Showing posts with label Murkowski. Show all posts
Showing posts with label Murkowski. Show all posts

Tuesday, October 23, 2007

Kohring Trial Day 2 - PM Opening Arguments

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.


Sunday, October 07, 2007

Who's Writing Dan Fagan's Oil Columns?

Today's Dan Fagan column was, what, his third or fourth on oil? Has anyone besides me noticed that when he writes about oil his style changes completely? The normal stream of conscious ramble that we hear on his radio shows and the rest of his columns is gone. When he writes about oil the columns have a real structure, lines of argument with supporting facts. (Remember facts don't have to be true, but they are concrete enough to be tested for truth.) The closing lines actually bring some closure by referencing the beginning. Today he starts with a McCarthyism theme and brings us back to it at the end.

So, does the ADN have some kind of written agreement with their regular columnists in which the writers say that what they write is their own writing, and they aren't having others supply them with a draft or more? I don't know for sure that Fagan has ghost writers, but the difference in style between most of the articles and the oil articles is really pronounced.

So who might be writing the oil pieces? The Voice of the Times regularly represented the oil industry in their columns, in fact they were owned by Veco, now CH2M Hill. OK, so Allen and Smith are out of the picture now, but they probably had people writing the columns for them anyway. Are those folks still at it, helping Fagan now?

The basic points seem to be:

* The PPT tax is giving Alaska an extra billion so why change it?
* Tax high and you get nothing, tax low and you get a lot
* Government is bad, oil companies are good
* Keep the tax climate stable
* Sarah Palin's an idiot to want to change the PPT tax (on the other hand she's clever, go figure)
* The tax wasn't corrupted by VECO, they didn't get what they wanted.

Here's a comparison of what appear to be oil industry talking points.

Notes: Fagan Column Sept 2, 2007
John Shively, President Resource Development Council, August President's message
Gail Phillips, Voice of the Times, 10/6/07

Of course, 20% was the amount the oil companies agreed on with the Governor Murkowski. We know that good bargainers don't start out with what they are willing to accept. They probably would have been happy with 25% or even 30%. But I'm not here to argue the facts, but the style and the lack of originality of the columns. Here's another comparison:




Notes: Fagan Column Oct. 7, 2007
Alaska Oil and Gas Association (AOGA) Pioneer TV Spot
Gail Phillips, same link as above

My point is that even if someone else isn't giving Dan a draft to work from, he's not being an original columnist on oil, but is merely giving us the oil company's talking points. We had that with the Voice of the Times. And after the Veco, I mean, Kott trial, we know that they were doing more than passing out talking points. Isn't this enough reason to give Dan his pink slip?


If not, there's another problem. Dan is starting to repeat himself. Below you can see what was in the June 17 column and what reappeared in the October 7 column.


June 17, 2007

In Canada the government wanted more cash out of companies developing oil sands in Alberta. So Canadian politicians lowered royalty rates.

That's right, lowered them. What happened? Alberta's oil sands royalty revenue increased 12-fold in just three years. Lowering royalty rates made oil sand development palatable for industry so they invested more.

Then again on October 7, 2007

Remember what happened in Canada? The government wanted more cash out of companies developing oil sands in Alberta so it lowered royalty rates. Lowered them. Those politicians must have been shills of the industry, corrupt and anti-Canadian.

What happened when royalty rates dropped? Within three years, Alberta's oil sands revenue increased 12-fold.


I don't agree with the people who want Fagan's column cut because of his views. But if he's not really writing his own stuff, if he's getting drafts or talking points from the oil industry, then he shouldn't be a regular columnist. And if he's running out of things to say and has to pad his columns with things he wrote just a few months ago, then it's time to bring in someone fresh, someone who can write original, thoughtful columns.

Thursday, September 27, 2007

Pete Kott Trial - Department of Justice Press Release

Below is the Department of Justice press release on the Kott Trial. While they list the charges Kott was found guilty of, they neglect to mention that he was found not guilty of wire fraud.

The also call PPT "Petroleum Production Tax." There is a page on the governor's office website lingering from the Murkowski Administration that also calls it the Petroleum Production Tax, but everything else, including people involved in the Kott trial, called it Petroleum Profit Tax. They seem to puff it all up a bit. It's a good thing the DOJ attorneys are more careful with the details than than their press room.

They also note that Allen and Smith "pleaded guilty in May 2007 to providing more than $400,000 in corrupt payments to public officials from the state of Alaska."
  • Kott got about $11,500 (the poll, the $7,992 check, and the $1000 in cash).
  • Ben Stevens got about $200,000 in consulting fees for doing "not a lot."
  • Kohring got $1000.
  • One to four workers to work on Ted Stevens' house for a couple of months. Roughly at $20/hour for 40 hours a week, for three months, for two workers that would be just under $20,000.
  • Murkowski got a $20,000 poll that came out in the trial.
If we add all these up we can account for about $250,000. That leaves another $150,000 unaccounted for. We know he paid Tom Anderson about $2500/month for six months, but that wasn't during the legislative session, and Anderson wasn't charged on this. If I recall correctly, Weyhrauch was charged with arranging for a job, but he never got it or paid, so that shouldn't count in this. There are the other polls Veco did for other Alaskan politicians that were mentioned in the trial. So it would seem there may be some more surprises to come beyond what we already know.

Anyway, here's the press release.


______________________________________________________________________________
FOR IMMEDIATE RELEASE CRM
WEDNESDAY, SEPTEMBER 26, 2007 (202) 514-2008
WWW.USDOJ.GOV TDD (202) 514-1888

FORMER ALASKA STATE SPEAKER OF THE HOUSE
PETER KOTT CONVICTED ON PUBLIC CORRUPTION CHARGES

WASHINGTON – A federal jury in Anchorage, Alaska, has found former Alaska state representative and former Alaska Speaker of the House Peter Kott guilty of bribery, extortion and conspiracy for corruptly soliciting and receiving financial benefits from a company in exchange for performing official acts in the Alaska State Legislature on the company’s behalf, Assistant Attorney General Alice S. Fisher of the Criminal Division announced today.

Peter Kott, a member of the Alaska House from 1992 to 2006, who also served as Speaker of the House from Jan. 1, 2003 to Dec. 31, 2004, was convicted yesterday following a 15-day jury trial in Anchorage, before U.S. District Judge John W. Sedwick of the District of Alaska. The jury found Kott guilty of conspiracy, extortion under cover of official right, and bribery.

Kott was arrested following the unsealing of an indictment on May 4, 2007, charging him, one former and one current Alaska representative with various public corruption offenses. Kott faces a maximum sentence of 20 years in prison on the extortion charge, a maximum sentence of 10 years on the bribery charge, and a maximum sentence of five years on the conspiracy charge. Sentencing is scheduled for Dec. 7, 2007.

“This verdict is an important victory for the people of Alaska, who deserve to expect honest, ethical representation from their elected officials,” said Assistant Attorney General Fisher. “I thank the prosecutors and the FBI and IRS agents who worked on this case. Their effort shows that the Department of Justice will work hard to bring to justice any elected officials who betray their duties to their constituents.”

“The jury has found that Mr. Kott accepted bribes from VECO in exchange for his official acts as a member of the Alaska State Legislature. The citizens of Alaska have the right to responsible public officials representing their interests rather than filling their own coffers,” said Deputy Assistant Director Daniel D. Roberts, FBI Criminal Investigative Division. “Battling public corruption at all levels of government is one of the FBI’s top investigative priorities, and no corrupt public official is exempt from FBI scrutiny.”

At trial, the jury heard evidence that Kott, while serving as a member in the state legislature, solicited bribes from and took action to benefit the financial interests of VECO Corporation, a major Alaska oil services company. Trial evidence, including more than 60 recordings of conversations involving Kott and former VECO executives, showed that Kott repeatedly promised to cast votes in VECO’s favor on a key petroleum production tax proposal pending before the Alaska legislature. In exchange, Kott received cash, checks and the promise of a future job with VECO.

The VECO executives who testified at trial, former Chief Executive Officer Bill J. Allen and former Vice President of Community Affairs and Government Relations Richard L. Smith, pleaded guilty in May 2007 to providing more than $400,000 in corrupt payments to public officials from the state of Alaska. Currently, two other defendants have been charged in connection with the Justice Department’s ongoing investigation, including former Housemembers Victor H. Kohring and Bruce Weyhrauch. Thomas T. Anderson, a former elected member of the Alaska state House of Representatives, was convicted in July 2007 of extortion, conspiracy, bribery and money laundering for soliciting and receiving money from an FBI confidential source in exchange for agreeing to perform official acts to further a business interest represented by the source.

This case was prosecuted by trial attorneys Nicholas A. Marsh and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, headed by Chief William M. Welch, II, and Assistant U.S. Attorneys Joseph W. Bottini and James A. Goeke from the District of Alaska. The case is being investigated by the FBI and the Internal Revenue Service Criminal Investigative Division.

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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.

Kott Trial - Assessing the Closing Arguments

What's a good way to assess the closing arguments? [I've posted my trial notes already under Prosecution Closing I, Defense Closing, and Prosecution Closing II, for a rough, running account of what they said. You can also listen to the Closing Arguments on the ADN website.] The most immediate way to assess is your reaction at the end. So I'll give an incomplete version of that here, having had 24 hours to digest things.

The government's case started by saying it was about public trust which he said was betrayed for greed. Then we went right into the charges and the evidence.

[Again, my courtroom notes are approximate]
Goeke: Mr. Marsh told you it was about public trust. People chosen to rep neighbors on legislature.
four crimes - putting interest of public aside for his own - greed
conspiracy
extortion
bribery
wire fraud
He said the official acts taken by Kott were numerous and he'd get into those. Then he listed four specific instances where Kott took something of value from Veco.

$7,993 check for flooring work
$1000 cash [payment for contribution to Murkowski]
political polls
lucrative job
Then that the evidence was unique:


hours of electronic surveillance you the members of the jury have been able to sit in a ringside seat as they committed the crimes in the indictment

Then he went through the instances where the tapes showed:

  • that Kott did some official act - talking to other legislators, maneuvering to keep 20/20 in the ppt bill or if he couldn't, to kill it
  • where Kott said on tape that he'd be for 30/30 if it weren't for this guy here (Allen)
  • that Kott told Allen and Smith that he was working to get their interests met
  • that showed he expected a job
  • how they conspired to play with the invoices for flooring work (that was never done) to pay for Kott's son as his campaign manager
  • how Kott talked to Smith about the poll Veco paid for, said they might do another
  • that Allen gave Kott $1000 to cover the contribution Kott had made to the Murkowski campaign
There were lots and lots of examples. Watching these for the second, and in some cases, third or fourth time, it began to sink in how they fit into the case.

He went on to talk a little about the charges. He said about conspiracy:

Agreement is just an agreement of 2 or more to commit any one of those crimes.
Did defendant become member of conspiracy?
one of the member performed an overt act. means they did something to advance it. Floor vote, talked to a legislator many things
He talked about the other charges and a little about the jury instructions.

At the end it was pretty convincing. Despite what the defense has been saying, it's all there on tape.


Then the defense started.

I had my closing prepared, but making a detour based on what Goeke said. He talked about PK’s greed. Not a shred of evidence that says he was a greedy man. He works hard for his money, never asked anything from anyone, offered to put in Allen floors for free. This isn’t so. PK isn’t a greedy man. I’m sure you’ll find that.
You know, he's right. Kott's weakness wasn't greed. He did work hard for his money and he didn't have his hand out much. It wasn't money he needed from Allen - hell, he had $30,000 in cash in the closet - he needed approval, and I think he very much enjoyed being close to power. The prosecution did identify four clear instances where he got a financial reward, but for most of this he got an ego reward. I don't think where the law says 'something of value" it isn't referring to ego stroking. But if someone trades his official duties for power and ego stroking isn't that just as bad as doing it for cash? In any case, the defense did have a point here - it wasn't greed.

He went on to deconstruct the prosecution's argument. He was articulate, he was passionate, and he offered details. Even as he was doing it there were times when I thought he stretching things to find a favorable interpretation of the facts for his client. But it was creative.

He cleverly told the jury that all the voting evidence that he said proved that Kott wasn't Veco's water boy, was stuff the "Government didn't show you. We showed you. They didn't want you to see it." I thought that was a powerful argument, unless you looked more closely and realized that when the government went through this and other evidence raised by the defense, it seemed to show the opposite of what Wendt said it did. The government, for instance, pointed out that while there was a 'yes' vote recorded for Kott at the end of 20/20 fight which showed according to Wendt that Kott had voted against Veco, he had really voted 'no' and when his side lost anyway, after the fact he changed his vote to 'yes' so in the upcoming election he could tell his constituents he voted for the people. There were a lot of things like this.
Jan 20 conversation @ horsepower. Conversation about Chris knauss and jim clark. JC with administration. ba and rs wanted jim clark to think highly of them. Talking about how chris knaus made them look back in front of jim clark. You don’t think people talk like this all the time “who do we have?” the sierra club talks like that everyone does. Nothing criminal about it.
He took individual incidents and found a different interpretation. This would make sense if there was just one isolated incident, but the collective impact of all of them suggested to me a very different conclusion than Wendt was pushing.

W: Why did I play that? The govt says this is tying everything in. Govt. get gasline and I’m going to get barbados. They laughed. He sounds despondent. and he says, and I’m going to get my job in barbados. Then he says shit. Excuse my language. He knows he isn’t going to get anything. I’m going to get my job in barbados is equivalent to I’m gonna gt nothing.” And then they laugh.
Here Wendt takes this, as Allen or Smith told us, use of Barbados as a code for a good lobbyist job, and reinterprets the situation to be a sad one where the others were laughing at the pathetic Kott who wasn't going to get anything out of this. But, one could ask, if he never was expecting to get anything, then why would he be unhappy? If all his actions were with no expectation of anything in return, why would be upset? But Wendt really did work hard to make lemonade in the closing.

In other cases, particularly with the voting records on the ppt legislation, it seemed he was loading the jury with so much detail that they might get so confused that they would simply say, 'well, maybe he didn't support 20/20."

And he pointed out that despite what Allen and Smith said about their plea bargains, their motivation to be here was to reduce their jail time and he suggested if they do a good enough job, they won't spend a day in jail. While the tapes talk a lot more directly to the jury - and prosecution pointed out that for all but one, no one knew they were being taped - it wouldn't be fair for Kott to get a greater penalty than Allen and Smith.

He also talked about the 'plan' that is needed for conspiracy. The only plan they had was to pass the ppt and get the gasline moving. This was something Kott has wanted to do since 1992. There's nothing illegal about pushing legislation that will help all Alaskans he said.

He ended, I think, a little carried away with this project of his to make Pete Kott into a victim

He may be a drinker, he was shooting his mouth off. The govt. wants you to believe where there is smoke there is fire. They’ve only showed you the smoke. Sometimes where there is smoke, all there is is puffing. Puffing. Acting like a horse’s mouth. He’s never done ex, etc. Never did anything for ba except to work with them for what they wanted to accomplish. Pete Kott believed we aren’t going to get a pipeline unless we get a ppt. A republican gov.introduced a bill supported by a republican representative. Shooting his mouth off. Now he has pictures of himself on the internet for his grandkids to watch. He spent years in the legislature and in flooring and the Air Force. And it’s not funny, sir.
Well, as I review Wendt's closing, it seems to me the smoke and mirrors were on the side of the defense. And the juror who smiled and provoked the "And it's not funny, sir" comment from Wendt, possibly thought so too. But he raised some legitimate issues and muddied the waters enough on others that it could raise some reasonable doubts for some jurors. No, Kott probably isn't ruled by Greed. It probably won't be fair if he ends up getting a longer jail term than Allen or Smith. And when they try to figure out the plan in the conspiracy charge, will they only think of the plan to push the ppt through? That isn't like planning a bank robbery which is clearly illegal.

Nicholas Marsh did the rebuttal for the prosecution. And addressed many of the issues Wendt raised, particularly the voting on 20/20. It was calm, reasonable, and he was talking to them from more than the brain.

This is one way of assessing the closing arguments. And I'm afraid that after being in trial mostly for two weeks I had some things to catch up on today, so I didn't do it justice.

But, it seems to me, that the most appropriate assessment of the closing arguments will come from the jury. So really, the best way to evaluate the closing arguments then, is not to go through them as I just did, but to pull out the charges and see if you can pin the facts necessary to convict on those charges. That's what's been holding this post up. Trying to figure out how to combine this post and that. I give up. I'll post this as it is and then try to go through the charges in the next posts.



If you want to know more about Closing Arguments in general click here.

Monday, September 24, 2007

Kott Trial Day 14 - Defense Closing

I've put a long introduction on the first of today's posts - the Prosecution Closing I. Read that for all the caveats and disclaimers. These are rough, typed in court notes. They give you a sense of what was said, but they ARE NOT RELIABLE. Parts are missing. The attorneys spoke faster than my fingers can type.

Again, go here if you want to find the actual audio and video tapes that match those mentioned here.

[Added Sept. 25 - Links to the audio of Mr. Wendt's Closing. From the ADN website.
Defense attorney, Jim Wendt:
- Part: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 ]




10:11 Wendt [lead defense attorney] - I had my closing prepared, but making a detour based on what Goeke said. He talked about PK’s greed. Not a shred of evidence that says he was a greedy man. He works hard for his money, never asked anything from anyone, offered to put in Allen floors for free. This isn’t so. PK isn’t a greedy man. I’m sure you’ll find that.

It is true what you heard in the opening from the worthy attorney from DC this is about trust. They want you to think that pk violated the government’s trust. He hasn’t violated any trust. Always held to his principles. He was a hard worker. Whether putting himself to school, in the service , grad school, on his knees putting in flooring, in the legislature, he was a hard worker.

This principle of hard work is the bedrock of what pk is about. Everything towards a goal and he wants to get that goal. He’s never asked anyone for anything. He’s worked for what he has. Corrupt? We all have our own definition. PK is not a corrupt individual. Not about trust, but about work.

Remember what EB said about legislation. it’s like sausage, you don’t want to see it being made. It may not be pretty but that’s how it’s made . Not pretty.

I want to go over the case:

Wit. 1 - called by govt. very interesting, knowledgeable guy. Pleasure to hear him speak about ppt and explain. When he was working on ppt he was part of admin. He supported 20/20.

Some witnesses I don’t understand why called.

Sudan Lowell - said pk was speaker of the house

STeve Dunphy: fbi agent - here for one purpose to sit on stand while all govt tapes they wanted you to see, about 58 tapes entered into evidence. in cross exam, agent dunphy said there about 1500 calls intercepted on ba’s phone. About 6500 on ba’s cell and about 9000 on rs cell phone. About 17,500 phone calls and you had 58 tapes, maybe 40 phone calls. You can bet the 40 most damaging one s have been presented. In addition there were video taping from janu to mid june. 12-16 hours some days, others no video at all. Maybe an average of four a day = >600 hours of video. You got , what, less than ten hours. That is what AGent dunphy was here to do

Carla here just to enter travel docs to show pk was outside of ak when he made the phone call

BA and RS - talk later

Brooke Miles - about packet sent to all legislators
Linda Croft = BA’s secretary had written two checks
Jennifer Ferguson about checks going thru the Key bank
Dave Ditmann
Bruce Milne -FBI agent, pk said he did nothing wrong. $7,993 so my son could work on my campaign.

And that was the govt.’s case.

Before I go to our case, want to show what govt. didn’t show you. They could have brought in legislators, but they didn’t. Mentioned three legs Gab. LeDoux, EB, and Fred Dyson. Claimed PK held up Dyson’s abortion bill. Where is that? It doesn’t exist. Didn’t happen. Talked about it, but it didn’t happen. He voted to get it out of committee before ppt became an issue. pk never told Sen dyson anything. They could have brought dyson in to testify about it. pk did nothing to harm that bill, but instead voted it out of committee and voted for it on the floor.

pk did one thing only, voted to get the ppt bill the way he wanted. We presented legis for you to see exactly what he did. Rep LeDoux said that is what we do, we talk to people about legislation. EB said he had no control over Croft or Crawford. Prosecution suggested pk used trickery. Why didn’t govt bring in these legislators? Because they don’t support the govt’s case. The legis who were allegedly manipulated by pk weren’t. It was not good for a legislator to come in to testify for the defense, but we brought them in and they came.

Govt. didn’t bring in actual legislators, rested their case on ba and tapes.

They didn’t tell you about pk’s voting record. Because his record doesn’t support their theory. We brought it in and went over it line item by line item on PPT. Showed his voting record on other bills. You saw he never did anting contrary to his principles. Pro-labor and pro development. He’s never changed.

Govt. didn’t present his voting record because it doesn’t support their case. They didn’t bring it in. We did.

We brought in

Dr. Clive Thomas - talked about legislature - stage for what Pete Kott could and couldn’t do.

Peter Kott - he was determined to finish the flooring jobs
Brooke Miles - showed the pk made $1000 contribution to Mrk campaign the day he allegedly got $1000 from ba

PK answered all the questions even when they were shouted at him

LeDoux
Ohmer - nice woman, worked for pk for many years. RS upset one day and pk not changing. and that pk had a drink. What you see on these tapes is pk drinking, not on the floor of the house sober working for his constituents.

I told you what pk did not do. Now I’m going to tell you what he did do.
You’ve heard a lot of tapes and phone conversations. Exposed not only to picked out tapes, even portions cherry picked out of context. What I have now is an illustrative dramatization that shows when things are taken out of context. Dim the lights please.

10:29 Technical difficulties - power point, trying to get it started.

10:30 didn’t work

Power point - Walk thru highlights

Sept 05- Aug 2006

Making time line
9/26/05 - initial call pk, says, i wanna job - He’s asked, what do ya need. You gotta job, get us a pipeline. I wanna be a consultant like Knauss.
That is it. This is indicative of pk asking for a job from VEco. There are 1000s of phone calls and this is all they’ve got. He’s not a legislator now, it’s out of session, he’s putting in flooring at the gym in Kake. Out of communication. Not in Junau, ER, Anchorage, he’s in Kake.

Happy New Years call - to get instructions. There are none to give. There’s no ppt bill, he’s been out of the loop in Kake, and calling the man he relies on for the man he trusts for oil and gas information. What does that mean - what are my instructions? - does that mean tell me what to do an I will do it? It means, “I wanna hear from you, your an older and wiser man, what do you think? I wanna hear from you.” I’m doing this with Ms. Simonian who you probably figured out is a lot more aware political than I. I don’t know about that Would you think it unusual if I leaned over and asked Ms. Simonian and asked, “What do I do now?” He just wants to talk to ba, hear what he has to say about upcoming legs.

June 11, - call about getting the gasline. PK always for gas pipeline. You’ve seen his campaign literature from 2002 and 2004 he’s always been for a pipeline. And that’s the discussion here on June 11. At this time talking about common goal. Gov. not helping much

June 14 another call. Here, rs says to pk 25% might kill us. pk says 25 is done. He’s saying at 25% we’re not gonna have a pipeline. If you listen what he actually says is, then we’re dead so is the state.

Jan 20 conversation @ horsepower. Conversation about Chris knauss and jim clark. JC with administration. ba and rs wanted jim clark to think highly of them. Talking about how chris knaus made them look back in front of jim clark. You don’t think people talk like this all the time “who do we have?” the sierra club talks like that everyone does. Nothing criminal about it.
Feb 21, 2006 Gov. introduces ppt bill. PK has nothing to do with it cause he’s not on any of those committees.
3/10 phone call - yes, call to get a phone number. No question about that. When pk calledspeciclly asked, got thurwacker’s number. Then T comes in. the T talks to rs. What happens then? Call is minimized. Because fbi doesn’t think it interesting to listen to. Nothing unusual about it. Had there been, then the call wouldn’t have been minimized. then T gets off and off hand conversation about what they’re going to do about Marathon, idle chatter, we gotta get an exemption, rs I’ don’t really like them. Mentions $73million, min revenue before ppt kicks in - they already have some sort of exemption. When you listen to whole tape - you’re my best buddy, I’ve got a lot of best buddies. Govt. wants you to think that’s wire fraud. Where’s the plan or scheme in the phone conversation There is none.
3/15 [all these being added to dark blue background power point slide with yellow boxes.] pk stating to rs and ba what and why he believes. You don’t here him saying, “this is great I’m going to get a good job.” No, this is what we need, if we don’t get it, long term Alaskans will suffer. That’s what he says.

April -May slide
4/ Barbados call. This is the call where the govt says PK tied everything together. You guys are going to get the pipeline and I’ll get my nice job in barbados. That’s what the gov. says. But let’s listen to phone call - apparently we have a problem here, this is not working. It’s working on the computer. Perhaps I can talk about something else and you put the other computer on.

To the jury. Apparently we’ve switched computers. I’ll continue with my closing and then we’ll get back to this. Lights?

actually this is a good time to take a break and come back. Room 604, the Animal House. Well known. 100’s of hours of video and you know, it wasn’t just pk who went there. RS and ba inviting anyone to come up who wanted. Lobbyists, legislators, staff members. What was it? A place for boasting and banter, fueled by alcohol. Boasting and banter. And that’s the core of the govt’s case. Govt. resting its case on the animal house as though what goes on there is somehow reliable. Granted it was among men who should have known better . ba and rs blameless? No. Both had over $400K in

pk has $11,000. Not only were they risking their freedom and their children’s freedom and Veco if it were indicted as a corporation. A full account of that is not presented here, but it has to wait till another day. You know about the house renovation, pig roast and other things hinted at. They weren’t worried about this case. They weren’t worried about that.

PK is the one man who never took anything. BenStevens had contract for $100K. Tom Anderson had a contract. Sen. STevens had his whole house redone. While PK was on his hands and knees doing flooring. These other guys didn’t have to do any work. He didn’t ask for a dime, he didn’t ask for a job then. The govt. is taking from 100’s of hours of tape they are taking out a few innocent conversations out of context and comparing that to these other men who got so much from ba and rs. PK never got anything. That’s what happened, in essence in the animal house. You don’t thing there are tapes you havnt heard of these other men getting their share? Just pk drinking too much. Things that don’t comport with the voting records

Look at screen. Is it gonna work. If you take something out of context.

starting up. black screen. back to power point. Bak to black screen. power point. black.. arrow going around the screen.
Apparently it doesn’t work. Does the audio work?

And I get... on the screen. If it doesn’t work, it doesn’t work, I’ll just have to read it to them.

This is what I’d like you to do, if you will

can we turn off screen off?

W: talking about Barbados and the pipeline. hold on a second here.

Simonion to Wendt - one more

Tape working- Barbados tape.

W: Why did I play that? The govt says this is tying everything in. Govt. get gasline and I’m going to get barbados. They laughed. He sounds despondent. and he says, and I’m going to get my job in barbados. Then he says shit. Excuse my language. He knows he isn’t going to get anything. I’m going to get my job in barbados is equivalent to I’m gonna gt nothing.” And then they laugh.

10:58 April 26, 2006 -

5/7/2006 first time bill hits the floor, Between 4/18 and May 7 you have no tapes. Nothing there. First time pk can vote ont he bill. passed out of finance. 5/6/ I apologize. Passes out of House Finance. They reduced it to 20%. PK had nothing to do with that. now it’s back in front of the house.

May 7 floor debate [power point up May7-9, 2006]

This is not part of power point, but part of the exhibit. You haven’t seen this, but its been talked about. We went line item by line item, you saw that. attached is the actual house journal, you’ll have the whole thing in the jury room This is the house journal that ties into those items. Amendment, raising the 20% to 21%. The infamous BW votes wrong. You can see the yeas and nays. PK voted no. 21.5% passed. Interesting. LeDoux changed to yeah. Original 20-20. For whatever reason, we don’t know why, GL switched from nay to a yeah. After ward. She didn’t switch for the jury. Nothing on the tape about getting Gabrielle to do this for us. this Ms. LeDoux does this and it passes. You don’t hear any of that.

Back to power point now?

Call to rs. I’m going to do rescinding motion Pete calls rs and says 21.5 passed, i’m going to do a rescinding motion. Doesn’t ask rs what to do? He tells rs what he’s going to do. What occurs is rs says to do it tomorrow and he says, “I’m going to do it today.”

[Plays tape. It works!!!] [I think BA said ‘yeah Gabrielle...’ if so, that contradicts what Wendt just said, check the tape. Discussion of who is going to make the motion, better to do it right away.

OK, then there was motion. to rescind passes 22-18. [Looking at Journal on screen]
Can we get back to powerpoint

Back to 20% amendment failed.

[back to journal[ let’s go to next one

[powerpoint] relates to phone call march that govt says is wire fraud. pk votes yes, remember that was what rs originally didn’t want to go thru.

Power point...

Now adjourned may 10. room 604. This is where pk tells rs and ba what he did. I’m gonna tell you how this really came down. you can’t tell a soul, I told EB we can mess this up real good expletives deleted. He’s tell them he got this done, but we know that isn’t true because they were always against it.

I sold my soul to the devil. If you were going to listen to this as though he’s done something illegal. rs what did you do. “I did something with eb that wasn’t totally above board. That wasn’t true. To get ppt. passed.

5/8/ We’re still brand new here. pk says, we’re going to have to go higher. We don’t have this one? that’s ok. to RS

We’re going to have to go to 21. So he’s not sticking with 20%. He’s telling them what is going to have to happen. Working towards a compromise. Hopefully to get a bill that will get a gas pipeline.

May 8 in 604. talk about staying at 20%. Kott says I don’t want to jeopardize pipeline, I’ll stay at 20 and so will others, but I’m not going to jeopardize pipeline.

11:15am Am2 to Am1 offered by kott. He’s given up on 20%, it’s only been there a day and he gives up. And it passes at 21. What is this? OK

Then kelly withdraws and it goes back to 20. But pk voted for 21.

May 8-9 slide

Rates now 21.5 [The power point stuff just isn’t working right, lots of side talk to Smonian (other defense attorney)]

Pete kott votes yes! 21.5 he’s voting yes. He’s not sticking with Vic Kohring and the nays. Next screen.
And then it passes the house. 21.5 PK votes yes. May 9 is the last day of the session

[back to journal on the screen]

28 yes 11 nays you can see pk voted yes. He’s voting for 21.5. Kohring stays at 20. Next screen. Keep in mind, we’re the ones who showed you the voting record. If we hadn’t shown you, all you’d have is the bragging in the tapes.

May 10-June 9

Ohh. this is giving him a thousand dollars in the hotel. And what occurs here. BA specifically says here, you can listen to the tape. Thanks for doing me with your check. He’s paying him back. pk wrote a check to Murkowski for $1000 and BA is paying him back. The govt. didn’t tell you that.

Sen. Bill passes the house at 23.5. PK thinks it to high. 21.5 ok. House rejects conference report.

bragging to bowles. Allen bragging I don’t know who bowles is - senior person with oil.[Jim Bowles is president of Conoco Phillips Alaska,]

June 9- August 10

Offers to do flooring free. BA insists on paying

secret meeting in the bar. Had to go to bar where things not recorded, out in public.

hb 3001 passes the house, pk votes yes. This is important. This is the sliding scale, ba didn’t want it, but pk goes with sliding scale. passes senate at 22.5%

PK says ok 22.5 we have a workable bill. aug 10 special session ends. No conversations about ppt with pk at this time because they don’t help the govts. case.

PK did what he always does. He worked to get legislation passed. He wasn’t working for BA. PK didn’t hold tight to 20/20 when he saw it wouldn’t work. That’s what passed and that’s what we have today.

He may have gone to the animal house, drinking and boasting, but none of that matches what actually happened. We showed you the voting records, they didn’t. They used rs and ba, don’t you think those men desperately want to avoid jail time? If I were a betting man, I think that neither will see a day in jail. Basically, I think ba is an honest man. He wans’t giving pk $1000 as a bribe. Maybe he thinks it will help him get out of jail.
BA says sometimes he’d get up at 6 am and didn’t come back til 7pm because he was out paying his bills. Anyone who works like pk I have a lot of respect. Did you remember a conversation about a lobbyist at your home that wasn’t recorded? When pk got the floors done and I said, what do I owe you and he said “nothing.” PK didn’t want to take his money, but for pk he was uncle bill, He had millions of dollars and people came to him for his money, but pk didn’t have a business association with his friends.

PK was a worker. He may have been a drinker and when he drank he shoots his mouth off, but he was a worker. A man who always wanted a pipeline. If ba disagreed with him on pers/trs and workers comp, that was too bad. pk voted his conscience.

BA was knowledgeable about gas and oil. pk loved him got oil and gas info from him. Been through a hard life. got enormous wealth. Ba is a nice fellow. Don’t know about rs. That’s what pk thought about ba. He loved the man. You don’t think there was any time he couldn’t ask ba for money or a job and wouldn’t have gotten it? he could have at any time and sat in a comfortable chair.

I want to go over with you the jury instructions:

One thing, very interesting instruction, direct and circumstantial evidence. When direct evidence contradicts circumstantial evidence and it isn’t rebutted. then the direct trumps circum. And the voting record is the direct.

Witness manner when you testify. You remember rs, I’d ask a question and he’d look over at these gentleman or his attorney. The witnesses interest in his jail sentence. He was hoping if he did ok, he wouldn’t see a day in jail. they say, there was no agreement. When pk’s house was raided? found an invoice for 5500. It was already prepared. They didn’t know they were going to be raided. There is evidence that contradicts there testimony. Pk’s son truthfully testified and it contradictis. [talking really fast now] I would argue that rs’s testimony is not reasonable. He changed many times.

Statements by the defendant. and how to evaluate those. one thing judge will tell you is to consider all the evidence and the circumstanes. You need to eval circ. under which he made the statements. He was intoxicated and trying to impress uncle bill. In reality he’s compromising and getting ac compromised bill. Fact that ba and rs is not evidence against pk and you can weight that only to evaluate their credibility

Extortion, conspiracy.
Conspiracy, not enough to just meet, you must find beyond a reasonable doubt that there was a plan to commit a crime. there was no plan to commit a crime. The plan was to pass the legislation. How can we get it passed. That was the plan. getting the ppt legislation passed

Extortion - do you really think pk really extorted money from ba? We are torturing the English language to say that. What official action did he take? If you think the poll was given to pk and he got it, then you have to prove he did it in exchange for something specific. You have to tie it in to an act. They can’t do that. It may be an illegal gratuity, but he isn’t charged with that.

Bribery. They have to prove that pk was corrupt. Def. acted voluntarily and intentionally......That’s what corrupt is. They have to prove beyond a reasonable doubt. That he did it in connection in his head in connection with doing a legislative act.

And then the wire fraud. And if that telephone call is wire fraud, I don’t know shaking head... You think that was an important part of scheme or plan. firs there was no plan, they were just trying to get legislation passed.

He may be a drinker, he was shooting his mouth off. The govt. wants you to believe where there is smoke there is fire. They’ve only showed you the smoke. Sometimes where there is smoke, all there is is puffing. Puffing. Acting like a horse’s moth. He’s never done ex, etc. Never did anything for ba except to work with them for what they wanted to accomplish. Pete Kott believed we aren’t going to get a pipeline unless we get a ppt. A republican gov.introduced a bill supported by a republican representative. Shooting his mouth off. Now he has pictures of himself on the internet for his grandkids to watch. He spent years in the legislature and in flooring and the Air Force. And it’s not funny, sir.
I’m asking, go back, come back with not guilty verdicts. This man has suffered enough. Maybe he drinks too much and swears too much but that’s the only bad thing this man has done in his life.

Sunday, September 23, 2007

Kott Trial Day 14 - Prosecution :Closing 1






U.S. District Court for the District of Alaska
Court Calendar for Monday, September 24, 2007
Current as of 09/21/2007 at 5:30 PM


8:30 AM 3:07-CR-00056-01-JWS Judge Sedwick Anchorage Courtroom 3
USA vs. PETER KOTT
TRIAL BY JURY - DAY 14

Warning: This is a long post. These are my notes for today. Actually, I've shortened it by only posting here the Prosecution's Closing, Part I. I'll post the Defense's closing in the next post, and then the Prosecution's part II. Then I'll try to get some briefer overview stuff for people who can't wade through all this.

Very brief overview of today
[Sept. 25 here is a link to the audio of Goeke's closing.
Prosecutor, James Goeke:
- Part: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 from the ADN site.]
Goeke began the closing argument for the prosecution. He was very convincing. Then Wendt put on the defense closing. He spoke with passion. Though I thought he was twisting the facts around a lot (I'll try to explain that in a later post) if you didn't listen too closely, you had to believe this guy. His client was a hardworking man and other than drinking to much and saying some stupid things did nothing wrong. [Yes he said all that, I didn't add any editorial comment there.] Wendt had some technical difficulties with his powerpoint, but handled it well. Then Marsh, calm, respectful to all, contradicted what Wendt had just said. His eyes were directed at the jury. A minimum of technical wizzadry. This was not the wonk who did the closing in the Anderson trial, but a sincere and convincing human being.

I've been stalling a while trying to figure out how to post all this stuff. I went by the bike shop to get a new seat post for my winter bike. I got flowers for Joan for putting up with all this blogging. She did come to court today again to see the closing. I ate lunch at home and iced my wrist which has been protesting these marathon typing sessions. In any case, below are my very unofficial transcripts of the case. I've gone through with the spell checker and tried to make it at least legible. But I've left in some typos and abbreviations to remind you that this is a rough, typed as they talked, didn't get it all, but a lot of it, version of what went on in court this morning. pk=Pete Kott rs=Rick Smith ba= Bill Allen eb=Ethan Berkowitz The rest you should be able to figure out. If not, it's probably not that important. Or ask in the comment box.

8:30 - The 8:30 meeting was to settle outstanding questions about the Jury instructions. It was done in a few minutes and court was recessed until 9am.

convene 9:00
Judge to jury; Govt. has burden of proof thus gets to open and close the argument

THE PROSECUTION:
Goeke: Mr. Marsh told you it was about public trust. People chosen to rep neighbors on legislature.
four crimes - putting interest of public aside for his own - greed
conspiracy
extortion
bribery
wire fraud
[I'll post the jury instructions with all this spelled out a little later]
evidence, largely his own words and actions as recorded on video tape and phone
05-06

[You can go to the ADN website to hear the actual tapes. I've tried as best as I could to put down the dates and times (there are a lot of tapes on May 7 and 8) so you can actually hear what was played in court. If I try to match them in this post, I won't get it up for a week. But they are dated and described at the link.]

Witnesses
Physical exhibits
Pete Kott conspired with ba and rs to conspire in the interests of Veco instead of he people
Evidence overwhelming
PK guilty

numerous official actions in his capacity Nov 05 - Aug 06

$7,993 check for flooring
$1000 cash [payment for contribution to Murkowski]
political polls
lucrative job

Unique evidence - hours of electronic surveillance you the members have been able to sit in a ringside seat as they committed the crimes in the indictment

No one on the tapes, phone, 604 had any idea they were being taped.

Testimony of witnesses in the trial
consider that testimony, whether it makes sense against the audio and video



physical exhibits - how they fit in with the tapes and witnesses

1st phone call Nov. 05 I need a job, you’ve got a job, I’m gonna be a consultant
good insight into relationship between pk and Veco thru smith
Both ba and rs said on stand the gas-pipeline was the most important thing for their company and this was tied up with the gas pipeline - worth billions to Veco and state of AK

PKI just want to be the warden in barbados
RSI just want a gasline

Nov 2005 - whether gabrielle ledoux
PK - I’ll get her in line
GL confirmed that he did try to get her support

voice mail, PK - BA cell Jan 2006 Uncle B. PK here happy new year. Just want to get what our instructions are.

Representative of 12 years calls CEO of VECO for his legislative instructions

Jan 06 tape: I’m gonna get this fkkk gasline done so I can get her out her, Im gonna get her done
BA made it clear he’d take care of Kott if PK takes care of pipeline


Conspiracy concept - agreement that can be explicit or implicitly. Doesn’t require written orders of contract. Can be inferred by actions and deeds.

pk and ba 1/24/06 -
2/20/06 - BA and RS upset chris knauss, lobbyist is taking credit with Murk admin with horsepower Allen gained over pk. We got more money in PK than he can even think about.

Has kott talked to Ledoux - did you hear hi say, “I can’t do that, that would be wrong”? NO

3/4/06 - ba and rs make it clear about their objections
have to get dirty and have to get


3/10/06 - phone call pk from DC. Not just for phone call. You know my allegiance is to.
PK makes clear to rs that pk going to do something for Marathon something VEco doesn’t like and RS makes it clear to pk not to do that. you know where my allegiance is. Evaluate in context it occurred. RS so potential problem. If pk voted for this down the road, not relevant to the context at that time

3/ strategizing

3/24/ pk called smith he gained an advantage over dyson: I’ve got dyson over the barrel, YOu talked to dyson, no i got him over the barrel. Got his abortion bill tied up. He’s hot too. laughing. There’s always a way. When ba tells me he’s ready to vote it out, i’ll vote it out.
You hear an agreement, pk doesn’t say: you can’t do that.

3/29 meeting in 604 - he won’t release hold on abortion bill til ba says he can

?? successful in getting other legislators exhibit 20 explicitly linked his support, you’ll get your gasline, govt gets his bill, i’ll get my job in Barbados

5/7/06 near end of legislation. ONce leg session ended, leg dead
called that bw voted the wrong way.
21/5 passed, bw voted wrong, gonna do rescinding motion. had a couple of dems on our side craw and croft. worst that can happen is it passes again. Ben can’t get the numbers over there. can’t get 20/20.

Crowded courtroom

Smith says, I think we wanna go back and get that
An hour later congratulates pk for getting it rescinded and back to 20/20

later 5/7/06 - met in 604 21-27 Exhibits. pk describes how he got it done
11:43 pm - I had to get it done, I had to come back and face this man here, I had to beg, cheat, steal and lie

pk’s continuing efforts to support - offers insight, no idea anyone is watching
7/06/ I’d vote for 30% tax if it weren’t for this guy here.

5/8/06 v. Now I own your ass
I got it done, see

Later still may 8 v.; you know how to do it. I’ll get her done. I don’t care. I’ll sell my soul to the devil

5/8 during day. BW talk about how to maneuver bill thru
later day - Good job
later afternoon - v. 20/20 appears to be slipping away again. Where do you wanna take this bill. Don’t want to jeopardize gasline, I’ll stay on 20/20 .... [listing who will be on 20]

Seeking directions from constituents? No, from Bill Allen.

Later same day PK calls rs - smith notes kott voted for 21.5 and that he had to do it to keep it from 22.5. He’s happy.

Deadlock caused bill to die. Veco doesn’t want anything above 20/20, wanted it to die to get what they want in special session. Gov. calls special session.

june 1, 06 Allen and pk met in 604, handed PK $1000 in cash. Counts it out. And what did ba say about it. He said it was wrong an pk wasn’t expecting it. PK had already made a contribution to Murko. ba and pk have frank discussion about future
ba what do you wanna do
pk wanna be a warden in barbados
pk i wanna be lobbyist
ba you will be
pk once it’s in your blood

Mr. Allen told us in the stand right here, that being lobbyist for veco is lucrative, and it’ll get you other jobs too
RS said, getting the job was contingent on work in leg

6/3/06 pk and rs continue to discuss strategy exhibit .40 discuss Gene Therriault messing up getting the bill they want

6/ should be bill killed, cause not at 20/20

6/5-6 more meetings about killing ppt bill. pk notes he doesn’t understand the problem for the legislators. he can 45-56 exh. one he wants higher rate, another a lower rate

ba tells Bowles he can have stevens and kott kill the bill

appears deal ready to be signed
BA says, you didn’t get it done, you’re going to siberia, not barbados
6/8 pk gets adjournment before vote can be taken
Joins rs and ba in 604 to celebrate the victory - v later in meeting, pk relates what occurred and discuss strategy
going to tell all these guys ‘fuck you’ and then we’ll get a bill. june 8 11:45pm

7/12/06 rs and jerrie mackie talk about the pool they paid for. Mackie told pk about help with the poll, pk said ‘great’ Mackie didn’t say, “PK asked why, didn’t want poll”
Dittman confirms. PK and RS have phone call about whether they discussed poll.
ba: Mackie told you about the dittman poll, right? PK; Yeah.
BA:I’m working my end
pk: I work mine.
Kott didn’t say, I don’t use polls.

audio tape:
We did a poll for you, you know that don’t you? yeah? Bill didn’t know that?
Mackie wanted to do in two weeks a follow up poll to see if anything changed, to see if we wanna do anything different.
No conversation there about not wanting poll. No, we can do another one.

July 31
gonna meet in Juneau
phone call, plan to get pk more money. figured out a way I can help pk .jr.
pk. ?
ba. figured a way to help with a your son, you know? Yeah
Yeah, he’s been pestering me all damn day, already working *****************
We gotta figure out something that’s fool proof
Yeah, it’s fool proof

If the FBI hadn’t recorded this conversation then would it be fool Proof?


Aug. I’ve got your hardwood floor check. Smith didn’t say “i’ve got my check. hadn’t nothing to do with floors.
Linda Croft says she paid that invoice. 6/27/2006 only invoice she ever saw. She didn’t see any $5500 for rick. Paid with ba’s check.
You know what happened to that check. He cashed it and gave it to his son. Kott benefited.

Aug. this is the only conversation where someone knows he’s being recorded****
BA:
PK then rs gave me a check and that was it
ba: on what
pk you remember what we talked about several weeks ago. add it to your bill or something
ba; i gave you $17K on the floor right?
pk aaaa, I have to check. Maybe between both it woulda been close to that.
Nothing here about when can I do that work? because everyone knew what happened, the money tacked onto the flooring invoice, it was just the vehicle.

PK has no idea this is being recorded. SEarch warrants not broadcast til Aug 31

You evaluate the evidence. Let’s talk about how to-evaluate it.

You’ve heard from ba rs the defendant, none knew they were under surveillance. BA said, you think i would have said this if i knew i was on tape?

think about testimony in lens of what you’ve seen. Consistent with what you saw on the video?
When you consider ba’s testimony. Consider it in context of what pk said about ba’s credibility.
Is it consistent with tapes and witnesses test

Count 1
conspiracy nov 05- 06
three crimes
extortion

wire fraud

counts 2, 4, 6

Agreement is just an agreement of 2 or more to commit any one of those crimes.
Did defendant become member of conspiracy?
one of the member performed an overt act. means they did something to advance it. Floor vote, talked to a legislator many things

Ex under color of official right
4
public official
obtained money not entitled
knew it was obtained for something else
commerce moving from one state to another

no question he was in legislature
got check, $1000 in cash, poll, job with veco
Know? he did. think. To be guilty of that, to have that knowledge, pk simply needs to have agreement or understanding implied or stated explicitly. If i do these things, I’m going to get this job, get this money, doesn’t matter if he did it or had the power to do it
ppt leg that certainly affects commerce for the state of alaska


Count 4
Bribery program fed funds
elected official
corruptly solicited or agreed to accept
business transaction value >$50000
AK agency must get >$10K in grants from Feds

same things $7,993, cash, poll, etc
thing at issue, the ppt legislation involved something of $5K - Dickenson made it clear that it was hundreds of millions
AK receives hundreds of millions

Count 6 Wirefraud
made up scheme or plan - acting on behalf of his own interest instead of people
under whose directions - veco
when defendant placed phone call in dc. they discussed legislation, veco’s view,
statements in phone call in furtherance of scheme or plan - conversation had to be about something important to the fraud. About setting pk straight about how he’s supposed to act with the cook inlet oil. pk said, I know where my allegiances are.
phone call occurred from state to state - from dc to Alaska

based on this overwhelming evidence , from all the witnesses, and mr. kott and physical evidence. i ask you to find peter kott guilty on all four counts of the indictment. Thank you.

9:58.