Judge Refuses to Dismiss Stevens's Indictment or Declare Mistrial

It was the second time this week that Sullivan has criticized prosecutors. On Monday, he said he was "flabbergasted" that the government allowed a potentially important witness to return to Alaska, even though he had been subpoenaed to testify. Defense attorneys said the witness could have helped their case.

Allen, the former chief executive of an oil services company, is a longtime fishing and drinking buddy of Stevens's. He is the prosecution's star witness in Stevens's trial on charges of lying on financial disclosure forms to hide more than $250,000 in gifts and renovations to his house in Girdwood, Alaska.

In court yesterday, Allen testified that his employees renovated Stevens's house and oversaw the work of other laborers. Over the years, Stevens's house grew from a one-story cabin into a two-story house that Stevens called a "chalet," with two wraparound decks, modern electrical systems and a new garage. In later years, employees at Allen's now-defunct company, Veco, also did repair work, Allen testified.

In court yesterday, Allen said Stevens -- who, at age 84, is running for reelection to a seventh Senate term -- never paid for the work.

Allen also said he never sent Stevens a bill for the renovations, which Veco documents valued at tens of thousands of dollars in labor and material. In 2002, Stevens sent Allen a handwritten letter asking for a bill for a new first-floor deck installed by Veco employees.

"You owe me a bill. Remember Torricelli, my friend," Stevens wrote, referring to a campaign finance scandal involving Robert Torricelli, the former senator from New Jersey. "Friendship is one thing. Compliance with the ethics rules, entirely different."

Stevens added that Allen needed to contact their mutual friend Bob Persons, who was monitoring the renovations because the senator spent so much time in Washington.

When he met with Persons, however, Persons told him to ignore Stevens's request for an invoice, Allen testified. "Bill, don't worry about getting a bill" for Stevens, Allen said Persons told him. "Ted is just covering his [expletive]."

A month later, Stevens again requested a bill. But Allen ignored that, too. He said he didn't want to charge Stevens a dime for the work. "I wanted to help Ted," Allen testified.

"Why?" asked prosecutor Joseph Bottini.

"Because I liked him," Allen replied.

Prosecutors introduced the notes to show that the senator was aware of how much work Allen and Veco put into the house.