FBI tapes show Kohring eager to help VECO

ANCHORAGE – Former state Rep. Vic Kohring seemed relaxed Wednesday as prosecutors played through nearly two dozen recordings of meetings and conversations he had with former VECO executives, including his eagerness to help his “friends at VECO.”

Kohring was Boy Scout courteous and seemed eager to please in the recordings with former VECO CEO Bill Allen and former VECO vice president Rick Smith. The tapes are part of the evidence Assistant U.S. Attorney Joseph Bottini is parading in front of a jury; Kohring faces federal bribery, corruption and extortion charges for allegedly accepting money from Allen in exchange for his support and votes on legislation.

In the recordings, Kohring praised his staff, was almost never profane and took pride in House Bill 386, which he helped write. A 2006 piece of legislation, HB 386 extended the deadline for certain oil and gas expenses to be used as credits against the Petroleum Profits Tax, which was also passed last year. The FBI tapped Smith’s cell phone and hid video cameras in suite 604 of the Westmark Barinoff Hotel in Juneau, where Allen and Smith met with legislators, including Kohring.

On the recordings, Kohring expressed a dislike for the Anchorage Daily News and Channel 2 news because they “twisted” public opinion with “spoon-fed lies” about former Gov. Frank Murkowski’s Petroleum Profits Tax. Prosecutors claim Kohring was one of a group of state lawmakers who accepted VECO money in exchange for favorable votes on the PPT.

Much time on the tapes was devoted to the VECO internship Kohring procured for his nephew, Aaron, from Rick Smith. They also discussed special tax breaks for the oil industry Kohring wrote into House Bill 386.

On the video surveillance tape Kohring could be seen taking several hundred dollars from Allen to get Easter eggs for his daughter. He was also shown as eager to help his “friends at VECO,” which included gathering information for and lobbying on behalf of the company. In one scene, Kohring and Allen eat from bags full of McDonald’s take-out food at the hotel and Kohring seems willing to conspire with Allen to kill a bill in the state House.

Allen and Smith are shown discussing how they would reward then state Sen. Ben Stevens and former Rep. Pete Kott for their help on the Petroleum Profits Tax Bill. To these two former legislators Allen adds Korhing’s name.

“Well, we got ol’ Kohring we got to figure out,” Allen said.

Kott was convicted last month of bribery, conspiracy and extortion. Allen, who cut a deal to testify for federal prosecutors, testified against Kott.

During a taped phone conversation, Kohring asked Smith to hand the phone to Allen.

“Uncle Bill, my friend,” Kohring can be heard saying. He then thanks Allen for Aaron’s internship.

“I wouldn’t hug you, but I’d give you a good hearty handshake,” Kohring said.

Allen asked Kohring to spy on his fellow legislators. “Kind of, see what they are really thinking about,” Allen said. “Tell us who is really with the governor’s [Frank Murkowski] 20/20 [Petroleum Profits Tax Bill].”

Later Kohring reports back to Allen about Rep. Kevin Meyer, R-District 30.

“He’s in our camp definitely,” Kohring said.

When Gov. Murkowski’s preferred 20 percent petroleum tax bill changed to 22.8 percent, Allen and Smith got serious. “We have to get dirty and we have to produce,” Allen says on the tapes. “Just like ol’ Vic the other night. I gave him a thousand. That’s what I’ve got to do.”

For that $1,000, Allen said Kohring “would kiss our ass.”

In another audio recording, Kohring took a pot shot at the local Friends of Mat-Su, which Kohring called a liberal anti-development group. Kohring said the group would be no help to his 2006 campaign.

“They’re drooling at the prospect of replacing Vic Kohring,” he said.

In the indictment of Kohring, the government alleges that as early as January 2002 Kohring was provided cash payments of about $500 to $1,000 by Allen and Smith as rewards for “official acts taken and to be taken regarding [Allen] and [Smith’s] business interests,” the indictment says. At the behest of Allen, Kohring may have also fired his aide, Eric Musser, who had filed a complaint with the Alaska Public Offices Commission against former Rep. Bev Masek, whom Allen and VECO supported.

Initially defined as a loan, $17,000 Kohring solicited from Allen and Smith to help pay credit card debt that was in collection is called a payment in Kohring’s indictment.

Kohring’s defense attorney, Seattle-based John Henry Browne, required the government bring in as witnesses every FBI special agent who had a hand in monitoring the wiretaps. A clutch of 10 special agents milled around the courtroom door Wednesday waiting to take the stand. Many had to fly in from their offices outside Alaska.

Following a day of watching and listening to covertly made recordings, the jury will hear from former VECO CEO Allen early on Thursday. Bottini said his next two prosecution witnesses examinations are expected to include Allen, with Smith to follow, and both would provide lengthy testimony. Allen’s testimony helped convict Kott in his recent trial.

Bottini said the prosecution expects to finish presenting its case by Tuesday.