Oil Companies Buy Alaska Pols

[yankeetripper]

Who would have guess? I'm shocked, shocked I tell you.

Oil Executives Plead
Guilty in Bribery Case
By JIM CARLTON
May 8, 2007; Page A9

VECO Corp.'s chairman and chief executive officer, as well as one of his top lieutenants, pleaded guilty to providing more than $400,000 in illegal payments to five Alaskan state legislators and other officials in the state in return for their political support, in a fall from grace for one of the most influential players in the Alaskan oil industry.

VECO Chairman and CEO Bill Allen and Rick Smith, vice president of community and government affairs, appeared in U.S. District Court in Anchorage yesterday to enter the guilty pleas to three counts each, including extortion, bribery and conspiracy to defraud the Internal Revenue Service. Both men face maximum penalties of 20 years in prison and fines of $750,000 each. Mr. Allen is 69 years old.

MORE ON VECO


• VECO Executives Draw Deeper Scrutiny
05/07/07

• In Alaska, an Oil Player Loses Favor
02/26/07

• FBI Raids Alaska State Offices
09/02/06

The pleas come four days after three current and former Alaskan state legislators were arrested and released on federal charges of taking bribes from two unidentified executives working for the oil-field services provider in exchange for their favorable treatment of an oil tax supported by VECO and the oil industry. Anchorage-based VECO later said Messrs. Allen and Smith were involved.

An attorney for Mr. Allen said he declined to comment; Mr. Smith couldn't be reached. While they were still employed at VECO yesterday, "the company is moving forward to take all appropriate steps in response to today's events," said Amy Menard, attorney for VECO.

The pleas are the latest chapter in a probe that has shaken up Alaskan politics and big oil. VECO came under scrutiny eight months ago when federal agents raided offices of six legislators in a probe of alleged influence peddling in the state. The company had long been one of Alaska's most prodigious campaign contributors, with Mr. Allen and top executives having given more than $1 million to state campaigns since 1998. The Alaska probe is part of a broader federal crackdown on public corruption.

"Today's guilty pleas highlight the FBI's continued efforts to ... root out the source of public corruption," Kenneth Kaiser, assistant director of the Federal Bureau of Investigation's criminal investigative division, said in a statement.

Justice Department officials declined to say whether more charges were expected in the probe. All three state legislators who were arrested last week -- former state House Speaker Peter Kott, former Rep. Bruce Weyhrauch, and current Rep. Victor Kohring -- all entered pleas of not guilty. Messrs. Allen and Smith admitted to bribery and other acts of coercion involving the three state representatives, as well as with two state senators not named by officials and "other" state officials also not named.

But since federal officials say their probe is continuing, more indictments are considered likely.

Among those lawmakers whose offices were raided by federal officials eight months ago was then-Senate President Ben Stevens. Mr. Stevens, who didn't seek re-election in November, hasn't been charged with wrongdoing and couldn't be reached. He is the son of veteran Sen. Ted Stevens.

Write to Jim Carlton at jim.carlton@wsj.com

[Standtall]

I think those that accepted the bribes should be guilty of a bigger crime than those that provided the bribes.

[Standtall]

Side note: Yankee tripper... really like your signature line. Well said Sen. Webb.

[yankeetripper]

Originally Posted by Standtall

I think those that accepted the bribes should be guilty of a bigger crime than those that provided the bribes.

They should both serve the same long sentence.

[Ronald Reagan]

Ted "Series of Tubes" Steven's kid is caught up in this.

How old is his kid now? 70?