The prosecutor's witnesses weren't able to fly out of Juneau last night, but it probably didn't matter because the after the opening arguments and one witness - FBI Special Agent Dunphy - who testified how the wire taps are approved and run, it was about 4pm anyway.
First quick impression:Both the prosecution and the defense made strong opening arguments. The prosecution said it was about abusing public trust. About Kohring getting money from Veco and then offering to help Veco in the legislature. He did a nice job of talking about the context - the gas pipeline, the ppt legislation, the importance of it all, the relationship between the Governor and the oil companies, etc. Well, after sitting through the Anderson and Kott cases, I got it; whether the jurors with much less background could follow it I'm not sure. It did seem pretty straightforward though. He also said the trial was unique because so much of the evidence was on tape - audio and video. It wasn't clear to me how much was actual taking money was on tape - at least one incident where Allen gave Kohring $1000 - and how much is going to rely on others - mainly Allen I guess - testifying that Kohring would say he wanted to do something (visit his family in Oregon, for example) but didn't have the money, and Allen would take out his wallet and peel off hundreds.
The defense began by saying it was an honor to try this case, something about participating in government. We get to vote and we get to be involved in cases like this with public officials. And that the jury should feel honored too.
Then basically he said his client was a decent man who didn't smoke, drink, or swear. But he was still good friends with Allen (who did all those things and Browne quoted him liberally to make the point) because Kohring has a Russian wife and step daughter and Allen then had a Russian girlfriend with a college age daughter.
Another key point was that Kohring had signed a no taxes pledge and would never have voted for the ppt bill because it was an increase in taxes. (If they changed it so it was called a fee he could have gone along.) He spent a fair amount of time trying to show that there were the sleazy, alcoholic, cussing bad guys and their legislative tools. "I own their asses" was quoted about everyone under the son including Don Young and Ted Stevens. He talked about how much money Ben Stevens got paid by Veco (he said $250,000 a year, but my recollection is that $200,000 was the total over a number of years. ) And how much Tom Anderson got paid, both for doing nothing. In comparison Kohring is so poor he lives in his office in Juneau and in a trailer in Wasilla and doesn't drink, smoke, swear, etc.
Clearly, hearing Kott and Anderson use profanity on the tapes and hearing them agree to the various deals made the prosecutors case much stronger. Browne is trying to distinguish his client as not one of those guys. We'll have to see what the prosecution has.
I've got a class tonight, so I don't have too much time here. I'll post my notes of the opening arguments below.
NOTE: These are very rough. I did use spell checker to correct some of the worst. There is a lot missing - I just couldn't keep up. But it will give you a little flavor of the arguments. If the Daily News or APRN gets the days CD of the day from the Court today, maybe they'll have the audio available.
Prosecutor Joseph Bottini's Opening Argument
1:47pm
About misuse of public trust for personal gain. Using his office to ask for and accept things of value from people who needed his help.
Public official simply cannot use that office for their own personal financial gain. That is indeed what Mr. K. did. He accept things of value, in exchange for be ready willing and able to help people
Charged with conspiracy, bribery, extortion under color of official light, and attempted extortion.
In essence, charged with selling his public office, in exchange of using his position to help the people who gave him
Prove it through his own actions, his own words.
Central theme: Efforts to get natural gas pipeline built. Exxon, Conoco Philips, Fall 95 condition reached. Conditioned, - something had to take place before deal could happen. Producers wanted oil tax revamped. Wanted certainty for next several decades. Deal -tax rate 20% and fixed for number of years and offset by 20% credit for expenses.
Agreement had to be ratified by legislature. Key issue in 2006 legislative session Jan-May 2006. You will hear repeated refs. 20-20 agreement, Govt’s plan, as 20-20, or PPT, if you hear witnesses or recording using those words, that’s what they are talking about.
Also learn a lot about a company called Veco Corp. Basically an oil field services business - made most money providing services for oil production in AK. Veco’s bread and butter. Bill Allen CEO, basically started company in late 1960s and built it to 2005-06 Veco had 5000 employees world wide, back bone in AK.
Rick Smith, VP for govt. affairs for VECO. Both will testify as witnesses. Tell more in a minute.
Veco’s clients were primary oil producers - BP, Exxon, C-P who made the deal. Veco stood to make 100s of millions of $ from construction of pipeline. Before that could happen, this agreement had to be ratified and passed into law by the legislature. Bill A, RS and Veco were pushing hard in 2006 to get this passed. They pushed too hard, went over the line. The bribed a number of elected public officials. They both have pled guilty and they’ll tell you who they admitted paying bribes to. And that they have agreed to cooperate with the govt. what their expectations are with regard to their cooperation with the govt.
BA started getting active in politics about 20 years ago. Hiring a lobbyist. L = person who communicates info to legislators, tries to advance the ball for his clients. As years go on, Allen gets more active. Organizing fund raisers, Veco employees active with political contributions. Veco and Allen and Smith got in trouble. Veco started reimbursing employees for their political contributions. You can’t do that because corps can’t contribute to political campaigns.
They became so active, that they ended up very year going down to J. setting up shop. They rented suite 604 of the Baranof hotel. Use that as base of operations. Set up shop. You will hear a lot about their conduct in Suite 604.
Case is not about BA and RS. About VK
Elected first in 2006 entering 12th year in legislature. VK generally had a strong anti-tax philosophy. Also strongly in favor of oil industry. Allen and Smith became very supportive, of his campaigns, contributions to his campaign. They considered him a friend.
As 2006 leg. session kicked off, this critical piece of legislation was their primary focus. 20-20. They knew the vote was going to be close. Every vote counted. Every vote critical. Including Kohring’s. Despite the fact that he was generally supportive, they were concerned. He was such an anti-tax advocate, that he would think 20% too hight He might want lower tax.
Would be assigned to Special Committee on Oil and Gas. Kohring head of committee But bill going to Nat. Resources, not his committee. They knew Kohring was upset, that he was being bypassed. That’s why they decided to give him number of benefits. Gave VK cash, to keep VK loyal, that he would support the ppt bill as it went thru the legislature.
Like any trial, you’ll hear from a number of witnesses. Case unique in that bulk of evidence is real time recordings - audio and video - made during legislative session. Made under authority to do this. You’ll learn what govt. has to do to get permission to tape. Difficult to get these. Have to satisfy court that probably cause that criminal conversations will have to take place. Not done lightly. Even when authorized, still can’t listen to everything. Some kinds of conversations you can’t listen to.
Back in 2005 FBI sought authorization to put tap on RS’s cell phone. Then BA’s cell and then home phone. Jan. 2006 application for electronic surveillance in Suite 604 of the Baranof hotel.
From these wire taps and the bug, recorded a number of conversations, including between RS, BA, and VC. In some that we play for you, the language is pretty harsh. These two gentlemen - RS and BA particularly, were pretty profane
Pipeline contingent on 20-20 negotiation. RS and BA go down to J and set up shop in S. 604 in January FBI gets authorization to put a bug for audio and video in that suite.
PPT bill incorporated agreement - introduced to leg. on 2/21. Was not going to Kohring’s committee, but to Nat Resources. BA and RS concerned about VK’s feeling
They take K to island pub in Douglas AK, and gives VK $1000 in cash. Allen will tell you, not the first time he’s given K cash during legislature. He will tell you he gave K cash on 3 or 4 occasions. Always in K’s leg. office, only BA and VK their, $600-800, when K would tell Allen, “ I want to do something, but can’t afford it.” Allen would peel off the money and give it to him. Allen kept several thousand dollars in his wallet.
Reason he gave him the money - he felt sorry for Kohrning an his financial situation
But also because he knew he could keep K. loyal to him. 2002-6, same time he was giving K cash. Also asked K to do things for him, as a legislator, not as a private citizen.
2003, K introduced piece of leg. in house relating to royalties on CI oil platforms. A competing bill in the Senate. Upset that another leg. had highjacked his legislation. Referred to K’s committee. K. sits on bill in anger that someone else had hijacked his bill. He was asked by murkowski admin member, and BA asked him to release the bill and K did.
Also asked K on two occasions not to run against Lyda Green. Twice. Mr. K had announced his intention to run for the senate. He went to K twice and asked him not to run against Green. K. stayed in his house seat.
K hired a leg staffer who’d worked for a prior legislator. They filed a complaint against the legislator. BA angry about this because he liked legislator. BA called K and asked him to ?drop the complaint?
You will hear that these were just gifts between friends. Had nothing to do with his job as legislator. Listen to how these people act, what they say, how he brings up his problems, and how he promises to do things in return. It’s up to you to judge whether these are criminal activities.
2006 legislative session. Allen takes K out to dinner Feb 23 gives him $1000. March 3, Allen and Smith in 604, stressing out about passing ppt bill, this is our future, we gotta produce right now, profane, Smith: I know, we gotta get dirty, we gotta produce. BA: You know, just like the other night with old VK, you take off an I gave him a $1000. I know you did, thats why I left. And he will kiss our ass. They meant that they knew he would be behind them on this ppt legislation.
Another video March 20, 2006, Pete Kott another legislator with RS. You will hear RS’s end of conversation to meet VK in lobby in half hour. PK knows VK on phone. You know you aren’t going to hear VK on that bill. He hasn’t voted for a tax bill in 12 years. NO, no, we’ve talked to him. If you agree on the vote, I’ll vote for you. We’ve talked to him and he said he’d be there if we needed him to be there.
Mr. K ]’s nephew got a job with Veco. BA and RS will tell you how this came up. VK asked if his nephew can get a job there. You’ll hear on the phone. Getting his nephew’s resume. “Thanks for the good things you do for me.” I’ve dropped off my nephew’s resume. Call if I can do anything to help. Let me know what I can do. Can I lobby on your behalf? Keep in mind ppt bill in legislator.
Another call. I stand by ready to help.
March 29 VK calls RS I want to talk to you and BA. Serious matter for me. RS and BA agree to meet. Video March 30, 2006 - VK comes up, sits down. I’m in trouble with personal finances. $17,000 on credit card agency, they’re ready to sue, will hurt me politically. You guys got any ideas? They talk about possibility of cosigning on loan to get him out. Maybe hire him at VEco. As they talk about this. They also say they have to be discreet. CAn’t let people know they are helping K financially. K: I won’t do anything that will raise red flags. Then K brings up his desire to visit family over easter break. BA says I like to put $ in plastic easter eggs and go find them. BA asks RS for $100s. BA gives to VK. VK says thanks. I just sent my step daughter money for a gscout uniform. BA hands a stack of currency to VK “let me help you out.” K: what can I do at this point to help you guys? Just keep lobbying my colleagues for the governor’s plan. Talk about specific legislators he was close to he could lobby. He provides inside info on where dif. legs are on their support for ppt.
Next day phone call: Want to let you guys know I’m doing what I can to help you out. I’m scheduling appointments. I’ll keep lobbying the best I can.” This is the day after they gave him lots of cash.
Reg. session ran to May 10. PPT didn’t pass. Conversation between RS and BA on May 8. If this goes thru, we’re going to have to take care of a number of people, BW, Ben Stevens, VK - got to figure out what to do with him. Regular session ends w/o ppt. Murkowski calls a special session to continue to consider ppt leg. Toward the end of this 1st spec. session. PPT bill jacked around and comes out at 22.8%. Concerned that the producers will walk away at tax that high. So now they want to kill the bill. On June 8, late in the evening, BA comes up with plan to mess this up.
Plan: If i can get VK away from the capital so he isn’t available, it’s going to die because every member is supposed to be there. Mr. Allen’s end of the conversation. How about you and I go for a ride. Why not just don’t show up. PK and RS say that won’t work. They’ll figure out what’s going on and call for a vote. All you’re going to do is hurt VK and you’ll get into trouble.
Can’t reach K. BA goes to McDonalds and meets VK. On way back to hotel. He pulls out $5-600 out of his pocket and sticks into VKs hands. BAck to 604 talking about how plan wouldn’t work, Allen turns to VK and says, “I wouldn’t done it to you.” VK says, ”I would have done it for you anyway Bill.”
Aug. agents went to Wasilla and interviewed him. Asked if he ever received any money from BA or RS for personal use and campaign expenses. When they asked him to elaborate, VK said, I’d like to reflect on that. Later he says, I only received personal gifts, the value was in hundreds of $ and he didn't keep track. Had asked for help on the $17K credit card debt. The only time I ever took cash was that one time in the suite. It was about $100 bucks or so.
As you listen to evidence in trial. Keep an open mind. Render a true and just verdict in this case. You will find him guilty of receiving benefits in return do favors for those supporting him.
2:31 Break
2:43
Defense Attorney John Henry Browne's Opening Argument
Thank you. I’m honored to be able to participate. It’s an honor for me and you also. Want to thank you for your attention. Interesting that you aren’t taking notes for opening. That makes sense. What we say is not evidence. I’m going to tell you in context, what I think this case will present to you. Top of jigsaw puzzle. I think this is what is going to look like. But it may not. This is not supposed to be an argument. Just supposed to give you an overview of what I think the jigsaw puzzle looks like.
A little out of context, response to what Botinni said. ONe important thing - evidence will show that there are many legal ways to make political contributions to candidates. One example - Haliburton company donated to Bush and Bush listened to Haliburton company. But that is all legal. As long as you declare. People who contribute to your campaign are people you will want to listen to. Not a lot, but about 8% of the money for his campaign where he was elected 7 times with over 60% of the vote. 8% or less. Still a lot of money. Veco was a contributor to VK like Haliburton contributed to Bush and Environmental Defense fund contributes to Democrats. That’s how it is done and is legal.
Talk about fundraisers will be legal fundraisers. Mr. Allen, I will warn you, i will use some of the language. Allen thought he owned the world. He made comments like “I owned so and so’s ass.” They drank a lot. My client doesn’t drink, doesn’t swear. He says I own politicians’ asses. He includes Don Young and Ted Stevens. I own them. He donated lots of money legitimately to a lot of political campaigns. Responding to what Botinni said. This huge bill very important, economy going down a bit because oil production going down. Lots of people saying we need a pipeline, from all poltiical groups. REason bill didn’t go to Vic’s committee, which it normally would have done, was because BA, RS, Ben STevens didn’t trust Vic Kohring. That group, people’s whose asses were owned by BA, didn’t want it to go to VK’s committee. When PK said to Allen and Smith said, you will never get VK to vote for ppt, he had never voted for a tax in his whole career. PK is laughing at them. Ar you crazy? In one vote, VK was the only legislator in house or senate to vote for ppt. They knew they couldn't send the bill to his committee. He’d signed the American taxpayer’s pledge. Pledge never to vote to increase taxes. People who believe that believe enough money generated thru taxes to take care of things, and if you trim back bureaucracy and $150K executives, you can run the state fine. VK has signed this pledge and lived by it his whole career. I don’t know that the government knew this until recently.
VK never voted for any ppt legislation every. If the object is to get the legislation passed. Important for you to know that VK never voted for it. Ever. They knew he’d never vote for the tax. They knew they had to do everything they could. I ‘ll read it to you: “Don’t use this opportunity to go whacko on us” VK reminds them: That is is position that is his philosophy.
During presentation you just heard, VK never voted for ppt. New info, I never heard it before of any meeting at McDonalds or any effort to get VK to kill bill. Let’s see if they can prove that. I never heard it before.
This intern, did something very symbolic of the integrity of this case. I like that word - integrity - based on several things that never happened. Let me talk to you about the Easter egg. VEry symbolic.
BA felt sorry for Bill. BA cultivated friendship. VK felt a friend of BA. Even though very different life styles - VK doesn’t drink, smoke. Talking about easter, BA, whose been drinking. YOu know what I do with my kids, get little plastic eggs, put money in them and hide them. VK loves his daughter. BA actually talked to VK’s daughter, whose Russian. Mr. K’s wife is russian and step daughter’s is russian. BA’s girlfriend at the time was Russian and her daughter too. Here’s some money. BA will tell you he felt tremendous sadness for VK because VK lives within his means. BA is a multi multi millionaire - at least $100 million. VK sleeps in his office in Juneau. in Wasilla lives in a trailer. BA concerned VK didn’t have enough money to eat.
BA says, here, take some money, put them in the easter eggs. What B. left out of the conversation, VK says thanks a lot. I got the money to go home, we went to church we had an incredible time because I put all the money you gave me into the easter eggs.
If they can be characterized as gifts, there can be no crime there. Another 15 or 20 minutes]
At some point during conversations with BA and RS, um, VK tells them, often, I can’t vote for ppt I can’t vote for any tax. If you want to restructure this legislation, and he believed it was good for AK, and turn it into a fee and not a tax, then it would be something I could support. He tells them that.
Govt. says sometime in 2003, allegation made in last two weeks, Mr. K did something to release a bill from his committee because BA told him too. I believe not evidence to support that, except for BA. In addition to alcohol problems BA had, he had a very serious motorcycle accident without a helmet, BA this millionaire who uses fuck, shit asshole in every sentence. It is his testimony alone that says this.
BA will tell you he made a deal with the govt. to save his children from being prosecuted. Is there anything we love more than our children? BA made a deal with the govt - the G really owns his ass. If he satisfies them he probably won’t go to prison as long as he expects and his children won’t be indicted. And Veco as a corp will not be charged as a defendant. Corps can be charged as defendant. Part of the deal was that VECO would not be charged. Then Veco would be worthless. Who would buy Veco if it was under fed indictment. In addition to the 50-80 million he made from sale of Veco - he was allowed to keep $500,000 to pay for his attorneys. This personally makes me feel really bad. You’re going to plead guilty, make a deal with the govt. your kids not charged, the corp not charged, and you’re going to spend $500K to plead guilty.
BA and RS made a great deal, and this is what you will hear. You’ll hear about people who will kiss their asses, They own, I already told you. Ben STevens Ted Stevens, Pete Kott, and once they threw in Kohring’s name. Ben Stevens had a consulting contract with Veco that gained BS $250,000 a year while he was a legislator.
The money they are talking about giving this guy is less than $3000. They are bragging about people they own. They paid BS $250k/year. They owned Kott because he inflated the bill, he made $10K more graft money to do what BA told him to do. They did vote for ppt. They did take a lot of action for ppt. They did a lot for their $250K. Mr. Anderson also had a contracting job for Veco. Not required to do anything BA will tell you and BS didn’t have to do anything. And they’re giving money to VK for easter eggs.
I don’t know what to say about this allegation bout trying to kill the bill. We’ll see what they say.
He’s known as gentle giant, few people taller than me, he’s one. He’d stay in his office til 2am where he slept because he couldn’t afford a home. He would always return every constituents phone call. When not working in legislature. He’s a sheet rocker. He doesn’t live in a multi-millionaire. He’s a sheet rocker and refuses to be bought. Somewhat controversial because of his no tax pledge. He’s never violated in the seven times he was elected. He will explain to you why. He things taxing corps and individuals hurts economy in the long run. If you really don’t want to hurt the economy you don’t tax individuals too much or corps more than already.
Met ba because of the russian women in their lives and their children. Did legal fundraisers - you’ll hear of APOC - keep in mind only 8% of his campaign money about $80K - came from Veco.
What’s important about, BS made all this money and Anderson made all this money from Veco and Kott also and promised job from Veco, what’s important, they all voted for ppt. Which Botinni admits is what Veco wanted to do. Mr. K never did.
Mr. K would from time to time in his recordings say, “i’ll help you guys try to get this point across. It was the gov’s bill. You understand, I didn’t , these bill oil companies wouldn’t make any investments in the pipeline unless they had certainty thru this ppt bill which VK always voted against. In these tape, if you don’t take them out of context, you’ll know what was said. He says, You know my philosophy you know I can’t vote for this, but I’ll help you get your point across. BP, Conoco, whats the other one? would invest without being taxed. Believed pipeline good for AK.
Checking his notes.
Let’s talk about what was actually said. You heard something about mr.K firing one of his aides because BA told him to Eric Musser, you’ll see from emails, he left, not fired, the emails themselves say, VK wants him to come back to work. But the Govt.s argument is that he was fired, at will employee. Mr. Musser was ragging off some really good friend of ba there were phone calls. VK didn’t know about the complaint. I don’t know if Musser will be awitness or not.
How much time your honor? about 7 min.
Tom Anderson, had a contract with Veco to do nothing
Pete Kott, speaker of the house at one point, inflated one of his invoices, made $10,000 or more.
BW, don't want to talk about him, his case is on hold, you’ll hear about his son in this trial. FBI, BEn stevens, John Cowdery, Bev Masek, Don Young Ted Stevens. With these huge names, and then you have VK on his couch in his trailer.
[He did the next part really fast, and this isn’t even close, but the best I could do. I’m guessing one point was to show the profanity these people used and how they bragged about owning all these politicians.]
Direct quote: conversation between Smith and Allen: March 6. They have all this stuff.
S: Well you will always coer my ass
BA; you too
S: Thank you cuz, I told that little gal, whose all fucked up,
BA: Which one?
S: Theres’ som any of them
BA How many times have we gotten out of spots
S: Oh Jesus
BA O Shit, even before with old Jerry Ward. That was all horseshit
S: We got PK
BA And on and on
What about Rick Halford, we owned him
S: The list goes on and on
But we’re still here, absolutely
S; I don’t have a prob.
A: We know what the gov wants. And we got Ted. And we got DY?
Who’s name is not mentioned in that diatribe? VK.
Go on about who they own. Kott. Anderson, Give them a fake contract.
Anderson asking about getting $ for doing nothing. Lots of money. Anderson is worried about this. Don’t sorry. Is Ben stevens worried about this shit? Hell no. Then why should Anderson be worried.
These are the guys who got bribed, not VK
Keep in mind all of them voted for and lobbied for Veco and ppt. He did not.
Then discussions about how VK told them time and time again, he would not vote for it because it was a tax. How he wanted to borrow, went to BA because V thought he was a friend. That went no where because they knew he wouldn’t vote for them.
OK my time’s up, you’ve been paying close attention. VK’s life changed completely when he borrowed BA’s truck. Tells FBI complete truth in 2.5 interview, could be charged with perjury if he lied. Wasn’t charged. They took 30,000 documents and didn’t find anything.
Please, please keep an open mind. This is really important.
