by Congressional Quarterly

he owners of a construction company and a dirt excavation business testified Friday that Alaska Sen. Ted Stevens and his wife paid them thousands of dollars for services associated with a massive renovation to Stevens’ Girdwood, Alaska, home. Toney Hannah told jurors at the veteran Republican lawmaker’s federal corruption trial that he had received three checks totaling roughly $4,900 from Stevens’ wife, Catherine, in the summer and fall of 2000. Hannah testified that the checks, which were entered into evidence, covered costs associated with raising Stevens’ house and laying the foundation for an addition. Hannah is the owner of Hannah Construction Company, which specializes in raising and moving houses. Defense attorneys are trying to establish that Stevens’ paid for a series of home improvements — including an addition to what was once a modest, A-frame cabin — in the hopes of beating back claims that the senator knowingly let VECO Corp., an oil-services company, pick up the tab. VECO is owned by Stevens’ friend Bill Allen. On cross-examination, Hannah testified that another of Stevens’ friends, Bob Persons, complained to him that the work Hannah’s company performed had cost too much money. Stevens entrusted Persons to oversee the addition, and prosecutors have introduced numerous e-mails in which Persons tells Stevens that he is working to keep costs down, including an Oct. 13, 2000, e-mail in which Persons tells Stevens he believed Hannah had overcharged him. Robert and Jean Redmond, owners of a Girdwood-based excavation company, each testified about work their company performed at Stevens’ home in preparation for the addition. Jean Redmond, who handles bills for the company, said Stevens and his wife paid promptly and in full for about $3,500 worth of services in fall 2000 and that the Stevenses routinely paid for things on time. U.S. District Judge Emmet G. Sullivan meanwhile said Stevens will be able to call five character witnesses, less than half the 11 Stevens’ lawyers sought to testify to his “truthfulness and veracity.”

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   by Congressional Quarterly

Federal prosecutors have rested their case against Sen. Ted Stevens ’ following testimony Thursday from a last-minute witness: a construction worker for an oil-services company who allegedly helped manage a major addition to the Alaska Republican’s home in Girdwood, Alaska. Over objections from Stevens’ lawyers, U.S. District Judge Emmet G. Sullivan decided to allow the government to call David Anderson, a former VECO Corp., construction worker. Stevens’ attorneys did not cross examine Anderson, who detailed several components of an extensive addition to Stevens’ home that he said he spearheaded and VECO financed. Prosecutors, who decided late Wednesday to call Anderson as an unexpected final witness, are trying to mitigate potential damage to their case caused by the judge’s decision to strike evidence and testimony related to the amount of time Anderson spent working at Stevens’ home in late 2000 and early 2001. Anderson, who at times directed asides straight to the jury, testified that he often spent 10 hours a day and as many as six days a week at the project, in many cases personally bolting, hammering and providing other manual labor. “It’s time-consuming, for sure,” Anderson said, referring specifically to the house-lifting portion of the project, which he said took several weeks and was done primarily by himself, Robert “Rocky” Williams, another VECO employee and Bob Persons, a close personal friend of Stevens. Stevens, R-Alaska, is accused of failing to report more than $250,000 worth of gifts on the annual financial disclosure forms that all senators must fill out. Prosecutors say most of the gifts came from VECO in the form of improvements to Stevens’ Alaska “chalet.” Defense attorneys later were expected to begin their presentation, but first tangled with the judge over how many character witnesses they would be allowed to call. Stevens’ lawyers want to call 10, including former Secretary of State Colin Powell and Sen. Daniel K. Inouye Powell and Inouye, D-Hawaii, arrived at the courthouse Thursday morning. Powell left about an hour later, but Inouye was expected to testify.

Pelosi Concerned About Conflicts in Bailout Program

October 8, 2008

   by Congressional Quarterly

Interim management guidelines for the Treasury Department’s program to buy up to $700 billion in troubled financial assets “appear to permit financial institutions with a clear conflict of interest to participate in the management,” House Speaker Nancy Pelosi said. In a letter Tuesday to Treasury Secretary Henry M. Paulson Jr. , Pelosi expressed concern that companies benefiting from the program may be eligible to help run it. Acting under authority granted by Congress last week, Treasury is soliciting proposals for asset management services and accounting, auction management and other “infrastructure services.” While lawmakers gave Paulson wide latitude to design and run the program, they also imposed some limitations and vowed to watch closely as it was implemented. One major concern expressed by lawmakers and some outside observers is that the financial experts brought in to help manage the program may come from companies with mortgage-backed securities and other assets purchased under the program, known as the Troubled Asset Relief Program. In a letter, Pelosi urged Paulson to strengthen the management guidelines “to avoid even the appearance of conflicts of interest by the same financial institutions who may also benefit from the TARP.” In a notice published on its Web site Monday, Treasury asked interested companies to submit requests by 5 p.m. Wednesday and said it expects to announce decisions next week. In a separate posting, Treasury said it could use either a negotiation process, known as financial agent authority, to hire managers or more traditional federal procurement contracts governed by the regulation.

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