Alaska Senator Indicted for Oil Cover Up

By Pamela Mortimer

Alaska Senator Ted Stevens has been indicted on seven felony counts for allegedly making false statements in order to hide "gifts" given to him by Bill Allen, founder of VECO Corporation, an Alaska based oil services firm. VECO has been the target of a federal investigation on public corruption that has been underway since 2004. The federal operation has managed to ensnare more than a half dozen public officials, business leaders, and lobbyists.

Allegedly, the gifts were made to Stevens from Allen in exchange for assistance on Capitol Hill. Stevens, 84, is a Republican who holds the title of longest serving official in the U.S. Senate. Stevens has been under investigation for over a year.

"We are at the very beginning of the criminal process," said Matthew Friedrich, acting assistant attorney general for the Justice Department Criminal Division. "Like any other criminal defendant, Senator Stevens is presumed innocent."

According to Friederich, Stevens never disclosed the gifts from Allen, which included nearly $250,000 worth of construction work done to the senator’s Girdwood home and other gifts the senator received between 1999 and 2006.

In 2000, Allen supervised construction on Stevens' house, which is located in the ski resort community of Girdwood. Stevens claims he paid for the construction work performed by Allen’s workers. Reports show that Stevens never reimbursed the funds.

Official court documents revealed that VECO added a new first floor to Stevens’ house, a new garage, and two wrap around decks. The company also installed new plumbing and electrical wiring. Outside of the construction, Allen provided Stevens with a new gas grill, furniture, household items, a fully stocked tool chest, and other goods. Allen also exchanged the Senator’s used vehicles for new models.

Prosecutors claimed Stevens "took multiple steps to continue" receiving goods from Allen and VECO. The indictment states that during the construction process Allen and some of the other VECO employees were soliciting Stevens for "multiple official actions...knowing that Stevens could and did use his official position and his office on behalf of VECO during that same time period."

Items on VECO's wish list included: federal grants from various government agencies, funding for the company's projects in Russia and Pakistan, and assistance in building a national gas pipeline in state’s North Slope Region.
Among the evidence presented by prosecutors was a series of secretly taped conversations between Allen and Stevens.

The White House has issued this statement: "Senator Stevens has a long and distinguished career representing the State of Alaska. The president has been working with Senator Stevens for many years and he appreciates his strong leadership on key issues. This is a legal matter that the Department of Justice is handling and we will not be commenting on it."

Although indicted on felony charges, Stevens will not be charged with bribery nor will he be arrested. Justice Department officials claim arrangements are being made so that Stevens can turn himself into authorities.