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World News : North America Last Updated: Oct 28th, 2008 - 17:57:18


Friend testifies against Sen. Stevens at trial
By James Vicini
Sep 30, 2008, 22:52

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WASHINGTON (Reuters) - A former oil services company executive said on Tuesday at the corruption trial of U.S. Republican Senator Ted Stevens that he gave his longtime friend a good deal in a car swap and bought a generator for the lawmaker's home in Alaska.

Bill Allen, the prosecution's star witness, testified against Stevens, who is accused of leaving out on his Senate financial disclosure forms more than $250,000 in gifts from Allen and his company, VECO Corp.

The two men avoided any eye contact and did not say anything to each other when Allen entered and left the courtroom. Stevens showed no emotion during Allen's testimony.

The trial could decide the political fate of Stevens, 84, one of the Senate's most powerful Republicans who seeks re-election in November. If convicted, he likely would be unseated. If acquitted, he could win another six-year term.

Stevens, who has been in the Senate for 40 years and is the longest-serving Republican senator in U.S. history, faces a close race in what has long been a safe Republican seat. His Democratic opponent is Anchorage Mayor Mark Begich.

The 71-year-old Allen told the jury how he met Stevens for the first time in the early 1980s at a political event and said they became close friends.

"We really liked each other. We had the same thoughts," said Allen, who built VECO into one of the largest private employers in the state. "Ted loved Alaska and I loved Alaska."

Allen said he and Stevens went a number of times to what he called "boot camp" in Palm Springs, California, or in Arizona to lose weight. "We would walk, We wouldn't have hard liquor. We would just drink wine. We'd have a cigar," he said.

In 1999, Stevens offered to trade a 1964 Ford Mustang convertible, which Allen valued at $15,000 to $20,000, plus $5,000 for a new Land Rover that Allen had bought for $44,000.

Asked by prosecutor Joseph Bottini why he had agreed to the deal, Allen replied, "Because I like Ted."

Allen also testified that Stevens had been concerned that computers would not work when the year 2000 arrived and he would not have electricity at his home in Girdwood, Alaska.

Allen said he bought a generator for $5,000 or $6,000 and had two VECO employees install it. If the power went out, the generator would automatically come on and generate electricity.

Stevens never paid him back for the generator, Allen said.

Allen said Stevens told him in 1999 that he needed more room in the house and wanted to put a new first floor on the cabin. "I thought that was a pretty good idea," he said.

Prosecutors have charged that Allen and VECO provided renovations, including plumbing, heating and electrical work, a deck, a garage and a roof. VECO also provided an architect, numerous workers and materials.

Defense lawyers have said that Stevens and his wife paid $160,000 for the renovations and did not know about the one bill that Allen took care of. They also are expected to attack Allen's credibility.

Allen has pleaded guilty to bribing Alaska lawmakers. As part of his plea deal, he became a key witness in the FBI's public corruption investigation in Alaska. Stevens is the highest-ranking official caught up in the investigation.

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