Judge won't move Sen. Stevens' case to Alaska

By James Vicini

WASHINGTON (Reuters) - U.S. Republican Sen. Ted Stevens failed on Wednesday to have his corruption case moved to Alaska so he could have more time in his home state to campaign for re-election.

U.S. District Judge Emmet Sullivan sided with Justice Department prosecutors by ruling that the case will remain in Washington, where authorities say Stevens filed false Senate financial disclosure forms.

Stevens, 84, was indicted last month on seven counts of filing false forms from 2001 through 2006 by leaving out more than $250,000 in gifts that he received from an Alaska oil services company.

Stevens has served 40 years in the Senate and is the longest-serving Republican senator in U.S. history. His trial is set to start on September 22 with jury selection and last about four weeks as he seeks to clear his name before the November election.

Sullivan ruled that transferring the case to Alaska would cause delay and additional expense. He left open the possibility of holding the trial only four days a week, so Stevens could campaign in Alaska from Friday through Sunday.

'FIRST-HAND OPPORTUNITY'

Stevens, who has been campaigning in Alaska and did not attend the hearing, is expected to face a difficult race against his likely Democratic opponent, Anchorage Mayor Mark Begich.

Stevens said he had urged his attorneys to request that the case be moved because he "wanted Alaskans to have a first-hand opportunity to learn the facts of this matter.

"I understand the court's decision today, and continue to have every faith in the fairness of the American judicial system and the court's commitment to conduct a speedy trial. I welcome the opportunity to demonstrate that I am innocent of these charges," he said in a statement from his Senate office.

His office said Stevens has approved the creation of a legal defense fund to help pay his legal bills, and his attorneys are seeking permission from the Senate Ethics Committee for such a fund.

Under the law, a report must be filed detailing contributions and expenditures. Lobbyists, corporations and unions cannot contribute to the fund and Stevens cannot solicit donations.

Sullivan agreed with prosecutors who argued that comments by Stevens about his case while campaigning in Alaska could taint potential jurors in the state.

Defense lawyer Brendan Sullivan, whose high-profile clients have included Iran-Contra figure Oliver North, argued for moving the trial to Alaska so Stevens could campaign in the evenings and on weekends.

Prosecutor Nicholas Marsh said Stevens had received an early trial date as he had requested. He said moving the case to Alaska would result in a more favorable jurisdiction for Stevens.

(additional reporting by Yereth Rosen in Alaska)

(Editing by Randall Mikkelsen and Xavier Briand)