Verdict  - October 27: Guilty On All Counts

 http://online.wsj.com/article/SB122511432019071771.html

WASHINGTON -- A federal jury found Alaska Sen. Ted Stevens guilty Monday of accepting and concealing tens of thousands of dollars in free home renovations and other gifts, a felony conviction that may spell the end of the powerful Republican's political career.

Sen. Stevens's conviction on all seven counts boosts Democrats' hopes of capturing his seat in next week's election and achieving a filibuster-proof 60 seats in the Senate. The 84-year-old senator is seeking his eighth Senate term against Democrat Mark Begich, the mayor of Anchorage, and polls have showed a tight race.

Senate Democrats have poured more than $2.2 million into the contest, drawing attention to the corruption case with a stream of television ads.

In a statement, Sen. Stevens said he will continue his campaign. He said he is innocent and will fight the verdict, which he attributed to the "unconscionable manner in which the Justice Department lawyers conducted this trial."

If Sen. Stevens is re-elected, the Senate eventually will hold hearings to decide if he should be expelled, but it is likely to wait until he has exhausted any appeals. If he is elected and later steps down, his successor would be chosen by special election under Alaska state law.

During a four-week trial, prosecutors claimed Sen. Stevens received more than $250,000 of free home renovations and gifts from an oil-services executive and other friends, and never reported the items on Senate disclosure forms. They said Veco Corp. and its founder, Bill Allen, spent tens of thousands of dollars transforming Sen. Stevens's once-modest Alaska cabin into a stylish home with a new first floor, wraparound deck and other amenities. They also said Mr. Allen and others gave Sen. Stevens furniture, a gas grill, tools and other gifts.

Denying all wrongdoing, Sen. Stevens said he paid every renovation bill he received, contending that he exercised little oversight on the project because his wife was in charge. Sen. Stevens said he had no idea Mr. Allen was paying for part of the project.

The senator took the stand but struggled to explain himself. He said some items that he received and had in his home for years weren't gifts.

Alaska Gov. Sarah Palin, the Republican vice presidential nominee, said Veco's influence on the state "was part of the culture of corruption I was elected to fight." She called it a "sad day for Alaska" but didn't say whether she thinks Sen. Stevens should step down.

Gov. Palin didn't endorse the senator in his re-election bid this year, but she featured his endorsement in campaign ads during her 2006 gubernatorial run. She has worked with Sen. Stevens to secure federal funds for Alaska.

Alaska Democrats called for Sen. Stevens's resignation. "He knew what he was doing was wrong, but he did it anyway and lied to Alaskans about it," said Patti Higgins, chairwoman of the Alaska Democratic Party.

Alaska Republican state Rep. Jay Ramras disagreed. "I think we saw a jury that showed geographic bias," said Mr. Ramras. "He should have been tried in Alaska.

Alaska Rep. Don Young, an 18-term Republican, is facing his own corruption investigation involving Veco. Rep. Young, who hasn't been charged, barely won his party's primary and is trailing his Democratic challenger.

Sen. Stevens may have several issues to pursue on appeal, particularly related to what he called "repeated instances of prosecutorial misconduct." During the trial, U.S. District Judge Emmet G. Sullivan criticized prosecutors for withholding information favorable to Sen. Stevens's defense and for introducing other evidence they knew to be false. But he rejected a defense request for a mistrial or dismissal of the charges.

Given his age, clean record and history of public service, Sen. Stevens is unlikely receive a long prison sentence, and may not serve any time, observers said. Judge Sullivan said he will consider motions on Feb. 25 and set a sentencing date after that. Sen. Stevens remains free on personal recognizance.

—Brad Haynes, Joel Millman and Corey Boles contributed to this article.

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