Sen. Stevens Probe Focuses On Finances

Financial Bookkeeper For Alaska Senator Appeared Before Grand Jury In Corruption Investigation

(CBS/AP)  A Senate clerk who helped maintain Sen. Ted Stevens' personal financial records was recently called before a federal grand jury in a public corruption investigation that has been joined by the IRS and the Interior Department.

Barbara Flanders, who serves as a financial clerk for Stevens on the Commerce Committee, testified in the past several weeks and provided documents regarding the senator's bills, according to an attorney in the case who spoke on condition of anonymity because grand jury matters are secret by law.

Investigators are scrutinizing Stevens' relationship with oil field services contractor Bill Allen, who helped oversee a complicated renovation project that more than doubled the size of Stevens' home in 2000. Allen's company, Veco Inc., won tens of millions of dollars in federal contracts. Allen has pleaded guilty to bribing Alaska lawmakers.

According to numbers compiled by CBS News, Veco executives have contributed more than $70,000 to Stevens' campaigns.

As head of the Senate Appropriations Committee, Stevens helped steer $30 million in federal contracts to Veco, reports CBS News correspondent Sharyl Attkisson. Also, Veco reportedly paid Stevens' son Ben $243,000 in consulting fees while he was an Alaska state legislator. The FBI has searched his offices, too.

Neither Sen. Stevens nor his son has been charged.

Federal agents raided Ted Stevens' home Monday, photographing and videotaping its contents and leaving with a garbage bag full of unidentified items.

Stevens, 83, is the longest-serving Republican in Senate history. He has denied any wrongdoing and said he paid for all the improvements himself but he says he worries the looming investigation could have political consequences.

Flanders is a longtime aide who helps ensure that Stevens' bills are paid and his personals affairs are in order, the attorney said. She was questioned about the improvement project and how the bills were paid.

Reached by telephone Tuesday, Flanders would not discuss her testimony or describe her duties involving Stevens' personal accounts.

"I work for the Commerce Committee," she said. "I don't have any comment on any other issues."

Jenilee Keefe, a spokeswoman for Committee Chairman Daniel Inouye, D-Hawaii, said there was no evidence the subpoena involved committee business.

"It is a personal thing. She worked for him in another capacity," Keefe said. "Right now we're just not getting involved."

Spokesmen for Stevens had no comment on the subpoena or Flanders' role in the senator's personal finances.

The investigation grew out of a lengthy corruption probe that has ensnared several Alaska lawmakers and resulted in Allen's guilty plea for bribery. Only recently, however, have authorities turned their focus on Stevens and that focus appears to be narrowing.

The Interior Department's inspector general and the Commerce Department have also joined the case to investigate Stevens' connections with a Seward, Alaska, marine science organization that operates the Alaska SeaLife Center, a person familiar with the probe said on condition of anonymity because it is ongoing.

Among many items photographed in Monday's search were cases of wine stored in Stevens' house. Investigators photographed each case and the individual bottles, the attorney said.

About 15 agents took photos and video of various angles of the structure, climbing onto the roof at one point, and eventually entered. They later carried out a garbage bag full of unidentifiable materials and loaded it into an unmarked white van. The curtains were drawn during most of the search.

Investigators did not raid Stevens' home in Washington, where he spends most of his time.

An e-mail statement issued by Stevens through his spokesman in Washington said federal agents had alerted his attorneys that they wanted to search his home. Stevens, who has been in office since 1968, said the interests of justice would be best served if he commented after the investigation.

"I continue to believe this investigation should proceed to its conclusion without any appearance that I have attempted to influence its outcome," Stevens said. "The legal process should be allowed to proceed so that all the facts can be established and the truth determined."

Located 40 miles south of Anchorage, Girdwood is nestled in a valley next to Mount Alyeska and has evolved from a gold mining town into Alaska's only year-round resort community.

Congressional watchdog groups called for Stevens to step down — at least temporarily — from his posts on the Senate's Commerce and Appropriations committees.

"There is growing evidence that Sen. Stevens may have used his powerful perch on the appropriations committee to direct tens of millions of dollars of earmarks to benefit family, friends, business partners and former staff," said Ryan Alexander, president of Taxpayers for Common Sense. She commented in a letter to the Senate's Republican leader, Mitch McConnell of Kentucky.

McConnell has not said whether he would ask Stevens to temporarily relinquish his committee assignments.

Citizens for Responsibility and Ethics in Washington, a liberal watchdog group, called it "imperative that no member under federal investigation be involved in the oversight or appropriations of any agency involved in investigating that member."

The group referred to Stevens' membership on the Appropriations subcommittee that funds the Justice Department.

The Justice Department's probe into Allen's relationships has led to charges against state lawmakers and contractors. Last year, FBI raids on the offices of several Alaska lawmakers included Ben Stevens, the former president of the Alaska Senate.

[kansas1946]

Yawn. Just another day, another corrupt Republican. This "values" party is just looking better and better.

[clestes-2009]

Stevens is a dinosaur!! A relict from bygone days of corruption. He is as crooked as any politician and lined his pockets with money from the oil pipeline. Like the pipeline, his usefullness is over. He is worn out and should just retire!!

Go home and let's get someone who cares about Alaska and retaining the wildness. Not someone who cares only about money!!!!

[pepperp1]

This has moved for a party with a culture of corruption to a criminal enterprise along with the clown as the chief law enforcement official in their pocket. Just imagine if we had a real attorney general how many indictments of sitting Representatives and Senators would be happening, this is what the 5th FBI raid of a politician, think the FBI may be trying to tell us something folks like the DOJ is blocking the next steps. Impeach Gonzo, like Rumsfield he is an inept Cheney Bush corny, the American People deserve better we demand better. Congress get moving this is not incompetence this is criminal corruption of our Justice Department.

[realpatriot1]

seven-pesos,

I don't want to get into a conspiracy debate, but the circumstantial evidence seems to suggest that JFK was murdered by the CIA. John McCone of San Fransisco was the Director of the CIA. California murdered JFK.

The south didn't make America suffer through 8 years of Bush, that was Ralph Nader and the yankees on the Supreme Court.

[firststate]

As of now I really don't care if Bush does pardon him, just so the greedy bas*trad dies broke, disgraced, humilated and the shame of his entire family for generations to come!
Posted by RandalDS


Sorry Randal, that would be justice, but the chances that any of the party's crime bosses, including Stevens will die broke are pretty slim. There are too many offshore banks with no more scruples than these crooked politicians and after all his years in the Senate, he knows where too many skeletons are buried to ever do without anything.

[gingersnapp1]

Seven Pesos:
Please stop saying nothing good comes from the South. First of all, Alaska is not south of much, and the southern part of the U.S.has given us many many wonderful things, including about 30% of the U.S. population.

Just think about gumbo, jambalaya, peach cobbler, that beautiful architecture, the sweet drawls and courtesies of the people, the moss on the trees, the amazingly great music, etc., etc.

[randalds]

Cheney, Gonzo, and Little George will be devastated......

Posted by veteran71 at 12:32 AM : Aug 01, 2007

I know! There goes their 2000 campaign promise to bring back morality and dignity! Such a shame! And they were so trusted until now too! I mean if you couldn't trust a republican, who is always only looking out for America's bests interest, then who could you trust?

Gosh...you...you don't think they'll....resign...or WORSE...from the disgrace...do you???

;-)

[randalds]

Posted by nyckate at 11:08 PM : Jul 31, 2007

he and his son have both been the subjects of speculation of bribe taking, sweetheart deals and kickbacks for years, but old man Stevens has been daring the FBI and IRS to catch him for years because he thinks he's untouchable. His son was run out of office in the Alaska state senate just ahead of his own bribery indictments that he's still under. They look at themselves like the old time Texas cattle barons, a law unto themselves and owning the whole state. Seeing him get taken down would be akin to seeing JR Ewing get his, except Stevens has even less morals and ethics (and a much bigger ego) then the late Larry Hagman's character did.

[seven-pesos]

the south refused to free their slaves...

instead, they took the path of insurrection and war.

after they lost the war, the south was so shamed and humilliated that they sent john wilkes boothe to assasinate abraham lincoln.

when america forced civil rights on the south, the south retaliated by murdering john kennedy.

now those idiot southern snakes make america suffer through 8 years of george bush.

republicans, christians, rednecks, war makers, ignorant dixie trash...

nothing good comes out of the south.

[nyckate]

Wow - now they're even looking at money he might have put in as Earmarks ($1.8 million) that made it's way to his former aide and also his son -- that's big - that's astounding.

[randalds]

hes 83 who cares, bush will pardon him when he leaves office. so nothing will be done to him,i'am sure bush has already called him and told him dont worrie we have the law on are side remember,we have gonzelas!!!!!!!!!!!!!!!
Posted by forthepeopl1 at 07:05 PM : Jul 31, 2007

Stevens has been sucking at the pork pig trough for decades in a manner that would embarrass the fattest greediest hog and basically daring the government to catch him accepting all of his bribes and kickbacks. As of now I really don't care if Bush does pardon him, just so the greedy bas*trad dies broke, disgraced, humilated and the shame of his entire family for generations to come!

[rondok1]

It really doesn't matter what party is involved...

These people in Washington are really out of control...

I'm sure it won't stop until the people of this country are in the streets over it..
The boys and girls in Washington think this will never happen..

But if they keep up, it will...

[randalds]

You just know..

Posted by donnie900 at 08:23 PM : Jul 31, 2007

Yes, I just know.....

[pepperp1]

This clown is now saying he will place a hold on the Dems ethics bill because his airfare will be a problem. Same ole same ole the Repugs believe they are above the law. 17 more months no thank you.

[stevex47]

I'll add this donnie. The only chance the right has is if they can rig another election.

See, again the credibility issue.

Wonder if Giuliani or McCain has any brothers that are governors?

[seven-pesos]

want to build a veritable utopian state?

let the northern and western blue states combine with liberal canada.

let the southern red states combine with mexico.

man, if we could be rid of the republican south

america would really be a super country then!

ha,ha,ha.

war, hate, republikan snakes, christian creeps...

nothing good comes out of the south.

[jonesforch]

fizzal

Same reasons the Mexicans don't. They don't get caught.

[stevex47]

"Well, I hope you hippies can win the next election. Personally, I don't think ya will."

Not a chance donnie. Even McCain's campaign manager got arrested in florida for soliciting oral ***. This Senator. Foley. Gonzales. Your side has about no credibility. At all. Your side is turning on itself real nasty like.

This is gonna cost the right for a long, long, long time.

[fizzal-2009]

The United States of America gives billions of dollars to foreign country,s and when they show up here to become citizens why weren,t they arrested and searched for not paying tax,s to the United States on what they recieved?

[donnie900]

You just know..