Two notes sent to Allen by Stevens in late 2002 seemed to confirm the defense’s position. In each note, Stevens requested a construction bill from Allen, and told him he had asked a mutual friend, Bob Persons, to follow up on the request.

But on direct examination by prosecutors in October 2008, Allen said he had spoken with Persons. “’Don’t worry about getting a bill,’ he said, ‘Ted is just covering his ass.’”

Allen claimed he had mentioned the conversation to the government before, when in fact he mentioned it to prosecutors for the first time just a week before the trial began.

“Not only did [Bottini] fail to correct the false statement as was required by Napue, Mr. Bottini endorsed and capitalized on Mr. Allen’s false denial during his summation,” Schuelke wrote.

Earlier that year, several members of the prosecuting team had shown the notes to Allen, who told them he had not spoken to Persons about the bills. Memos from that meeting were never turned over to the defense, and prosecuting attorneys said they did not remember Allen’s admission.

“The complete, simultaneous and long term memory failure by the entire prosecution team, four prosecutors and the FBI case agent, of the same statement about an important document made at the same meeting made by their key witness in a high profile case is extraordinary,” Schuelke wrote.

The report also covers a sexual relationship between Allen and an underage prostitute named Bambi Tyree, who had engaged in an affair with Allen when she was 15 and later signed an affidavit denying the affair at his request.

While prosecutors told the defense team “the government is aware of no evidence to support any suggestion that Allen asked [Ms. Tyree] to make a false statement,” Shuelke reports the statement was patently false.

“These astonishing misstatements concealed the existence of documents and information in Mr. Marsh’s, Mr. Bottini’s and Mr. Goeke’s possession and well known to them since at least October 2007… which unequivocally documented Ms. Tyree’s admission that she lied under oath at Mr. Allen’s request.”

Ultimately, Schuelke’s report did not recommend contempt prosecution against the attorneys because presiding Judge Emmet Sullivan never issued a “clear, specific and unequivocal order” for the Stevens prosecution team to turn over all exculpatory information.

The Justice Department’s Office of Professional Responsibility is also reviewing the conduct of the attorneys involved for possible disciplinary action.

Read the entire report here.