by a side conversation. Anderson takes the opportunity to tell
     Prewitt that McGuire doesn tknow about his relationship with Cornell.

     Find Lisa Demer online at adn.com/contact/ldemer      or call 257-4390.

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                                                                                 FBI - Stevens-964

7                                                                I

          adneom Pete Kott alid onmixup medication tohim
               IRep. Kott wants put   over    given                                                    1   3
              eL  1
                                           I                                         C                          l

                                                                                    [ PrintPage Close7Window
           Anchorage Daily News

          Kott                                              given
                                    a lid put on mixup over medication                       to him
          TRANSCRIPT:                  the
                                       makes          exchange with lobbyist public.
          By RICHARD MAU
           Published: September 5, 2007!

          Former Alaska House Speaker Pete Kott is asking the judge in his
          political corruption case to prevent the jury from hearing evidence
          that ex-Veco chief executive Bill Allen supplied him with pills - and
          that the results were not exactly as planned.

          Accordingto a transcript of an intercepted telephone call between
          Allen and Kott on May 31,2006,     Allen gave Kott pills for sleeping and
          for sex. Kott      mixed
                            them         up and complained he was up all night
          while his "old lady" slept beside him.

          The remarkable transcript was prepared             the FBI and filed in court
                 s      to    U.S.    Judge Sedwick
          byKott attorneys show District  John    what                                         KO I!
          they didn twant the jury to see. The document was filed under seal
          Tuesday by Kott sattorneys, but quickly placed in the public file by
          Sedwick, who ruled there was no reason to keep it secret.

          "Man, I&#39;ve having a hard time sleeping," Kott complained to Allen.

          "So that worked pretty               Allen said, laughing.

          "Which ones are which?         said Kott.

          "Goddamn it, I told you now, just use the white ones    to sleep, Allen reminded him. "And the
          the goddamn, ah, brown or whatever they are, that&#39;sexplicit language for sex!, and the other
          one is for sleeping."

          "Yeah, I thought I was taking the sleeping pill. Took the wrong one. Still got the white one," Kott

                something else, Allen said, laughing. "You&#39;re
          "You&#39;re                                       something else, Pete."
                                                                                           FBI - Stevens-965
          Jury selection in the bribery, extortion, fraud and conspiracy trial of Kott and codefendant Bruce
          Weyhrauch, a former state representative from Juneau, is scheduled to begin today.

          But on Tuesday, after Sedwick handed the defendants two victories on other requests to exclude
          evidence, federal prosecutorssaid they may seek a rehearing or an appeal, which could put the
          case in limbo. They will make their argument during a conference at this morning, before
          prospectivejurors begin filing into the courtroom.

          Sedwick ruled Tuesday that the government could not claim that Kott and Weyhrauch were
          required to discloseto fellow legislators the public that both were seeking employment from

                                            l______&#39; "&#39;vi . i
                                                c. ~     9/5/200
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       Rep. Kc: wantsmixup       to him of 3
    adncom IPete a put overmedicatic>.n2given
    Veco while they were voting on bills in which Veco had an interest. Alaska law has no such
    disclosure requirement, he said, though he also noted state law forbids legislators from
    when they face certain kinds of conflicts of interest.

    Sedwick also threw out a                                          evidence of bad conduct by
                             request by federal prosecutors to bring in
    Kott as far back as                                          Veco warehouse for his flooring
                               when he began storing material at a
    business. The government also said Kott improperly received $12,000 in equipment from Bill Allen
    or Veco in 2002, a $5,000 payment in 2004, and a $1,000 payment made by Veco in 2003 to a
                 pageant corporation benefitone ofl<ott&#39;s relatives,
    Florida beauty                 to                                       by
                                                                 as requested Kott.The
    Eagle River Republican was speaker of the House in 2003 and 2004.

    Seclwick said those allegations happened too far in the past to be relevant to the charges, which
    "mainly focused on legislative activities which      in
                                                        place    2006."

    One of                         Pope,
                        attorneys, Doug      said the rulings were significant victories for the
    defense. But the government may seek to overturn Sedwick&#39;s ruling
                                                                       on               it said in afiling

    Bill Allen and former Veco vice president Rick Smith      expected to be key government witnesses.
    Both have pleaded guilty to bribing legislators and are cooperating with the government.

                            pill dispensing to
    The evidence of Allen&#39;s              Kott   was recorded on a                    cell while
                                                                      wiretap of Allen&#39;s phone
    the Legislature was in special session over oil taxes. Kott s lawyers say the conversation, and
    another betweenKott and Smith about the "Corrupt Bastards Club," would be prejudicial.

    "The use of sleeping pills                                                             the
                                     sexual enhancement pills will undoubtedly negatively impact
                   of Kott, particularly if he was taking those pills
    jury&#39;s opinion                                           without     aproper prescription," his
    attorneys argued. "It creates an impression of general law-breaking behavior. The evidence could
    also be used to suggest Kott is person who pops   pills,             very negative attack on
                                                                which is a

           on                                 relating toaccidentally taking sexual
    They go to say: "Thepart ofthe conversation                            the
    enhancement pills quite lewd. The tone and content of these conversations will       likely impact the
                   in a
    jury&#39;s opinionvew negative way."

    Three pages of Kott&#39;s 29, 2006, conversation with Smith, also on a  tapped cell phone, concern
                   to obtain 20 Veco hats embroidered or printed with "CBC." The letters refer to the .
    l<ott&#39;s efforts
    Corrupt Bastards Club, an informal group of legislators who received large contributions or
    employment from Veco.

    "Hey. How many of them hats you want CBC on           back?" Kott asked Smith.

               to     out Kott talking about,finally
    After trying figure what was          it       clicked, and
    We gotta figure out who the club is," Smith said.

    "Yeah," said Kott.

    "Gotta get with Hawker," he said, referring to Rep. Mike Hawker, R-Anchorage.

    "Yeah, I know," said Kott. "Yeah, the 20 might be a lot."

    "Well, I mean, but then, you know, we need some for Bill Allen! and, you know, and s--- like

    http://WWW.adncom/news/p0litics/fbi/kott/v-printer/story/927 8921p-91-92.979c.hi:m1            9/5/2007
                                                             &#39;                              &#39;            F

           Pete   a put on            Page 3
         IRep. Kottlid mixup overto him of 3
      adngom : Kcawants medicaiic>.n given
      that," Smith   said.

      Hawker said Tuesday he had no idea why Smith was referring to him, but he knew about the

      "There was nothing nefarious involved," Hawker said.      was among agroup of legislators,
      including Kott, and others who were joking one night in the bar at   Baranof Hotel in Juneau. A
      newspaper columnhad questionedwhether campaign contributions from Veco to lawmakers
                                              political process.
      created undue influence over the state&#39;s

      The joke was they were all part of some kind of corrupt bastards club," Hawker said, and part of
      the joke was some of them were writing an increase in state    taxes.

      "At the time it was just gallows humor at best," Hawker said.

      Find Richard Mauer online at                                   or call 257~4345. Reporter Sean Cockerham
      contributed to this story.

      [ PrintPage gggg

      Copyright © 2007                        www.adn.com!
                             Anchorage Daily News

                                                                                          FBI    Stevens 967

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     : Legislatorswrruption
       T         split
                   for   0
                                                                                              1    3
                                                                                              Page of

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                                                                           Page                   ]
Legislators           corruption trials split for appeal
Kott&#39;s                                on
      hearing continues, but Weyhrauch&#39;s               federal appeal
By RICHARD             DEMER
                   and LISA
Anchorage Daily News
         September 2007!
Published:       6,                  92        _

A federal judge Wednesday ordered separate trials for two
               legislators allow jury selection one to
formerRepublican         to                    for
move forward while the government appeals an earlier ruling
favoring the other.

The decisionon the one-time co-defendants means the bribery,
extortion, fraud and conspiracycase against Pete Kott, the
former House speaker, will go ahead
                               with       opening arguments            Former Rep. Pete Kott, center,
scheduled for Monday. Jury selection started at midmorning                               leavesthe
                                                                        ankedby attorneys,
Wednesday and will continue today.                                   coffee shop in the Federal Building
                                                                     and       Courthouse in Anchorage
                                                                     during a pause in his corruptiontrial
                              a                     from
Butthe trial of BruceWeyhrauch, former representative                     2007. The bribery,
                                                                     Sept.5,               extortion,
                                                     bid to
Juneau, will await the outcome of the government&#39;s the           fraud and conspiracy case against
9th      Circuit Court of Appeals in San Francisco, and perhaps      Kott, the former House speaker, will
longer. Weyhrauch&#39;s                               to
                      attorney, Doug Pope, said he&#39;d take         go ahead with opening arguments
the case to the      Supreme Court if the 9th Circuit reverses       scheduled now for Sept. 10, 2007.
the decision in Anchorage.                                              BILL ROTH/ Anchorage
U.S. District Judge John Sedwick made his ruling on separating
            a                                    8
the trials in hastily called hearing that began at a.m.
Wednesday, just before jury selection was to begin. With more                                          3? ?
than      potential jurors from around Southcentral Alaska
cloistered in a meeting room across the lobby and down a hall,
NicholasMarsh, a trial attorney from the Justice Department&#39;s
Public             told     that        in
             Section, Sedwick hissuperiors
Washington agreed that an appeal of an earlier ruling was
justified.§ t

They are challenginga ruling by Sedwick      Tuesday that said                                        r
thegovernmentcouldn&#39;t evidence Weyhrauch
                    present      that        and                                                      =
Kottwereduty-bound report              employment
with Veco, the politicallyactive oil-field service company, in       Former Rep, Bruce Weyhrauoh was
2006, when they were voting on oil~tax legislation heavily           accompanied by his wife, LuAnn, in
lobbied by 92/eco chair, Bill Allen. Sedwick held that state law                              U.S.
                                                                        the Federal Building and
had     such requirement.                                             Courthouse in Anchorage Aug. 5,
                                                                     2007. His lawyer said Weyhrauch s
                                                                       day in courtmay be delayedfor
In the Wednesday morning hearing, Marsh told Sedwick the                     a
                                                                       more than    year by the appeal.
government still had ample evidence against Kott and was                BILL ROTH / Anchorage
prepared to go to trial. But for Weyhrauch, a lawyer who never                      News!
landed the Veco job, the evidence is crucial, Marsh said.

At issue is whether Weyhrauch used mail fraud to cheat Alaskans of honest services as a state
                                                               FBI   Stevens 968
      : Legislatorsfgrruption
ag.n.con1           for appeal
               trials split &#39;                                                                              of
legislator. Pope said Weyhrauch did nothing wrong in sending apersonal                  advertisement for   legal
services to   Veto.

With the trial set to begin, expenses for lawyers and the court adding up, and potential jurors
cooling their heels, Marsh proposed that Sedwiclt revisit a  request made in August by Weyhreuch s                     l
attorneys to split the trial. At the time, Pope argued that the stronger evidence against Kott could
prejudice the jury against his client. The government opposed the motion then, and the judge kept
the defendants together.

But now, Pope told Sedwick, the situation has changed. He was fully prepared to go  trial. It
would he an undue           and emotional burden on Weyhrauch and his family to delay any
                                         of appeal were thin and unlikely to succeed.
longer. I-leargued the government&#39;s points

But Sedwick said federal appeals courts around the country were split on the disclosure issue, while
the all-important 9th Circuit, governing courts in Alaska, "hasn tspoi<en." Sedwick said he followed
a line of reasoning adopted by the Sth Circuit in New Orleans.

                              opposed the split, mainly because he had prepared a
Jim Wenclt, i<Iott&#39;s attorney,                                                 case theory and
line of questioning for witnesses based on having a coedefenclant. The government agreed to delay
opening arguments until Monday, and promised to tell him by Friday whether Allen and former
 i/eco vice president Rick Smith would he called to testify and to reveal the approximate place in the                 E
trial they would take the stand.

Following a90-minute recess to review the law and rulings in related cases, Sedwick called the
parties hack to his courtroom and announced he would split     the co clel°entlants so the
government could pursue the appeal. He said the government clearly had that right.

After packing up boxes of documents on a cart and clearing the courthouse, F- ope stopped to talk
with reporters and expressed outrage at the government. He said prosecutors realized late in the                       92
pretrial phase that their    was weak and responded by inventing a  new case theory that relied
on an improper application of federal law.
l-le                                                            year
          Weyhrauctfs day in court may he delayed for more than a                      by the appeal.                  »
Marsh said it would he inappropriate to comment on Pope s out-of-court criticism.                                      »
Back in the courtroom, potential jurors began ling in to be questioned about their knowledge of
the now srnalIer case. The lawyers on both sides introduced themselves, and so did Kott, who                           »
represented Eagle River in the "l-louse.                                                                               »

"Fm Pete Kott, and Fm the defendant in the case,

             strong opinions
     those with
Most of                  already had       out
                                  been weeclecl through
                                                             he said, smiling at the packed room of jurors.

                                                      writtglii gi§egt i¬8§i_:§g§s.
Sedwick, and sometimes the lawyers, asked detailed questions of about hall those remaining on
Wednesday to determine whether any were too biased to he fair jurors or had other reasons not to

One had just landed her rst full-time job in a                            home.
                                              year, so she was allowed to go        A couple of
people had medical issues. One is leaving Alaska this month. Another is married to a former
contract manager      at SP and socialized   with Allen.   All left   the courtroom.

Some were close calls. One man told the judge he thought he could be fair for the most part.

                                          9280669p 91953 54o.htmI
http ://wwwadn.com/news/a1as1<a/v-printar!story/                                                            9/6/2007
_                                                 _     _          _             _   _.                          _.

-         Legislators"!n&#39;upti0n trials of 3
       alaska :
    ag1n.oon_2. I        appeal
                     split for         Page3
    When Sedwick pressed him, he said                 him
                                                      of    struggled with                   in
                                                                             the politics of oil   Alaska. The
    judge sent    him home.

    While anumber of the prospective jurors had a                                          was
                                                    general idea that the matter before them          a
                                        pay                Others
    bribery case, some said they didn&#39;t attention to politics.        followed the political corruption
    cases closely. Some told     judge they were most interested in trouble faced by U.S. Sen. Ted
    Stevens and his son, former state Senate President Ben Stevens. Neither has been charged with a
    crime, but Ben Stevens is accused ofbeing    part of aconspiracy that included Kott, Weyhrauch,
    Allen and    Smith.

    Find Richard         at                       call 257-4345.

    [PrintPage            Closewindow ]

    Copyright © 2007      Anchorage Daily   News www.adn.com!

                                                                                             FBI -Stevens-970

    http://wvvw.adn.0om/news/alaska/v-printer/story/9280669p-9195354c.html 9/6/2007
F                        .    .-.._.        W ..__        . .._.___,_?_.._,,_.__,   an   ,_______           __   . I       , -,._..

              | Pete Bial Kott
                     :Bribery telephone
                                calls .                                                                                1 of

             ad                                                                                 Page Window
                                                                                            [ Print [ Close 4_]
             AnchorageDaily News

             Bribery trial features                  Kott s telephone               calls

             By LISA
             Published: September 11, 2007!

             In aseries of secretly recorded telephone calls, former state
             Rep. Pete Kott       with Veco executives about drinking and
             women, but assured them he was serious about one thing:
             getting a gas pipeline.

             "I&#39;m to get this f--- -g gas line done so I can get out of
             here," Kott told former Veco chief executive Bill Allen in a Jan.
             10,       cell phone conversation.

                  began Kott scorruption
             Testimony in public trial.                                                     aFr:_ i:/&#39;2:;*:g1 ;sg
                                       __                                                                             2007,
                                                                                            U.S. Courthouse on Sept. 10,
             Jurors recordings telephone and
                 heard     ofnine                 _
                                                 one with
                                      calls watched          Pamela the
                                                        daughter KOon
             videotaped     between                           VecoVICE
                                                      andformer                                   day      fer
                                                                                                rst ofhismai bribery
             President                                                                                fraud
                                                                                              extortion, andconspiracy.
                                                                                               BILL ROTH / Anchorage Daily
             In hisopening       prosecutor
                         statement,             Marsh jurors
                                         Nicholas    told                                                 News!
             that Kott betrayed the public trust and sold his legislative office                     ""           I if i" i"
             to oil field sen/ices company Veco.    return for money and job
             promises, he pushed an oil tax favored by the industry.

             Kotteven sayson one of the tapes, "I sold my soulto the devil," Marshsaid.

             Kott sown words will be used against      Marsh said. It&#39;ssame tactic prosecutors used to
             convict former Rep. Tom Anderson in July of seven federal corruption charges.

             Butthe defense                        twistedthe facts. Kott wasjust a blue collarRepublican
                           toldjurors the government
             working hard to get what most Alaskans wanted, a gas pipeline, said Jim Wendt, one of Kott s
             defense lawyers.

                    nothing illegal about working with lobbyists or others toward a shared goal, and that s all
             Kott was doing, Wendt said.    he is guilty of anything, he is guilty of working to get a pipeline."

             Marsh warned jurors they would hear "downright offensive" language. But Wendt said it was just
             "down-to-earth     talk."

             An FBI agent from Cincinnati, Steve Dunphy, who monitored and recorded some of the action in
                                   Baranof hotel, testified all afternoon about various recordings. Dunphy said
             Suite 604 of Juneau&#39;s
             he volunteered after a request for help with the Alaska investigation went out agencywide.

                                                          cell phone in September
             The listening began with a wiretap on Smith&#39;s                          and branched out
                                              cell and home phones, and then the bug planted in the Baranof
             from there to wiretaps on Allen&#39;s
                                                                                                    FBI    Stevens 971

                é<5 ll<5oi. ow.
l   __   i
?   ___._

                  l Pete
                     Kott features Kott&#39;s
              aclttcona:Bribery%1telephone calls
                     92.                 Page
                                         U                                                                           23
              suite, Dunphy testified.

              In various phone calls played for the jury, Kott&#39;s familiarity Allen and Smith is remarkable. He
              calls them Uncle Bill and Uncle Rick. He sounds tipsy at times. Several times, Kott brings up the
              idea of working as         at aprison in Barbados that Veco was building.

                               warden," Kott tells Smith in a
              "1 just wanna be a                             Sept. 29, 2005, telephone call.

              Wendt told jurors in his opening statement that the Barbados prison gig was arunning joke with
              Kott, that he had heard about topless women on beaches there. But Marsh told jurors that even if
              Kott was kidding about the warden&#39;s he clearly wanted a  job with Veco when his work in the
              Legislature was    done.

              As the 2006 legislative session got under way, Kott fretted to Allen on the phone that things
              weren t going well and Allen needed to get to Juneau.

              Allen made it clear that he thought little of        Speaker John Harris, who won the post in 2005
              after Kott was ousted in an internal coup.

              "About the only ones that I can trust is you and ol Ben Stevens," Allen   Kott in aJan.            10, 2006
              call. Stevens is the former                                  been
                                               Senate president. He hasn&#39;t charged.

              In one lengthy call           Allen and Smith on Feb. 20, 2006, Allen goes on a  tirade about Veco s
              new young lobbyist, Kris Knauss. Allen was angry that Knauss was using Allen&#39;s own cultivated
              influence with Kott as if it were his own, turning it to his advantage with Gov. Frank Murkowsl<i s
                     staff, Jim Clark.
              chief of

              "Well f---. I put more money into Pete Kott than he&#39;s ever thought about," Allen sputtered at
              one point.

              In a                                                        and
                  March 4, 2006, videotaped conversation in Suite 604, Allen       Smith said they would do
              whatever they needed to get the pipeline and an oil tax favored by the industry through the
              Legislature. Smith said they may need to "get dirty."

              The room                        hard
                            dimly lit and it&#39;s to make out their faces. But their voices are clear.

              "They got dirty and they crossed the line," Marsh told jurors.

              Later in the conversation - in a part not played in couit but discussed by lawyers and the judge *-
              the topic turned to a           at
                                   faltering effort                                           Allen
                                                      the time to sell Veco to an Australian firm.     was upset
              because former         president Pete Leathard had apparently boasted to the Australians that 92/eco
              was in the business ofbribing state legislators.

              U.S. District Judge John Sedwick agreed with prosecutors that only a                 of the conversation
              needed to be played for

                                                                             need know
              In the same conversation, Allen told Smith that Veco&#39;s clients to                  doing
                                                                                           what it&#39;s in
              Juneau to pressure legislators. He refers to "the big wheels" with BP and Exxon and more.

              The case against Kott is the first to go to trial       Veco, acompany that was hugely
              influential in Juneau for many years. Allen and Smith have both pleaded guilty to bribery and other
                      resigne their . .
              charges andd
                        _.     ..
                                  positions with _ FBI
                                              eco                                                   _SteVen5_972

              http://WWW.acln.com/news/politios/fbi/koti/v~printer/ story! 06p-9208246o.html                     9/1 1/2007
A. - V      .7:      ___
                  __ ___    _
                           ___ ;_#I__ .   _
                                          ____     V77
                                                 , __________ __    __            _           _.              . A-
                                     _..;___=.__...;.__.. er
         .»_._....- ___________________                           .__.______---_---- ___                     __
                                                                                                          ______                    .92
                                                                                                                             ._. t _. , _

       PeteBribety feames 0
          : Kott i
              1Tl         oaiis Page
   §fi11.0Ci1 3141 Kott s telephone                                                                                                      of
   As of                deco no ionger exists. It s been soid to the Coioradodoased engineering firm CHZM

   Kott, a        speaker
          former house                        from Eagie River who served 14 years in the Legisiature, is being
   tried on charges of                      conspiracy, extortion and wire fraud.

             peopie gatheredfederei courtroom
   Seyerai dozen        in the                     statements, inciuciing
                                          for opening              defense
   lawyers, prosecutors, FBI agents and news reporters, but the crowd cieared out by                                           afternoon.
   Whistieoiower Ray Metcaife stayed.

   Marsh toid jurors                                                              accepting
                           Kott, who ran e hardwood flooring business, is accused of                                                money
             vaiue three
   or things of        times                                               a        speci
                                   from Veco executives, plus the promise of job. The c
   accusations, as laid out by

   1 Kott, in need of               during his 2006 campaign, sent Allen afake                     for
                                                                                                   bill      an extra $7,993 in
   ooring work.

   -Veco paid $2,750 for a                David
                          poiiticai poli by                          Dittman to see how Kott was faring with voters
   during the campaign. Kott iost in the primary.
   Kott accepted $1,000 from Aiien to reimburse Kott for e
   ~                                                                                                      he made to then-Gov. Frank
   i92 iuri<owsl<i s re~eiection     bid.

       that is misconstrued or
   Aii of                      overbiown,      Wendt toid jurors. Kott received no personal benefit from
   any of it, the defense iawyer said. i-ie didn&#39;t even about the poil beforehand.

         thing Kott wrong accept $1,000, that
   The oniy      did    was   the     but         to        him the
                                            was just reimburse for
   contribution, Wendt          said.

   Find Lisa Demer online           at _a,d_i1.com[contact£ldemer              257-4390.
                                                                           or call

   The Alaska political corruption                 investigation

   The trial of former Eagie River Rep. Pete Kott is part of abroad investigation into pubiic corruption
   focused on state and federal officials, iobtiyists and others. The investigation is being led by    FBI
   and Department of  iustice  and has resulted in charges against four former state legisiators, two
   former executives of the Veco Corp., and a    lobbyist for aprivate prison company.

   Kott is charged with bribery, conspiracy, extortion and wire fraud for taking money and the
   promise of ajob from deco executives for supporting an oii tax measure favored by the   petroleum
     _         _____                _
   iWPrint 1 {Ciosein{&#39;indovf_____} FBI                                                                          StevenS_973

   Copyright ©            The Anchorage Daily News {www.adn.com!

                                                     92945 06p-9208246o.htmi
   htip ://www.adn.com/nows/poiitios/fi:»i/kotUv~prir1ter/stozy/                                                                   9/1 1/2007
                         __~.~.~_ r.._~.===-.-..__..~.       __.____;__:_.-.~ _::;;__..._.....;;;_;.:;;;____.________
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           Kott rs hearand the
    ~adn.con1: 111 boasts .Page
1&#39; 1&#39;
                   the   despair         .a.                                                                          of

     ad                                                                                        Page ] Window ]
                                                                                           [Print Close
     Anchorage Daily

     Kott trial          jurors hear             the boasts                despair
                                                                      and the
    TAPES: Behind-the-scenes                    at
                                               look     oil-tax legislation    out.
     Published: September 12, 2007!

     Prosecutors in the public corruption trial  former Rep. Pete Kott are giving arare, c|0se up view
     of a good oi boys club of insiders and deal makers that           on the fringes of the Alaska

     Much of the action being detailed in the courtroom takes place inSuite 604 of Juneau&#39;s Baranof
     Hotel, where former Veco executives Bill Allen and Rick Smith          with Kott on how to get the
     industry&#39;s preferred of anew oil. tax and agas pipeline proposal through the Legislature in

     Scene after scene        out forjurors Tuesday in U.S. District Court as a federal prosecutor
     methodically introduced dozens of secretly made audio and video recordings.

     Grainy videoscaptured through an FBI-planted bug in                             show
                                                                               Veco suite         the men chummy,
     drinking and boastful at times of seeming victory, then    of despair when legislation didn t go
     their way. Numerous calls                                  cell
                                            on Allen and Smith&#39;s phones also were played for jurors.

     Kott is accused of bribery, conspiracy, extortion and wire fraud. Prosecutors say he was paid off by
     Veco througha fake $7,993 invoice for his hardwood flooring business, a$2,750 political poll and
     $1,000 in cash.

                    lawyers say there&#39;s nothing about working with
     Kott&#39;s defense                           illegal                                   lobbyists and others for a
                              all Kott was doing.
     common end, and that&#39;s

     Kott, a Republican and former House Speaker from Eagle River, lost power in acoup                      that put John
                       the speaker&#39;s chair, found ways to twist arms to help Veco.
     Harris of Valdez in                 but still

     On March 26, 2006, while the Legislature was considering a new          Kott
                                                                        tax system,        called Smith
     on his cell       Kott was about to head over to the Prospector Hotel for drinks to celebrate
     Kodiak Rep. Gabrielle LeDoux s birthday. He urged Smith to come too. Kott had been trying to win
     her support on the oil tax.

     He joked with Smith that he was later going                    the opera -- Conoco Phillips had bought 50 seats ~-
     then admitted         he wasn t   that cultured.

                     was putting pressure on state Sen. Fred Dyson,
     Kott told Smith he                                            another       Republican from Eagle
     River. He had voted that day to hold up an anti-abortion bill sponsored by Dyson, who cares alot
     about the    issue.

      He wants my vote, he                             on
                                               square up       oil taxes," Kott told Smith.

     Smith, who was a                                                  chief
                     Veco vice president, and Allen, Veco&#39;s influential executive, both are
                                                                                                FBI - Stevens-974
          é2§5K£> > l. 92 9292                                                         -    "
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            L          we
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   |Pete :
     Kott    hear thetheandPage
                boasts despair    24of
adncom Kott &#39;EI&#39;i3$11&#39;0fS
awaiting sentencing after pleading guilty to bribery and other charges involving four former state
lawmakers, including Kott and Rep. Bruce Weyhrauch, R-Juneau. They have resigned their posts
and are cooperating with prosecutors. Veco last         was sold to CHZM Hill.

The tax rate they sought                                       proposed
                                             intertwined with the          gas pipeline. Prosecutors say agas
line                  cleared
               which never                                     2006, could have been enormously profitable
                                              the Legislature in
to Veco.

By May 7, 2006, the Legislature was reaching aclimactic             showdown over the Petroleum Profits Tax,
known       PPT.

Allen was calling Kott on the House floor to give him instructions on how to vote, according to a
court paper       in Allen&#39;s

Just after 8:30 that                     with
                        Kott was on the phone       Smith. Weyhrauch had voted the  wrong    way
on an amendment that would raise the proposed tax to 21.5 percent of profits, up from 20 percent.

The amendment passed, but barely, on a21-19                                                 for
                                                           vote. Kott told Smith they could ask     the vote to
be rescinded.

     later, reported back.strategy
An hour               The              tax was at percent.
                               worked. Therate back20
"Way to go, partner," Smith told Kott.

At current oil prices, every 1 percent change in the tax rate means as much as  $150    million more
 taxes, according to Dan Dickenson, the state&#39;s
in                                                                                    division,
                                                   former director of the oil and gas audit
who testified Monday. .

By 11:30 that night, Kott was in Suite 604, celebrating with Smith, Allen and others.

As the men drank and clinked glasses, Kott boasted that he told the minority leader, then-Rep.
Ethan Berkowitz, that he     to have some of his Democratic votes. It was unclear what Kott said
to Berkowitz or even whether Berkowtiz swung any votes. But Kott sure made out like it happened
his way.

"I outsmarted the                                                       "sucker
                               Kott told the room. Later he said it was a            punch and said "I use
em and      abuse em."

Reached Tuesday, Berkowitz said                   what
                                    doesn&#39;t know "sucker punch" Kott was referring to. "I
counted my votes accurately that day," he      "I knew where they were and I held them."

Kott played the tax rate battle like a hand                              20 percent, which what
                                               political poker, holding at             is
the oil companies wanted. He said on tape that               he d
                                                     not for Allen,                   30 percent
                                                                        be supporting a

The entire PPT oil tax measure died                days later at the end of the session, as the House and
Senate failed      to agree   on the bill.

The nal tax, at arate                                adopted until August 2006, after two special
                              of 22.5 percent, wasn&#39;t

Also on Tuesday, prosecutors played for jurors asecretly            recorded July 12, Z006, cell phone call
between Smith and former state Sen. Jerry Mackie.
                                                                                       FBI   Stevens 975

hlftpI//WWW.3.d11.COm/116WS/p0li CS/fbi/kOtt/V p1 int61 /Sf01?y/9297017p-9210867C.hlZ11&#39;11 9/12/20
   |Pete : hear the despair
     Kott       boasts 0  Page
adncpmKott triawrors theand
Mackie, whobecamea                                      in consulting
                  lobbyist, at the time was also_ partner the                                 rm Northwest
Strategies, which was working on        campaign.

They              about apoll    done
                                 being           Dittman
                                              by Dave          for Kott s campaign. Prosecutors say Veco
paid       it.-

In the                                                 know
              call with Smith, Mackie said he had let Kott         Smith
                                                                  that                                   to
                                                                                          and Allen had agreed
help                               was
         with the poll. Kott said that     great, Mackie told Smith.

 Defense         Jim Wendt protested that recording, and acouple of others, being played for
jurors. But prosecutor James Goeke told U.S. District Judge John Sedwick that         was an
 unindicted co~conspirator, which         the rules on what evidence can be allowed.

Reached Tuesday evening, Mackie said he  knew                                 of
                                                 about the poll, but was not part   any bribery
conspiracy with Veco. His lawyer, Jeff Feldman, said it was "an unfortunate label."

Mackie said the FBI interviewed him more than ayear             ago on general matters        involving Allen and
Smith and never even asked him about the poll.

                                   Tuesday was a conversation involving former
Also part of the prosecution&#39;s case                                                         state Sen. Ben

Stevens was a paid        consultant at the same time he was a senator. Yet while Kott was
claiming success with the oil tax in the House, Stevens was struggling to get an acceptable
measure through the Senate.

Prosecutors played a recording of aMarch             5, 2006, phone call between Stevens and Allen in which
they assessed various other legislators. .

Stevens expressed disdain for Fairbanks Rep. Jay Ramras, who his old rival, Sen. Gene Therriault,
helped get elected.

"One of those expletive!          salesman kind of guys."

"Amen, amen," Allen

More secret recordings are expected to be played for jurors this morning.             By afternoon, Allen could
be on    the stand.                  =

Find Lisa Demer                 at adncomlcontactildemer     or call 257-4390. Reporter      Tom Kizzia
contributed to this story.                                                                  FBI -Stevens-976

Case at aglance

The Alaska political corruption investigation

~The trial of former Eagle River Rep. Pete Kott is             federal
                                                  part of a broad            investigation into           public
corruption in Alaska involving state and federal officials, lobbyists and others.

http2//www.adn.com/news/politics/tbi/kott/v-printer/story/929701&#39;/ p 921O867c.htm1 9/12/2007
           IPete         iurors
    adn.ci2m Kott :Kott tria                                 despair Page
                                            hearboasts and the
                                               the                                                      4 of4
~    *O
    -Kott is charged with briben/, conspiracy, extortion and wire fraud for taking money and the
    promise of a job from Veco Corp. exchange for supporting an   oil    tax measure favored by the
    petroleum industry. He is fighting the charges.

    -For more on the                               interactive
                                         including an                                   online
                                                                 timeline and overview, go        to

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                                                                                     FBI -Stevens-977

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          Kotl: on
        |PeteAllen having
     adrgcom avowed in
            :        friend &#39;
                         Legislature                                                                 1
                                                                                                     Page of4

     ad nl                                                                       [
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     Allen counted on having friend in Legislature
     He testifies that he gave money, favors to oil-tax ally in Juneau
     By RICHARD                   DEMER
                              and LISA
     Anchorage            News
     Published: September 13,

     More than a year after he emerged as the central figure in the
     Alaska corruption investigation, former Veco chairman Bill Allen
     at last      the witness stand Wednesday in the trial of former
     House speaker Pete Kott and began recounting his version of
     the last three decades of oil politics.

     Along the way Allen, the government&#39;s witness, told of the
                                                                              Ex-Veco chief Bill Allen walks
     money, jobs and favors he dispensed to Kott, a man he
                                                                               outside federalbuilding
     described as friend and reliable ally but who could wind up in          courtroom                trial
                                                                                      duringPete Kott&#39;s
     prison on Allen&#39;s                                                  Sept.
                                                                            Wednesday          2007,
                                                                                              12,         where
                                                                             he spent the better pert of three
                       impending visit to the courtroom got around
     As word of Allen&#39;s                                                     hours outlining his working
     town at lunchtime, the federal courtroom ofU.S. District Judge          relationshipwith thethen~state
     John Sedwick began to fill, eventually drawing more than                 representative. B/LL ROTH/
     people. Some were lawyers or paralegals working for other                   Anchorage Daily News!
     potential defendants or witnesses. The back row held gray-
     haired    remnants   of the liberal Democrats   who flexed   so much
     power in Juneau in the 1970s before oil-friendly Republicans
     made them largely irrelevant, while up front sat a conservative
     talk show host who fought 92/eco efforts a few years back to
     pay for government out of the Permanent Fund. Other
     spectators just wanted a glimpse of history.

     But the real businessof the day was what Allen told the jury
     about Kott, 14~year veteran of the state House from Eagle
     River. Allen and one of his vice presidents,   Smith, pleaded
     guilty to bribery and conspiracyand are hoping get reduced             FormerAlaskastateHouseSpeaker
     sentences by cooperating with federal authorities.                     Pete Kott, right, walks through the
                                                                            federalcourtbuildingpasta rowof
                                                                               greenlightsin Anchorage on
     Over nearly three hours of testimony that will resume this             Wednesday  withhis daughter,Pam
     morning, Allen talked about overpaying a flooring job done by          Kott. AL GRILLO/ TheAssociated
     Kott by more than                   to
                                 and of scheming get at least some               Press!
              to              son so
     of that money l<ott&#39;s that he could work on l<ott s
     2006 campaign, when poll showed he was in surprising
     trouble. Even the poll itself was secretly paid for by Veco, which
                         --                                                         Kott.
     if true would be a hidden and illegal -- campaign contribution by the company to

     "Why were you trying to get money to Pete Kott for his son&#39;s in the campaign?" asked
     assistant        Attorney James Goeke.

     "He going run
       was          and      histo    him," said.
             to again heneeded son help   Allen
                                                                                     FBI    Stevens 978


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     http   _, _,          _       &#39;      9/192-
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     Kott on
     : Allen having Legislature
 I Pete           inO
adnicom sowed friend                                                                             4
                                                                                               2 of
"What would his son be doing otherwise?"                  Goeke.

"A                           do
            Allen said. "He can                    as
                                     the floors as good     Pete."

"So back on          2006,
                    31,               know
                                  do you       if Mr. Kott was going to be able to go to work on the
campaign and         work?"
                    other             continued Goeke.

"He couldn&#39;t
           afford          said Allen. "He has a family to take care of."

Before announcing he      run again, Kott had been making noises about retiring and had talked
with                                                                FBI.
          about work. Some of those conversations were recorded by the

In one      on June 1,2006, Kott joked with Allen that he wanted to be warden of the prison Veco
was building in Barbados, "especiallywith all the women there on the beaches." He said he&#39;d
anything, even pass out       towels.

Allen testified that he knew Kott was joking about that. But Kott           said on the recording that he
wanted to be a lobbyist.

"For Veco?" Goeke asked in court Wednesday.

"Yes,"         answered.

Veco lobbyistsmade                  $12,000
                                   to                                       would
                                              a month, Allen testified. And he        have hired Kott, he   l

But even as he provided the evidence about Kott, and along the way implicated his own company
and its executives in an illegal campaign contribution                                   a
                                                          Allen never once acknowledged that
specificaction    him or Kott broke the law.

While Allen, 70, has never been shy about appearing at public events and private fundraisers over
the last quarter century as his political power grew, he has only rarely engaged in public speaking.
His speech has been impaired since          when, riding without a helmet, he crashed his
motorcycle. On the witness stand, he said about a quarter of the part of his brain that controls
speech died after the accident, and, like some stroke victims, he has trouble picking out words. He
also has trouble hearing, and a court headset he wore while testifying proved balky at times.

At one point, he started to describe what the oil companies wanted most out of Juneau, then had
to pause.

"Wait, I got to find this              closed
                              he said. He      eyes,
                                               his        put his head in his hands and worked
something over in his mind for what seemed a small eternity while the courtroom, in silence,
waited for him to speak.                                                     FBI - Steveng-979

"Certainty!" he finally exclaimed.               In
                                         wanted certainty."    other words, they wanted to be sure
that taxes would not be raised before they would agree to build a natural gas pipeline, the thrust of
the efforts on the so~called                           --
                                 -- petroleum profits tax              2006
                                                            that tied the     Legislature in knots.

Allen took the industry lead in promoting a low profits tax -- a much bigger effort than the
producersthemselves were making. FBI-intercepted telephone calls and conversations at a hotel
suite in Juneau show that Kott and Senate President Ben Stevens were his two most helpful

http://www.adn.com/news/p01itios/tbi/kott/v-printer/sto1fy/9298937p~9213454o.html 4/2007
   |Pete : on having in 0
     Kott       friend    Page
adnioomAllen cowed Legislature                                                                            34
In one conversation from June 8, Z006, played while Allen was on     stand, he recalled a
                                 Conoco Phillips in Alaska, Jim Bowles, about the profits tax.
discussion he had with the head of

"I said between Pete Kott and Ben                 have,                   have
                                       they won&#39;t they won&#39;t even their fingerprints on
the bill!." It seemed Allen was referring to    "fingerprints" of the producers, but his remarks
were ambiguous enough thatthey             been
                                   could have        those ofStevens    and Kott.

As the tapes were played, Allen testified he had no idea                                 secret
                                                           his phones were taped or that a
camera had               his hotel suite in
                 placed in                                          court order.
                                            Juneau by the FBI under a

"Ifl knew that, I wouldn&#39;t have
                                said     stuff,"
                                        this              drawing
                                                   Allen said,          smiles from the jury and
chuckles around the courtroom. He learned he   was                                           Public
                                                    the target of the Justice Department&#39;s
Integrity Section on      30, 2006 -- a day before the FBI executed a                   legislative
                                                                       series of raids on

Allen emerged as   one of                        promoters in the 1980s, when Veco began a
                          the industry&#39;s biggest                                        long
run as a reliable source of campaign contributions, mainly for Republicans. At the time, Allen
testified, his main political hand was the former state senator and trooper head Ed Dankworth,
sometimes referred to as the "21st Senator" for his efforts at organizing the Senate      blocs long
after      left the body.

Allen said    and Dankworth had a                        he
                                   thorough falling-out after    bought the Anchorage Times in
                                               his journalism venture was Chuck Robinson, the
1989. One of his biggest financial supporters in
long-time executive of the telephone company ACS, Allen said. Dankworth lobbied for ACS&#39; chief
rival, GCI, and Dankworth refused Allen&#39;s to switch.

      can&#39;t Dankworth,want you be
"If you   that, do                       Allen recalled his
                     I don&#39;tto with me,"       telling onetime

                Socorro, N.M., and left for Oregon with his family shortly after World War II,
Allen was born in
when he was 8 or 9. He missed several years of school while his family followed the fruit crops.

We were pickers, I guess."

He quit school for good as a high school sophomore, then learned to weld, a skill    brought him
to Alaska in 1968. With another oil field worker named Wayne Velti, who founded VE Construction,
he worked the Cook Inlet rigs for Arco, eventually taking over the company and shortening its
name. In the last few years, it had annual sales of$1 billion and 4,000 employees worldwide,
about half in Alaska, he said. Last week, the company was taken over by CHZM Hill.

Find         Mauer at adn.com,1contact[rmauer or      call 257-4345.   Find Lisa Demer at
admconglcontactlldemgr or   257~4390.

ONLINE AUDIO:            surveillance
                 Listen to              recordings submitted     as evidence   in the Pete Kott    at

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                                                                                   FBI    Stevens-980

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                                             _ ______ _ _____
                                                         W7          ___                      .~
                                                                                           . 4 -. ._...~->- -.   ...

W | Pete
       :Allen having Legislature
¢adnzcom cowed on infriendO                                                                     of
 Copyright ©                      News
               2007 The Anchorage Daiiy   www.adn.com!                                                           92

                                                                           FBI - Stevens-981


 hftp5//WWW.adn.com/news/p0litics/tbi/kott/v-printer/story/9298937p-9213454c.htm1 9/14/2007
   l    Kott
  admcomPete          : PeteKott&#39;s
                                 corruption defense
                                          trial   emerges                                    1     4
                                                                                             Page of
»92P3<                         &#39;                                   0

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  AnchorageDaily News

  Pete Kott&#39;s                    trial defense        emerges
  BILL ALLEN: Ex-Veco            says he bribed the defendant,      Kohring   and Ben Stevens.
  By LISA           SEAN
                   and        COCKERHAM
  Anchorage         News
  Published: September 14,

                                    corruption trial, defense lawyer Jim Wendt tried to chip
  For much of Thursday at Pete Kott&#39;s                                                away
  at the      being told from the witness chair by former Veco chief executive Bill Allen.

                   and House
  Kott, a Republican former                          River,
                                         speakerfrom Eagle                    of
                                                                    is accused pushingnew oil tax
  legislation on behalf of Veco that was also favored by North Slope oil producers. In exchange,
  prosecutors say he got nearly           apolitical poll and the promise of a job.

                                              promise of a job didn&#39;t mean much or that the
  Wendt kept pushing to get him to say Allen&#39;s                  really
  money Veco executives gave to Kott was legitimate.

  Allen, 70, though weary and showing the strain at times after two days on the stand, didn t go
  along with the defense.

  He is a key prosecution witness in the trial of Kott,   man whom Allen called a close friend, almost
  like family.

  Allen told jurors he already has admitted his guilt in a conspiracy.    testified that he pleaded
  guilty to bribing three former legislators: "Pete Kott, Vic Kohring and Ben Stevens."

  Kohring, a Republican from Wasilla who served in the House, is awaiting trial. Stevens, a
  Republican and former                                            been
                                   president from Anchorage, hasn&#39;t charged. Allen didn t
  mention fourth legislator, former state Rep. Bruce Weyhrauch, whose corruption case was split
  from l<ott sjust before the trial began.

                                always tell FBI agents who were investigating corruption among
  Allen testified that he didn&#39;t
  legislators what they wanted to hear, but it was the truth.

  "I worked real hard trying to make the truth and everything                    said.
                                                                    to be fair," Allen

      said he     tobe
  Allen that expectedsentencedto yearsprison that gromises
                           to 11
                            10      in    but no       had                                                     l
  been    "Whatever
      made.             to   FBI
                  happens mehappens."                                                      teVen5&#39;982
  He was confronted by FBI agents on Aug. 30,         while going to breakfast with Sen. Fred Dyson,
  who unknown to Allen was helping in the investigation.

  Allen said he agreed to cooperate to save his three grown children from being indicted and to spare
  Veco, which he built from its       Cook
                                     on       Inlet rigs to an international company with more than
  4,000 employees. Veco was sold last Week to CHZMHill.                                             &#39;

  From the FBI headquarters in downtown Anchorage that        rst day, Allen called Kott. The FBI, which
              the                 knowledge,
  was recording call without Kott&#39;s           know more abouta
                                           wantedto               $7,993 payment

       £57 Ks 0 3, o"n,92

                                 All ~l3lr>..Q¬!~l l .gggz
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                                defense 0                                                                              4
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                from                                                 son.
                              that apparently was destined for l<ott&#39;s

                Prosecutorssay the               paid
                                                 was                                             his
                                                            to Kott through an inflated invoice from         hardwood flooring

                Have          your
                              got                        asked
                                         sontookcare of?"Allen                          which
                                                                           Kott in the call,        had
                                                                                                   earlier      played
                for jurors.

                Yeah, Kott answered.

                "Did Rick get it done for                                                  Rick
                                                Allen asked, referring to former Veco vice president               who
                also has pleaded         to bribery and other charges.

                Yeah, yeah, Kott answered.

                "How did        do it or -- can you tell me?" Allen went on.

                Kott reminded       Allen that it was his check.

                "Remember we talked                                                 X
                                             three, four or five weeks ago just add on                    I
                                                                                                   amount ~- forgot what it
                                your bill or something," Kott told
                was exactly -- to

                          played ofsecretly recordings
                Prosecutors   dozens    made         jurors expose language,
                                                   for    that  crude
                drinking and political deal making in               say,
                                                                   they       Kott was corrupted by Allen and Smith.

                OnThursday,    lawyer   asked
                                    Wendt    Allen if the
                                                       $7,900                                        for            _
                                                                                         wasan advance futureflooring
                work, not a bribe.                                                   l

                Allen       didn&#39;t
                            he              about
                                      know anything                                                            son,
                                                            any future work. The money, he said, was for Kott&#39;s
                Peter Jr., to take time off from the flooring business and                         campaign.
                                                                                out on his father&#39;s

                The defense appeared to score a point when Wendt pressed Allen                  whether he had offered Kott a
                lobbying "withVeco."
                       job                                                                                                       &#39;

                Allen said in at least one of the recorded conversations that Kott     be a lobbyist. But when _
                Wendt asked him to find on the transcript where he specifically promised that Kott would be
                lobbyist for Veco, he couldn&#39;t.

                 In       I     him
                          mind told          hewould a lobbyist Veco,"
                                                   be        with        said,
                                                                     Allen        he       that
                                                                             adding believed was
                      understanding as well. Another issue concerns
                Kott&#39;s                                                cash that Allen handed to Kott in Suite
                604 of Juneau&#39;s
                               Baranof Hotel. Many of the recordings were made there.

                Wendt asked Allen if that wasn&#39;treimbursing Kott for money he had contributed to Gov. Frank
                Murl<owski&#39;s                            -

                                   owe                                                         $1,000
                Allen said he didn&#39;tKott anything for that. But Wendt repeatedly asked if the                    was
                payback for the contribution.

                "Yeah, but he didn&#39;t it. Ijust gave it to him
                                   ask for                                    goddamn," a frustrated Allen said on the
                witness    stand.

                Wendt contends Kott didn&#39;t do 92/eco&#39;s and was on the opposite side of matters such
                                         always         bidding
                asworkers                                                                                  _
                                                                                                         FBI Sta/enS_983
                                                                 9302442p-92 595 1
                hitpI//WWW.adn.COIn/IIGWS/pO1i £iCS/fl!i/k0 ClI/V 1p1 int6r/S&#39;E01 y/
                                                                                  o.htm1                             9/ 14/2007
l                                                                                                                                        l
   l Pete
              trial emerges
                     0                                                                                    of 3
                                                                                                        Page 4
But Allen testified he didn&#39;t remember
                                       if                                    he
                                                          was ever any issue where      and Kott split.

Allen said he was friendly with a few legislators, all Anchorage Republicans, including Stevens and
state       Mike Hawker and Norm Rokeberg.

He was especially close only to Kott and state                John Cowdery, he said.

Kott was a drinking buddy who lived with him for a few months in2005 to be closer to flooring
jobs, Allen said. He related to Cowdery because both were contractors - Cowdery used      run an
excavation business - and liked to talk shop.

                          his downtown Anchorage home unannounced.
Both regularly showed up at                                                             He welcomed it.
                       at the           told
Cowdery would say "I&#39;m front door, Allen     jurors.

Wendt asked Allen about 92/eco&#39;s of legislators
                                       hiring       as consultants. Allen talked about two,
Stevens, and former state Rep. Tom Anderson, R-Anchorage. Anderson was convicted in July of
seven federal charges in another corruption case, but the allegations didn&#39;t involve

Allen said another executive hired Anderson and he only found out later.

"He was supposed to be like alawyer,"          Allen said. But he admitted "I               why
                                                                                 don&#39;t know we really
hired him."

Allen told jurors he talked with Kott about eventually going to work for Veco - but after he was out
                                  hire                                   have
office. He said Veco shouldn&#39;t sitting legislators and it shouldn&#39;t happened with

As to          he started consulting for Veco in 1995, six years before he was appointed tothe
Senate, Allen said. "He was real good at details. He was like Pete. He would work," Allen said.

By the time         was in the Senate, he had four kids, Allen noted. "How am I supposed to say
                 senator, Ben, I can&#39;t give more money, " Allen
now that you&#39;re
                a                          you                    testified.             do
                                                                              "I couldn&#39;t
that." .

One strange moment                                                Wendt asked Allen he had
                                at the end of Friday&#39;s testimony.           if
threatened to have his nephew, Dave Anderson, killed for being            in blackmail." Allen said
there was blackmail but that he never threatened to have his nephew murdered.

        I&#39;dkick the s --
"I told him              out         him,"
                                     of         said
                                                Allen        on the witness stand.

The trial resumes today with Allen still          the stand. Smith also is expected to testify.

The trial is expectedto take much of              week. FBI                                   -5 EE&#39;VE S-984

Find Sean      Cockerham online    at adn.comLcontact/scockerham            257-2344.
                                                                        or call             Find Lisa   Demer
online at     adn.com/contact/_lg_e_ng or     257-4390.

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         |Pete :       &#39;s cormption emerges Page
    gdnrcom Kott Pete Kot      trial defense                                           4
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                                                                     1c.htm1 9/
    http://WWW.adn.c0m/news/p0litics/fbi/kott/v-printer/story/93 02442p-921595     1 4/2007
     I Pete triaaaposes &#39; Page
         : Kott political
   Iadnicom Veco
                              1 3
                    maneuvering of
     ad n I                                                             Page
                                                                        Print Close
     Anchorage          News
    Kott trial exposes Veco political maneuvering
    PROSECUTION                           polls,
                       From pig roasts to political                 former V P shines light on rm s
    By RICHARD      SEAN
                   and      COCKERHAM
    Anchorage   News
     Published: September 18, 2007!

    Former Veco vice presidentSmith
                                 Rick      was at the center of
    company fundraising, whether it was organizing the annual pig
    roasts for                           many
                    Don Young or one of the        golf tournaments
    where      turned checks into cash under a special arrangement
    with the BuckarooClub in Spenard known as the "Phony

    Smith concludedtwo days of testimony              a
    government witness in the federal corruption trial of former
    House Speaker Pete Kott, R~EagleRiver. The government later
    wrapped up its case, with K0tt&#39;s
                                     attorneys expecting to present
    their defense starting this morning and running through

    After the jury was dismissedfor the       U.S. District Judge
    John Sedwick rejected a defense motion to throw out the case
    against Kott. He said the government had provided ample
    evidence to support its charges of bribery, extortion and
                                                                            Veco exedtitive
                                                                        Former Corp    Rick
                                                                         Smith left, walks from a federal
    The day also provided an inside look into how Veco apparently
                                                                       courtroom on Sept      2007 during
    broke stateby
               law      hiring       David
                                     pollster         Dittmanto                          t        t
     a  poll in 2006. who stand f:d:;?l;£rE§t|f§tl;gc;:;¥
          for           took
    conduct Kott Dittman, the               égrsf;
    afterSmith,saidhe suspected 92/eco~paid amounted
                              the       poll        Naska
                                                   to        House     Pete
                                                                  Speaker KO
    an illegal                  from
                     contribution the company Kott,but
                                             to           ALGR[L[_Q Assocmed
           it    his business worryebout it.
    decided wasn&#39;t      to                                                      Press!

    Until it was sold  days ago on the eve of Kott&#39;s Veco was
    an Alaska-based oil field services company. Its former
    chairman,     Allen,was amongthe most politicallyactive
    businessmen   in the state.

          trial resumed Monday with Smith on the witness stand
    under cross examinationby Jim Wendt, the chief defense

    Smith began work at Veco in 1989 as a logistics expert in Veco&#39;s
    cleanup of the Exxon Valdez oil spill. Rising to vice president of
    community and government affairs, Smith said his most recent
    annual salary was $165,000 plus bonus ranging from $20,000
    to $80,000. was illegally
              He   also    reimbursed campaign
                                   for                                            FBI_Sta/enS_986

0 l http sl~i*%~>i~<>*n&#39; lqilinliaeoomea
                                       a AA
    //WWW adncom/news/pohtics/fb1/kott/v-printer/story/9312345p-92265
                                                                5c h 111 9/18/2007

       9         :Kott Vecomaneuvering2 of
            I Pete triagaposes .
           adnfcom       political      3
           contributionstotaling $20,000 to $50,000 a year, he said.

           The corruption investigation, centered on Veco and its
           relationshipswith politicians,         an end tohis employment
            May, but
           in       his    package
                          severance             worth
                                              was          $384,000. Veco
           continued to pay his legal      CHZM
                                          until       Hill bought the
           company. He settled for a one-time               payment of
           $500,000 for lawyers but can keep any money left over, he

                                                                                     FBI             surveillance:    sold
           Smith learned he was busted onAug.     2006,
                                                 31,       the day after
                                                                                    my soul to the devil..."     what
                         work for the government.
           Allen agreed to                                 said he got an                             tells
                                                                                     former Rep. Pete Kott    former
           early morning          who
                             from Allen,      asked him to come to his                    Bill
                                                                                    Veco executives       Allen and Rick
           home                could.
                    as soon as he                                                    Smith inFBI  surveillance videos
                                                                                    shown to the            corruption
                                                                                                         at Kott&#39;s
           He got to Allen&#39;s
                           door             9 a.m.                                                     court.
                                                                                             trial in federal        !

           "I got some                          Allen
                              you need to talk to,"             said, then left.
           Two FBI agents            Smith.

           "They sat down and had a conversation                              audio
                                                     me, showed me the video and      they
           had accumulated and talked                               they were to prosecute and indict
                                           what would happen to me if
           me," Smith testified.

           He caved quickly and agreed to cooperate. Both he and Allen have pleaded guilty to bribery,
           extortion and conspiracyand face       10 years in prison.

           Wendt attempted to attack Smith&#39;s
                                             credibility  bringing up the dozens of charitable golf
           tournaments he ran                                                   Club,
                                   the years and his odd arrangements with the Buckaroo         a Spenard

           "The business relationshipyou had with them was to launder money, isn&#39;ttrue?" Wendt asked.

           Smith denied his conduct was illegal.      bring
                                                 said he&#39;d tournament checks from participants to the
           bar,                                                                        amount
                     would cash them so he had money to pay expenses. Wendt suggested the
           totaled the hundreds thousands dollars,Smith
                  in          of        of       and                         didnft    He alsodidn&#39;t
                                                                                  denyit.          denythat
           he called his arrangement the "Phony Account."

                 the owners of the Buckaroowarn you that the IRS would catch up to you some day?"
           Wendt    said.

           "I don&#39;t Smith said.

           Smith said that for more than 10 years he organized the annual pig roasts that raised        for
           Don Young&#39;s                major
                        campaigns. They were                                                     by
                                                     affairs, attended by 200 to 400 people and catered
           the Marx                                                    He
                          Cafe. The cost was $10,000 to $15,000, he said.            asked
                                                                               wasn&#39;t whether Young&#39;s
           campaign reimbursed the full cost.

           Smith acknowledged he was the Veco employee who supervised the payments of $30,000 to Tom
           Anderson                                     House
                                Anderson served in the state          -- a "sham contract,                words.
                                                                                               in Wendt&#39;s

           "We              got any work out of it," Smith said. I asked him to work. It didn&#39;t
                                                                                             FBI - Stevens 987

           http://WWW.                                       5
                                                            9312345p 922655
                    adn. com/news/politios/ibi/kott/v-printer/st0ry/       o.htm1                                    9/18/2007
      :Kott Veoomaneuvering3 of
 I Pete
adnicomtriagcposes 0
    Kott     political       3

Anderson was convicted in July of taking bribes to do the            of another company that wanted
to build a private prison in Alaska.

Taking turninthewitness
                      stand,      Dave    saidpaid
                           pollster Dittman Veco                                        polls
                                                                             himto conduct for
candidates, including Kott and then-Gov. Frank Murkowski. Such corporate-funded polls for
candidates are illegal, accordingto the     of the Alaska Public Offices Commission.

Dittman indicated on the stand that he did have some concerns about the legality of the polls.

 I remember thinking that       I hope you guys don&#39;t                            "
                                                     get yourselves in trouble over this,
Dittman testified, speaking             $2,750
                                   Veco paying             July
                                                      for the    2006 Kott poll. "I
                                                                                  knew it wasa
corporate contribution; it                             I
                          would exceed the maximum contribution. also felt they were big  boys,
had been around for a while and probably        what they were doing."

Dittman also testified that conducted a $20,000 poll for then-Gov. Frank Murkowski in April
2006. 92/eco
           executive Rick Smith paid for that poll, Dittman said on the witness stand.

"This one was initiated by either Jim Clark or the governor," Dittman testified. The governor was
very unpopular at the time and there was some question of whether he would run."

Clark, who was Murkowsl<i chief of staff, did not return a phone message seeking comment.
Dittman said in an interview he thinks the poll could have been legal because Murkowski was not a
declared candidate at that time. Brooke Miles, executive director of the      said that is a gray
area.                                -

Dittman also said on the witness stand that Veco paid in June      for a "gubernatorial primary
poll" and one for state Senate District N, where then-Sen. Ben Stevens was trying to decide
whether      a
          he had   chance   to retain    his seat.

Dittman testified he has done "four or five" political candidate polls for Veco over the past few
                                                                             that had paid
years.In the later inten/iew,Dittmansaid he couldnot recallany other companies
for him to do candidate polls within the past several years.

Find Richard Mauer online at adn.com,{contact[rmauer         257-4345.
                                                         or call

                 THE          Find the most up-to-date news from the Kott trial on our politics
blog. Reporter Kyle Hopkins is posting updates throughout the day

[ Print CloseWindow                                                               -
                                                                                FBI S £E-VEHS-988

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http://wwwadn.com/news/politics/fbi/kott!v-p1inter/story/      5 o.htm1
                                                  9312345p-922655                             1
                                                                                             9/ 8/2007
                                   1 3
      | : Defense from convwtions of
     adticorn disites Kohring&#39;sPage
    N1 alaska evidenceFBI

                                                                              [ Print                    Window]
                                                                                                 ] [ Close
l     AnchorageNews
              Daily                                                                     -
      Defense disputes evidence from                      Kohring s FBI conversations
      EVIDENCE: Lawyer asks to stifle material from search of office.
      By     DEMER ,                                                                -                       &#39;
     . Published: September 18, 2007!

                being fought over evidence in the
      A battle is                              case     against
      former Rep. Vic Kohring, but that&#39;sone of the

      At issue: whether prosecutorscan use materials seized and
      statements made                               2006,
                           Kohring during the Aug. 31,      search
                     office ,..,.~~.s.,{=
      of hislegislative inWasilla.                                                          >~

      His lawyer, John Henry          of Seattle, says they didn&#39;tget
                                                                               Former state Rep. Vic Kohring, R-
      anything incriminating, but he is still fighting to stifle everything       Wasilla, leaves the federal
      fromthesearch.      a              seven
                   Kohring Republican
                                   elected    times                             h -A h ft
         with hours
            agents day.
      talked for that                                                 I        Eggrjnguggén
                                                                                    ,Q°2tf, ¬,?§§
                                                                                  aces        rl ery, exo    lOI"lan
      One revelationcameafter the hearing.Brownetold reporters                           charges allegedly
                                                                                corruption     for
        he     to a
                file within
                          next weeks  money Few";
      thatintendedmotionthe two to takingWm in for
            the based
      dismiss charges             onwhathe calledimproper                     his 0
                                                                                        energy5     /-L
                                                                                             l$§U 9$-
               by     Fred  R-Eagle
      interference Sen. Dyson,   River.                                                     /edfl-{all/Y Nevf!
      Kohring s              begin Oct, 22. He is charged with
               trial is set to                                                                                         ,
      conspiracy, extortion and bribery.     is accused of accepting
      money from Veco Corp. executives in  order to push the
      company&#39;s                      a
                 interests on oil taxes and natural gas pipeline.

      Accordingto an FBI report filed in court by his attorney, Kohring
      told agents:

                                               and for his
      He had askedfor moneyfor himselfpersonally
      political campaigns from Veco executives Rick Smith and Bill
      Allen, and also asked Smith about borrowing or renting truck.
      The campaign contributionswere properly reported, he said.

      ~He told agents about regularly meeting and dining with
                                    was in session.
      lobbyistswhile the Legislatu_re                    likes
      receiving free meals and drinks from lobbyists," the FBI
      Summary theAug.                     KQhring&#39;s
                                il"lt¬l VleW                                                         Jahn
                                                                                               attorney Henry
                                                                              Browne said all the allegations can
      ~ Kohringhad a $2,700-a monthconsulting
                                            contractwith                                               !
                                                                                            be @XPlalned-
      developer                      describe
               MarcMarlowbut couldn&#39;t his specific duties.

      - Earlier, Kohring had asked Allen if Veco would hire his nephew
     Aas an intern.Vecodid so. Kohring               it
                                      told agentshe thought was a great benefitfor an 18-year-old
      tobe $16 anhour.                                                                          _
                                                                                              FBI Ste /enS_989

,__cuu_,_ <&#39;l*<§_<_>»;1 11
                a1aska/v-printer/sto1&#39;y/ 202?
                          _, 1575p-922655 9; _o_l@___l__
     http://Www.adn.com/news/lilo ~ id-lee? ______ _,_
      :Defense from conveizltions3
 | alaska evidenceFBI
adémcomdisp&#39;t1ftes         2 of
                 Kohring&#39;s Page
In another revelation, former Cornell Cos. consultant                     state
                                                             Prewitt and former        Tom
Andersonsecretly recorded conversations                                                  a
                                                Kohring for the government, according to letter
sent     summer by federal prosecutorsto Browne. It was just filed    in court. Anderson was
                                             of                                       that
           July of taking bribes to do the bidding Cornell, but it came out at his trial
convicted in                                                                                  he at
one point was cooperating       the FBI. Prewitt was working undercover for the FBI to collect
information against Anderson and, it&#39;s known, against Kohring.

The letter says both Prewitt and Anderson made recordings for the government in the case
voluntarily, so no court authorization was needed.


Browne said all the allegations can be explained and            important is this: Kohring didn&#39;t
           way                    of                   shows
vote Veco&#39;son the oil tax. A check legislative records         that was true on certain key
votes. When Veco shifted strategy to support compromise tax rate in an  August     2006 special
session, Kohring voted against it.

Browne said he learned only Thursday          testimony in the Kott case that Dyson had been
helping the FBI investigate corruption in the                     makes
                                                     Legislature. That                of
                                                                              him an agent   the
government, Browne said. He called Dyson a lapdog."

Browne said he takes issue                                             talk
                               Dyson trying to persuade Kohring to at least   to the feds, if not
 a                                           could
take plea deal. He said he believes that the government      have been trying to interfere with
Kohring&#39;sto counsel.

But Dyson said later that he just was trying to help Kohring as                   asked
                                                                  friend and wasn&#39;t to do so
by prosecutorsor the

                 a                                                                 FBI
As Browne tells it, legislative aide to Dyson contacted an aide to Kohring to say the       had
          office                   would
contacted Dyson&#39;s and that Kohring           be "stupid to go to trial."

On                                   works
       6, Craig Suffian, an attorney who                              e
                                               for Browne, sent Dyson anmail          saying there
may have been "an end-run around the right to counsel."

In his e mail response the same day, Dyson said he wasn&#39;t to do that.

"My sense theFBI                                 a
                     investigationsis that it is not witch hunt and that they mostly want to nail
the      guys
         bad        who did intend to distort the Alaskan Legislative process," Dyson wrote.

He believed that Kohring never meant any harm and possibly could "avoid a good deal   of      stress
and bad press at a trial by at least sitting down with the Feds and see if an attractive alternative
was possible,"he said in his                                        would
                                      He said he figured Kohring&#39;s
                                                                   lawyers         go with him to talk
t° Pr°se° t°&#39;s&#39;                                                        FBI- Stevens-990
Browne provided copy of the e mail exchange.

                                             something defense lawyers are barred from talking
So is Kohring negotiating? Browne said that&#39;s


During the three h0ur hearing on Monday, three FBI agents testified about the search        Kohring&#39;s

http://www.adn.com/news/alaska/v-printer/story/931 9226559c.htm1
                                            1575p                                             1
                                                                                             9/ 8/2007
FL.       : Defense from OO11V6Ii1tiO11S
       I alaska            Page
                      Kohring&#39;s 3 3
      a,di1.con1 evidenceFBI
       S                             of
      Five agents were involved, along                               while
                                            an evidence technician. But       the agents were armed,
      their weapons were             and never drawn, agents testified. They wore business clothes, not
      FBI                                                    door
              jackets, and drove unmarked cars. While the outer        to the office was locked, it opened
      from the inside and l<ohringwas                     Alan
                                                    go, agent
                                              free to                Vanderploeg testified.

      They had awarrant,     by
                            signed     federal Magistrate Judge John D. Roberts on Aug. 29, 2006.

      But the                              wanted
                       was never executed. Agents                                      which
                                                              Kohring to agree to the search,        he did.

      Kohring&#39;s maintains that a search cannot
              lawyer                                         voluntary if agents tell the subject they have a

      Kohring one of six former or current legislators whose offices were searched that day. Agents
      testified they were instructed to get consent for the searches as "a professional courtesy.

      But it also made more difficult for defense lawyers to see the written support for the search
                                                    detailed affidavit. The search warrant and affidavit
      warrant -- the application and the FBI agent&#39;s
      were sealed.

      Browne told Roberts that he                                                               turned
                                     wanted to see the affidavit and that prosecutors hadn&#39;t it
      over.   the hearing, prosecutorsagreed to provide it, as long as he kept it confidential.

              up to Roberts to recommend to District Judge John Sedwick whether the evidence taken
      Now it is
      in the search, and the statement that Kohring gave, can  used against him.

      Find Lisa Demer online at adn.com[contact[ldemer or call 257-4390. Reporter Tom Kizzia
      contributed to this story.

       Print W] ciqee W]
      [W _Pnag_e, Window

      Copyright © 2007 The Anchorage     News www.adn.com!

                                                                                       FBI - Stevens-991

      http://WWW.adn.corn/news/a1aska/v-printer/sto1y/931.15 59o.him1                               9/18/2007
»   ad IZ»i.com lPete cash advance
          Kott sways legal
             :Kott&#39;s a.   Page
                              &#39;                                            .                           of

    ad            I                                                               ] [jg
                                                                          [Wfrint Page       T]
                                                                                      Close Window
    Anchorage DailyNews                                                                 &#39;

    Kott&#39;s son
                says                       advance
                                    was a legal
    TESTIMONY: Money            for future    flooring work   for Veco   executive.
    Anchorage Daily News
    Published: September 19, 2007!

                     Kott&#39;s son tried to keep
    Ex-state Rep. Pete                        his  father out of federal prison Tuesday with testimony
    directly contradicting that    former Veco executives who pleaded guilty to bribing his dad.

    The younger Kott, who is also named Peter, testified Tuesday that $7,993 in cash he received from
    his father was just an advance for future flooring work. That&#39;s so, said the Veco executives.
    They said the money was a              Kott&#39;s son to take time off and work on Kott&#39;s re-
                               payoff to allow
    election campaign.

    The Veco executives testified earlier in the trial that it was a bribe they gave the elder Kott so
    son would      money to work as his campaign manager.

    Jurors      have to decide whom to believe, either the executives who have pleaded guilty to
    bribing Kott and other legislators or the politician&#39;s who was clearly defensive of his father.

                                dominated the trial Tuesday as the defense scrambledto shoot
    The younger Kott&#39;s testimony                                                    holes
    in the corruption case against the former state l-louse speaker from Eagle River. The defense also
           use Kott&#39;sto explain away a political poll
    tried to                son                         Veco                         campaign.
                                                                funded for his dad&#39;s

    Former House Minority Leader Ethan Berkowitz also            time on the witness stand Tuesday,
    subpoenaed to testify on      behalf.

    Berkowitz said Kott didn&#39;t him into getting fellow Democrats to vote the way Veco wanted,
    even though Kott had boasted to the Veco executives during a drinking bout that he had done

             have                   votes,"
    "I didn&#39;t the authority to trade           Berkowitz said.

               who             before
    Kott&#39;s son, testified right     Berkowitz, talked comfortably under           questioning by defense
    lawyer Jim Wendt about both the poll and his salary.

    Wearing a diamond patterned gray sweater, the younger Kott came across as clean-cut and
    likable. He spoke a clear, strong voice. He looks like his sister Pamela, not his dad.

    But when prosecutor Nicholas Marsh, from the U.S. Justice Department s Public          Section in
    Washington, D.C.,         him during cross-examination, he hesitated and by the end seemed

    Kott said that he served as his clad s campaign manager in 2006 but that his title just as easily
    could         been gofer.

                                  campaign in 1992 but hadn&#39;t done political work in the years
    He helped on his father&#39;s first                              much
    since. In 2006, he jumped in because his father was facing atough primary challenge from fellow

                       Stevens-992 &#39;q4¬r&#39;A}92§
                      FBI -             SL990 _h,!,            !9/19/2007
    http1//www.adn.com/news/po1itios/fbi/kott/v-printer/story/931476 p-9228866c
                219, 1&5 l00 l&#39;l/92
                 e         .                                         _
     Kott : cash advance
       Kott&#39;s sogays
adltcom {Pete a was .Page                                                                              of
Republican Anna Fairclough, who would ultimately win the primary and the seat. The younger Kott
wasn&#39;t happy was running and presenting his father with his first tough challenge in years, he

The father and son operated a                        Hardwood Flooring. Working on his father&#39;s
                              business called l<ott&#39;s
campaign meant the younger Kott had to take a   break from the flooring business and he testified
that    the end of July he was running out of money.

          told dad if
"I basically my            to    me I          some kind income, testified
                    you want keep on haveto have       of      "
the younger Kott, who said he has two children still     home and awife     who does not have ajob.

Sometime around the second week of August, he testified, his father brought $7,993 in cash to his
home and gave it to him. The younger Kott toldthe    jury it was understood it was to be an advance
for flooring work. He said he needed to refinish the Brazilian cherry floors   did in 2002 for former
Veco executive Rick Smith and also had a job for a  woman he identified only asSharon     Durant.

Kott testified that the idea of getting an           he
                                                    so     had money towork    on his father&#39;s
campaign came up in a                         Allen&#39;s
                         discussion at "Mr. Bill                           Allen,
                                                        place in July. He said        the chief
executive of Veco, during a                                                            without
                             conversation involving both Kotts, offered to give him cash           any
need to      do work.

"I said                  adding
          no, no," Kott said,         that he and his father were not about to compromise
themselves by doing             illegal.

He said the solution of getting an advance for flooring was his idea.

He said he intended to do               after
                              flooring jobs     the Aug. 22 primary election. But his father lost
the primary and he never did the work for Smith. Kott said                         him
                                                                 was supposed to call       but
never did.

He testified that after the FBI raided the offices of his father and other legislators on Aug. 31 and
Veco was mentioned in   the news coverage, he didn&#39;t  the
                                                         press     issue of finishing up Smith s floor.

          say court what happened to the "Sharon Durant" job and didn&#39;t return
He didn&#39;t in                                                                  aphone call
later Tuesday seeking comment. He also did not explain why her job would have been included in a
$7,993 invoice paid by Allen or, for that matter, why Allen                           flooring job.
                                                                be paying for Smith&#39;s

When prosecutor Marsh got his turn to ask the younger Kott questions, he clearly wanted jurors to
know he found the story unbelievable.

                                            he                              asked
If he never did the job for-Smith, wouldn&#39;t want to pay the money back? Marsh              him.

     I will give it back," Kott said. FBI                                             _5teVen5_993

But you have-n t, Marsh said. Kott conceded that was true.

When Smith testified last week for the prosecution, he said the story           the flooring job was
just a                                                         keep
      cover. The idea was to just get money to the son so he could            working on the campaign,
Smith told      jurors.

Smith testified that he met with then-Rep. Kott at the Rendezvous bar in Juneau on            31, 2006,
to figure out away to do so without anyone knowing.

hftpI//WWW.adncom/news/politics/fbi/kott/v-printer/story/9314766p-9228866c.html 9/19/2007
      : Kotfs cashadvance
              szmosays Page
                 a was
a§l11.co1n [Petelegal 0                                                                                                    33
"I thought it was illegal," Smith testified.

                         need    redone,
Anyway, his floors didn&#39;t to be                        Smith said.

Former Veco        Allen
                   chief        also has    testified he   didn&#39;t thinkSmith&#39;s floors needed to   be redone.

"They didn&#39;t
            need                                                                             he
                            because you go into Rick s house and you have to take your shoes off,
testified last     week.

                                         Kott&#39;s wasn&#39;t to be an advance.
Alien agreedwith Smith that the payment for      son     meant

The federal prosecutor, Marsh, wondered aloud Tuesday why it would be necessary for Kott to get
                             stay on his dad&#39;s campaign
an advance on flooring work to                                     just
                                                          instead of    drawing asalary. Jurors
                                        campaign finished with a
saw documents that showed Rep. l<ott&#39;s                      $15,000 surplus and the younger
Kott did get paid $3,000 from the campaign funds.

                                         just                                              want
Marsh also asked him why he didn&#39;t ask his father for money. He answered that he didn&#39;t
him to have to tap into his retirement fund.

Would surprise him to                                                        said
                        know his father had enough money? Marsh asked. Kott first                                      it would
surprise him alittle, then said he was indifferent.

Earlier in his testimony, the younger Kott had tried to        the charge that Veco illegally paid
Dittman                             for
                     $2,750 to do a poll               2006
                                           his father&#39;s campaign.

He told jurors that neither he nor his father ever wanted the poll                           They did not ask for it and
didn&#39;t for it.

"No polls.           not
                    do       believe in polls, he said.

Find Sean Cockerham at           adn.com/contact/cockerham or             call 257-4344.      Find Lisa Demer at
admcomlcontactgdemer or                    257-4390.

[ Print             CloseWin_dow

Copyright ©      2007 The Anchorage Daily   News www.adn.com!

                                                                                                     FBI -Stevens-994

          adn.com/news/p olitics/fbi/kott/v-printer/
http ://WWW.                                             14766p-9228 866c.htm1
                                                 story/ 93                                                             9/19/2007
            : Kott  found
    4 _adn.con1 $30,200 his D
         IPete expwsFBI in closet
            Jr      K
                                                                                                                  1 of

                                                                                   Page ]
                                                                                 [ Print H I Close  7
           Anchorage           News

           Kott explains $30,200                FBI found in his closet
             MY MON EY&#39;:says he saved per diem checks and that $7,993 from Bill Allen was a
           flooring job advance.
           By LISA         SEAN
                          and           COCKERHAM
           Anchorage Daily News
           Published: September 20, 2007!

           When the FBI last summer     searched    the Juneau      that
           then-state Rep. Pete Kott shared with his girlfriend, agents
           found more than $30,000 in cash on the shelf in his closet, a
           prosecutor disclosedduring questioning Wednesday in Kott&#39;s Former House speaker Pete
           corruption trial.                                              center, leaves the Federal Building
                                                                                  and U.S. Courthouse in Anchorage
           That was the biggest revelation of the day in U.S. District Court           19,
                                                                                   on Sept.        2007, anked by his
           and it came out when a defense witness
                                          --                 Debora Stovern,        attorney Jim Wendi, far left, his
           K0tt slong-time girlfriend -- was on the stand. She also talked          daughter Pam and his girlfriend
                                                                                  Debora Stovern, right. Kott testified
           about embroidering hats with Veco Corp.&#39;s on the front and
                                                                                 at his trial for bribery, extortion, fraud
           the initials     -- for Corrupt Bastards Club - on the back.
                                                                                     and conspiracy.ERIK H!LL/
                                                                                        Anchorage Daily News!
           The main WitnessWednesday was Kott, the former Republican                         -. .            A    H
           House Speaker from Eagle River. He took the stand in his own
           defense around          a.m., denying hetook  bribes and talking                     T                          &#39;l
                                               1992, the friendship he soon
           about his start in Alaska politics in
           formed   with Veco chief executive   Bill Allen   and his role in
           passing a new oil tax in 2006.

           On the witness stand, Kott, wearing a dark suit, a red tie and
           glasses, came across as serious and hardworking. He seemed
           like a different man than the hard-drinking, crude-talking
           wheeler dealer who appears on secretly made recordings played          An embroidered Veco hat with the
           by prosecutorsearlier in the trial. On those tapes, he promises         initials CBC for "Corrupt Bastards
           Veco executives time and again that he&#39;d er done" on the           Club" was entered into evidence in
           oil field services company&#39;s                                                    Kott&#39;s !

           He is accusedof conspiringwith         former Veco vice
           president Rick Smith and others     push through a new oil tax           .
           favored by Veco and North Slope oil producers. Allen and Smith have pleaded guilty to bribing Kott
           and three other legislatorsand are cooperating with the government.

           In earlier testimony, Allen and Smith named Kott as one of the lawmakers they bribed.

           As Kott testified Wednesday, Stovern, his daughter Pamela, and his daughter in~law Cynthia
           listened from the front    right behind the defense table.

           THE              CLOSET
                         IN THE

           Right off the bat Wednesday, Kott told jurors that the $30,200 cash was his. It accumulated                     2
                                                                                       FBI          Stevens 995

                                                                                tml                                  O7
                                                                                                                  . 0/ !
1 -_=___             °§i;1> -
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                                                                               . i9e;A§.-ieeso-r?§2eF
.acEn.com I
   »     exp16i11s found 0
    PeteKott          his Page
       1 Kott FBI in closet                                                                            of
1/2 years as he cashed the checks legislators receive for daily living expenses while in Juneau or
otherwise working,    he testified.

"Absolutely it was my money," Kott said.

       the checks stack up, then take them to the bank and
He&#39;d let                                             cash    them, he said. Some of the
money came from hardwood flooring jobs too.                                        Flooring.
                                                  and his son own l<ott&#39;s Hardwood

        lawyer, Jim
His defense            of          whether anythe
                 Wendt Anchorage, asked                  from
                                            of $30,000 came Allen
or Smith.

Kott hesitated for amoment.               he
                                      He said               whether some of
                                                wasn&#39;t sure          the     $900 that Allen gave him
                                     Hotel ended in that stack.Allen counts the
one nightin Suite604 ofJuneau&#39;s Baranof    up                          out
money in one of the video recordings secretly made in the suite that served as Veco&#39;s

Kott testified that the money waspayback for a                                     a
                                              $1,000 contribution he had just made maybe
couple of days before to then Gov. Frank Murl<owski&#39;s    re~election campaign. But when Allen
testified earlier in the trial, he said: "I just gave it to

Kott told jurors about growing up in Flint, Mich., the son of a          plant
                                                               General Motors          supervisor. He
started working the assembly line right        school
                                               high        too, but after acouple of years enlisted in
the Air Force. He married his             mother in Taiwan. Their relationship is strained, Stovern
told jurors. They haven&#39;tdivorced.

His military career spannedthe next 22 years             brought him to Alaska in 1984. He has a
master&#39;s in administration and started teaching political science classes at Wayland Baptist
University. A student gave him the idea to run for the Eagle River House seat in 1992.

Early on, he met Allen through the late and powerful Rep. RamonaBarnes. She took Kott under her
wing         a mother hen, calling him her nephew.

Allen                 Kott
          Kott hit it off,                                develop
                           told jurors. They both wanted to                                 resources;
                                                                            Alaska&#39;s natural
they both came up doing hard physical work.

"Hands on, just tn/ing to scratch through. Obviously                              lot
                                                           Bill scratched through a     better than I did,"
Kott said.

And there was more.

"Bill was kind of                      "We
                       himseif," Kott said.        both had some of that in common."

                                     house         sometimes
Kott said he could drop in at Allen&#39;s anytime and            regretted it -- showing up when
the older      was already in bed. He guessed he had been there 200 times.

Smith was a friend too, but not at the same level, Kott told jurors.              been Smith&#39;s
                                                                         He&#39;s only to       house
in Anchorage     a few times.

It was his girlfriend, Stovern, who began the day on   witness stand. She wore a cobalt blue
dress and came across as friendly and at ease. She never seemed            even under intense
cross examination by prosecutor James Goeke.

Under                 by defense attorney Wendt,      Stovern said she met Kott about six years ago while
                                                                                 FBI - Stevens~996

http://Www.adn.com/news/poii cs/fbi/kott/v-printer/story/93*1749lip-923 1288c.htm1                9/20/2007
               IPete ¬Xp%1S $30,200
                   :Kott  found his &#39; Page
            92ad.Lr1;com FBI in closet      4
                                          3 of
                attending legislative committee hearings as a state employee              occupational
                                                                                  worked in            licensing.
                3                                  living
                About 1/2 or four years ago, he began          in her condominium whenever he was in Juneau.

                She no                                                                    Hardwood Flooring and
                              works for the state. She handles the bookkeeping for l<ott&#39;s
                works alongside Kott installing, sanding and finishing wood                 the
                                                                                 She also filed   campaign
                 nance                     in
                                          races 2004 and 2006.
                               for l<ott&#39;s

                CORRUPT BASTARDS                 CLUB
l                cross
                Under       examination, Stovern testified she made the highly publicized                                 Corrupt Bastards       Club"
                hats seized by the FBI at the Juneau condo.                &#39;

                She embroidered 100 hats with the Veco logo on the front and added aCBC logo to the back of
                about   adozen.

                Goeke asked                                                     for
                                            she told the FBI that the initials stood                  when federal agents searched the
                apartment in                and questioned her.
                 told them my understanding was this
                "I                                  CBC,      was corporate bastards club
                                                             it                       or                                          something like that.
                I told them     understanding it was a                               some
                                                      barroom joke made in response to                                                   opinion
                                                                                                                                   kind of
                piece," Stovern said.

                Did she mean "Corrupt Bastards Club?" Goeke asked. She said she did.

                Stovern testified she was very indignant" herself about the newspaper opinion piece, which said
                legislators who accepted Veco campaign contributions were being unduly influenced.

                She said that                                                    the
                                 Kott and Smith were joking about it in the bar at    Baranof Hotel in Juneau.
                Someone came upwith    the name "Corrupt Bastards Club" injest, she said.

                Federal prosecutors had a          the
                                         box full of                         hats in court. They entered ared             one into evidence as
                Exhibit 208.

                Veco paid her $900,                                       she
                                        $9 for each hat she embroidered. But      didn t make a lot, because the
                hats cost her $3 each      she had to cover FedEx shipping, thread and other expenses. Kott
                delivered the hats to        she told jurors.

                A central issue                                                                        Flooring. Jurors now
                                          the trial concerns $7,993 that Allen paid to Kott&#39;s Hardwood
                have heard                conflicting stories about it.

                Kott and Stovern on Wednesday both told jurors that                                 $7,993 payment        was an advance for
                future flooring jobs for Allen and Smith.

                      son,               M. Kott, told jurors on Tuesday that the money was an advance for flooring work
                for Smith      and a    woman he        identified as     Sharon Durant.       Neither Kott       nor Stovern       mentioned
                Durant. The younger Kott needed the advance so he could                                           from
                                                                                                           time off        the flooring business
                and work on                     campaign in 2006, he
                               dad&#39;s re-election               testified.                                Kott lost in the primary.

                But both Allen and          Smith testified       that the     money wasn&#39;t future
                                                                                             for                 flooring work.       was
                                                                                                                                     It     intended
                solely to allow Kott s son to                   on the campaign, they testified. Smith                  the
                                                                                                                       called         payment illegal.

                Goeke asked Stovern if she would be surprised to learn Kott had $30,200 in cash laying around.
                She said       he did   a lot   business
                                                of              in cash      but didn&#39;t
                                                                                          know he     had that    much.
                                                                                                                            FBI Stevens 997

                http://www.adn.comfnews/politics/fbi/kott/v-printer/story/93 1>7491p 923 9/20/2007
i___ _..- .._                                                                                                                                            _..
            Kott $30,200his D
        adncom : expgs in closet
                     found Page
                         FBI                                                                                            44
       Goeke                                      have
                            why Kott wouldn&#39;t just paid his son to be his campaign manager out of his
       own cash.

       "The money was meant for living expenses, Stovern                responded.

       Another issue that came up Wednesday concerns a political                      for Kol:t&#39;s      2006
                                                                                                 campaign in        that
       Veco paid      told
                      Kott                  benefit
                              jurors he got no      from it.

       Wendt                                                back
                         into evidence campaign literature dating                          show
                                                                        several elections to                      Kott
       used the same themes for years. Kott                               his
                                                  jurors he didn&#39;t change strategy as aresult                 of the
       poll, which showed him behind.

       Kott                          Thursday.
                          testifying on                                    the
                                                          The case may go to              Friday.
                                                                                     jury on

       Find Lisa           at
                           online      adncomicontactlldemer or             call 257-4390.   Sean
                                                                                             Find     Cockerham online
       at adn.com/contact/scockerham            or call    257-4344.<

       [ PrintPage ][ CloseWindow

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                                                                                                    FBI   Stevens 998

                                                           stmy/93    128
       http://WWW.adn.com/news/po1i cs/fbi/kott/v-printer/1s7491p-923 8c.htm1 9/20/2007
l~      I         :
 adrtcom Sen. Ted Stevens Contractor:
                                   Workedfor Stevens Veco&#39;s
                                                   on     dime                                        1    3
                                                                                                      Page of

                                                                            [ Print      ]
                                                                                 l5ageJ[ Cl0seWindow

 Contractor:          Worked           for Stevens                  dime
                                                         on Veco&#39;s
  SPECIAL PROJECTS : Ex employee says jobs included Girdwood remodel and fundraiser
 help for U.S. senator.
 The Associated     Press

 Published: September 20, 2007!

 WASHINGTON        -- A construction    worker   who oversaw   renovation
 of Sen. Ted Stevens home said his company also paid him to
 help run fundraisersfor the Alaska Republican, practice that
 appears to violate federal campaign finance laws.
                                                                             The media watches as authorities
 Contractor Robert Williams is a key witness in a bribery                   search the Glrdwood home of Sen.
 investigation that stretches from Alaska to Capitol Hill and                                       knew
                                                                             Ted Stevens in July. Stevens
 threatens legal and political headaches for the Senate s longest-          from the beginning that an Alaska oil
 serving Republican.The FBI is investigating whether Stevens                contractorwas renovating his home,
 received illegal gifts from Veco Corp., the once powerful Alaska             according to a constructionworker
 oil contractor.                                                             who said his job duties ranged from
                                                                               installingthe senator shardwood
 Williams said he was in charge of "special projectsII for Veco ex»          floors to helping run his fundraisers
 CEO Bill Allen, and the renovation of Stevens home was one                    on company time. AL GRILLO/
                                                                               Associated Press archive 2007!
 such project. Others included working three or four fundraisers
 for Stevens while          the clock with Veco. Federal elections laws
 prohibit candidates from accepting donations or free services
 from corporations.

 Unlike other Veco employees, Williams did not itemize his time sheets with job codes so customers
                                                 pet projects, Williams just logged his hours and
 could be billed. When working on one of Allen&#39;s
 Veco made sure he was paid.

 "I never had any doubts about it until the FBI came down and served me with subpoenas,"
 Williams           a
                   in telephone                           Pressfrom his home in Alaska.
                               interviewwith The Associated

 At fundraisers, includingat least one at the home of Stevens brother in-law, Williams said he was
 assigned     jobs. He delivered ice, arranged for table rental or oversaw the four or five Veco
 employees parking cars.

 "IfI didn&#39;t parking patrol, I basicallyjust had to be there to make sure nothing got messed
 up," Williams recalled.


 Williams                                            pig
                   he alsohelpedrun annualfundraising roastsfor Rep. DonYoung,anotherAlaska
 Republicanwho has come under scrutiny in the Veco investigation. The fundraisers were among
 many Williams said he worked on during his more than   years at Veco.

 Stevens spokesman Aaron Saunders had                comment Wednesday. The senator has said he wants
                                                                                     FBI - Stevens-999

 6                                                             -923
 http://www.adn.com/news/politics/fbi/stevens/v=printer/story/93174286c.html                            9/ /2007
          e<»3»<w~~e -                                            or n§li~Ad-lseQom;¢§§4

        lSen. Workedfor Veco&#39;s8ime
     adncorn gtraotorz on
                     Stevens     2 of
     to avoid                    was
                      suggestion he       trying to influence the investigation by discussing it publicly.

     A spokesman for            office referred questions to his campaign spokesman, who did not
     immediately return a call.

     Corporationsare prohibited from donating to federal candidates and   includes providing
     services, said Kenneth Gross, a Washington campaign lawyer and former Federal Election
     Commission       counsel.

      "The               would have had to have been paid," Gross said.

     Young recently amended his campaign finance reports to reflect         back
                                                                           in                 payments to Allen
              A                                                            2000
     for the fundraisers. review of Stevens campaign finance expenditures since                 revealed no
     payments to Veco or Allen for fundraising.

     Robert K. Kelner, another elections attorney and former Republican National Committee lawyer,
     said the question is whether Stevens or his campaign workers knew the Veco employees were on
     the clock.

      "Should a thoughtful candidate consider that possibility and look into it? Yes," Kelner said. "Do they
                               be that thoughtful? No."
      have a legal obligation to


     Fundraisingand favors are at the heart of the corruption investigation,       has ensnared several
     Alaska legislators. Allen has pleaded guilty to                          with
                                                            lawmakers and is cooperating     the FBI.
     He admitted in court last week that his employees provided "some labor" on Stevens house in
     2000, but Williams recalled the job in greater detail.

      Williams remembered spending two or three days a week for about six months at Stevens house,
      supervisingworkers and installing hardwood floors. He also recalled      a truckload of
      furniture, includinga bed and a rug, from Stevens mother-in law&#39;s to the senator&#39;s
                                                                         house                home.

      In May, house mover Toney Hannah told the Daily News that the Stevenses originally contacted
           1999 about jacking up the Girdwood house in order to add a new first floor.
      him in                                                                             got the go-
      aheadthe next summerfrom BobPersons, Stevensfriend and ownerof the DoubleMusky
      restaurant     in Girdwood.

                                   did                           lower
      Hannahsaidthe first carpenters suchpoorwork that he couldn&#39;t the houseon their frame
      when he came back several weeks later. Another contractor, Augie Paone, was brought in to rescue
      the project.

      Both Hannah and Paone said their bills, totaling more than                                  by
                                                                                    were paid by check       the
      Stevenses.           said the FBI asked for their business records.       _

      A few other Veco employees helped on the job and Williams hired outside contractors.            garage
      was added, though Williams isn&#39;t how that idea came up.

      UNSURE             WAS PAYING

                in the                                                                 him
      Veco isn&#39;t residential construction business. But Williams said Allen often assigned               work
      for friends and family. Stevens and                                                 think
                                                   are longtime friends, so Williams didn&#39;t the
      renovation project was unusual.
                                                                                          FBI - Stevens-1000

      http                                            93
                                                     story/                           9/20/2007
b   1
     adn.com Stevens Stevens onme Page
        |Sen. : k61tractor: for
          Ted     Worked Vecds      33
     Stevens met with workers and knew Veco was handling the job, Williams said, so he assumed the
     senator was reimbursing Veco for his time. Stevens has said he paid     bill he received for the

         Ted said                                      for,
                     wanted to make sure everything is paid               Williams recalled from an early meeting
     with Allen         Stevens.

     He recalled Stevens and his wife paying for flooring and is certain the senator paid   at least
                                                     record his
     some of the work. But because Williams didn&#39;t       time                          nobody
                                                                     at Stevens house, he said
     could know     for sure     how much   his time    cost.

     At the time, he assumed that when he signed off on expenses and submitted them to Veco, the
     company would pass those bills on to Stevens. Now he&#39;sso sure.

     "I think Bill s ego got away from him,"                     "I
                                                                said.   think he did what he thought he could do.

            to                                             about
     Allen liked do things his own way and wasn&#39;t fussy separating business and friendship,
               "Bill&#39;s personal life and the company were one and the same.
     Williams said:

     Williams testified about the house project before a        jury
                                                        federal grand      in Anchorage. He couldn&#39;t
     remember the total cost of the renovation, but said the Justice Department seemed to already
     know more about the project than he did.

     Investigators were "very thorough" and had numerous documents                 and bills associated with the
     house, he said.

             everythingon up and
     "I thought        the
                       was                      disappointed
                               Williams said. "I&#39;m with way things
     turned out and I&#39;m for Ted."

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                                                                                              FBI   Stevens 1001

                                                                17486};-923 I286o.html
     http ://WWW.adn.com/news/politics/fbi/stevens/v-printer/story/93                                      9/20/2007
         political Prosecutors: buy 1 of
     I Alaska:           gave truck 1
                       Veco $6000
    zgdncomin92fe%ati0nsKott to Page

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    Prosecutors: Veco gave Kott $5,000                          truck
                                                             to buy

    Published: September 20, 2007!

    Former Rep. Pete Kott is           by
                              being cross-examined      federal prosecutors in his corruption trial this
    afternoon. In a hearing early this afternoon with the jury out of the room, prosecutors argued that
    they should be able to ask the former House speaker about $5,000           to him by former&#39;Veco
    Corp. chief Bill Allen for a truck down payment. The judge ruled they can ask about it; l<ott&#39;s
    defense   maintains   it was a loan.

         Page             ]

    Copyright © 2007 The Anchorage Daily News www.adn.com!

                                                                                FBI   Ste-vens 1D02



                        1 >lqLlA~Ai92lT5 lsoQ0-l&
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              Pete lsay$e stretched
                 :Kott        tmthVeco    1
           adnicom Kott thewithexecutg Page4

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           Anchorage DaiiyNews

           Kott says              he stretched               the truth             with Veco       executives
                       did                      but
           TESTIMONY: He take money, defendant says,                                              bribes.
                                                                                             not as
           Anchorage Daily News
            Published: September 21, 2007!

           Former state                                                        talk
                              Pete Kott apologized to jurors Thursday for his crude    in secretly made F