WASHINGTON — A report on misconduct in the Justice Department released Thursday paints a picture of a rudderless and sometimes dysfunctional public corruption unit under the man who has since become the face of President Barack Obama’s effort to crack down on officials who leak government secrets.
The 525-page report offers a rare and unflattering glimpse behind the scenes of the 2008 prosecution of then-Sen. Ted Stevens, a criminal case that imploded. The prosecution was supervised by William Welch and, although a special prosecutor credited him with trying to correct many problems, the new report portrays Welch as out of the loop and preoccupied, even as others alerted him and other senior managers to signs of trouble.
The document reopens an embarrassing chapter for the Justice Department, which withheld evidence from Stevens’ attorneys so often that Attorney General Eric Holder, in his first months on the job, asked that the senator’s conviction be overturned. Stevens, 86, died in a plane crash in Alaska in August 2010.
Special prosecutors heaped much of the blame on lower-level prosecutors. But the report also offers an unusually candid look at Welch, who went on to lead two major investigations that accused officials of the Espionage Act for talking to journalists. Those cases also have been marred by missteps that earned rebuke from judges.
Journalists and open government groups have criticized the Obama administration and Welch for using the Espionage Act, a World War I-era law prohibiting aid to the enemy, against officials suspected of giving secrets to reporters. Those groups describe the officials as whistleblowers, not criminals.
Welch led the prosecution of Thomas Drake, a former senior National Security Agency official who faced 35 years in prison for disclosing government waste and mismanagement for a reporter. The case crumbled last year. A federal judge lambasted the government’s handling of the case and sentenced Drake to community service and probation for one misdemeanor
“It was not proper,” U.S. District Judge Richard Bennett said. “It does not pass the smell test.”
Welch is also leading the prosecution of former CIA officer Jeffrey Sterling, who is accused of disclosing information about a botched intelligence operation in Iran to Pulitzer-winning New York Times journalist and author James Risen. In that case, the Justice Department was late in disclosing evidence about two key witnesses, prompting a federal judge to bar them from testifying.
In the Stevens case, the longtime Alaska senator was charged with lying on Senate disclosure documents about home renovations and other perks he received from his friend, a wealthy oil contractor named Bill Allen. Allen became the key witness against Stevens, testifying that he and his employees lavished the senator with freebies.
A jury convicted Stevens on all charges in October 2008.
Almost immediately, however, things began to unravel for Welch and his team. An FBI agent — a government whistleblower — stepped forward and told a federal judge that prosecutors had withheld evidence that undercut Allen’s testimony and called his credibility into question. A federal judge held Welsh and his prosecutors in contempt and appointed a special counsel to sort it out.
The special counsel’s long-awaited report does not recommend criminal charges against anyone. But it blames prosecutors Joseph Bottini and James Goeke for intentionally withholding and concealing evidence. The report is also critical of prosecutor Nicholas Marsh but, because Marsh committed suicide before the report was finished, the investigation doesn’t issue a finding on his conduct.
Though Welch was the chief of the public corruption unit, the special counsel said Welch “perceived himself effectively to have been eliminated from the ‘chain of command’” because of the unusual involvement of senior Justice Department managers in the case in 2008 during the Bush administration. And because his deputy was also the lead trial prosecutor, Welch was busy managing other cases.
The effect was that, on the Stevens case, everyone thought someone else was in charge of reviewing the evidence and deciding what to give to the defense team, a process known as a Brady review.
Brenda Morris, the lead prosecutor, told investigators that she asked Welch for help before the trial started.
“I recall around this time going to Bill and saying, look, there’s some Brady issues. You got to, you got to help me with this. You got to focus on this,” Morris said.
Bottini said that didn’t happen.
“What we needed was someone cut loose to specifically to deal with a project-manager type role for this thing,” Bottini told investigators. “And we didn’t have that.”
The special prosecutor, Henry Schuelke, credited Welch for always erring on the side of turning over information to Stevens.
But because Welch was busy with other cases, he became involved with that only when asked, Schuelke concluded. And there were warning signs long before the case began to unravel.
Problems with Allen’s testimony, for instance, were foreshadowed in emails one year before trial, when questions arose about whether, in an unrelated case, Allen had persuaded a young woman to lie under about their sexual relationship when she was underage. If true, prosecutors would have had to tell Stevens and his lawyers about it.
Welch was one of several prosecutors who received an email with handwritten notes from an FBI interview that strongly suggested Allen had persuaded the woman to lie. He said he didn’t read the document until much later, relying instead on his subordinate’s conclusion that they were ambiguous.
Welch said he didn’t read the document until the middle of trial and then immediately disclosed it to defense attorneys.
In response to the report, Welch’s lawyers said the case was hamstrung by unusual micromanagement of the case by the top prosecutor in the criminal division, Assistant Attorney General Matthew Friedrich. Even so, Welch’s attorney’s wrote in court documents, Welch urged his team to provide all evidence to Stevens.
As soon as Welch learned about other problems with the case in 2009, attorneys said, he immediately urged Justice Department leadership to throw out the indictment and overturn Stevens’ conviction. Days later, they did.
Other prosecutors named in the report, however, said the special prosecutor unfairly spared managers like Welch while heaping blame on low-level lawyers, even though the senior attorneys were aware of potential pitfalls in the case.
“The Schuelke report does not even attempt to explain how Mr. Goeke intentionally violated his Brady obligations,” Goeke’s attorneys wrote, “while others with significantly more seniority and experience, such as Ms. Morris and Mr. Welch did not.”




Comments (21)
Add commentMisconduct in the DOJ?
Misconduct in the DOJ? Imagine that.....
It's clear now
It's very clear that Senator Stevens was wronged by the justice system. No one can now possibly believe that he would have lost the 2008 election if the Justice Department had been honest. Corrupt attorneys took down the best advocate and defender Alaska has ever had.
Juneau voted against Senator Stevens and of course the entire state, especially the rural areas that Stevens had helped so much, was much against him in the final vote tally. Friends jumped ship, and long-time friend Bill Allen was used as a tool by corrupt attorneys. Bill Allen lied to save himself and his family fortune. Ted Stevens would be alive today if these attorneys had not been corrupt.
Our one leader in Juneau who stood by Ted Stevens is Representative Cathy Munoz. She was running against an incumbent Democrat in Juneau yet on the front page of this newspaper she stood by Senator Stevens in the strongest possible terms right before the election. Of course the election days later defeated Stevens and Cathy Munoz was the only Republican that year to beat an incumbent Democrat; but she was willing to risk her election by sticking with Ted Stevens right before the November election. That showed leadership, and now we know that Ted Stevens has been vindicated.
He was still a crook
Just because some evidence was withheld doesn't mean that Stevens was innocent. It just means the case against him was flawed. Slightly.
He was likely accepting kickbacks like most republicans. He was a career politician, and a republican. He was really comfy with big oil.
And I disagree that the election outcome might have been different.
He was no saint.
And if you want to talk about Cathy Munoz's leadership skills, just look at her vote on the recent Governor's giveaway. That vote alone speaks volumes as to her "leadership."
She nearly gave away billions of Alaskan's dollars to our Governor's friends in big oil. Thank God the Senate did its homework when the House did not and blocked this giveaway. As a result, the Senate discovered the lies and information behind the giveaway which Munoz voted for!
That's not leadership. That's putting party before people.
This Juneauite...
...stuck by Uncle Ted. Had I not already been impressed by his dedication to Alaska and Alaskans, corruption allegations in the eleventh hour of an election year would still have given me pause. If they were substantiated, I would be willing to wait until after his re-election and let due process run it's course and decide if impeachment was in order. Meanwhile, his "friend" turncoated on him, his Governor bailed on him, the majority of his constituents doubted him and his opponent took advantage of his situation. Empire bloggers screamed "Felon!" and I (and many others) called "BULLS__T!".
God bless you, Senator Stevens! RIP.
I have a novel idea.
Lock Stevens up and throw away the key!
@ Jo - Wrong, so very, very wrong.
From a more in-depth article on the Stevens' case:
"A court-appointed special prosecutor has determined that serious misconduct by Justice Department prosecutors tainted the federal investigation and trial of former Sen. Ted Stevens, according to a report released Thursday.
“The investigation and prosecution of U.S. Senator Ted Stevens were permeated by the systematic concealment of significant exculpatory evidence which would have independently corroborated Senator Stevens’s defense and his testimony, and seriously damaged the testimony and credibility of the government’s key witness,” the report noted."
AND
"The prosecution charged that Stevens lied on his Senate financial disclosure forms, in effect concealing $250,000 worth of gifts and home renovations from a wealthy oilman, Bill Allen, and his oil services company, VECO.
During the trial Stevens defense lawyers argued that Stevens paid $160,000 for the home renovations and did nothing wrong. The report highlights that the lead FBI case agent, Mary Beth Kepner, did not write reports following interviews with Bill Allen, who had asserted that the work only cost $80,000.
“The value of VECO’s work on the Girdwood residence was $80,000, constituted significant …information. However, that information was not recorded in any [FBI reports] and was not disclosed to Williams & Connolly until 2009, after the trial, when the new team of prosecutors took over,” the report found.
The government introduced false business records to boost the value of renovations on the Senator’s Alaska home. It also hid from the defense the evidence needed to show that the value was much less than the government claimed, including evidence that its key witness disagreed with the government about the value of the renovations,” Stevens defense lawyers Brendan Sullivan and Robert Cary said in a statement."
You can read the rest of the article here if you like, though I doubt you want facts. They get in the way of opinion.
http://abcnews.go.com/blogs/politics/2012/03/sen-ted-stevens-prosecutors...
Even though Ted Stevens was
Even though Ted Stevens was probably a crook (like most other politicians, c'mon), you can't use that as justification for fraudulently prosecuting him.
Geez, Jo. You're hardly an innocent person, but it would certainly be wrong to convict you of a crime you didn't commit simply because you've probably done bad things before.
Ted Stevens was not a crook.
There is no evidence whatsoever that Ted Stevens ever took anything that was not legal and earned. He was sometimes arrogant, and one of his children was even more arrogant (to say the least), and that made Ted Stevens a target. But all the corruption was on the part of the Justice Department. Many millions of taxpayers' (and borrowed) dollars were spent to find evidence that Ted Stevens was a crook but obviously none was found (so what Bill Allen manufactured to save his own neck was allowed by corrupt attorneys and a corrupt justice system to stand).
Being a WWII veteran and given his age, if Ted Stevens had known at the beginning of the corruption in the justice system I would respect him all the more if he had then weighed his options and gone out with bullets flying. He would be just as dead of course but there would be a reason for attorneys today thinking of being corrupt to think twice.
So was Veco in the home renovating business?
C'mon.
What business does Veco/Bill Allen have renovating a politician's home?
Doesn't that alone even give any of you pause?
What's $80,000 between buds, eh? oh, wait, um, maybe it was only $40,000. That makes it less corrupt, right?
Look how many other politicians (90% of which were republipukes) Veco bought in the past:
http://en.wikipedia.org/wiki/VECO_Corporation
@PP: You're awfully presumptuous towards me. What makes you think I less-than-innocent about anything? That's a pretty large accusation for someone who doesn't know me.
What does it take...
...to get a vacation around here!
Although it's no consolation, I'm glad Ted got the time off to go fishing and enjoy this Great State that owes him so much! I expect he would have marched on right to his grave for Alaska.
@Jo
You never cease to surprise me. Here I had always thought that a respect for the rule of law and the constitution was one of those Ideals only democrats had. Guess only some of them believe in the rule of law eh Jo?
Don't go fly-fishing with
Don't go fly-fishing with GCI.....it is a shame that Uncle Ted died before this DOJ was shown to be the circus that it has always been since Holder came aboard. I am very thankful that this information did come out so that Ted Steven's can be remembered for the force of nature that he was for the benefit of Alaskans and other Americans alike.
blackdog - you fool
Stevens was convicted in October 2008.
Obama didn't assume office until January 2009, and Holder didn't assume office until February 2009.
Uncle Ted was railroaded under your hero, George W. Bush's corrupt administration.
technicality...
Can anyone say... "...tech-ni-cal-i-ty?"
So, just because people like him and he socialized our state with billions in hard earned US taxpayers dollars, and he gets off on a technicality because the DOJ screwed up...... now he's innocent? Just like OJ Simpson then; a technicality. I say good riddance. Ironic justice. Karma works in mysterious ways.
Ted Stevens was a crook and
Ted Stevens was a crook and he was a jerk, I knew him for what he was a little man. I can't believe some people believe he was some kind of god like figure.
He was not a friend to the Alaska Natives! Arogant, little man is all. This is my opinion only shared by others.
The King of Pork Spending
Was he guilty? Chances are excellent that yes, he was. In any case, the evidence was clear that he was an arrogant, foul spirited man.
Anne Wiesmann, the chief counsel for the Citizens for Responsibility and Ethics in Washington, said she didn't think the report showed that Stevens was innocent of the charges that had been made against him.
"I think the unfortunate thing is we'll never know, because the government didn't play fair in its prosecution," she said. What's clear, she said, is that Stevens was very close to the "criminally and ethically challenged" Allen.
Read more here: http://www.kansascity.com/2012/03/15/3493810/probe-into-ted-stevens-case...
Latitude is right.
The attorney corruption took place on the watch of the Bush White House. All the same, I wish Stevens had left us while taking out a few corrupt attorneys instead of in an accident. Stevens was an attorney himself so he probably would have stuck with the justice system until the end (in fact, he did) but for the rest of us it would have been best if he had gone out fighting as a man!