FBI looks for 'Corrupt Bastards Club' hats in probe _______________
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By MATT VOLZ
The Associated Press
Published: September 1, 2006
Last Modified: September 1, 2006 at 11:09 AM
Among the items federal agents were searching for in Alaska legislative offices this week are hats or garments labeled “Corrupt Bastards Club” or “Corrupt Bastards Caucus,” according to the search warrant.
FBI and Internal Revenue Service agents raided a half-dozen state lawmakers’ offices across Alaska Thursday and continuing Friday, looking for ties between them and oil field services giant VECO Corp.
A copy of one of the search warrants, obtained by The Associated Press, links the investigation to the new production tax law signed last month by Gov. Frank Murkowski and the natural gas pipeline draft contract Murkowski and the state’s three largest oil companies negotiated.
Among the items to be seized, according to the warrant, “from the period of October 2005 to the present, any and all documents concerning, reflecting or relating to proposed legislation in the state of Alaska involving either the creation of a natural gas pipeline or the petroleum production tax.”
VECO and its chairman, Bill Allen, were staunch supporters of the governor’s production tax plan, a version of which the Legislature passed in August after twice rejecting it earlier this year. Lawmakers have also twice failed to pass legislation related to the governor’s pipeline fiscal contract with BP PLC, ConocoPhillips and Exxon Mobil Corp.
VECO’s executives are top contributors to Alaska politicians, mostly Republican. Allen flew to Juneau at the end of the regular session to lobby lawmakers and watch the vote on the new production tax.
The warrant calls for seizure of documents “concerning, reflecting or relating to any payment” to lawmakers by VECO executives Allen and Richard Smith. Agents also looked for documents about contracts, agreements or employment of legislators provided by VECO, Allen, Smith and company president Peter Leathard.
In the warrant served on state Sen. Donald Olson, D-Nome, agents were also authorized to seize any documents related to fuel payments, landing strip fees, storage fees and similar aircraft costs. Olson owns a flying service.
Olson was in Nome Friday, but his office line was engaged and he could not be reached for comment.
A specific item named in the search for seizure: “Any physical garments (including hats) bearing any of the following logos or phrases: ‘CBC,’ ‘Corrupt Bastards Club,’ ‘Corrupt Bastards Caucus,’ ‘VECO.’”
Besides VECO and its executives, agents were authorized to seize any documents related to The Petroleum Club, Republican pollster David Dittman or his company, Dittman Research and Communication Corp., pollster Marc Hellenthal or his company, Hellenthal and Associates, Roger Chan, VECO’s chief financial officer, and Olson Air Service, according to the warrant.
A receipt of items seized from Olson’s office by the FBI and obtained by The Associated Press lists five things: Olson’s 2006 year planner, Murkowski’s gas pipeline proposal released in May, a manila folder labeled “APOC,” the Alaska Public Offices Commission, Olson’s interim travel file and a binder related to the Alaska Stranded Gas Fiscal contract.
Department of Justice spokeswoman Jaclyn Lesch said Friday the searches began Thursday and are continuing Friday. FBI spokesman Eric Gonzalez said a total of 20 search warrants were being executed across Alaska, but would not say where.
“Those actions took place yesterday in cities in Alaska as part of an ongoing law enforcement matter. The (Justice Department) and FBI won’t be able to comment any further,” Lesch said.
No further comment is likely to come from the Justice Department unless charges are filed, she said.
Among the offices searched was that of Republican Senate President Ben Stevens, the son of the senior senator from Alaska. Ted Stevens’ spokesman Aaron Saunders on Friday said they had no comment on the search.
Ben Stevens could not be reached at his Anchorage home on Friday.
Also searched were offices in both Juneau and Anchorage belonging to state Sen. John Cowdery, the Senate Rules chairman; Republican state Rep. Vic Kohring; Republican state Rep. Bruce Weyhrauch; and Republican state Rep. Pete Kott.
Olson is the only Democrat of the six; the rest are Republicans.
Calls to Weyhrauch and Kott were not immediately returned Friday.
Kohring said he cooperated and was told he was not a target of the investigation.
Cowdery, a Republican from Anchorage, said Friday he didn’t know why he was included in the raid or why agents seized items “unrelated to anything,” including the stubs of his legislative salary checks. Cowdery said he has not retained an attorney to deal with the matter, but probably will.
It’s pretty bizarre,” he said. “That’s all I know, it’s pretty bizarre. I certainly haven’t done anything wrong.”
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