Simon Says

Kott Trial Day 5

Juror Dismissed

Day five started with the defense giving Judge Sedgwick a letter to the Kenai Daily News editor published on October 30, 2006. The letter was written by one of the jurors. The Judge said he found the content to be very worrisome. The specific worrisome part Judge Sedgwick said references Gabriel Ledoux. The Juror wrote Ledoux should have recognized from the onset VECO activities were inappropriate. The judge worried someone expressing these opinions could not be fair and impartial. When the juror came back into the courtroom, she emphasized, when questioned, she had mentioned she had written letters. Prosecutors mentioned the same fact. That was not enough for the judge who dismissed her about 9:15 a.m.

    Dismissed Juror Letter in Kott Trial

Allen Testimony Day 3

Former VECO Chair Bill Allen's testimony wrapped up about an hour later, around 10:15 a.m.

Defense Tries to Discredit Allen

Defense attorney, Jim Wendt, brought up Allen's grandson's dog, Bear. Apparently, Bear was staying with Allen and scratched his home's wood floors. That's why Pete Kott was originally hired. The defense tried to get Allen to confirm he had talked to Kott about doing additional flooring work. The defense is trying to establish the additional money Allen gave Kott was for additional work -- not for bribing Allen to make PPT pass so he would get a VECO job. But Allen stood firm.

When prosecutors asked clarification questions, Allen went as far as saying, "When I made a deal with you guys, I said it had to be the truth. And that's what I've done, the truth."

For the second day Allen admitted not only to bribing Kott, but Vick Kohring and Ben Stevens, and others, in excess of 400,000 dollars. Wendt tried to get Allen to admit he was saying this to get his sentence reduced. But Allen would not back down, "You know, I really don't care. And I've never asked them a damn thing when it comes to my sentence. My life is about done anyway, so I really don't care."

Senator Steven's Girdwood Home

Then the line of questioning turned to VECO's role in remodeling Senator Ted Steven's Girdwood home. Allen admitted he paid VECO employees to remodel Stevens' home.

"I gave Ted some old furniture. But I don't think there was a lot of material, but there was labor."

Allen said anywhere from one to four employees worked for about six months on the home.

"I went by, maybe a month or two, to see what they were doing," said Allen.

Ben Stevens' Payments

In his time as a senator, Allen agreed he'd given former Senate President Ben Stevens an excess of 200,000 dollars.

"Well it was 4,000 dollars a month," said Allen.

At the same time convicted Representative Tom Anderson had been paid 20,000 dollars.

When prosecutors asked what Stevens did for VECO, Allen said, "Not a lot."

Prosecutors got Allen to agree that most of what Stevens did was work for VECO to get a gasline built.

Eventually, Allen said, "No, it wasn't legal."

The VECO Sale

Allen said, "VECO was my baby. I didn't think anyone could beat us."

It appears, up to the sale to Denver, Colorado based CH2M Hill last week, Allen was extremely concerned about his employees. In fact, he tried to get that in his plea agreement.

"The 4,000 people  shouldn't be punished," said Allen.

While Wendt tried to suggest this could be motivation for Allen, Allen fired back:

"The big wheels in D.C. wouldn't do anything."

Jayne Schofield

Legislative Affairs Deputy Director Jayne Schofield testified about a March, 2006 trip Kott took to Washington, D.C. Kott took the trip with other lawmakers to attend a regular Energy Council meeting. Schofield testified Kott charged the state $2,248.45. As the Legislative Council chair, Kott could approve his own travel, Schofield said. The defense had Schofield testify and backup that many other lawmakers annually traveled to this conference.

Rick Smith's Testimony Begins

About 11 a.m. Rick Smith, who was VECO's government relations executive, took the stand. He talked about VECO's history and how, by the mid-nineties, his duties turned to government and Legislative relationships. Smith also testified about Allen's 2001 motorcycle accident.

"He hit his head on the pavement, didn't have a helmet on. It caused a disconnect between what he was thinking and what he verbalized," said Smith.

By 2002, VECO became interested in getting a pipeline built. And by 2005, when it became clear PPT would be the vehicle to making a gasline happen, VECO was extremely interested.

Because Smith said, "A pipeline would mean a lot of work for VECO employees."

Smith said not only VECO relied on Kott, but Senator Ben Stevens and Senator John Cowdery to push their PPT agenda. As jurors went into the afternoon recess, they started hearing Smith's take on the secret audio recordings, including Kott's talk with VECO about getting a job. Smith said, on taped conversations, he thought it was Kott's job to get them a pipeline.

Smith Admits to Bribing Kott

Repeatedly on the stand Thursday afternoon, former VECO Government Affairs Vice President Rick Smith told jurors he had joined with his former boss, Bill Allen, to bribe Pete Kott. Apparently, all through the regular Legislative and special sessions Smith said Kott followed VECO's wishes. When it appeared a higher oil tax rate and credit rate than 20/20 would pass, prosecutors got Smith to admit that Kott was instrumental in returning the bill to its original 20/20 form or killing it altogether.

VECO wanted the bill eventually killed because he and Allen felt a higher rate would kill a pipeline's chances, and in turn that would kill VECO's chances of making money.

The Dittman Poll   

When Kott decided to run for reelection, Smith told jurors how Allen and he agreed to pay for a poll well-known pollster, Dave Dittman, would perform.

"We felt it was good for us...  I told him we'd pay for it...  We'd make sure when the bill came, we'd pay for it," said Smith.

Smith said they wanted Kott around to make sure 20/20 could be revised and passed the next Legislative session.

"He's our guy....  And he always goes to support us....  We know all along Pete Kott was going to support anything we want."

Prosecutors introduced the $2,750 invoice in evidence with Smith's signature on the check.

Getting Peter Kott Jr. Money

Since Pete Kott got involved in the race late, Smith said he needed money, specifically, to pay his son's campaign manager's salary. Taking Peter Kott Jr. out of the family flooring business was a price the Kott family could not afford.

Hardwood Floor Cover

To get Pete Kott money for his son, Smith says he comes up with an idea to create a fake invoice to show additional hardwood flooring charges for previous work done to Smith's floors. He said he met with Kott secretly at Juneau's Rendezvous Bar, because, "he felt it was illegal."

Smith said the two agreed on the terms. Smith later tells Allen in a recorded conversation, he would take care of Kott's financial situation, because he didn't want Allen, "getting tainted."

Smith explained to jurors he didn't want Allen to have any legal problems.

"I wanted to protect him," said Smith.

When Smith calls about the flooring invoices to his VECO assistants, he discovers Allen has already written a check for Kott. Smith says he picks up the nearly 8,000-dollar check and delivered it to Kott. It's now decided the charges Smith says are bogus will appear on Allen's invoice.

Defense Cross Examines Smith

In the last hour of testimony, Wendt established how VECO had done more than a hundred polls for various political candidates. Smith could not recall, out of all of the polls, any stain behind VECO walls. Smith went further, saying no one ever reimbursed VECO for a poll. Wendt tediously went through polling specifics, including candidate's input, trying to establish Kott was no different than any other person who had VECO pay for a poll. And while Smith said almost exclusively, people always asked VECO to pay for polls, Wendt got Smith to admit Kott told Allen, Kott did not want a poll. Wendt brought up 7,500 recorded phone conversations to establish that. The defense established, out of all of those, nowhere on any transcript did a Kott campaign staffer ask VECO for a poll. Late in the day, the defense wrapped events for the day by trying to make jurors believe Kott did not always follow the VECO line.

Kott Trial Day 4

I was out for the Jewish holiday.  Here's adn.com's article:

Pete Kott's corruption trial defense emerges
BILL ALLEN: Ex-Veco chief says he bribed the defendant, Kohring and Ben Stevens.

By  LISA DEMER  and SEAN COCKERHAM
Anchorage Daily News

(Published: September 14, 2007)                 For much of Thursday at Pete Kott's corruption trial, defense lawyer Jim Wendt tried to chip away at the story being told from the witness chair by former Veco chief executive Bill Allen.

Kott, a Republican and former House speaker from Eagle River, is accused of pushing new oil tax legislation on behalf of Veco that was also favored by North Slope oil producers. In exchange, prosecutors say he got nearly $9,000, a political poll and the promise of a job.

Wendt kept pushing to get him to say Allen's promise of a job didn't really mean much or that the money Veco executives gave to Kott was legitimate.

Allen, 70, though weary and showing the strain at times after two days on the stand, didn't go along with the defense.

He is a key prosecution witness in the trial of Kott, a man whom Allen called a close friend, almost like family.

Allen told jurors he already has admitted his guilt in a conspiracy. He testified that he pleaded guilty to bribing three former legislators: "Pete Kott, Vic Kohring and Ben Stevens."

Kohring, a Republican from Wasilla who served in the House, is awaiting trial. Stevens, a Republican and former Senate president from Anchorage, hasn't been charged. Allen didn't mention a fourth legislator, former state Rep. Bruce Weyhrauch, whose corruption case was split from Kott's just before the trial began.

Allen testified that he didn't always tell FBI agents who were investigating corruption among legislators what they wanted to hear, but it was the truth.

"I worked real hard trying to make the truth and everything ... to be fair," Allen said.

Allen said that he expected to be sentenced to 10 to 11 years in prison but that no promises had been made. "Whatever happens to me happens."

He was confronted by FBI agents on Aug. 30, 2006, while going to breakfast with Sen. Fred Dyson, who unknown to Allen was helping in the investigation.

Allen said he agreed to cooperate to save his three grown children from being indicted and to spare Veco, which he built from its roots on Cook Inlet rigs to an international company with more than 4,000 employees. Veco was sold last week to CH2M Hill.

From the FBI headquarters in downtown Anchorage that first day, Allen called Kott. The FBI, which was recording the call without Kott's knowledge, wanted to know more about a $7,993 payment from Allen that apparently was destined for Kott's son.

Prosecutors say the money was paid to Kott through an inflated invoice from his hardwood flooring company.

"Have you got your son took care of?" Allen asked Kott in the call, which earlier had been played for jurors.

Yeah, Kott answered.

"Did Rick get it done for you?" Allen asked, referring to former Veco vice president Rick Smith, who also has pleaded guilty to bribery and other charges.

Yeah, yeah, Kott answered.

"How did he do it or -- can you tell me?" Allen went on.

Kott reminded Allen that it was his check.

"Remember we talked about three, four or five weeks ago just add on X amount -- I forgot what it was exactly -- to your bill or something," Kott told him.

Prosecutors have played dozens of secretly made recordings for jurors that expose crude language, drinking and political deal making in which, they say, Kott was corrupted by Allen and Smith.

On Thursday, defense lawyer Wendt asked Allen if the $7,900 was an advance for future flooring work, not a bribe.

Allen said he didn't know anything about any future work. The money, he said, was for Kott's son, Peter Jr., to take time off from the flooring business and help out on his father's campaign.

The defense appeared to score a point when Wendt pressed Allen on whether he had offered Kott a lobbying job "with Veco."

Allen said in at least one of the recorded conversations that Kott would be a lobbyist. But when Wendt asked him to find on the transcript where he specifically promised that Kott would be a lobbyist for Veco, he couldn't.

"In my mind I told him he would be a lobbyist with Veco," Allen said, adding he believed that was Kott's understanding as well. Another issue concerns $1,000 cash that Allen handed to Kott in Suite 604 of Juneau's Baranof Hotel. Many of the recordings were made there.

Wendt asked Allen if that wasn't just reimbursing Kott for money he had contributed to Gov. Frank Murkowski's campaign.

Allen said he didn't owe Kott anything for that. But Wendt repeatedly asked if the $1,000 was payback for the contribution.

"Yeah, but he didn't ask for it. I just gave it to him ... goddamn," a frustrated Allen said on the witness stand.

Wendt contends Kott didn't always do Veco's bidding and was on the opposite side of matters such as workers' compensation.

But Allen testified he didn't remember if there was ever any issue where he and Kott split.

Allen said he was friendly with a few legislators, all Anchorage Republicans, including Stevens and state Reps. Mike Hawker and Norm Rokeberg.

He was especially close only to Kott and state Sen. John Cowdery, he said.

Kott was a drinking buddy who lived with him for a few months in 2005 to be closer to flooring jobs, Allen said. He related to Cowdery because both were contractors -- Cowdery used to run an excavation business -- and liked to talk shop.

Both regularly showed up at his downtown Anchorage home unannounced. He welcomed it. Cowdery would say "I'm at the front door," Allen told jurors.

Wendt asked Allen about Veco's hiring of legislators as consultants. Allen talked about two, Stevens, and former state Rep. Tom Anderson, R-Anchorage. Anderson was convicted in July of seven federal charges in another corruption case, but the allegations didn't involve Veco.

Allen said another executive hired Anderson and he only found out later.

"He was supposed to be like a lawyer," Allen said. But he admitted "I don't know why we really hired him."

Allen told jurors he talked with Kott about eventually going to work for Veco -- but after he was out of office. He said Veco shouldn't hire sitting legislators and it shouldn't have happened with Anderson.

As to Stevens, he started consulting for Veco in 1995, six years before he was appointed to the Senate, Allen said. "He was real good at details. He was like Pete. He would work," Allen said.

By the time Stevens was in the Senate, he had four kids, Allen noted. "How am I supposed to say 'now that you're a senator, Ben, I can't give you more money,' " Allen testified. "I couldn't do that."

One strange moment happened at the end of Friday's testimony. Wendt asked Allen if he had threatened to have his nephew, Dave Anderson, killed for being "involved in blackmail." Allen said there was blackmail but that he never threatened to have his nephew murdered.

"I told him I'd kick the s--- out of him," Allen said on the witness stand.

The trial resumes today with Allen still on the stand. Smith also is expected to testify.

The trial is expected to take much of next week.

KTVA's Founder Dies

It is no doubt a sad day for Alaskan's -- especially the KTVA family.  Augie Hebert, who founded my TV station, and was a true Alaskan pioneer passed away this morning.

From ktva.com:
Alaska broadcast pioneer and KTVA-TV founder Augie Hiebert passed away early Thursday morning.  He was 90-years-old. 

In 1953 Augie put Alaska's first television station, KTVA-TV, on the air. Legendary newsman Walter Cronkite called him a pioneer. Augie's work in our community wasn't just confined to radio and television. He was president of the Anchorage Chamber of Commerce, first president and one of the founders of the Alaska Broadcasters Association, director of the Alaska Educational Broadcasting Committee, the Civil Air Patrol and the Pioneers of Alaska.

In 2005, the National Academy of Television Arts and Sciences - Northwest Chapter - honored him as the first inductee into their Gold Circle.

Funeral arraignments are set for September 21.

More Coverage: KTUU-TV' Channel 2 (NBC), Anchorage Daily News, ABC Alaska News

Rosh Hashanah

I am off from work today celebrating the Jewish New Year.  Thought it would be a good time to borrow a line from my friends at www.jewfaq.org:

...In the seventh month, on the first of the month, there shall be a sabbath for you, a remembrance with shofar blasts, a holy convocation. -Leviticus 16:24    

    Rosh Hashanah occurs on the first and second days of Tishri. In Hebrew, Rosh Hashanah means, literally, "head of the year" or "first of the year." Rosh Hashanah is commonly known as the Jewish New Year. This name is somewhat deceptive, because there is little similarity between Rosh Hashanah, one of the holiest days of the year, and the American midnight drinking bash and daytime football game.    

    There is, however, one important similarity between the Jewish New Year and the American one: Many Americans use the New Year as a time to plan a better life, making "resolutions." Likewise, the Jewish New Year is a time to begin introspection, looking back at the mistakes of the past year and  planning the changes to make in the new year.

    The name "Rosh Hashanah" is not used in the Bible to discuss this holiday.     The Bible refers to the holiday as Yom Ha-Zikkaron (the day of remembrance) or Yom Teruah (the day of the sounding of the shofar). The holiday is instituted in Leviticus 23:24-25.    

    The shofar is a ram's horn which is blown somewhat like a trumpet. One of the most important observances of this holiday is hearing the sounding of the shofar in the synagogue. A total of 100 notes are sounded     each day. There are four different types of shofar notes: tekiah, a 3 second sustained note; shevarim, three 1-second notes rising in tone, teruah, a series of short, staccato notes extending over a period of about 3 seconds; and tekiah gedolah (literally, "big tekiah"), the final blast in a set, which lasts (I think) 10 seconds minimum. Click the shofar above to hear an approximation of the sound of Tekiah Shevarim-Teruah Tekiah. The Bible gives no specific reason for this practice. One that has been suggested is that the shofar's sound is a call to repentance. The shofar is not blown if the holiday falls on Shabbat.    

    No work is permitted on Rosh Hashanah. Much of the day is spent in synagogue, where the regular daily liturgy is somewhat expanded. In fact, there is a special prayerbook called the machzor used for Rosh Hashanah and Yom Kippur because of the extensive liturgical changes for these holidays.    

    Another popular observance during this holiday is eating apples dipped in   honey, a symbol of our wish for a sweet new year. This was the second Jewish religious practice I was ever exposed to (the first one: lighting Chanukkah candles), and I highly recommend it. It's yummy. We also dip bread in honey (instead of the usual practice of sprinkling salt on it) at this time of year for the same reason.    

    Another popular practice of the holiday is Tashlikh ("casting off"). We walk to flowing water, such as a creek or river, on the afternoon of the first day and empty our pockets into the river, symbolically casting off our sins.    Small pieces of bread are commonly put in the pocket to cast off. This practice is not discussed in the Bible, but is a long-standing custom. Tashlikh is normally observed on the afternoon of the first day, before afternoon services. When the first day occurs on Shabbat, many synagogues observe Tashlikh on Sunday afternoon, to avoid carrying (the bread) on Shabbat.    

    Religious services for the holiday focus on the concept of G-d's sovereignty.

    The common greeting at this time is L'shanah tovah ("for a good year"). This is a shortening of "L'shanah tovah tikatev v'taihatem" (or to women, "L'shanah tovah tikatevi v'taihatemi"), which means "May you be inscribed and sealed for a good year." More on that concept at     Days of Awe.    

    You may notice that the Bible speaks of Rosh Hashanah as occurring on the first day of the seventh month. The first month of the Jewish calendar is Nissan, occurring in March and April. Why, then, does the Jewish "new year" occur in Tishri, the seventh month?    

    Judaism has several different "new years," a concept which may seem strange at first, but think of it this way: the American "new year" starts in January, but the new "school year" starts in September, and many businesses have "fiscal years" that start at various times of the year. In Judaism, Nissan 1 is the new year for the purpose of counting the reign of kings and months on the calendar, Elul 1 (in August) is the new year for the tithing of animals, Shevat 15 (in February) is the new year for trees (determining when first fruits can be eaten, etc.), and Tishri 1 (Rosh Hashanah) is the new year for years (when we increase the year number. Sabbatical and Jubilee years begin at this time).    

    See Extra Day of Jewish Holidays for an explanation of why this holiday is celebrated for two days instead of the one specified in the Bible.

Kott Trail Day 3

FBI Special Agent Steve Dunphy continued to guide jurors through the fed's secret recordings Wednesday morning. In the first tape jurors heard former House speaker Pete Kott talking with VECO's Rick Smith about a good time for VECO to schedule Kott's fundraiser. They said Representative Don Young's pig roast, another VECO fundraiser, would not be a good time to hold it. Other lawmaker fundraisers mentioned could apparently also interfere. Mentioned as a possible location was the Petroleum Club. Despite Kott's insistence, Smith got agitated at the notion he, "ran the place."

The Dittman Poll

Smith and Allen emphasized to Kott on phone recordings how they paid for a Dave Dittman poll for Kott. The results show Kott down in the polls to then Assemblywoman Anna Fairclough. Allen and Smith talked about, "doing whatever it takes," to get Kott re-elected, because they needed him down there.

Ted Stevens and Don Young

The recordings show how Kott wanted to get both Senator Ted Stevens and Representative Don Young's endorsements. Throughout these three tapes, Kott mentions making appearances at Young's pig roast to make sure he gets a picture with Young. He also mentions getting a picture with Stevens.

The Kott Money Scheme

Smith and Allen can be heard talking about figuring out how to get Kott and his son, Peter, money. Smith tells Allen, "I don't want anyone getting tainted. I mean you (Allen) can't get tainted. I (Smith) can get tainted."

Allen then tells Smith and Kott, "We've got to figure out something that's foolproof."

Kott responds, "Oh, it's foolproof."

Later Smith asks Kott if he's going to Young's pig roast because, "I've got your hardwood floor check for you from Bill."

Smith apparently then talks to a VECO employee about Kott's invoices.

The government ended their case by playing, perhaps, the most damning piece of evidence. On August 30th, in a conversation between Kott and Allen, Allen asks Kott if he can tell him how Smith, "got it done."

Kott tells Allen, "It was a check that came out of your checking account . You remember what we talked about four or five weeks ago? Just add X amount on the bill."

Defense Cross-examines FBI Agent

Kott's lead defense attorney, Jim Wendt, focused the early part of his cross on when it was proper to record and when it was not. Wendt says he asks the question because some recording portions played as evidence did not seem relevant.

Out of an estimated 18,000 phone recordings, Agent Dunphy testified he only specifically watched the Baranof Hotel's estimated 400 video recordings. Dunphy said out of the 18,000 audio recordings he only listened to about 200 and was unfamiliar with the rest of the material.

On the 400 video recordings, Dunphy said there were 15 to 20 more people, not influential to the case, who were in room 604 at one time or another.

Government Redirect

The government established, even though this was Dunphy's first time to monitor a public corruption case, they looked at his vast experience monitoring wire taps. Dunphy says this case is no different than others, as far as what is pertinent information and what should be recorded.

After the afternoon recess Bill Allen is scheduled to take the stand.

Bill Allen Takes The Stand

Former VECO Chairman Bill Allen took the stand Wednesday afternoon detailing the company's background and how he became involved in Alaska politics. At its 2005 height, Allen estimated his billion dollar company had about 5,000 employees worldwide, about half of them here in Alaska. Allen said when Native corporations began to compete with his oil fields services company in the mid-eighties, he had to get involved in politics.

Allen said, "I got involved in politics. Otherwise, they'd push us out."

When prosecutors asked Allen about political fundraising he said, "Legislators, if they're working with the oil industry, I try to help them out with their campaign. Without having the money to do their ads, people are not going to know who they are."

Rick Smith, VECO's former Government and Public Affairs official apparently became key to Allen in the early 1990's.

"Rick told me, 'Hey, I can organize those fundraisers.... ' And he was really good at it," said Allen.

Those fundraisers also became key in the late eighties as Allen developed many friendships.

"Everybody, particularly on the Republican side, even some Democrats," said Allen.

Allen says that's how he met Pete Kott in the ninties. At VECO, Allen described the special bonus program where officials were reimbursed through bonuses if they contributed to VECO-approved candidates.

"You know, if you help the industry, most of our work came from the industry. If you are going to help the industry, then they should support the same legislators."

Oil taxation was particularly important to Allen. Allen told jurors how important PPT was going to be to the upcoming 2006 Legislative Session.

"As soon as I knew what it was called, I started talking to them (lawmakers)," said Allen.

That included Pete Kott. Allen described their relationship as "close." Late in the day prosecutors started replaying Allen's portions of the secret recordings. On the conversation where Kott leaves a voicemail asking Allen for instructions, on the stand Allen told jurors, "He (Kott) already knew we wanted a gasline . If he needed a job, I'd give him a job."

When asked if he knew the feds were recording him, Allen replied, "If I knew that, I would not have said all of this stuff."

Also in court:

Besides a slew of reporters, the court room was also packed with well-known faces:

Senator Fred Dyson

Bruce Weyhrauch's legal team

Ray Metcalfe

Senator Bill  Wieckowski

Eddie Burke

Kott Trial: Day 2

On former House Speaker Pete Kott's second day of testimony federal agent Steve Dunphy continued to guide jurors through secret audio and video recordings. The recording played in court Tuesday morning focused on conversations between Kott, former VECO executives Bill Allen and Rick Smith and, at one point, former Senator Ben Stevens. Jurors took note when Kott can be heard on tape saying, "When Bill Allen tells me to vote it out, I'll vote it out."

Barbados

Repeatedly on the tapes Kott can be heard referencing Barbados. Prosecutors say this was a code word Kott would use to remind Allen and Smith of the VECO jobs they promised him in return for his Legislative favors.

Legislative Influence
Representative Gabrielle LeDoux

Kott can be heard talking to both Allen and Smith about influencing Representative Gabrielle LeDoux's PPT vote. At one point, Kott tells Smith it would be a good idea to pay a visit to her birthday celebration and buy her a drink.

Senator Fred Dyson

Kott talks about how he has the power to get Senator Fred Dyson to vote VECO's way. At one point Kott says he has Dyson "over a barrel." When Smith asks what that means, Kott explains he tabled Dyson's abortion bill. Kott says, "If he wants my vote, he's going to have to get with me on oil taxes."

Representative Bruce Weyhrauch

Kott tells Smith they're going to get Weyhrauch. When Smith asks Kott how, Kott tells him Weyhrauch applied to be a VECO lawyer. Later Kott tells Smith Weyhrauch voted the wrong way on PPT, helping to pass a higher rate than VECO wanted. Kott tells Smith he will move with Weyhrauch to rescind or take back the passage. This implies the next time Weyhrauch will vote the right way.

Representative Ethan Berkowitz

When it is clear a higher PPT rate will most likely pass, VECO officials want PPT killed. Kott boasts to Allen and Smith in Baranof room 604, how he was successful at manipulating and lying to then Minority Leader Ethan Berkowitz. Kott tells Allen and Smith how he made Berkowitz think the PPT VECO wanted was a bad deal. And Kott says he was successful at Berkowitz giving Representative Harry Crawford and Eric Cross votes to them

"I sold my soul to the devil"

Toward the end of the session, Smith congratulates Kott on the FBI video tape for a, "good job." Kott replies, "I sold my soul to the devil. And I will get her done."

Tuesday late afternoon: secret audio and video recording played
In afternoon proceedings audiotapes were played where Allen Smith and Kott discussed a number of lawmakers' stances, PPT and if it's possible to get them to agree to VECO's 20/20 rate. Names mentioned include Representative Vic Kohring, Representative Bruce Weyhrauch, Representative Peggy Wilson, Representative Gabrielle LeDoux, Representative Jim Elkins, Representative Mike Hawker, Representative Eric Croft, Representative Harry Crawford, Representative Tom Anderson, and Representative Lesil McGuire.

At one point Allen asked Kott about a note he sent Mcguire on the House floor during the PPT debate. Kott says it caused McGuire to change her position to be in line with VECO's wishes. We also see a portion of the videotape prosecutors alluded to in their opening statement. They say out of the camera's view Allen comes out with a 1,000 dollars cash in a briefcase and hands it to Kott. Prosecutors say Allen was reimbursing Kott for campaign contributions he made to former Governor Frank Murkowski. As far as the Senate side, it appears prosecutors want jurors to believe Ben Stevens was going against Senator Con Bunde, in line with VECO officials and they felt Bunde was necessary in getting other senators in line with 20/20.

Kott Corruption Trial- Day 1

Today former House of Representatives Speaker Pete Kott's public corruption trial began.  I'll be blogging from court every day.

Day 1: Government lawyers and former House Speaker Pete Kott's legal team laid out their opening statements Monday morning

Prosecution

Between 2005 and 2006 the feds accused Kott of selling his PPT oil tax vote. They say they will play secret recordings to prove this. In exchange for Kott's vote the feds say former VECO executives Bill Allen and Rick Smith promised Kott VECO employment if Kott voted VECO's PPT wishes. Allen and Smith were pushing for former Governor Murkowski's 20/20 plan. The plan called for a 20 percent tax rate in exchange for producers getting 20 percent tax credit incentives.

Prosecutors say VECO stood to heavily profit from Murkowski's plan and Kott was their "go to" man. Prosecutors also say the former Eagle River representative specifically tried to influence other lawmakers' PPT vote. Those include sitting Representatives Gabrielle LaDeux, sitting Senator Fred Dyson and former Juneau Representative Bruce Weyhrauch. Weyhrauch also stands accused in the case. His trial was delayed last week while the prosecution appeals a pretrial evidence ruling. Allen and Smith have already pled guilty in the case.

Defense

With no surprise, Kott's defense says he is innocent. They say the only thing he is guilty of is working to get a natural gas pipeline. The defense established 80 to 90 percent of the state supports his project and Kott was one of the first lawmakers to push for the project. They adamantly say Kott was NOT Allen's "go to" man, as they will provide evidence showing any work Kott and VECO shared was legal, since PPT was a producer tax not a VECO tax. Kott says when the secret recordings are played they will show there is no bribery or extortion evidence.

First Witnesses
Dan Dickinson

Current Muni project manager, Dan Dickinson, was the first witness to take the stand. During the time in question, Dickinson was part of former Governor Murkowski's gasline team. He worked as a pro-Murkowski 20/20 plan lobbyist and functioned as a gas tax specialist.

Prosecutors had Dickinson establish Alaska's gas tax structure history and asked for his expert opinion, if lawmakers have the power to change bills. The defense had Dickinson testify he never had any interaction with Kott and established the governor's gasline team was pushing for the same 20 percent rate Kott was pushing for.

Suzanne Lowell

Suzanne Lowell, Alaskan Legislator Chief House of Representatives clerk, took the stand. The prosecution and the defense used her knowledge to establish House Speaker duties. Kott is the former House of Representatives speaker.

Steve Dunphy

FBI Special Agent Steve Dunphy talked about how wiretaps are obtained. Prosecutors say he will be a lengthy witness. Through the rest of the afternoon, Dunphy guided jurors through secret recordings. They included cell phone conversations between, Kott, Smith and Allen. The conversations included a lot of vulgarity. It seems persecutors are trying to paint a picture of the beginning of the alleged scheme: that Kott would get a job for VECO favors.