Alaska Senator, Representative Under Investigation

An investigation into corruption in the Alaska legislature now includes both Sen. Ted Stevens (R-AK) and Rep. Ted Young (R-AK). Both are running for re-election in 2008.

The leaders of an Alaska corporation at the center of the corruption, Veco, have pled guilty to bribing state legislators; the founder and (then CEO) has made extensive political contributions to both Stevens and Young.

On Monday, FBI officials searched Stevens' Alaska home as part of this ongoing investigation into corruption. The house was extensively remodeled in 2000 by lifting it onto stilts and inserting a new first floor. The Anchorage Daily News summarizes the implications of the search:

If Stevens received renovation work for which he did not pay, it could be deemed unreported income by the IRS. Receipt of unreported renovation work also could amount to an illegal gratuity. Or if it were performed in return for political favors, it could be considered a bribe.

Bill Allen, then Veco CEO, managed the project. Two months ago, Allen pled guilty to bribing state legislators and is cooperating with investigators, not unlike Jack Abramoff's cooperation with the Justice Department. The Department's Public Integrity Section is working with the FBI and two Anchorage-based assistant US attorneys. Veco Vice President Richard Smith also pled guilty to bribing state legislators.

The Anchorage Daily News also reported last week that, according to the Wall Street Journal, Young is being investigated for ties to Veco.

According to OpenSecrets, since 1990, Allen has donated $179,200 to various Republican incumbents and PACs as well as a few token contributions to Democrats ($500 to the Alaska Democratic Party in 1998, for example). Allen has made extensive contributions to Stevens' Leadership PAC Northern Lights and Young's Leadership PAC Midnight Sun.

Last summer, federal officials served a search warrant on Ben Stevens, then president of the state Senate and Ted's son. Although Ben has not been charged, "Allen's guilty plea in May described Veco paying him some $243,000 in phony 'consulting' fees while he was in office."

Also last summer, the Sunlight Foundation unearthed a three-year old LA Times story outlining official acts that Stevens took "in the U.S. Senate that have benefited the clients of his son, state Sen. Ben Stevens."

Veco is now being acquired by CH2M Hill.

Also, see:

• State Politics At A Glance: Alaska
• Earmark Killed, But Funds Still Head to Alaska
• Gone But Not Forgotten: Energy, Oil and Alaska
• Members of Congress Shell Out $1 Million in Legal Fees
• FEC Data on Northern Lights PAC
• FEC Data on Midnight Sun PAC