VECO's executives are major contributors to Republican political
campaigns.

The corporation, founded by Allen in 1968, also operates in Asia, the
Middle East, the Caribbean and elsewhere in the U.S. It has about
4,000 employees.


From The Associated Press, 5/8/07:
http://www.cnn.com/2007/LAW/05/08/pipeline.bribe.ap/

Oil execs plead guilty in political kickback scandal

Story Highlights

ð Cash, jobs, favors exchanged for support on pipeline, oil tax bills

ð Pleas come days after indictments of lawmakers on bribery, extortion
charges

ð Feds: Indictments are product of probe, raids last year at six
lawmakers' offices

ð Oil execs could face 10 years in prison, stiff fine; legislators
maintain innocence

ANCHORAGE, Alaska (AP) --

The founder of a multinational oil services company and one of his top
executives have admitted to illegally paying more than $400,000 to
Alaska lawmakers in a widening political corruption scandal.

Bill J. Allen, chief executive of Anchorage-based VECO Corp., and Rick
Smith, a vice president, pleaded guilty Monday to bribing state
legislators with cash and the promise of jobs and favors for their
backing on bills supported by the company.

Allen, 70, and Smith, 62, appeared separately in U.S. District Court
to plead guilty to extortion, bribery and conspiracy to impede the
Internal Revenue Service.

The pleas came days after the indictment of one current and two former
Republican members of the Alaska House of Representatives on federal
bribery and extortion charges related to last year's negotiations for
a new oil and gas tax and a proposed natural gas pipeline that would
have benefited VECO.

House Democrats on Monday asked Gov. Sarah Palin and House Speaker
John Harris, R-Valdez, to consider a fall special session to review
how the petroleum profits tax was approved.

The three indicted lawmakers -- Rep. Vic Kohring of Wasilla and former
Reps. Pete Kott of Eagle River and Bruce Weyhrauch of Juneau -- have
pleaded not guilty to accepting payoffs from VECO.

The FBI has said the arrests Friday stemmed from an investigation that
led federal agents last summer to raid the offices of at least six
lawmakers, including Kohring, Kott and Weyhrauch.

Among those raided was the office of then-Senate President Ben
Stevens, the son of U.S. Sen. Ted Stevens, R-Alaska.

Ben Stevens did not seek re-election last year.

No charges have been filed against the younger Stevens, who has
reported collecting more than $240,000 in consulting fees from VECO
since 2000.

He could not be reached Monday but his Seattle-based attorney said the
former state senator is blameless.

"Ben Stevens denies he's engaged in any criminal conduct and maintains
he is innocent of any wrongdoing," John Wolfe said.

Allen's attorney did not return calls for comment Monday. Smith's
attorney, John Murtagh, declined comment.

Allen also pleaded guilty to issuing company bonuses to VECO
executives to repay them for campaign contributions they made to
politicians, then claiming those bonuses as legitimate company
expenses.

"It's an unfortunate day," said Amy Menard, an attorney for VECO.

"No company wants to find itself where VECO is at. It's a difficult
set of circumstances for any company to contend with."

Sentencing was not immediately scheduled.

The sentence recommended for both is about 10 years in prison and a
fine up to $150,000, according to the plea agreement dated Wednesday
and unsealed Monday.

Kott, a former House speaker, is accused of accepting $8,993 in
payments, $2,750 in polling expenses and the promise of a contract as
a lobbyist for VECO in exchange for his support of the proposed
pipeline and a tax proposal favored by VECO, according to court
documents.

A version of the tax passed, but the contract for the pipeline was
never approved.

Kohring is accused of demanding and accepting up to $2,600 in cash and
a $3,000 job for a relative from VECO executives in exchange for his
support.

The indictment also alleges Kohring sought but did not receive a
$17,000 loan for credit card debt.

On Monday, Kohring was stripped of his job as chairman of the House
Oil & Gas Committee, though he remained a member of the panel.

"I firmly believe in the judicial system and that a jury of my peers
will find me not guilty of these charges at which time the leadership
of the House has agreed to return me to my chair," Kohring said in a
statement.

Weyhrauch, a 54-year-old lawyer, is charged with helping advance the
oil service company's causes for the promise of legal work.

VECO's executives are major contributors to Republican political
campaigns.

The corporation, founded by Allen in 1968, also operates in Asia, the
Middle East, the Caribbean and elsewhere in the U.S. It has about
4,000 employees.

____________________________________________________

Another day another Republican scandal.

Harry