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Ex-Oil Magnate Sowed Political Influence
By JEANNETTE J. LEE
Associated Press Writer
ANCHORAGE, Alaska (AP) -- The former head of the oil field services company VECO Corp. was once a model of political clout.
From the halls of Congress to the Alaska capital city of Juneau, Bill Allen spent more than two decades throwing lavish fundraisers for favored candidates, sending them generous campaign contributions and lobbying hard for the oil and gas industry.
But Allen's seemingly unshakable influence ended abruptly this year when the founder and then-chairman of VECO pleaded guilty to bribing state legislators.
Now, he appears to be the link between at least three investigations of Alaska politicians by the Department of Justice, the FBI and the Internal Revenue Service.
Two influential members of Alaska's congressional delegation, Sen. Ted Stevens and Rep. Don Young, both Republicans, are under investigation for their relationships with VECO. And three former Republican state legislators have been indicted since December for accepting bribes from Allen and other high-ranking VECO officers. Stevens' son, Ben, former president of the state senate, also is under investigation for ties to VECO but has not been charged.
The multimillion-dollar company is the largest oil field services firm on Alaska's lucrative North Slope, the nation's most productive oil field, and until the federal probes surfaced last year it was one of the state's biggest campaign donors. Oil is the cornerstone of Alaska's economy and funds about 80 percent of the state's annual budget.
Allen and other VECO officials were known for their campaign fundraisers at the swank Petroleum Club in Anchorage. And they have given hundreds of thousands of dollars in campaign donations to Stevens, Young and a host of state lawmakers.
"They were a very important source of money to some of the more pro-oil company candidates," said state Rep. Les Gara, an Anchorage Democrat. "Without VECO's involvement in state politics, we'll have a much more level playing field."
Court documents say Allen and Rick Smith, former company vice president, met politicians in Juneau's Baranof Hotel to discuss the exchange of bribes for votes on key oil and gas legislation. Smith has also pleaded guilty to bribery charges.
Company executives, led by Allen, also lobbied on behalf of oil producers on the North Slope, the largest of which are BP PLC, Exxon Mobil Corp. and ConocoPhillips.
for full story:
http://hosted.ap.org/dynamic/stories/O/OIL_AND_POLITICS?SITE=FLTAM&SECTION=US
By JEANNETTE J. LEE
Associated Press Writer
ANCHORAGE, Alaska (AP) -- The former head of the oil field services company VECO Corp. was once a model of political clout.
From the halls of Congress to the Alaska capital city of Juneau, Bill Allen spent more than two decades throwing lavish fundraisers for favored candidates, sending them generous campaign contributions and lobbying hard for the oil and gas industry.
But Allen's seemingly unshakable influence ended abruptly this year when the founder and then-chairman of VECO pleaded guilty to bribing state legislators.
Now, he appears to be the link between at least three investigations of Alaska politicians by the Department of Justice, the FBI and the Internal Revenue Service.
Two influential members of Alaska's congressional delegation, Sen. Ted Stevens and Rep. Don Young, both Republicans, are under investigation for their relationships with VECO. And three former Republican state legislators have been indicted since December for accepting bribes from Allen and other high-ranking VECO officers. Stevens' son, Ben, former president of the state senate, also is under investigation for ties to VECO but has not been charged.
The multimillion-dollar company is the largest oil field services firm on Alaska's lucrative North Slope, the nation's most productive oil field, and until the federal probes surfaced last year it was one of the state's biggest campaign donors. Oil is the cornerstone of Alaska's economy and funds about 80 percent of the state's annual budget.
Allen and other VECO officials were known for their campaign fundraisers at the swank Petroleum Club in Anchorage. And they have given hundreds of thousands of dollars in campaign donations to Stevens, Young and a host of state lawmakers.
"They were a very important source of money to some of the more pro-oil company candidates," said state Rep. Les Gara, an Anchorage Democrat. "Without VECO's involvement in state politics, we'll have a much more level playing field."
Court documents say Allen and Rick Smith, former company vice president, met politicians in Juneau's Baranof Hotel to discuss the exchange of bribes for votes on key oil and gas legislation. Smith has also pleaded guilty to bribery charges.
Company executives, led by Allen, also lobbied on behalf of oil producers on the North Slope, the largest of which are BP PLC, Exxon Mobil Corp. and ConocoPhillips.
for full story:
http://hosted.ap.org/dynamic/stories/O/OIL_AND_POLITICS?SITE=FLTAM&SECTION=US