TPM Muckraker captured some great audio of Sen. Ted Stevens lashing out at constituents asking questions about his current legal predicament. To me, the last question was by far the most interesting. There’s a transcript of the last Q&A after the video.

Q: I’ve been following the news lately and they were mentioning that you supported an ethics bill in 1989 that Congress had passed, it was an amended ethics and government bill that said that members of Congress needed to disclose their financial reports, anything exceeding $200, and now your defense team is saying that’s unconstitutional, and I’m just wondering if you can talk to us Alaskans about how that’s unconstitutional in 2008 but in 1989 that was satisfactory.
A: As I’ve said before, I haven’t seen that pleading, it was filed by my lawyers in Washington, they’ve been hired to do it-
Q: OK well why don’t you give us your opinion, aside from what your lawyers are saying-
A: I’m sorry I’m not going to give my opinion about what my lawyers have done that I haven’t read. So thank you very much, I don’t know who gave you that amendment, that question, but whoever gave you that question ask them.

That’s a pretty good question. From what I can tell, the Government Ethics Reform Act of 1989 passed the Senate by voice vote with an amendment attached. Also interesting, Sen. Stevens was an original cosponsor of the Ethics in Government Act of 1977, the law under which he is being prosecuted.

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Sen. Ted Stevens has served as senator from Alaska for most of his life and nearly all of the state’s existence. Stevens greatest accomplishments have been as a patronage chief; bringing home federal dollars for Alaska and protecting and expanding the extraction industries in the state, particularly the oil industry. In many ways, Stevens is Alaska. It comes as no surprise that Stevens would run his current reelection campaign on a message that says, “Without Ted, we’re toast.”

As some have noted already, Stevens - a “patronage-distributing warlord” - may be a dying breed of politician. There are others who still exclusively practice this kind of politics, most notably Alaska’s lone representative Don Young, but few to the degree that Stevens has over the years. Stevens’ undying support for earmarking and the oil industry may have brought on investigative scrutiny and, ultimately, an indictment. But they also appear to have muddled the water in the investigation, prompting prosecutors to charge Stevens with seemingly lesser felonies - for now. (more…)

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Michael Stern at Point of Order, one of the better blogs for legal issues in Congress, covers the legal background of the charges brought against Sen. Ted Stevens. Stevens is facing seven felony charges for deliberately filing false financial disclosure forms to the Senate Ethics Committee. Give Stern’s explanation a read; it’ll be worth it when following the Stevens trial. Steven’s trial starts on September 24.

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So, the indictment is in and the charges against Sen. Ted Stevens include seven counts of making false statements on his personal financial disclosure forms from 1999-2006. Many of these false statement counts revolve around work done on Stevens’ Girdwood, AK home courtesy of the VECO oil company. Sunlight’s Bill Allison makes the case at Real Time Investigations that if the money spent on equipment, parts, and labor did not constitute a gift, but rather a loan, then Stevens would be allowed to omit them from his disclosure forms, thereby acquitting him of several false statement charges:

[F]rom my quick read of the indictment, it appears that the government is suggesting that when Stevens says he has no liabilities of more than $10,000, that means the hundreds of thousands of dollars Stevens is alleged to have received as benefits from VECO couldn’t possibly have been loans. But if (and for the record, I doubt this is likely), if Stevens was borrowing money, labor and materials to renovate a residence from VECO rather than accepting it as a gift, I’m not sure Stevens would have to report it under current personal financial disclosure rules, which say,

property which is held or maintained solely for recreational or personal purposes does not have to be reported…. (p. 131)

and

Mortgages secured by a personal residence (including secondary residences) that are not used for rental purposes do not have to be disclosed. (p. 136)

Suppose there was some understanding Stevens would repay Veco or its CEO, Bill Allen, for the home repairs, the car swap, the furniture and so on — shouldn’t the public know of those potential conflicts of interest? The indictment reminds us,

The primary purpose of the yearly Financial Disclosure Forms is to disclose, monitor and deter conflicts of interest, thereby maintaining public confidence in the integrity of the United States Senate and its Members. Because the yearly Financial Disclosure Forms require public disclosure of financial information by each Member of the United States Senate, such as income, assets, gifts, financial interests, and liabilities, the Forms provide the public at large, including the voters of a particular state, with the information necessary to allow the public to evaluate and consider official conduct by a Member of the United States Senate in light of that Member’s private finances.

Do the current disclosure requirements adequately “deter conflicts of interest, thereby maintaining public confidence in the integrity of the United States Senate and its Members,” if they exempt personal residences, mortgages, car loans and so on from public view?

(more…)

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It’s not an investigation, it’s a series of charges. Huge story. Longest serving Republican senator Ted Stevens indicted on seven counts. More soon.

Seven counts of making false statements.

PDF of Stevens Indictment.

Lying on his personal financial disclosure forms.

Accepted gifts and labor from VECO in the renovation of his Girdwood, Alaska home and lied about it on his personal financial disclosure forms from 1999-2006.

A key paragraph in the indictment is paragraph 17. It appears to allege a quid pro quo in the exchange of gifts, for which he is being charged for lying about. The DOJ is saying that there is no allegation of quid pro quo in the indictment.

17. It was a part of the scheme that STEVENS, while during that same time period that he was concealing his continuing receipt of things of value from ALLEN and VECO from 1999 to 2006, received and accepted solicitations for multiple official actions from ALLEN and other VECO employees, and knowing that STEVENS could and did use his official position and his office on behalf of VECO during that same time period. These solicitations for official action, some of which were made directly to STEVENS, included the following topics: (a) funding requests and other assistance with certain international VECO projects and partnerships, including those in Pakistan and Russia; (b) requests for multiple federal grants and contracts to benefit VECO, its subsidiaries, and its business partners, including grants from the National Science Foundation to a VECO subsidiary; and (c) assistance on both federal and state issues in connection with the effort to construct a natural gas pipeline from Alaska’s North Slope Region.

For some background watch this video from Josh Marshall and TPMtv (only the first half matters, the rest has to do with Larry Craig):

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From Jacob Wiens at POGO:

This week, the state of Alaska launched a website that tracks every state expenditure of over one thousand dollars, as reported on today’s NPR Morning Edition. This makes Alaska the tenth state government to provide such a service to its taxpayers. On a side note, Alaska also has the lowest individual tax burden of any state in the U.S.

Alaska calls its website "Checkbook Online." According to the state, this service "…is part of a national trend for governments to develop websites that allow constituents to view financial information in searchable formats. Such websites are widely considered to improve transparency into the financial operations of government."

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Last Friday, PBS’ NOW with David Brancaccio covered the VECO Alaska oil corruption scandal. If you’re new to the scandal that has enveloped these non-continental politicians and is creeping up on Sen. Ted Stevens and Rep. Don Young this video is the place to start. Below is a 6 minute clip from the full video. Watch the full video here.

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Former VECO CEO Bill Allen was on the stand today in the trial of Alaska state Rep. Vic Kohring and testified that his own cousin attempted to blackmail him over VECO’s work on Sen. Ted Stevens’ Girdwood, Alaska home. The Alaska Daily News is covering the trial:

Kohring Lawyer John Henry Browne asked Veco founder Bill Allen about something that came up at the corruption trial last month of former state Rep. Pete Kott. It was regarding Allen’s nephew, Dave Anderson.

Anderson was blackmailing you and you threatened to kill him? Browne asked.

“I was not going to kill him, no,” Allen responded

But that’s the information the government had, wasn’t it? Browne asked.

Allen went back to a point he made a number of times during cross examination.

That’s just part of the story, Allen said. “You have to do the whole thing.”

Anyway, what was Anderson blackmailing him about? Browne asked.

“Ted Stevens’ house,” Allen anwered.

He was referring to a 2000 renovation that doubled the size of Stevens’ home in Girdwood. Allen testitied in the Kott trial that Veco employees worked on the renovation and he donated some materials.

Veco paid for that, correct? Browne asked Allen.

Allen said he didn’t know how much.

Browne asked him if part of his cooperation deal with the government was to help investigate Stevens and the money Veco gave for the Girdwood house?

Yes, Allen answered.

The case against Stevens continues to pile up in court records but he still sits on powerful committees with the full backing of his peers. Perhaps if he were to make a pit stop at the Minneapolis airport bathroom his stature in the Senate might change. For now though, a growing case of public corruption can be ignored.

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Keeping track of congressional information starts at the local level, and blogs do a great job of informing people about what is happening in their own backyard. I have been reading local blogs for quite a while and have been very impressed with the coverage on local ethics issues and congressional information. So I would like to highlight every week some blogs that do a great job covering issues that deal with transparency, ethics, and corruption.

In Alabama, Flashpoint describes a recent earmark that funded buying 20,000 smoke detectors for residents in Madison County, and questions its necessity.

Arizona’s Espresso Pundit and BlogforArizona.com both agree that the best way to make public announcements from government agencies is not through a newspaper but that Arizona should put them online on a searchable government Web site.

Georgia Porkbusters gave a rundown of who in the Georgia delegation requested earmarks in the upcoming defense appropriations package.

South Carolina has a new government watchdog blog, the Palmetto Truth Squad. Their goal is to find “verifiable examples of waste, mismanagement and fraud in South Carolina state and local government.”

New York Rochester Turning is reporting that the New York State Ethics Commission recently released an advisory opinion on the use of state aircraft for political purposes.

In Alaska, Sen. Ted Stevens has taken up quite a bit of blog space recently. The Anchorage Daily News takes some space to talk about the earmark controversies surrounding Alaska’s congressional delegation. Here Sen. Stevens did an interview with the Daily News editorial board. If you go to the bottom you can see his, rather interesting, response when questioned about his legal controversies.

These are just some highlights of what is going on at the state level. Please feel free to contact me (at nthompson at sunlightfoundation dot com) if you have any tips on what is going on locally. I am specifically in search of more local political news blogs in Alaska, so if anyone knows of any, please let me know.

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Writing in Roll Call, John Stanton reports that staffers of the two Senators and a relative of the lone House member from Alaska’s congressional delegation own land in the undeveloped area that, should the Knik Arm “bridge to nowhere” be built, would be poised to become a prime suburb of Anchorage. (The link is subscription only, but TPM Muckraker has some quotes.) Over at RealTime, my colleague Anupama Narayanswamy has an interview with Andrew Halcro, a former Alaskan state representative, a 2006 gubernatorial candidate, and a pretty good blogger. Halcro talked about his experiences with the now former chairman and CEO of the oil services firm Veco Corp., Bill Allen, who along with another company official recently pled guilty to charges of bribing four Alaska state lawmakers.

I mention the two together because, while there’s no suburb in Mat-Su Borough (which the Knik Arm “bridge to nowhere” would link to Anchorage), there is a facility, known as Port MacKenzie, now operating as a deepwater harbor. Among the firms operating there is Veco Corp., and if you read the project descriptions for Port MacKenzie (and also for the Knik Arm Bridge and Toll Authority (KABATA), you’ll find that the justification given for the bridge is not residential real estate speculation, but rather industrial opportunities:

Port MacKenzie is the logical area for commercial and industrial expansion adjacent to Anchorage.

Port MacKenzie is the only Southcentral port site not constrained by urbanization. The 14 square miles of uplands are dedicated solely for commercial/industrial development.

The Knik Arm bridge proposal has been around for quite a while — for over 50 years, according to KABATA. There are several groups that have to agree on the project–Congress, the state legislature and governor, local authorities, the business community and of course the citizens of Alaska as well. It seems to me that the interplay among these different groups in advancing the development of Port MacKenzie and perhaps even the construction of Knik Arm bridge are worth exploring more closely, something we’ll try to do in more depth over at RealTime.

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