CQ TODAY ONLINE NEWS
– CONGRESSIONAL AFFAIRS
April 1, 2009 – 10:46 a.m.
Justice Department to Drop Case Against Ted Stevens
By Bart Jansen and Kathleen Hunter, CQ Staff
The Justice Department asked a federal judge Wednesday to throw out the felony conviction of former Sen. Ted Stevens for making false statements on his Senate financial forms regarding gifts that he and relatives had received.
“After careful review, I have concluded that certain information should have been provided to the defense for use at trial,” Attorney General Eric H. Holder Jr. said in a statement. “In light of this conclusion, and in consideration of the totality of the circumstances of this particular case, I have determined that it is in the interest of justice to dismiss the indictment and not proceed with a new trial.”
Holder said the Office of Professional Responsibility will review the prosecution of the case against Stevens, R-Alaska (1968-2009), who narrowly lost his seat in the November election. “This does not mean or imply that any determination has been made about the conduct of those attorneys who handled the investigation and trial of this case,” Holder said.
U.S. District Judge Emmet G. Sullivan, who presided over Stevens’ trial, set an April 7 hearing on the government’s motion.
The dismissal request was filed with the court by prosecutors who took over the case after the judge criticized the trial prosecutors for failing to turn over documents to defense lawyers.
A jury convicted Stevens on Oct. 27 of failing to report more than $250,000 worth of gifts from VECO, a now defunct oil-services company; its former chief executive, Bill Allen; and others. The Justice Department under President George W. Bush contended that Stevens engaged in a multiyear scheme to conceal the gifts, most of which came in the form of improvements to Stevens’ Girdwood, Alaska, home.
Stevens, 85, the longest-serving Republican senator in history, has steadfastly maintained his innocence and sought a new trial, charging prosecutorial misconduct.
In a statement, he said he was “grateful that the new team of responsible prosecutors at the Department of Justice has acknowledged that I did not receive a fair trial and has dismissed all the charges against me.”
“I always knew that there would be a day when the cloud that surrounded me would be removed,” Stevens said. “That day has finally come. It is unfortunate that an election was affected by proceedings now recognized as unfair.”
The Justice Department’s five-page motion to dismiss the charges says defense attorneys should have been provided notes from an interview that authorities had with Allen on April 15, 2008. The motion says that prosecutors only discovered their notes from the meeting last week and turned them over to defense attorneys.
Two prosecutors who participated in the interview said Allen was asked about a note to him from Stevens dated Oct. 6, 2002. The notes from the April 15 interview indicate that Allen didn’t recall talking to a key prosecution witness, Bob Persons, about billing the defendant for the home improvements.
But that statement was inconsistent with Allen’s recollection at trial, where he described a conversation with Persons about billing Stevens. Allen estimated his work had a fair market value of $80,000, according to the April 15 interview notes.
“This information could have been used by the defendant to cross-examine Bill Allen and in arguments to the jury,” said the motion from Paul M. O’Brien, chief of the narcotics and dangerous drug section at the Justice Department, who took over the case.
Bill, or No Bill?
At trial Allen, once a close friend of the senator’s, testified that VECO Corp. spearheaded the addition of a new first floor to what was then a basic A-frame cabin, as well as a number of supplemental upgrades — first- and second-floor decks, a garage, a new kitchen and a rooftop snow-melting system. Stevens said that he paid all bills that were presented to him.
Stevens had entrusted Persons, the owner of the Double Musky Inn in Girdwood, to oversee the renovation process while he was in Washington. Allen’s employees, meanwhile, were handling the day-to-day work on Stevens’ house.
The conversation between Allen and Persons apparently was prompted by the Oct. 6, 2002 note, in which Stevens wrote, “You owe me a bill. . . . Friendship is one thing. Compliance with the ethics rules entirely different.”
Stevens cautioned Allen to “remember Torricelli,” a reference to former Sen. Robert G. Torricelli, D-N.J., who around that time was embroiled in a scandal involving illegal campaign contributions, and added, “It just has to be done right.”
In that note Stevens also said he had asked Persons to talk to Allen.
Allen testified that Persons then told Allen not to send a bill and that the request for an invoice was just for cover.
“Ted’s just covering his ass,” Allen quoted Persons as telling him during Allen’s Oct. 1 testimony.
Allen testified that he never billed Stevens after the initial note — or after a subsequent note from the senator on Nov. 8, 2002 — because of the conversation with Persons.
Prosecutors cast Persons as the a conduit between Stevens and Allen. But defense attorneys claimed prosecutors prompted Allen’s testimony in court about not recalling his conversation with Persons — a charge to which Holder’s statement seems to lend credence.
Stevens and his lawyers repeatedly accused prosecutors of gross misconduct in the case. During the trial, Sullivan several times chided prosecutors for improper conduct and threw out witness testimony and evidence as punishment.
Sullivan had postponed sentencing indefinitely while the Justice Department probed allegations of misconduct lodged by FBI special agent Chad Joy and David Anderson, a former VECO employee who facilitated improvements to Stevens’ home and testified at the trial.
Joy complained that another FBI agent on the case, Mary Beth Kepner, had an inappropriate relationship with Allen. Joy also said prosecutors hid information from the defense that could have helped proved Stevens innocent.
On Feb. 13, Sullivan cited William M. Welch II, chief of the public integrity section, and his deputy Brenda Morris, who argued the case against Stevens, for contempt for failing to turn over documents to the defense, as Sullivan had ordered Jan. 21. The judge called their failure to release the documents to defense lawyers “outrageous.” The lawyers turned over the documents later that day.
In notifying the judge later that the documents had been provided, Welch and Morris said they would no longer handle litigation about alleged misconduct in the case and assigned new attorneys.




Comments
Holder can afford to be magnanimous, afterall, they got what they wanted already, the senate seat.
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