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Friend: Stevens ‘Gets Hysterical’ At Spending Own Money

Tuesday, October 21st, 2008 AddThis Social Bookmark Button

WASHINGTON (CNN) – A recorded phone call from one of U.S. Sen. Ted Stevens’ longtime friends kicked off the prosecution’s closing arguments Tuesday in the Alaska lawmaker’s corruption trial.

“Ted gets hysterical when he has to spend his own money,” Bob Persons told a mutual friend in the recording, which was played for jurors by Joe Bottini, the assistant U.S. attorney for Alaska.

Persons is a restaurant owner in the small Alaska ski town of Girdwood, where the Stevens family owns a residence that had doubled in size by 2001 after extensive renovations.

Prosecutors say the senator did not pay for some of the improvements, and that he was required to report the value of the changes as gifts on Senate financial disclosure forms.

Stevens, who spends most of his time in Washington, gave Persons power of attorney so he could get the required building permit to work on the chalet Stevens has owned since 1983.

Persons made the comment about the senator during a phone conversation wiretapped by the FBI with the consent of Bill Allen, then CEO of VECO Corp., who was at the other end of the line.

Persons also confided to Allen that he didn’t believe Stevens had enough money to do the remodeling.

Allen has admitted trying to bribe two Alaska state senators, and agreed to testify against Stevens in an attempt to get less jail time.

Stevens, the Senate’s longest-serving Republican, has pleaded not guilty to seven felony counts of making false statements. The indictment accuses him of knowingly accepting home repairs and gifts worth more than $250,000 from VECO, an oil services company, and failing to report them on disclosure forms from about 2000 through 2006.

Stevens is not charged with bribery.

Defense attorney Brendan Sullivan, who began to present his closing arguments after Bottini, told jurors that “to believe the government’s version of the evidence, you have to think [Stevens is] some kind of mastermind of conspiracy.”

Bottini had told jurors there is “substantial” evidence of Stevens’ guilt. A significant example, he said, was a generator that Stevens requested from Allen to protect against possible utility system failures related to Y2K, the millennium bug.

But since the generator is not among the gifts listed in the indictment as allegedly concealed, the defense has moved to have the item stricken from the jury’s consideration. The judge will address limitations on the evidence Wednesday when he instructs the jury before sending them to deliberate.

Stevens, during more than two days on the witness stand, testified he wanted a small, rented generator “with a rope-pull to start it like a snowblower,” but said Allen, without his knowledge, arranged to have a $6,000 automatic generator permanently installed behind the home.

“Is there any question the defendant asked for the generator?” Bottini asked Tuesday. “Remember the e-mail from Stevens: ‘I asked Bill Allen to hook up a generator at the chalet for Y2K just in case.’”

“He knew if he asked for a generator he was going to get one,” the prosecutor said. He added that Allen sent VECO employees to Stevens’ home to install it, and the transfer switch alone cost $930.

“We’re talking about a free benefit to the defendant of well over $6,300,” Bottini said. “It was his obligation to report this.”

“If he didn’t want such a large generator why did he go to Allen? Why didn’t he go down to the local hardware store and spend $300 to $400 like everyone else? Because the price is always right when it’s free.”

Sullivan, the defense attorney, told the jury Tuesday that Stevens and his wife, Catherine, repeatedly tried to get a full accounting from Allen as to the cost of materials and labor Allen was arranging.

“The Stevens family paid 160,000-plus [dollars] for this renovation. They paid fair value for what was received,” Sullivan said.

The attorney referred to a 2002 e-mail in which Stevens told Allen, “Thanks for all you did on the chalet. You owe me a bill.”

In that same e-mail, Stevens also warns Allen to “remember Torricelli” and reminds him he’s running for re-election, the lawyer said.

It was during the same period that the Senate Ethics Committee admonished Sen. Robert Torricelli, D-New Jersey, for accepting and failing to disclose expensive gifts from a campaign contributor. Torricelli dropped his re-election bid.

“The government has not proven its case beyond a reasonable doubt because they have not proven he knowingly and materially concealed” anything, Sullivan said.

U.S. District Judge Emmet Sullivan, no relation to the defense counsel, said he wants closing arguments finished Tuesday. He plans to give jurors their instructions Wednesday so they can begin deliberating.

Source — CNN

Oil Prices Tumble In Biggest Weekly Drop Ever

Saturday, July 19th, 2008 AddThis Social Bookmark Button

NEW YORK - The price of oil recorded its biggest weekly drop ever, and a gallon of gas finally pulled back from its record high. So is it time to declare the energy bubble popped?

Experts won’t go that far just yet.

“It’s too early to say we’ve seen the worst of it,” said Tom Kloza, publisher and chief oil analyst of the Oil Price Information Service in Wall, N.J. “We would be Pollyannish if we believe one week represents a trend.”

Still, with oil recording yet another drop on Friday, some industry experts who just days ago thought there was more juice left in oil’s meteoric run are reconsidering.

“If this is not the bubble’s implosion, than it’s a reasonable facsimile,” analyst and trader Stephen Schork said in his daily market commentary. “Time will tell. Nevertheless, for the time being we no longer care to hold a bullish view.”

Light, sweet crude for August delivery fell 41 cents Friday to settle at $128.88 on the New York Mercantile Exchange - well below its trading record of more than $147 a week earlier.

The average price of a gallon of regular gas fell about a penny for the day, to $4.105, according to auto club AAA, the Oil Price Information Service and Wright Express (nyse: WXS - news - people ). Diesel prices dipped three-tenths of a cent to $4.842 a gallon.

Some analysts said a nationwide average of $4 or even lower could be in the offing - almost unthinkable in a summer when there has seemed to be no relief at the pump - although they cautioned that there is no guarantee prices will stay low.

“We’re going to see some relief from that relentless march higher,” Kloza said.

Gas may be getting just a bit cheaper, but major changes in how Americans live and drive are already in motion.

Car buyers have been fleeing to more fuel-efficient models. U.S. sales of pickups and sport utility vehicles are down nearly 18 percent this year through June, while sales of small cars are up more than 10 percent.

While slashing production of more-profitable trucks and SUVs, automakers have been scurrying to build their most fuel-efficient models faster.

Toyota Motor Corp. (nyse: TM - news - people ), which hasn’t been able to keep up with demand for its 46-miles-per-gallon Prius hybrid, said last week it will start producing the Prius in the U.S. and suspend truck and SUV production to meet changing consumer demands.

Ford Motor Co. (nyse: F - news - people ) and General Motors Corp. (nyse: GM - news - people ) also have announced plans to increase small car production, and GM has said 18 of the 19 vehicles it is launching between now and 2010 are cars or crossovers.

Some brave traders used the week’s pullback in oil prices as a chance to buy barrels that suddenly seemed to be on sale. But oil analysts were advising investors to beware.

“Buying here is an opportunity if you are a deep believer in $200 (a barrel), otherwise we think that caution would be better applied,” analyst Olivier Jakob of Petromatrix in Switzerland said in a research note.

If oil buyers sense that the slide was overdone, you’ll probably notice at the pump quickly.

“If (oil prices) rebound, you’re going to see a quick reaction at the gas station, because their profit margins are so stretched,” AAA spokesman Geoff Sundstrom said. “They may be very fast bringing prices back up.”

In other Nymex trade, heating oil futures fell 5.23 cents to settle at $3.6915 a gallon while gasoline futures edged up 0.73 cent to $3.1709 a gallon. Natural gas futures rose 3.3 cents to $10.57 per 1,000 cubic feet.

In London, Brent crude futures for September delivery rose 88 cents to settle at $130.19 on the ICE Futures Exchange.

Source — Forbes