Summer CE Week #2: “Alaska Senator Is Indicted for Failing to Disclose Gifts”




July 30, 2008

WASHINGTON — Senator Ted Stevens of Alaska, the longest-serving Republican senator in United States history and a figure of great influence in Washington as well as in his home state, has been indicted on federal corruption charges.

Mr. Stevens, 84, was indicted on seven counts of failing to report income. The charges are related to renovations on his home and to gifts he has received. They arise from an investigation that has been under way for more than a year, in connection with the senator’s relationship with a businessman who oversaw the home-remodeling project.

The indictment will surely reverberate through the November elections. Mr. Stevens, who has been in the Senate for 40 years, is up for re-election this year. Mark Begich, a popular Democratic mayor of Anchorage, hopes to supplant him.

The Justice Department announced the charges at a news conference Tuesday afternoon. The document says that, from the spring of 1999 through the late summer of 2007, Mr. Stevens failed to report “things of value” that he received in connection with his home in the ski resort city of Girdwood, about 40 miles south of Anchorage.

Prosecutors say Mr. Stevens, who referred to his home as “the chalet,” accepted goods and services worth hundreds of thousands of dollars, ranging from an outdoor grill to extensive home remodeling and architectural advice. Not only did Mr. Stevens fail to report the items on his Senate financial disclosure form, as required, but he took active steps to conceal the receipt of the goods and services, the indictment says.

All the charges are felonies. Justice Department officials declined to discuss how long a prison term a conviction on the charges might bring, noting that the maximum sentences allowed by law are rarely imposed. Mr. Stevens was in Washington on Tuesday, and was allowed to turn himself in for paperwork processing.

The business executive at the center of the affair is Bill J. Allen, a longtime friend of the senator’s and the founder of VECO, a company that builds pipelines and does other construction work for oil companies. Mr. Allen pleaded guilty in May 2007 to making $243,000 in illegal payments to a lawmaker, who was later identified as State Senator Ben Stevens, Ted Stevens’s son.

Ben Stevens, who was once president of the Alaska State Senate, is one of a half-dozen lawmakers under scrutiny for their relationships with Mr. Allen and his company.

Republicans on Capitol Hill were already jittery over a lobbying and influence-peddling scandal related to the lobbyist Jack Abramoff, who is now in prison. Mr. Stevens’s troubles are not linked to that affair. Instead, they stem from his ties to an oil executive whose company won millions of dollars in federal contracts with the help of Mr. Stevens, whose home in Alaska was almost doubled in size in the renovation project.

Under Senate Republican party rules, an indictment on felony charges compels a member to temporarily give up his leadership posts, and Republican senators were told at their weekly luncheon on Tuesday that Mr. Stevens would do so. Mr. Stevens has been the ranking minority member on the Commerce, Science and Transportation Committee.

Mr. Stevens is a former chairman of the Senate Appropriations Committee, and he is still on the panel. As chairman, he wielded huge influence, and did not hesitate to use it to steer money and projects to his state.

“No other senator fills so central a place in his state’s public and economic life as Ted Stevens of Alaska,” the Almanac of American Politics says. “Quite possibly, no other senator ever has.”

Mr. Stevens, one of only a handful of World War II veterans left in the Senate, grew up in Indiana and California and moved to Alaska in 1950, before it was a state, according to the political almanac. He first ran for the Senate in 1962, losing to Ernest Gruening, a Democrat. He was appointed to fill a vacant seat in the Senate in 1968 by the governor at the time, Walter Hickel, and has been re-elected six times since then.

Word spread through the Capitol like an electric current, prompting whispers among senators and staff. The Democrats were gathering in a room near the Senate chamber for their weekly conference lunch. Republicans, meanwhile, moved their lunch to the headquarters of the Republican Senatorial Campaign Committee, a common change of venue when the primary topic of discussion is politics.

Mr. Stevens is seen as a legendary, even heroic, figure in Alaska, who played a crucial role in its achievement of statehood, which became official in 1959. According to Senate Republican rules, Mr. Stevens will have to give up his leadership positions, which include some hugely powerful posts, as the senior Republican on the Commerce, Science and Transportation Committee and the defense appropriations subcommittee.

The long-running federal corruption investigation in Alaska has been hanging over Mr. Stevens as he faces his toughest re-election contest in many years. Mr. Begich was expected to mount a strong challenge even before word of the indictment spread.

Alaska, which last elected a Democratic senator in 1974, is one of several seemingly unlikely states where Democrats believe they have a strong chance of pulling off upset victories in the November elections.

The indictment comes nearly a year after federal agents raided Mr. Stevens’s home as part of a continuing investigation into corruption that had already ensnared the senator’s son.

Though lawmakers have been aware of the Justice Department inquiry for some time, the news of an indictment still came as something of a shock this week, as both houses of Congress are trying to wrap up legislative business before the monthlong August recess.

Senator Daniel Inouye, Democrat of Hawaii, who is the chairman of the defense appropriations subcommittee and a friend of Mr. Stevens, said Mr. Stevens should be presumed innocent unless and until he is proven guilty.Mr. Inouye said he did not expect that the indictment would interfere with Senator Stevens’s ability to work in the Senate.

Other lawmakers, including Senator Barbara Boxer, Democrat of California, the chairwoman of the ethics committee, said they needed to know more about the indictment before commenting.

Published in: on July 29, 2008 at 1:10 pm Comments (12)
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12 Comments Leave a comment.

  1. on July 29, 2008 at 10:26 pm Sean Blackburn Said:

    This article uses legitimate sources, which is nice for a change from the usual skeptical rants. It appears though that senator Stevens is most likely guilty of corruption. Which i think is the case with most politicians (that is a skeptical rant). I do wish that this article included more about other politicians accused of corruption just because i would like to know. I hope that this scandal doesnt weeken the Republican party in the eyes of the public. Something like this could cause alot of stereotyping about republicans being corrupt, when if i had to make a guess, there are just as many corrupt Democrats as there are corrupt Republicans.

    Someone like Senator Stevens who has been around in public life since a completely different era should probably be pushed out of his position anyways just because he has most likely lost touch with current public opinion. Although that could be completely false because i know some old people who are very in touch with current times. I think that He may have been able to get away with corruption back in a different time, but i think that now that things like this are being caught, it is showing a shift in politics and public life. Americans are not longer tolerating some of the “old tactics” that are still being used in Washington. This is probably why Obama has so much support. I hope that this is a good new direction for our country and not just a scandal to entertain us. After reading over this blog i realized that it was, in fact, a skeptical rant. I guess that makes me a hypocrit!

  2. on July 29, 2008 at 10:44 pm Cody Thompson Said:

    Hmmm… Not very impressive there Mr. Stevens. When such a central player to a major system goes corrupt it makes me slightly nervous. “No other senator fills so central a place in his state’s public and economic life as Ted Stevens of Alaska,” the Almanac of American Politics says. “Quite possibly, no other senator ever has.” Stevens seems like the type of person that has the capabilities to be a powerful leader, but it would seem that his strengths have been used for a more… “self-centered” purpose. And when American tax dollars are just tossed aside like Skittles, (A.K.A: $243,000 in illegal payments to a lawmaker A.K.A. State Senator Ben Stevens, A.K.A. Baby Stevens… Or an oil executive whose company won millions of dollars in federal contracts with the help of MR. STEVENS…) it just really lets you down.
    Thanks Debbie Downer.

  3. on July 30, 2008 at 10:36 am Annie Gobble Said:

    I’d like to think that people who have been around politics for so long would be experienced and be able to offer positive advise to the younger, up and coming generation. Unfortunately, this isn’t often the case. This article is an example of one of many long-term politicians that become corrupt and lose touch with the public. Obviously that’s a general statement and doesn’t apply to every senator who’s been reelected multiple times. But it seems like when a scandal like this comes out, it’s usually a person who’s been around a while and is fairly well known. I can’t believe he kept getting elected to office for forty years. I don’t think it’s good for someone to get too comfortable in an office like that. He obviously started taking his position of influence for granted. The people of Alaska probably voted for him because he’d always been around. I can’t say for sure, but I think he was probably pretty out of touch with this generation. It’s also disappointing because he really gives a bad name to republicans. As the longest serving American senator in history, he should have given that title a better name. Instead of using his influence to better his country, he used it for personal gain and comfort.

  4. on July 30, 2008 at 11:28 am Caleb Deitz Said:

    “You either die a hero, or you live long enough to become the villain.” I hope everyone has seen Batman otherwise that’s not going to make any sense or invoke pictures of a caped crusader in your minds. It’s funny how the story of Mr. Stevens ties in so closely to the quote above. Of course when Bruce Wayne, or Batman said it he was referring to the Caesar of Rome not to a Mr. Stevens. Mr. Stevens obviously had forgotten his purpose in being a leading senator for the Republican Party. But that’s understandable, old people forget things. It’s just usually their teeth not their morals. Then again, we kind of should have seen this one coming. A senator from one of the biggest producers of oil in the country who is very pro oil being paid of by a person who works with oil. Maybe I’m mistaken but if this situation was a snake it would have bit us. This situation just goes to show once again we need to shorten the leashes on our politicians and try to keep better track of what they spend their quote unquote leisure time doing. Hey, maybe we better check the senator of Idaho for payoffs by the potato industry.

  5. on July 30, 2008 at 12:49 pm brennan waller Said:

    I have several comments on this article. First of all, this article is a little hard for me to understand because I am confused on why “failing to report income” is such a problem. Do we, as taxpayers, pay for the Senator’s “renovations on his home and gifts he has received”? Or, is it just a rule that in the Senate, or government, you have to report your income? If, in fact, we do pay for these things, I can understand why “failing to report income” is a problem. So, if somebody would please clear this up for me that would be great…
    As stated in the article, “The indictment will surely reverberate through the November elections.” If this is true, it will be very unfortunate for the Republican Party. Senator Stevens’ slip-up could possibly spell disaster for John McCain and his campaign. The public could view the Senator’s corruption as a representation of the GOP as a whole: a corrupt party. I know this is the worst case scenario, and I believe this scandal won’t have as much of an impact on the upcoming elections as the author says it will. However, in a race as one-sided as this, the smallest of scandals can be enough to knock McCain completely out of the race.

  6. on July 30, 2008 at 12:50 pm Rachel Kerr Said:

    It’s a relief to know that Senator Ted Steven’s actions will not simply be pushed aside, deemed to be irrelevant or typical of a high-power representative. I agree with Sean, however, that this particular issue may indeed cast a dark shadow over the Republican Party, providing another reason for unsure or undecided voters to place a check next to Obama’s name on the ballot. The truth is politics bases itself on identification and public representation; the interpretation is where corruption comes into play. In Mr. Steven’s case, his allies were easily recognized because of close connections, leaving no room for society to deny his guilt over the matter. It may be true that Mr. Steven’s influence was, at one point in time, very appealing in Alaskan politics, but the senator now finds his authority (and possibly his mental capacity) waning. Perhaps the idea that old age corresponds with “old politics” is yet another explanation for hesitancy to elect McCain, whose 72nd birthday is quickly approaching. Obama, on the other hand, will meet his 47th birthday this coming Monday. Let’s move back to the fraudulent Mr. Stevens. If he truly wishes to seek re-election and retain some value for the Republican Party, he better get his act together before it’s too late.

  7. on July 30, 2008 at 12:53 pm Annika LaVoie Said:

    Although Senator Ted Stevens played an inluential role in the inauguration of Alaska as a state and in its subsequent affairs, it seems that Mr. Stevens has coasted on his good status for too long. At 84 he must be getting tired of the strenuous tasks of a senator and is now more concerned with renovating his “chalet” than in the affairs of his country.

    On another note, “the apple doesn’t fall far from the tree.” Mr. Stevens’s son, Ben Stevens, was earlier involved in receiving $243,000 in illegal payments. It seems pretty disastrous for both a father and son to be convicted of the same crime in receiving “gifts” solely for the benefit of themselves.

    Yes, Mr. Stevens should be remembered for his “heroic” role in Alaska and should be applauded for all of his labors. However, it seems that it is high time for him to step down from his position in grace rather than becoming more and more entangled in fraud and indictments. That way he can refurbish his house all he wants…but without deviously and underhandedly receiving “things of value.”

  8. on July 30, 2008 at 2:12 pm brennan waller Said:

    In response to Sean:

    I completely agree with you when you talk about how Stevens could be too old to still hold his position as Senator. Our country is constantly growing. As we grow, it seems like it would be better for our country to cycle younger politicians through the government, rather than let people hold their position for 40 years, as Stevens has done. New generations bring new ideas and new knowledge of the public’s demands.
    Have you thought about how this idea might influence our upcoming election? Could John McCain, at 71, be too old to lead our country in its growth?

  9. on July 30, 2008 at 11:58 pm Cyle Christianson Said:

    You know I had to get in on government corruption.

    I’m going to start off with a quote, change it up a bit. “Honey I’m home, nevermind why our bank account’s suddenly grown/It’s funny, we’re so out of this debt from this money we owe/Woulda ya…mind if I told you I had two governments overthrown/To keep our son enrolled in a private school, and to keep ya tummy swollen” (Immortal Technique “Peruvian Cocaine”).

    It amazes me that politicans can be so currupt, especially after being re-elected again and agian. Also, the corrupt politicians are holding powerful positions in comitties, so they are able to make things happen and get “kick-backs” from the beneficiaries of their law or any decision that they make.

    What also amazes me is how much money can change people. I don’t know this for sure, but I think most politicians are initially out there to do good. But once they get into a position that allows their influence to be “bought”, they relent from their inital mission and then they are out for cash.

    Our government is corrupted and I agree that we need some change that will allow our politicians to be honest and unsupceptable to bribes.

    I guess I will also end with a quote from “New Jack City”. “I’m not guilty. YOU’RE the one that’s guilty. The lawmakers, the politicians…This is big
    business. This is the American way”.

  10. on July 31, 2008 at 12:38 am Cyle Christianson Said:

    In responce to Brennan Waller:
    I believe that the problem with not reporting income is that people have to pay taxes on their income, and, correct me if I am wrong, but I think that politicians also have to pay taxes on their income. Also, on that topic, there is a general rule that it is wrong for politicians to receive gifts, presumably for favorable law-making.

    But I agree with you in stating that this is bad news for Republicans. This brings up the notion that they all might not be as clean as Mitt Romney. And it makes people think that the party might not be serving the best interests of the people and, are contrarily, serving the best interests on their bank accounts.

    To quote Ludacris, “In this life, one thing counts, in the bank, large amounts”.

  11. on August 1, 2008 at 1:30 pm Kyle Hermens Said:

    It never fails to amaze me when politicians, people whose careers are based in being in the public eye, as well as having their private lives examined by our media, would set themselves up for scandal like this. It takes a special kind of arrogance to imagine you’re not going to get caught for having your house double in size, and then not report everything that comes up on your financial records. People are going to notice! Then again, this is Ted Stevens, the man who brought us famous quotes like, “The Internet is not a dump truck, it’s a series of tubes” and “My aide just sent me an internet this morning.” It’s really quite sad that such an apparently influential politician, for his state, and his party, has come so low so as to get caught in such a blatant scandal. Perhaps it’s time for the man to retire, he doesn’t seem to have a full grasp on things, it seems. I mean, he could have simply made a blunder on his forms, “innocent until proven guilty” as the author states, but the case seems fairly clear cut. His house underwent a massive renovation, and a wealthy business man admits to illegal payments heading Ted’s son’s way. The indictment charges even allege a willful cover up, and the number of items missing from his records seems to support that, at least in the frame of as much information the author gives. Oh how the mighty have fallen, I hope Ted can enjoy his “Chalet” even when he’s not in the Senate.

  12. on August 2, 2008 at 1:09 am Sam Fitterer Said:

    This type of thing really goes to show you the problems with our political leaders today. This is not restricted to parties; I believe Sean is right when he says just as many Democrats are corrupt as Republicans. There is a serious flaw in the system these days. Not very many people are running for public office that should be. Mostly power hungry selfish people like Stevens are. Events like these make our founding fathers turn over in their graves. In the beginning it was all about liberty and freedom, and now our incentive has shifted to a green one. Money and power should not be motivations to run this country. Our country should be lead by people who care about this country more than themselves and who will do the best thing for it. Our country should be led by people like Abraham Lincoln who freed the slaves, or FDR who promised to do everything humanly possible to end the great depression, or men like JFK who refused to back down to the Soviet Union in the closest event to a nuclear war we ever had. You don’t see to many politicians these days that run for those reasons. It seems men like that only appear in our darkest hours, lets pray we don’t have to wait for another depression before more great leaders emerge.

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