Previous Post
April 23rd, 2006
MORE THAN ANTITRUST: Deconcentration & Lender LiabilityApril 18th, 2006
Council Shuns American Flag: Civil Disobedience?April 14th, 2006
Tax Time & ATP: as Ratz Flee ShipApril 4th, 2006
Challenging a Bad Merger is Your Job:March 28th, 2006
Contemplating Trident & the Fish MatrixMarch 24th, 2006
Ocean Reform School Needed:March 16th, 2006
ADF&G's Campbell: The BetrayerMarch 7th, 2006
Fishing-Dependent CommunitiesFebruary 27th, 2006
GAO on DAPs: Councils Lack Effective Participation FrameworkFebruary 16th, 2006
Council Scared of Capitalism: Serves Transnational Masters InsteadFebruary 16th, 2006
Tensions High at Advisory Panel on GOA PrivatizationPart 2
Adak Runs Amok: New GAO Study Apropos
In a recent example, one of the same ANC agents/employees involved in earlier perjury testified before a regional fish council these past few months that the small boat harbor was (paraphrased) "ready to go, boats are in the harbor, the only hitch is that we have only 9 feet of clearance at the entrance but over 20 feet in the harbor, so we just have to finish dredging the entrance.. but we're open for business." If so, then why the need for the $30 million on what was originally a $6 million project? They will tell any version of their story needed before whatever agency they need to, just to continue reaping the rewards of the earlier fraud. As you know, this Nation values fraud laws because of this very problem of future extension into all other subsequent business and events: i.e. "Fraud vitiates all that follows." It is obvious this qualifies as a RICO matter.
And recent legal actions in Alaska's superior court regarding Adak might allow one to conclude that an unusual but predictable fight is underway at Adak to see who will split up to several hundred million dollars should the US Navy have to vacate the new fish plant from its existing location due to the national security needs of the soon to arrive X-band Radar platform. The ANC is deeply wrapped in that issue, and the court cases are full of obvious obfuscations and even further lies. It's too much to get into here, but the Navy contract agent agreed that I probably called it correct when stating a year ago that the superior court was being manipulated to ensure the ANC -- and not outside fishery investors who had entered the business -- would be the recipients of an eventual federal buyout of fishing operations in Adak, were it to occur (highly likely). I wrote an undisputed article about how the court was "J-hooked" (a way of saying the judges were getting hooked with the infamous halibut circle-hook you can't shake free of). Obviously, due to the number of lawyers also deposed, the judges too concluded the court might be getting manipulated for ulterior motives.
There is so much more to tell at Adak, but most Alaskans and many Americans have since learned in news reports that Senator Ted Stevens' son, Ben A. Stevens, has long been deeply involved at Adak -- and held a "secret option" to buy 25% of Adak Fisheries (granted a monopoly by Ted, and granted exclusive fish quotas to accompany that monopoly) for a mere $500,000. It is a revenue stream of over $10 million or more per year, and said to be a business worth $100 million or so -- and that would mean a rather cheap buy-in option, correct? That certainly explains why the EDA itself may have been against assisting me in the FOIA, as the obvious problem was the Senator who headed Appropriations in the Congress -- the committee all of these agencies relied upon for all funds.
The entire situation has never been investigated, but surely the Senator has an interest in protecting his son -- even if he originally thought those procurements were going to be used properly, but turned out defrauded instead. But the evidence shows a far more nefarious undertaking, as fish rights were specifically assigned to the entity his son had the secret interest in, for so little investment. A look at consulting fees paid by Adak Fisheries to Ben Stevens clearly indicates a means to circulating funds to him to enable such a purchase, unless some actual work products for the fees can ever be produced in dispute. Despite legal challenges at the Alaska Public Office Commission, such work products haven't come to light and likely never existed -- not the least of Ben Stevens' abuses of reporting requirements.
And if a proper investigation were to reveal the federal tax truths, it might find the IRS found that this ANC (TAC) was once not only found guilty of tax frauds, was actually fined $3 million by the IRS, but that later through the political powers of Alaska's House member, Don Young, apparently got approximately $2 million of that fine removed/returned. In 2002, they had wanted to tuck that 'forgiveness' into the Land Transfer bill, but it was considered too obvious, so it apparently got earmarked elsewhere later. What other taxpayers in this country get earmark relief for major tax violations and fines of this magnitude? Can common taxpayers apply too, Mr. Young, or do you only construct such Bridges to Somewhere for 'friends'?
Having personally turned over to the IRS well over $100 million in seafood product laundering (accounting tricks) frauds, Abusive Transfer Pricing, in an attempt to return billions of dollars to a US tax nexus to create more USA seafood jobs, and never having received a dime of reward (which was not why I did it) adds special perspective to those who cost our government by such cheating. Those who run up the expenses of investigations, and then use special political privileges to deny the Treasury of funds -- and then who later tap that Treasury for massive 8(a) and other grants of the People's money, and continue to defy all law enforcement and a full and proper audit of those funds need to be revealed.
In a case where the actual stockholders do not share in these frauds as a few managers take abuse with the system, it denigrates all decent ANCs and undercuts the many legitimate reasons for assisting law-abiding Alaskan natives in building better lives. To the extent a few bad ANC managers involve their captive shareholders as co-conspirators, it simply lowers the overall social esteem and responsibilities of peoples whose sovereignty and dignity the very programs were designed to elevate in the first place. It also teaches future leaders a corrupt system and how to personally benefit at the expense of their fellow natives. Surely the US government wishes to police such vitiating abuse.
Again, there is so much more to tell regarding that ANC (TAC, AEC, TAC Services et al) and Adak. But for now, the overall story is simple: there is a severe lack of proper government oversight, a lack of investigations (and civil and criminal legal action) regarding Adak and all of the federal funds allocated there concerning the ANC and alleged development. And that's the real story that the GAO should be pursuing. For if it is true that things can run so amuck at Adak with this ANC, then why should not similar patterns be assumed elsewhere? Especially since the Aleut Corporation has -- as you know -- many of the 8(a) entities which duplicate "field services" and other problematic structures. And if the politicians involved engage in cover-up and abuse, then certainly all ANC programs' true goals lie at grave risk. Thankfully, there already exists evidence that the greater Federation of Alaska Natives also has concerns about Adak and that ANC, and openly disapproved of the seafood rights shenanigans at Adak. Of course, since the majority of ANC shareholders are no different than us, they find such abuse appalling and exclusionary not only of non-native but of rights of other ANCs -- not to mention the greater Aleut Nation itself.
With that said, it is still clear from your team's GAO report that Alaska's Native Corporations and the peoples involved have special situations where the 8(a) options can be of specific benefit to enhancing the welfare and skills of all peoples in the Frontier. We welcome the efforts by all federal agencies to improve the system. However, only if abuses are properly policed can we be assured that the appropriate ANCs (those acting responsibly and meeting desired goals) will receive the benefits of the programs for the sake of all Peoples. We have many and varied friends across Alaska's coastal communities who feel the same, and who willingly work together as peoples with common goals within this Nation, and share concerns against government waste that shames us all.
Thank you for considering this writing, and I'd encourage you to pass along these notes concerning Adak abuses to any and all proper authorities. Since Alaska's attorney general's office and its Regulatory Commission have wantonly failed to police these abuses, and the federal fishery council and Secretary of Commerce have knowingly failed to halt the improper allocation of national fish resources, it is all the more imperative that joint Federal powers in Washington DC assist in resolving these problems.
Thank you again.
Respectfully yours,
Stephen Taufen - for "Adak Power and Electric" (an entity that held/holds rights to privatize a utility and aid real development at Adak)