Simon Says

Marissa Updates

I've decided to start this blog up again in order to have a central location to keep those who want Marissa updates a place to go.  I have no clue when I'll be posting daily, but your best bet is to check back later at night.

-Matt

It's Been A While...

I really like the idea of having a blog.  Unfortunately, life seems to prevent me from updating my beloved blog as much as I like.  On Halloween I lost my dear friend Celia to cancer.  That derailed a lot of activities like blogging.  And I seemed to get wrapped up in life and work.  One thing I can say is I am fortunate  my station let me put together a proper tribute to Celia.  I thought I'd keep in on here as a lasting memory to her. RIP Celia.

I'll try in the new year to be back more often, with more then just news coverage. Although the way news went up here the last year news coverage became an interesting hobby of mine. Best wishes for 2008!

Kohring Convicted

Guilty.  

That is what Vic Kohring heard three times over Thursday afternoon in a federal courtroom. A jury convicted the former Wasilla representative on three public corruption charges.

CBS 11 News has covered Kohring's trial, and the corruption probe, since it broke.    

Kohring is the third former Alaska lawmaker convicted this year of being publicly corrupt. But unlike convicted lawmakers, former House Speaker Pete Kott and former Representative Tom Anderson, Kohring not only wanted to talk, he wanted to apologize.

"I'm apologizing for the stress and trauma the people who love and support me went through in this whole process," said Kohring.  

It was not clear after Kohring's guilty verdict what the former Wasilla lawmaker was apologizing for; but it was clear Kohring accepts the verdict.

"I just want to say I expected this as a possible outcome and, as I said yesterday, I was willing to accept the outcome regardless," said Kohring.

"Very difficult decisions and just the circumstances, regarding the case are tragic," said a juror.  

The jury apparently went back and forth on whether to convict Kohring or not. In the end, it was guilty for conspiracy, attempted extortion, and bribery. The only not guilty was for extortion.

"There was a little bit of give and take and persuasion," said a juror.

The Feds thanked their prosecutors and agents and in a statement said:
"Their efforts demonstrate that the Department of Justice will pursue public officials who abuse their positions of power for their own financial gain."

"There are appealable issues, but Judge Sedwick gave us a very fair trial," said Kohring's Lawyer, John Henry Browne.  

Right now, an appeal appears unlikely.

"But a sincere, heartfelt apology to the wonderful people of Alaska. That I was very, very proud to represent," said Kohring.

Despite his conviction, Kohring is still acting the politician.

"I've enjoyed working with all you guys as well. You guys have been very polite, very respectful," said Kohring.  

His speech right after being found guilty sounded more like the concessions you expect to hear when a lawmaker loses their office.

"I want to offer my sincere apologies to Alaskans; and my constituents; and my friends and supporters--not for the outcome of the case here, but for an apology along the lines of the trauma they went through with this," said Kohring.

Kohring could face 35 years in a federal prison. He'll be sentenced February 6, 2007. While Kohring would not talk about going to prison, he says he is looking forward to his future, like getting a new job.

Kohring says, "I've got a lot of good opportunities awaiting me."  

Closing Arguments Finish

With TV deadlines and responsibilities today I did not have time to get a blog out.  So here's a look at ADN's Kyle Hopkins:

The feds' case: Parts 1 through 4 -- When Allen says jump ...

Posted by Alaska_Politics   

Posted: October 31, 2007 - 12:03 pm

From Kyle Hopkins at the federal courthouse –

Closing arguments in the Kohring case began with prosecutor Edward Sullivan. (Prosecutors go first and last, because they have the burden of proof, the judge told the jury.)

“There’s an old saying: To whom much has been entrusted, even more will be demanded,” Sullivan told the jurors in front of a crowded courtroom.

Legislators of Alaska are entrusted with representing the values and interests of the voters who elect them, he said, and in return voters demand that lawmakers not misuse their office for personal gain.

Sullivan told the jury that Kohring broke that trust. “He sold his oath in his office …”

He told the jury that the evidence in the case proves beyond a reasonable doubt that: “Vic Kohring has done the bidding of Veco. … That Vic Kohring has lined his own pockets and that Vic Kohring is guilty.”

(Note; I’m going to interrupt myself here. It is surreal blogging from the federal building cafeteria today, with all these federal employees walking around wearing viking helmets, pirate scarves and butterfly wings.)

Sullivan told the jury there are four critical points for them to consider:

1. In Veco’s view, the pipeline – apparently he was referring to the gas pipeline – “was the goose that laid the golden egg.” It was a huge part of Veco’s future, with hundreds of millions of dollars on the line.

2. To get the pipeline, there was a belief that the governor’s 20/20 oil tax plan had to pass.

3. Veco supported that 20/20 tax plan because that’s what Veco’s clients -- BP, Conoco, Exxon – had agreed to. “If Veco wanted those future contracts, it had to keep their clients happy.” Veco had to produce, Sullivan said.

4. Veco execs Bill Allen and Rick Smith went to Juneau to advocate for the 20/20 tax, and used several key legislators to do that. Sullivan said Kohring was one of those legislators …

---

PART TWO: Updated 12:25 p.m.
'They're like a married couple, Smith and Allen.'

Sullivan said that in 2006, the Veco execs were worried that because the oil tax legislation wasn’t going to Kohring’s committee, Kohring might get upset.

He said the jury had already heard evidence of what Kohring can do when upset – a reference to the testimony about SB 185, which Kohring was accused of holding.

Allen and Smith had to get Kohring to support the 20/20 plan, Sullivan said. The jury heard that Kohring is very anti-tax, and they don’t want him doing anything to stall the bill. (Try and lower the tax, for example, even though the oil companies had already agreed to it.)

“They’re worried about other legislators being too high, they’re worried about this guy being too low,” Sullivan said.

Sullivan and, later, prosecutor Joe Bottini, often referred  Kohring as “this guy” throughout their closing arguments.

Sullivan played a tape of Smith talking to Kohring on the phone, where Smith says he doesn’t want Kohring to go “crazy” or “wacko” over the tax bill. The jury heard Kohring say he understands that there’s a lot of give and take in politics and “I don’t want to screw you guys, that’s for sure.” (You can hear all the FBI recordings here. The one he's talking about is Feb. 21.)

What’s key here is that Sullivan is trying to show that Kohring was in Veco’s pocket when it came to the oil tax – that he’d vote the way Veco wanted. Just how the votes went has been a confusing point for both sides.

Looking to interpret the recording, Sullivan says Kohring is reassuring Smith that he wouldn’t screw his No. 1 financial supporter.

That call was on Feb. 21, 2006. Also in that call, Kohring and Smith talk about setting up a meeting on Feb. 23, Sullivan said.

That’s the pub meeting, where Allen told the jury that he gave Kohring $1,000. And that Smith left because he “sensed” money was going to change hands.

How did Smith sense that?

“They’re like a married couple Smith and Allen. He knows what Allen is gong to do. He knows that Allen has given Kohring cash payments in the past.”

Next, Sullivan played the March 4 video of Smith and Allen sitting in room 604. He pointed out the two men didn’t know they were being recorded, and the jury watched a short clip.

The courtroom audio system buzzed, making it harder to hear than usual. The tape showed Allen saying he gave had given Kohring $1,000, and Smith shouting “I know!” and saying that’s why he had left them alone.

This also the clip where Allen says Kohring would “kiss our ass.”

Allen didn’t tell Smith he gave Kohring $1,000 because he wanted to give him a gift, or because they were close friends, Sullivan told the jury.

“He gave $1,000 so he would 'kiss our ass'? Is there anything else I need to say about the relationship between Veco and Vic Kohring?” Sullivan asked.

Sullivan wore a dark suit. In fact, everyone is wore dark suits today: Kohring, his lawyer, and both prosecutors.

As I write this, a guy in a floppy green hat and clanking armor walked by with his cafeteria tray.

---

Updated 1:10 p.m.
PART THREE: No shared love of Russian women

Lets talk a little about the relationship between Kohring and Bill Allen, Sullivan told the jury.

They weren’t best friends, he said.

There was no deep bond over a love of Russian women, he said. (Kohring’s wife is Russian. So was a girlfriend of Allen’s.)

Remember the “Red Carpet List,” Sullivan asked the jurors? Smith and Allen were listed under “supporters” not “friends.”

He said Allen gave Kohring money to keep him loyal, keep him on the team, and support the 20/20 oil tax.

All Kohring brought was his legislative hat, Sullivan said. “He’s not shy about putting it out, asking them for money.”

Sullivan accused Kohring of milking lobbyists and trying to get free meals.

Kohring was always pleading poverty to Allen, knowing Allen had deep pockets, the prosecutor said. “This guy was making nearly $100,000, but wasn’t telling Allen that. Korhing can’t tell him that, because that’s going to stop the money train”

Sullivan said Allen and Smith had a secret. The prosecutor walked closer to the jurors, talking to them in a stage whisper: “This guy” who never voted for a tax was going to support the 20/20 plan.

Sullivan talked about how it was always Kohring who called Smith – not the other way around – with Kohring saying he’d lobby colleagues and advocate good things for Veco.

He reminded the jury that Allen said he took money out of his wallet and put it in his front pocket in anticipation of the March 30th sit-down with Kohring, so Allen could hand the money to Kohring more quickly.

Sullivan focused on the March 30th tape. That’s the tape where Kohring talks about his $17,000 debt, and talks about getting a loan or work from Veco. It’s the meeting where Kohring and Allen discuss Easter eggs for Kohring’s daughter, and Allen hands Kohring some cash.

“Lets be real here, he’s going to Bill Allen because Bill Allen is his No. 1 financial supporter… he’s hoping that Bill Allen will give him the $17,000 dollars.”

Moments later, the courtroom darkened and the jury saw a freeze frame of Allen handing the money and Kohring smiling.

“That is not a gift, that’ s a payoff. That’s a bribe.”

Where’s Kohring’s gift disclosure form for the cash, if the money is a gift? Sullivan asked.

---

Updated 1:40 p.m.
PART FOUR: How high?

Sullivan looked to show the jury that after talking about a loan and getting some cash, Kohring starts talking about lobbying his colleagues on Veco’s behalf.

The jury listed Kohring, on tape, tell Smith he was following up by taking meetings and talking to people about the oil tax.

“Kohring at this point, is working for Veco," Sullivan said.

Next, Sullivan turned to the “hamburger tape” – the June meeting where Allen was thinking of having Kohring skip a vote to derail the oil tax legislation. The Veco execs decide not to do that, but Sullivan looked to show Kohring would have.

“At this point folks, if Allen had told Kohring to jump, he would have said how high.”

As for Kohring’s nephew, Sullivan said he seems like a nice kid, but he got his job because of who he is.

He showed the jury the fax from Smith the other Veco execs, saying Kohring’s nephew was “a winner” for their intership program. Smith and the nephew hadn’t met at that point, he said.

As for the charge that Allen leaned on Kohring to get former Kohring aide Eric Musser to drop an APOC complaint: “The complaint doesn’t go away, but Eric Musser does, shortly thereafter.”

Sullivan talked about the different charges against Kohring, and summarized what the feds say Kohring received from Veco:

- $1,000 at the Douglas pub.

- Money from Allen, given near McDonalds, the night of the “hamburger tape.”

- Money in room 604 on March 30.

- A roughly $3,000 summer job for his nephew.

“I ask you on behalf of the United States to find the defendant in this case, Vic Kohring, guilty of all four (charges),” Sullivan said.

Next: The defendant’s case.     

The defense case: Parts 1 through 4 -- Would you buy a car from Bill Allen?

Posted by Alaska_Politics

Posted: October 31, 2007 - 2:18 pm

After the prosecution gave the first part of its closing argument, Kohring’s lawyer, John Henry Browne stood in front of jury.

“What you’re about to do will probably be one of the most important and serious things that you’ve ever done in your life,” Browne told the jurors.

The government’s argument sounds pretty persuasive Browne said. But only if you ignore the burden of proof. “If you ignore the presumption of innocence.”

One of the things buried in this case is that it’s perfectly all right for a legislator to vote I favor of things that his supporters favor.

“Halliburton gives money to the Bush camp and Halliburton expects some attention from the Bush people. That’s all legal. General motors gives money to legislators, and expects legislators to do things,” Browne said.

So do teachers unions and teamsters, he said. 

Browne talked about the government must prove its case beyond a reasonable doubt. He pointed out that the feds started out by saying, for example, that Kohring tried to get a pickup truck from Veco. That never went anywhere, he said.

At that, a woman on the jury looked at the prosecutors.

Browne read from a sheet of notes with passages highlighted in pink.

Kohring served for years, Browne said. He was re-elected even after people knew an investigation was in the works, and people knew him as an honest man.

Browne talked about the phone call between Smith and Kohrnig, where Smith tells Kohring “don’t you dare” go crazy over the oil tax legislation.

“But according to Mr. Sullivan, they already owned him,” Browne said.

Browne asked the jury to listen to the secretly recorded FBI tapes very carefully.

“You will hear… for example … that Vic Kohring never asked for any money, ever, from Mr. Smith and Mr. Allen. He asked for a loan.”

---

Updated 3 p.m.
PART TWO: 'Not guilty means not proven'

No one can characterize Kohring’s conversation with Allen about a loan as a payment to Kohring, Browne told the jury. That’s fallen apart for the prosecutors, he said.

One of the prosecution’s points is that Kohring told Smith he’d lobbied or met with specific legislators.

So where are those legislators as witnesses? Browne asked.

“It is apparent to you, is it not, how much, (how) many resources the government has?” Browne asked the jury.

“Have you ever been in a (situation) where the government is going after you? Because let me tell you, there is absolutely no end to that deep pocket,“ Browne said.

One of the jurors, a man in the back, nodded.

Browne told the jury they saw FBI agents testify in this case from all over the country – Texas, California. You’ve seen the resources they have, he said.

Kohring and Browne are by themselves, he said.

“Do you not think that if Mr. Kohring lobbied legislators for Veco, the government, who has all these resources, would have them here as resources?” Browne said. “To say, ‘Yeah, Vic did come to me and was pushing this and pushing that.’”

Browne told the jurors that this was his only chance to talk to them. The prosecution would get the last word – and that’s because the burden of proof is such a high hurdle.

That’s for a reason, he said.

“I am waving the flag a little bit. … There are 18- and 19-year-old kids dying today in support of these principles.”

Browne took out the first of a few visual aids he’d brought into court: A white placard with black writing on it. He put it on a stand for the jury to see what it said:

“Not guilty means not proven. “

By finding Kohring “not guilty,” the jury wouldn’t necessarily be saying “he’s as pure as the driven snow,” Browne said.

“Not guilty means not proven,” he repeated.

“That these people with all of their resources” … Brown gestured to the prosecutors …”And the resources of the United States of America, have not proven their case.”

---

Updated 3:35 p.m.
PART THREE: Central casting for a ‘sleazy lobbyist’

“What this case is not about is prejudice about politicians,” Browne told the jury.

There must be more politician jokes than lawyer jokes these days, he said.

This case is not about the legislature’s internal ethics rules and regulations, Browne said.

“This case is not about legitimate contributions and fundraisers.”

“This case is not about assuming that a gift is a bribe … without an agreement to do something illegal."

How did we get here? Browne asked.

It all began with a lobbyist, Frank Prewitt, he said. “He was in trouble with the law, but wouldn’t admit it ...”

Browne took a drink of water.

The government started hearing names of politicians, Browne said. “When the names came out, the FBI started drooling. The names they heard were Ted Stevens. The names they heard were Ben Stevens. The names they heard were Don Young…”

One name was Kohring, he said, talking about how the government made a mistake in Kohring’s case.

Today, it seems it’s common for the government to not admit its mistakes, Browne told the jury.

He said the prosecution didn’t actually know how Kohring voted on PPT before the trial. The prosecution claims Kohring got a payment when in fact he asked for a loan, Browne said.

As for the charge that the job Kohring’s nephew got with Veco amounted to a bribe – that’s ridiculous, Browne said. “Their case is so weak, they turn to that as a basis for a bribe.”

Browne accused the prosecutors of adding new charges because their case was failing – charges such as the complaint about Kohring firing Musser and staying out of Sen. Lyda Green’s race (he called her “Lyla”) at Allen’s request.

Browne said he’s not faulting the government for its corruption investigations, but he looked to draw a clear line between his client and the other politicians.

He talked about Ted Stevens and $400,000 from Veco. (I’ll get to this in the prosecution’s final statements, but they say that number never came up in trial. I'm trying to stick to one side's case at a time.)

Ben Stevens was paid $250,000 in consulting contracts, Browne said. Anderson got $20,000 and a consulting job.

Browne pointed out that he asked Allen if the work on Stevens house was a gift. Allen said it wasn’t.

In contrast, Browne said, the amount of money in Kohring’s case is “less than it would cost you and I to buy a plasma TV set.”

As Browne talked about other public officials, one of prosecutors stood and objected. The judge said something about Browne being “close to the line.”

The defense lawyer returned his focus to Frank Prewitt – the corrections consultant/lobbyist who jurors saw talking to Kohring on a secret tape earlier in the week.

“Mr. Prewitt is central casting for a lobbyist. A sleazy lobbyist, frankly,” Browne told the jury.

He said the government used Prewitt to try and entrap Kohring, and that while Kohring didn't look good eating on camera, he doesn’t hang himself the way the investigators wanted.

The only corroborated evidence of Kohring getting money in the case is the Easter egg money, he said.

Browne said: “If you’re going to believe everything that Mr. Sullivan just said. You have to rely on Bill Allen’s word.”

---

Updated 4:25 p.m.
PART FOUR: Bill Allen's word

After telling the jury that to believe the prosecutors, they have to believe Bill Allen, Browne brought out another visual aid.

This was an excerpt of jury instructions. Browne said the instructions talk about witnesses. I took his message to the jury to be: Take what a witness has to say with a grain of salt if that witness was a deal that could get them a lighter sentence for cooperating.

Browne told the jury that the fact Allen pleaded guilty means nothing as far as Kohring is concerned, and: “Examine Bill Allen’s testimony with greater caution (than) that of other witnesses.”

Browne referenced all the profanity the jury heard on the tapes. “True character is how you act when nobody is watching. Mr. Allen told you that if he knew he was being taped, he wouldn’t have used all those bad words and he wouldn’t have said all those things.”

Browne said: Allen’s demeanor on the stand was self-serving and “pathetic,” and he seemed to want sympathy for only selling Veco for $400 million. “He has memory problems. He has a brain injury. He obviously drinks too much.”

At one point, Browne called Allen: “blasphemous,” “rude,” arrogant,” “grandoise,” and intoxicated and obsessed with power. Making $1 billion a year apparently wasn’t enough for the Veco chief, he said.

Later in his closing argument, Browne said Allen couldn’t describe the conspiracy he’d pleaded guilty too. Browne, quoted Allen, imitating in a drawl: “I just sign what the laywers put in from of me …"

Browne talked about the possibility of Allen’s children being charged if Allen doesn’t cooperate

“Would you, and I’ll pause for dramatic effect, would you make a critical decision in your life based on Bill Allen’s testimony?” Browne asked.

Would you even buy a car from Bill Allen? he asked.

Toward the end of his remarks, Browne seemed to re-assure the jury that it’s OK for them to find Kohring not guilty.

“We know innocent people are arrested every day. And we know that juries find people not guilty every day.”

“Maybe that will disappoint the prosecutors, and maybe that will disappoint the press,” Browne gestured to gallery, “But you cannot disappoint yourselves.”

He asked the jury to use common sense and think about how many times Kohring said on the tapes that he didn’t want a “freebie.

“Do you hear Ted Stevens saying that? Do you hear Ben Stevens saying that?” he asked.

This drew an objection.

“Contain, Mr. Browne,” said the judge.

Browne talked about the various exhibits, pointing out where Kohring said he wants to keep things legitimate, saying that he’s coming to Allen as a friend.

He told the jury that in this case, the government ran into two 6’6” obstacles – a defendant who wouldn’t roll over and “who believes in this system and who believes you’ll do the right thing,” and a lawyer who believes the government has “sadly failed” to prove their case.

Browne talked about the Easter egg money, saying Allen told him to put the money in the eggs. Browne imitated Allen, slurring his words: “This is what I want you to do.”

Before he finished, Browne took out one last placard and placed it in front of the jury.

“Be your word,” it said.

You promised to hold the government to its standard and its burden of proof, he said.

“You promised us you’d do these things, and I’m asking you to do that. Be your word. Thank you.”

I couldn't have kept a stright face.

“What you’re about to do will probably be one of the most important and serious things that you’ve ever done in your life,” Browne told the jurors.

OK, I am hooked on this trial, but when it's over there will be at least two more. Linehan's trial was off the website in a week, just like this will be. I know it's important to Vic-- but is this the most important thing they will do? Even in the top ten? Give birth, buy homes, see a child's dance recital, a hockey tournament, get married, make a decision to get a divorce (Browne knows about that,) decide to study extra hard for a college class and get accepted into a special master's program at Cornell (or obsess over this-- never mind.) Browne must think people have lame lives to think what they decide on a jury is one of the most important and most serious yadda-yadda-yadda. What they decide is one of the most important to Vic. He should be thanking them from the bottom of his heart for taking time out from their lives to be there for his client and really impress how important it is to Vic. Plead about Vic being dedicated to his non-existant wife. His step daughter-- his pet rock!

Browne, I wish I was able to talk to you and I would laugh in your pretentious face. This trial will be over in a matter of days and "the most important thpttttt" will be a distant memory within a week. No matter what the outcome, the jurors will go to their boring lives and have. . . frankly, more exciting, more important and more serious things to consider.

If a juror bursts out laughing at high drama, do they get axed or can they stay? I think I'd still make a solid, unbiased decision, but I think I'd fall over laughing at this.

Bottini's closings ...

Posted by Alaska_Politics

Posted: October 31, 2007 - 6:26 pm    

From Kyle Hopkins in Anchorage --

OK, here's the last of todays' closing arguments in the Kohring trial.

Prosecutor Joe Bottini started the final round of closing arguments today looking to deliver a counterpunch to the points made by defense lawyer John Henry Browne.

I’ll try and list these by topics:

Federal firepower
Bottini started with Browne’s talk about the vast government resources aimed at Kohring.

The corruption investigation has been going on for some time, he conceded. Prewitt, the lobbyist, said he was first contacted more than three years ago. The electronic surveillance lasted almost a full year, from September, 2005, to August, 2006.

Browne wants the jury to think all this firepower was called down on Kohring, Bottini said, but “You’ve heard the names that have been mentioned in this trial.”

“This has been a long-running and very detailed investigation, and Vic Kohring got caught up in it.

Where’s the witnesses?
Browne had asked why the prosecutors didn’t bring in legislators to testify that Kohring lobbied them.

Bottini told the jurors that Browne could have subpoenaed these witnesses in too.

“Go head and call them,” he said.

As for the prosecution only playing select parts of the Kohring tapes, Bottini said: “If he thought there was something that we were hiding from you in this trial, hit play. It’s the button with the little arrow on it.”

’Sleazy lobbyist’
Bottini said that Browne refers to Prewitt, the government’s witness, as a “sleazy lobbyist.”

“It didn’t stop this guy from going out to dinner with him, and getting his meal paid for by Mr. Prewitt,” Bottini said, pointing at Kohring.

Loan or payment?
Sure, Kohring talked about getting a loan from Veco, Bottini said. But it wasn’t just a loan he was looking for, he said, Kohring wanted the Veco execs to solve his problem.

“(Veco vice president Rick Smith) thought Kohring just wanted this taken care of, period,” he said.

Allen’s brain
Browne says you can’t believe what Allen says, Bottini told the jury. “He’s addled. He’s a drunk. He’s confused.”

Bottini said Allen has a brain injury that affects his ability to express himself, but not his thought process. He pointed to Allen’s success as a businessman as proof he’s on the ball.

“Here’s a guy, you know, that built Veco from ground zero,” he said, adding that Allen remained chairman right up until the end.

Gift versus bribe
Bottini looked to make a point that the prosecution had asked Allen about earlier in the trial: That the “Easter egg” money Allen handed to Kohring was a big deal.

You heard Allen say that one of the things the investigators showed Allen when they first contacted him was the March 30 tape of money changing hands, Bottini told jurors.

“He knew his hash was cooked as soon as he saw that tape ... Allen knew it was over right there,” Bottini said.

Bottini talked about Allen and Kohring having a business relationship, not a friendship.

“(Kohring) knows what it took to get Mr. Allen to give him things. Kohring turned this guy into a human ATM machine.”

He gave the March 30 conversation as an example, saying there’s no coincidence Kohring tells the Veco honchos about his debt –saying it could hurt him politically – during the session as important legislation hangs in the balance.

All Kohring had to offer was the sign screwed on his door in Juneau: the one that said legislator, Bottini said: “He took that sign off the door, ladies and gentlemen, and he handed it to Bill Allen.”

“He didn’t give it as a gift, thought. He sold it to him.”

Final word from the prosecution

Posted by Alaska_Politics   

Posted: October 31, 2007 - 5:36 pm

You know that placard that Kohring's lawyer put in front of the jury that said "Not guilty means not proven?"

Bottini took a black marker to it, crossing out words until it read: "Guilty ... proven."

It's The Defenses Turn

The defense ended up putting on a short case, and has now rested. But Vic Kohring left court this morning without testifying. When I asked him why, he told me, "I believe all the evidence has come out that will exonerate me."

Closing arguments will come Wednesday morning.  

Before jurors came in for the day, Kohring's Lawyer, John Henry Browne, talked about recalling Lobbyist Frank Prewitt because he felt Prewitt had been dishonest with jurors about his criminal background. Judge Sedwick said no. That's when Browne said he would be calling two witnesses: Kohring's nephew, Aaron Kohring, and his campaign manager/advisor/friend/Gorilla Fireworks owner, Robert Hall.

Aaron Kohring

Aaron Kohring is a 19-year-old UAF sophomore petroleum engineering major. He also serves as a resident advisor. Kohring says that pays for his room and board, and he even makes a little extra cash.

Aaron Kohring told jurors, "I grew up without a father. And Vic has kind of filled that role...like taking me fishing." 

Talk turned to Aaron Kohring's 2006 VECO internship. You'll remember the Feds allege this is one example of how Vic Kohring took a VECO bribe in exchange for performing Legislative favors. Aaron Kohring said he got up at 4:30 every morning for the $16 an hour job. His mom would drive him from their Palmer home to the Wasilla Wal-Mart parking lot where he would take the Share-a-Ride shuttle down to VECO in Anchorage. Aaron Kohring arrived about 6:30 every morning. He estimated over the summer he made about 3,000 dollars.

"This may seem like a silly question," as Browne asked, " but did you give Vic any of that money?" 

"No," Aaron Kohring replied. 

Aaron Kohring remembered when he was 17-years-old, and about to graduate from high school. 

He said, "Vic informed me there was a position open at VECO. And I was nearing the end of my high school career, so I needed a job."

Aaron Kohring says a short time later someone from VECO informed he had been accepted into their internship program. Aaron Kohring said it went so well, a VECO manager had asked him to consider changing school's to UAA so he could work full time at VECO.

Assistant U.S. Attorney Joe Bottini began his cross examination by asking Aaron Kohring if he ever met Rick Smith. A. Kohring said he never had, but told jurors his uncle had helped him put a resume together for the VECO internship. Vic Kohring eventually delivered the resume to Smith. A. Kohring turned 18-years-old during the summer internship, and started working three days after his high school graduation.

He was never interviewed for the job, and never saw the cover letter Rick Smith wrote, (pretending to be Bill Allen,) recommending A. Kohring receive the position. A. Kohring said during his internship he worked in the facilities department, helping out with manual labor. A. Kohring seemed confused when Bottini asked him if he knew the internship's purpose was for mentoring engineering major college students.

A. Kohring told Bottini he had only heard there were positions open at VECO, and said he guessed he worked in the maintenance department because there was no more room in the engineering program. A. Kohring said he was unfamiliar with his uncle's financial situation, but he did know Vic Kohring is currently living with his grandparents.

Prosecutors ended by establishing A. Kohring never reapplied for a VECO position, when Browne redirected a question he said, "You didn't reapply because this mess happened?"

"Yes." Aaron Kohring replied.

  Robert Hall

Robert Hall is Vic Kohring's longtime friend. The two graduated high school together. Today he's a lawyer by profession. He and his wife own a number of businesses. But the primary business they own is Houston's Gorilla Fireworks. Hall was a volunteer for Kohring's first campaign. Over the years he became Kohring's campaign manger and close political advisor. He said, "Sometimes the calls were daily. Other times we would go months without talking."

Talk turned to Hall's personal knowledge of Kohring's former aide, Eric Musser, who Hall says Kohring never fired. The Feds say when Bill Allen got upset over an ethics complaint Musser had filed he ordered Kohring to fire Musser. Hall said he had tried to get in touch with Musser as early as last week.

As for running against Senator Lyda Green, Hall said Kohring "...never made the decision to run against Lyda." Musser said he knew Kohring to sit on any oil and gas legislation when it was sent to the committee he chaired.

Prosecutor Edward Sullivan started by revisiting the two men's long relationship. Hall classified himself as Kohring's, "...strong supporter and friend." Since 2000, Hall said he had been paid more than 60,000 dollars by the Kohring campaign. Hall said he and his wife had loaned Kohring a truck, and he repaid them by filling up the gas tank.

Prosecutors questioned where in Juneau Kohring had lived during his 12 years as a lawmaker. Hall said he started with a roommate, then on a boat, then in a camper, and for the last six to eight years he slept on his office couch.

When the prosecutor wondered why Kohring, who Hall estimated was making 80,000 to 100,000 dollars a year (including his per diem), was sleeping in his office, Browne objected to the relevance.

Sullivan said, "If he's sleeping in his legislative office, he's not using it for a hotel." Sullivan then established Kohring had done a lot of legislative work on Halls behalf. After the 1996, Miller's Reach fire, many people suspected fireworks had caused the fire. Hall said fire investigators told him two bottle rockets had been twisted together; and if fireworks had caused the fire it would've been arson.

In 1996, legislation was proposed to limit the sale of firework sales, and give the state fire marshal more power. Hall said he supported it and Kohring pushed that agenda, which Hall admitted did directly affect his business. Sullivan also had Hall talk about a 100,000 dollar grant Hall received from Kohring. Hall says he was using the money to try and get a business to move to Alaska. However, to the defense's point about how anti-tax Kohring was, Hall said Kohring actually killed a move by him and others to bring legalized poker games to the Valley because it contained a tax provision.

  Kari MacDonald 

MacDonald was called as a surprise rebuttal witness for the Feds against Aaron Kohring. She is currently CH2M Hill's Recruiting Specialist, and served in the same role when CH2M Hill was VECO. MacDonald was part of the team who oversaw the internship programs back in 2006, when A. Kohring was accepted into the program. There were 100 applicants. Thirty, including Kohring, were hired as college interns. That internship pays 16 to 20 dollars an hour--about 24 dollars an hour, with overtime.

VECO also had a high school internship program paying 10 dollars an hour. A typical VECO college intern was a college junior or senior with an engineering focus. The internship consisted of matching an intern with a mentor, and working on engineering or technical projects. Prosecutors reminded jurors how Aaron Kohring had just graduated high school. In A. Kohring's case she said he was hired because, "He was referred to us by Bill Allen." MacDonald says Kohring's mentor was in the maintenance, not engineering department. Instead of engineering work, she says A. Kohring preformed maintenance, including helping move cubicles. If A. Kohring had not been recommended by Allen, (I mentioned the memo earlier) MacDonald "highly doubts" he would've been hired. As Browne redirected, MacDonald admitted VECO was very impressed by A. Kohring's work.

Closing arguments will take place first thing Wednesday morning.

Pushing Allen Toward Gifts and Loan Admissions

As the defense continued to cross exam former VECO chair Bill Allen, it seems Kohring's defense attorney, John Henry Browne has two goals: first, tear Allen's credibility to shreds; second, prove what the feds call cash loans are really gifts.

Browne tried to show Allen had separate personalities: the professional, kind, giving businessman jurors saw on the stand versus the ruthless, drunken, cursing shrewd businessman who would do anything to get a pipeline built so VECO could make money. For example, Browne got Allen to admit on one secret recording he uses explicatives 38 times. But Allen held strong, saying no matter what version he's seen as, "It's all the same person."

Browne spent time on an Allen drunken tirade caught on tape. Allen is upset about what he thinks a drunken former VECO president Pete Leathard has blabbed to an Australian firm looking to buy VECO - VECO was buying lawmakers, and mischaracterized VECO relationships with Senator Ted Stevens and Representative Don Young.

The Easter egg/loan seeking March 30, 2006, secret tape was revisited. Browne pushed Allen hard. Allen admitted:

-Kohring had never voted for any tax increase.
-Kohring approved him as a friend for a 17,000-dollar credit card loan
-Kohring was never given that loan or a VECO job

Browne is trying to suggest Kohring never wanted anything for free, wanted loans done "above board," and did not want any free benefits. Browne also brought out Ben Stevens and Tom Anderson's names. He's trying to show those two men received all the things Kohring did not.

As for Easter egg money, Browne brought out how Kohring can be heard thanking Allen for that-- suggesting, once again, this was gift money.

Browne even tried establishing Allen did not trust Kohring. Bringing in evidence from the Kott trial transcripts, Allen says he only trusts convicted former House Speaker Pete Kott and former Senate President Ben Stevens.

Browne says the reasons Allen was giving Kohring cash gifts were simple: Kohring was sleeping in his office, had little food and not enough money to visit his daughter in Portland and buy her a Girl Scout uniform. Since his voting record shows there were never any tax votes, or even a PPT, Kohring just took the cash as gifts and Browne says did not influence the process.

Browne then moved on to Allen's plea agreement and brought up Allen's nephew, Dave Anderson. Allen said Anderson was blackmailing him over renovations VECO paid for at Senator Ted Steven's home. Browne tried to suggest Allen was going to kill his nephew over the blackmail. But Allen later said, "I wouldn't have done that because his mother is my sister."

Defense Redirect

The first secret tape Allen saw when he was taken into custody is when he can be seen handing Kohring cash. That's when Allen told jurors he decided to help the feds because, "I knew that was illegal. What I'd done."

The sale of VECO was apparently hurt by the feds not giving the company a pass on future indictments. Allen said he lost hundreds of millions of dollars on the sale:
"I got a big hair cut."

Prosecution established Ben Stevens had done legitimate VECO consulting work from 1995-2002. It's when he became a lawmaker in 2002, that there was "very little" work done, Allen said.

Allen said he is not looking for a reduced sentence based in exchange for his testimony. Allen said, "My life is over anyway. I begged on a pass for VECO. I never got that done. So the hell with it." Allen said he was not proud of his bad behavior seen on secret tapes.

"If I had (known there was) a camera on me, I wouldn't of said the cuss words . But hell, a lot of guys, when they're talking in the oil field, you cuss a lot."

Allen mentioned to the feds the full story. He paid Kohring because he felt sorry for him. But Allen also said, "I wanted to make sure Vic was loyal to me. And he would've done what I asked him to."

Defense Redirect

Browne once again brought up how Vic Kohring never voted for the final version of PPT. Browne said Senator Stevens, Senator Cowdry and Representatives Kott and Anderson voted for it, But Allen said, "I think Vic hung out until we had enough votes. And then he voted. But if we hadn't, then he would've voted."

Allen did admit if he does cooperate completely with the feds, his kids could be indicted.

After jurors left, Browne got into a screaming match with the judge. On Friday, Browne shared a list of words Allen had used on the stand, to refresh his memory for members of the press. A furious Judge Sedwick told Browne not to do that anymore.

After lunch a familiar face took the stand. You may remember lobbyist Frank Prewitt from the Anderson trial. He's the former Corrections Department Commissioner who wore all those wires and secret cameras for the Feds. He did the same thing in the Kohring case: wearing a little hidden camera while eating dinner with the former Wasilla representative.

(One side note here- the defense eventually tried to get Prewitt to say where he wore the camera. Browne asked if it was in one of his shirt buttons. Prewitt was not allowed to answer.)

Anyway, it's the night of February 25, 2005. Prewitt is talking to Kohring about how VECO's giving away consulting contracts to lawmakers. You may remember this was widely covered in the news back in 2005. Kohring tells Prewitt VECO should hire him. Like earlier secret recordings, though, we hear Kohring say he wants everything to be done ethically. Kohring admits VECO officials can be aggressive in telling him what they want, but Kohring doesn't seem to mind.

Kohring also talks about sitting on a bill because he was upset this legislation was not assigned to the House Oil and Gas Committee he chaired. Then talk turns to Kohring's fired aide Eric Musser. The Feds are alleging Kohring let Musser go because Allen was furious about an APOC ethics complaint Musser had filed against former state Representative Bev Masek. Kohring says Musser filed the complaint without telling him. Prewitt asks Kohring if he had Musser fired, and Kohring says no. But Kohring does share the details of the ethics complaint. He says she misspent campaign money to buy gas and pay for her car.

Kohring says he found out about all of this because Bill Allen called him and said, "'What is this chicken blankety-bank?' Chicken (expletive) is what he said, excuse my language."

Then Kohring says people do not believe he had nothing to do with the ethics complaint, and thinks it's too late to get rid of it. Kohring then calls Allen his "number one financial supporter." When it was Browne's turn to ask questions he got Prewitt to admit he had asked for money to work for the Feds...which previously came out in Anderson's trial.

Also on that tape Kohring refers to his "Red Carpet List." As an FBI special agent took the stand later in the day we learned Allen was on this VIP list- made up of Kohring's friends and supporters. The 2005 list we saw in court were folks allowed in Kohring's office anytime:

Lobbyists
(1) Joe Hayes
(2) Wendy Mulder
(3) Eldon Mulder
(4) Jerry Mackie
(5) Jerry Gallagher
(6) Bob Evans
(7) Amy Daugherty
(8) Paul Richards
(9) Paul Quesnel
(10) Michael Hurley

Personal Friends
(1) Robert Hall
(2) Tuckerman Babcock
(3) Gale Kincaid
(4) Tyler Handley
(5) Dick Benner
(6) Fred James
(7) Mark Hanley
(8) George Karatzus

"Supporters"
(1) Bill Allen
(2) Rick Smith
(3) Pete Leathard
(4) Pete Zamarello

Other
(1) Family members and relatives
(2) All legislators

Note: This list is not in order
(LIST ENDS)

The defense continues to say Kohring was getting cash from friends.  What seemed significant about this list- Allen and Smith are listed as supporters.  

APOC's representative testified about what, in their written rules, specifies a gift.  APOC says: a legislator can't accept a gift from a lobbyist; if they received a gift greater than $250 related to legislative work he was not allowed to accept it; if it was not related to legislative work he could accept it, but he would have to disclose it; if a family member received a gift either related or unrelated to legislative business they would not have to disclose it.

Kohring was one of the more "frequent" lawmakers to ask informal APOC advice. APOC estimated Kohring asked hypothetical questions 25 times, with 6-8 separate questions each times. APOC says Kohring never disclosed any gifts from VECO, Bill Allen or Rick Smith.

FBI Special Agent Alan Vanderplog testified about heading up the team who searched Kohring's office and questioned Kohring on Aug. 31, 2006. When Vanderplog called Kohring he says Kohring did not immediately understand the gravity of the situation, telling the agent to call back and make an appointment. That's when the agent told Kohring he had a search warrant for Kohring's Wasilla office. When Kohring arrived Vanderplog says Kohring was cooperative. At first Vanderplog says Kohring admitted he took money from Smith and Allen multiple times, "in the range of hundreds of dollars...and he had not kept records." When Vanderplog asked if there were any other cases where he took VECO money for personal use, he says Kohring wanted some time to think about that question.

Vanderplog says Kohring admitted he was in severe debt for his medical surgery, and had approached Bill Allen about a loan. Vanderplog also says Kohring told him about the Easter egg money, the money for his daughter's Girl Scout uniform and his nephew's VECO internship: "Mr. Kohring thought it was a great benefit for his nephew."

At this point Vanderplog says Kohring changed his story to say he had only received cash from Bill Allen one time. Since there was no tape recoding made of the four-hour conversation, when Browne had his chance to question Vanderplog he called the Feds five page summary into question. Browne, once again, brought up the term "gift." Vanderplog said Kohring had used the term during their conversation. Browne also had the agent admit Kohring had said he voted against PPT.

After jurors were dismissed for the day, Browne told the court he did not know if he would be trying a case. He said he would decide that over night. Browne got the judge's opinion of having character witnesses testify Kohring habitually used this term when folks visited his office: "is there any way I can help you?"

But the judge would not allow those witnesses. Browne estimated his case will take one day, if he tries a case. If not, the case could go to jurors Tuesday.

From VECO's Former VP To Chair- "We gave him the money because we needed votes."

Former VECO VP of Government and Community Affairs Rick Smith continued to maintain his former boss, Bill Allen, bribed Vic Kohring in exchange for his Legislative help. Kohring's defense attorney, Tom Henry Browne, did his best to hammer away at Smith's credibility and reason for saying the bribes occurred. Browne repeatedly brought up Smith's plea agreement -- specifically two things: first, how Smith will most likely get a reduced sentence for his continued testimony for the feds.

You'll remember he testified against convicted former House Speaker Pete Kott and is likely to continue testifying in other corruption trials. Second the defense says in the document where Smith tells why he is guilty, a lot of information being alleged against Kohring is left out.

Issues Addressed

-VECO money to put in Easter eggs and a Girl Scout uniform for his daughter
-A VECO internship for a nephew
-Using Petroleum Club for VECO fundraiser
-Getting a pickup truck for fundraising
-The possibility of VECO paying for a poll

The defense maintained again the money was a gift. They tried to establish that Kohring's nephew was recruited by VECO. They established that a Petroleum Club fundraiser was legal and said that Kohring says on tape that he offered to pay for a truck. The defense also said that Kohring never solicited a VECO poll.

During the prosecution's redirect, they had Smith talk about the money. While Smith admitted Kohring constantly brought up his own tax position, he held strong in saying Kohring had a commitment to VECO to help them get PPT passed. Smith says, "He never used that exact phrase, but he says he'll be there."

As for Aaron Kohring's internship, Smith said VECO would "help him so he would be obliged to stay with us (VECO) on PPT."

Smith gave his take on Kohring's questions about help with his 17,000-dollar credit card debt.

"Vic was hoping Bill and myself could find a solution to his 17,000 dollar dilemma."

Smith said the same about the pickup truck.

"I felt he was hoping we had a truck available for him."

As for the poll, Smith said if Kohring had asked, "more than likely we would've helped Vic get a poll."

The prosecution had Smith admit VECO looked at Kohring the same way they looked at Kott. Smith also acknowledged in his plea it's just a summary of why he's guilty. So the feds say extra facts can come out during trial.

Former VECO CEO Bill Allen took the stand about 11:15 a.m. He talked about growing up in New Mexico and Oregon very poor. At 15-years-old Allen had to drop out of school and move back to New Mexico to help support his mom and family. That's when the now 70-year-old started working in the oil industry as a welders assistant. In 1968, Allen moved to Alaska. He started a small oil and gas company, VE Construction, that would eventually become powerhouse VECO. It grew in the 70's with the pipeline and in the 80's with the Exxon Valdez spill.

By 2005, there were 4,000-5,000 employees, serving mainly BP, Conoco Phillips and Exxon Mobile. The company was a worldwide giant with divisions in Canada, the Lower 48, the Middle East, Russia and, of course, Alaska. Allen estimates VECO had a total billion dollar revenue. VECO was sold to Denver, Colorado CH2M Hill in September.

Allen and VECO got involved in politics in 1984. Allen said he felt Native companies had unfair taxing and permitting practices. After he got involved, and hired as a lobbyist, Allen says things got better. Later, Allen organized fundraisers to seek company contributions. Eventually, that responsibility went to Smith. Allen talked about how he was close with many lawmakers, including Kohring.

At VECO, Allen had what he called a special bonus program where executives would be reimbursed for making campaign contributions. The executives were actually directed who to donate to.

After the lunch break we heard Bill Allen say he gave Kohring wads of cash, upwards of 700 dollars, starting back in 2002. Allen said it was always in 20 dollar bills. So if you do the math, Allen would've been handing Kohring 35 twenty dollar bills each time. Allen said the cash giving went from 2002, to 2006.

So why did Allen do it? 

"I needed the votes. And I wanted to help him," Allen explained. 

Allen told why he felt so sorry for Kohring. He said he worried about Kohring sleeping in his office and eating so much junk food, but having no real money for food. Allen met Kohring in the mid-90s as a lawmaker. The meeting happened at Senator John Cowdery's house. He says he really liked Kohring because of his work ethic, and his no-tax political philosophy. They remained friends. But not best friends.

Allen told jurors about cash giving specifics. The first couple times Allen said were in Kohring's Juneau office. We've already heard about Allen giving Kohring 1,000 dollars cash at a Douglas bar. Allen confirmed that's so Kohring would "kiss our ass." Then there's the 600-700 dollars you see Kohring take from Allen on the FBI secret tapes from Baranof Room 604.

Allen added a surprise to the mix. He said even after he gave up on the idea of basically kidnapping Kohring to hold up the special session (so PPT would die), he still met Kohring at McDonalds. After the two grabbed a bag of hamburgers and headed back to the Baranof together, Allen says he gave Kohring another wad of 20's, which again, totaled between 600 and 700 dollars.

A couple of orders from Allen, seems to suggest what he expected in return for the money. In 2002, and 2004, Allen told Kohring not to run against Senator Lyda Green. He says Kohring obeyed. Allen also wanted Kohring to get rid of an APOC ethics complaint against another lawmaker. Allen wanted Kohring to talk to lawmakers who he thought were not with VECO on PPT, that included Chugiak Representative Bill Stoltze and Fairbanks Representative Mike Kelly. Allen said he expected Kohring to, "talk to them and get them over on the right column."

Then it was the defense's turn. Browne once again focused heavily on Allen's plea agreement, but not before he asked Allen about the day he was arrested. Allen told the same story as Kott's trial. On August 31, 2006 Eagle River Senator Fred Dyson picked Allen up for breakfast. On the way to what Allen thought was the restaurant, Dyson pulled over.

Allen says Dyson told him, "You need to talk to these people." 

With that Allen said the feds were knocking on the car window. That's when Browne asked Allen if he had worked for the feds after his arrest. Allen said, "Yes."

Browne got Allen to say he had worn a wire and recorded secret conversations four times. When Brown asked him who, Allen started to say something sounding like Don Young. That's when there was an objection, and Allen could not finish explaining what he meant. It appears the defense wanted to know that to establish when Smith and Allen wore wires, and made calls. They never called Kohring.

Allen also revisited how much he had bribed Pete Kott. When Browne suggested 9,000 dollars, Allen got upset and said, "No that's not the amount . It's more like 7,000 dollars."

The defense ended the day by saying, expect for the one FBI tape showing Kohring taking cash from Allen, there is no evidence Kohring ever accepted any other cash. Browne argued the earlier cash advances were irrelevant, because he says Allen's plea agreement only applies to 2006 bribes.

The last moments went back and forth between what appeared to be a frustrated Browne and Allen. Browne was attempting to get very specific about the plea agreement. But Allen would not budge.

He said he never completely read his plea agreement. 

"That's why I hired a lawyer," Allen said. 

Then Browne said he found it "hard to believe" Allen wouldn't read a plea agreement. 

"The piece of paper," Browne said, "affects the rest of your life." 

That's when Allen sarcastically asked Browne, "How many people would go line by line and remember the whole damn thing?" 

That's when court recessed for the day.   

There are a couple of interesting notes. Allen suggested there are "many other trials to come." And says he thinks APOC will "file suit" against VECO for the polls they paid for.

Kohring Trial 10/25- Fromer VECO Exec. Says Boss Bribed Kohring

Court proceedings did not get underway until 9:30 a.m. That's an hour after a special sealed hearing between both sides. This morning Judge Sedwick told the court the hearing had to do with limiting the cross examinations of former VECO executives Bill Allen and Rick Smith. The government was concerned because they felt the information could be sensitive to the ongoing investigations and could hurt the "integrity of the future."

Smith took the stand shortly after 9:30 a.m. Looking on a crowded courtroom full of Service High School government students. Similarly to as in convicted former House Speaker Pete Kott's trial, Smith described his background. The 62-year-old moved to Alaska in 1961, when his dad was transferred here in the military. Over the years, he had worked in the oil industry, coming on board with VECO in 1989, after the Exxon Valdez oil spill.

In the early 90's, Smith became VECO's vice president of government and community affairs. Smith said he basically worked with legislators, lobbyists and did community service projects. At VECO Smith met former VECO CEO Bill Allen. The two became close.

Smith said he met Kohring in the mid 90's as a legislator. VECO supported Kohring because Smith said, "Vic had a political philosophy we (VECO) agreed with." Kohring was pro-development, pro-natural gas and for subsidies for industry and low taxes.

Kohring and Smith apparently had a "business friendly" relationship. Smith told jurors he had hired Kohring as a sheet rocker - which is what Kohring did by trade.

Smith talked about how financially important getting a natural gas pipeline would be for VECO. The project would mean a lot of money in new oil field services contracts. At first, Smith says VECO was reluctant to go along with Governor Murkowski's 20/20 PPT oil tax structure to produce. But when the producers were in favor of the plan, Smith said, "If they supported it then, we supported it too."

But Kohring was concerning to VECO, more concerning than any other lawmaker. While VECO officials felt other lawmakers would try to move PPT higher than 20/20, they felt Kohring would try to move the rate lower or hurt it in some way.

Prosecutors started revisiting the FBI's secret audio and video recordings introduced into evidence Wednesday. Starting with the January 28, 2006, conversation, it is established that Kohring does not like any tax increase. Smith says in this phone conversation he says, "I was making reference to the West Slope producers. They were the golden goose to producing a natural gas pipeline."

Smith says he told Kohring, "Don't try not to support the 20 percent tax because of your philosophy in not supporting taxes."

But as testimony continued, we see Smith testify Kohring receives cash gifts from Allen. One took place at Douglas' Island Pub. Smith says he left Allen and Kohring because he knew Allen was going to give Kohring cash. Another cash gift came in Baranof room 604. Smith says after these gift exchanges took place, Kohring became more and more supportive of getting 20/20 passed and lobbying other lawmakers to do the same thing. But Smith said he was suspicious of the 117,000-dollar medical bill credit card debt, because that was happening at the same time as PPT legislation.

Throughout Smith's testimony Kohring's face seemed to turn grimly serious. At points, when Smith was talking about cash changing hands, Kohring looked visibly upset--as though he could cry. Kohring's lawyer, John Henry Brown, objected over and over - trying to keep statements out where Allen was handing off cash. Browne seemed to say there was no way Smith could establish these were bribes.

Kohring is accused of accepting cash handouts from representatives of VECO Corporation. He is accused of accepting at least 2,600 dollars and a 3,000 dollar job for a nephew from VECO CEO Bill Allen or Rick Smith, a company vice president, in exchange for his support on pipeline legislation.

After lunch prosecutors finished up their direct examination of Smith. Then it was the defense's turn. Cross examination went all afternoon and Smith will be back on the stand tomorrow.

The end of the prosecution's case looked at the internship for Kohring's nephew, Aaron. Prosecutors allege this was part of VECO's bribery package. Smith told the court he falsified an e-mail memo to other VECO executives, making it look like it was from then VECO Chair Bill Allen. In it Smith enquired about Aaron's internship. He even wrote, "He's Rep. Kohring's nephew." Smith explained it was so the VECO internship decision makers would know they would be doing something for a legislator who was "important" to the company. The internship paid $16 an hour, $24 an hour with overtime. Smith said Aaron Kohring made about $3000 that summer.

Prosecutors ended their questions by revisiting the June 8, 2006 secret video recording from Baranof Room 604. On the tape you see Allen, Smith and Kott watching the Gavel to Gavel TV channel. Eventually you see Allen come in with a bag full of McDonald's hamburgers. Smith gave jurors his take on the video taking place around the end of the special session. Smith says Allen wanted to kill the PPT bill, and Allen's idea was to basically kidnap Kohring to force a delay. That delay, Smith says Allen felt, would have forced the session to be out of time. So Allen wanted to pick Kohring up at McDonalds. But Smith says he convinced Allen it was a bad idea. So Allen ended up just meeting Kohring at McDonalds. And then the two men can be seen coming back to the room, with burgers in hand.

During the entire cross examination there seemed to be a hostile, antagonistic tension between Kohring's Seattle based lawyer, John Henry Browne, and Rick Smith. Almost the whole cross was spent on Smith's plea agreement. Browne tried to make it look like Smith lied about certain parts. Not just about bringing Kohring. Browne questioned what Smith says in the plea about bribing convicted former House Speaker Pete Kott, indicted former Juneau Rep. Bruce Weyhrauch, Anchorage Sen. Cowdery and former Sen. Pres. Ben Stevens. He said Stevens was paid $243,250 in VECO consulting fees. Browne did get Smith to admit he was not surprised to learn Kohring never actually voted on any PPT legislation.

A somewhat awkward moment ended the court session. Browne spent the last five to ten minutes focused on a drunken Bill Allen quote from the tape. Using giving Kohring $1000 cash as an example, you can hear Allen on the tape say to Smith Kohring will "kiss our ass." Smith and Browne went back and forth over this. That's when the prosecutor objected. Judge Sedwick responded, "I'm assuming he's (Browne) asking if it really happened." The courtroom erupted with laughter. Using a quote from Seinfeld, Brown replied "not that there's anything wrong with that." At that point all sides agreed it was a good time to break for the day.

After the prosecution's redirect tomorrow, Bill Allen is expected to take the stand.

Koring Trial 10/24- Testimony Starts/ Secret Tapes Played

Witness testimony is now underway in the public corruption trial of former Wasilla Representative Vic Kohring. Witness testimony got started after short testimony from FBI special agent Steve Dunphy Tuesday to establish taping procedures. The testimony seems to resemble the case the feds put on in former House Speaker Pete Kott's trial.

Dan Dickinson

Murkowski's former gas team negotiator established the history of Alaska's oil tax structure. Dickinson talked about the change from gross tax structure to the new tax structure, known as PPT, occurring during 2006's legislative session. Dickinson also talked about the importance of PPT to get a gas pipeline built and VECO officials interested in making that happen.

Suzanne Lowell

The House chief clerk established Kohring was the House Oil and Gas Committee Chair. Lowell testified about PPT votes that took place. The defense was able to show, while other convicted and implicated lawmakers, such as Pete Kott, Tom Anderson and Bruce Weyhrauch voted for PPT, referring to journals, Lowell testified that Kohring never did.

Parade of FBI Agents

The Feds played all 25 secret audio and video recordings. Most of the time different FBI agents testified about different tapes. While the prosecution wanted one FBI agent to cover all the tapes, the defense said no way. So we saw agents not only from Alaska but LA, Chicago, Atlanta, even New York's "Organized Crime Unit" on the stand. This is the first time in any of the corruption trials we leaned just how far reaching this investigation went. The Feds apparently took this so seriously they brought in help from the Lower 48's biggest cities.

The audio conversations are primarily between Kohring and VECO's Rick Smith, on Smith's cell phone. They go from late January 2006, to the day before Kohring was arrested in August 2006. During much of the talking Kohring sounds like he's making campaign speeches, referring to himself as "conservative, pro industry, pro oil." The two talk constantly of the changing oil tax structure, and Kohring's reluctance to go with Murkowski's higher oil taxes. But Kohring insists he's "not...beholden to the industry." At one point Kohring tells Smith he should run for office. Smith replied, "I'll only run for the border."

Highlights from the tapes include: Kohring asks Smith to borrow a VECO truck to campaign; Kohring asking Smith to host a Petroleum Club fundraising luncheon for him; a VECO internship for his nephew, that, apparently with over time, paid $24 an hour. On the tape you also hear Kohring telling Smith what his nephew Aaron has told him about the internship. Kohring says, "I wish I could work longer than this summer," Aaron apparently told his uncle. "The money's great." In response to all these requests Kohring can constantly be heard asking VECO officials if there's anything he can do for them.

As we saw in the Kott trial, secret video recordings are repeated where Allen and Smith drunkenly talk about paying Kohring off to get the tax they want.

Allen: Sometimes it's like old Vic the other night.

Smith:Who?

Allen: Vic...Kohring. Vic Kohring.

Smith: (Expletive)

Allen: You know he didn't take off or nothing. I gave him a thousand.

Allen implied he did what he had to do so Kohring would be inclined to "...kiss our ass"  

Then there's the Easter Egg tape. As pre-trial papers indicated, Kohring talks about his daughter and Easter. That's when Allen asks Smith if he has any cash. Then you hear Kohring say, "Thank you very much." Kohring again asks Allen if there's anything he can do for him. Allen says "Just keep lobbying my colleagues for the governor's...plan." Kohring promises to do just that, and report back to VECO any inside information on where other lawmakers stand.

We finally saw the secret video where Kohring can be seen literally taking a wad of cash. In Baranof Room 604 Kohring shows up talking and talks about his medical debt. He tells Allen and Smith he's so far behind- $17,000 to be exact- the credit card debt's been handed over to collectors. Kohring has a heart to heart with Allen and Smith. He tells them he's barely getting by, and asks them for a loan. But Allen worries about APOC implications. That's when the secret video shows Bill Allen reaching across the screen and handing Kohring hundreds in cash.

You'll remember Kohring has maintained he just received cash from friends. Prosecutors maintain it was a bribe. But on the tape you hear Allen say, "I'm doing this ... because you're my friend."

Before the cash changes hands Kohring says he wants to make a discrete, "above board" deal. After Allen gives him the money Allen, Smith and Kohring talk about how Kohring can persuade other lawmakers to go along with VECO's preferred 20/20 PPT.

Finally an interesting tidbit: In the audience today Juror Number 1 from the Kott trial.  

PS- Rick Smith should start testimony tomorrow. Between him and Bill Allen, their testimony should go for the rest of the week. Prosecutors told Judge Sedwick they expect to rest their case next Tuesday.

 

Kohring Trail- Jury Seated and Opening Statements

Political corruption of state lawmakers once again took center stage in a federal courtroom. Former Wasilla Representative Vic Kohring's fate will be in the hands of seven men and five women. The jurors have already heard opening statements.

Once again, as in the Anderson trial, we are seeing both sides rely on secret recordings. Kohring's defense says the tapes will prove he never did anything wrong.

On secret tapes, the defense says former VECO executives Bill Allen and Rick Smith boast they own lawmaker after lawmaker. That includes: Senator Ted Stevens, Representative Don Young, Former State Sen. Pres. Ben Stevens, and convicted former lawmakers Tom Anderson and Pete Kott.

Kohring says he is never mentioned on the tape. Even though Kohring was in money trouble, the defense says former VECO executives Allen and Smith were just helping out their friend.

"If it's a gift, it can't be a crime," said Kohring's Lawyer, John Henry Browne. 

But prosecutor Joe Bottini fired back saying, "The defense will argue these were gifts and had nothing to do with actions as a legislator. But listen to how he (Kohring) offers to do things for him in return."

At the heart of the feds case is VECO's desperation to make a lot of money off a natural gas pipeline. Former VECO officials Allen and Smith felt the only way to get the pipeline was with Governor Murkowski's proposed 20/20 PPT.

The problem is Kohring's voting record. He has never voted for a tax increase. The feds say what Kohring calls gifts, were really a desperate man taking money and changing his voting pattern to help VECO get what it wanted.

Bottini told jurors, "An elected official cannot use that office for their own personal gain...And that's what Mr. Kohring did."

But the defense says they will prove Kohring was simply a hard-working lawmaker, sleeping on his Juneau office couch and living in his Wasilla trailer--a lawmaker who was just taking legitimate gifts from his friends.

Referring to other lawmakers, Kohring's lawyer, Browne, told jurors, "What's important in the end is they all voted for PPT. Mr. Kohring never did."

On Wednesday, the jury will start to hear secret recordings as a number of FBI agents take the stand.

The jury includes seven men, five women and three alternates.  They were picked shortly before noon. Eight of the jurors are from the Anchorage/Eagle River area. The rest are from Glennallen, Dillingham, Nikiski and Palmer.

About half of the jurors have military experience and include a retired Air Force colonel and a retired Marine Corp lance corporal. The jurors include a miner, UAA's Aviation Director, office managers, a housewife, a slope worker, a building contactor, a DOT worker and a People Mover bus driver. What is interesting is that Wasilla's first elected mayor's daughter is on this jury.

Kohring is accused of demanding and accepting at least $2,600 and a $3,000 job for a nephew from VECO CEO Bill Allen or Rick Smith, a company vice president, in exchange for his support on pipeline legislation. Prosecutors also contend Kohring solicited $17,000 to pay off a credit card bill.