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Former Veco chief executive Bill Allen is asking that his Oct. 28 sentencing on corruption charges be postponed four months because his cooperation in ongoing criminal cases is "incomplete," as is a contempt investigation of federal prosecutors in which he is also assisting.
Though prosecutors have previously initiated postponements seven times to encourage his cooperation, this time Allen is on his own. According to Allen's motion, filed Tuesday afternoon, prosecutors believe Allen's request for a delay is not "meritorious" and were prepared to go ahead with his sentencing as scheduled. Rick Smith, a former Veco vice president, is also scheduled to be sentenced on Oct. 28. He has not filed for a continuance and his attorney didn't return a call asking if one would still be sought. U.S. District Judge John Sedwick told prosecutors to file a formal response to Allen's request by Thursday. Without saying how he would rule, he told both sides to be prepared for sentencing to go ahead Oct. 28. Both Allen and Smith pleaded guilty in May 2007 to charges of corrupting public officials in Alaska to hold down oil production taxes. Veco was a construction and maintenance company that mainly operated in oil fields in Alaska and around the world. Allen used his political operation, fueled with a mix of legal and illegal campaign money, undisclosed gifts and outright bribes, to improve the business climate for himself and his clients. Allen's motion for a stay and an additional motion for an unusually quick resolution were initially filed under seal Tuesday. But Sedwick, who has grown increasingly wary of secret filings in the Alaska corruption cases, ordered Allen's attorneys to "immediately refile the motions on the public record." Under federal sentencing guidelines, Allen and Smith can get time off an eventual prison sentence for cooperating with investigators and testifying truthfully. Both men have been working with the FBI since August 2006 and have testified in the trials of two former legislators, Pete Kott and Vic Kohring, who were both convicted. Allen was also the key witness against U.S. Sen. Ted Stevens, who was found guilty of failing to disclose tens of thousands of dollars of gifts, mainly from Allen and Veco. But Stevens' case fell apart when the Justice Department admitted it didn't turn over favorable evidence to Stevens, and charges were dismissed. Among the unprovided evidence were Allen's statements to FBI agents and prosecutors that contradicted his later testimony at trial. One of the most serious was whether Stevens was honest when he sent a note to Allen asking him to send invoices for Veco renovations at the Stevens home in Girdwood. During the trial, Allen said Stevens didn't really mean it when he asked for the bills. Stevens' attorneys asserted Allen was coached to lie on that point by prosecutors, an allegation the prosecutors denied. In his motion to delay sentencing, Allen said he is now cooperating in the criminal contempt investigation of Stevens' prosecutors ordered by the Washington, D.C., judge who presided over Stevens' trial. In the last two days, there's been a flurry of activity in the docket of that investigation, though all six new filings have been under seal. In July, Sedwick said he had seen enough delays and ordered Allen and Smith to appear for sentencing Oct. 28. He told prosecutors they could make one last appeal for delay if they acted by Oct. 12, but that date came and went. Pre-sentence reports were prepared for both men. Those reports are normally under seal because of the private information they contain, but the fact they were prepared showed up on the dockets last week. Sedwick said in his July order that Allen and Smith could still get credit for additional work with prosecutors under a federal rule that allows him to review sentences for up to a year after they are issued. But in his motion for delay, Allen said he may be involved in investigations and prosecutions for more than one additional year. In addition, there is no procedural way for the special prosecutor in the contempt case -- a private attorney appointed by the judge -- to provide a complete evaluation of Allen's cooperation to Sedwick while that investigation is still ongoing, Allen's attorney said. Allen proposed that his sentencing be delayed until Feb. 28, 2010, and said that even that date could be moved back by "new relevant developments." "The degree of credit to which Defendant is entitled can only be properly evaluated when his cooperation is complete," the motion said. Allen said it would also be improper for him to be sentenced while questions about his credibility remain unanswered. In addition, a noted Washington neurologist who has examined Allen, Richard Restak, would be unavailable to testify on Oct. 28 about Allen's "cognitive and communicative functions." Allen suffered some brain damage in a motorcycle accident in 2001 and has difficulty with speech, though he has testified his recall of events is good. "Dr. Restak can describe aspects of Defendant's mental and physical condition and functioning that bear directly on material aspect of Defendant's cooperation, including his statements to investigators and subsequent testimony," Allen's motion said, an apparent reference to the issue about bills that arose in the Stevens trial. Allen's motion also describes additional cases he might be called to testify in. It's likely, he said, that those trials wouldn't be completed in the one-year time frame. One is the bribery and conspiracy case of former Rep. Bruce Weyhrauch, who is currently appealing the basis for one of his charges to the U.S. Supreme Court. Like Stevens, Kott and Kohring didn't get favorable evidence they were entitled to and they may get new trials, which may require Allen's testimony again. And there are uncharged cases still under investigation, the motion noted. "The government has not yet advised Defendant (Allen) of other investigations or prosecutions regarding which Defendant could provide further cooperation, but it is clear that there are other individuals who fall within the scope of the ongoing investigation and against whom Defendant might still be called to testify," Allen's motions said. "For example, the public official identified as State Senator B in Defendant's (charges) has not yet been charged with any criminal offenses, nor has Veco Executive A or Veco Executive B." State Sen. "B" matched the description of former Alaska Senate President Ben Stevens, Ted Stevens' son. The Veco executives match the descriptions of Veco Corp. President Pete Leathard and Chief Financial Officer Roger Chan. Attorneys for all three have denied their clients engaged in criminal conduct.