Wednesday Morning (10/1/08):

Note:  The afternoon testimony was cancelled due to a problem with a juror.  Allen will be back on the stand in the morning.

Today was the second day of testimony by former Veco CEO Bill Allen, a key prosecution witness in the trial against Sen. Ted Stevens (R-AK). It was Veco, at the direction of Allen, that did much of the work on Stevens’ Girdwood home and lies at the heart of the prosectuions case against the Senator. 

There was certinly some interesting testimony about what Allen did for Stevens in relation to his house in Girdwood and what Veco asked for from Stevens.

Allen first learned of Stevens’ desire to renovate his cabin in 1999.  Stevens told him he wanted to better accommodate his growing family when they visited, and planned to jack up the existing house and add a simple first floor with bunks. Allen volunteered to help with the project because Veco had a jacking system he thought would be helpful.  Soon, however, Stevens dramatically expanded the scope of the project, which Allen said was at Catherine’s insistence. She wanted a more extensive rebuild, which required bringing in an architect (John Hess) to draw up plans. Allen testified that Stevens told him he was going to have to pay for the renovations, but (incorrectly) stated that that Stevens never asked for a bill, as later notes and emails between the two indicate. 

Allen testified in some detail about the work done to Stevens’ home over the years, from the major renovation to the first-floor deck and smaller maintenance projects that Veco later did for the Senator.  He clearly had an intimate knowledge of and helped direct the completion of these projects.

At the center of this case is whether Stevens paid for all he received from Veco; if he did not, he improperly filed his disclosure documents because these “items of value” were not disclosed therein.  In one email from Stevens to Allen on September 24, 2000, Stevens indicates that he and Catherine had received an appraisal for a mortgage to pay for the work, and this is likely to be at the center of the defense; that Stevens paid for all the work he thought he needed to, and that any additional work was either at the direction of Allen or that Stevens requested invoices but never received them.

To this end, there were several letters and emails between the two in which Stevens asks Allen to send him an invoice for some of the work. In one note from Stevens to Allen, dated October 6, 2002, Stevens asks for a bill, stating “remember Toricelli my friend,” a reference to former Sen. Robert Torricelli (D-NJ) who dropped his re-election bid when evidence of fundraising improprieties arose, and “friendship is one thing, compliance with their ethics rules entirely different.” Allen, however, testified that he had a follow up conversation with Bob Persons who told him not to worry about sending Stevens a bill.  Allen testified that Persons told him, “Ted’s just trying to cover his ass.”

A month later, on November 8, 2002, Ted again sent a note in which he thanks Allen for the Christmas lights, and asks for a bill for the work. Allen indicated he thought the conversation with Persons indicated he shouldn’t send the Senator a bill. 

Question: Did you want to send Senator Stevens a bill?
Answer: I really didn’t want to

Question: Why?
Answer: I wanted to help Ted.

Question: Why?
Answer: Because I like him.

Allen also spent a good deal of time discussing what he and Veco had asked for from Stevens. That is detailed in an earlier post.

The rest of the morning’s questioning Allen’s own improprieties, including a Veco program to reimburse company executives for contributions to political candidates and his bribery of Alaska State Legislators—including Ben Stevens, Ted Stevens’ son—in connection with the natural gas pipeline project he supported.