Ex-Oil Exec Says He Paid Alaska Lawmaker

ANCHORAGE, Alaska - The former head of an oil field services company testified Wednesday that he paid a lawmaker nearly $8,000 to help keep him in office and advocate for the construction of a natural gas pipeline tapping the state's vast North Slope Reserves.

Bill Allen, former chairman of VECO Corp., testified that he paid $7,993 to former House Speaker Pete Kott in an inflated invoice for a flooring job to Kott's business. Kott wanted the extra money so he could hire his son to run his re-election campaign, Allen said.

"He was going to run again and he needed his son to help him," Allen said.

Kott is charged with conspiracy to solicit financial benefits for his service as a legislator, extortion "under color of official right," bribery and wire fraud, which involved improperly discussing legislative business by phone. If convicted of all charges, Kott could face up to 55 years in prison and a $1 million fine.

Kott is accused of accepting the inflated invoice, a $1,000 reimbursement for a check Kott gave to the re-election campaign of former Gov. Frank Murkowski and a $2,750 political poll paid for by VECO. Prosecutors say he was also promised a job as a lobbyist for VECO.

Kott's attorney denies the charges, saying the $7,993 was an advance for a flooring job Kott's business could not carry out in 2006 because of the disruption caused by the federal corruption investigation.

Defense attorney James Wendt also said Kott was not aware of the poll VECO performed on Kott's House race, which he lost in 2006, and that he was not promised a job.

Allen and former VECO vice president Rick Smith pleaded guilty in May to extortion, conspiracy and bribery of legislators. Allen has not been scheduled for sentencing.

Wiretapped phone conversations and surveillance tapes played at trial showed Kott plotting strategy, reporting legislative developments and taking direction from the company officials.

Former Republican Reps. Bruce Weyhrauch and Vic Kohring are also charged with bribery. Weyhrauch's trial has been delayed, while Kohring's is scheduled for next month.

Allen testified Wednesday that in March 2006, he handed Kohring $1,000, in part because he was a friend who could not afford food or lodging, and in part because of his loyalty to Allen's cause.

"He slept in his office because he didn't have money to get a room," Allen testified. "Sometimes he didn't have enough money to eat ... I would say 50 percent because he was a friend and 50 percent that he was right on and would produce" on the proposed petroleum profits tax.