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Alaska Senator's Home Is Raided

The inquiry has been run by the Justice Department's Public Integrity Section, overseeing a team of FBI agents and two assistant U.S. attorneys in Anchorage. The involvement of the IRS was not previously known.

Contractors who worked on Stevens's Girdwood home have told The Post and other media outlets that the remodeling project was overseen by Allen and other Veco executives. They said they provided evidence and testimony about it to a federal grand jury in Anchorage.

In addition, the Anchorage Daily News reported last month that a second grand jury was hearing testimony in Washington involving the Girdwood home project. The remodeling, which took place in 2000, involved putting the senator's one-story house on stilts and building a new ground floor, making it two stories.

Veco has received more than $30 million in federal contracts since 2000, according to a database search of, which tracks contracts given to private companies. The largest contracts were for logistical services provided to the National Science Foundation.

Stevens spent more than $37,000 on legal fees in the second quarter of 2007, according to his campaign committee report. The payments went to Williams and Jensen, a law firm that has long served as his campaign counsel.

Stevens is not the only Alaska Republican to be spending large sums on lawyers, according to congressional financial disclosures. From April through June, Rep. Don Young (R) spent more than $262,000 on two law firms. A local office director for Young formerly lobbied for Veco, and Allen used to hold an annual fundraiser for Young.

Part of Allen's plea agreement included charges that he illegally laundered donations to federal officials by reimbursing company officials for contributions they made in 2005 and 2006 to campaign committees. In that period, Stevens and Young were the top recipients of Veco cash, taking in $37,000 and $30,250, respectively.

Allen also pleaded guilty to illegally underwriting the cost of political fundraisers. The Wall Street Journal reported last week that Young recently amended his campaign filings to show $38,000 in payments to Allen for "fundraising costs." Young has declined to comment on the Veco matter.

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