Grand jury probes Alaska senator's ties to oil-field contractor

ANCHORAGE — A federal grand jury in Washington, D.C., has heard evidence about a remodeling project at U.S. Sen. Ted Stevens' home as part of a burgeoning investigation into corruption in Alaska, the Anchorage Daily News reported Sunday.

The investigation is linked to the VECO bribery case that produced guilty pleas last month from two of the oil-field service company's top executives, according to law-enforcement officials.

The investigation also led to federal indictments against one current and two former Republican members of the Alaska House of Representatives on bribery and extortion charges.

Bob Persons, a friend and neighbor of Stevens, was ordered to appear before the grand jury May 25, according to the Daily News.

The government directed Persons to submit documents related to the work on Stevens' home in Girdwood, a resort town about 40 miles south of Anchorage, including work tied to VECO and contractors hired or supervised by VECO, the newspaper said.

Persons was overseeing the project while the Republican senator and his wife were in Washington. Persons could not be reached for comment Sunday.

Bob Penney, an Alaska businessman and associate of Stevens, testified two weeks ago before a federal grand jury in Anchorage. Penney said Sunday he was "required not to discuss the issue."

The 83-year-old senator is under close public scrutiny because the FBI last year raided the offices of several Alaska lawmakers including his son, former Alaska Senate President Ben Stevens, as part of an ongoing corruption probe.

The younger Stevens has not been charged and denies any wrongdoing.

The federal investigation led to VECO founder and former Chief Executive Bill Allen pleading guilty last month to bribing state lawmakers in exchange for votes favoring industry on oil legislation.

Rick Smith, VECO's former vice president of community and government affairs, also pleaded guilty. Both resigned. No sentencing date has been set.

The Washington grand jury ordered Persons to produce documents going back more than eight years, including letters and e-mails involving Stevens, his wife, Catherine, or Ben Stevens, as well as documents for all phases of the remodeling project, the Daily News said.

Stevens' spokesman Aaron Saunders said the senator was in France as President Bush's official representative to the Paris Air Show.

Augie Paone of Christensen Builders in Anchorage could not be reached Sunday, but has previously said VECO executives — including Allen — helped oversee the home-remodeling project.