Jury Hears Taped Allen-Stevens Phone Conversations: 16 Minutes Ago

The Associated Press: Jury hears taped Allen-S... http://ap.google.com/article/ALeqM5je6Pw1sV...
10/6/2008 11:16
Jury hears taped Allen-Stevens phone

conversations
16 minutes ago
WASHINGTON (AP) — Jurors have begun hearing secretly recorded phone calls between Sen. Ted
Stevens and the government's star witness at the Alaska senator's corruption trial.
In audiotapes played Monday for the jury, witness Bill Allen warns Stevens that the FBI was asking
questions about their relationship. Prosecutors accuse Stevens of lying on Senate forms about more
than $250,000 in renovations on his cabin and other gifts from Allen, a wealthy businessman and
longtime friend.
The senator tells Allen that they have a fight ahead and "we're going to win because we didn't do
anything wrong."
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is
below.
WASHINGTON (AP) — A federal judge said Monday the corruption trial of Sen. Ted Stevens will go
forward despite another request to throw out the case.
U.S. District Judge Emmet G. Sullivan ordered the government to file a formal response at the end of
the day to repeated defense claims that prosecutors intentionally withheld evidence favorable to their
client.
Stevens' lawyers says the government kept hidden FBI interviews in which star witness Bill Allen
says Stevens would have paid for improvements to his Alaska house if asked.
Sullivan gave prosecutors until late Monday to respond. Meanwhile, he want Allen, the former head
of VECO Corp., to return to the witness stand.
Stevens is on trial for not reporting more than $250,000 in gifts from Allen and VECO.
On Friday, Sullivan had denied a similar motion from Stevens' attorneys, who had persuaded the
judge on Thursday to suspend the trial, send jurors home and consider a mistrial.
Prosecutors have insisted that they made an honest mistake in not following rules of evidence
requiring the government to share information that could help criminal defendants prove their
innocence, and pleaded with the judge to let the trial go on. He agreed on condition they turn over
the additional documents that could prove valuable in cross-examining Allen.
Stevens, 84, is accused of lying on Senate finance disclosure forms to conceal renovations on his
ski chalet and gifts from Allen.
Allen testified last week he ignored requests by Stevens to send him bills for work by VECO
employees who helped remodel the home, claiming a mutual friend told him the senator made the
requests only to cover his tracks. Stevens says he was adamant that he pay all the bills and had no
idea Allen was absorbing most costs himself.
Prosecutors next plan to introduce phone conversations with Stevens secretly recorded by Allen,
who's testifying as part of a plea deal made with federal authorities investigating corruption among
Alaskan legislators.
Stevens, a patriarch of Alaska politics for generations, has been holed up in the courtroom for more
than two weeks while a Democratic opponent mounts a strong challenge back home to the seat the
senator has held for 40 years.
On the Net:
Justice Department documents: http://www.usdoj.gov/criminal/us-v-stevens/
Hosted by Copyright © 2008 The Associated Press. All rights reserved.
US v. Stevens News -- Oct 7 to Oct 15 2008 1 of 45

Mistrial Is Sought Again in Senator’s Case - N... http://www.nytimes.com/2008/10/06/washingto... 10/6/2008 11:26
October 6, 2008
Mistrial Is Sought Again in Senator’s Case

By NEIL A. LEWIS
WASHINGTON — Defense lawyers for Senator Ted Stevens said Sunday night that they had discovered new evidence of what they said was prosecutorial misconduct
and renewed their call for a federal judge to declare a mistrial or dismiss the case.
In papers filed late Sunday night, lawyers for Mr. Stevens, Republican of Alaska, said material they received Friday at the order of the trial judge revealed what they
said was “intentional misconduct” on the part of the Justice Department to conceal information that would have helped show Mr. Stevens was innocent. The new
assertions came after Judge Emmet G. Sullivan had already admonished prosecutors on two occasions for earlier failings, although he declined on Thursday to
declare a mistrial.
Mr. Stevens, who is seeking re-election after 40 years in the Senate, has been charged with knowingly failing to list on Senate disclosure forms some $250,000 in
gifts and home renovation services.
In the two weeks of the trial, the government has laid out a case that Bill Allen, an oil services contractor and Stevens friend, provided the gifts and services with an
understanding with Mr. Stevens that it all would be provided free. Mr. Stevens’s lawyers have said they will try to show that he paid all the bills sent to him and had
always intended to pay for everything he received.
The defense lawyers said they just learned that the government reinterviewed Mr. Allen, their principal witness, specifically to get him to provide a more damaging
statement after prosecutors discovered they had concealed an Allen statement favorable to the defense.
A Justice Department spokesman declined to comment Sunday night. The government has been ordered to file a response by Monday.
Last Thursday, Judge Sullivan chastised the government for failing to disclose a summary of an F.B.I. interview with Mr. Allen in which he said that Mr. Stevens
would have paid any bills if they had been sent to him. Prosecutors apologized for what they said was a “serious mistake.”
In their new filings, the defense lawyers argued that the concealment must have been intentional because when the prosecutors discovered that statement, they
apparently went back to Mr. Allen on the same day to get him to offer a new statement saying the opposite.
A prosecutor on Thursday seemed to suggest that Mr. Allen had not been reinterviewed on that day. The defense lawyers said the new documents showed that to be
false.
In addition, defense lawyers said the documents also showed that prosecutors failed to inform them that one of the workers on the Stevens house was out of Alaska
for many weeks during the renovation, rendering false his time sheets, which were introduced by the prosecution.
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Los Angeles Times: Defense renews bid to get c... http://www.latimes.com/news/nationworld/natio... 10/6/2008 11:35
http://www.latimes.com/news/nationworld/nation/la-na-stevens6-2008oct06,0,6389401.story
From the Los Angeles Times
Defense renews bid to get corruption case against Alaska Sen. Ted Stevens thrown out
From the Associated Press
October 6, 2008
WASHINGTON — Attorneys for Alaska Sen. Ted Stevens on Sunday renewed their effort to get a federal corruption case against him thrown out, saying prosecutors had
manipulated the story of their star witness to undermine the defense.
U.S. District Judge Emmet G. Sullivan rejected a similar effort Friday after prosecutors said they would share withheld documents with the defense.
Stevens, 84, is charged with lying on Senate financial disclosure forms about more than $250,000 in home renovations and other gifts from oil pipeline magnate Bill Allen, who
was to have testified again today.
The latest motion says the newly disclosed documents show Allen originally told investigators that he believed Stevens would have paid for work on the home if billed -- proof,
the defense says, that the Republican senator never intended to hide anything.
Late Sunday, Sullivan ordered the government to file its response by 8 a.m. EST today and scheduled a hearing for 9 a.m.
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The Associated Press: Defense renews bid to en... http://ap.google.com/article/ALeqM5je6Pw1sV... 10/6/2008 12:02
Defense renews bid to end Stevens trial

By TOM HAYS – 11 hours ago
WASHINGTON (AP) — Attorneys for Sen. Ted Stevens on Sunday renewed their effort to get a
federal corruption case against the veteran Alaska lawmaker thrown out, saying prosecutors
manipulated the story of their star witness to undermine the defense.
"Until today, defense counsel have refrained from alleging intentional misconduct by the
government," the lawyers wrote in court papers. "We can no longer do so in good conscience."
U.S. District Judge Emmet G. Sullivan rejected a similar bid for a mistrial or dismissal on Friday after
prosecutors said they would share with the defense documents that were mistakenly withheld.
Stevens, 84, is charged with lying on senate financial disclosure forms about more than $250,000 in
home renovations and other gifts from oil pipeline magnate Bill Allen. The senator's trial had been
expected to continue Monday with Allen returning to the witness stand.
The latest mid-trial motion to end the trial says the newly disclosed documents show Allen originally
told investigators in 2007 that he believed Stevens would have paid for work on a mountain cabin if
billed — proof, the defense says, that the senator never intended to hide anything.
Rather than turn over the first statement to the defense as required by rules of evidence, the
government "intentionally procured from Allen a contradictory statement" in a follow-up telephone
interview this year, and then "concealed its actions" from the court, the defense papers say.
In an initial response, prosecutors wrote, "Contrary to all of the theatrics and hyperbole from the
defense, no one has attempted to hide evidence or hold back any discoverable item."
Judge Sullivan ordered the government to file its full response by 8 a.m. Monday. He scheduled a
hearing on the defense motion for 9 a.m.
Testifying as part of a deal in which he pleaded guilty to bribing state legislators, Allen has told jurors
he did not have the heart to bill his buddy for the work done by his company, VECO Corp. Stevens
sometimes asked for bills, Allen said. But Allen said he was informed by a mutual friend that the
senator made the requests simply to cover his tracks.
Lawyers for Stevens say the lawmaker relied on his wife to pay tens of thousands of dollars in bills
on the remodeling project, and believed the job was above board. They claim Allen, who was
overseeing the work while the senator was away, kept Stevens in the dark about the cost of extras
such as wraparound decks, a Viking gas grill and fancy outdoor lighting.
Much of Allen's testimony focused on construction at the ski chalet and what Stevens knew about it.
But the self-made multimillionaire also spun a folksy back story of a deep kinship ultimately
destroyed by a sudden betrayal.
Allen, 71, spoke in a halting drawl that, he told jurors, was caused by lingering brain damage from a
motorcycle accident. He described his steady rise from an apprentice welder in New Mexico to owner
of an Alaska-based company with 5,000 employees. He said he first met the patriarch of Alaskan
politics in the early 1980s while attending political fundraisers.
As the years went by, the pair grew close. They smoked cigars together at Stevens' cabin. They
fished for salmon. They flew to the Lower 48 for "boot camp" outings where they gave up hard liquor
and heavy food for wine and light meals, and did lots of walking to get in shape.
"We kind of really liked each other," Allen testified as Stevens sat at the defense table with a frown
etched on his face. "Had the same thoughts. ... Ted loved Alaska and I loved Alaska."
Handwritten notes from Stevens entered as evidence suggest the admiration was mutual. One note
thanked Allen for the "many ways you make my life easier and more enjoyable."
Allen testified Stevens used his Senate seat to help VECO try to win lucrative government contracts
and oil deals in the late 1990s. Defense lawyers insist their client merely was doing his duty to
protect a constituent.
By 2006, the FBI had Allen under investigation for trying to line the pockets of state legislators voting
on a pipeline project. After agents arrived unannounced at his doorstep that year, Allen agreed to
cooperate — even letting them record phone calls with Stevens — so long as they did not pursue
any charges against his family.
The investigators asked him "to help them to try to get the guys I bribed, and they told me if I did that
they wouldn't mess with my kids," he said. "That was it, I guess."
On the Net:

Jury Hears Audio of Sen. Stevens Fretting Abou... http://online.wsj.com/article/SB122330769397... 10/6/2008 13:06
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OCTOBER 6, 2008, 11:55 A.M. ET
Jury Hears Audio of Sen. Stevens Fretting About

FBI Investigation
Associated Press
WASHINGTON -- Sen. Ted Stevens and wealthy businessman Bill Allen had
several phone conversations in 2006 in which they fretted over being the target of
an FBI investigation, according to audiotapes played Monday at the senator's
corruption trial.
"Screw them, if they prove we did something wrong," the senator says in one of
the secretly recorded calls in the fall of 2006. "In my heart, I don't think we did. ..
I say, screw it."
Sen. Stevens, unaware that Mr. Allen already was cooperating with investigators,
advises him to lay low and await the outcome of the probe into more than
$250,000 in renovations on the senator's cabin and other gifts provided by Mr.
Allen's oil pipeline company, VECO Corp.
"Let's stick this thing out together, OK?" Sen. Stevens says.
Sen. Stevens, 84 years old, is accused of lying on Senate finance disclosure forms
to conceal the gifts.
Sometimes using profanity, the defiant-sounding senator repeatedly asserts his

innocence. But he also tells his friend he's worried about the appearance of
wrongdoing and even warns that they might be under surveillance.
"I think they're probably listening to this conversation right now," Sen. Stevens
says in the recording.
Mr. Allen tells his old friend at one point, "I'm sorry this whole thing is
happening."
The jury heard the tapes after U.S. District Judge Emmet G. Sullivan ruled that
the trial should go despite an ongoing clash between Sen. Stevens's attorney and
prosecutors.
Shortly after playing the tapes, prosecutors ended their questioning of Mr. Allen.
The judge ordered the government to file a formal response at the end of the day
Monday to repeated defense claims that prosecutors intentionally withheld
evidence favorable to their client.
In an initial response, prosecutors wrote, "Contrary to all of the theatrics and

hyperbole from the defense, no one has attempted to hide evidence or hold back
any discoverable item."
On Friday, Judge Sullivan denied a similar motion from Sen. Stevens's attorneys,
who had persuaded the judge on Thursday to suspend the trial, send jurors home
and consider a mistrial. They accused prosecutors of withholding or heavily
censoring evidence favorable to their client -- especially FBI reports based on
interviews with Mr. Allen about the unreported gifts to Sen. Stevens.
Prosecutors insisted they had made an honest mistake in not following rules of
evidence requiring the government to share information that could help criminal
defendants prove their innocence, and pleaded with the judge to let the trial go
on. He agreed on condition they turn over the additional documents that could
prove valuable in cross-examining Mr. Allen.
Mr. Allen testified last week he ignored requests by Sen. Stevens to send him bills
for work by VECO employees who helped remodel the home, claiming a mutual
friend told him the senator made the requests only to cover his tracks. Sen.
Stevens says he was adamant that he pay all the bills and had no idea Mr. Allen
was absorbing most costs himself.
Sen. Stevens, a patriarch of Alaska politics for generations, has been holed up in
Drama Continues at Stevens Trial http://www.abcnews.go.com/print?id=5966452 10/7/2008 05:07
Drama Continues at Ted Stevens Trial

Judge 'Disturbed' That Attorney Appears to Have Coached Witness Testimony
By JASON RYAN
Oct. 6, 2008—
In a trial that could hardly be fraught with more errors, it now appears that the U.S. government's key witness in its corruption trial against Sen. Ted Stevens might have been
coached by his attorney while on the stand.
Former CEO of VECO, Bill Allen, might have had his attorney in the courtroom signaling answers to him while he was on the witness stand during cross-examination by the
defense. Judge Emmett Sullivan called Allen's attorney Robert Bundy to the courtroom dais when Allen's testimony had concluded for the day.
"Why shouldn't I hold you in contempt of court right now?" the judge asked.
"It's clear he was signaling an answer to the witness," Sullivan said, ordering the attorney out of his courtroom.
"I'm disturbed that an attorney would sit out there and communicate with a witness," the judge added.
Allen is at the heart of the prosecutors' case against Stevens, 84, the longest-serving Republican senator, who has held his seat as Alaska senator since 1968.
Prosecutors claim Allen and his company paid for a massive renovation project to Stevens' Girdwood, Alaska home and gave him several valuable gifts, which the senator allegedly
failed to report on financial disclosure forms required by the U.S. Senate.
Joseph Bottini, an assistant U.S. attorney from Alaska working on the case, said he had known Bundy for years and would be surprised the communication was intentional.
And defense attorney Brendan Sullivan said he had not noticed the apparent signals from Bundy to Allen during his lengthy cross-examination for the day.
Through much of the day, attorney Sullivan cross-examined Allen, the lead government witness in the case. Allen, who suffers from hearing loss and suffered a major head injury in
a 2001 motorcycle accident, sometimes fished for words and had to have questions repeated on many occasions.
Brendan Sullivan asked Allen about statements he made in an FBI interview that if he had given Stevens an invoice, he would have paid it.
"You told the agents Ted Stevens wanted to pay for everything he got?" Brendan Sullivan asked.
"I don't remember that ... I probably said that," Allen said. After a bench conference with Judge Sullivan the question was asked again and Allen responded by saying "Yes."
Under additional questioning, the defense attorney asked Allen if Stevens "always paid for dinner ... flights and paid money that was his share."
"Yes," Allen said.
According to Allen's testimony, Bob Persons, one of Stevens' friends who kept tabs on the construction project at the senator's house, said about several notes that Stevens sent to
Allen asking for bills and invoices was just "Ted covering his ass."
Allen was also questioned about the design and renovations done to Stevens' house and problems with the roof that VECO had designed on the senator's house. The roof created
large chunks of ice and VECO employees installed a heating system on the roof to solve that issue.
"When we got it done the right way, it was solved," Allen told the jury,
Brendan Sullivan then asked, "And you didn't want to send him a bill?"
"No, I didn't," Allen answered, adding that he would not have done so because it was a "mess-up."
Allen also said he never sent a bill to Stevens because "Everything was what's fair." He will again take the stand Tuesday.
The judge has expressed dismay several times during the trial, after the defense filed two mistrial requests last week. Stevens' attorneys had charged that prosecutors withheld key
evidence, though Judge Sullivan allowed the trial to proceed after scolding the government lawyers.
Copyright © 2008 ABC News Internet Ventures

The Associated Press: Stevens unplugged: a defi... http://ap.google.com/article/ALeqM5je6Pw1sV... 10/7/2008 05:50
Stevens unplugged: a defiant, salty health nut

By JESSE J. HOLLAND – 2 hours ago
WASHINGTON (AP) — Even when he thought no one was listening but his old friend Bill Allen, Sen.
Ted Stevens repeatedly proclaimed his innocence in an Alaskan corruption investigation in between
lectures on staying healthy and keeping out of prison on obstruction of justice charges.
But it turned out that Allen had already turned state's evidence and was helping the Justice
Department by secretly taping telephone calls with the Republican icon, part of the featured
evidence in Stevens' corruption trial in the nation's capital.
Stevens, 84, is charged with lying on financial disclosure forms to conceal more than $250,000 in
cabin renovations and other gifts from Allen and his oil pipeline firm, VECO Corp. The patriarch of
Alaska politics hopes to clear his name with an acquittal before voters go to the polls next month to
vote on whether to return him to a seat he's held for 40 years.
Allen, who pleaded guilty to bribing state lawmakers and agreed to testify against Stevens in
exchange for immunity for his family and a possible break at sentencing, will return to the stand on
Tuesday. During cross-examination, Allen said Monday that Stevens was never one of his targets.
"You never sought to bribe Sen. Stevens, did you, sir?" defense lawyer Brendan Sullivan said.
"No," Allen replied.
Sen. Ted Stevens, R-Alaska, leaves the All throughout the taped conversations between the two fishing and drinking buddies, Stevens
U.S. District Court in Washington proclaimed his innocence to his friend while pleading with the VECO founder to take better care of
Monday Oct. 6, 2008, after another day his health.
on trial. Prosecutors played secretly
"I don't think we've done anything wrong, Bill," Stevens said. "I tell you right now, I've told my lawyer I
recorded tapes for first time Monday at
can't think of a thing we've done that's wrong."
the senator's corruption trial. (AP
Photo/Jose Luis Magana) Stevens also showed flashes of being a sometimes salty, always defiant health nut. "I hope you do
yourself a favor and get yourself a trainer and come over to the house there and get yourself some
workout every day. Keep yourself going now, my friend," Stevens said in one of the taped
conversations.
Related News
"I will," Allen replied halfheartedly.
Stevens, contractor on tapes made
public at trial "I've never been up against a bunch like this before, and I hope you'll really take care of yourself,"
The Associated Press - 7 hours ago Stevens pressed him before describing investigators with a couple of profanities.
Senator Warned a Friend That Jail A former district attorney himself, Stevens warned Allen repeatedly in one conversation not to stand
Was a Risk in the way of investigators and end up facing an obstruction of justice charge.
New York Times - 7 hours ago
"As far as I'm concerned, they can look. I don't have any problem," Stevens said. "It may be what
Sen. Stevens on tape: "might serve we've done leaves the impression we've done something wrong, but you have to make up your mind
time in jail" you're doing something wrong, you have to have an intention to do something wrong to really be
Reuters - 7 hours ago guilty of a crime. So it's a long way before we're going to be in front of a jury. I hope to God neither
one of us is, but we don't want to get ourselves there by trying to do something that leads to a
different kind of charge."
Full coverage »
While the senator exudes defiance on tape, Allen sounds downtrodden.
"I'm sorry this whole thing is happening," he tells Stevens at one point.
Trying to make Allen feel better, Stevens mapped out a worst-case scenario for him.
"These guys can't really hurt us. They're not going to shoot us," Stevens told Allen. "Hell, the worst
that can happen to us is that we run up a bunch of legal fees, and might lose and might have to pay
a fine and might have to serve a little time in jail — I hope to Christ it never gets to that — and I don't
think it will. I'm developing the attitude that I don't think I did anything wrong so I'm going to go right
through my life and keep doing what I think is right."
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Senator Ted Stevens of Alaska, leaving
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where he is on trial.
don’t think it will.”
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Indictment and Trial Exhibits, Mr. Stevens, an Alaska Republican, is in the second week of a
including photos and audio trial involving felony charges that he knowingly concealed some An online stock market for sports fans
(usdoj.dov) $250,000 in gifts and services from Mr. Allen, mostly for Also in Tech:
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renovations to his Alaska home. Starz gives Netflix fans a reason to stream
Amazon invites Microsoft to sit on its cloud
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Mr. Allen, the main prosecution witness, has been on the stand
Times Topics: Ted Stevens
since last week. Prosecutors contend that Mr. Stevens knew full
well that the gifts and services from Mr. Allen and his company,
the Veco Corporation, were provided to him free. ADVERTISEMENTS
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million, and Mr. Stevens, a Harvard Law School graduate who has represented Alaska in the
Senate for 40 years, were once close friends, going to resorts together and sharing ownership of a
racehorse.
Mr. Allen testified that he had not sent bills for the work done on the Stevens home by Veco NYT FAVORITE DAY CROSSWORDS:
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workers for several reasons. He said he had liked and admired Mr. Stevens and wanted to help Buy Now
him. But he also testified that although Mr. Stevens sent him two notes asking for bills, the
senator sent an emissary who told him explicitly not to furnish them. The emissary told him that
the notes asking for bills were simply to create a record to protect Mr. Stevens.
In his testimony and taped calls, Mr. Allen comes across as clearly pained by his role in testifying
against Mr. Stevens. Even though the F.B.I. is listening in, he repeatedly apologizes to Mr. Stevens
for their problems. At one point, Mr. Allen, a gruff and rugged man, says to Mr. Stevens, “I love
you, you know.”
Although Mr. Allen often seemed a reluctant prosecution witness, he acknowledged that he had
agreed to become one as part of a deal with the Justice Department. He has already been
convicted of three felony counts relating to his bribing of state legislators.
He agreed to cooperate on the first day he was approached by the F.B.I. in exchange for a
promise that his grown children would not be prosecuted, he said. He has not yet been sentenced
because prosecutors will make a recommendation based on his cooperation in the Stevens trial.
In the taped conversations, Mr. Stevens, for his part, repeatedly tries to calm Mr. Allen, telling
him he is “one of my best friends” and urging him to take care of his health.
“Get out in the community,” he urges Mr. Allen in a pep talk. “You’re not going to let this thing
whip you.”
Mr. Stevens’s chief lawyer, Brendan Sullivan, began his cross-examination of Mr. Allen gently on
Monday, having him agree that he was a generous man who liked to do favors for people like Mr.
Stevens.
Mr. Sullivan noted that Mr. Stevens had done “guy things together” and that Mr. Allen had stayed
overnight several times in the Stevens home. The relationship was “one of pure friendship, wasn’t
it,” Mr. Sullivan asked. Mr. Allen responded to all such questions with a simple “yes” or “yep.”
Judge Emmet G. Sullivan of Federal District Court put off until Tuesday a hearing on the defense
lawyers’ latest call for a mistrial over what they said was evidence that the Justice Department
had improperly withheld information from them. The department has called the claim “theatrics
and hyperbole” and said prosecutors had not withheld any information they have been required
to turn over.
Judge Sullivan earlier admonished prosecutors on two occasions for failings, though he declined
to declare a mistrial.
A version of this article appeared in print on October 7, 2008, on page A16 Next Article in Washington (1 of 3) »
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Past Coverage US v. Stevens News -- Oct 7 to Oct 15 2008 8 of 45

Witness Says He Was Urged Not to Bill Senator (October 2, 2008)
Witness at Alaska Senatorâ€™s Trial Describes Gifts to Family (October 1, 2008)
Judge Rebukes Prosecutors in Alaska Senator's Trial After They Send Witness Home (September 30, 2008)
TheHill.com http://thehill.com/index2.php?option=com_cont... 10/7/2008 09:07
LEADING THE NEWS
Calls show Stevens was concerned about criminal investigation in 2006

By Manu Raju
Posted: 10/06/08 07:17 PM [ET]
Sen. Ted Stevens spent the end of 2006 deeply concerned about an FBI investigation into an extensive remodeling project of his Alaska home, according to taped phone calls played at his criminal trial Monday.
In those conversations with Bill Allen, a longtime friend and influential oil tycoon, the Alaska Republican said he had done nothing wrong but was concerned that home renovations arranged by Allen created the appearance of impropriety.
“It may be what we’ve done leaves the impression we’ve done something wrong,” Stevens told Allen during a phone conversation in October 2006.
Stevens said he was aware that the FBI had begun questioning people familiar with the renovations at his Girdwood, Alaska home, and told Allen, “Screw it,” saying he expected to be exonerated.
The senator also told Allen, his friend of some 25 years, that he didn’t want to create the appearance that the two men were conspiring or obstructing justice, saying they should “sweat out this grand jury” investigation.
Stevens, 84, has pleaded not guilty to seven charges of failing to report an estimated $250,000 in gifts and home renovations from Allen, the former head of the now-defunct oil services firm Veco Corp., and other longtime associates. Stevens says he paid every bill he
was given, including $160,000 in home renovations.
He disputes that left unpaid was an estimated $188,000 tab for a range of renovations.
Allen, 71, the government’s star witness, has pleaded guilty to bribing Alaska state legislators, but testified that he did not intend to bribe Stevens. Stevens and Allen, both wearing court-supplied hearing aids, barely made eye contact.
Allen, who often struggles to find the right words because of brain damage he suffered seven years ago, spent much of Monday being grilled by defense attorneys during a somewhat contentious cross-examination.
Brendan Sullivan, Stevens’s lawyer, tried to portray Allen as an overzealous contractor who did not bill Stevens because he was eager to please his longtime friend. Sullivan also questioned Allen’s motivations for turning on Stevens, suggesting that failing to cooperate
with the FBI could have resulted in criminal action taken against others at Veco or his children being implicated in the scandal.
“You’re not trying to get me mad, are you?” Allen said gruffly at one point.
The attorney pointed to instances in which Allen did not bill Stevens even after the senator asked for an invoice. For instance, in 2006, Allen paid to repair Stevens’s boiler, but Allen acknowledged that Stevens called his secretary and asked for $1,200 labor bill. Allen
also said he refused to bill Stevens over a reworked roof because of errors in the construction process.
Under cross-examination, Allen suggested that the estimated unpaid costs were greatly exaggerated, and testified that two men who billed Veco for extensive work were alcoholics.
“Isn’t it a fact that you believed that those of the costs on Ted Stevens’s house were excessive?” Sullivan asked.
“Yes, it was too much money,” Allen said.
Under questioning, Allen also testified that Stevens would have paid his bills if he prepared an invoice for him.
“If it had been an invoice that was fair, I think Ted would have paid it,” he told Sullivan.
Allen testified previously that he was told that Stevens was “just covering his ass” in asking for bills. Under cross-examination, Allen struggled to say when he first notified the government about that assertion.
Allen is expected to conclude his testimony Tuesday, and the government could rest its case by the end of the day.
Meanwhile, another drama in the trial is unfolding away from the jurors. Stevens’s attorneys are renewing their effort to get all the charges dismissed, saying the government had “intentionally” mishandled key evidence that the defense should have been given prior
to the trial.
The government chalked up the accusation to “theatrics,” saying the defense’s case has not been harmed. Judge Emmet G. Sullivan of U.S. District Court in Washington has repeatedly rejected Stevens’s calls to dismiss the charges, but he has grown increasingly
frustrated at the government’s handling of the case and deferred a ruling on the dismissal request until the two parties briefed the court further.
But on Monday the proceedings continued with Allen on the stand, with the jury hearing three phone calls the FBI tapped between the two men.
At one point, Stevens said the FBI “may be listening to this conversation.”
“Well, they’re not supposed to be,” Allen responded.
A day after the FBI confronted Allen in August 2006, Allen informed Stevens that the government was investigating the renovations to the house.
“They asked me what I’d done on the house. I said, ‘Well, he paid for everything,’ ” Allen told Stevens on a telephone call.
Stevens, sounding resigned, said he would immediately tell his wife Catherine about the FBI’s inquiry.
About two weeks later, Stevens’s concerns seemed to be growing.
“I’m not really getting much sleep thinking about all this [expletive],” Stevens said.
“I don’t know what these [expletive] are going to do,” Stevens said. “You have the money and you are entitled to spend it as long as you spend it legally and I think you spent it legally.”
The phone calls also showed the deep personal friendship between the two men.
“Ted, I love you, you know,” Allen said in the October 2006 call.
“Let’s get through this and get back to our boot camps again,” Stevens said, referring to their regular vacations together in Arizona and California.
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October 7, 2008
Features Bill & Ted’s adventure ends

O
PICTURE PAST Tibet invaded ld Ted Stevens and his ADVERTISEMENT
buddy Bill Allen can tell
PIC OF THE DAY
you a thing or two about
BRIEFING Credit crunched how it's done in Alaska. They
stand for the good-ole-boy
HAZING Varsity blues
network that Sarah Palin,
NEWS IN PICTURES Republican pick for Veep, claims
to have routed in the name of
ABKHAZIA Lots to celebrate 'change' when she became state
PLAGIARISM My epiglottis governor two years ago.
There were the times Ted and
ANGOLA French scandal Bill would head to Ted's cabin,
AMERICANS Ted Stevens snag a salmon or two, and throw
them on the grill while chomping
GOLDMAN The AIG connection cigars and sipping whisky to keep
the evening chills at bay.
Later, when both had made
their names and fortunes, they'd
Alaska’s senior fly to the Wild West deserts for
weekends in the sun, quitting
senator with a taste heavy food and hard liquor for
for pork faces years white wine and salad because that
was said to be good for a man.
in jail on charges of "We'd call it Boot Camp," says
concealing graft Allen. "Trying to get
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After the indictment on July 30, Stevens' "You cannot report what you don't know,"
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"They have a saying in their house that

when it comes to things in and around the "If you hear evidence that he assisted Bill
teepee, the wife controls," Sullivan said. Allen or VECO in any way so those 4,000
employees could continue to work, they're
Sep 25, 2008 The Associated Press right," Sullivan said. "There's absolutely
(155 occurrences) nothing wrong with it. He's proud of it.
Bring it on."
"You cannot report what you don't know," Sep 26, 2008 The Associated Press
Sullivan said. (118 occurrences)
Sep 26, 2008 The Associated Press

(53 occurrences) "There's only one thing more important in
his life than this trial, and that's doing his
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"I can't do my duty to defend my client if of national crisis," said his defense attorney,
the government does not abide by the Brendan V. Sullivan Jr.
instructions," Sullivan said.
Sep 23, 2008 Washington Post (50 occurrences)
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Walking back to the defense table, Brendan

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and would not have intentionally violated
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Sep 25, 2008 Washington Post (5 occurrences) Sep 25, 2008 Reuters (4 occurrences)
"The evidence will show he didn't want "You can't report what you don't know,"
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renovations. deviousness of someone like Bill Allen."
Sep 25, 2008 United Press International Sep 25, 2008 Washington Post (3 occurrences)
(4 occurrences)
"You won't find him at the art gallery" on

"You are the only guy in the world that days off, Sullivan assured the jurors. "He'll
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Sep 26, 2008 Concord Monitor (2 occurrences)
11 hours ago CQPolitics.com (1 occurrence)
In fact, he said, the Stevens family has a

saying: "When it comes to things around
the teepee, the wife controls. That might
seem old-fashioned, but Ted Stevens is
old-fashioned."
Sep 26, 2008 Concord Monitor (2 occurrences)
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Stevens’s Lawyer Challenges Witness - NYTim... http://www.nytimes.com/2008/10/08/washingto... 10/7/2008 20:27
October 8, 2008
Stevens’s Lawyer Challenges Witness

By NEIL A. LEWIS
WASHINGTON — Senator Ted Stevens’s defense lawyer bore in on the prosecution’s chief witness on Tuesday,
portraying him to a jury as someone who betrayed a longtime friend to protect his fortune.
Brendan Sullivan, the defense lawyer, suggested in his brisk questioning of Bill Allen, an Alaska oil services
tycoon, that Mr. Allen had agreed to cooperate with prosecutors for an explicit promise by the government not to
interfere with a pending sale of his company, Veco, for $380 million.
Mr. Stevens, Republican of Alaska, is facing criminal charges that he knowingly failed to list on Senate disclosure
forms some $250,000 in gifts and services from Mr. Allen and Veco, largely for renovating the Stevens home in
Alaska.
Mr. Sullivan also had Mr. Allen acknowledge that “an explicit part of the contract” to sell the company “was to
cooperate with the government” because the buyers were concerned about whether a corruption investigation he
was involved in could damage Veco.
The central dramatic hinge of the trial has been Mr. Allen’s role in testifying against Mr. Stevens, once a close
friend. Mr. Allen, 71, a rough-hewn high school dropout who went on to become one of the state’s wealthiest men,
agreed to help prosecutors make their case against Mr. Stevens, 84, who has been the state’s dominant political
figure for decades. Mr. Allen agreed to do so on the day in August 2006 that the Federal Bureau of Investigation
confronted him with overwhelming evidence including videotapes that he was at the heart of a scheme to bribe
state lawmakers.
In his cross-examination of Mr. Allen, Mr. Sullivan questioned him about the agreement he reached with the
government in 2007 in which he pleaded guilty to three felonies. The plea agreement explicitly provided that in
exchange for his cooperation, the government would not prosecute Mr. Allen’s grown children nor Veco.
Mr. Allen offered a terse “yes” to each of Mr. Sullivan’s questions, including whether the contract to sell the
company included a provision to hold back $70 million of the purchase price to ensure that Veco did not find itself
in legal difficulties because of the bribery schemes. Mr. Allen acknowledged that the contract, read in court,
provided that he was to be paid $30 million on the first anniversary of the sale and the remainder on the third
anniversary if Veco remained untouched by the investigation.
In his two days of cross-examination, Mr. Sullivan displayed distinctly different faces to the witness and the jury.
On Monday, he praised Mr. Allen as a generous man who admired Mr. Stevens and was thrilled to provide favors
and friendship. Mr. Allen readily agreed with that portrait of himself.
On Tuesday, Mr. Sullivan reversed course, challenging Mr. Allen’s motives and integrity. He jousted with Mr.
Stevens’s Lawyer Challenges Witness - NYTim... http://www.nytimes.com/2008/10/08/washingto... 10/7/2008 20:27
Allen, asking him if he lured Mr. Stevens into telephone conversations under the pretense of being a friend, but
really to help the F.B.I. listen to the calls in hopes that Mr. Stevens would incriminate himself.
“You knew that what was said was being taped. Is that correct?” Mr. Sullivan asked. “You reached out to him.”
The prosecution tried to portray a world in which Mr. Stevens’s friends regularly tried both to help him and to
conceal their efforts from officials.
In one example, prosecutors on Tuesday played a 2006 conversation between Mr. Allen and Bob Persons, another
Stevens friend, in which the two men express annoyance that a plumber’s bill reveals that some work on the
Stevens home was paid for by Mr. Allen.
“You didn’t want anyone to know that,” Mr. Persons says. They first consider persuading the plumber to destroy
the invoice before settling on a plan in which Mr. Stevens is to write a check to reimburse Mr. Allen, not to be
cashed but to be kept in the records to suggest to investigators that Mr. Stevens had paid the bill.
The prosecution is expected to conclude its case in the next day or so. Judge Emmet G. Sullivan of Federal District
Court scheduled a hearing for Wednesday afternoon to consider whether he should declare a mistrial or even
dismiss the case in response to contentions by defense lawyers that Justice Department prosecutors have
improperly withheld evidence from them.
Copyright 2008 The New York Times Company

The BLT: The Blog of Legal Times : More Fire... http://legaltimes.typepad.com/blt/2008/10/more-... 10/7/2008 20:46
The BLT: The Blog of Legal Times
October 07, 2008

More Fireworks in the Stevens Trial
U.S. District Judge Emmet Sullivan will hear arguments tomorrow on whether he should throw out the government’s case against
Alaska Sen. Ted Stevens for alleged prosecutorial misconduct.
The hearing, which stems from a motion filed by Stevens' Williams & Connolly defense team over the weekend, will take place in the
early afternoon, after the jury hears testimony from the government’s final witness, Sullivan said in court today.
The motion follows the judge’s finding last week that prosecutors withheld Brady material from the defense. Sullivan declined to
dismiss the case or declare a mistrial, ruling that the violation took place early enough in the trial to be corrected. The defense motion
alleges deeper misconduct. Williams & Connolly’s sharpest claim is that the government elicited an 11th-hour statement from its
chief witness, Bill Allen, to contradict his earlier statements to the FBI, which support the defense's argument that Stevens intended
to pay for renovations to his home.
Prosecutors, in their response, said they went back to Allen to make sure the Brady letter they sent to the defense was accurate. And
they pointed out that Williams & Connolly partners Brendan Sullivan Jr. and Robert Cary have been admonished in the past for
pushing misconduct allegations too far.
As the two sides were arguing over the trial schedule today, Sullivan remarked that, after tomorrow, “there might not be a defense
case. Who knows?”
In other trial news, the blowup in court yesterday over possible witness-coaching — Judge Sullivan berated Allen’s lawyer, Dorsey &
Whitney's Robert Bundy, for gesturing to Allen while he was on the stand — took on a new dimension this afternoon.
Williams & Connolly handed the judge two declarations that, according to Brendan Sullivan, support what the judge saw "and more."
Judge Sullivan said he was considering referring the declarations — they are under seal — to the U.S. Attorney’s Office for the District
of Columbia for investigation.
Sullivan twice interrupted Allen's testimony yesterday to shout at Bundy for signaling his client. After the jury was dismissed, Judge
Sullivan threatened to hold Bundy in contempt of court and then ejected him from the courtroom. The Associated Press has more of
the fireworks here.
Posted by Joe Palazzolo on October 07, 2008 at 04:20 PM in D.C. Courts and Government | Permalink
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Stevens Jurors Hear Tape of Plot to Hide Free ... http://www.nytimes.com/aponline/washington/... 10/7/2008 20:48
October 7, 2008
Stevens Jurors Hear Tape of Plot to Hide Free Work

By THE ASSOCIATED PRESS
Filed at 7:22 p.m. ET
WASHINGTON (AP) -- Two close friends of Sen. Ted Stevens schemed to conceal the fact that one was paying for
expensive remodeling and repairs done at the senator's cabin in Alaska, according to FBI audiotapes played
Tuesday at Stevens' corruption trial.
Bill Allen and Bob Persons are heard on tape fretting in February 2006 over a $1,000 plumbing bill that says,
''Labor paid for by Bill,'' after Stevens contacted them.
''We need to make that disappear from (the plumber's) records,'' Persons says in one conversation captured by an
FBI wiretap of Allen's phones. ''Tell him Ted's paying for everything. I mean, that's the safest thing, Bill.''
Allen, the government's star witness, and Persons, a neighbor who helped oversee the cabin makeover, agree that
Allen should get a check from Stevens for the work. But they also decide that instead of cashing it, it should be
photocopied and saved in case the senator was ever investigated for ethics violations.
''If it ever comes up, you say, 'Bull----. He paid me for that,''' Persons says.
Stevens, 84, is accused of lying on Senate financial disclosure forms to conceal more than $250,000 in home
renovations and gifts from Allen, the former chief of an oil pipeline company. The patriarch of Alaska politics
hopes to clear his name with an acquittal before voters go to the polls next month to decide whether to return him
to the Senate seat he's held for 40 years.
Allen concluded his testimony on Tuesday after spending nearly four days on the witness stand detailing a
relationship with Stevens that spanned two decades. Prosecutors used Allen to attack Stevens' claim that he was
clueless about the extent of free work that Allen and his company, VECO Corp., did on the cabin.
Before he left the stand, Allen quoted Stevens as saying during one of their many dinners together, ''I know you're
putting more work in there than what you're saying.''
Allen testified as part of a plea deal in a bribery investigation of Alaska legislators. On cross-examination Tuesday,
he testified that in addition to possible leniency at his sentencing, Allen has millions of dollars riding on his
cooperation.
Under the terms of a $380 million sale last year of VECO, the buyer was allowed to withhold $70 million until
able to determine whether Allen's cooperation helps deflect criminal charges against the company itself.
Jurors on Monday heard conversations -- secretly recorded by Allen -- where Stevens proclaimed his innocence
Stevens Jurors Hear Tape of Plot to Hide Free ... http://www.nytimes.com/aponline/washington/... 10/7/2008 20:48
while advising Allen to keep a low profile during the FBI investigation.
''I don't think we've done anything wrong, Bill,'' Stevens said on the tape. ''I tell you right now, I've told my lawyer
I can't think of a thing we've done that's wrong.''
In the tapes of Allen and Persons, Allen warns in another conversation about Stevens' cabin that they ''need to be
real careful.''
''Absolutely,'' Persons responds. ''They're raking him over the coals about anything they can.''
Persons also brings up a horse racing partnership involving the three men, saying he's worried Stevens will balk at
paying his share.
''As Catherine says,'' Persons says, referring to Stevens' wife, ''Ted gets hysterical when he has to spend his own
money.''
It's mentioned that one of the horse's names was Cloak and Dagger.
U.S. District Judge Emmet G. Sullivan said he would hold a hearing Wednesday on repeated defense claims that
prosecutors intentionally withheld evidence favorable to their client.
In a late Monday night filing, prosecutors said they had done nothing wrong and called the defense claims ''the
latest salvo in their effort to derail the trial.''
------
On the Net:
Copyright 2008 The Associated Press

Powell heads up Stevens' witness list - CNN.com http://www.cnn.com/2008/POLITICS/10/08/ste... 10/8/2008 12:07
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Powell heads up Stevens' witness STORY HIGHLIGHTS

NEW: Colin Powell may be called as witness in Sen. Ted Stevens' trial
Car deal takes spotlight in trial of Alaska Sen. Ted Stevens
list Defense attorneys say prosecution did not disclose bank check
Stevens is accused of failing to report as gifts renovations to his home
Next Article in Politics »
From Paul Courson

CNN
WASHINGTON (CNN) -- Defense attorneys in the criminal trial of Alaska Republican Sen. Ted Stevens have
placed former U.S. Secretary of State Colin Powell at the top of the list of witnesses they will call when they
begin their case.
However, the trial may not get that far.
U.S. District Judge Emmet Sullivan will hear Most Viewed Most Emailed Top Searches
arguments and possibly issue a ruling Wednesday
afternoon on a defense motion to dismiss the case,
1 Bill Murray recovers
based on defense arguments that prosecutors

failed to disclose evidence that could help with
2 Lawmakers steamed over AIG retreat
Stevens' defense.
3 CNN poll: Obama wins 2nd debate
Prosecutors were winding down their case

Wednesday.
4 Presidential debate report card
Powell's name was on an amended notice of 5 Analysis: Debate no game-changer
anticipated witnesses filed by the defense

Wednesday in U.S. District Court. Powell was listed
6 Age, health issues follow McCain
as a potential witness weeks ago, during jury

Sen. Ted Stevens did not disclose to the U.S. Senate work 7 Defense: Man killed yacht couple
done on his Alaska home, prosecutors say. selection. Second on the list is Sen. Daniel Inouye,
D-Hawaii. 8 Half-ton Mexican man dies
Stevens is fighting a seven-count indictment

accusing him of failing to report as gifts hundreds of thousands of dollars in renovations to his Alaska home on
9 Nearly 400 penguins rescued
mandatory U.S. Senate financial disclosure forms. 10 Travis Barker: 'Just grateful'
Most of the benefits came from oil industry services contractor Bill Allen, through his company Veco Corp., more most popular »
once Alaska's largest private employer.
Allen has testified he did not bill Stevens for all the expenses related to construction and renovation of the
Stevens family chalet in the ski town of Girdwood.
When asked why not, Allen said his Veco workers may have overcharged and he couldn't figure out a fair price
so he just didn't send a complete bill. Quick Job Search
In another gift outlined in the indictment against Stevens, Allen agreed to swap his new 1999 Land Rover for a keyword(s):
collectible 1964-1/2 Mustang convertible. • Part Time Jobs
enter city:
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Don't Miss Stevens gave his car plus $5,000 to seal the deal. Prosecutors have
• Customer Service Jobs
disputed the value of the Mustang, portraying the difference as "a State Job type
Judge accuses lawyer of
signaling to client
sweetheart deal" that was among the "gifts" Stevens was required to
report.
Jury hears Stevens curse on more options »
wiretapped call But defense attorneys, cross-examining Allen over the past two days,
Judge declines to dismiss came up with dealer and factory materials suggesting the invoice price of
charges against Stevens the Land Rover was $37,500, far less than the $44,000 prosecutors
Star witness takes stand in claimed was paid.
Stevens trial
Allen, for his part, couldn't remember what he paid for the Land Rover, Stories you may be interested in based on past browsing
but testified "they probably stuck it to me."
Commentary: Why Ayers case is risky for
When prosecutors followed up, they produced a bank check with Allen's signature for $44,339.51. McCain-Palin
Stevens' defense attorneys say prosecutors were required to disclose that check before the trial began, and
Candidates go negative but risk alienating
as a result the case should be dismissed.
voters
"We did not produce a copy of the check as we never intended to introduce it," wrote federal prosecutor Joe
Bottini in an e-mail the defense filed with other documents early Wednesday. "We were surprised by the Independent groups are new power in political
introduction of the Land Rover corporate exhibits that you introduced." ads
For his part, Stevens attorney Rob Cary wrote, "The government's failure to disclose this piece of evidence is
especially offensive."
He cited what he called "a pattern of failing to abide by the orders of this court, constitutional mandates and
the Federal Rules of Criminal Procedure."
Previous defense motions to dismiss have accused prosecutors of a litany of misconduct, including what the
judge himself has portrayed as a deliberate attempt to "hide the ball" regarding mandatory disclosure of
evidence that could be favorable to Stevens.
Allen has been excused from the witness stand, and prosecutors Wednesday morning plan to call a summary
witness as they prepare to rest their case. E-mail to a friend | Mixx it | Share
All About Ted Stevens • VECO Corporation • Alaska
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Posted by Alaska_Politics politics -- state, local, national. Public life
Posted: October 8, 2008 - 6:05 am in the Last Frontier has probably never
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From Erika Bolstad in Washington D.C. -- corruption investigation, a big election,
powerful members of Congress under
Prosecutors are about to wrap up their case this morning in
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the judge will hear a motion this afternoon by the defense to information, and join the discussion. Keep
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And who's No. 1 on the defense witness list? Former Secretary
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Home Leading The News E-mails show Stevens aware of home improvements
LEADING THE NEWS

Home
HillTube
E-mails show Stevens aware of home improvements
Mobile
White Papers Portal By Manu Raju
Posted: 10/08/08 02:05 PM [ET]
BLOGS
Pundits Blog The Justice Department on Wednesday prepared to rest its case against Sen. Ted Stevens, after it
Congress Blog
released a flurry of e-mails to undercut the Alaska Republican's defense that he was unaware of the
ADVERTISER
elaborate renovations that transformed his home in Girdwood, Alaska.
Blog Briefing Room
NEWS Stevens did not list the unpaid renovations as gifts on his annual financial disclosure forms, which
require that senators disclose all gifts worth more than $250, according to sworn testimony by FBI
Leading The News
agent Michelle Pluta.
Business & Lobbying
K Street Insiders Pluta, the government’s final witness, is helping the prosecution connect the pieces of its case that
Stevens was kept apprised of the renovations his friends were spearheading, while he failed to disclose
John Breaux
them to avoid the appearance of impropriety. She is expected to conclude her testimony Wednesday
John Engler afternoon.
Vin Weber
Dave Wenhold
Stevens, 84, has pleaded not guilty to seven felony charges of failing to report on his Senate financial
disclosure forms more than $250,000 in gifts and home renovations from his ex-friend Bill Allen, head
The Executive
of the now-defunct oil-services firm Veco Corp.
Campaign 2008
Endorsements '08 The senator paid some $160,000 for the renovations, which he believes was a fair tab. His defense
team plans to argue that the contractors overcharged Stevens for many unwanted renovations, and will
COLUMNISTS try to portray the senator as unaware of the changes as his wife took a lead role in the project.
Dick Morris
In several messages released Wednesday, Stevens asked for bills to pay for the renovations.
A.B. Stoddard “The fact that you have done this project so well and so quickly has helped us more than you know,”
Brent Budowsky Stevens said in an August 2000 handwritten note to John Hess, a former Veco employee and the
Ben Goddard architect of the remodeling project. “As Bob [Persons] and I have told you, under Senate rules, I must
pay you for what you have done.”
David Hill
David Keene But the case will turn on whether the jurors believe he intended to pay for the renovations, or if he
Josh Marshall only asked for bills in a deliberate attempt to cover his tracks.
Mark Mellman
Allen, Stevens’s former friend of more than a quarter-century, testified last week that Persons told him
Jim Mills that the senator was “just covering his ass” in asking for bills. In an August 2000 e-mail, Persons, a
Markos Moulitsas local restaurant owner in Girdwood who monitored the renovations while Stevens was 3,500 miles
(Kos) away in Washington, told the senator that his only expense for some of the renovations was workers
Byron York eating some leftover cookies, chocolate truffles and cake.
COMMENT “You still have cookies and some of the cake,” Persons wrote in an e-mail, which was admitted as
Editorial evidence Wednesday.
Letters
In addition to the installation of two decks, a new staircase, a brand-new power generator, new
Op-eds plumbing and electrical wiring, reworked rooftops and the addition of an entire floor, Stevens also
Weyant's World failed to report a $2,000 Jacuzzi and a $2,965.50 massage chair as gifts.
CAPITAL LIVING “For a lot of reasons I can’t wait until I get home, the house will be the frosting on the cake,” Stevens
Today's Stories told Persons in a September 2000 e-mail.
50 Most Beautiful 2008
After learning of the work status from Persons, Stevens sent Allen a note lavishing him with praise.
Other Features
In The Know “You continue to amaze me the way you keep so many balls in the air at one time,” Stevens said in an
Bookshelf August 2000 thank-you note to Allen for arranging the renovations.
Food & Drink The defense will make the case that Stevens’s friends went to lengths to keep the senator from seeing
Onward and Upward bills, even though he wanted to pay for all costs. Taped phone calls played for jurors this week showed
Hillscape Allen and Persons discussing a scheme to conceal bills for the remodeling project.
RESOURCES Before the case proceeds, however, the court will hear a procedural dispute Wednesday afternoon.
Classifieds
Judge Emmet G. Sullivan plans to hold a hearing on the defense’s motion to dismiss the case over
Subscribe
allegations that the government suppressed key evidence before the trial began. If he denies the
Order Reprints motion, as he has two previous dismissal requests, the defense will likely rest its case by the end of the
Last Six Issues next week, giving the jury two full weeks to reach a verdict. Stevens faces reelection Nov. 4.
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Home Leading The News Judge deals blow to government's case against Stevens
LEADING THE NEWS

Home
HillTube
Mobile
White Papers Portal By Manu Raju
Posted: 10/08/08 05:44 PM [ET]
BLOGS
Pundits Blog A federal judge on Wednesday allowed the criminal charges against Sen. Ted Stevens to stand, but he
Congress Blog
delivered a sharp blow to the government by throwing out key evidence in the case.
ADVERTISER
Blog Briefing Room Judge Emmet G. Sullivan, in the second time in as many weeks, rejected a defense motion to declare a
NEWS mistrial or dismiss all seven felony charges facing the Alaska Republican, but he scolded the
government for keeping key evidence from defense lawyers that they could have used during cross-
Leading The News
examination and their opening argument.
Business & Lobbying
K Street Insiders “I don’t doubt you take your jobs seriously, what I have doubts about is whether the government [is
concerned] about its obligation,” Sullivan said.
John Breaux
John Engler He added that the court would strike records pertaining to work that two men performed on a
Vin Weber remodeling project at Stevens's home in Girdwood, Alaska. He also struck evidence pertaining to a
Dave Wenhold
lucrative car swap in 1999 when Stevens snagged a brand-new $44,000 Land Rover in exchange for
$5,000 in cash and the senator's 1964 Mustang, estimated to cost no more than $20,000.
The Executive
Campaign 2008 Following a contentious hearing, during which the jury was not present and the judge pummeled
Endorsements '08 prosecutors for their conduct, Sullivan said he was “disturbed” by the turn of events.
COLUMNISTS “It’s very troubling that the government would utilize the records that the government knows were
Dick Morris false,” Sullivan said. “And there’s just no excuse for that whatsoever.”
A.B. Stoddard Sullivan said he would instruct jurors Thursday that the government failed to provide the evidence to
Brent Budowsky the defense and they should disregard testimony corroborating the car exchange and records
Ben Goddard
pertaining to the work Rocky Williams and Dave Anderson, two employees of Veco Corp., performed at
Stevens’s home.
David Hill
David Keene Stevens, 84, faces seven felony charges for failing to report more than $250,000 in gifts and home
Josh Marshall renovations from Bill Allen, the former head of the now-defunct Veco oil-services firm, and other
longtime friends. He denies all charges and is facing reelection next month.
Mark Mellman
Jim Mills During cross-examination of Allen, now the government's star witness, the defense sought to
Markos Moulitsas undermine his claim that he spent $44,000 for the Land Rover that he eventually gave to the senator.
(Kos) But the government waited until after the cross-examination -- and during their redirect examination
of Allen -- to disclose that they had a copy of a $44,000 check that Allen used to pay for the
Byron York
automobile.
COMMENT
Editorial
The judge and defense lawyers said the cross-examination of Allen would have been different if they
knew that a copy of the check existed.
Letters
Op-eds “From where we sit, it looks like a sandbag,” said Robert Cary, Stevens’s defense attorney.
Weyant's World
Sullivan has grown increasingly irritated at the government for violating his order to turn over all
CAPITAL LIVING exculpatory evidence before the trial began, and for allowing Williams to leave Washington for Alaska
Today's Stories before meeting with defense attorneys.
50 Most Beautiful 2008
Stevens’s team accuses the government of intentionally suppressing potentially damaging evidence to
Other Features its case. But the Justice Department argues that the materials that were belatedly provided to the
In The Know defense have not affected the trial.
Bookshelf
“We believe we are still in a position to have a fair trial,” said Nicholas Marsh with the Justice
Food & Drink Department.
Onward and Upward
Hillscape
Still, the judge scolded Marsh for producing records in trial that showed Anderson and Williams spent
more time on the renovations than Anderson said in secret grand-jury testimony two years ago. To
RESOURCES comply with an order from the judge, the transcripts of the grand-jury testimony were recently
Classifieds presented to the defense and showed that Anderson was in Portland, Ore. for three months in 2000
Subscribe when he was billing Veco for his work at Stevens’s home.
Order Reprints “We’re talking about the government using documents that the United States knew were false,” a
Last Six Issues visibly angry Sullivan said, saying the Justice Department “had an obligation to say something doesn’t
Useful Links smell right here.”
RSS
“All along the government knew that was a lie,” he added.
Marsh struggled to explain the discrepancy, but admitted that the government’s estimated cost that
Stevens left unpaid a $188,000 tab for home renovations was probably about $16,000-$17,000 too
high. He argued, however, that other Veco employees who worked at the senator’s home did not bill
the company for their hours, and said it doesn’t impact the fact that the senator didn’t report gifts that
were “533 times” higher than the $250 threshold that requires public disclosure.
“We just look at this in a different light,” Marsh said.
“A very dim light, counsel,” Sullivan shot back.
The government plans to inform the jury on Thursday that it rests its case, and the defense attorneys
will spend about a week to make their case.
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Bloomberg Printer-Friendly Page http://www.bloomberg.com/apps/news?pid=20... 10/8/2008 21:05
Stevens Judge Penalizes Prosecutors, Won't End Case (Correct)

By Nadine Elsibai and Cary O'Reilly
(Corrects spelling of Bottini in 13th paragraph.)
Oct. 8 (Bloomberg) -- The judge in Alaska Senator Ted Stevens's gift-hiding trial penalized prosecutors for failing to disclose evidence while rejecting the senator's latest bid for a mistrial.
U.S. District Judge Emmet Sullivan refused to end the trial or dismiss the case after the senator's attorneys accused prosecutors of improperly withholding evidence from them. The judge said he will instruct jurors to disregard some prosecution evidence
and tell them the government knew some information it presented wasn't true.
``We're not talking about faulty recollection. The government was using evidence it knew wasn't true,'' Sullivan told lawyers in the case in Washington. `Ì find this very, very troubling.''
Stevens, 84, the Senate's longest-serving Republican, is accused of failing to report more than $250,000 in free home renovations and other gifts from Veco Corp., an Alaska oil- services company, and its founder, Bill Allen. The senator's lawyers deny
wrongdoing and say he paid every bill he received.
Defense lawyers said the government withheld information that Veco employee Dave Anderson was out of state at a time company accounting records showed that he worked hundreds of hours on the renovation of Stevens's home in Girdwood, Alaska.
``The government has responsibilities to ensure a fair trial,'' Stevens lawyer Robert Cary told the judge. ``Time and time again they have not lived up to their responsibilities. Enough is enough, your honor, and we think the case should be dismissed.''
`Pull a Fast One'
``There was no attempt to pull a fast one on this court'' by hiding evidence, prosecutor Brenda Morris told the judge.
``We believe we're still in a position where everyone here can get a fair trial,'' added another prosecutor, Nicholas Marsh.
The judge said evidence concerning the billing for hours worked on the Stevens home by Anderson and fellow Veco employee Robert ``Rocky'' Williams will be stricken from the record.
``You knew it was not true, that it was a lie,'' the judge told prosecutors.
Stevens's lawyers also said prosecutors yesterday introduced evidence during questioning of Allen that hadn't been provided to the defense -- a $44,339.51 check from Allen to an auto dealership to pay for a Land Rover.
Allen testified that he traded a new Land Rover to Stevens for a 1964 1/2 Ford Mustang worth $15,000 to $20,000, plus a check from the senator for $5,000.
Prosecutor Joseph Bottini told the judge the check wasn't important to the defense. ``They knew we were going to try to prove that the Land Rover cost $44,000,'' he said.
Evidence Rules
The judge said he disagreed and will tell jurors the government had failed to provide the check to the defense as it was required to do under evidence rules.
`Ì think that the government knew it had the check and decided not to turn it over,'' Sullivan said.
The defense has filed four requests for a mistrial. The judge previously denied one bid based on a defense claim that prosecutors withheld evidence about Allen.
Stevens's lawyers also said prosecutors told Veco employee Williams that he could return to Alaska on Sept. 25, the day testimony began. Defense lawyers said they found out three days later that Williams had evidence undermining the government's case.
Stevens's lawyers asked the judge to order their client's acquittal after prosecutors completed presenting their case.
The government's evidence `ìs insufficient to prove any of the seven counts in the indictment beyond a reasonable doubt,'' the lawyers said in court papers.
The case is U.S. v. Stevens, 08cr231, U.S. District Court for the District of Columbia.
To contact the reporters on this story: Nadine Elsibai in Washington at nelsibai@bloomberg.net; Cary O'Reilly in Washington at caryoreilly@bloomberg.net
Last Updated: October 8, 2008 19:39 EDT
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The Associated Press: Judge refuses to end Stev... http://ap.google.com/article/ALeqM5je6Pw1sV... 10/8/2008 21:44
Photo 2 of 3
Judge refuses to end Stevens trial
By TOM HAYS and JESSE J. HOLLAND – 3 hours ago
WASHINGTON (AP) — A federal judge on Wednesday refused another defense request to declare a
mistrial in the corruption case against Sen. Ted Stevens, instead deciding he would tell jurors to
ignore disputed portions of the government's evidence.
The ruling came after Stevens' attorneys accused prosecutors of improperly withholding information
that was favorable to Stevens and by using business records they knew were faulty to try to sway
the jury. The defense has filed motions four times in three weeks asking U.S. District Judge Emmet
G. Sullivan to either dismiss the case or declare a mistrial.
"This is a criminal case with a career on the line here," defense attorney Robert Carey argued at a
hearing. "The government has responsibilities. Time and time again, they have not lived up to them.
Enough is enough."
Stevens, 84, is accused of lying on Senate forms to conceal more than $250,000 in renovations on
his cabin and other gifts from Bill Allen, the former chief of a giant oil pipeline company, VECO Corp.
Former Secretary of State Colin Powell and Sen. Daniel Inouye, D-Hawaii, could be among the first
witnesses to testify Thursday for the defense after the prosecution is expected to formally rests its
case.
Prosecutors had introduced accounting records showing that a VECO worker logged hundreds of
hours on the cabin project. But according to his own grand jury testimony, he was in Oregon much of
that time — something the defense only learned about this week.
Though he ultimately kept the trial on track, Sullivan told prosecutors he was disturbed by the
Prosecution Attorneys Brenda Morris, accusations and sternly demanded an explanation.
and Joseph Bottini, arrive at U.S.
District Court in Washington "Why is it so hard to admit that the government knew those weren't truthful records?" he asked
Wednesday Oct. 8, 2008. (AP prosecutor Nicholas Marsh. "All along the government knew that was a lie."
Photo/Jose Luis Magana)
Marsh argued that the government never portrayed the business records as airtight.
"We looked at this in a different light," he said.
"It was a very dim light, counsel," the judge responded. "A very dim light."
Along with his decision to strike parts of the business records, Sullivan said he would instruct the jury
on Thursday to ignore evidence and Allen's testimony about what prosecutors called a sweetheart
car swap: a 1964 Ford Mustang and $5,000 from Stevens for a new $44,000 Land Rover purchased
by Allen.
Defense attorneys had sought to show on cross-examination of Allen that the Land Rover was worth
far less, only to have prosecutors surprise them by producing a check the witness used to pay for the
vehicle. The judge found the check should have been shared earlier.
Earlier Wednesday, prosecutors called an FBI agent as their last witness to introduce e-mails about
the home improvements.
In e-mails from 2000 and 2001, a neighbor gave Stevens regular progress reports on a project that
turned a modest backwoods A-frame into a two-story home with a new roof, hardwood floors,
wraparound decks, a sauna and a garage.
"We look forward to seeing the house," Stevens wrote back, referring to his wife, Catherine. "I guess
we can't call it a chalet anymore."
The neighbor, Bob Persons, credited a VECO employee with doing the bulk of the work, and the
senator occasionally asked for invoices.
"Don't forget, we need a bill," he e-mailed Allen at one point.
Prosecutors also introduced financial disclosure forms from the same period that required Stevens to
report gifts to himself or immediate family. The senator listed items like a gold coin worth $1,100 and
a sled dog valued at $250 but didn't mention VECO or the cabin project.
Allen, who's cooperating under a plea deal, testified that he couldn't bring himself to charge his close
friend for the costs, and that the senator never paid him. The jury heard secretly recorded phone
conversations in which the pair discussed how to fend off the FBI.
Stevens, who spends more time at his home in Washington than in Alaska, says he paid little
attention to the project that his wife oversaw. He says he assumed the $160,000 they paid for the
project covered everything.
The corruption investigation has rattled Alaska politics, turning prominent state lawmakers into
convicted felons and making Stevens vulnerable to a Democratic challenge for his Senate seat in the
Nov. 4 election.
On the Net:

FOXNews.com - Reporter's Notebook: Prosecut... http://www.foxnews.com/printer_friendly_story... 10/8/2008 21:47
Reporter's Notebook: Prosecution Spared Again in Stevens

Trial
Wednesday, October 08, 2008
By Ian McCaleb
The government's prosecution of U.S. Sen. Ted Stevens will press on, despite a third attempt by his
ADVERTISEMENT
defense team to convince federal Judge Emmet Sullivan to dismiss the indictment against the
84-year-old legislator, or declare a mistrial, because of several instances of the government's mishandling of
evidence.
Sullivan ruled late Wednesday afternoon against the motions for a mistrial or dismissal, but he clipped the
government's prosecutorial wings once again, and chastised the government's team for not living up to its obligation
as "the gatekeeper" and guardian of all evidence in the case.
The government, Sullivan said from the bench, must treat evidence that is favorable to the accused — Stevens — as
sacredly as it treats the evidence that bolsters its case against him. He has repeatedly expressed doubts that the
prosecution is capable of doing so.
At issue today were several motions filed by the defense from Sunday night to Tuesday — motions that cited many
instances of alleged government misconduct.
Two of these instances were particularly rankling to Sullivan. The first involved a $44,000 check written by the
government's star witness, Bill Allen, the former CEO of the now defunct VECO Corp., for a Land Rover sport utility
vehicle in 1999. The defense accused the government of springing the check on them at the very last second, when
they should have been alerted to the check's existence well in advance of lead attorney Brendan Sullivan's lengthy
cross-examination of Allen.
The Land Rover is central to one of the government's core accusations against Stevens. The prosecution said
Stevens traded a 1964 Mustang convertible for the Land Rover in 1999. While Stevens handed over the car and a
check for $5,000 to Allen when he was given the keys to the new Land Rover, the government alleges the full value
of what Stevens traded for the Land Rover was nowhere near the $44,000 Allen paid for it. Stevens should have
reported the difference on his annual Senate financial disclosure form that year, the government said its August
indictment.
(Stevens is charged with making false statements on his Senate financial disclosure forms seven years running, to
hide the vehicle transaction, the wholesale renovation of his Girdwood, Alaska, "chalet," and other alleged gifts and
services from Allen and VECO).
Attorney Brendan Sullivan attempted to "impeach" Allen when he was on the stand yesterday by repeatedly
questioning him about what he paid for the Land Rover. It was only on the government's redirect, when Sullivan had
finished with Allen, that the existence of the check was revealed. Allen left the stand yesterday and likely departed
for Alaska, and the defense cried foul, saying they wouldn't have bothered if the government had given them a copy
of the check as they were required to do.
Judge Sullivan asked government lawyers why they didn't produce the check earlier, saying in a heightened tone of
disbelief that he couldn't understand why the evidence wasn't produced to strengthen testimony given by a convicted
felon.
The check surely bolstered the government's case, Sullivan said, but he ruled late Wednesday afternoon to strike all
evidence related to the vehicle transaction from trial, simply because the prosecution did not follow his specific
orders to turn over all relevant evidence to the defense in a timely fashion.
In addition, Judge Sullivan opted to strike all government evidence related to labor hours reported by two VECO
employees who are said to have worked on the extensive renovations to the chalet, because the grand jury
testimony given by one of them — Dave Anderson — conflicted with spreadsheets the government introduced as
evidence. According to that grand jury testimony, Anderson said he was away from the job site for some seven
weeks, even though according to the spreadsheets, he billed VECO for man hours at the Stevens house during that
same seven-week period.
"You knew those spreadsheets were a lie, and you introduced them anyway," Sullivan said in court, venting his
frustration at government lawyer Nick Marsh.
Again, Sullivan opted late this afternoon to strike Anderson's spreadsheet evidence from the trial record, as well as
spreadsheet hours claimed by VECO worker Rocky Williams, whom the government flew out of Washington two
weeks ago after keeping him in town for three weeks of pre-trial preparation. The defense at that time accused the
government of hiding Williams from them, and made its first of three pushes for a mistrial.
It is not clear how significant these strikes will be for the government, if only because it presented some of its
strongest evidence against Stevens to date Wednesday morning and afternoon. Taking the stand for the government
was an FBI special agent out of Alaska who acted as a sort of document verifier for the prosecution. One by one,
the government introduced Stevens' Senate financial disclosure forms from 1999-2006, none of which claimed
Stevens had received anything from VECO and Bill Allen. Simultaneously, the government revealed e-mails between
Stevens and Allen, and Stevens and Bob Persons, who directed work on the Girdwood residence in the absence of
the senator or his wife Catherine.
The e-mails, introduced chronologically with the disclosure forms, appeared to show that Stevens was deeply
involved in the work VECO was doing on the house, and knew about a great many details of that work, despite some
of the assertions made by the defense in its opening statements.
Next Steps
With the judge's ruling to strike key pieces of government evidence, standard trial practice allows the defense to file
a motion for acquittal, which will argue that the government hasn't proven its case, and Stevens should be allowed to
go about his business without the cloud of a federal indictment hanging over his head. That brief is due to be filed
Wednesday evening.
Judge Sullivan has scheduled a 9 a.m. ET hearing Thursday for arguments on that brief.
It is then expected he will bring the jury back into the courtroom, instruct them on Wednesday's strikes, then allow
the prosecution to rest its case.
Sullivan will have to rule on the motion to acquit before the defense can launch its portion of the case.
Should the case move forward — that is, should the motion to acquit be denied — defense witnesses will start to file
into the court. On that list: Former Secretary of State Colin Powell, and Hawaii Democratic Sen. Daniel Inouye.
There are also several witnesses who have been flown in from Alaska to testify on Stevens' behalf.
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Senator Ted Stevens dealt a sharp blow to the prosecution on Wednesday by
excluding some evidence because he said Justice Department prosecutors REPRINTS
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Stevens’s Lawyer Challenges Witness mistrial or dismiss any of the seven felony
(October 8, 2008) counts, as had been urged by Mr. Stevens’s 1. Thomas L. Friedman: Palin’s Kind of Patriotism
Senator Warned a Friend That Jail lawyers. But Judge Sullivan delivered a severe scolding to the 2. The Nation: Who You Callin’ a Maverick?
Was a Risk (October 7, 2008) 3. Maureen Dowd: Mud Pies for ‘That One’
prosecution and said he would bar the government from using
U.S. v. Stevens: Indictment and Trial 4. Lesson Plans: Well-Paid Teachers? I’m on Board
two categories of evidence central to its case.
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Perhaps more important, he said he would tell the jury on
6. Uniting Around Food to Save an Ailing Town
Thursday that he was excluding some of the prosecution’s evidence because “the government
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presented evidence the government knew was not true,” an instruction that is likely to undermine
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9. Maureen Dowd: Sarah’s Pompom Palaver
In a special hearing outside the presence of the jury, Judge Sullivan said, “The government knew 10. Editorial: Politics of Attack
the documents were lies.” Go to Complete List »
Mr. Stevens, a veteran Alaska Republican, is in the second week of a trial on charges that he
knowingly failed to list on Senate disclosure forms some $250,000 in gifts and services he
received from Bill Allen, an Alaska oil services tycoon and longtime friend. The judge had earlier nytimes.com/business
admonished prosecutors for failing to turn over to the defense evidence about the gifts and
services that were used mostly in the renovation of Mr. Stevens’s Alaska home. Prius Diary: The switch from an S.U.V.
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the house. To bolster that assertion, prosecutors presented time sheets from workers at Mr.
Allen’s company, Veco, for work done on the Stevens home. One of the workers, David Anderson,
listed 280 hours of work on the renovation project for October 2000. But grand jury transcripts
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“The government knew those records were not truthful records. All along the government knew
that was a lie,” Judge Sullivan said angrily to Nicholas Marsh, a prosecutor. “Why did you do it? I
want an answer.”
Facing the withering verbal flogging, Mr. Marsh answered, “We didn’t see the case that way,” and
argued that the information about Mr. Anderson’s absence from Alaska was not material.
“We’re talking about the U.S. government using documents it knows are false,” Judge Sullivan
responded. “You have an obligation to see this man gets a fair trial.”
Mr. Anderson’s falsely billed hours amounted to about $16,000 or $17,000, less than 10 percent
of the time attributed to the Stevens home, which was why “we looked at this in a different light,”
Mr. Marsh said.
The judge countered sharply, “A very dim light, counselor.”
As a sanction, the judge said he would tell the jury to review the time sheets but with the time
attributed to Mr. Anderson and another worker, Robert Williams, excluded. Mr. Williams, who
was supposed to be a government witness, was sent home to Alaska by prosecutors last week
because they said he was ill. Mr. Williams called defense lawyers to say he did not do all the work
attributed to him on the time sheets, either.
The other category of evidence that the jury will be told to ignore was the cost of a Land Rover
that Mr. Allen gave to Mr. Stevens in trade for a 1964 ½ Mustang, worth about $20,000, and
$5,000. In their cross-examination, defense lawyers labored to suggest that the Land Rover cost
less than the $44,000 Mr. Allen said he had paid for it. But when prosecutors questioned Mr.
Allen again, they produced for the first time a check he wrote the dealership for $44,300, making
the defense lawyers look foolish.
Judge Sullivan said the prosecutors should have informed defense lawyers of the check. Had they
done so, he said, they would not have made a misguided effort to challenge the price of the car.
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The Associated Press: Prosecution to call extra ... http://ap.google.com/article/ALeqM5je6Pw1sV... 10/9/2008 11:35
Photo 1 of 8
Prosecution to call extra witness
at Stevens trial
By MATT APUZZO and JESSE J. HOLLAND – 16 minutes ago
WASHINGTON (AP) — A judge decided Thursday that prosecutors

could call an extra witness at the corruption trial of Sen. Ted Stevens,
delaying a defense case that was to feature testimony by Colin Powell.
The former Secretary of State Colin Powell was on hand at the

courthouse Thursday morning to testify for Stevens. But he left after
U.S. District Judge Emmet G. Sullivan decided to let the government
— which had said it was done with its case on Wednesday —
continue.
The defense still expected to start its case by the afternoon by calling
three other witnesses, including Sen. Daniel Inouye, D-Hawaii.
Stevens, 84, is accused of lying on Senate forms to conceal more than

$250,000 in renovations on his cabin and other gifts from Bill Allen, the
former chief of a giant oil pipeline company, VECO Corp.
On Thursday, prosecutors called Dave Anderson, Allen's nephew and

a welder for VECO who worked on the cabin.
Sen. Ted Stevens, R-Alaska, and his daughter Beth Stevens, arrive at
federal court in Washington, Thursday Oct. 9, 2008. (AP Photo/Jose Anderson testified he arrived at the cabin one day in 2000 and
Luis Magana) introduced himself to Stevens' wife, telling her he "worked for VECO
and was Bill's nephew." He described how he and other VECO
workers spent 10 hours a day, six days a week jacking up the cabin
and doing construction on a room underneath and on a new garage.
His appearance came after the judge decided he will tell the jury to
disregard evidence that Anderson logged hundreds of hours on the
cabin project. According to his own grand jury testimony, Anderson
was in Oregon much of that time — something the jury wasn't told
when VECO accounting records were introduced earlier in the trial.
Stevens' attorneys have repeatedly accused prosecutors of improperly

withholding information that was favorable to Stevens and of using
business records they knew were faulty to try to sway jurors.
Because of the ruling, the government decided to call Anderson to

"speak to his hours and the hours that are not accounted for on the
VECO records," prosecutor Brenda Morris told the judge before
witness took the stand.
Lawyers for Stevens face several challenges once they present

evidence at his corruption trial. Among them: Making jurors like a man
who has described himself as a "mean, miserable S.O.B."
On Capitol Hill, the Senate's longest-serving Republican is the

self-styled "Incredible Hulk" who unleashes his temper on lawmakers
who don't go his way. But in the courtroom, with his future on the line,
Stevens, 84, needs jurors to see him a likable, honest man who
believed he was paying every bill for the renovations.
"As a general rule, likability, like credibility, matters when the case is
close," said Saul Kassin, a psychologist at John Jay College of
Criminal Justice and the author of books on courtroom psychology.
It's unclear whether Stevens himself will testify.
Taking the stand would give him the chance to tell his side of the
story: that he asked Allen, a friend, to supervise his home renovation
and he believed Allen was giving him all the bills. If Allen, who has
pleaded guilty to bribing Alaskan politicians, tacked on freebies,
Stevens could say, he didn't know about them.
Testifying would let Stevens show jurors the kind, quirky and even
affectionate side of his personality that his aides and friends say he
displays privately. In one e-mail read to the court Wednesday, Stevens
talks about how much he misses his wife when he's in Alaska and
she's not.
"I'll be glad to have Catherine back here," he said in a September 2000

e-mail. "The cat is starting to talk back to me."
The downside of testifying would subject him to risky cross-

examination by prosecutors who could try to unleash the inner "Hulk"
of a man who has been heard on secretly recorded tapes to be
sometimes profane and always defiant when he thinks he's right.
If convicted, Stevens faces up to five years in prison on each of seven

charges, though under federal sentencing guidelines, he probably
would receive much less prison time, if any. He is hoping jurors will
acquit him in time to return to Alaska and defend his seat in an
aggressive race against Democratic Anchorage Mayor Mark Begich.
Matt Apuzzo reported from Anchorage, Alaska. Associated Press

Writer Tom Hays contributed to this report from Washington.

TheHill.com - Prosecution rests, Stevens’s team... http://thehill.com/leading-the-news/prosecution-... 10/9/2008 15:34
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Home Leading The News Prosecution rests, Stevens’s team readies defense
LEADING THE NEWS
Prosecution rests, Stevens’s team readies defense

By Manu Raju
Posted: 10/09/08 01:34 PM [ET]
Sen. Ted Stevens's defense team is foreshadowing its legal strategy, signaling it wants to call 10
witnesses to vouch for the Alaska Republican's character and a high-profile attorney retained by Sen.
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Larry Craig (R-Idaho) and former NFL star Michael Vick to impugn the credibility of the government’s
star witness.
The Justice Department rested its case Thursday afternoon after it was allowed to call an additional
witness, Dave Anderson, who worked extensively in 2000 and 2001 on the senator’s home remodeling
project that is central to the criminal trial.
The government presented dozens of witnesses, hundreds of exhibits and several taped phone calls to
build their case that Stevens intentionally hid from the public home renovations and gifts worth more
than $250,000. Now the senator’s defense team will try to show him as an honest man devoted to
serving Alaska’s interests for four decades in the Senate. Stevens, 84, has denied seven felony charges
of making false statements, saying he paid every bill he was given.
“The senator’s lived a long life, he’s lived in many communities and there are many communities in
which we’d like to present his reputation for truthfulness,” defense attorney Robert Cary told Judge
Emmet G. Sullivan on Thursday, outside of the presence of the jury.
Cary pledged he would move quickly through those witnesses, but Sullivan suggested that allowing 10
character witnesses to testify is excessive.
“I recognize that character witnesses can be very powerful,” Sullivan said, but he said it was “highly
doubtful” he would allow 10 to testify.
After the judge considers a defense motion for acquittal, the first character witnesses on Thursday will
likely be eight-term Sen. Daniel Inouye (D-Hawaii), Stevens’s closest friend in the upper chamber, and
former Secretary of State Colin Powell.
Also, Stevens’s team wants to call William “Billy” Martin, a Washington-based attorney who has
represented Vick, Craig, the mother of Monica Lewinsky and NBA star Allen Iverson.
Martin would be used by the defense to damage the credibility of Bill Allen, the government’s star
witness, who paid for a bulk of the home renovations at Stevens’s home. The defense wants to show
that Allen testified against Stevens after making an extraordinary arrangement with the government to
sell his oil company, Veco Corp., for a handsome profit.
But Sullivan is not yet sold on whether Martin should be allowed to testify.
“I don’t think you need Billy Martin to come into the courtroom and dazzle the jury about that,” the
judge said.
Even if the judge forces the defense to alter its strategy, Sullivan is prepared to tell the jury that the
government mishandled key evidence prior to the case, a move that could hurt prosecutors’ credibility.
Share this story
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Prosecution rests, Stevens’s team readies defense
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Joint Chiefs chairman: Afghanistan getting worse
Prosecutors win extension in Stevens trial
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FOXNews.com - Reporter's Notebook: Defense... http://www.foxnews.com/printer_friendly_story... 10/9/2008 20:26
Reporter's Notebook: Defense Team's Witnesses Enliven

Stevens Trial
Thursday , October 09, 2008
By Ian McCaleb
In a flash, the trial of Alaska Sen. Ted Stevens went from plodding and tedious to strikingly bizarre.
ADVERTISEMENT
The government's prosecution team wrapped its case against the 84-year-old Stevens earlier on Thursday. And
after a jury-free hearing on an early defense motion for acquittal — which was denied in short order by U.S. District
Judge Emmet Sullivan — Stevens' high-profile and highly compensated defense team took control of the
proceedings, and immediately set about calling its first cluster of witnesses.
That first group consisted of a highly regarded senior U.S. senator, two champion "dog mushers," and an Alaska
musician who goes by the stage name "Hobo Bob."
Hawaii Democratic Sen. Daniel Inouye took the stand first, to be gently led through his testimony by lead defense
attorney Brendan Sullivan. Inouye, a World War II Medal of Honor recipient who first entered the Senate in 1963,
spoke of his long-standing friendship and relationship with Stevens, who first set foot on the floor of Congress' upper
chamber in 1968. The two had too many things in common for them not to have become friends, Inouye said.
Among their mutual concerns and characteristics, Inouye included the fact that the two men were both World War II
veterans, and were coming into the Senate as representatives of the union's two newest states. Alaska and Hawaii
had both been U.S. territories just a few short years before both men attained elective office.
"We were outsiders," Inouye said of his early kinship with Stevens. "I felt it was the natural thing to greet him,"
Inouye said of the day Stevens, a Republican, arrived in Washington.
Their relationship has deepened in the course of the last four decades, Inouye said, adding that the two have traded
chairmanships routinely, depending on which party had majority control of the chamber.
"He's nice to me, and I am nice to him,: Inouye said.
"I can assure you that his word is good as far as I am concerned. It's good enough to take to the bank."
Inouye had to endure a shaky cross examination conducted by young prosecuting attorney Nicholas Marsh, who
attempted to take him in a hypothetical direction that involved questions about learning someone he had just met had
lied under oath. Inouye wanted nothing to do with Marsh's tactic.
"I've never heard of (Stevens) lying under oath," the senator said. "And I have never known him to lie. I don't expect
him to." Inouye then told Marsh and Judge Sullivan, "I am not inclined to answer hypothetical questions."
The awkward moments allowed attorney Brendan Sullivan to swoop back in and ask Inouye about Stevens'
reputation for "truthfulness and integrity," which Inouye firmly described as "absolute."
How worthy of a sled team is a sled dog?
Inouye was brought on by the defense as an opening character witness, but once he had left the stand, the defense
team shifted gears and began to look at the government's accusations against Stevens in detail, starting with the
prosecution's claim that Stevens under-reported the value of a Siberian Husky puppy that had been given to him by
a friend.
In what some Alaska-based members of the media pool described as an Alaskan 'cavalcade of stars,' two champion
"dog mushers," Dean Osmar and David Monson, took the stand to describe the sled-worthiness of the white,
blue-eyed puppy that came to be known as "Keely." ("Dog mushers" are the leaders of sled-dog teams, by the way).
Stevens was at one time in possession of Keely and another sled dog puppy named "Taz." Keely has proved
problematic for Stevens, because the government has alleged Stevens underreported her value on one of his yearly
Senate financial disclosure forms. Keely had been whelped by Osmar, who gave her to another of today's
witnesses, Alaska musician "Hobo Bob" Varsos, who donated her to a yearly fundraiser for the state's Kenai River.
The puppy was purchased at a fundraiser auction by a close friend of Stevens for over $1,000. Stevens claimed her
value as $250 on his disclosure forms, because that is how much he paid for Taz, when he purchased him to keep
Keely company.
Osmar described the dog as being worth only $50-$100 had he sold her himself, and Monson, who took both
puppies off the Stevens hands when they became too uncontrollable for the streets of Washington, D.C., said, "they
weren't very good sled dogs" in his estimation, intimating that in the Alaska market, they weren't very valuable at all.
The government has continued to maintain, however, that Stevens should have claimed the price that was paid for
Keely at auction.
The defense brings several more witnesses to the stand Friday, including its second high-profile character witness,
former Secretary of State Colin Powell.
Prosecution rests
The government prosecution rested its case against Stevens earlier on Thursday after adding a surprise witness to
its appearance roster when court was gaveled into session in the morning.
That witness was former VECO employee Dave Anderson, who has been described throughout the trial thus far as
one of the main foremen on the renovation of Sen. Stevens' Girdwood, Alaska., "chalet." It is that renovation which
has caused Stevens the most grief. The government contends Stevens never paid for — or claimed on his
disclosure forms — the work VECO and its employees did on the house, and has valued VECO's portion of the
project at $188,000.
Anderson is thought to have been the figure inside the now defunct oil services firm who blew the whistle about the
company's work on Stevens' house.
Anderson has been a divisive figure through the entirety of the trial to date. His questioned role in the renovation
nearly ended up being the demise of the government's case, as the prosecution was sanctioned late Wednesday by
federal Judge Sullivan for including as evidence false time logs submitted by Anderson to his bosses at VECO.
Anderson had attempted to claim as work hours some seven weeks he spent away from the job to assist family
members in Oregon.
The judge blasted government prosecutors yesterday for submitting the time logs as evidence, saying they new the
logs "were lies." US v. Stevens News -- Oct 7 to Oct 15 2008 32 of 45
Judge Sullivan instructed the jury later in the day Thursday to disregard the time logs, but the government's sudden
FOXNews.com - Reporter's Notebook: Defense... http://www.foxnews.com/printer_friendly_story... 10/9/2008 20:26
production of Anderson and as a witness in the morning effectively mitigated the effects of those instructions, which
were intended by the judge as a sanction of the government's efforts. Anderson provided thorough and often
entertaining testimony about the extensiveness of the work he performed on Stevens' residence, and the lengthy
amount of time he spent there. He admitted to the seven-week absence on the stand.
The defense team, in another surprise move, opted not to cross-examine Anderson.
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Judge Assails Evidence in Stevens Trial http://www.washingtonpost.com/wp-dyn/content... 10/9/2008 20:28
Judge Assails Evidence in Stevens Trial

Jurors to Be Told to Ignore Two Pieces From Scolded Prosecution
By Del Quentin Wilber
Washington Post Staff Writer
Thursday, October 9, 2008; A02
A federal judge ruled yesterday that he would tell jurors to ignore two pieces of evidence that he said were tainted by government bungling in the trial of Sen. Ted Stevens on
corruption charges.
It was the third time that U.S. District Judge Emmet G. Sullivan has chastised Justice Department prosecutors over their handling of witnesses or evidence in the trial.
Stevens (R-Alaska) is charged with lying on financial disclosure forms to disguise accepting more than $250,000 in gifts and renovations to his house in Girdwood, Alaska.
Prosecutors allege that most of those gifts and renovations were provided by Bill Allen, the former chief executive of Veco, a now-defunct oil services firm that specialized in
maintaining oil rigs.
Sullivan said he would tell jurors to ignore evidence concerning the hours worked by two Veco workers on Stevens's house because prosecutors knew the information "was not
true." One of the employees was in another state when Veco records -- introduced as evidence by prosecutors -- showed him working on the house. Defense lawyers did not learn
that information until they reviewed documents that prosecutors disclosed a few days ago in response to another evidentiary ruling.
"Something smells here," Sullivan said.
The judge said he was also troubled by how prosecutors handled evidence concerning what they have alleged was a sweetheart car swap between Allen and Stevens. In 1999,
Stevens gave Allen his 1960s-era Ford Mustang and $5,000 in cash for a new Land Rover valued at $44,000. Prosecutors did not give defense lawyers a check that Allen used to buy
the Land Rover from the dealership. Defense lawyers questioned Allen and introduced documents that showed the Land Rover was not that expensive. Prosecutors then produced a
check written by Allen for $44,339.
In throwing out the car evidence, Sullivan said prosecutors should have turned the check over to defense lawyers much earlier.
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Prosecutors Change Course in Stevens Trial - W... http://online.wsj.com/article/SB122356659693... 10/9/2008 23:24
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OCTOBER 9, 2008, 5:36 P.M. ET
Prosecutors Change Course in Stevens Trial

By BRENT KENDAL L
WASHINGTON -- Facing sanctions and the loss of two key pieces of evidence,
prosecutors in the corruption trial of Alaska Sen. Ted Stevens changed course
Thursday and attempted to mitigate the damage by calling an unexpected
witness before resting their case.
The prosecution also caught a break when the judge backed away from his plan
to instruct jurors that prosecutors knowingly introduced false evidence.
The controversial evidence will be removed but jurors won't hear the full
explanation for the removal. They will hear only that prosecutors had an
obligation to disclose certain evidence to Sen. Stevens and didn't do so.
The powerful senator is accused of accepting and concealing more than

$250,000 in home renovations and gifts from Veco Corp., and oil-services
company, and its chief executive. Prosecutors are attempting to prove that Sen.
Stevens intentionally hid the alleged gifts on his Senate disclosure forms.
In his latest rebuke to the government, U.S. District Court Judge Emmet G.
Sullivan ruled late Wednesday that he would exclude some evidence because
prosecutors violated their legal duty to disclose information that was favorable to
Sen. Stevens.
Judge Sullivan also said federal prosecutors knowingly presented false business
records about the amount of renovation work that Veco performed on Sen.
Stevens's Alaska home. Those records will be removed and the jury cannot
consider them.
Prosecutors say Veco spent more than $188,000 on renovation labor costs, but
Sen. Stevens says he paid every bill he received for the renovation.
Newly revealed grand jury testimony showed that for several months one of the
key Veco workers, David Anderson, was not in Alaska at all and therefore
couldn't have been working on the renovation, even though he billed his time to
the Sen. Stevens project.
Judge Sullivan blasted prosecutors for not disclosing that information earlier,
and he ruled that all records related to Mr. Anderson's work be taken out of the
case.
To make up for that loss, prosecutors put Mr. Anderson on the witness stand
Thursday. He testified that he spent several weeks, 10 hours a day, working on
the house.
Sen. Stevens's lawyers objected strenuously to Mr. Anderson's testimony, saying

prosecutors were using it as an end-run around Judge Sullivan's sanctions.
"This is an attempt to pretend that a serious constitutional violation never

happened," said lawyer Robert Cary.
The senator's lawyers also expressed frustration because Mr. Anderson's

testimony delayed their plans to call Sen. Stevens's first defense witnesses,
including former Secretary of State Colin Powell and Sen. Daniel Inouye of
Hawaii, a close friend.
Sen. Inouye finally appeared late in the afternoon as a character witness, saying
of Sen. Stevens, "I've never known him to lie."
"I can assure you that his word is good," Sen. Inouye told jurors. "It's good
enough to take to the bank."
Mr. Powell did not appear Thursday.
Separately, Sen. Stevens's lawyers, without the jury present, argued

US v.that the
Stevens News -- Oct 7 to Oct 15 2008 37 of 45
prosecution's evidence was so flimsy that the senator should be given an acquittal
Prosecutors Change Course in Stevens Trial - W... http://online.wsj.com/article/SB122356659693... 10/9/2008 23:24
without having to mount a defense.
Judge Sullivan denied the request.
Write to Brent Kendall at brent.kendall@dowjones.com
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Stevens' Proposed Character Witnesses Heavy ... http://www.cbsnews.com/stories/2008/10/10/po... 10/10/2008 10:43
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GOP Convention (The Politico) Defense attorneys for Sen. Ted Stevens (R-Alaska) have issued a proposed list of For first time, McCain raises
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In-Depth/Photos and Sens. Orrin Hatch (R-Utah) and Ted Kennedy (D-Mass.), longtime Senate colleagues of the
Alaska Republican. Kennedy, who is undergoing treatment for a brain tumor, may be too ill to appear at
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Defense attorneys, however, filed a motion late Thursday night arguing that Stevens should be allowed
to call as many character witnesses as he wants, as long as their testimony is not "cumulative,"
meaning a repeat of what a previous witness said.
Stevens' defense team also plans to calls numerous Alaskans to rebut specific portions of the
government's case against him, including Bob Persons, a neighbor of Stevens from Girdwood, Alaska.
Persons helped oversee renovation of Stevens' home, the cost of which is at the heart of the case
against the senator. The government alleges that Stevens received extensive work on the home
without paying anywhere near the true cost, or reporting the remodeling work as a gift on his annual
disclosure form. Stevens denies the charges.
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OCTOBER 10, 2008, 11:44 A.M. ET
Stevens Seeks Hatch as Character Witness

Associated Press
WASHINGTON -- A list of character witnesses that Sen. Ted Stevens wants to

call to the stand in his corruption trial -- a list that includes Sens. Orrin Hatch
and Edward Kennedy -- must be cut in half, the judge said Friday.
In court papers, the defense had argued it should be able to call as many
witnesses as it wanted to vouch for Sen. Stevens. But before testimony began
Friday, U.S. District Judge Emmet G. Sullivan said the list of 10 names should be
reduced to five.
The defense began its case on Thursday by calling Sen. Daniel Inouye of Hawaii.
Former Secretary of State Colin Powell was also slated to testify Friday on
behalf of the senator from Alaska.
It was unclear when and if Sen. Hatch would testify. Though Sen. Kennedy was
listed, lawyers said the ailing senator would only appear if his health improves.
Sen. Stevens, 84 years old, is accused of lying on Senate forms to conceal more
than $250,000 in renovations on his cabin and other gifts from Bill Allen, the
former chief of the oil services company, VECO Corp.
Sen. Inouye emphatically testified to Sen. Stevens's honesty.
"His reputation for truthfulness and honesty is what, sir?" asked defense
attorney Brendan Sullivan.
"Absolute," Sen. Inouye answered.
Inouye is one of Sen. Stevens's best friends, with the two World War II veterans
calling each other "brother" and the Democratic senator going so far to as to
hold a fund-raising lunch for the Republican senator in Washington in April.
The judge put no restrictions on defense plans to call several other witnesses
from Alaska to try to back up Sen. Stevens's claim that he was too busy in
Washington to pay close attention to the renovation of the home near
Anchorage, which his wife oversaw. His lawyers also say their client assumed
that the $160 000 the paid to another contractor co ered e er thing
http://online.wsj.com/article/SB1223… 1/2
10/10/2008 Stevens Seeks Hatch as Character Wi…
that the $160,000 they paid to another contractor covered everything.
It remained unclear whether Stevens, the plainspoken, longest-serving Senate

Republican and patriarch of Alaska politics for generations, would take the
stand in his own defense. He has languished in the federal courtroom as a
Democratic opponent back home mounts a strong challenge to the seat he's held
for 40 years.
Justice Department lawyers, who rested their case Thursday, relied on

testimony by several VECO workers who, starting in 2000, labored for months
to transform Sen. Stevens's modest A-frame cabin into a two-story home with
wraparound decks, new electricity and plumbing, a sauna and a master-bedroom
balcony.
Prosecutors called as their star witness Mr. Allen, who has pleaded guilty to
bribery in a corruption investigation resulting in convictions of several Alaska
legislators.
A self-made multimillionaire who has known Sen. Stevens for more than two
decades, Mr. Allen testified that the senator came up with the idea for the
renovations to make room for visiting grandchildren. As the work progressed,
Sen. Stevens sometimes asked him for invoices, but Mr. Allen said he ignored
the requests because he liked his old fishing and drinking buddy too much, and
the senator never paid VECO.
If convicted, Sen. Stevens faces up to five years in prison on each of seven

charges, though under federal sentencing guidelines, he probably would receive
much less prison time, if any.
Copyright © 2008 Associated Press
Copyright 2008 Dow Jones & Company, Inc. All Rights Reserved
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http://online.wsj.com/article/SB1223… 2/2
CBSNews.com: Print This Story http://www.cbsnews.com/stories/2008/10/10/na... 10/11/2008 12:20
Colin Powell: Stevens' Word "Sterling"

WASHINGTON, Oct. 10, 2008
(AP) Former Secretary of State Colin Powell on Friday praised Alaska Sen. Ted Stevens' sense of honor at his trial on corruption charges, calling his reputation for honesty and integrity "sterling" in the quarter-century they've known each other.
"As we say in the infantry, this is a guy you take on a long patrol," said the retired four-star Army general and former chairman of the Joint Chiefs of Staff.
Federal prosecutors have accused Stevens of trying to hide more than $250,000 in renovations to his Alaska cabin and other gifts from Bill Allen, former head of the oil services company VECO Corp.
But when defense attorney Brendan Sullivan asked Powell to describe Stevens' reputation for honesty and integrity, Powell's answer was simple: "In a word, sterling."
"There was never any suggestion that he would do anything that was improper," said Powell, who told jurors he knows Stevens "extremely well" after having worked with him on military appropriations issues for decades.
It was not clear whether Stevens, the longest-serving Republican senator and patriarch of Alaska politics for generations, would take the stand in his own defense. But he is calling some of his famous friends to vouch for him in the court case that has put his Senate seat in jeopardy.
He has languished in the federal courtroom as a Democratic opponent back home mounts a strong challenge to the seat he's held for 40 years.
Democratic Sen. Daniel Inouye of Hawaii on Thursday called Stevens' reputation for truthfulness and honesty "absolute." Next week, defense lawyers want to call other senators, including Orrin Hatch, R-Utah, and Edward Kennedy, D-Mass., to continue to testify on Stevens' behalf.
But U.S. District Judge Emmet G. Sullivan has ordered the defense list of character witnesses to be cut from 10 to five. In court papers, lawyers had argued they should have been able to call as many witnesses as they wanted to vouch for Stevens.
It is unclear when and if Hatch would testify. Though Kennedy was listed, lawyers said the ailing senator would appear only if his health improves.
Powell, who shook the senator's hand before the jury entered the courtroom, said he didn't know anything about the charges that Stevens lied on Senate forms to conceal Allen's gifts.
Stevens has always been honest and upfront - "someone whose word you can rely on" - when he worked with him on Capitol Hill, Powell said.
"I had a guy who would tell me when I was off base," Powell said. "I had a guy who would tell me when I had no clothes on." And as people in the courtroom started to chuckle, Powell smiled and added, "Figuratively."
Powell added that Stevens has always put his country first, even when Powell had to go to him to explain that the military needed to draw down some of the forces in Alaska. Stevens didn't like the idea, Powell said, but listened to the arguments and finally agreed to support it for the good of the
country.
"He fights for his state, he fights for his people but he always has the interests of his country at heart," Powell said.
Stevens says he was too busy in Washington to pay close attention to the renovation of the home near Anchorage, which his wife oversaw. His lawyers also say their client assumed that the $160,000 the Stevens' paid to other local contractors covered the work to convert Stevens' modest A-frame
cabin into a two-story home with wraparound decks, new electricity and plumbing, a sauna and a master-bedroom balcony.
Real estate appraiser Gerald B. Randall Jr. estimated in 2000 that the renovated house would be worth $270,000 before the work was done, but never saw the completed chalet or the additions of a steel deck and stairs, a backup power generator or a second-floor escape ladder.
Justice Department lawyers used Allen, a self-made multimillionaire who has known Stevens for more than two decades, as their star witness.
Allen testified that the senator came up with the idea for the renovations to make room for visiting grandchildren. As the work progressed, Stevens sometimes asked him for invoices, but Allen said he ignored the requests because he liked his old fishing and drinking buddy too much, and the senator
never paid VECO.
Some contractors recalled on Friday being promptly paid by the senator or his wife - testimony that Stevens' legal team hopes will undercut the charges against him. Asked if the senator ever ignored a bill, excavation company owner Jean Redmond replied, "No sir. It's always been paid. Always.
Everything."
If convicted, Stevens, 84, faces up to five years in prison on each of seven charges, though under federal sentencing guidelines, he probably would receive much less prison time, if any.
Federal courts are closed on Monday for the Columbus Day holiday.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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By MICHAEL CAREY Accounting/Banking/Finance
COMMENT Internal Auditor
Published: October 8th, 2008 10:42 PM Alutiiq
Last Modified: October 8th, 2008 01:50 AM
Management/Professional
Executive Director
Alaskans are celebrating the 50th anniversary of statehood. enlarge
State of Alaska Dept of Transportation
National Park Service Photograph
How strange the moment in which we honor our founders and
President Dwight D. Eisenhower signs the Alaska Management/Professional
reflect on the past half-century. Staff Environmental Analyst, Anchorage Office
Statehood Bill on July 7, 1958.
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Send link via AIM convicted by juries; Gov. Sarah Palin
Stevens' trial
is the Republican candidate for vice Homes By RE/MAX more
president; and every Alaskan is
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receiving a $3,269 check from the state just for being an Alaskan. Instant Equity!
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assessment. Private lot,
"We're In," the huge headline with which the Anchorage Times almost 3/4 acre!
announced the arrival of statehood in the summer of '58, now means we're indicted, we're in jail, $315,000
we're in the limelight or we're in the money.
I was a 13-year-old boy in Fairbanks, at fewer than 10,000 Alaska's second-largest city, when
Alaska joined the union. The New York Times reported, "Bars threw open their doors here tonight 8 of 8
owners shouting 'drinks are on the house,' " but I have a hard time believing it. Fairbanks bar
owners never gave away anything.
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would have said "No thanks." He opposed Realtor Market Place | Homebook
statehood.
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Fabian found change hard to accept and
rejected the idea of progress. If he had had his Alpine
way, Alaska would have remained as it had South Anchorage: We are
been in 1937 when he arrived a greenhorn minutes away from
employment, banking,
from Minneapolis: An isolated frontier, home shopping, dining and great
to the few hardy souls who, like my Dad, lived entertainment.
in the woods where they trapped, fished or

mined.
8 of 13
"Town," an old-timer told him, " is a place to
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of."
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Fabian also was a political pessimist. When he Top Autos all autos
heard Alaska had oil, he said, "Michael, if you want to see your future go to Oklahoma, Texas, or
Louisiana." By that he meant watch what happens to democracy when oil-rich reactionaries have
unchecked power.
Men like oil-field service company executive Bill Allen, confessed serial briber of Alaska legislators, 2005 Ford F150
who is a star witnesses against Ted Stevens. $19,085
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As a kid, I never met anyone employed by Big Oil. Our neighbors typically were construction
workers, many of whom worked on military projects in the summer. Juneau economist George 4 of 10
Rogers estimates that in the late '50s between 40 and 50 percent of Alaska workers were seasonal.
One-third of all income, Rogers continues, came from military payrolls and civilian defense
employment generated by the Cold War. Search for a New or Used Car | Place an auto ad
Despite my Dad, the '50s were an era of great optimism. "We had been through the Depression, Featured Advertisers all
we had been through the war," George Rogers told me, "and now we were going to do something
special with statehood. We were building a brave new world -- we even used that term. Faith in 6th Avenue Outfitters
statehood was bipartisan too." Retailer for Outdoor apparel and equipment.
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Yet even the most ardent supporters of statehood frequently worried the new state could not
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that provides 100% Blade-Free laser vision
Citizenship meant paying taxes, and in the early '60s the fledgling state struggled financially -- the correction with the IntraLaseTM Method.
struggle reflected in the turnover in the Legislature. Politicians were rewarded for statehood; they
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Today, oil taxes pay for most of state government, and the Alaska Permanent Fund is a $34 billion during their loss of a loved one.
savings account providing a dividend check to every Alaskan every fall. Plus, this year Gov. Palin
and the Legislature gave us a $1,200 energy rebate.
We have no state sales tax, no state income tax.
If Alaskans of the '50s were idealists, it's hard to idealize the '50s. Construction workers made good
money, but poverty was the lot of many Alaskans, especially Alaska Natives. The Alaska Native
Claims Settlement Act of 1971, in which Natives gave up their aboriginal claims in exchange for
land and cash, has created tremendous economic opportunity for Alaska's first peoples.
More generally, the affluence produced by oil is astonishing to the boy whose dad lectured him on
oil's dangers. Gone are the tiny cabins and small frame houses on the dusty streets of my youth.
Some Anchorage and Fairbanks suburbanites have garages almost as big as the house my parents
owned. And four cars to roar down broad highways that once only existed in our imagination.
My mother, Mary Carey, was a public health nurse who, like Sarah Palin, juggled home and office
responsibilities. But my mother, a New Yorker who had been to Yale and Columbia, would never
have voted for her.
My parents were Franklin Roosevelt Democrats; the people we knew were Democrats who elected
Democrats. The first state Legislature was overwhelmingly Democratic: All the statewide office
holders elected in '58 were Democrats.
Today, the Roosevelt Democrats are long gone, replaced by Alaskans who have adopted the
Republican mantra of less government and typically vote Republican.
43 of 45
Alaskans wanted to live on Easy Street and now many of us do. But as we accumulated wealth, we
permitted the oil industry excessive influence over our political and economic life. And we permitted
adn.com | Stevens' trial http://www.adn.com/opinion/v-printer/story/55... 10/11/2008 16:07
Stevens' trial
Prosecution's shabby conduct undermines public confidence
(10/10/08 00:57:58)
Alaskans wanted, and they deserved, a fair and impartial airing of the criminal charges against Sen. Ted Stevens. If the federal government proved, beyond a reasonable doubt, the serious allegations against Alaska's senior senator, even his most ardent
political supporters would have had to accept the conclusions from our system of justice.
On the other hand, were the prosecutors to present their best evidence, clearly and forcefully, and then see the jury acquit the senator, even his most bitter critics would have had to recognize that Sen. Stevens committed no crime.
But the prosecution has done at best an inept job and at worst has tried to cheat its way to a conviction. We may have already reached the point at which, no matter what the jury says, many Alaskans will reject the verdict and continue to argue Stevens' guilt
or innocence.
The judge has repeatedly rebuked the prosecution for improper conduct. As a result, we fear we are watching the legitimacy of the verdict erode, day by day. No matter how the trial turns out, it will be hard for Alaskans to have confidence in the outcome.
If Sen. Stevens is acquitted, his critics will say it was only because the prosecution botched the case. If he is convicted, his defenders will continue to raise legitimate questions about the integrity of the case presented against him.
The prosecution has repeatedly withheld or delayed turning over evidence that it was required to share with Sen. Stevens' defense.
Perhaps the most damning incident involved statements by Bill Allen that undercut the prosecution's case. At some point in the investigation, the Veco boss said he thought Stevens would have paid bills for work on his Girdwood house if Veco had sent them.
That's exactly the claim Sen. Stevens makes in his defense. (Other evidence suggests otherwise, but no one disputes that Stevens' defense team was entitled to the information.)
As the penalty for a different prosecution failure, the judge excluded all evidence relating to a key charge -- that Bill Allen gave Stevens a sweetheart deal on a new Land Rover for the senator's daughter. The prosecution's blundering essentially gives Sen.
Stevens a pass on that allegation.
In another incident, the prosecution presented Veco records it knew to be false. The records showed one Veco employee reported working on Sen. Stevens house, when he was actually in the Lower 48. (The prosecution says the same Veco records omitted
significant amounts of other people's work on Sen. Stevens' house, but the judge was not mollified.)
Earlier in the trial, the prosecution suddenly decided not to call a planned witness and then sent him home without notifying the defense. (They said he was seriously ill, but that didn't justify not communicating with the defense.)
All in all, the prosecution's case has been the courtroom equivalent of a Keystone Cops performance. And on a matter of huge importance to Alaskans, not to mention Sen. Stevens.
Four times Sen. Stevens' lawyers have moved for a mistrial or dismissal of the charges. Four times Judge Emmet Sullivan has refused, keeping the case alive despite the prosecution's shabby conduct.
Declaring a mistrial would indeed be a drastic measure. All the time invested by the current jury and witnesses would be thrown away. A new jury would have to be picked and sit for days listening to a new version of the case. Witnesses would be
inconvenienced again, coming back to repeat their testimony.
A responsible judge looks for sanctions short of a mistrial that will cure any harm inflicted on the defendant.
But allowing the case against Sen. Stevens to continue has already raised the risk that any guilty verdict will be overturned on appeal. It may also have irretrievably undermined public confidence in whatever the jury concludes about Sen. Stevens' guilt or
innocence.
If that turns out to be the case, that will be a great disservice to all Alaskans.
BOTTOM LINE: The prosecution's repeated transgressions raise the risk that any conviction would be overturned on appeal.
Witch hunt?
Not so, says the court
Gov. Sarah Palin and the McCain campaign contended that the Legislature's Troopergate investigation had become a partisan witch hunt that must be stopped. Not so, said the Alaska Supreme Court. It upheld a state judge's ruling that found no reason to stop
the Legislature's investigation.
The lower court judge concluded that "the conduct of Senator French, Senator Elton, and investigator Branchflower do not rise to the level of a violation of the (sic) any individuals' right to fairness."
Alaskans will learn the results of that investigation today. It's not clear how thorough Steven Branchflower's report will be, since Gov. Palin and the McCain campaign resisted cooperating for so long. But at least Alaskans know that neutral observers in the
judicial branch have looked at the process and decided that it was not fundamentally unfair.
Copyright © Sat Oct 11 2008 16:07:03 GMT-0400 (Eastern Daylight Time)1900 The Anchorage Daily News (www.adn.com)

10/12/2008 CBSNews.com: Print This Story
DOJ Seeks Catherine Stevens' E-mails With Ted Stevens,

Bill Allen
Oct 12, 2008
(The Politico) Attorneys for Sen. Ted Stevens (R-Alaska) are seeking to quash a Justice Dept. subpoena demanding e-
mails and other documents from the law firm that employs Catherine Stevens, the senator's wife.
Calling the subpoena "a last-minute fishing expedition" by prosecutors while , Stevens' attorneys are asking Judge
Emmet Sullivan to deny the motion. Prosecutors are asking for e-mails between the senator and Mrs. Stevens, which
defense attorneys said are out-of-bounds under spousal privilege.
"It is a classic fishing expedition akin to a document request in a civil case," Stevens' attorneys wrote in their motion to
quash the subpoena. The motion was filed on Saturday.
Ted Stevens is charged with failing to report more than $250,000 in improper gifts from Allen and others from 1999 to
2006. The heart of the government's case is the renovation of the Stevens' home in Girdwood, Alaska, which took place in
2000 & 2001. VECO employees are alleged to have done more than $180,000 worth of work on the home, none of which
Ted Stevens ever declared on his annual Senate financial disclosure form. Stevens' claims he paid for every bill that he
ever received for home renovation work, amounting to roughly $160,000. Stevens also says Allen directed VECO
employees to do work on the home, without the senator's knowledge.
Prosecutors issued the subpoena on Sept. 15 to Mayer Brown Rowe and Maw, the law firm where Catherine Stevens
works. They are seeking e-mails and other communications from Catherine Stevens to 37 people and companies,
including Bill Allen, former CEO of VECO Corp. Allen, who has already pled guilty bribing Alaska state legislators, is the
government's star witness against Ted Stevens. The subpoena covers the period from Jan. 1,1999, to the present.
Mayer Brown turned over 26,000 pages of documents last year to the Justice Department at investigators' request, but in
response to this subpoena, they sent "several thousand documents" to Stevens' attorneys.
Stevens' defense team initially believed that the Justice Department would not seek to enforce the subpoena, which was
issued just before Stevens' corruption trial began, but prosecutors, via e-mails with Stevens' attorneys, said the expect
the documents to be turned over to prosecutors.
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TheHill.com - Government probes Catherine St... http://thehill.com/index2.php?option=com_cont... 10/12/2008 22:37
LEADING THE NEWS
Government probes Catherine Stevens's records

By Manu Raju
Posted: 10/12/08 02:26 PM [ET]
Federal prosecutors are trying to obtain scores of documents from Sen. Ted Stevens's wife, Catherine, to bolster their case that the Alaska Republican lied about gifts he received from long-time friends.
The Justice Department said the spousal privilege between the senator and his wife does not apply, ordering Catherine Stevens and her Washington law firm, Mayer Brown, to turn over e-mail correspondence with 37 people, including some who arranged elaborate
renovations at the couple’s home in Girdwood, Alaska.
In letters released publicly over the weekend, the government also ordered Catherine Stevens to produce all e-mails between herself and the senator to and from his "senate.gov" e-mail address, as well as documents about their daughter Lily's diamond earrings.
In a Friday night e-mail to David Krakoff, an attorney at Mayer Brown, Edward Sullivan of the Justice Department said "three disks" with relevant documents must be turned over by 6:00 p.m. on Saturday. Otherwise, he warned the government would enforce the
subpoena issued last month.
Stevens's attorneys are pushing back, saying the government ignored their previous attempts to resolve the issue without the intervention of the court. Following the Friday e-mail, Stevens's attorneys filed a motion Saturday asking Judge Emmet G. Sullivan to quash
the subpoenas.
"Especially at this late date with the government's case concluded and the defense case already well underway, the government should not be permitted to engage in a last-minute fishing expedition to obtain broad, new discovery," wrote Joseph M. Terry, one of
Stevens's defense attorneys from the firm Williams & Connolly.
Stevens has pleaded not guilty to seven counts of felony for not reporting more than $250,000 in gifts and home renovations, mainly from his former friend Bill Allen, the former head of the now-defunct Veco oil-services firm. After the government concluded its case
last week, the defense could rest by week's end.
Stevens's lawyers say the senator paid every bill he was given, including $160,000 which he believed was a fair price for renovations that transformed his modest cabin into a home with two decks, new lighting and plumbing, a whirlpool and the addition of a
brand-new ground floor.
Catherine Stevens, a registered Washington lobbyist, was in charge of the remodeling project while the senator was busy with his legislative work, according to defense attorneys.
The Justice Department is seeking documents that may try to rebut that theory, including e-mails with Allen and several people who carried out the renovations. The prosecutors could use the e-mails in cross-examination this week, especially if either the senator or
his wife takes the witness stand.
But in the court filing, defense lawyers say Mayer Brown has already provided the government with 26,000 pages of documents. They say the new request is overly broad and seeks only irrelevant documents.
Also in a filing over the weekend, the government asked the judge to prevent a high-profile attorney, William "Billy" Martin from testifying that Allen seemed to reap a financial windfall for his testimony this month against Stevens. The government argues that
Martin, a criminal defense lawyer who was also retained by Sen. Larry Craig (R-Idaho) and former NFL star Michael Vick, would not be able to provide expert testimony on a financial transaction over the sale of Veco.
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adn.com | Prosecutors want e-mails from Steven... http://www.adn.com/news/alaska/v-printer/stor... 10/12/2008 22:45
Prosecutors want e-mails from Stevens' wife
By ERIKA BOLSTAD
Anchorage Daily News
(10/12/08 14:47:05)
WASHINGTON - Even as Sen. Ted Stevens' corruption trial nears an end, federal prosecutors are still asking for correspondence between the Alaska senator and his wife, Catherine, as well as e-mails she may have sent to 37 people connected to the couple's home
renovation and other gifts the senator may have received.Stevens' legal team filed a motion over the weekend asking that a judge intervene and prohibit the government from subpoenaing thousands of documents from Catherine Stevens' law firm, Mayer Brown.
The prosecutors are looking for conversations between her and anyone with a U.S. Senate e-mail address, as well as documents relating to any thing of value given or provided to Stevens, his wife or his daughter, Lily. That includes "any documents relating to diamond
earrings," according to the motion.
But Stevens' legal team is reluctant to turn them over, accusing prosecutors of going on a fishing expedition and saying in their motion that a "more oppressive, non-specific subpoena could hardly be imagined."
The 84-year-old senator is on trial for allegedly lying on the Senate financial disclosure forms he's required to file each year. He's charged with accepting gifts and home renovations worth more than $250,000, chiefly from Veco Corp. and its former chief executive, Bill
Allen, who was the star witness for the prosecution.
The renovations in 2000 and 2001 doubled the size of the Stevens' home in Girdwood, transforming it from a small A-frame cabin into a two-story retreat with multiple decks, a Jacuzzi tub and a Viking outdoor grill. Prosecutors have been laying out a case that much of
the work, including the decks as well as plumbing and a complete electrical overhaul, was paid for by Veco.
Stevens' trial, which will begin its fourth week on Monday, is in the midst of the defense phase.
Prosecutors rested their case last week and his defense team began building a case that the senator was unaware that the renovations in question may have exceeded what he spent on them, an estimated $160,000. Several character witnesses, including former Secretary
of State Colin Powell, have also testified on Stevens' behalf.
Stevens' attorneys asked to quash the subpoena over the weekend after one of the prosecutors, Edward Sullivan, sent an e-mail asking for the documents the government had requested.
According to the filing, last year, prosecutors asked for and received more than 26,000 pages of documents from Catherine Stevens' law firm. But the law firm didn't turn over communications between Catherine Stevens and her husband because "communications
between a husband and a wife are protected by the spousal privilege," according to the filing.
Prosecutors asked for the documents again on Sept. 15, just a week before jury selection began in the case.
The law firm did a search and handed over three discs containing thousands of e-mails to Stevens' defense team in early October, according to the filing. They reviewed them in search of privileged conversations between husband and wife and found none, but also found
"no relevant ones," wrote one of Stevens' lawyers, Joseph Terry. The first 100 e-mails are about nothing more than "the recent death of Mrs. Stevens's mother; Lily Stevens's wedding; and grave illnesses of personal friends."
Prosecutors on Friday night asked again for the e-mails, prompting Stevens lawyers to file a motion asking the judge to keep them from getting them.
The trial, on break Monday for the Columbus Day holiday, is scheduled to resume Tuesday morning.
Copyright © Sun Oct 12 2008 22:44:57 GMT-0400 (Eastern Daylight Time)1900 The Anchorage Daily News (www.adn.com)

Senator's wife set to testify in corruption trial -... http://cnn.site.printthis.clickability.com/pt/cpt?a... 10/14/2008 12:59
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Senator's wife set to testify in corruption trial

Story Highlights
Sen. Ted Stevens accused of not disclosing cost of home renovations
Defense has portrayed senator's wife as being lead person on home renovations
Character witnesses have taken the stand in trial's defense phase
From Paul Courson

CNN
WASHINGTON (CNN) -- Defense attorneys for embattled Republican Sen. Ted Stevens of Alaska plan to call his wife to the witness stand Tuesday when his trial resumes on charges he failed to report hundreds of thousands of dollars in gifts on mandatory Senate financial disclosure forms.
Catherine Stevens is an attorney and has been portrayed by the defense as the person most responsible for keeping track of renovations to the couple's chalet, located a block from an Alaskan ski slope in the town of Girdwood, southeast of Anchorage.
The renovations were provided by the Stevens' longtime friend, Bill Allen, founder of Veco Corp., one of the largest private employers in Alaska. The oil industry contractor has since been purchased by a Denver company, and Allen is awaiting sentencing after pleading guilty to bribing Alaska state
lawmakers, one of whom is the senator's son.
Stevens, 84, is running for re-election and hopes to clear his name in the few weeks remaining before voters cast their ballots.
Those who worked on the chalet have testified that Catherine Stevens made suggestions about the renovations, signed some of the checks and was occasionally at the home while the construction was under way about six years ago.
Stevens was indicted in July on seven counts of making false statements in failing to report the monetary benefits of his relationship with Allen, who acknowledged on the witness stand he did not send an invoice to Stevens for some of the goods and services that went into the house.
The defense team strategy is to try to convince the jury that Stevens was unaware that he may not have paid the entire cost of renovations, and would have done so if Allen had sent him a complete bill.
His wife's role in the project is another aspect that the defense hopes may shift some of the burden away from the senator. Evidence is expected to include e-mails between her and a neighbor in Alaska in which they discussed construction progress.
The name of the neighbor, Bob Persons, is also on Tuesday's witness list.
Several character witnesses testified after the trial moved to the defense phase. Former Secretary of State Colin Powell testified last week as to the integrity and honesty of Stevens, who has served as Alaska senator since 1968.
Democratic Senate colleague Daniel Inouye of Hawaii testified last week, and Republican Sen. Orrin Hatch of Utah could testify Tuesday. The trial was in recess Monday because of the federal holiday.
Prosecutors hope jurors will be persuaded by recordings of wiretapped phone calls between Allen and Stevens, and between Allen and the neighbor, which have included conversations questioning how to document the bills to satisfy the Senate reporting requirements.
All AboutTed Stevens • Alaska
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