Money for condo believed to have come from lifelong friend of Sen. Stevens

McClatchy NewspapersAugust 16, 2008 

WASHINGTON -- Prosecutors say it was one of Sen. Ted Stevens' friends whose secret, interest-free loan allowed him to make a killing in a Florida condominium investment six years ago. But they only identify the friend as "Person C" in a court filing on Thursday, and that the person was a partner in the company that built the condos.

Who is Person C? The identify couldn't be determined for sure. But the developer of the project is the son of a lifelong Stevens friend. The late George Dewey Reycraft, who died in 2004, was Stevens' roomate when they attended Harvard Law School. Reycraft's obituary described Stevens as his "best friend."

Stevens, 84, was indicted last month on charges he failed to disclose more than $250,000 in gifts, mostly from the oil services company, Veco Corp. and its former CEO, Bill Allen. But court papers filed Thursday also show that prosecutors hope to introduce evidence at his Sept. 24 trial that Stevens hid a $31,000 loan from a friend and then parlayed it into $129,250 in real estate gains.

The information about the real estate deal doesn't represent a new charge against Stevens, who has been one of Alaska's U.S. senators since 1968. However, prosecutors said in their motionthat they hope to introduce information about the real estate deal, as well as several other new assertions not contained in the original charges. Among the reasons, the motion says, is that the new information "relates to conduct that is inextricably intertwined with the conduct charged in the indictment."

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