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Sen. Stevens' friend contradicts star witness

WASHINGTON
Wed Oct 15, 2008 6:21pm EDT

WASHINGTON (Reuters) - A friend of U.S. Sen. Ted Stevens denied on Wednesday ever telling an Alaska businessman not to worry about sending the Republican lawmaker a bill for his home renovations, contradicting the prosecution's star witness.

Barack Obama

Stevens is on trial for failing to include on his Senate financial disclosure forms more than $250,000 in renovations on his home in Alaska and other gifts from the businessman, Bill Allen, and his oil services company, VECO Corp.

Allen, the prosecution's star witness, said he ignored a request from Stevens for a bill in 2002 after talking with a mutual friend, Bob Persons, who helped oversee the renovation.

Allen said in testimony to jurors two weeks ago that Persons told him, "Don't worry about getting a bill, Ted's just covering his ass."

Asked by defense lawyers on Wednesday if he made that remark to Allen, Persons replied, "No," and added, "That's crazy."

Persons said he had never been asked about it during several interviews with FBI agents and during his grand jury appearance. "Nobody has ever asked me that question before," he said.

The trial could decide the political fate of Stevens, 84, one of the Senate's most powerful Republicans who is seeking re-election in November after 40 years in office. Stevens is the longest-serving Senate Republican in history.

A guilty verdict would make Stevens's re-election bid more difficult, meaning the trial's outcome could influence the Democratic Party's attempt to tighten its hold on the Senate.

Defense lawyers said they planned to finish their case, intending to call Stevens and his wife, Catherine, as their final two witnesses on Thursday.

They have said Catherine Stevens was the one responsible for the family finances and for the renovation at their home in Girdwood, near Anchorage.

Defense lawyers have said the couple paid all the bills they received for the renovation, but Allen did not submit one bill because of his friendship with the senator. Allen has pleaded guilty to bribing state lawmakers.

The judge in the case said closing arguments could take place on Monday, and the jury will probably begin deliberations on Tuesday.

(Editing by Peter Cooney)



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