Prosecution: VECO CEO talked Kohring out of running for Sen. Green’s seat

ANCHORAGE — A surprise allegation in opening arguments Tuesday afternoon in the corruption trial of former state Rep. Vic Kohring claims influence from oil interests did more than bribe the lawmaker. Prosecutors told a jury of 12 and three alternates empanelled earlier in the day they will show that in addition to accepting bribes from former VECO CEO Bill Allen, Kohring twice abstained from running against Republican state Sen. Lyda Green at Allen’s request.

The gloves were off out of the gates as federal prosecutors and attorneys representing Kohring presented opening arguments in the third trial of a former state lawmaker this year. Charged with bribery, corruption and extortion, Kohring’s follows the trials of former Reps. Tom Anderson and Pete Kott, who were both convicted.

While Assistant U.S. Attorney Joseph Bottini told jurors Kohring accepted bribes from Allen, Kohring’s defense attorney, Seattle-based John Henry Browne, said the two were friends and any small amounts of money that changed hands between the two were gifts, not graft.

Bottini promised the jury he would prove Kohring had expressed an interest in two elections to run for Green’s state Senate seat, but Allen convinced him not to. Green, who could not be immediately reached for comment, has been a vocal opponent to Gov. Sarah Palin’s proposal to increase the state’s Petroleum Profits Tax.

Allen, who testified to bribing Kott and is expected to testify against Kohring, is unreliable and should not be believed, Browne argued during his opening. Allen has problems with alcohol use, was in a serious motorcycle accident while not wearing a helmet and is the type of person who uses expletives in every sentence. He cut a deal with the government to protect his family.

Browne also said he obtained a copy of the affidavit the government used to acquire a search warrant for Kohring's Wasilla legislative office. In that affidavit were the names of 12 people linked to the case, 11 of which were blacked out. In his reading of the affidavit, Browne said he came to understand that Allen believed he had U.S. Sen. Ted Stevens and U.S. Rep. Don Young under this thumb.

“Mr. Allen thought he owned the world," Browne said, reading to the jury transcripts of conversations between Allen and former VECO vice president Rich Smith in suite 604 at the Westmark Barinoff Hotel. “We know what the governor [Frank Murkowski] wants and we got Ted and we got Young,” Browne read.

Browne tried to show Kohring’s situation pales in comparison to VECO's controversial $250,000 consulting contract with former state Senate President Ben Stevens and what he called Easter gifts Kohring said he received from Allen. He painted Kohring as an innocent soul who should not be judged by the actions of other former lawmakers like Kott, where one of his trial questions was a $10,000 overcharge for a flooring job. In comparison, Kohring “sleeps on his couch and lives in a trailer.”

Bottini’s opening was highlighted by a colorful anecdote that combined conspiracy, bribery and fast food. In an attempt to halt the 22.8 percent Petroleum Profits Tax from passing through the Legislature in 2006, Allen concocted a scheme to spirit Kohring out of the Capitol on the day the bill was up for vote. Kohring's absence was supposed stop the House from voting. Smith convinced Allen that would be a bad idea, but not before Allen scheduled a meeting with Kohring at a McDonald's in downtown Juneau.

Kohring and Allen met, ordered food and started to walk back to the Barinoff Hotel, Bottini said. On the way, Allen stuffed $500 or $600 into Kohring's hand. Back in suite 604, Kohring, Allen and Smith are seen on surveillance video eating the fast food and talking about Allen's scuttled plan.

Bottini said Allen told Kohring he did not follow through with the plan because he did not want to harm Kohring's political career. Kohring replied, “I would have done it for you anyway Bill,” Bottini said.

The trial continues Wednesday morning as prosecutors begin to present their case to the jury.