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| Company type | Formerprivate company |
|---|---|
| Industry | Energy, chemical, and process industries |
| Founded | 1968 inWilmington, Delaware |
| Founder | William J. (Bill) Allen |
| Defunct | 2007 |
| Fate | Acquired byCH2M Hill |
| Headquarters | , USA |
Area served | Worldwide |
Key people | Now a part ofCH2M Hill. Former executives included Tammy Kerrigan,Interim CEO Peter Leathard, president &COO Roger Chan,EVP &CFO |
| Services | Engineering, design/build, construction, project management, procurement, operations and maintenance services |
| Owner | CH2M Hill. Formerly owned by Allen Limited Partnership (62%) Tammy Kerrigan Revocable Trust (17%) Leathard Limited Partnership (10%) Roger Chan (6%) Bill Allen (5%) |
Number of employees | 4,000 (2007) |
| Subsidiaries | Commonwealth Construction VECO Construction Norcon ECC-VECO VECO Federal VECO Gas Technologies, Inc. RTX Inc. |
| Website | veco |
VECO Corporation was an American oil pipeline service and construction company until its purchase in September 2007 byCH2M Hill. As of that date, the VECO Corporation ceased to exist. Founded in 1968 asVeltriEnterprises by Wayne Ray Veltri, renamedVE Construction after being bought in 1970 by Bill Allen and in 1979 changed to VECO Corp. The company grew to become a major player in the Alaskan oil industries' support. VECO also was a worldwide player in the oil industry, having divisions in many major oil markets.
On March 24, 1989, theoil tankerExxon Valdez ran aground onBligh Reef, spilling eleven million gallons of crude oil into the waters ofPrince William Sound. TheExxon Valdez oil spill was the largest in United States history.
VECO was responsible for large parts of the spill's clean up, hiring 2,500 workers to clean up the environmental disaster.
VECO's Ex CEO, Bill Allen, paid for the publishing of the "Voice of the Times," a half page counterpoint to theAnchorage Daily News which was published within the pages of the latter. The Voice of the Times is what remains of theAnchorage Times, a newspaper which went out of business due to competition from theAnchorage Daily News in 1992.
In accordance with an agreement reached between the former editors of theAnchorage Times and theAnchorage Daily News, space was provided for theTimes' editors to provide a counterpoint to theAnchorage Daily News. From 1992 until 2002, theAnchorage Daily News provided this space for free. In 2002 the agreement was renewed for five years, but the "Voice of the Times" was required to pay for the space as though it was advertising.
On May 9, 2007 the Anchorage Daily News announced it would end the arrangement at month's end, and it would cease publishing the Voice of the Times. Although ADN publisher Mike Sexton said the decision had been made a week prior, he was quoted a few days before this announcement as saying the situation was still under review.[1] The Voice of the Times now exists as ablog.[2]
On August 31, 2006 officers with theFederal Bureau of Investigation and theInternal Revenue Service raided the offices of several prominent members of theAlaska Legislature. Raided were the offices of Sen.John Cowdery (R-Anchorage), Senate PresidentBen Stevens (R-Anchorage), Rep.Vic Kohring (R-Wasilla), Rep. Bev Masek (R-Willow), Rep.Bruce Weyhrauch (R-Juneau), Sen. Don Olson (D-Nome), and Rep.Pete Kott (R-Eagle River). The investigation involved allegations of illegal gifts to law makers from VECO.[3] Senator Olson was never charged but it was found he had turned down illegal campaign assistance.[4]
Sarah Palin is another Alaskan politician that received campaign support from VECO. TheInternational Herald Tribune reported on September 3, 2008, "As Palin campaigned unsuccessfully in 2002 to become lieutenant governor, she received contributions from executives at VECO Corp., a powerful Alaska oil field services company."[5] The questionable donations totaled $4,500, over 10% of all her funding that year. Allen admitted that he had given executives money to be contributed in his "bonus" program though he denied knowing that the laundering was illegal.[6]
Also named in the search warrants were VECO officersBill J. Allen, Rick Smith and Pete Leathard.
On May 7, 2007, VECO CEOBill Allen and Vice President for Community & Government Affairs Rick Smith pleaded guilty in U.S. District Court in Anchorage to charges of extortion, bribery, and conspiracy to impede the Internal Revenue Service.[7]
In addition to the three politicians arraigned on May 4, the new court filings mention illegal payments made to a former state senator, named as "Senator B" in court documents, who received over $200,000 from VECO Corp. over several years, income which Senator B reported as "consulting fees." In the May 7 guilty pleas by Allen and Smith, they admit that the only work done by Senator B in exchange for the funds was advancing VECO's agenda in the state legislature.[7] The only former state senator who matches the information contained in court documents about Senator B is former SenatorBen Stevens (R-Anchorage), son of U.S. SenatorTed Stevens (R-Alaska). To date, Ben Stevens has not been indicted.[8] Another state senator discussed in the court documents who later pleaded guilty, was identified as "Senator A." He was John Cowdery.[9] On 3/12/09 ex-state representative Beverly Masek pleaded guilty to taking $4,000 in bribes from Allen.[10]
On May 11, 2007 the VECO Corporation announced that CEO Bill Allen and Vice President for Community & Government Affairs Rick Smith had resigned from the corporation. Allen was succeeded as chairman of the board by his daughter, Tammy Kerrigan.[11]
On July 24, 2007,The Wall Street Journal reported that RepresentativeDon Young was under federal investigation for possibly taking bribes, illegal gratuities or unreported gifts from VECO.[12] Between 1996 and 2006, Young received $157,000 from VECO employees and its political action committee. In the first half of 2007, Young spent more than $250,000 of campaign contributions for legal fees.[13]
Alaska State House representativesBeverly Masek,Pete Kott,Bruce Weyhrauch andVic Kohring were all charged with federal crimes as part of the investigation into VECO.
On May 29, 2007, theAnchorage Daily News reported that the FBI and a federal grand jury were investigating an "extensive" remodeling project at SenatorTed Stevens' home inGirdwood, Alaska. The remodeling work, organized by VECO, more than doubled the size of the home (public records show that the home is now 2,471 square feet (229.6 m2) and valued at about $441,000[citation needed]).[14] The repairs could have cost anywhere between $130,000 and 250,000, and the payments Ted Stevens paid were about $160,000. Stevens' Alaska home was raided by the FBI and IRS on July 30, 2007.[15] Stevens was indicted by a federalgrand jury on July 29, 2008 on seven counts alleging that Stevens received hundreds of thousands of dollars in gifts that he did not declare on hisUS Senate financial disclosure forms. Stevens was convicted on all seven of these charges on October 27, 2008. All the convictions were vacated on April 7, 2009 due to grossprosecutorial misconduct.
In May 2007 VECO began negotiations with Colorado-basedCH2M Hill to acquire VECO.[16] The deal was finalized in September 2007, with CH2M Hill integrating VECO into its operations.[17]