Anchorage Daily News

WASHINGTON -- Attorneys for Sen. Ted Stevens on Sunday renewed their effort to get a federal corruption case against the veteran Alaska lawmaker thrown out, saying prosecutors manipulated the story of their star witness to undermine the defense.

"Until today, defense counsel have refrained from alleging intentional misconduct by the government," the lawyers wrote in court papers. "We can no longer do so in good conscience."

U.S. District Judge Emmet G. Sullivan rejected a similar bid for a mistrial or dismissal on Friday after prosecutors said they would share with the defense documents they claimed were mistakenly withheld.

Stevens, 84, is charged with lying on senate financial disclosure forms about more than $250,000 in home renovations and other gifts from oil pipeline magnate Bill Allen. The senator's trial is expected to continue today with Allen returning to the witness stand.

The latest motion to end the trial says the newly disclosed documents show Allen originally told investigators he believed Stevens would have paid for work on a mountain cabin if billed -- proof, the defense says, that the senator never intended to hide anything.

Rather than turn over the first statement to the defense as required by rules of evidence, the government "intentionally procured from Allen a contradictory statement" and then "concealed its actions" from the court, the defense papers say.

There was no immediate response to messages left with the Justice Department, which is prosecuting the case.

Judge Sullivan late Sunday ordered the government to file its response by 8 a.m. today. He scheduled a hearing on the defense motion for 9 a.m.

Testifying as part of a deal in which he pleaded guilty to bribing state legislators, Allen has told jurors he did not have the heart to bill his buddy for the work done by his company, Veco Corp. Stevens sometimes asked for bills, Allen said. But Allen said he was informed by a mutual friend that the senator made the requests simply to cover his tracks.

Lawyers for Stevens say the lawmaker relied on his wife to pay tens of thousands of dollars in bills on the remodeling project, and believed the job was above board. They claim Allen, who was overseeing the work while the senator was away, kept Stevens in the dark about the cost of extras such as wraparound decks, a Viking gas grill and fancy outdoor lighting.

Much of Allen's testimony focused on construction at the ski chalet and what Stevens knew about it. But the self-made multimillionaire also spun a folksy back story of a deep kinship ultimately destroyed by a sudden betrayal.

Allen, 71, spoke in a halting drawl that, he told jurors, was caused by lingering brain damage from a motorcycle accident. He described his steady rise from an apprentice welder in New Mexico to owner of an Alaska-based company with 5,000 employees. He said he first met the patriarch of Alaska politics in the early 1980s while attending political fundraisers.

As the years went by, the pair grew close. They smoked cigars together at Stevens' cabin. They fished for salmon. They flew to the Lower 48 for "boot camp" outings where they gave up hard liquor and heavy food for wine and light meals, and did lots of walking to get in shape.

"We kind of really liked each other," Allen testified as Stevens sat at the defense table with a frown etched on his face. "Had the same thoughts. ... Ted loved Alaska and I loved Alaska."

Handwritten notes from Stevens entered as evidence suggest the admiration was mutual. One note thanked Allen for the "many ways you make my life easier and more enjoyable."

Allen testified Stevens used his Senate seat to help VECO try to win lucrative government contracts and oil deals in the late 1990s. Defense lawyers insist their client merely was doing his duty to assist a constituent.

By 2006, the FBI had Allen under investigation for lining the pockets of state legislators voting on a pipeline project. After agents arrived unannounced at his doorstep that year, Allen agreed to cooperate -- even letting them record phone calls with Stevens -- so long as they did not pursue any charges against his family.

The investigators asked him "to help them to try to get the guys I bribed, and they told me if I did that they wouldn't mess with my kids," he said. "That was it, I guess."

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