After a not long enough silence following his October sentencing when he pleaded guilty to a bribery related felony, former state representative Vic Kohring has spoken out. Kohring recounts his tales of woe in a Wasilla Alaska bimonthly arts newspaper (page 21). I’m not sure if Vic’s middle name is Tim, but to listen to him tell it, it ought to be.

In Alaska, the name Vic Kohring has become synonymous with the infamous cash-for-votes Corrupt Bastards Club. Kohring and a host of other legislators were netted in a massive FBI investigation of the Alaska legislature and oil service company top brass. In October, the last of the crew, former Speaker of the House Pete Kott, and former Wasilla State Representative Vic Kohring were sentenced, putting the political nightmare to bed.

“With these two convictions and the sentences today, this brings to an end the largest and most successful corruption investigation ever in Alaska,” U.S. Attorney Karen Loeffler said after former Reps. Pete Kott and Vic Kohring were sentenced Friday morning. “Six legislators who were sitting at the time (of the investigation) were convicted of corruption charges, five of those were felonies, one was the misdemeanor. That’s 10 percent of the Alaska Legislature.”

Alaskans were left slack-jawed not only at the rampant corruption of their “public servants,” but at how cheaply they had been bought.  A few hundred to a few thousand dollars was enough to buy influence from many of the fine folks in Juneau.

Before we delve into the morass of self-pity and melodramatic cluelessness that is Vic Kohring’s column in Make-A-Scene The People’s Paper, here’s the classic FBI video of Vic taking cash from Bill Allen, and talking about vote influencing, filmed by hidden camera in room 604 of the Baranof Hotel in Juneau.

You may recall that back in 2008 before he was sent off to prison, and despite the above videotaped evidence of him taking cash from Bill Allen, Kohring said he’d been railroaded and framed and that his conscience was “absolutely clear.” Then he inexplicably stood by the side of the Glen Highway (before his ignominious departure to the pokey) handing out cookies to passing motorists underneath a giant sign with his name, and “THANKS ALASKA” in big orange letters. Birds were flipped.

After successfully winning the right to a new trial, he was now seemingly ready to take responsibility and admit guilt on one federal conspiracy charge.

[Assistant U.S. Attorney Kevin] Feldis told the judge, it started at a meal at the Island Pub in Juneau on Feb. 23, 2006, when Allen gave him $1,000 in cash.

“Mr. Kohring accepted that money. Mr. Kohring knew that Mr. Allen was intending to influence his votes. Mr. Kohring took the money knowing why Mr. Allen was giving it to him — he knowingly became part of a conspiracy to bribe elected officials,” Feldis said.

Kohring went on to ask Allen to pay off the $17,000 debt on a credit card, and took other payments, Feldis said.

“Did you hear it all?” Beistline asked Kohring.

“Yes.”

“Is it true?” Beistline asked.

“Yes, it is,” Kohring said.

“Every bit of it?”

“Yes.”

Kohring proceeded to plead guilty.

“Kohring is now prepared to accept responsibility and move forward with his life,” the prosecution’s sentencing memo said.

Silly prosecutors.

Despite his clear admission of guilt, Kohring is actively professing his innocence, and seeking to mend his tattered reputation by telling his side of the story. And so he has done in the awkwardly titled, “Kohring’s Monthly Column, In His Own Words: THE RAID.”

In this story, our hero is driving down the Palmer-Wasilla Highway in August of 2006, when he “received a phone call on my cell from a man with a cold, soulless voice from the FBI.”

You can see where this is going… and it only gets worse.

Our friendly felon goes on to say that the soulless fed told him it would be in his “best interest” to return to his legislative office, located on the ironically named “Railroad Avenue.” Noting that while he was under no legal obligation to comply with the request, he was simply “curious and wondered what was going on.” Well, wouldn’t we all.

“I had nothing to hide so I returned only to receive a load of lies from men with protruding guns at their hips, a pattern that would continue for the next five years.”

Thus begins Kohring’s disparaging and obsessive commentary about federal agents carrying guns. One would think that any Republican representative from Wasilla (where you can carry an open or concealed gun as long as you can legally own it) would certainly be used to less responsible people than FBI agents openly carrying firearms. But apparently, it offended the delicate sensibilities of our fair legislator who clutches his pearls and disparages the fact that FBI agents have guns no less than seven times in his column. The FBI agents at the office led Kohring to muse, “One would think a major crime was taking place with all that presence.” One hesitates to ruin the mood and remind Mr. Kohring that 10% of the legislature and four others ended up convicted, in what is widely regarded as the biggest political corruption bust (aka “major crime”) in the state’s history.

The column goes on to gasp about “splenetic faced” agents (that’s bad-tempered for those of you without a thesaurus handy like Mr. Kohring) going through his files “without his permission” and using rubber gloves, dismantling his office, and locking doors. “It began to look like a raid,” he astutely observed.

“As the FBI men rummaged through my files, they took off their coats to reveal handguns on their hips which, they made sure I would see over and over as they moved around my little office…” And then more about an officer with a “big gun on hip.” (At this point, I’ll save you all from worrying yourselves to death. No, Vic Kohring does not get gunned down in cold blood in his office by federal agents who’ve grown too big for their breeches.)

A tally of the feds’ alleged lies ensues – 1) They said he was a witness, but he was really a suspect. 2) They said they wouldn’t go to the press, but they did. 3) They didn’t tell him he was being detained, but he was. 4) They denied alleged lies 1, 2 and 3 in court.

Those scheming federal agents. But the worst atrocities were yet to come. Kohring was shocked, SHOCKED, to find out that the questions that the FBI was asking him… they already knew the answers to. (!!!)

“…I realized the FBI had been conning me from the beginning. a) They had knowledge of every question asked of me. Not until later did I discover their deceit. The government knew all along that [VECO Chairman Bill] Allen had been my friend, that he had given me some money for my step-daughter as a gift. b) They were trying to catch me in some contradiction. It turns out their sole purpose was to attempt to trick me into giving inconsistent answers so they could charge me with making false statements.”

Share the horror. Federal investigators, already knowing the answers, asked Kohring questions about his friendship with a confessed criminal who had bribed legislators, and about Kohring taking cash money from him, all in an attempt to see if he gave the right answers consistently. I don’t know where this country went wrong, but when we have to resort to standard law enforcement interrogation tactics, the system is broken my friends. Broken.

Kohring also addresses the existence of the videotape you watched above. Ready?

“The government later attempted to make a case out of a dark, grainy, black and white FBI video showing Allen giving me $100 for my step-daughter for an Easter egg hunt, which was blown way out of proportion by a delighted media.”

Yes, they literally tried to make a federal case out of it. Which they did. And he plead guilty. And served time in prison.  But perhaps with a nice bright, high-definition, color film we’d have realized that what we THOUGHT was cash changing hands and promises of influence peddling was just really a sweet innocent Easter gift for a step-daughter between good friends who never hang out together socially.

The final, terrible and heartbreaking conclusion regarding federal agents (other than their gun-totin’ ways) in this tale of persecution and victimhood is this, sayeth Corrupt Bastard Vic Kohring:

“They lie, cheat, they create their own values, anything to get a conviction.” They acted as if they were “honest, halo-wearing guys with honorable intentions.”

After his jail time, Kohring will continue to serve out the rest of his 18 months of supervised release filling us in on the egregious behavior of those who brought him to justice and assuring us that he did nothing wrong, which means he was either lying in court, or he’s lying now. One might even say that he was acting like an honest, halo-wearing guy with honorable intentions. He promises us more to come soon.

[Photo of Vic Kohring leaving the Federal Building after his sentencing]

By Shannyn Moore

“Those who don’t know history are destined to repeat it.” – Edmund Burke

In 2006, the FBI raided the offices of legislators. Lawmakers were prosecuted for selling their votes to help pass Gov. Frank Murkowski’s Big Oil Bailout, the Petroleum Profits Tax (PPT).

The PPT tied 85 percent of state revenue to the efficiencies of the oil producers while simultaneously incentivizing them to be inefficient; the higher their costs, the more they could write off, the lower their taxes, the less money for Alaska. Great deal for the producers at the expense of Alaskans.

And now, just five years later, Gov. Sean Parnell is trying to pass his own Big Oil Bailout, known as HB110. History, it seems, is repeating itself.

Bob Bartlett was prophetic. As Alaska’s congressional delegate, he addressed the Alaska Constitutional Convention on Nov. 8, 1955. He spoke of the importance of our natural resources and predicted an influx of resource development interests. “Unfortunately some of these interests will not be scrupulous in the choice of measures to achieve their ends . . . lobbying activity on a scale never before seen will take place in the capital when Alaska becomes a state.”

Bartlett also warned of “exploitation under the thin disguise of development. The taking of Alaska’s mineral resources without leaving some reasonable return for the support of Alaska governmental services and the use of all the people of Alaska will mean a betrayal in the administration of the people’s wealth.”

Bartlett’s words were never more relevant to the lobbyist-infected political landscape we find ourselves in today, one where the oil industry has literally bribed legislators and raised millions to elect oil-friendly politicians who have returned the favor by ignoring their constitutional obligation to secure the “maximum benefit” for Alaskans.

The oil companies have systematically taken over the Chamber of Commerce, Resource Development Council, and policy groups. One of those groups recently ginned up fake legislative report cards. A nonpartisan Legislative Research Report showed that lawmakers who received F and D grades voted virtually identically to those who got A’s and B’s. The difference? Those who supported the governor’s bill to give $2 billion a year to the oil companies with no strings attached got A’s, while those who didn’t got D’s or F’s.

This past week, Senate President Gary Stevens — one of the legislators with the audacity to question Parnell’s oil tax giveaway — walked into the lion’s den. He addressed Commonwealth North, a group pushing to roll back oil taxes while billing itself as “Alaska’s premier nonpartisan public policy forum.”

Stevens didn’t mince any words. He noted the bogus legislative grades were “sort of like a target. A giant Scarlet Letter. Though I prefer to think of it as a Red Badge of Courage.” Stevens, a retired history professor, then schooled the chamberesque crowd.

You could have heard a pin drop in the room as he reminded Alaskans about the Amerada Hess court case. The court found that from 1977 to 1992 the oil companies were guilty of “deliberate falsification in computing the price paid to Alaska for its royalty oil.” The judge said the state was guilty of “inexcusable trustfulness” in dealing with the oil companies.

Stevens recalled the 1989 Exxon Valdez oil spill, which destroyed the fishing careers of thousands of Alaskans. He noted that the Alaska Oil Spill Commission said Alaskans were abused by Exxon’s approach toward risk management, saying the company showed “a corporate culture of irresponsibility” that put profit over safety and risk mitigation.

Stevens brought up Bill Allen and the Veco scandal that led to the former speaker of the House, chair of the House Oil & Gas Committee, Senate Rules chair and others being convicted of corruption for trying to sell out Alaska to the oil companies.

Stevens noted the oil companies have an obligation to make as much money for their shareholders as possible. But the Legislature has a constitutional obligation to maximize the benefit of our resources for Alaskans.

For the past five years, Alaska’s Senate has been led by a statesman-like bipartisan coalition. While most states are broke, Alaska has more than $15 billion in savings — the largest in the country, without counting the Permanent Fund — because of the oil tax reform called ACES.

Jobs, investment, exploration, the number of companies on the North Slope, and oil company profits are all at all-time highs. Though you’d never know it from the oil industry report card, evidenced by the F the bipartisan Senate group received.

Former oil company executive Randy Ruedrich recently orchestrated the redrawing of Alaska’s legislative lines. His goal? Destroy the Senate coalition and restore power to the oil industry.

Will we Alaskans stay the course? Or have we forgotten our history and thus become destined to repeat it?

Yesterday, Senate President Gary Stevens (R) spoke to Commonwealth North at the Captain Cook Hotel in Anchorage about a variety of issues facing the Legislature in its upcoming Session, including HB 110 (also known as Governor Captain Zero’s oil tax plan). Below, you will find a copy of his prepared remarks. Senators Kevin Meyer (R), Hollis French (D), Bill Wielechowski (D), Bettye Davis (D), and Linda Menard (R) were also in attendance for the organization’s annual Legislative Meet & Greet.

Kudos to Gary Stevens for putting Alaska first. He nails this from beginning to end, and calls the Chamber of Commerce’s “grading system” out for the farce that it is.  One observer described the reaction from the crowd as “stunned silence.”

The Mudflats has not awarded one of these as of late, but bestows upon Gary Stevens, the coveted Golden Spine Award.

To listen to Senator Stevens’ Speech, click here.

Senator Stevens’ Prepared Remarks

Thank you for inviting me to speak. Frankly, you’ve got a lot of nerve. I stand before you as the recipient of an “F” from the Alaska Chamber of Commerce and the Resource Development Council. Legislators were given grades by these organizations, apparently based on our support or lack of it for the Governor’s Oil Tax Bill, HB 110. So, the biggest issue facing the legislature this year is STATE OIL TAXES. Big surprise, right? This has been the biggest issue for many years running.

All Representatives who got A’s voted for the Governors oil tax bill, while those of us who got D’s and F’s either voted against it in the House, or like myself, dared to question it in the Senate. Former Governor Jay Hammond was a constituent of mine for several years after he left office. Hammond, liked to quote Article 8, Section 2 of the Alaska Constitution:

The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the state, including land and waters, for the maximum benefit of its people.

That’s people, not businesses or corporations, but the people of Alaska – You.

It’s a very unusual constitution in this regard. Now, you should know, I love the oil industry. I want to see more oil flowing through the pipeline. Oil provides jobs to Alaskans as well as lots of jobs to outsiders. But it is our oil, and Prudhoe Bay belongs to us. It is true oil pays the bills here in Alaska. Some 90% of our annual revenue comes from oil taxes. So, we like you, we respect you, and we need you. We want you to be profitable.

So let’s not forget the constitution or Jay Hammond. But, to be fair, let’s not forget the abuses we have suffered at the hands of the oil industry.

Remember Edmund Burke’s famous quotation – “Those who don’t know history are destined to repeat it.” I don’t want to dwell on those abuses but I would ask you to remember just 3 events in our historic relations with the industry, so we won’t repeat them. Surprisingly enough, so many Alaskans don’t know or remember these events:

1. Remember Amarada Hess, when the industry was found guilty of falsification and depriving the state of nearly 1 billion dollars

2. Remember the Exxon Valdez, when the industry despoiled our environment from which it has not fully recovered even today

3. Remember Bill Allen, when some of our elected politicians were bribed and sent to prison

Those 3 events are not the only abuses we have experienced. These are just the 3 I’d like you to remember.

Alaska v. Amarada Hess was a court case which found that from 1977 to 1992 companies were guilty of “deliberate falsification in computing the price paid to Alaska for its royalty oil.” It ended with the judge saying that we, the state, were guilty of “inexcusable trustfulness” in dealing with the oil companies.

You did get that, didn’t you? : The judge said we trusted the oil companies too much. That we were guilty of inexcusable trustfulness, WOW. I think you can get into heaven for that.

The 1989 Exxon Valdez oil spill was a disaster I well remember. With enormous damage to Prince William Sound, the Alaska Oil Spill Commission said Alaskans were abused in Exxon’s approach towards risk management, saying the company showed “a corporate culture of irresponsibility” and was unwilling to jeopardize profit when it came to safety and risk mitigation.

I was elected to the legislature in 2000 and was surprised to see Bill Allen and Veco employees so often in the halls and offices of the capitol. As we now know, some of our elected public officials were bribed yet still voted on oil tax bills, and even went to prison for their actions.

So, that’s all in the past. You may say things have improved greatly and I want to believe that.

Still, the wise person learns from history and remembers our past. We don’t want to be accused again of inexcusable trustfulness. We don’t want anyone to think that a culture of irresponsibility is OK, and we don’t ever want to see our elected politicians bribed. To maximize benefits to the industry and to the people – What’s good for the industry may not be good for you.

So, let’s get back to our current situation and the bill introduced by the Governor. It is HB 110 and readily, if barely, passed the House and was sent on to the Senate. It gives away billions of dollars in taxes to the oil industry. Upwards of $9 to $10 billion of your money with very little in return to Alaska.

We have been asking the Administration for months to give us some proof this will do Alaska some good. We asked them to make their case. Give us reasons to vote for it. Show us the proof that we get something out of giving up billions. What does it mean at various oil prices? We have yet to receive that information. And I hope it will be forthcoming before our session begins in January.

Jay Hammond was asked how he would tax the oil companies and he said, “For every cent we could possible get.” Sometimes, even I think Governor Hammond may have gotten a little carried away. I think what he meant was that Alaskans need to get their fair share. He knew the job of the oil company CEOs was to maximize benefits for their shareholders, and they have done that. They have made enormous profits. And I don’t question that they should make enormous profits. They have done well for themselves and for us. But Hammond saw his job, as Governor of Alaska, to do the same for his shareholders – to maximize benefits for you – to make sure Alaska got its fair share.

So, the Senate still has the Governor’s bill, HB 110. Right now, it is in Senate Labor and Commerce Committee. They are studying the issue of jobs. We all know how important this is to Alaskans. We have been told, if we pass HB 110, that more Alaskans will be hired on the North Slope. But as the committee has done its work, they have found we have nearly as many jobs now as we have ever had and they found that the lion’s share of new jobs have gone to outsiders, not to Alaskans.
The normal course for HB 110 would be to go to Senate Resources, to Senate Finance, then to the Senate Floor. Many Senators have concerns about the bill – real and important questions. I suspect if it does make it out of the Senate, it will only be with major changes. A big issue is that of progressivity, which is the tax we charge when oil reaches high levels of value. This I think is something that could be done and might give the oil companies the relief they seek. Also we will be discussing heavy oil. My priority is and will remain to provide for the maximum benefit to the people of Alaska

It is quite telling that Pedro Van Meurs, an international oil consultant, in his presentation here in Anchorage earlier this month implied that Alaska tax rates are not particularly out of line with other regions and suggested that there may be no need to make significant changes in Alaska’s oil tax program. He did not recommend approval of the Governor’s HB 110. This is the best evidence yet that the Senate was right. Let me say that again, Pedro Van Meurs comments are the best evidence yet that the Senate was right.

The past session and this interim have been most contentious. The Senate did not rush to pass the Governor’s oil tax give away bill. We were called a “do nothing” senate because we would not be rushed into a precipitous decision that could cost the state billions with little in return.

In conclusion – Have I mentioned the State Chamber of Commerce and the Resource Development Council? I think I did. As you know they gave those of us who dared question the Governor’s oil tax bill failing grades. They gave D’s and F’s to just about every Representative who voted on the House floor against the bill. Realize the vote was 22 to 16, so that’s hardly a landslide. They also gave failing grades to all the Senators who dared ask questions about the bill.

Many of those representatives and senators are right here in this room, right now. Look around you and maybe you will see members with giant letters on their chests. It’s right there if you can’t see it. Sort of like a target. A Giant Scarlet Letter. Though I prefer to think of it as a Red Badge of Courage.

Anyway, thank you for inviting me.

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“Only in Alaska.”

We hear that said up here in the Last Frontier all the time. In the case of the rise of Sarah Palin, the fall of Bill Allen and the larger-than-life legacy of Ted Stevens, it is literally true. It only could have happened here.

Crude Awakening explains the growing pains and tribulations of a new state coming of age in the modern era – a state of wilderness, and Sourdoughs, thousands of years of Native culture, fishermen, prospectors and pioneers, brilliant minds and brave souls writing their own Constitution. In some ways comparable to the spirit of newness, hope and optimism of Philadelphia in the 1830s, Alaska’s coming out party had a darker and more raucous side. Heralded by the discovery of North Slope crude in 1968, Alaska’s coming of age meant that almost overnight in came the Outsiders – oil mavericks, religious zealots, guys in suits, Texans, and opportunists eager to make a buck. It has not been an easy or graceful adolescence for the 49th state which just celebrated its 50th Anniversary during the brief but eventful Palin administration.

Emerging from Alaska’s new-found wealth and opportunity came a handful of players who shaped the state for good and not-so-good. With opportunity comes greed. With power comes corruption. Crude Awakening focuses on three of these history makers – former half-term governor Sarah Palin, the late Senator Ted Stevens, and unlikely political kingmaker and entrepreneur Bill Allen.

After the 2008 election Alaskans were often asked by those Outside, with more than a little derision, “How could you have elected her?” Amanda Coyne and Tony Hopfinger skillfully put into historical context the unique set of circumstances that rolled out Alaska’s political red carpet for an unknown Wasilla mayor who would change politics nationwide and put Alaska on the map in its proper place for many who thought of it only as the state in that box somewhere near Hawaii. And isn’t it dark all the time, and don’t they live in igloos? To fully understand Palin’s political career, you have to watch the prequel. Coyne and Hopfinger show us the reel. Sarah Palin’s political career was no accident and her sparkling ivory tower was built on a foundation of charred political bones with their own stories to tell.

For Alaskans, this book is sure to be a mix of comfortable known history and “hey, I never knew that” moments. For Outsiders (yes, we capitalize it), it will be a jaw-dropping, eye-popping look into a world of political intrigue that doesn’t seem possible – a small-town writ geographically large, where even the unlikeliest and shadiest of characters is one degree of separation from power-brokers and political hot-shots.

How did hard-scrabble, uneducated self-made oil services maverick Bill Allen befriend Harvard grad Senator Ted Stevens, at one time fourth in line for the presidency of the United States? And how did Stevens (whom most Outside know only as the “series of tubes guy” for his infamous description of the internet) earn the love and admiration of so many in his state? Nothing is ever black and white in the land of the midnight sun.

At times the book reads like an oil tax policy primer, oftentimes like a soap opera, and occasionally like a travel brochure. From price per barrel, and pipeline negotiations the reader suddenly pops into the seedy world of back room deals, love triangles, underage sex for drugs, nepotism, political favors, vengeance, and personalities as large as the wilderness they inhabit.

Coyne and Hopfinger explain how our nascent state got here. Where we go now is anyone’s guess. Alaska politically, geologically, and culturally is a dynamic and unpredictable work in progress. Many of the colorful characters portrayed in Crude Awakening have moved on – some dead, some in prison, some fled the state for greener and more lucrative pastures. But some of the players are still here and the characters they all played, from the broad-minded dreamers to the Corrupt Bastards, all remain (albeit with different faces and names). The tug o’ war over Alaska’s resources and how best to develop and tax them rages on. We, as a state, are ready in some ways to leave our wild youth behind, but geographic isolation, an economy which is still very much reliant on oil, and that same cast of untamable characters means that anything is possible. Alaska’s next fifty years promises a book that is just as entertaining and intriguing as Crude Awakening.

There’s another thing you often hear around these parts. “You just can’t make this stuff up.” In Alaska, you don’t have to.

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To read the discussion, go to Firedoglake HERE.

Join me and author Amanda Coyne of Alaska Dispatch today at firedoglake.com for a book salon featuring the new release Crude Awakening – Money, Mavericks and Mayhem in Alaska by Coyne and co-author Tony Hopfinger. Details below. Hope to see you there!

[Cross-posted from Alaska Dispatch]

Jeanne Devon, AKA AK Muckraker, who runs the popular Alaska-based website The Mudflats, is hosting an online discussion Sunday, Nov. 13, of “Crude Awakening: Money, Mavericks and Mayhem in Alaska.” The discussion will be held at Firedoglake Book Salon. “Crude Awakening” was penned by Alaska Dispatch founders Amanda Coyne and Tony Hopfinger. Coyne will answer questions from 1-3 p.m. Alaska Time (5-7 p.m. Eastern Time, 2-4 p.m Pacific).

Here’s the book jacket description (though Devon’s description, which will appear tomorrow on Firedoglake, is better than what the authors came up with):

Crude Awakening is the rollicking story of politics in America’s last frontier and oil province—Alaska, the nation’s most wild and mysterious state, where politics and oil blurred on the day wildcatters struck it big in 1968. Living in a northern Never Land, where oil companies and the federal government kept the state living high and wild, a handful of players ran the show. Among them were the late Sen. Ted Stevens and oilman Bill Allen, the Tony Soprano of Alaska who controlled the political machine until the FBI arrived to root out corruption, only to be accused of playing as dirty as those they were investigating. These characters and events paved the way for Sarah Palin’s rise to fame and fall from glory in Alaska. Authors Amanda Coyne and Tony Hopfinger chart the epic tale of these three characters, set in a state of soaring hopes, fading dreams, drying oil fields and an uncertain future.

The authors will also be on Alaska Public Radio’s Alaska New Nightly at 6 p.m. on Monday, APRN’s talk of Alaska at 10 a.m. Tuesday, and Moore Up North on Thursday, Nov. 17 at 5:30 p.m. at the Taproot Cafe in Anchorage. The authors will be reading and signing books on Nov. 19 at 11:30 a.m. at Fireside Books in Palmer.

Reviews of the book can be found here, here and here.

Vic Kohring, as you may recall, is the former Republican legislator from Wasilla who pleaded guilty during his October 21 retrial for accepting bribes to keep oil taxes low in Alaska. The sentencing memo said, “Kohring is now prepared to accept responsibility and move forward with his life,” the prosecution’s sentencing memo said.

And now this:

Kohring claims that as a result of Allen’s testimony, he lost his family and is “seen as a corrupt politician convicted of bribery, conspiracy and extortion.” He is requesting a judgment in excess of $100,000.

Here is the tape of Vic Kohring being “seen as a corrupt politician” in a hotel room accepting cash bribes from Bill Allen.

In the federal courthouse last month, Kohring said he had been mostly unemployed, only doing occasional part-time carpentry work. Judge Ralph Beistline sentenced Kohring to time already served (a year in prison) with an additional 18 months of supervised release, even though his attorney argued anything over 12 months supervised release would be excessive.

~Freakishly lifelike court drawing of Vic Kohring being sentenced last month

According to Kohring’s new court documents he “suffered the loss of his reputation, career, family, shame, mortification, and injury to his person (both financially and emotionally), and life in general as his freedom was taken away for a full year, which plaintiff can never get back for which defendants should be held liable.”

For those of you who thought the show was over, and were half way up the aisle, get ready for the encore.

First up: Pete Kott, former Republican speaker of the House, known to followers of Alaska politics as Pete “Got” Kott.

Kott pleaded guilty to one federal charge of “bribery concerning programs receiving federal funds,” and admitted that as an agent of the government of the state he had knowingly intended to be rewarded for acting corruptly. Typically, there is a span of 72 days between a defendant’s plea and sentencing, but Kott had requested sentencing happen on the same day. One got the sense throughout the day that both men just wanted it over with as quickly as possible.

Kott seemed businesslike, and came to court in a suit and tie, with his “professor” glasses on. He didn’t appear to be overly-agitated, and answered questions simply and directly.

After a series of routine questions, Kott explained that he understood he would not be permitted to own a firearm, and for a time would not be able to vote, hold public office, or serve on a jury. Beistline told Kott that the maximum potential sentence for the crime he had committed was 10 years, a $250,000 fine and three years supervised release.

Assistant U.S. Attorney Kevin Feldis addressed the court, summarizing Kott’s offenses. He reminded everyone of then Gov. Frank Murkowski’s oil tax plan (PPT) which would have taxed the oil companies on net profits at 20% for a tax rate, and 20% tradable tax credit. It was known as “the Governor’s bill.” He recounted the meetings in 2006 with Veco CEO Bill Allen and VP Rick Smith, and how Kott had used his influence to get the bill that would have made Veco hundreds of millions of dollars via a new gas line passed into law. Feldis said that Kott had “corruptly agreed to solicit and accept $7,000 and the promise of future employment” from Bill Allen. Political polls were paid for, cash changed hands, legislators were lobbied, efforts were made to stop unfavorable amendments, and information on the pulse of the legislature was passed along to Allen and Smith.

Kott listened, and when the judge asked if he had heard and understood the accusations, and if they were true, he admitted it was true, and made a plea of guilty. Until this point, Kott had maintained his innocence, demanded a new trial, and his attorney had filed motion after motion on his behalf. For that one moment it was nice to hear some kind of admission of guilt for what he had done. But it wasn’t long before the back pedaling began.

Kott’s attorney made note that his client “disagrees with some of the characterizations of his conduct,” and that “Good people, even extraordinarily good people like Pete Kott make mistakes.”

Yes, when I think of “extraordinarily good people,” Pete Kott just springs to mind. To my surprise, there was no audible snickering.

Then Kott, bespectacled and sitting at the defendant’s table spoke and said, “I am sorry for my actions. In my heart, I thought my actions in the legislature were in the best interest of the state of Alaska. Outside of the Legislature, perhaps they were wrong… I hope my behavior in this incident doesn’t erase the good I’ve done over the years.” Now 62, Kott said that his new priority was his family, and that he wanted to “close this chapter of my life and be a contributing member of society.”

Beistline said that Kott had demonstrated that he has a “significant character flaw” that surfaced in 2006. “You sold your soul,” he said to Kott whom he also said had been willing to “cheat, steal, beg, borrow and lie. Not for your constituents, but for Bill Allen and Rick Smith, and yourself.” He characterized Allen and Smith as “rich, greedy and amoral” and said that they had “created a truly dark moment in Alaska’s history… There is a taint placed on the process and the victims are the good people of the state of Alaska.” He went on to condemn their “flagrant disregard of the law.” “It was almost a joke to you people,” he admonished.

But in the end, Beistline accepted the plea that the government and Kott had already agreed to, which was well below the recommended sentencing guidelines. Kott’s plea got him:

Time served (17 months in prison)
3 years supervised release (probation)
A curfew to be determined by the probation officer for the first 12 months
$10,000 fine

The remaining charges against Kott were dismissed. The judge, after noting “I do see problems with alcohol” warned that Kott was not to use alcohol in excess, and that was that.

(Intermission – In which I plug the parking meter, use the ladies’ room, and wait unsuccessfully to get a picture of Pete Kott. Apparently he waved to the media from the elevator earlier, and you can see the picture as well as Richard Mauer’s excellent coverage over at the ADN’s website. I do manage, however, to get a blurry picture of Vic Kohring as he enters which will come in handy later, as you will see.)

Next up: Vic Kohring

Vic Kohring is certainly not as sinister or diabolical a character as Pete Kott, but he is definitely more of a just plain character. You may recall that back in 2008 before he was sent off to prison, and despite video evidence of him taking cash from Bill Allen, Kohring said he’d been railroaded and framed and that his conscience was “absolutely clear.” He described his upcoming prison term “like going on a government sponsored vacation.” Kohring stood by the side of the Glen Highway before his ignominious departure to the pokey handing out cookies underneath a giant sign with his name, and “THANKS ALASKA” in big orange letters.

Apparently the accommodations at the Grey Bar Hotel weren’t what he had hoped for, and after cutting that vacation short, he was now ready to admit guilt on one federal conspiracy charge. “Kohring is now prepared to accept responsibility and move forward with his life,” the prosecution’s sentencing memo said.

Well, that’s nice.

Kohring was a bit more unnerved than Kott, red-faced and drinking from his plastic water cup, he seemed tense. His hair long and sheep dog shaggy, Kohring came to court in a shirt and tie… and a hoodie. If someone hadn’t known what was going on, they’d have thought the world’s largest Kindergartener had gotten caught swiping candy bars from the local five and dime.

Here’s where that picture I mentioned before comes in handy. You will notice that even though the picture is of poor quality, to say the least, it does manage to capture the hoodie, which is clearly visible.

During routine questioning, Kohring said he was on pain medication, and anti-anxiety medication to deal with the stress of the ordeal.

The scenario played itself out all over again with the judge making sure that Kohring understood the gravity of the charge, that he would not be able to appeal, and the consequences of being a convicted felon. Feldis recounted again the PPT and cash for votes scenario. More money changing hands, shady dinners at the Island Pub in Douglas, videos taken in hotel rooms, promises of skullduggery and vote influencing…

When it came time for Kohring to do his mea culpas, his attorney leaned over and whispered (directly into the mic) that he didn’t have to say anything if he didn’t want to.  He didn’t want to. “I don’t have anything to add, but thank you for the opportunity,” he said. If by “I don’t have anything to add,” Kohring meant that he was sorry for denying his guilt, wasting the court’s time and the people’s money, and violating their sacred trust as an elected official… then that was very sweet. Thanks, Vic.

Beistline noted with gravity, “For the second time today, I am sentencing a former elected official.” He went on, “The backroom days in the Baranof Hotel have got to be behind us. You lost sight of your values, and for what? A pittance.”

“Allen and Smith seemed to think they were above the law – that they were the law. And they only succeeded because people like you catered to their ego,” he added. “This whole sorry affair should send shudders through anyone in Juneau who’s thinking of crossing the line.”

He was sentenced by the judge to time served, with an additional 18 months supervised release. The judge explained that the reason that Kohring’s sentence was significantly less than some of the other Corrupt Bastards was basically that Kohring had no influence over anyone else, and no”persuasion power” to change other legislators’ minds because he’s basically just kind of a big doofus. He did not say it exactly that way, of course, and was quite diplomatic, but anyone who’s followed the antics of Vic Kohring over the years would get the subtext.

Beistline gave some parting words, “Stay out of trouble and learn from this terrible mistake,” and with that, the era of the Corrupt Bastards came to an end.

Well, it’s good news for former Senate President Pete (got) Kott and former Representative Vic Kohring – bad news for courtroom devotees of the Corrupt Bastard trials. It was political theater at its best, and there never seemed to be an end to the drama. But with news that there will be no prosecution of Ben Stevens, former Senate President (and son of the late Senator Ted Stevens), nor of Congressman Don Young, it appeared that things are winding down.  Kott and Kohring were both found guilty and serving prison time when their attorneys successfully appealed and got both a retrial because of a botched prosecution.

The retrial promised to have all kinds of new information, dragging the state’s witness former VECO CEO Bill Allen through the mud. Bribing politicians should be enough to call someone’s ethics into question, but we were sure to hear more about all sorts of other abominable hobbies of Allen & Co. like sex-for-drugs with underage girls.

The venue of the new trials was to be in Fairbanks, supposedly to avoid the “media circus.” Frankly, if having your legislators bought and sold for a few pieces of silver isn’t reason enough to fully engage the media, then I don’t know what is. And the constituents of Kott in Eagle River, and Kohring in Wasilla certainly had every right to attend these trials. They, after all, were the ones betrayed by those they entrusted with their votes and whom they put in office. But all that is no longer relevant.

After their convictions in 2007, Kott and Kohring won do-overs in the 9th U.S. Circuit Court of Appeals, arguing successfully that their original trials were tainted by prosecutors who failed to provide them with favorable evidence in their files. Each faced upcoming retrials on three felony charges apiece, but the plea agreements reduced their charges to a single felony for each defendant.

In Kott’s case, it’s bribery, with a maximum penalty of 10 years, according to his plea deal. Kohring is pleading guilty to engaging in a bribery conspiracy, carrying a maximum of five years in prison.

They won’t serve any more jail time, and can now “move on.”

And so, we must be content with the legislators (that were caught), confessing to (a tiny fraction) of the crimes that were committed, and being (sort of) held accountable. Oh, yeah… and we  paid for it.  It’s like refreshing your drink with a chip off a floating iceberg. Or feeling good about a “successful” oil spill clean up that got an estimated 5% of the spilled oil. In matters of political corruption, our bar must be set very low if we are to ever celebrate a victory.

And to play us out, here’s a little memory from the Way Back Machine. Pretend you’re a fly on the wall in room 604 of the Baranof Hotel in Juneau Alaska. The day is March 30, 2006. Vic Kohring, servant of the people talks with Bill Allen about what legislators he can influence, and the miracle of Easter, which consists of… cash in Easter eggs. It’s a true Alaskan classic. Enjoy…

~Brian the moose, listening at the door of Room 604 in the Baranof Hotel in Juneau. Who needs a fly on the wall when you’ve got a moose on the handle?

Mudflatters, think wayyyyyy, wayyyyyy back to October of 2010 and you might remember Representative William Thomas, Jr., a Republican legislator from the beautiful little town of Haines, Alaska.

Representative Thomas is not someone who generally comes to my attention way over here in Anchorage. However, in September of 2010 while Rep. Thomas was running a reelection campaign, I was alerted to some very strange discrepancies regarding some regular ads running in Haines’s only newspaper, The Chilkat Valley News. After doing much research, I filed a complaint with Alaska Public Offices Commission on October 13th:

The complaint is in response to a newspaper advertising campaign consisting of 12 ads which ran in the Chilkat Valley News during the weeks leading up to the primary election. (The ads are attached to the complaint.) Each ad contained the name and address of a Haines business at the bottom in the “This ad paid for by” line. They all had photos, some were of the candidate, some of which (like the Haines “100 years” celebration photo) were taken at public events unrelated to the candidate yet giving the impression those in the photo supported Rep. Thomas. Some encouraged the reader to “vote,” some thanked Rep. Thomas and several had quotes attributed to him…

…The name or image of Rep. Thomas was clearly present in each of the 12 ads during this election cycle.

Upon further research, it was impossible to determine exactly what category of legal contributions these ads were attempting to fit, if any…

An important figure in this story was one of Rep. Thomas’s Campaign Deputy Treasurers, James Studley:

James Studley was the one who coordinated the entire ad buy. He provided the photos, drafted the copy, designed the ads and worked with Ms. Evandon on the buy, but directed Chilkat Valley News to bill each business listed on the ads for payment. Mr. Studley is also a Deputy Treasurer on Rep. Bill Thomas’s re-election campaign and would have been legally able to make a campaign ad purchase. However, that was clearly not the intent because (a) the proper format and wording were not on the ads, (b) while coordinating the purchase, he was not paying for it…he instructed the newspaper to bill the listed businesses, and (c) these businesses were not “individuals, group, non-group entity and political parties” — the only entities allowed to make in-kind contributions to campaigns.

On the other hand, because Mr. Studley was one of Thomas’s Deputy Treasurers and he coordinated the entire advertising buy, this did not appear to qualify as an “Independent Expenditure” because AS Sec. 15.13.135. and regulation 2 AAC 50.270 states that Independent Expenditures cannot be coordinated with members of the campaign.

So, like the little “bill” in Schoolhouse Rock, my little “complaint” travelled it’s own little path laid out for it by Alaska Statute AS 15-13 and Alaska Campaign Disclosure Regulations Articles 2, 3, and 6.

The first step was that the folks named in my complaint (Rep. Thomas and the members of his campaign staff) had the opportunity to respond. James Studley was the only one who did. He makes reference to the first and fourteenth amendments to the Constitution (two of my favorites) and seems to be very confused:

To which I responded in my Mudflats post:

I actually agree with Mr. Studley…the entire thing is VERY confusing. What is most confusing to me is that Mr. Studley, having been involved in previous campaigns, acted unaware of basic election law:

– Independent expenditures were already prohibited from coordination with the campaign…Citizen’s United did not change that.

– Those who do independent expenditures were already required to fill out form 15 – 6…Citizen’s United did not change that.

– If you feel that, “Filling this [required 15-6] form out, even partially is admitting that I have committed some offense…,” you probably have, whether you believe so or not.

The second step: The APOC Staff does an investigation and prepares a staff report for the APOC Commissioners. That didn’t go so well for us–the staff seemed to want to give Rep. Thomas and his staff a pass. They recommended a total “penalty” of $170.00.

The third step: The Staff Report was presented at the November 19th meeting, where I also had the opportunity to testify as to why the Staff Report was…well…wrong…:

I was utterly dismayed when I read the report by the APOC Staff. I was disappointed that the respondent and his fellow campaign workers not only were taken at their word, but obvious contradictions went unchallenged and were even included in the report. I was also disappointed that there were even instances where simple research on the APOC site would raise questions as to the accuracy of some of the testimony, yet it seemed that research was not done.

The public Q&A from the Commissioners to me, their staff and others that were even called (via speakerphone) to verify information was facinating. The Commissioners had some really tough questions for Executive Director Holly Hill, who claimed the “thank you ads” were no different than Mrs. Thomas paying for a “birthday ad,” or Rep. Thomas paying for an ad to sell tires. (I covered that argument in my testimony.) The Commission had 10 days to deliberate and make their decision and I had high hopes.

So I waited…and then received word that there would be a…

Fourth step — a separate deliberation on November 30th, the Monday after Thanksgiving and 10 days after the hearing. That was in Executive Session so no one got to hear. (It was around that time I also found out Exec Director Holly Hill was leaving.)

The long-awaited fifth step — the decision by the Commissioners — occurred on December 2nd. It was very good news:

ORDER REJECTING RECOMMENDATION TO DISMISS COMPLAINT ALLEGATIONS AND REMANDING TO STAFF FOR PREPARATION OF NEW INVESTIGATION REPORT

In it, many of the points I made in my testimony were reaffirmed.

So, that was back in December of 2010. In January of 2011, it became even more interesting when APOC filed it’s own complaint against Rep. Bill Thomas, on campaign finance irregularities:

Representative Bryce Edgmond simultaneously received a similar complaint (his violation was almost $4,000 less), yet somehow managed to resolve his before the legislative session which began at the end of January. However, Rep. Thomas did not and because of Article II, Section 6 of the Constitution of the State of Alaska, he could not be touched while he was in legislative session:

Section 6. Immunities

Legislators may not be held to answer before any other tribunal for any statement made in the exercise of their legislative duties while the legislature is in session. Members attending, going to, or returning from legislative sessions are not subject to civil process and are privileged from arrest except for felony or breach of the peace.

Was the delay purposeful on behalf of Bill Thomas because of that provision in the Constitution? Was it the fault of the APOC Staff that they were unable to proceed with Representative Thomas before the session, yet were somehow able to do so with Mr. Edgmon? It’s a puzzler…

So, the session dragged on until the middle of summer. I called after it was over and asked what was happening and was told they would not be proceeding until at least September. I then received documents (lets call them Step Six) at the end of Aug. prefaced by this email:

Dear Ms. Kellen

APOC Staff has entered into consent agreements will all respondents in the consolidated 10-19-CD cases. Please find attached the proposed consent agreements signed by all respondents pertaining to cases 10-19-CD (Consolidated). The consent agreements will be placed on the September meeting agenda. A hard copy of these documents will follow by US Mail.

These consent agreements are not effective unless and until they are approved by the Alaska Public Offices Commission.

If you have any questions, please let me know.

Warmly,

Martha

The “consent agreements” involved combining the complaints I filed against Rep. Thomas and his staff with the complaint APOC filed against him for campaign finance violations. It is basically a settlement agreement between APOC and the Respondents. Because the Commissioners have not signed off on the consent agrements yet, the document(s) are not available on line. I’ll give you the highlights:

The following three allegations represent all of the allegations against the Respondents. The parties are in agreement that all issues are resolved by this consent agreement.

A) There was coordination of “thank you” advertisements before and during the primary election in violation of AS 13.15.074(f)…

B) The Re-elect Thomas Campaign failed to report general election advertisements when the expense was incurred in violation of AS 15.13.040…

C) There was overfunding of the campaign account in violation of AS 15.13.116(a)(7)(C)…

TOTAL Maximum Penalty Assessed — $37,990.00

TOTAL PENALTY Penalty Agreed Upon in the Consent Agreement — $4,060.00 + Mandatory Training for the Thomases

I checked with some very educated sources to see if they think that this is a good agreement. I wanted to determine if the penalties are on par with what is normally assessed against violators. I was told that 10% of the maximum is pretty standard. The most important issue to me is that, this time, the APOC Staff held them accountable. (Plus, $4,060.00 is a lot more than $170.00!)

This will be presented and (hopefully) decided at APOC’s regular September Meeting on Wednesday at 9:45 am. I will be testifying and I’ll report back on what I say and what the determination turns out to be.

An Open Letter from Wickersham’s Conscience to Attorney General John Burns about Ben Stevens, former State Senate President and son of the late Senator Ted Stevens.

August 11, 2011

John J. Burns, Attorney General
Department of Law
PO Box 110300
Juneau, AK 99811

Re: Ben Stevens

Dear Attorney General Burns:

The Anchorage Daily News reports today that Ben Stevens will not be subject to federal prosecution. Based on the federal prosecutors’ track record in Operation Polar Pen has been pretty pitiful. But just because the Feds have abandoned their claims against Ben Stevens doesn’t mean the State of Alaska has to let him skate.

This is a man who while in the state legislature accepted a “job”  with Veco – that would be Bill Allen – which paid Stevens $243,250 between 2002 and 2006 for “consulting.” But Stevens never would say what work he did for the money. On the witness stand in the 2007 trial of former House Speaker Pete Kott, Smith, a Veco vice president, was asked which state senators he had bribed. ”That would be Ben Stevens and John Cowdery,” Smith swore. (Cowdery pleaded guilty to conspiracy in 2008.)

Sure, Bill Allen has since been revealed as a pervert, and Ben Stevens’ lawyers could chip away at Allen for his nasty sex habits. But Rick Smith isn’t subject to those attacks, and there still isn’t any evidence that the “consulting fees” Veco paid Stevens were anything but a bribe.

Then there’s the whole Aleutians mess, where Stevens seems to have accepted money from both sides of a deal, without disclosing the arrangements.

To help you evaluate the case, WC is providing a link to some of the ADN stories on this alleged crook.

While you are at it, and assuming the Department of Law hasn’t let the statute of limitations run, look into the outrageously high salary he was paid by the Special Olympics World Winter Games folks. $715,000 seems more than little high for a nonprofit position, especially since Stevens still managed to work full time at his Washington, D.C.-based lobbying and consulting business.

You say you don’t have staffing for this? WC suggests you bring Pat Gullefsen out of semi-retirement and put him in charge. Competent, hard working, scrupulously honest and an exceptionally skilled criminal prosecution lawyer. Or Bob Bundy.

The Feds’ incredible series of screw-ups isn’t a license to allow Ben Stevens’ conduct to go unexamined. Having a famous dad doesn’t mean the Alaska Criminal Code doesn’t apply to you. It’s an opportunity to for the State of Alaska to clean up more than one mess.

How about it?

Yours,

/WC

(photo from Alaska Report)