Say Anything Blog

Allen gets 3 years in prison, $750,000 fine

As some of his family dabbed tears from their eyes, Bill Allen, a one-time Alaskan of the Year and employer of thousands of Alaskans, at last stood before a judge to face his punishment Wednesday.

Now 72, Allen once saw himself as the proxy for the state’s petroleum industry through his oil-field service company Veco Corp. But the FBI caught him paying bribes and gratuities to elected officials and treating campaign finance laws like they were written for someone else.

...It could be awhile. Former Rep. Beverly Masek was sentenced Sept. 24 to six months for taking cash from Allen and his son Mark, and she’s still not incarcerated, according to the Bureau of Prisons Web site.

As the Allen family was preparing for departure, Rick Smith, Allen’s former vice president, took his turn in Sedwick’s courtroom. Smith had pleaded guilty the same day as Allen—May 7, 2007—to the same crimes—conspiracy, bribery and tax violations. While Smith was culpable, Sedwick said, it was not to the degree of his boss, and he certainly wasn’t as wealthy. Smith got 21 months and a $10,000 fine.

...At one point in the proceedings, a question arose over whether Allen’s payments of more than $200,000 over six years to “State Senator B”—a reference to former Senate President Ben Stevens—were bribes or gratuities. The distinction could have added or subtracted several months from the sentences that Allen or Smith could face.

Prosecutors argued they were bribes—payments to achieve legislative goals, even if the goals weren’t specified with each payment. Sedwick ruled they were gratuities—payments to purchase influence that are less damning than bribes but also illegal. But he also said he didn’t know all the evidence the government had.