Senator didn’t know of payments, lawyer says

WASHINGTON (CNN) — U.S. Sen. Ted Stevens, the Alaska Republican on trial for corruption charges, did not know that an oil company was paying for improvements on his home, Stevens’ defense attorney contended in opening statements Thursday.

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An artist sketch shows Sen. Ted Stevens’ lawyer, Brendan Sullivan, gesturing towards his client.

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Stevens is fighting a seven-count indictment accusing him of filing false information on mandatory Senate financial disclosure forms.

Prosecutors say he failed to report gifts and services of substantial value, including improvements to his Alaska home, from oil services contractor Veco Energy, one of the state’s biggest employers.

What started as "a one-story, A-frame cabin doubled in size and became a new home from basically the inside out," prosecutor Brenda Morris said in her opening statement.

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Stevens thought he had paid in full for the extensive renovations, said Brendan Sullivan, Stevens’ attorney, but had been deceived by Bill Allen, a former Alaska businessman who is one of the key witnesses against the senator.

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Watch why Stevens is on trial »

Allen pleaded guilty in May 2007 to handing out more than $400,000 "in corrupt payments" to Alaska officials, not including Stevens, the Department of Justice said in announcing the Stevens’ indictment in July.

Allen is cooperating with the Department of Justice as part of his plea agreement.

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Allen arranged for some bills to be kept from Stevens, who had been "promptly" paying the bills he had received, Sullivan contended.

That meant Stevens could not be held responsible for failing to declare gifts, the crime of which he is accused, Sullivan said.

"You can’t report what you don’t know," Sullivan said.

"They did pay, overall, $160,000 for this renovation project," Sullivan said of Stevens and his wife, Catherine, "which you will find from the evidence is exactly or closely what it should have been."

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But Morris said Stevens had learned how to hide such gifts during the decades he has spent in the Senate, according to The Associated Press.

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