Stevens failed to report gifts, indictment alleges

A federal grand jury has indicted Sen. Ted Stevens (R-Alaska) for failing to report more than $250,000 in gifts from a private company, the Department of Justice said Tuesday.

{mosads}Stevens, the longest-serving Republican in Senate history, faces seven felony counts for making false statements on financial disclosure forms between 1999 and 2006, according to the indictment.

Stevens released a statement saying, "I am innocent of these charges and intend to prove that." In accordance with Senate Republican Conference rules, he stepped down from his ranking positions on the Commerce, Science and Transportation Committee and the Appropriations Defense subcommittee "until I am absolved of these charges."  

Stevens, 84, has been linked to an investigation of an oil services company, VECO Corp., that has already produced convictions of Alaska lawmakers, oil executives and a lobbyist. The FBI and IRS raided Stevens's home in 2007.

Stevens is alleged to have received from the company renovations to his Girdwood, Alaska home and other gifts that he failed to report, according to the indictment.

Among the renovations listed in the indictment are: a new first floor; a new garage; a new two-story wraparound deck; and new plumbing and electrical wiring. Stevens also received a Viking gas grill, furniture and other home goods, the indictment alleges. He received a 1999 Land Rover Discovery, valued at roughly $44,000, that same year in exchange for $5,000 and his 1964 Ford Mustang, valued at less than $20,000.

"Stevens, while a sitting United States Senator, knowingly and willfully engaged in a scheme to conceal a material fact, that is, his continuing receipt of hundreds of thousands of dollars' worth of things of value from a private corporation and its chief executive officer by, among other things, failing to report them, as required, on Stevens' required yearly Financial Disclosure Forms," the indictment alleges.

The indictment also alleges that Stevens "received and accepted solicitations for multiple actions" from VECO CEO Bill Allen and other company employees, "knowing that Stevens could and did use his official position and office on behalf of VECO" during those same years from 1996 until 2006.

Stevens chaired the Senate Appropriations Committee from 1997 until 2005, except for an 18-month period when Democrats controlled the chamber. He has served in the Senate since 1968 and is currently seeking a seventh term.

Senate Majority Leader Harry Reid (D-Nev.), who received the news of Stevens's indictment on his BlackBerry just before the Democratic policy lunch, said it was a "very sad" day in the Senate. 

Sen. Daniel Inouye (D-Hawaii), one of Stevens's closest friends in the Senate, said he was not surprised by the indictment of the Alaska Republican.

"I wouldn't say I'm surprised; he's been under questioning for some time," Inouye said.

Republicans senators on Tuesday were quick to reserve judgment.

"I've known Ted Stevens for 28 years and I've always found him to be impeccably honest," said Sen. Arlen Specter (R-Pa.), who sits on the Appropriations Committee with Stevens.

"Just let the legal system do its thing, and I trust the legal system in Alaska to be fair to everybody involved," said Sen. Lindsey Graham (R-S.C.).

White House spokesman Tony Fratto said in an e-mail to The Hill: "Sen. Stevens has a long and distinguished career representing the State of Alaska.  The President has been working with Sen. Stevens for many years and he appreciates his strong leadership on key issues.  This is a legal matter that the Department of Justice is handling and so we’ll have to decline to comment."

If Stevens were to resign, Republican Gov. Sarah Palin can replace him with another Republican within 30 days to finish his term, but that is optional.

Palin, however, can't call a special election because the Aug. 26 primary is less than 60 days away.
 
Because the filing deadline has passed, Republicans can replace him on the ballot only if he wins the primary; otherwise they would be stuck with one of his primary challengers.

Stevens’s name wouldn’t come off the ballot even if he decided not to run, said state elections director Gail Fenumiai.
 
Former state Rep. David Cuddy and attorney Vic Vickers have raised the most money in the GOP primary, with both self-funding just shy of $200,000 through the end of June.
 
Vickers recently announced he was spending several hundred thousand dollars on a statewide ad buy. Cuddy spent around $1 million against Stevens in a 1996 primary, losing 59-27.
 
Neither appears to have the financial means of Anchorage Mayor Mark Begich, the heavy Democratic favorite who has raised $1.3 million for his campaign against Stevens.

J. Taylor Rushing, Aaron Blake and Sam Youngman contributed to this story.