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


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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.

CBS 11 News will be in court Friday. We will post updates on our Web site throughout the day.

More about the day's testimony will be available on CBS 11 News at 5, 6 and 10.

To contact Matthew, call 907-273-3186.