Les Gara on Cheatin’ Politicians and Cheatin’ Prosecutors
5 06 2009
Kohring and Kott: When Prosecutors Cheat On Politicians Who Cheat, Who Can We Trust?
By Rep. Les Gara
Yesterday’s news that the Department of Justice is seeking the release of former GOP legislators Vic Kohring and Pete Kott from jail sent shock waves across the community. Alaskans are left shaking their heads because, well, we’re left in the middle. We now face the prospect that politicians who still very likely broke the law will be “vindicated” because those who we trust to enforce the law also broke it. In that case, the only victims will be the public.
The defense in these cases will undoubtedly ask for their cases to be dismissed. That’s the remedy proposed by prosecutors in the Ted Stevens case, but notably, not yet proposed here. I’ll walk you through some of the legal standards, possible outcomes, and my concerns that a dismissal of these cases would undermine both the public interest, and our right to integrity from our lawmakers. Dismissal would tolerate the greatest corruption scandal in state history, and the conduct of those who, it still appears, joined the scandal.
Fair Play By Prosecutors Is A Lynchpin of a Fair Justice System.
The difficulty in this case is that there’s more than one important interest at stake.
The public has a right to prosecutors who play by the rules. It is a danger to a free society to allow prosecutors to hide evidence. That kind of conduct jeopardizes the rights of innocent people. Convicting an innocent person is one of the greatest injustices a government can commit. President Obama and Attorney General Eric Holder have done the right thing in recasting a Department of Justice that the former Presidential Administration ran poorly. To the extent the former Administration tolerated misconduct by those hired to enforce the law, the new one says it won’t, and that’s good for us all.
But that doesn’t mean the remedy is to sweep the greatest corruption scandal in state history under the carpet. Certainly, stern punishment of those who cheated is justified. That rule applies to prosecutors as much as it applies to citizens who break the law. I’ll talk about the legal standard the court will apply, and that may justify new trials to make sure those who have been convicted were given a fair shot.
People have a right to a fair trial, guilty or innocent. But – at least based on what we know so far – we’ll all be harmed if the Department of Justice simply throws up its hands, and dismisses these cases. That would disregard that Alaskans have been victimized by the greatest corruption scandal in Alaska history.
New Evidence Doesn’t Alter the Worst Political Scandal in Alaska History
If the evidence we heard is correct, the legislators who were convicted worked with VECO officials Bill Allen and Rick Smith to stop Alaskans from receiving our fair share for our oil. Under our Constitution, that oil belongs to all of us, and the wealth from that oil is meant to help us run this state for the public’s “maximum benefit.”
We would do well to remember a few things as this story unfolds. Here are a few indisputable facts that aren’t altered by the fact that prosecutors broke the law by withholding evidence. The latter is important, but it doesn’t do a lot to alter the history of this corruption scandal.
Over the past 25 years, VECO did more to influence this state’s politics, out of pure greed and self interest, than any group of people ever.
They put more than $1 million into state political campaigns, were by far Alaska ’s biggest campaign donor, ran a slanted newspaper, and then ran a full page of misinformation and pro-oil company propaganda in the state’s largest newspaper. They did the latter, in their so-called “Voice of the Times”, to regularly launch biased, fact twisting attacks against democrats, those who didn’t toe the oil industry line, and less frequently to attack republicans they didn’t like.
They didn’t do this to make our schools better, to help our seniors, or to clean up our politics. They used their money to try to elect public officials they thought would make heaps of money for their company, and the oil companies they served on the North Slope .
I want to be clear here. Many innocent politicians accepted their campaign donations. They didn’t know these VECO officials were bribing other political leaders. They didn’t know the litmus test VECO was using in choosing them over their opponents. But we now know, from Bill Allen and Rick Smith’s sworn admissions, that VECO also used its money to bribe people; to undermine the public interest; to cheat Alaskans of oil revenue that was rightly ours, and that could fund our roads, schools, children’s services and savings accounts. VECO’s officials admit they worked to cheat us all for their own personal benefit, and for the benefit of the oil companies they sought oilfield service contracts from.
This scandal unfolded in 2005 and 2006, at a time oil companies were raking in record profits, only to be exceeded by the record profits they gathered in the next year. It was then that VECO went on a mission to try to corrupt the oil tax law the Alaska legislature was considering. We need to remember why we were considering oil tax reform at that time.
I wish I could exaggerate this one, but I can’t. In 2006 Exxon earned more profit than any other corporation in the history of the world. In 2007, a year when they took in more than $40 billion in clear profit, Exxon broke that record. New York Times article, http://www.nytimes.com/2008/02/01/business/01cnd-exxon.html?_r=2. They, Conoco and BP were earning these record profits, in part because the price of oil was soaring, and in part because when the price of oil soared, Alaska ’s flawed oil tax system – one jealously defended by VECO, Exxon, Conoco and BP – badly shortchanged the people of this state.
That’s why I, former Governor Jay Hammond and many others had long called for oil tax reform. For many years the state of Alaska taxed the nation’s most productive oil fields at an artificially low rate. The state’s production tax rate – which was between 0% (for most fields on the North Slope) and 13% – didn’t go up when oil rose from $20/barrel, to $30, to $40, to $60, or even to $120/barrel. High oil prices were producing staggering, windfall profits for Exxon, Conoco and BP. Alaskans – who former Governor Jay Hammond reminded me own the oil on the North Slope – were being badly shortchanged – to the tune of over a billion dollars a year.
As we debated an oil tax fix in 2006, Bill Allen was handing notes to legislators telling them how he wanted them to vote. As those of us who believed in reform were trying to build coalitions to fix the tax in a fair manner, he was organizing strategy to cheat Alaskans out of our fair share. As part of that effort, we watched him hand a wad of cash to Rep. Vic Kohring. According to indictments, he orchestrated strategy with a number of legislators – Pete Kott, Ben Stevens, and others – to find a way to keep Alaska ’s oil tax rate artificially low. The evidence we heard at trial makes it at least likely that this is exactly what happened.
So – how well did they succeed? At every turn in 2006, as many legislators were working for a fair oil tax law, VECO and its allies in the legislature were pulling the other way. As a result, we ended up with a compromise oil tax law that vastly shortchanged Alaskans. By how much? Well, here’s one measure. In 2007 we fixed this loophole-ridden law with real oil tax reform. Had the 2006 law still been in effect, by now it would have cost Alaskans over $5 billion in lost revenue – money we have available to bolster Alaska’s savings, and fund this state’s services.
What’s Next?
Yesterday the Department of Justice did the appropriate thing. They admitted their investigation shows prosecutors withheld evidence, and that their internal investigation is continuing. It may be that with this evidence revealed, the convicted defendants would have received shorter sentences. It may be that a new trial is justified. So the Department of Justice said that until this is all sorted out, former Reps. Kott and Kohring shouldn’t serve any more jail time.
It’s the next step that gets dicey. Under federal law a new trial, and possibly dismissal, may be justified IF the withheld evidence would have “likely” altered the jury’s verdict. That’s a high hurdle, and frankly seems hard to fathom at this point. But the Trial Court will be asked to make that determination when all the evidence comes to light.
It is also within the Department of Justice’s purview to request dismissal of these cases, like they did with Senator Stevens’ case. If they did that, there would be no practical way for the court to require a new trial. The cases would likely be dismissed.
Based on what we know so far, that option, I think, would undermine the public’s right to know, right to fair prosecution when there is substantial evidence of guilt, and our right to a political system where corruption isn’t tolerated.
In the end the Court will need to examine the fairness for all the defendants. The Department of Justice should do that too. But the hope is that if evidence of likely criminal behavior remains, neither the Department of Justice nor the Court will punish the prosecutors in this case by punishing the public.
It is proper for the public to voice its opinions. The new Attorney General may not know the facts of this corruption scandal, and the impact it has had on Alaskans, from where he sits in Washington , D.C. It would be fair if he heard them as his office makes its decision about what the most just outcome in this case will be.
Surely, there is no greater victim than an innocent person who’s been done harm. And we should never tolerate the conviction of the innocent.
But if the evidence remains of the defendants’ guilt, dismissal just doesn’t fit the misdeeds of the prosecutors in this case. I’m willing to change my mind as I hear what evidence was withheld. But the evidence of wrongdoing by politicians and VECO’s executives isn’t likely to change.
Stay tuned, and as always, stay informed. This is an issue that’s going to require a vibrant public discussion – one that our new Attorney General should probably listen to as he’s weighing the various interests – including the public’s interest in integrity from our officials – that will be affected by the decision he’ll have to make.
June 5th, 2009 at 12:37 PM
Has there been new appointee’s to the U.S. Atty’s office yet, by the DOJ?
June 5th, 2009 at 12:41 PM
It wasn’t just a matter of GW’s peeps running the DOJ poorly… it was the gross incompetence of Alberto Gonzales coupled with the political interference of Monica Goodling (Regent Law School of Liberty University).
When politics take precedence over law, corruption and incompetence are often the results. Kohring and Kott may well get new trials. But let’s give them a fair trial before we stick their sorry behineys back in jail.
June 5th, 2009 at 1:00 PM
Under our Constitution, that oil belongs to all of us, and the wealth from that oil is meant to help us run this state for the public’s “maximum benefit.”
I’m sorry, I got as far as that sentence and had to stop reading. I didn’t know you guys were Commie up there in Alaska til I read that. But I do know that Commies don’t got nothing to tell us freedom-loving Americans in the lower 48.
June 5th, 2009 at 1:02 PM
I’m sure that if you put your oild where it belonged, into the hands of private ownership, you wouldn’t need all that welfare and maximum benefit! You are stealing that oil from America!
June 5th, 2009 at 1:41 PM
The more I hear from Les Gara, the more I like him. I hope he can put his Harvard Law Degree to good use in this situation !! Alaska needs more Les Gara’s to move us forward out of our shameful past.
If Veco’s executives get let out of prison, there is no hope for Alaska.
June 5th, 2009 at 1:49 PM
I agree Les Gara seems to get it and he seems to see both sides of a situation.I think Stevens was guilty as hell but he was 85 and would not have lasted in prison,The rest need new trials with everything out in the open
June 5th, 2009 at 2:39 PM
I’m not that familiar with Kotring and Kott’s misdeeds, but justice should be done. I must admit that I am amazed at the level of corruption in Alaska. We do have it here in Ireland…I’m not sure if it is at the same level as regards billions of dollars.
I will be following this with interest. Great post by the way and I can fully understand your anger.
June 5th, 2009 at 2:54 PM
I do hope that the information as you have laid it out in this post gets into Huffington so that more national awareness comes about of the circumstances and consequences as they currently stand. Agreed, an equal injustice occurs if the matters are not carried through to a complete and thorough resolution.
As far as Mooser’s comments are concerned, allowing things to be so completely in the hands of private corporations is a major cause of the countries current economic woes. :”Trickle down” economics is a myth.
June 5th, 2009 at 3:06 PM
@Carol,
You only have to read the grammar and the spelling in that post to wonder where their sympathies lie.
June 5th, 2009 at 3:10 PM
Excellent and informative post, Rep. Gara.
As you say, the public is in the middle between “cheatin’ politicians and cheatin’ prosecutors.”
I was dismayed when the case against Ted Stevens was thrown completely out….instead of requiring a new trial. The expense of retrial would be considerable but justice should be considered priceless. Why spend billions to fight foreign wars to “protect” our country but not fight the criminal enemies of our country at home. Both enemies threaten the public welfare.
A justice system without justice is the most expensive of all…..in ways that extend beyond any individual case.
June 5th, 2009 at 3:17 PM
Irishgirl,
You’re right. I realized that, but simply did not want to go to that level of discourse. It seems like all that they have left now days is slander and name calling along with a fake, macho patriotism. Reason and logic are foreign concepts to some.
June 5th, 2009 at 3:24 PM
I keep coming back to the conclusion that the withholding of evidence was on purpose to give the defendants a way out if convicted. I firmly believe that’s what happened in the case of Stevens.
This will continue to happen until such time as the people who did this (the prosecutors) are prosecuted themselves and thrown in jail. Otherwise there will be no disincentive for them to not do the same thing again.
June 5th, 2009 at 4:21 PM
Does anybody value the truth anymore? The corruption of oil, money and politics; Palin and her stupidity of corruption of … well, fill in the blank. She has been shifting in truth meter all over the place concerning just about everything – the “grey” zones of the truth pulse in so many directions. The state is so rich and valuable in so many ways, why is it so screwed up with the truth, honesty and just damn good will of people doing an honest day’s work?
June 5th, 2009 at 4:41 PM
I’m with Katiebegood #12. In sports jargon, I think that they threw the game on purpose. By withholding evidence, the got the case tossed for improper conduct. What a coincidence that it has happened more than once in Alaska! One way to show that it was not a political set up by the Republican Justice Department will be the day that we learn that the same thing happened when they were prosecuting Democratics as well. I’m not holding my breath.
June 5th, 2009 at 4:47 PM
4 Mooser Says:
June 5th, 2009 at 1:02 PM
I’m sure that if you put your oild where it belonged, into the hands of private ownership. …
______________
There ya go… yet another who thinks that his politico-economic “if it ain’t private, it’s communist” theory holds sway. Why must everything be in private hands… oh, right. Anything else would deny the few the power to determine what the rest of us do with the money we earn. Besides, it’s not “America’s” oil, but Alaskas. If Alaskans want to keep the a share of the profits instead of sending those profits overseas, then so be it.
June 5th, 2009 at 5:02 PM
Stay on it, Les. Thanks.
June 5th, 2009 at 5:19 PM
to Rep Gara — THANK YOU!
to the readers of Mooser’s comments — Sure sounds like satire to me. Nicely done, too!
to AKM — You rock!
Peace
June 5th, 2009 at 5:28 PM
I just wish that Gara held the same strong, direct opinions concerning Sarah Palin.
The only person that was truthful and direct was Bob Poe.
It makes me wonder, with the pussy footing Gara does with Palin, how much worse can THIS situation be?
June 5th, 2009 at 6:10 PM
Thanks Les Gara for a well written and interesting history lesson, with thought provoking arguments! This happened long before I joined Mudflats, so I had always wondered what the story was behind these crooks after people made references to them in their comments. I agree, this should be posted on Huffington so that it gets the national attention it needs.
June 5th, 2009 at 6:22 PM
Not going after the law breakers, say of the Bush administration, or anyone else, with money or power, just reinforces the fact that “Justice,” as in, being held legally responsible for breaking the law, and or causing harm to others, is only applied to people of moderate to low income who can’t afford big time lawyers and who don’t belong to the hoity toity country club set.
That is not a Justice system, that is a despicably corrupt system of governing.
June 5th, 2009 at 6:57 PM
#20Marnie. Your right as rain on that count.
I think that kinnd of mindset on the Governments part has brought down a lot of Governments.
June 5th, 2009 at 10:07 PM
Thank you Rep. Gara.
@10 Lee323. Well said as always.
June 6th, 2009 at 12:58 AM
Truth justice and the American way? Corruption is rampant and while every state has its share (think IL / Blagojevich), there seems a high concentration of corrupted misdoers in AK (and elsewhere) who ‘pay to play’ and it’s considered business as usual. The rich get richer and the poor freeze and go hungry and undereducated. Lobbyists and lobbying for $$$ has ruined many. Unconscionable crooks contaminated far too many politicians who may have thought that they could not be bought. Greed is indeed a deadly sin.
I am encouraged that information is easier to attain by the average citizen and because bloggers are on a mission to uncover corruption, Perhaps corruption will become less prevalent. Honest prosecution of white collar crime should become less attractive to white collar criminals because the collective we are watching them.
Go Les!
June 6th, 2009 at 5:44 AM
The bush administration may have seemed like a bunch of bumblers, but I have the feeling they made few mistakes–every move, ill-advised and/or executed as they may seem to have been, was intentional…
June 6th, 2009 at 6:13 AM
No, Jim.
The Bush administration wasn’t that focused to be able to intentionally sink federal prosecutions. These types of convictions are being overturned because, as with the actions of the people on top, the people overseeing the prosecutions were more interested in getting the politically like-minded into positions of power and influence – all the more to increase their earning capacity once out of office.
June 6th, 2009 at 7:36 AM
What? no statement by the Governor?
June 6th, 2009 at 9:23 AM
Thank you Rep Gara.
It is unthinkable to me that prosecutorial misconduct may undo these convictions entirely.
The question out here in on-the-street-in-Alaska was not so much “how could they (the Legs) do this to us?” but “What took so long to nail these yahoos?”
We need to feel that we have truly made some progress in signalling that the glory days of oil interests having too much say in state politics are over. We need to feel the agencies vested with standing up for us- like DOJ- are doing an aboveboard decent job.
Some day, maybe, we’ll even pay more carefulattention to ALL the whos we vote into office… gotta have dreams…
June 6th, 2009 at 10:00 AM
I had a conversation with Vic Vickers last summer…you remember him, the guy from outside who was running against Ted in the primary?…and he told me that Norway, which started on their oil fields about the same time as Alaska , had over 400 billion dollars in their permanent fund, rather than the almost 40 we had in ours (then, before the stock market collapse), and why? Corrupt politicians who were working on behalf of the oil companies from the get go….
June 8th, 2009 at 10:47 AM
Oil dollars are very difficult to effectively spend. Every government knows it.