Ted Stevens indicted on 7 counts

July 29, 2008

Sen. Ted Stevens (Courtesy photo)

by Jason Moore
Tuesday, July 29, 2008

ANCHORAGE, Alaska -- A federal grand jury in Washington, D.C., indicted Sen. Ted Stevens on seven felony counts Tuesday.

The charges allege that Stevens accepted more than $250,000 in gifts from VECO Corp. and its CEO Bill Allen and deliberately failed to report those gifts on disclosure statements.

"Earlier today, a federal grand jury here in the District of Columbia returned an indictment charging United States Sen. Ted Stevens of Alaska with seven felony counts of making false statements," said Matthew Friedrich, acting assistant attorney general, announcing the indictments Tuesday.

Most of the gifts concerned the renovation of Stevens' Girdwood home, where the FBI served a search warrant one year ago.

Prosecutors say VECO employees did most of the work, and Allen paid most of the bills.

"These items were not disclosed on Sen. Stevens' financial disclosure forms, which he filed under penalties of perjury, either as gifts or as liabilities," Friedrich said. "And further, that Sen. Stevens did not reimburse or repay VECO or its chief executive officer for these items."

In the past, Stevens said he paid the bill he received for the project. According to the Seattle Times, Stevens says he spent $130,000 on the renovation.

The indictment claims Stevens received more than $250,000 from VECO and Allen.

Reaction to the charges against the longest serving Republican in the U.S. Senate spanned the country.

"I've known Ted Stevens for 28 years, and I've always found him to be impeccably honest," said Sen. Arlen Specter, R-Pennsylvania. "I don't know that anything, that any stronger comment could be made, and that's my comment."

Gov. Sarah Palin weighed in.

"The news today rocks the foundation of our state, and I certainly share Alaskans concern and dismay over the turn of events today," Palin said.

Sen. Stevens Tuesday released a statement.

"It saddens me to learn that these charges have been brought against me," Stevens said. "I have never knowingly submitted a false disclosure form required by law as a U.S. Senator."

"The impact of these charges on my family disturbs me greatly," Stevens said. "I am innocent of these charges and intend to prove that."

"I talked to the senator personally," said Aaron Saunders, Stevens campaign spokesman. "He was upbeat, and the senator's been fighting for Alaska for a long time and this is another fight and he's going to keep at it."

It was eerily quiet at the senator's campaign office Tuesday. One supporter strolled in to write him a note, summing up the feeling of many.

"I was shocked by it," said John Strachan. "It's a great surprise to me. I was here for the earthquake, and I'm here for Ted's indictment, and of the two I'd rather see an earthquake. This is a disaster."

While prosecutors say Stevens did certain actions to help VECO during the time he was receiving the gifts, the indictment does not allege bribery, which would require prosecutors to prove a formal agreement that Stevens would make official acts in exchange for benefits.

Since the federal corruption investigation began in Alaska, there have been seven convictions, including three lawmakers, former Gov. Frank Murkowski's chief of staff, a lobbyist, and two VECO executives.

Prosecutors say Bill Allen is cooperating with the Justice Department in this case.

Contact Jason Moore at jmoore@ktuu.com

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