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9/29/2008 18:51

Judge in Stevens Trial Says He's Concerned About Witness Move

By Cary O'Reilly and Nadine Elsibai

Sept. 29 (Bloomberg) -- The judge in U.S. Senator Ted Stevens's criminal trial said he found it ``very, very disturbing'' that prosecutors may
have improperly advised a witness subpoenaed by government and defense lawyers to leave Washington.

``There may be an inference'' that ``the government chose not to call him to testify because the government finally realized that his
testimony would not be helpful'' to prosecutors, U.S. Judge Emmet Sullivan said at the trial today.

The judge said he was ``concerned'' about possible impropriety by the government. He told prosecutors to submit court papers by tonight
explaining their actions.

Lawyers for Stevens, on trial in Washington for allegedly failing to report more than $250,000 in gifts from Alaska oil- services company Veco
Corp., accused prosecutors of withholding evidence and demanded that Sullivan dismiss the charges or declare a mistrial.

In court papers filed late yesterday, lawyers for Stevens told Sullivan that prosecutors withheld evidence on the amount of work performed by
Robert ``Rocky'' Williams, a Veco employee who oversaw renovation of the senator's home in Girdwood, Alaska. The judge didn't immediately
rule on Stevens's request for a mistrial, though he said he was ``not inclined'' to grant it.

Brendan Sullivan, the lead lawyer for Stevens, told the judge he interviewed Williams for the first time yesterday and that he has evidence that undermines the government's case.
The lawyer said prosecutors sent Williams back to Alaska on Sept. 25, the day the trial began, after spending two weeks preparing him to testify.

Time Sheets

``Williams informed defense counsel that he spent nowhere near 8 hours per day, 6-7 days per week, on the Girdwood home renovation project -- in direct contrast to the time
sheets that the government has placed in evidence'' to support its theory that Stevens didn't pay for $188,000 in renovations, Stevens's lawyer said in the filing.

``This new information gravely undercuts the government's case as described in its opening statement and as presented by government witnesses to date,'' the senator's lawyer
said.

Stevens, 84, is charged with failing to report more than $250,000 in home improvements and gifts from Veco on his Senate financial disclosure forms. Lawyers for Stevens deny
wrongdoing and say the senator paid every bill he was presented with.

Judge Sullivan said the government should explain ``under penalty of perjury'' why Williams, who was in Washington, ``was allowed to return to Alaska without this court being
told.''

If sanctions are necessary, ``I'm going to impose sanctions as appropriate,'' the judge said.

`We're Distressed'

Prosecutor Nicholas Marsh told the judge, ``We're distressed that we're being accused of this,'' adding that the government believes it disclosed all that was needed.

``To some degree, what's relevant is a general ballpark number, not the specifics,'' Marsh said.

Four Veco employees testified Sept. 26 they provided thousands of dollars worth of construction, wiring, roofing and other work on Stevens's home near Anchorage, under the
supervision of Williams.

Testimony resumed today with Cheryl Boomershine, an employee in Veco's accounting office, returning to the witness stand after the judge decided to allow the defense a second
chance to cross- examine her. She began testifying on Sept. 26.

Today, Boomershine said that it wasn't her job to verify the number of hours Williams worked or whether he was performing other jobs for VECO during the same time period.

``I have no personal knowledge'' of the work that Williams was performing, Boomershine said.

The indictment against Stevens said that over six years Veco and the company's former chief executive officer, Bill Allen, provided unreported free labor and materials to install a
new first floor, garage and other improvements for the senator's house.

Allen is scheduled to take the stand tomorrow.

The case is U.S. v. Stevens, 08cr231, U.S. District Court for the District of Columbia.

To contact the reporters on this story: Cary O'Reilly in Washington at caryoreilly@bloomberg.net; Nadine Elsibai in Washington at nelsibai@bloomberg.net

Last Updated: September 29, 2008 15:31 EDT

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