GOP Senator accused of making false statements

WASHINGTON (AP) - July 29, 2008 The first sitting U.S. senator to face federal indictment since 1993, Stevens has been dogged by an investigation into his home renovation project in Alaska and his dealings with wealthy oil contractors.

The probe has upended Alaska state politics and brought negative attention to Stevens - who is running for re-election this year - and to his congressional colleague, Rep. Don Young, who also is under investigation.

Stevens' indictment further damages Republican prospects in the November elections as Senate Democrats, who now enjoy a 51-49 majority, try to capture a filibuster-proof 60-vote majority.

Prosecutors said Stevens received more than $250,000 in gifts and services from VECO Corp., a powerful oil services contractor, and its executives. From May 1999 to August 2007, prosecutors said, the 84-year-old senator concealed "his continuing receipt of hundreds of thousands of dollars worth of things of value from a private corporation."

The indictment unsealed Tuesday says the items included home improvements to his vacation home in Alaska, including a new first floor, garage, wraparound deck, plumbing and electrical wiring, as well as a Viking gas grill, furniture and tools. He also was accused of failing to report swapping an old Ford for a new Land Rover to be driven by one of his children.

The Justice Department said Stevens would not be arrested and would be allowed to turn himself in.

Stevens has adamantly denied any wrongdoing but has said little else publicly about the investigation. Messages left at both his Senate office in Washington and his campaign office in Anchorage were not immediately returned on Tuesday. His attorney also did not return calls.

Stevens has coasted to re-election six times in Alaska, but he is in what has been viewed as the toughest race of his career this year against Anchorage Mayor Mark Begich.

The indictment tarnishes one of the most powerful and savvy of the GOP lions in the Senate a year after another Republican senator, Larry Craig of Idaho, pleaded guilty to charges arising out of a Minneapolis airport men's room sex sting.

Stevens wielded power from his position as chairman of the Appropriations Committee from 1997 to 2005, except for 18 months when Democrats controlled the Senate. His longevity also means that if Republicans took over the Senate, he would be president pro tempore, a mostly symbolic title but one that would make him third in line for the presidency after the vice president and speaker of the House.

Under Senate rules, Tuesday's indictment will require Stevens to give up his post as senior Republican on the Appropriations Committee.

Young, who is under scrutiny for his fundraising practices involving VECO, said Tuesday, "I hope people will not rush to judgment and will let the judicial process work. The process is based on being innocent until proven guilty."

He called Stevens "one of the most effective and honest legislators I have ever worked with."

Democratic leader Harry Reid of Nevada said, "I have served with Sen. Stevens my entire congressional career. It's a sad day for him, us, but you know I believe in the American system of justice and he's presumed innocent."

Among other colleagues, John Warner, R-Va., called Stevens a hero, adding, however, he didn't know details about the indictment. "All of us have times that we have to deal with that are tough," Warner said. "I wish him the best."

Sen. Arlen Specter, R-Pa., said, "I've known Ted Stevens for 28 years, and have always known him to be impeccably honest."

Prosecutors, however, said Stevens "took multiple steps to continue" receiving things from oil services company VECO Corp. and its founder, Bill Allen. At the time, the indictment says, Allen and other VECO employees were soliciting Stevens for "multiple official actions ... knowing that Stevens could and did use his official position and his office on behalf of VECO during that same time period."

VECO's requests included funding and other aid for the oil services company's projects and partnerships in Pakistan and Russia. They also included federal grants from several agencies as well as help in building a national gas pipeline in Alaska's North Slope Region, according to the indictment filed in U.S. District Court in Washington.

A moderate Republican, Stevens has served almost 40 years in the Senate, where he unabashedly steered money to his remote and sparsely populated home state. He often drew criticism from outside Alaska for going around the traditional appropriations process to fund projects.

The Justice Department has closely followed that money, looking for where it intersects with the senator's son, Ben.

A lobbyist and former state senator, Ben Stevens was paid as a consultant for many in the fishing industry who benefited from legislation his father drafted. When Ted Stevens created a $30 million marketing fund for Alaska seafood, Ben Stevens helped decide which companies got the money. Some were his clients.

Ben Stevens also had financial ties to a company that stood to make millions off a piece of federal legislation his father wrote. But he repeatedly has said he never lobbied his father.

Politics had nothing to do with the indictment of Stevens, himself a former federal prosecutor in Alaska, said Matthew Friedrich, chief of the Justice Department's criminal division. "We bring cases based on our evaluation of the facts and the law," Friedrich said at a news conference announcing the indictments. "We bring cases when they are ready to be charged, and that's what happened here."

In other cases involving indictments of senators:

- On April 2, 1993, Republican Sen. David Durenburger of Minnesota was indicted by a federal grand jury in Washington on charges of conspiring to file fraudulent claims for Senate reimbursement of $3,825 in lodging expenses during 1987 and 1988. The indictment was later dismissed. After new charges were filed, Durenberger pleaded guilty to misdemeanor charges of converting public funds to his personal use. He was sentenced to one year of probation and a $1,000 fine.

- Republican Sen. Kay Bailey Hutchison of Texas was indicted by a state grand jury on Sept. 27, 1993, in Austin, Texas. She was charged with official misconduct and tampering with evidence to impede an investigation. On Feb. 11, 1994, a judge ordered her acquittal after the district attorney refused to present his case.