New Name Pops Up in Federal Corruption Case

3 Oct 2008 // WASHINGTON -- The name of yet another person emerged Thursday in the ever-broadening federal corruption investigation: Justin Stiefel, the former chief of staff and campaign manger for U.S. Sen. Lisa Murkowski.

Stiefel was interviewed by a federal agent over a payment scheme involving Veco when he did work for former Gov. Frank Murkowski's re-election campaign, and, prosecutors say in a footnote, "engaged in criminal conduct."

Stiefel's connection to the corruption case was disclosed in a defense filing in the current case against Alaska Sen. Ted Stevens. Defense lawyers, arguing for a mistrial in Stevens' case, attached to their motion letters from prosecutors to the defense.

In their Aug. 25 and Sept. 9 letters, the federal prosecutors handling the corruption cases list evidence that the defense might use to discredit government witnesses. Prosecutors have to provide that sort of information under federal court rulings.

The filing indicated Stiefel might still be subject to prosecution. Government lawyers said he has not been promised immunity.

Stiefel has run his own Washington, D.C.-area lobbying firm the last few years. Before he worked for Lisa Murkowski, he was a top aide to Stevens.

Reached by phone Thursday, Stiefel said he would have no comment about the court revelations.

Prosecutors say Stiefel was interviewed June 3. He said he performed consulting and polling work for Frank Murkowski's re-election campaign. Murkowski was trying for a second term in 2006 but Sarah Palin beat him in the Republican primary.

As Stiefel explained it, Veco was supposed to pay Murkowski's polling company for Stiefel's work, in essence laundering the source of the money, prosecutors say in the Sept. 9 letter.

"Stiefel stated he agreed with (Veco executive) Rick Smith to have Veco pay a polling company for services performed by Stiefel and charged to the polling company. Stiefel stated this was done so that payments would not go directly from Veco to Stiefel. Stiefel further stated he never received any payment from Veco or the polling company."

Defense lawyers blacked out much of the information in the Aug. 25 letter before filing it in court. But they left a footnote about Stiefel.

"During the course of the investigation, the government independently learned that Stiefel had engaged in criminal conduct. (Stiefel) also initially made a false statement to a government agent during an interview. Stiefel later corrected the false statement during the same interview. Stiefel has not been promised immunity from prosecution for this conduct."

The letter didn't say what polling company Stiefel was connected with.

Dave Dittman, who handled Murkowski's polling until the last few weeks of the campaign, said Stiefel never worked for him. Likewise, said Bill McConkey, who wrote radio and television ads for Frank Murkowski. McConkey once was a big player in Alaska politics, working for Republicans. He now lives in Wisconsin, where he's a university instructor and operates a consulting business.

Veco Corp. is the former oil field services and construction company that has been at the center of most of the Alaska corruption cases. Smith, a Veco vice president, and Bill Allen, the company chairman, both have pleaded guilty to bribing Alaska legislators. Allen is the government's star witness in the case against Stevens, accused of hiding about $250,000 in home improvements and gifts, most from Allen and Veco.