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Tuesday, September 25, 2007

Kott Trial - The Extorion Charge

From the jury instructions:

Extortion

  • First, the defendant was a public official;
    • This is clear - Kott was an Alaska State Representative.
  • Second, the defendant obtained property which he knew he was not entitled to, with all of you agreeing on what that property was;
    • Prosecutor Goeke listed these in the closing:
      • $7,993 check for flooring
      • $1000 cash [payment for contribution to Murkowski]
      • political polls
      • lucrative job as a lobbyist for Veco
I think that the prosecution, using the tapes, using various invoices, and witness testimony, showed clearly that the $7,993 check was fiddled around with enough that it was clear that the money was for Kott to use to pay Peter Kott Jr. to be his campaign manager full time. At one point we were told the money was for work on a Sharon Durant's floor and Rick Smith's floor. Another time it was Bill Allen and Rick Smith's floors. And if it were really for flooring, how come the work still hasn't been done? Plus, Kott had the $30,000 in cash in his closet he could have used to pay his son if necessary, and there was $10,000 left over in campaign funds that could have been used.

It was clear the $1000 cash was given to Kott to reimburse him for a $1000 contribution Allen had asked Kott to make to the Murkowski campaign. Jurors could say he was just paying him back. Kott, in his testimony, said he only got $900. We heard testimony that Veco had a program for its employees where they got special bonuses which they were expected to contribute to specific political campaigns. It was pointed out this was illegal because it was in effect a corporate contribution which isn't allowed. Presumably, Allen had already given his limit, and this was a way for him to give more than his limit. But I don't recall that being pointed out. So some jurors may feel that this was just payback for the contribution. But I think the others will see this as Kott's gain.

Kott Jr. said the family didn't believe in polls, never ever used them. Kott said the same. But his consultant ordered the poll. Kott went over it in a phone call with Dave Dittman, and in one conversation confirming to Rick Smith he knew they'd had a poll done, he said something like, "And we may need a second one to see how the ad went."

I thought it was pretty clear that Kott was looking for a consulting job with Veco when he left the legislature. At one point he and Smith talked about it on tape. Kott mentioned Chris Knauss (Kott's former staffer who had been hired to lobby for Veco) and Kott said he wanted to be a lobbyist. But the stuff about being a prison warden in Barbados muddies things a bit. Someone testified that Barbados was a code word for the consulting job. Everyone knew he didn't want to be a warden, but it was a way to bring up the consulting job without asking directly.

But they don't need all four. Just one. But they have to agree on that one.

  • Third, the defendant knew that the property was given in return for his agreement or understanding whether explicit or implicit, for taking some official action; and
I think the cumulative affect of all the tapes suggests there is an implicit agreement that Kott has access to favors from Allen (like the four things listed above) if he does a good job working bills through the legislature for Veco. In the May 6, 2006 audio tape, Kott asks Smith whether they have Weyhrauch (presumably to help with ppt). Then Kott says, well I hear he's asked you for a job.. This seems to link the idea of doing Veco's work in exchange for a job. There are long pauses where you wonder if Kott is sending esp messages to Smith saying, "And I'm gonna get one from you guys too, right?" A September 26, 2005 phone conversation between Kott and Smith has Kott saying, "I need a job." Smith says, "You've a got a job. Get us a pipeline." Smith, "What are you gonna do?" Kott: "I gonna be a consultant like Knauss." But you can take that to mean, "You've got a job, it's to get us a pipeline." But that would have problems for Kott too. You can judge for yourself.
Smith and Kott phone call - Sept. 26, 2005
The saving grace for the prosecution here, is that it says, "whether implicit or explicit" in the jury instructions.


  • Fourth, commerce or the movement of an article or commodity in commerce from one state to another was affected in some way.

In his closing, Goeke said this was all about getting a gas pipeline, so that counts as interstate commerce. I guess if that is in debate, they can ask the judge.

I think this and the bribery charges are the easiest to convict on. If the jury has trouble with this one, Kott's going to be in good shape.

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