Sen. Ted Stevens (R-AK) Indicted

WASHINGTON (AP) -- Sen. Ted Stevens, the longest-serving Republican senator and a figure in Alaska politics since before statehood, was indicted Tuesday on seven counts of failing to disclose thousands of dollars in services he received from a company that helped renovate his home.

The first sitting U.S. senator to face federal indictment since 1993, Stevens has been dogged by a federal investigation into his home renovation project and his dealings with wealthy oil contractors.

The investigation has upended Alaska state politics and cast scrutiny on Stevens - who is running for re-election this year - and on his congressional colleague, Rep. Don Young of Alaska, who is also under investigation.

Stevens' indictment further damages Republican prospects in the November election as Senate Democrats, who now enjoy a 51-49 majority, try to capture a filibuster-proof 60-vote majority.

Matthew Friedrich, chief of the Justice Department's criminal division, said prosecutors followed the department's policy to keep politics out of the decision-making process.

"We bring cases based on our evaluation of the facts and the law," Friedrich said. "We bring cases when they are ready to be charged and that's what happened here."

Prosecutors said Stevens received more than $250,000 in gifts and services from VECO Corp., a powerful oil services contractor, and its executives. From May 1999 to August 2007, prosecutors said, the 84-year-old senator concealed "his continuing receipt of hundreds of thousands of dollars worth of things of value from a private corporation."

The indictment unsealed Tuesday says the items included: home improvements to his vacation home in Alaska, including a new first floor, garage, wraparound deck, plumbing, electrical wiring; as well as a Viking gas grill, furniture and tools. He also was accused of failing to report swapping an old Ford for a new Land Rover to be driven by one of his children.

Justice Department said Stevens will not be arrested and will be allowed to turn himself in.

Stevens has adamantly denied any wrongdoing but he said little else publicly about the investigation. Messages left at both Stevens' Senate office in Washington and his campaign office in Anchorage were not immediately returned. His attorney also did not return calls.

Stevens has coasted to re-election six times in Alaska, but was in what was viewed as the toughest race of his career this year against Anchorage Mayor Mark Begicha.

It also tarnishes one of the most powerful and savvy of the GOP lions in the Senate a year after another Republican senator, Larry Craig of Idaho, pleaded guilty to charges arising out of a Minneapolis airport men's room sex sting.

Stevens for years wielded power from his position as chairman of the Appropriations Committee from 1997 to 2005, except for 18 months when Democrats controlled the Senate. His longevity also means that if Republicans took over the Senate, he would be president pro tempore, a mostly symbolic title but one that would make him third in line for the presidency after the vice president and speaker of the House.

Under Senate rules, Tuesday's indictment will require Stevens to give up his post as senior Republican on the Appropriations Committee.

On Capitol Hill, Sen. John Warner, R-Va., called Stevens a hero, adding, however, he didn't know any details about the indictment. "All of us have time that we have to deal with that are tough," Warner said. "I wish him the best."

"I've known Ted Stevens for 28 years and have always known him to be impeccably honest,' said Sen. Arlen Specter, R-Pa., another longtime colleague.

Prosecutors said Stevens "took multiple steps to continue" receiving things from oil services company VECO Corp., and its founder, Bill Allen. At the time, the indictment says, Allen and other VECO employees were soliciting Stevens for "multiple official actions .... knowing that Stevens could and did use his official position and his office on behalf of VECO during that same time period."

VECO's requests included funding and other aid for the oil services company's projects and partnerships in Pakistan and Russia. It also included federal grants from several agencies - as well as help in building a national gas pipeline in Alaska's North Slope Region, according to the indictment filed in U.S. District Court in Washington.

A moderate Republican, Stevens has served almost 40 years in the Senate, where he unabashedly steered money to toward his remote and sparsely populated home state. He often drew criticism, however, for going around the traditional appropriations process to fund his pet projects.

The Justice Department has closely followed that money, looking for where it intersects with the senator's son, Ben.

A lobbyist and former state senator, Ben Stevens was paid as a consultant for many in the fishing industry who benefited from legislation his father drafted. When Ted Stevens created a $30 million marketing fund for Alaska seafood, Ben Stevens helped decide which companies got the money. Some were his clients.

Ben Stevens also had financial ties to a company that stood to make millions off a piece of federal legislation his father wrote. But he repeatedly has said he never lobbied his father and both men have dismissed such criticism for years.

© 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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