Kohring Trial Day 5 - Quick PM Report

Bill Allen is 70 and he's suffering some cognitive problems from a motorcycle accident without a helmet. He's also pled guilty to felony crimes and is cooperating with the US Government on a number of cases. But he still has some of the juice that enabled him to move from picking crops to help support his family and dropping out of high school at age 15 to having sold his business for $400 million in September this year.

In this trial and at Kott's, we were told that his thinking is still clear, but he has trouble putting his thoughts into words at times. He did well for much of the testimony, but there were times with both the prosecutor and the defense attorney where he just wasn't processing. He's also wearing head phones to help him hear.

On a several occasions he wouldn't surrender to the defense attorney's line of reasoning. When Browne was trying to get Allen to admit that except for one occasion, no one else saw him give money to Vic Kohring.

Browne:The only evidence we have besides your word is the video interception where you are giving him money and you are talking about Easter eggs. Beyond that we have no evidence except what you said.
BA: That’s not true, Rick Smith knew it.
B: I’m not talking about Rick Smith. Is there any other evidence other than your word?
BA: Rick Smith knew when I was going to do it a couple of times.

At times when Allen didn't seem to be able to process what was going on, or at least couldn't articulate what he was thinking, it was like trying to reason with a small child, and Browne's voice got louder and sounded more irritated when Allen didn't answer his question at all or in ways that showed he wasn't processing.

Overall, I think the prosecution gained back some ground they lost yesterday. Sullivan wrapped up the questioning of Rick Smith and then Joseph Bottini took over when Allen took the witness stand. In some ways this was a repeat performance - the discussion of Allen's background that's in the previous post was very close to what was said in the Kott trail.

The prosecution scored points when they asked Allen about how close his friendship with Kohring was. A big point has been made that there was a bond between the two because they both were with Russian women - Kohring's wife and Allen's then girlfriend. Another link was that they both had daughters. But today Allen said he had never met Kohring's wife and that Kohring had never met his Russian girlfriend. And that the girlfriend had no children. There was other testimony that would indicate the relationship was less social than business. [jb is Joe Bottini, the prosecutor, BA is Bill Allen]

JB: When you socialize with VK. what did you do?
BA: He’d call me on the phone. I seen him a lot in Juneau.
JB Go to dinner?
BA: Yeah
JB: Who paid?
BA I did
JB: Ever met his wife?
BA No
JB: Step daugher?
BA: No
JB: Ever have a girlfriend from Russia? Way back. Kohring ever met her? NO Did Rita have a daughter? No, she doesn’t have any kids.
BA: Recall VK calling you at home?
BA: No, but at my office
JB: Know where he lived? No

But probably the biggest impact was the showing of the video tape of Bill Allen taking bills out of his pocket and handing them over to Vic Kohring. Bottini had requested permission to show the clip and Browne didn't object. You can see the tape the clip is from at ADN [at the site click on "FBI surveillance video: Vic Kohring" then go to Trial Exhibit 11: March 30, 2006. Move the bar to about 3:07:00 where they talk about Easter eggs]
[You can fast forward that little button just below the picture - it's right above the timer and sound icon above. Or you can listen to it all. It begins with Kohring talking about how he owes $17000 on his credit cards and he needs some help.]

More thoughts later, but want to get something out fairly quickly.

Kohring Trial Day 5 - Bill Allen Takes the Stand

U.S. District Court for the District of Alaska
Court Calendar for Friday, October 26, 2007

9:00 AM	3:07-CR-00055-JWS	Judge Sedwick	Anchorage Courtroom 3
USA vs. VICTOR H. KOHRING TRIAL BY JURY - DAY 5 (DEPS)

Most of the morning was going over points each side was trying to make or dispute. Smith was still on the witenss stand when I got in at 9:20am and Browne was cross examining.

How did the nephew get his job? Defense was trying to show that the 'recruiting' department was going to contact him, that he was actually recruited and went through all the proper processes for getting the job. Browne kept jumping around from topic to topic. The truck, he never got a truck from you?

They looked at the plea agreement and Browne reiterated the point that the government WILL recommend a reduced sentence if Smith cooperates sufficiently.

He continued to try to distinguish Kott from Kohring - trying to emphasize that Kott worked very specifically and hard to get the legislation passed whereas Kohring never voted for ppt. That Kott got more in payments - the flooring money, promise of a Veco job. Kohring was working for a friend. Veco paid for political polls for Kott but not for Kohring. Later prosecution was able to get Smith to say, over Browne's objection, that if Kohring had asked they probably would have done a poll for him.


I got the impression there was less tolerance for leading the witness. At one point, after allowing something that Sullivan objected to, the judge said that he was getting tired of telling the jury that what the lawyers say isn’t evidence. And the judge seemed a little testy with Browne when Sullivan had to keep objecting because "this has already been answered."

J: That goes well beyond the scope of redirect and is something you’ve covered

It ended there and Bill Allen was called in as the next witness. Bottini took over the questioning from Sullivan. Bill Allen is just an interesting guy with an interesting biography. I'll just stick my notes here. Note, as always, a lot is missing and I've often incorporated the answer into the question just to kee up. But Allen's slower speech makes it a little easier.

Not sure there is a lot here vital to the case, but it really is a piece of Alaska history. Perhaps the ADN will have the audio up tonight or tomorrow. In the mean time:

Bill James Allen, w. 11th Anchorage

Bottini: How old - I’m 70. 39 years in AK, born Soccoro NM, b. 1937 Motorcycle accident in 201. On a harley, took my helmet off, I shouldnt have. guy in front of me didn’t have break lights and I had to lay it down. Screwed up my speech.
Affect thought process? No
How affect? Sometimes I’ll saw the right or wrong word. Or sometimes can’t get it out of my mouth.
Where grow up? Oregon. Four brothers and ? sisters. I was right in the middle.
We picked fruit and hoed strawberries and stuff like that.
When moved to Oregon at 8, had you already started school? Didn’t go to school for about a year when 8. We were pretty poor, so we all had to work, picking fruit or hoeing the fields.
Eventually continued? About 9 or 10, Dad got a job in little place Lisle, Oregon and got back into school Till I was 15, Then moved back to NM with mother and brothers and sisters. I had to quit, I was a sophomore in HS, had to go back to work to support mother and other brothers and sisters.
What work? Got a job helping a welder, worked for El Paso natural gas. 15 years old.
I really loved welding and pipe particularly. I broke out, I done the tests when I was 17. That means I was a welder. It was a hard test. You had to weld an 8 inch pipe, They really take it all apart to see how well.
Did you progress to being a supervisor. About 21 or 22 forman over refinery or ? stations. I think 24 supervisor over pipe and whatever refinery, from that supervising went up to bigger jobs.
What geo part of US? New Mexico, Ok, Tx, Louisiana, went to LA and got into the union in LA, I think 250 pipe and welding union.
All oil and gas related? yes
Came to AK when? 1968. It was my wife wanted to go to AK cause her mom was here. I didn’t want to leave those positions in LA, but I told her I would, I would stay 3 months and was going back, because I thought I had a good deal in LA, and I’m still here.
When you came what kind of work? Supervision over pipe with another ??. Arco asked me to go into business with the King Salmon platform. A production platform, they produced quite a bit of oil, but of course the reserves finally quit. They may still have a little oil. Producing 54K barrels. Right out of Kenai in Cook Inlet.
Arco wanted you to do some work for them? Structural, particularly with pipe. Who were you working for? ? Little bitty outfit.called Waggly
Arco wanted me to stay there, so they asked me if I’d go into business so they could keep me? About the same time Wayne Veltry had the sparks, another platform Arco had. They asked if we could go together. When you have a shut down, you need more help. I’d help Wayne on the Sparks and he’d help me on the King Salmon. That was 68.

Name of that business? Wayne went to get it done. Wayne not good on pipe and he went into town to form the company, when he came back it was Veltry enterprises. i wasn’t sure I liked that. He went back and came back and said how about VE construction? I said fine.

At some time buy him out? wayne wanted to get out of platforms so I bought his 50%. Still VE construction? Yeah for long time, sometime in 70’s had engineering and stuff so I took VE const and it became VECO.

Still servicing the platforms Yes. arco wanted me to go up and build a pipeline in 71 or 72. It was a natural gas fuel pipeline for their camp. At Prudhoe. Was that the first work you starting doing on the Nslope? About 71.

Did VE con continue in 70s on slope? We didn’t get the oil pipeline permit and everything was kinda, wasn’t as good as it was, still had a lot of pipe work in Cook Inlet. KNew there was big boom coming in N Sea between Scotland and Norway. Started company with 50% with English company. Tar people...get some water….They were in the tar business TPTR I think.

VE const. continue in AK, didn’t shut down? I went back and forth. Same work we did on platforms in CI. A lot bigger. We done a lot a hook up, modules, it was a pretty they was a lot work, it was a boom. Started in 72 and built it up to 77, then Norwegian gov started taxing everybody. Norwegians thought they knew enough to do the oil field. Idecided time to get out and sold my half to English company I talked about.

Successful venture. Put money back on the slope. By then we had the permit to build the oilgas pipeline. Put money into camps , these shops, equipment, and it was a pretty good, timeing pretty good.

How big had VE Const grown? How many employees? Probably 2000 here in AK?
Who were clients:? BP ARco, Exxon,
Change VE cons to VECO, Continue to grow? Yeah. I bought that drilling rig company in GJ Colorado. Already had engineering, about that time brought VE construction down to VECO.

Did VEco ultimately become international? Yeah,we ah, I sold the ah drilling company and bought a ship yard in channel view right next to Houston. we built a lot of platforms in Gulf of Mexico. We still have AK, and 84, there was an agreement with unions, when building the oil pipeline and facilities ont he slope. That agreement ended in 84. they went to non-union. THen Veco got a lot of work ont he slope because we were non-uniion.

Four to Five thousand employees. Probably 50% alaska. AK always been the backbone.

BP, CPhillips (bought Arco, BP got part of ARco) and Exxon major oil partners.

2005 what role did you have in mgt of Veco? I was the Chairman. We asked about corp structure. Veco Corp, Subsidiaries?
BA: We had regions, Canada, Lower 48, Mid East, and Russia.
Bot: have a management team at V? Sr Management TEam
BA: Pete Leathard, President; Roger Conn, Overall Finance CEO Fin; Rick Smith, under me with Govt. can’t remember title; Jamie Slack, HD, saying it right? HR
Tom Corcharon, controller.

JB: 2005, total revenue?
BA: Pretty close to a billion. I think as far as private profit, 70%, 60% from AK
JB: Children
BA: Three. Mark had mgt position, maybe 8 years. At the end Tammy Carrigan was the chairman
JB: Sold Veco?
BA: Closing was 6th or 7th of September this year.
JB: While running Veco here in AK, did V get involved in politics?
BA: Yeah, I think I started in 84. the native coprs, particularly Arctic Slope they could tax the oil companies on the slope, stop permits. I thought if I didn’t get into politics the native corps would have pushed me out?
JB ??
BA: They had more horse power politically than I did, so I thought I’d get into politics.
I hired a guy as a lobbyist. Ed Dankworth. About 84.
JB;
BA: He lobbies Leg on what you’re trying to get done. Mine was oil industries. I knew if they were ok, they’d have work we could bid on.
I think Dankworth and I got crossways when we bought the Anchorage times. I wanted Ed to work with ACS, Chuck …………..can’t say his last name……………
JB Chuck Robinson? What was Anch Times
BA: Newspaper here in AK, in competition with Daily News. I think I bought it in 1989.
I wanted Dank to help Chuck, he really tried to help the Anch Times with advertising. I asked Ed if he would help him and he said no, I won’t do that, because he was … the other company. I’m sorry, drinking.
B: I have no problem with leading questions
BA: the other phone company
JB: GCI? yes

JB: Fund raisers?
BA: We done that with Ed. You organize an event and get everybody who likes a candidate. We have some food, drink, take their checks. They like the candidate, then we take the money and give that candidate, I think this thing (earphone) has quit.

J: here’s another

BA:
J: works on infra red, line of sight, if he turns his head it doesn’t work.
JB: also politically active for campaign contributions?
BA: that’s what fundraisers for.
RS came to work for us when we had the spill, when i bought the paper, he told me by that time, Ed was gone, hey, I could organize those fund raisers. I didn’t know but I let him try. He did a good job. He always done the fund raisers.

JB promoted to mgt
BA: Government Affairs, VP
JB: over the years, did you attend, become close to legislators
BA: Ramona Barnes, she’s died. John Cowdery, Pete Kott, Vic Kohring. Beverly Masek. I can go on for…
JB OK, Became active as far as individual contributions. Did Veco develop programs where senior execs were reimbursed for campaign contributions
BA: Special bonus. It was supposed to been, if they wanted to be into politics, you know, mostly the candidates would like oil industry, there was a charity, so we gave them the money, they supposed to do it or not do it. Once we give them the money it was there money. I thought it was legal. I think it really is.
Objection, there isn’t a question?
JB: Some of the execs directed to whom they should contribute?
BA: Yes they were, that’s why it didn’t work.

JB: what issues you concerned with in leg?
BA: oil tax, permits
JB: good place to stop?


Photo: Prosecutor Sullivan in the cafeteria. I'm still uncomfortable taking pictures of people who'd rather I didn't, but I don't think he can object to this one. He sat down nearby where I was writing this.

Kohring Trial Day 4 - The Afternoon

I'm going to try to hightlight some things that stood out for me. But let me warn you I didn't get enough sleep last night and my eyes are at half=mast as I write So, even more than usual, read with extreme skepticism.

Defense attorney Browne’s cross-examination of Veco VP Rick Smith seemed focused mainly on these points:

• These other guys made tons of money for sham contracts and Kohring got easter egg money.

Following up an opening argument theme, Browne highlighted how much money Smith made at Veco, and how much he got in his settlement. A lot of mocking of the $500,000 for attorney fees he got when he left Veco after the company was sold this summer.

Browne: Do you really think your attorney is going to go to trial for $500K.
Smith: I’m afraid more.
Browne: This is an ALASKA attorney? [as though this was absurd]

I happened to sit down next to John Murtagh, Smith’s attorney, because he was by the seat closest to the electrical outlet for my MacBook. I asked him how much of that was left. That was the only question I asked this afternoon he didn’t answer.

One wonders what Browne is thinking. Murtagh is representing a client with a $500,000 legal defense fund. Browne is representing a client whose credit card was maxed and collection agencies were threatening him. Which raises the question of who is paying for Kohring’s legal defense? Could that be a reason Kohring finally resigned from his house seat? Because it would have been an illegal contribution had he been a legislator? Or would it? Legal defense funds are exempt for all I know. If anyone reading this knows, please tell us in the comments and cite the law.

But back to the trial. Browne railed about the Anderson and Ben Stevens no-work Veco contracts - this time he had Stevens getting $243,250 from January 2002 to August 30, 2006. (He’d said Stevens got $250,000 per year for the contract in his opening statement.)

And all Vic got was some Easter egg money. Now, if I understand the law right (no guarantee at all) based on the prior trials, for a federal conviction there is a $5,000 threshold. We have so far:

$1000 in cash payment in the Douglas restaurant while Smith went to the bathroom.
$3000 Smith estimates the value of the internship for Vic's nephew.

There's some other cash, but it isn't clear to me how much and the evidence. I have to pay more attention and I'm too tired to go back through my notes tonight. I'm not clear on how much Easter egg money there was. Was it just the $100 bill that Allen asked from Smith? Or was there more?

There's the $17,000 problem Vic had with his credit card companies, which we have been told is solely based on his Mayo Clinic bills. The government didn't challenge that. In the video of Kohring asking for help on this (Ex. 11 I think), we have this statement from Kohring (as always, this is based on my very fallible note taking):

With Mayo clinic, my insurance didn’t cover it. Aetna only covers in West, not back East. I want everything completely above board. And please don’t feel like I’m abusing our relationship.

My state insurance plan covers care in more places than the West. Perhaps Mayo charges more than what the insurance company allows for that procedure and Kohring had to pick up the differnce, but I'm pretty sure it didn't get turned down because it wasn't in the West.

But it seems to me that for the jury, the government still has to demonstrate that this request counts. So far was we know, it never got past the request stage. I'm pretty sure that a sitting legislator going to a lobbyist and asking for $17,000 whether it is a gift, loan, or a job is pretty clearly a violation. But Browne has been pushing the point that they were friends. This argument didn't help Anderson or Kott, but they had much more damning tape that got played over and over. The prosecution, it seems, is going to have to show the jury that the job of a good lobbyist is to make every legislator feel like the lobbyist is his best friend. In any case, if the $17,000 counts, then the $5,000 threshold is met with this one item.

And then there's the truck he requested for his campaign. I Googled for Anchorage truck rentals. The tape was Aug 23, 2006. Since he needed it for the election, I figured he needed it for two months - September and October. But I couldn't book more than 40 weeks in advance on that first site, so I figured March 1-May 1 might be months with comparable prices. I'm sure Kohring could have rented a used
truck for much less in the Valley.

• How come these things aren’t mentioned in your plea agreement?

Browne had Smith go through his plea agreement with the government. This is the document he signed when he pled guilty that spells out the conditions of the deal he made with the government. It turns out there were two - a public one and a sealed one. The sealed one, apparently is now unsealed. Browne informed the Judge of this as though he thought the Judge didn't already know. There seemed to be two key points Browne was aiming at in his discussion of the plea agreement.
a. The first objective was, at least as I read it, to show that in the sealed agreement, it says that if Smith does a good job for the Government, the government will, not may, but will, request substantially reduced sentence (from the 135-180 months range listed.) Browne also established that the agreement protected Veco from being indicted, which meant that Allen could sell the company for a lot of money, and Smith could leave with lots of money. Both of these are good points. In all three cases, it would seem to me that Smith and Allen were the pushers and Kott, Anderson, and Kohring are the addicts. Are the addicts going to end up with bigger punishments than their dealers? Jurors were instructed not to think about sentences, but how can you not? The prosecution will have to make it clear that all the stuff about sentences is pure speculation and that's why they shouldn't think about it. But that assumes the defense is going to make this a part of the closing argument.

b. The second objective of going through the plea agreement seemed to be to make the point that the government was now charging Kohring with a lot of things that Smith and Allen hadn’t mentioned in their plea agreements. (Browne had to be told, as I understood what happened, to wait for Allen to talk about his plea agreement.) This all seemed to be leading to the key question Browne was raising: If it isn’t mentioned in the Plea Agreement, why is Kohring charged with it?

John Murtagh, who had a fat notebook on his lap that opened to the plea agreement pointed to a heading that read: This document does not set forth a complete statement of all relevant facts.

We can assume the prosecution knows this document pretty well.

• The battle over leading the witness, objections, and playing tapes.
  

Earlier in the trial, Browne said he noticed in the transcripts of the earlier trials, that a lot of the direct examination and cross examination questions seemed to be leading the witness. The judge acknowledged a certain flexibility that he was willing to allow if it didn’t prejudice either side and it was expedient. Well Browne has been calling the prosecution on this much more than did the defense attorneys in the previous two cases.

So I was somewhat surprised at what Browne did when he started the cross-examination. And the prosecution didn’t say much until near the end when he started to read whole sections. The prosecution did object now and then, but I think Browne got away with a lot more ‘fouls’ than did the prosecution today.

I talked about the tapes in the previous post. Not being able to play them seemed to really knock the wind out of Sullivan’s direct examination this morning. But this afternoon we saw a good example of why the tapes SHOULD be played. Browne kept reading the transcripts, but with a very exaggerated emphasis. The extreme to me was when he accused Smith of bullying Kohring as he read, “Don’t you DARE go whacko on us…” Making it sound like a serious threat. It seems to me the advantage of having the tapes is that the jury can hear exactly what the person said, including intonation. I was waiting for the prosecution to jump up and make this point. “He’s totally distorting the transcript. This is where we need the jury to hear what Smith actually said in his own voice and intonation. Not Browne’s interpretation of the transcript.” But they didn’t.

With the submission of transcripts as exhibits, the judge told the jury every time, that it was what they heard on the tape, not the transcript, that was the evidence. But Browne has now succeeded in getting the transcripts as the main evidence, not the tapes. The prosecution seems to have lost big time on this.



The paradoxical performance of Smith as a witness.

In the morning Smith spoke slowly and with a scratchy, gravelly voice. It wasn’t until the afternoon, when Browne asked Smith to explain the meaning of Perfect Storm in the context of oil and gas legislation, that he perked up and showed his stuff. He was suddenly articulate, knowledgeable, and sounded a little like the VP of a half billion dollar a year company. And from that point on he stood up to Browne, pointed out his mistakes, and didn’t allow Browne to lead him into answers he didn’t agree with. This was the Smith we should have seen in the morning when the Prosecution should have been lobbing him easy pitches. Through some bizarre switch, Smith looked, to me at least, much better in the cross examination than he did in the direct.


A follow up to yesterday's post where I asked what happened to Exhibit 14. I asked one of the Government's people if there was an Exhibit 14. The answer was no. I asked why. She didn't know, but got back to me later that it wasn't deemed relevant - it was about the nephew getting his job and they had enough on that.

Since it's world series time, I'd say we've completed the third or fourth inning. There's still a lot that can happen. I'm guessing Bottini will be pitching tomorrow for the prosecution.

Kohring Trial Day 4 - Morning Report

I didn't get enough sleep last night, and then I spent most of the lunch break talking to people, so there isn't much time left.

Morning was tedious. Prosecutor Sullivan questioned Veco VP Rick Smith about oil and gas policy. There was a closed meeting with the judge and attorneys early this morning to talk about confidentiality issues in cross examining the witnesses to protect on-going FBI investigations from being exposed. Defense attorney Browne must have also gotten in some restrictions on the use of audio and video tape.

In the previous trials, this was the point where the government played the tapes and had the witnesses interpret them. This was the most interesting part of the other trials in many ways. You would see and/or hear the witness in the tape and then hear his explanation of what was happening. But today the government hasn't played any tapes. When they tried, Browne has objected and forced them to work from the transcripts. This is not nearly as interesting or compelling. The jury did see the tapes yesterday when they were introduced, but the government doesn't look like it's going to get the advantage of playing them over and over again before the jury. This may also have put the government off its stride.

The discussion of the tax details dragged. Sullivan had his script and it sounded like he was perfunctorily reading the questions. It needed to sound more conversational, not like a list of questions he was checking off as he read them. And Smith's slow gravelly voiced responses didn't help.

And then they weren't able to show the tapes.

Score this round for Browne.

Kohring Trial Day 3 - The Tapes

I'm trying to figure how to present this. My transcription is really spotty and misses a lot. I thought about basic themes and tried to do a table and show which themes come up in which tapes. But that left out too much and would give a false impression. So I'm going to pick out some themes and give some examples of what was said for those themes. I'm sure they'll be up on ADN soon if they aren't already.

Some recurring themes on the tapes:

• Thanks for everything you've done for me.
• RV: I pace myself, at comfortable pace, sip my Tea and water, aspirins and vitamins. Some days tense with all the committee meetings
  Bill happen to get my card? I sent a thank you card?
  RS:
  RV: Isn’t he amazing to send a sick man soup? Got a heart the size of a watermelon, (Exhibit 2 or 3?)
  
• Uncle Bill, I want you to know how much I appreciate you. You’ve helped you my nephew. If I were there I’d, no I wouldn’t hug you, but give you a handshake. This is going to open up his life. I really thank you. (16)
• Thanks for the kind remarks the Voice of the Times attribute to me
  Thanks again for my nephew. Finished third week, and really appreciates it. He said, I wish I could work longer, this money is great. $24/hour. Great for 17 year old. Friends making $7/hour and he’s getting $16. People at Veco treating him very nicely (22)
• Hey Rick this is VK
  Couple things briefly, thanks for that event, very successful. $4000, expect it will be more when people send more who couldn’t attend. And thanks for Vof the Times printing my column. Thanks for them putting my stuff in.
  
  
• Anything you need from me, just let me know.
• Keep in touch with my friends at Veco, willing to help if there are any issues that come along. (Ex.1)
  
• if any need to contact me don’t hesitate to call me (Ex. 1)
• RV: Anything i can do to help, points to make in committees, radio, columns, I find myself in small minority of people who think like I do. Elephant herd coming at me, gonna be beat up.(2)
  
• Doing what I can to help you out. Doing the best I can to lobby for the Gov’s bill. Met with Kevin Meyer, good friend of mine, we get along great. Just hope that final bill is close to what the gov proposed.(13?)
  

• My nephew needs a job.
• want to call about a number of things, follow up of dinner in Douglas, possibility my nephew can do an internship with Veco
  RS: Resume? I need that as soon as possible, they’re probably already making decisions on kids. School record, gpa, work experience, etc. (5?)
• Left envelope with your name, contains my nephew’s resume you asked for and the Dittman poll on the oil industry and tax, you may already have it. Thanks for the nice dinner last night and in regards to my nephew, thank you very much. (7)
• My 17 year-old nephew will be here, want to introduce him to you. Got a bunch of lobbyists lined up to take him to dinner. (13?)
• Aaron’s [the nephew] basketball team’s award ceremony yesterday, presented them with a leg. certificate. Nephew got most valuable player award
  RS: They sent a note, saying they are planning to hire Aaron. Qualifies by turning 18 in July. One of our recruiters will be in touch with him. They have him scheduled to work with one of our engineers with the BP contract. (15)
  
  

• Here's what good things I did at the office today.
• good start for me, relationship with my constits going just fine
  Got to do the little things too, returning tel calls, responding to emals and letters, pain in the rear end, but got to do it to stay in office. (1)
• Also those extra tax credits were the direct result of my office, we worked on it for the last three months. Tax credits not only for production, but real estate, (8)

• Hey, listen, I have this situation and maybe you could help or give advice.
• ONe final thing about something importance for me, you going to be there tomorrow? Time best for you and Bill, (10)
• situation, that could hurt me politically. when I had my surgery a couple of years ago I put it on credit cards, ask you guys for your recommendations for how I can deal with this. I want to suggest, tell you guys cause your friends. Do some project where I can do some work for you or recommend me to someone. Collections company, Can’t sell my Wasilla house. They are demanding full payment for $17.000. I was paying a month. I don’t have the wherewithal to pay this. I’m living paycheck to paycheck. Not trying to come to the well, just asking if you guys would consider helping me or give me some options. (11?)
  
• Hi Rick this is VKohring in Wasilla. did you get to check into the pick up situation and if you didn’t no big deal. I can call around as well, I haven’t talked to them yet. Even if I can rent on something $1000 or so, for door knocking and putting up signs. Need to get out of this jalopy that keeps breaking down. If too many things on your plate, I understand.
  
  
• I want to do this the right way.
• I’m always looking out to the industry, not beholden, but less government is better, less taxes. (1)
• VK If I did do something for you, I’d want it real, above board never criticize our relationship or getting something I don’t deserve.
  BA: Don’t say anything til I can figure out, so it doesn’t come back to bite my ass or yours.
  VK: I wouldn’t tell anybody of financial situation. What would happen if I were to borrow money. But I don’t have to I don’t want to raise any read flags or anything.(11)
  
  

These are just a few bits from the tapes as I'm trying to see what the prosecution has in mind. Clearly there is nothing nearly as explosive as the tapes on Anderson and Kott.


Cracks in the Kohring Boy Scout Image

In his opening statement, Browne worked hard to show that Kohring was different from the foul mouthed drinkers that we would see on the tapes - Bill Allen, Rick Smith, Pete Kott. He doesn't drink or swear we were told.

But already yesterday, Kohring was heard on tape talking about drinking vodka (now that he had a Russian wife) at dinner, and that it was nice how it relieved stress. Today he twice suggested to Rick Smith they go out and have Long Island Tea. He also slipped in words like 'bullshit' 'asshole' and 'turd'. Not terrible in the big picture, but contradicting the boy scout image Browne was trying to portray.

There are a lot more items, but they'll come out when they play the tapes again with the witnesses who are in the tapes.

Kott Trial Day 3 - PM - FBI Investigation Team Reunion

The afternoon consisted of calling up different FBI agents from all around the country, swearing them in, then asking them the identical questions about whether they had verified that the material on this particular CD - Prosecution exhibits 1- 10 were in the morning, the 11-26 in the afternoon - was the same as the original recording. Then they had to verify the transcripts. (I'm not certain about #14. I had #13 down and the next one was #15. The judge asked about #14 too and the prosecution said, no, the next one was #15. So either they missed one, the judge and I missed one, or they are saving it to introduce at another time. But then they have to bring in the FBI agent again, so I probably just missed it.)

So you can look at this list: (The bulleted ones are from out of town)
Witnesses

Morning
Kelley Woodward, FBI, intelligence analyst, in Anchorage
Jessica Debra Ann Newton, FBI Intelligence analyst, Anchorage Division (twice)

• Joel Stephen, Texas Spec Agent FBI,
• William Bondurat California FBI, special agent, LA division, three years
• Tom Szot, FBI, special agent, 8 years, Chicago
• Frank DePodesta, FBI special agent, Chicago (twice)
• Joseph Thelen, retired FBI, 24 years, organized crime, NYC

Afternoon
DePodesta again

• Agent Dunphy (from yesterday)Cincinnati, 23 years FBI special agent

DePodesta again
DePodesta again
Kevin Loader, Anchorage, FBI, 2 years, special agent
DePodesta again
Joe Thelen again

• Sean McDermott, FBI special agent, 4 years Miami

Break
Chad Kadera Anchorage, FBI special agent
DePodesta again

• Roslyn B. Harris, Atlanta, FBI, 20 years, Special Agent

Jessica Newton again
Patricia A. Mumz FBI, 20 years, special agent, Anchorage

• Ingrid Schmidt, Columbus, Ohio, FBI, 5 years, special agent (Cincinnati Division)

(6 out of 14 were women -42%. Not my stereotype of FBI agents.)

As I said in the previous post, the out of town agents are here because defense attorney John Henry Browne insisted that the individual agent who was monitoring the recording had to be here to verify the recording. In the previous two trials, the defense attorneys allowed the prosecution to have one attorney verify all the tapes.

So we have nine FBI agents from out of town (the bulleted names) and five from Anchorage all gathered in the US Federal Courtroom anteroom. An FBI Investigation team reunion. In the overall scheme of what this investigation and trials cost, nine more airfares and several nights of hotel rooms is a minor costs. But there is also the loss of the work the agents could be doing in on other cases. (Some people may see it as a benefit that they aren't doing other work and I must admit that the work they've done in Alaska has reminded me that the FBI can do important work in the public interest.)

So why is Browne insisting on this? Well, for one, the FBI isn't infallible and there could be mistakes. But I suspect that the more work the prosecution has to do on this stuff, it's a little attention taken away from other stuff. And with two lead attorneys and FBI agent Kepner sitting up front, and two other attorneys sitting behind them (well, Goeke is still around, but Marsh said he was headed back to DC this week and I didn't seem him in court today), they do have things stacked in their favor. And this doesn't even mention the home field advantage: they can push their cart full of documents and equipment down the hallway and into their offices without even going downstairs and outside; they can bring in whatever staff from the building to help them in or out of the courtroom to mention just a few benefits.

By calling in all these agents, Browne is probably hoping one or two won't make it and so a tape might not be put in as evidence. We don't know if that is the case or not. He's emphasizing to the jury how many agents have been spending time on this and how much money the government is spending to bring them up here. (I don't believe the jury knows that Browne is the one who insisted on this, and I guess the prosecution can't tell them that.) Whatever extra steps the prosecution has to take, offers new opportunities for them to mess up somewhere along the line, and some bit of evidence may be lost, or some doubt could be raised among the jurors. What happened to Ex. 14 for example? Was I just not paying attention or did they actually skip it?

Browne did ask several of the witnesses where their names were on the documents. A: Not there. Well, how do you know that you were the person monitoring this? A: Well, it's somewhere. It never was clear how they knew. So there was a seed of doubt.

While the defense attorney should be doing everything he can to get his client off, if all he has are technical maneuvers that wouldn't bode well for Kohring.

OK, there was also the substantive material that was on the tapes we heard today. As I understand the process, the prosecution has to play all the tapes when they introduce them. There was really no discussion of them, other than what Bottini said in the opening arguments. And that did alert the jury to what was going to be shown on the tapes. If the previous trials are predictors, as the witnesses come in - and Bill Allen and Rick Smith (key characters on the tapes) have been mentioned - the prosecution will play the tapes again and ask the witnesses to explain what is going on.

But I'll finish this post and try to put together my thoughts about what the tapes were about today.

Jury Notes:
I saw that at some point today, every juror had a pen in his or her hand and wrote something in the court provided notebooks. Many were taking notes most of the time. This is very different from the previous two juries when I rarely saw a juror taking notes.

Eddie Haskell observation:

At the afternoon break, the defense attorney noted that he has copies of Bill Allen and Rick Smith's testimony from the Kott trial. "Would the judge like a courtesy copy?" He didn't do this in front of the jury at least.

Kohring Trial Day 3: Technical Stuff

U.S. District Court for the District of Alaska
Court Calendar for Wednesday, October 24, 2007




9:00 AM 3:07-CR-00055-JWS Judge Sedwick Anchorage Courtroom 3
USA vs. VICTOR H. KOHRING
TRIAL BY JURY - DAY 3 (DEPS)




Basically this was a technical session in which the Prosecution was introducing witnesses who verified exhibits.

Witnesses:

Dan Dickinson, former State Tax Director, and consultant on ppt tax and gas pipeline
Gave background about Alaska’s oil tax regimen and the reasons for changing it. This witness also set the context for the legislative session and special sessions. He also answered a question I ‘d had about whether PPT stood for Petroleum Production Tax or Petroleum Profit Tax. Apparently it has meant both.

Suzanne Lowell, Chief clerk of House of Reps.
Verified House Journal documents about voting on the PPT bill in the regular legislative session and the two special sessions in 2006.

FBI Agents
Kelley Woodward, FBI, intelligence analyst, in Anchorage
Jessica Debra Ann Newton, FBI Intelligence analyst, Anchorage Division (twice)
Joel Stephen, Texas Spec Agent FBI,
William Bondurant California FBI, special agent, LA division, three years
Tom Szot, FBI, special agent, 8 years, Chicago
Frank DePodesta, FBI special agent, Chicago (twice)
Joseph Thelen, retired FBI, 24 years, organized crime, NYC


First four tape exhibits - basically Kohring asking if he can do anything to help Veco or Bill Allen to let him know.

Ex#5 - brings up his nephew getting an internship with Veco, is told he needs to have a resume and Rick Smith tells him what needs to be on the resume and to get it in soon because, if I got it right, they are already filling these positions.

Ex#6 - RS and PK in room 604, RS briefly talks to VK on phone.
Kott: He hasn’t voted on a tax bill in 12 years, He hasn’t voted for a tax bill since he was born.
Smith: If he’s needed he said he’ll be there.

Ex#7 Voice Mail: Kohring: Left envelope with your name, contains my nephew’s resume you asked for and the Dittman poll on the oil industry and tax, you may already have it. Thanks for the nice dinner last night and in regards to my nephew, thank you very much.

Ex#8 Kohring telling Smith how he has pushed through an amendment that adds tax credits and says he thinks the oil companies won’t object because it means more money in their pockets and that he and Theresa worked three months to get this done


Ex#9 Kohring saying he’ll do whatever is needed to help out.

The FBI witnesses were verifying that the CD’s with the recordings are accurate copies of what is on the original audio and/or video, and that the transcripts are accurate reflections of the recordings too. This was fairly tedious as they had to repeat the same set of questions of each witness, each time they verified a specific tape.

Some return because the Prosecutors want to play the tapes in what appears to be chronological order. So they only verify one cd at a time.

In the previous two trials, one FBI agent was sufficient to verify all the tapes, but the defense attorney in pretrial motions would not accept that and insisted that the FBI agent who actually made the recording has to verify it. So we have agents being flown in from all over the US to do that tape by tape today.


John Henry Browne has been asking some of the agents if there is anything on the front of the materials that identifies who made the recording and basically, it appears, there isn’t. I guess he’s trying to raise doubts. Obviously there is is some way to connect the tape with the recorder, but the prosecutors haven’t followed up to clarify that.

Do Bloggers Count as Media?

For the first time since the press have been allowed to take computers into the courtroom, which began during the Kott trial, I was asked more than perfunctory questions today.

The guard took down the url of my blog and my telephone number. He let me in with the computer and said, we'll get back to you. There's no way I could have made this evening's long post without the computer. We'll see tomorrow if bloggers count.

Is John Henry Browne really Eddie Haskell 50 years later?

I finally figured it out. About 9:15 tonight the name Eddie Haskell bubbled up in my brain and I knew why. John Henry Browne. Actually, with Google's assistance, I discovered that Leave it To Beaver began on CBS on October 4, 1957, so this month is the fiftieth anniversary of the show. For those of you who didn't watch tv in the 50's and 60's, here's what Wikipedia says about Haskell:

Even today, the phrase "Eddie Haskell" is known to refer to an insincere brown-noser. . .He was known for his neat grooming—hiding his shallow and sneaky character. Typically, Eddie would greet his friends' parents with overdone, good manners and often a compliment such as, "That's a lovely dress you're wearing, Mrs. Cleaver."

It's the parts in italics that I was thinking of. I have ABSOLUTELY NOTHING to base any of the "shallow and sneaky character" parts of this description to Kohring's attorney. And after 50 years, I'm sure he's had time to work through all that.

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.