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Veco CEO testifies

Erika Bolstad and Richard Mauer

Issue date: 10/2/08 Section: Nation & World News
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WASHINGTON - The relationship between Sen. Ted Stevens, R-Alaska, and the chief of one of Alaska's largest private employers was symbiotic and relatively uncomplicated, federal prosecutors continued to demonstrate Wednesday.

When Stevens needed help around the house, he could rely on his friend, Bill Allen, CEO of the oil services company Veco Corp. When Allen needed federal help for his company, he contacted Stevens - at the time one of the most powerful men in the U.S. Senate.

Taking the stand for a second day, Allen testified about gifts and assistance with home renovations he had offered his longtime friend in recent years.

Allen, the star witness in the corruption case against Stevens, was asked time and time again: Did Stevens pay for any of the work done by Veco? Did Stevens pay for the electrical work, the plumbing? Did he pay to move the generator? Did he pay for the lower level deck? How about the electrical tape system that melted ice off the roof?

"Who did that work?" prosecutor Joe Bottini asked. "Who paid for the materials?"

"Veco," Allen said.

Bottini asked whether Stevens ever sought a bill for the work that had been done in 2002.

"I don't think so," he said slowly.

Stevens, 84, faces seven felony counts of making false statements on his Senate financial disclosure forms. He is accused of hiding more than $250,000 of gifts from Allen and others, chiefly home improvements.

Testimony will continue Thursday, with prosecutors playing secretly recorded telephone conversations between Allen and Stevens. Allen pleaded guilty in 2007 to bribing state lawmakers in Alaska. He told jurors that he agreed to cooperate with the investigation in exchange for leniency in his own sentencing and the promise that his children wouldn't be prosecuted.

Wednesday, prosecutors also had Allen detail some of the assistance Stevens had given Veco over the years.

Before they began, jurors were warned that Stevens is accused of making false statements on disclosure forms and not charged with anything connected to official acts as a senator. However, those acts - such as corresponding with constituents - may be considered as motive or intent for the crimes in the indictment, U.S. District Judge Emmet Sullivan said.

In 1999, Allen testified Veco was not getting its share of a dividend on a pipeline investment in Pakistan and needed help. Allen asked Stevens to make some inquiries with the World Bank, which also had some interest in the project.

Stevens faxed Allen a note on Sept. 20, 1999, attaching the letter he had sent to the bank's president, Jim Wolfensohn: "I've just sent this letter to the World Bank. We'll keep you informed."
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