Saturday, September 02, 2006

Culture of Corruption: FBI Probes Office of Sen. Stevens' Son

JUNEAU, Alaska - The offices of at least six Alaska legislators, including the son of Sen. Ted Stevens, were raided by federal agents searching for possible ties between the lawmakers and a large oil field services company, officials and aides said.

Department of Justice spokeswoman Jaclyn Lesch said Friday the searches began Thursday and were continuing Friday. FBI spokesman Eric Gonzalez said a total of 20 search warrants were being executed across Alaska, but would not say where.

A copy of one of the search warrants, obtained by The Associated Press, links the investigation to a new production tax law signed last month by Gov. Frank Murkowski and a draft natural gas pipeline contract Murkowski and the state's three largest oil companies negotiated.

The warrant called for seizure of documents concerning any payment made to lawmakers by Bill Allen and Richard Smith, executives of oil field services giant VECO Corp. Agents also looked for documents about contracts, agreements or employment of legislators provided by VECO, Allen, Smith and company president Peter Leathard.

Sought-after items named in the search include hats or other garments bearing the phrases "CBC," "Corrupt Bastards Club" or "Corrupt Bastards Caucus."

That's the nickname given to 11 lawmakers after a guest opinion piece published in March listed the contributions those legislators received from VECO Corp. executives, said House Speaker John Harris, R-Valdez. The piece was published in the Anchorage Daily News, Fairbanks Daily News-Miner and the Juneau Empire on different dates in March.

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