As Yet Another Indictment Comes Down, Alaska Democratic Party Calls On Stevens To Respond To Unanswered Questions & End Culture Of Secrecy

Alaska Democratic Party Release | July 10, 2008

RetireTed.Com Launches Initiative For Alaskans To Ask Stevens Their Questions

Anchorage, AK – As we approach the one year anniversary of the FBI raid on Senator Ted Stevens’ home, the Alaska Democratic Party (ADP) is demanding that Stevens start responding to a growing list of unanswered questions. Stevens has continually left Alaskans in the dark about everything from his investigation by the FBI to how he pays his legal bills and even his Senate record. Alaskans have had enough of the secret, closed-door, business as usual; they want and deserve real answers. The ADP today called on Stevens to end this culture of secrecy and start providing honest answers to the people he works for – Alaska families.

“Senator Stevens is operating under a cloud of secrecy and seems to think he is above answering Alaskans’ questions,” said Bethany Lesser, spokeswoman for the Alaska Democratic Party. “Stevens has been under investigation for a year, yet more and more questions remain unanswered. Today’s indictment is just another example of the backroom wheeling and dealing that has hurt Alaskans. They expect Senator Stevens to answer tough questions and take responsibility for his record.”

Repeatedly the media has asked question after question of Senator Stevens, and Stevens continually refuses to answer.

The Highlights:

1. How is Stevens paying his legal fees?

2. What is Stevens involvement in the ongoing Federal Investigation?

3. Did Stevens deliver earmarks and contracts to help benefit his son’s clients?

4. Did VECO pay for the remodel of Steven’s Girdwood home?

5. Why won’t Stevens talk about the millions in earmarks for his business partner Bob Penney?

6. Why did Stevens allow the Enron loophole rider onto his appropriations bill?

7. What exactly does The Ted Stevens Foundation do and who is funding it?

8. Why did Stevens try to shut out the public from the legislative process?

9. Why won’t Stevens talk about his 527 group made up of former staff and lobbyists?

10. Why won’t Stevens disclose he and his wife’s full personal finances?

RetireTed.Com today launched a new initiative called “Ask Stevens.” Stevens isn’t answering the questions that Alaskans want to know. This is the chance to join in and ask Stevens the real, tough questions. Alaskans can log onto www.retireted.com and submit their questions for Stevens.

On July 30, 2007, Stevens’ home was raided by FBI and IRS agents as part of a court authorized search warrant. It has been 346 days since the raid on Senator Stevens’ home and he still refuses to discuss the case or how he is paying for his legal fees.

Please see the attached memo that details the unanswered questions Stevens has avoid from the media.

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What Is Stevens Hiding?

With Senator Stevens being under investigation by the FBI and IRS, one would think that he would be offering some sort of reassurance to Alaskans about the criminal activities his name is being tied to. However, Stevens has developed quite the reputation for being short with the press and leaving Alaskans in the dark. And its not just federal investigation questions he is running from – Stevens seems to think he is above answering the questions that Alaskans want to know. Perhaps Stevens has forgotten that he is supposed to be working for Alaska families, but folks here at home deserve to hear some honest answers.

The Highlights:

1. How is Stevens paying his legal fees?

2. What is Stevens involvement in the ongoing Federal Investigation?

3. Did Stevens deliver earmarks and contracts to help benefit his son’s clients?

4. Did VECO pay for the remodel of Steven’s Girdwood home?

5. Why won’t Stevens talk about the millions in earmarks for his business partner Bob Penney?

6. Why did Stevens allow the Enron loophole rider onto his appropriations bill?

7. What exactly does The Ted Stevens Foundation do and who is funding it?

8. Why did Stevens try to shut out the public from the legislative process?

9. Why won’t Stevens talk about his 527 group made up of former staff and lobbyists?

10. Why won’t Stevens disclose he and his wife’s full personal finances?

For Nearly An Entire Year, Stevens Has Refused To Answer Questions About The Ongoing FBI Investigation…

Stevens Refused To Answer Questions About His Being Under Federal Investigation. Stevens refused to answer whether ongoing federal public corruption investigation might have something to do with how Alaska is perceived these days. Stevens refused to answer any questions with the word ‘investigation’ in them, ruling out questions about the federal inquiry into renovations of his Girdwood home in 2000 and questions about Sen. Lisa Murkowski, who was under fire for receiving a low purchase price of a Kenai River property she and her husband bought from a friend and political supporter. “This investigation should proceed to its conclusion without any appearance that I have attempted to influence its outcome,” Stevens said. “I know Alaskans are interested in my views on the investigation. While I understand this interest and would like to discuss these issues in great detail, the interests of justice and our state are best served if I make my comments after federal officials complete their work.” [Stevens seeks Alaska awareness, Anchorage Daily News, 7/22/2007]

Stevens Refused To Address Questions About The FBI Looking Into The Remodeling Of His Girdwood Home. The Anchorage Daily News reported in August of 2007 that Sen. Ted Stevens, on his first trip back to Alaska since FBI agents searched his Girdwood home, refused to answer questions from reporters regarding the federal investigation and home renovation. “I know you’re interested in the items that have been in the media recently. I wish I could discuss those in detail,” Stevens said. [Friendly crowd welcomes Stevens, Anchorage Daily News, 8/8/2007]

Stevens Refused To Answer Questions About His Role In Delivering Earmarks That Benefited His Son’s Clients. In the same round of questioning from local media, the Anchorage Daily News asked Sen. Ted Stevens about the federal investigation into his earmarking to benefit the clients of his son, former state senator Ben Stevens. “To avoid any suggestion that I as a senator am attempting to influence an investigation by the Department of Justice, I simply cannot talk about it,” he said at the start of his speech before The Anchorage Rotary Club at the Anchorage Hilton. [Friendly crowd welcomes Stevens, Anchorage Daily News, 8/8/2007]

Stevens Refused To Comment On Bill Allen’s Testimony Which Stated That VECO Paid For The Renovation Of Steven’s Girdwood Home. Bill Allen, former Veco executive, testified in September of 2007 that he paid for some of the labor and provided some materials for the remodeling of Sen. Ted Stevens’ Girdwood home. “Were some bills never sent to Sen. Stevens, and paid by someone else?…Sen. Stevens has refused to say more about the remodeling deal, in part because he refuses to comment about an ongoing investigation.” Although Stevens has denied wrongdoing, he said he will not discuss details. [Speak up, senator, Anchorage Daily News, 9/18/2007; Alaska Senator's Calls Were Secretly Taped, Washington Post, 9/21/2007]


And Stevens Refuses To Answer Questions About His Mounting Legal Fees…

Stevens Owes Up To $50,000 To Law Firm For Work Connected To Federal Investigation, Won’t Disclosure Exact Amount. An Anchorage Daily News article announced that, according to his financial disclosure forms, Sen. Ted Stevens owes the law firm of Williams and Connolly up to $50,000 for legal work connected to the federal investigation into renovations at his home in Girdwood overseen by the VECO Corp., whose two executives pled guilty to bribing state lawmakers. On Stevens’ financial disclosure form, the debt is indicated to be in the range between $15,000 and $50,000, but Stevens refused to disclose the exact amount he owes the law firm. “I work hard for Alaskans in Washington, D.C.,” Stevens said in a statement Friday. [Stevens owes as much as $50,000 in legal fees, Anchorage Daily News, 6/14/2008]

And Stevens Isn’t Talking About His Connections To His Son’s Investigation Either…

Ben Stevens Refused To Comment On A Secret Option To Buy Into A Company That His Father, Senator Stevens, Helped Make Millions. State Sen. Ben Stevens, also a director of the Adak Fisheries subsidiary Aleut Enterprise Corp., held a secret option to buy into Adak Fisheries at the same time his powerful father, Sen. Ted Stevens, created a special Aleutian Islands fishery that would supply the company with pollock projected to be worth $3.7 million in 2006. Under his deal, Ben Stevens would have been entitled to one-fourth of the profits. Without disclosing his conflict of interest, Ben Stevens voted to transfer the pollock rights to Adak Fisheries and argued against the Aleut Corp. claiming a larger share of the profits. Ben Stevens repeatedly declined to answer any questions about the option to buy or these activities. “My attorneys have advised not to discuss it because it’s before the court,” he said. [Ben Stevens' Secret Fish Deal, Anchorage Daily News, 9/18/2005]

Ø Ben Stevens Rakes In Thousands In Consulting Fees From Related Companies. According to Ben Stevens’ financial disclosure reports, between 2002 and 2004, his consulting company, Ben Stevens and Associates, received $280,000 from Adak Fisheries. In addition, in 2000 and 2001, three related companies — NorQuest Seafoods, Adak Fisheries Development Corp. and Adak Seafoods — had paid $77,500 to his consulting firm. [Ben Stevens' Secret Fish Deal, Anchorage Daily News, 9/18/2005]

Stevens Provided No Comment In A Report Questioning His Favors To His Son and Son’s Clients. A New York Times report from August of 2007 questioned former state senator Ben Stevens’ connections with the 2001 Special Olympics World Winter Games in Anchorage. Ben Stevens had been paid more than $715,000 in salary and bonuses for three years’ work on the games and the effort to bring the games to Alaska had been a “pet project” of his father’s. From Sen. Stevens’ post on the Appropriations Committee, he helped steer millions of dollars in federal money to support the games. The large amount of Ben Stevens’ pay package for a nonprofit event, and his subsequent consulting contracts with Special Olympics after the games drew criticism from Alaska and DC. The F.B.I. is also reviewing Sen. Stevens’ involvement in millions of dollars in earmarks to fishing and seafood companies that were his son’s clients, as well as a $1.6 million appropriation to an Alaska marine sciences center to buy land owned by one of his son’s business partners. Sen. Stevens’ “spokesmen in Washington did not return phone calls” for the New York Times report. [Like Father, Like Son, Even When They Are Under Suspicion, New York Times, 8/10/2007]

Stevens Even Took Back A Momentary Offer For Transparency…

Senator Stevens Offered Memos To Explain The Provision That Benefited His Son, But When Someone Actually Requested Them – He Took The Offer Off The Table. According to an Anchorage Daily News report, in the fall of 2003, Sen. Ted Stevens was chairman of the Appropriations Committee and attached the pollock allocation to the Aleut Corp. as a rider. Sen. Ted Stevens denied creating the pollock allocation to benefit his son, “The people I talked to are (Aleut fish consultant Clem) Tillion and the (federal North Pacific fishery management) regional council people, and I’ll be glad to show you the memos that (Senate staffer) Matt Paxton wrote to me back in ‘03,” Stevens told reporters. But when reporters asked to see the memos, Stevens refused. Stevens’ spokeswoman, Courtney Boone, said the offer was only valid until the end of the press conference that day, although Stevens said nothing about a time limit on access to the documents at the time. [Ben Stevens' Secret Fish Deal, Anchorage Daily News, 9/18/2005]

And Kept Family Financial Information Off His Required Disclosure Form

Stevens Refused To Comment On Family Financial Benefits From Business, Political Interests. The Anchorage Daily News attempted to follow up on a December 2003 Los Angeles Times report revealing that Ted Stevens and family members gained financially from business interests that Stevens has helped through his position as senator. The report highlighted Stevens’ grew rich by investing with Anchorage real estate developer John Rubini, while Stevens was helping Rubini secure a $450 million Defense Department contract to build and military housing on Elmendorf Air Force Base. It also revealed Stevens’ influence over telecommunications policies that benefit his ACS, of which his wife owns large stock shares, and which Sen. Stevens failed to report the conflict on his 1999 financial disclosure form. “A spokeswoman for Stevens said the senator had nothing to say Wednesday about the article.” [Newspaper questions Stevens' ethics, Anchorage Daily News, 12/18/2003]

And Stevens Sure Does Get Angry For Someone With Nothing To Hide…

Stevens Called News Reports Of The Investigation A “Vicious Attack.” Sen. Ted Stevens lashed out at Alaska news reporters in September of 2007, accusing the Anchorage Daily News and KTUU-Channel 2 of a “vicious attack” on him and his son, former state senator Ben Stevens. Sen. Ted Stevens became agitated and angry when reporters inquired about a lawsuit alleging Ted Stevens performed favors benefiting his son and his son’s clients. “This is a continuation of a vicious attack against me and my son. It’s politically inspired,” Stevens said. [Stevens irate over suit query, Anchorage Daily News, 9/10/2005]

An Inquiry About Stevens’ Pollock ‘Ignited Anger’ In Stevens When Linked To Ben Stevens. “In 2003 and 2004, Ted Stevens added a rider to a federal spending bill to give the Aleut Corp. exclusive rights to a new $10 million Aleutian pollock fishery with the idea of turning the old Adak base into a thriving commercial fishing town. A few months before the bill passed, the Aleut Corp. awarded the management of its pollock allocation to Adak Fisheries. What apparently ignited Ted Stevens’ anger on Friday were questions about whether he awarded the pollock allocation to the Aleut Corp. to benefit his son.” [Stevens irate over suit query, Anchorage Daily News, 9/10/2005]

But Avoiding Tough Questions Is Nothing New For Stevens…

Just Last Week Stevens Touted In Energy Plan But Then Blew Off Reporter About His Previous Energy Plan. At a news conference held on July 2, 2008, Sen. Ted Stevens pitched an energy plan to curtail rising energy costs. Among one of his proposals, Stevens planned to target oil speculators who buy and sell barrels without ever intending to use them, which Stevens says has inflated gasoline prices. But when a news reporter questioned Stevens about his previous opportunities to push for additional regulation of oil speculation, Stevens blew off the reporter saying, “I’m not getting into that here,” and took another reporter’s question. [News Conference Transcript, 7/2/2008]

Stevens Failed To Respond To Inquiries Over Questionable Contracts Awarded To His Brother-In-Law. A 2003 Los Angeles Times article reported that in 2000, Anchorage developer Jon Rubini and his business partners, of whom one was Sen. Ted Stevens’ brother-in-law, Bill Bittner, bid and won a $450-million contract to construct and upgrade military housing on the Elmendorf Air Force Base. Initially, the Air Force reneged on the contract citing that Rubini’s group “lacked capacity and adequate financing.” Rubini protested to Stevens, even flying out to DC to visit the senator at his office and his private home. At the time, Stevens served as chairman of Appropriations and ex officio member of its Military Construction Subcommittee. The chairman of that subcommittee, Conrad R. Burns, is one of Stevens’ fishing buddies. In October 2000, Burns wrote to the Air Force, threatening to take away the Elmendorf privatization money because of their failure to award the contract. In December 2000, the Air Force approved the contract going to Rubini and his partners. “Stevens did not answer questions about the specific actions he took.” [Senator's Way to Wealth Was Paved With Favors, Los Angeles Time, 12/17/2003]

Ø Rubini Helped Stevens Make At Least $700,000 In Investments. The same businessman made Stevens a partner in a series of real estate investments that turned the senator’s $50,000 stake into at least $750,000 in six years. [Senator's Way to Wealth Was Paved With Favors, Los Angeles Time, 12/17/2003]

Stevens Failed To Fully Explain Earmark For Kenai, Russian River Benefiting Supporter. The Anchorage Daily News reported in September of 2007 that in 2004, a bill passed by Congress included this vague sentence: “$2 million is for the Kenai River; $1 million for the Russian River.” State officials were perplexed over what the money was intended for and emailed Sen. Ted Stevens, at the time chairman of the Appropriations Committee. Stevens’ panel had helped craft the bill. Stevens’ office reply was: “The $2 million for the Kenai River; and $1 million for the Russian River go to Bob Penney,” with the phone number for Penco, an Anchorage company founded by developer and Stevens friend and supporter, Bob Penney. Penney owns property along the Kenai and co-founded the Kenai River Sportfishing Association. “Stevens declined to comment for this story. His spokesman, Aaron Saunders, cited the senator’s position of not speaking on matters related to the federal investigation of Stevens, which included an FBI raid this summer on Stevens’ Girdwood home.” [Penney's group was in charge of spending 2004 earmark, Anchorage Daily News, 9/30/2007]

Ø Stevens Has Received Over $20,000 From Bob Penney And His Family. According to the Center for Responsive Politics, Bob Penney, His wife PJ, and his son Henry have donated $23,375 to Stevens’ campaign. [www.opensecrets.org]


Stevens Has Even Tried To Shut The Public Out Of The Legislative Process…

Stevens Restricted Public Access To Appropriations Bills. In September 2004, Roll Call reported that Stevens had expanded the practice of restricting public access to appropriations bill while he was chairman of the Appropriations committee. By “polling” members of the subcommittees, rather than holding open hearings for each subcommittee, Stevens was able to send eight bills to the full committee without publicly revealing any of the details. There were no rules to cover the use of polling, so it was not clear if the objection of any member could force a subcommittee markup. Stevens defended the practice against accusations of secrecy: “That’s baloney! It has nothing to do with [secrecy ]. … There’s no reason to unveil it until it’s ready to be voted on.” Senior Senate GOP aides said that Stevens had used polling to avoid spending requests from lobbyists and members of congress. [Use of Appropriations ‘Polling' Troubles Critics, Roll Call, 9/20/2004]

And When Questions Were Raised About Stevens Creating A Political Group Of Former Staffers And Lobbyists…No Comment

Stevens Team Declined To Comment On Involvement With 527 Groups. Supporters of Sen. Ted Stevens established a 527 group, The Ted Stevens Excellence in Public Service Inc. with the intention of being a political boot camp for female Alaska Republicans and raising money for the endeavor outside federal limits. This group is unrelated to the other 527 group named the Ted Stevens Foundation. These groups can raise unlimited amounts of money from corporations or unions or unlimited donations from individuals. The foundation’s board is made up of a half- dozen or so former staffers and longtime supporters in Alaska, some of whom are registered lobbyists. “Stevens aides in D.C. declined to comment and referred questions to his top political operative, Timothy McKeever, a lobbyist in Alaska, who was not available for comment.” [527 Uses Stevens' Name, Roll Call, 3/23/2004]

And When It Comes To His Foundation, No One Knows Exactly What They Do Or Who Is Funding It…

Alaskans Kept In The Dark Over Secret Donations And Expenditures To Stevens Foundations. The Anchorage Daily News reported on Sen. Ted Stevens’ relationship with the Ted Stevens Foundation in March of 2008. The Alaska Democratic Party had asked Stevens to disclose donations and expenditures to the foundation, charging that it exploits “an ethics loophole allowing those who donate to seek favors from Congress.” Founded in 2000 as the Ted Stevens Foundation, now known as the North to the Future Foundation, it is headed up by former Stevens’ staffer Tim McKeever, a Seattle attorney who also serves as the senator’s campaign treasurer and spokesman. In 2004, an editorial in the Washington Post described the $5,000-a-plate fundraising dinner as having the “inevitable air of a shakedown.” The foundations is not required to disclose who gives money or the amount they donate, but the foundation is required to disclose to the IRS which organizations to which the foundation donates. [Democrats pan Stevens foundation, Anchorage Daily News, 5/31/2008]

Ø Stevens Staffer And Foundation Founder Claims Foundation Purpose To Preserve Stevens’ Legacy And Fund Activities Of Interest To Stevens. According to an Anchorage Daily News report, Timothy McKeever claimed that the primary purpose of the foundation is “to raise money to create a depository for records from Stevens’ 40 years as senator, including documents related to the Alaska Native Claims Settlement Act and the creation of the trans-Alaska oil pipeline…The foundation gives money to youth sports and other activities that have been of interest to Stevens throughout his career.” [Democrats pan Stevens foundation, Anchorage Daily News, 5/31/2008]

Ø 990 Forms Give Broader Purpose For Stevens Foundation. According to a report from the Sunlight Foundation, the Ted Stevens Foundation’s 990 forms for the Ted Stevens Foundation report that the foundation was set up not only to preserve Stevens’ legacy and give grants, but also “to provide programs which educate, encourage communication, relieve poverty and promote community welfare throughout the state of Alaska and the United States.” [Out of Compliance: Nonprofit with ties to Stevens' PAC, Tardy on Paperwork and Fees to the State of Alaska, Sunlight Foundation, 7/23/2007]

Ø With Such Lofty And Broad Purposes, Ted Stevens Foundation Only Gave Two Grants Between 2003 And 2005. Founded in 2000, the Ted Stevens Foundation only reported giving out two grants between 2003 and 2005, one for $40,000 to the Smithsonian Institute in 2004 to preserve Stevens’ desk and $10,000 to the Anchorage Rowing Association in 2005, according to the 990s. [Out of Compliance: Nonprofit with ties to Stevens' PAC, Tardy on Paperwork and Fees to the State of Alaska, Sunlight Foundation, 7/23/2007]

Ø McKeever Asked IRS For Extension For Foundation’s Financial Report, Citing Public Information Not Available. Sen. Ted Stevens responded to questions from a KTUU Channel 2 reporter regarding activities of the foundation: “They are asking me about a foundation that is a matter of public record,” he said. The foundation is required to disclose to the IRS which organizations receive money. When questioned about the latest financial report for the foundation, McKeever claimed he did not have the 2007 report available and that he asked for an extension from the IRS. [Democrats pan Stevens foundation, Anchorage Daily News, 5/31/2008]

Ø Stevens Skirts Questions About His Foundation. When Sen. Ted Stevens was questioned by a reported about the foundation, he deflected the issue by blaming the Democratic Senatorial Campaign Committee. Stevens said the questions were “dirty, dirty, New York politics” being driven by Sen. Chuck Schumer, D-N.Y., who heads up the DSCC. [Democrats pan Stevens foundation, Anchorage Daily News, 5/31/2008]


And When Challenged For More Disclosure On Personal Income…Stevens Dodges…

When Asked To Disclose Income Down To Dollar, Stevens Staffer Deflects Request By Saying Begich Should Go After Democratic Opponents Instead. The Fairbanks Daily News-Miner reported on Sen. Ted Stevens’ response to Anchorage Mayor and U.S. senate candidate Mark Begich’s challenge for Stevens to disclose his and his wife’s personal incomes down to the dollar. U.S. senators are required to disclose their finances but in broad ranges that are not published online and are not as thorough as those required by the Alaska Public Offices Commission. Stevens’ spokesman, lobbyist and former staffer Timothy McKeever called Begich’s request for Stevens to detail his own and his wife’s income down to the dollar as “a little odd.” [Stevens' campaign fires back at Begich challenge, Fairbanks Daily News-Miner, 5/31/2008]

See also: Alaska Democratic Party Reacts To Stevens’ Conspiracy Theories » MEMO: Must-Answer Questions For Senator Ted Stevens » Alaska Democratic Party Calls on Sen. Stevens To Answer Questions » How Much Has Sen. Stevens Spent on Lawyers? » Stevens Tries To Impress Alaskans And Jury With Stars Who Have No Connection To His Corruption Charges »