Allen's heated relationship with his nephew, Dave Anderson, first came into public view last month in the corruption trial of former House Speaker Pete Kott. In that trial, the defense pushed Allen on whether he had threatened to have Anderson killed because of the blackmail -- but never asked what the blackmail was all about.
On Monday, Kohring's defense lawyer, John Henry Browne of Seattle, brought up the blackmail anew.
"I was not going to kill him, no," Allen said, as he did in the earlier trial.
Allen, who suffered a head injury in a 2001 motorcycle crash and struggles with words, seemed less addled on the stand than he had been late Friday afternoon.
What was Anderson blackmailing him about? Browne asked.
"Ted Stevens' house," Allen answered.
U.S. Sen. Ted Stevens' official residence, a home in Girdwood, doubled in size during a renovation overseen by Veco in 2000. The Daily News reported in May that the remodel, and Veco's role in it, were part of the far-reaching, ongoing investigation into public corruption in Alaska. In July, FBI and IRS agents spent nearly 12 hours searching the house and documenting the addition. Stevens has denied wrongdoing and has said he paid the bills that were given to him.
Robert Williams, a Veco employee who supervised construction on the house, said in an interview last month that Anderson was a metal worker who helped construct the steel staircase for the Girdwood house.
In court on Monday, Browne asked Allen to confirm that Veco paid for the renovation. Allen said he didn't know what it cost.
Was it a gift to Sen. Stevens? Browne asked.
No, Allen said.
"I didn't know how much the house cost, and I still don't know," Allen said.
Browne asked Allen whether he had cooperated with the government in its investigation into Ted Stevens "and the money Veco gave to help with the house."
Yes, Allen answered.
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