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Department of Justice Office of Professional DEPARTMENT OF JUSTICE OFFICE OF PROFESSIONAL RESPONSIBILITY REPORT Investigation of allegations of prosecutorial misconduct in United States v. Theodore F. Stevens, Crim. No. 08-231 (D.D.C. 2009) (EGS) August 15, 2011 NOTE: THIS REPORT CONTAINS SENSITIVE AND CONFIDENTIAL INFORMATION. DO NOT DISTRIBUTE THE REPORT OR ITS CONTENTS WITHOUT THE PRIOR APPROVAL OF THE OFFICE OF PROFESSIONAL RESPONSIBILITY. TABLE OF CONTENTS INTRODUCTION AND SUMMARY................................. 1 I. ARRAIGNMENT AND TRIAL DATE SELECTION.. 2 II. THE MAIN GOVERNMENT WITNESSES. 3 III. PRETRIAL DISCLOSURES. 5 IV. THE TRIAL. 6 A. Opening Statements. 6 B. Witness Testimony. 8 C. Bill Allen’s Testimony. 10 D. The Defense Case. 15 E. Closing Arguments. 17 V. POST TRIAL CLAIMS OF PROSECUTORIAL MISCONDUCT.. 17 VI. THE GOVERNMENT MOVES TO DISMISS THE CASE.. 19 VII. OVERVIEW OF OPR’S INVESTIGATION. 20 A. Allegations Investigated.. 20 B. Evidence Gathered. 20 C. OPR’s Draft Report .. 21 VIII. OPR’S CONCLUSIONS. 24 A. The Torricelli Note (Chapter Four). 25 B. Information Relating to Bambi Tyree (Chapter Five).. 25 C. Allegations Relating to Rocky Williams (Chapter Six). 26 D. The VECO Spreadsheet and Records (Chapter Seven). 27 E. Allegations Relating to Dave Anderson (Chapter Eight). 27 F. The Land Rover Check (Chapter Nine). 27 G. The Missing Grand Jury Transcripts (Chapter Ten). 28 H. The Alleged Signaling to Allen by Attorney Bundy (Chapter Eleven). 28 I. Analysis of FBI 302 Issues (Chapter Twelve). 28 J. Analysis of SA Chad Joy’s Allegations (Chapter Thirteen).. 29 i CHAPTER ONE: THE ALLEGATIONS AND INVESTIGATION . 30 I. SOURCES OF ALLEGATIONS INVESTIGATED. 30 A. Judicial Criticism. 30 1. Brady Issues. 30 2. Knowingly Presenting False Evidence.. 31 3. Failure to Provide Material Evidence to the Defense. 31 4. Williams’s Return to Alaska. 32 5. Additional Court Criticisms. 32 B. Allegations by Defense Counsel. 35 C. Allegations by Dave Anderson. 36 D. Allegations by FBI Special Agent Chad Joy. 36 II. METHODOLOGY OF THE INVESTIGATION.. 37 A. Document Review. 37 1. Criminal Division Records and Alaska U.S. Attorney’s Office Records. 37 2. Executive Office for U.S. Attorneys’ (EOUSA) Records.. 38 3. Federal Bureau of Investigation Records. 38 4. Professional Responsibility Advisory Office (PRAO) Records. 39 B. Interviews. 40 C. Cooperation with Henry F. Schuelke, III. 40 1. Coordination of Investigations. 40 2. Scope of OPR’s investigation. 42 CHAPTER TWO: FACTUAL BACKGROUND OF STEVENS PROSECUTION. 44 I. OPERATION POLAR PEN. 44 A. The Scope of the Investigation. 44 B. The Prosecution Team.. 47 C. Results of Operation Polar Pen. 49 II. CONFIDENTIAL HUMAN SOURCE BILL ALLEN. 49 III. THE POLAR PEN INVESTIGATION SHIFTS TO SENATOR STEVENS. 51 IV. CRIMINAL DIVISION FRONT OFFICE EVALUATION OF THE PROSPECTIVE TRIAL TEAM. 54 V. THE DECISION TO INDICT SENATOR STEVENS . 57 ii VI. CRIMINAL DIVISION FRONT OFFICE OVERSIGHT OF THE TRIAL TEAM . 60 VII. LEADERSHIP AND ORGANIZATION ISSUES WITHIN THE TEAM. 64 VIII. DISCLOSURES TO THE DEFENSE IN THE STEVENS CASE. 67 A. Disorganization Within the Trial Team.. 68 B. The Decision to Use a Brady Letter. 69 C. The Motion to Limit Cross Examination. 71 D. The August 25, 2008 Giglio Letter. 73 E. The Defense Motion to Compel Discovery. 76 IX. THE GOVERNMENT’S BRADY REVIEW. 79 A. IRS Agents’ Review of MOIs and Agent Notes. 80 B. FBI Agents’ Review of 302s and Agent Notes. 83 C. FBI Agents’ Review of Grand Jury Transcripts.. 85 D. PIN Attorneys’ Review of Grand Jury Transcripts.. 86 E. The Trial Team’s Brady Review. 88 X. THE SEPTEMBER 9, 2008 BRADY LETTER. 90 A. The Creation of the September 9, 2008 Brady Letter. 91 B. The September 7, 2008 Draft by PIN Attorney Sullivan. 92 C. The September 8, 2008 Draft by PIN Attorney Sullivan. 95 D. The September 8, 2008 Draft by PIN Attorney Marsh “(v.2)”.. 97 E. The September 9, 2008 Draft by PIN Attorney Sullivan “(v.2(3))”. 99 F. The September 9, 2008 Draft by PIN Attorney Sullivan “(v.4)”. 99 G. The September 9, 2008 Draft by PIN Attorney Marsh “(v.5)”.. 100 H. The September 9, 2008 Draft by PIN Attorney Marsh “(v.6)” (final version). 104 XI. THE BRADY HEARINGS. 105 A. The September 10, 2008 Hearing. 105 B. The Emergency Motion to Compel and Subsequent Hearings.. 108 C. The September 12, 2008 Hearing. 110 D. The Supplemental Briefing. 112 E. The Court Orders the Government to Produce Redacted 302s. 113 XII. THE PLUTA 302. 114 iii XIII. REPRESENTATIONS CONCERNING THE BRADY LETTER . 119 XIV. KEPNER’S BACKDATED 302s NOT PRODUCED TO THE DEFENSE. 122 XV. ADDITIONAL MOTIONS AND HEARINGS ON ALLEGED MISCONDUCT. 123 CHAPTER THREE: APPLICABLE STANDARDS. 125 I. OPR’S ANALYTICAL FRAMEWORK. 125 II. STANDARDS OF CONDUCT. 126 A. The Government’s Obligations under Brady and Giglio.. 126 B. The United States Attorneys’ Manual.. 128 C. The Government’s Obligations Under Rule 16. 129 D. The Government’s Obligations Under the Jencks Act and Rule 26.2. 129 E. The Obligation to Correct False or Misleading Statements.. 130 F. The Obligation to Follow Court Orders. 130 1. The Court Orders of September 10, 2008 and September 16, 2008. 130 a. The September 10, 2008 Order. 131 b. The September 16, 2008 Order. 135 2. The October 2, 2008 Orders.. 135 G. Timing and Method of Disclosure. 137 H. Rules of Professional Conduct. 138 1. Candor to the Tribunal/General Duty of Candor. 139 a. Rule 3.3(a)(1) (False Statements). 139 b. Rule 3.3(a)(4) (False Evidence).. 140 c. Rule 4.1(a) (Truthfulness in Statements to Others). 140 2. Fairness to the Opposing Party. 140 a. Rule 3.4 (a) (Concealing Evidence).. 140 b. Rule 3.4(b) (Falsifying Evidence). 141 c. Rule 3.4(d) (Failure to Make Diligent Efforts to Comply with Legally Proper Discovery Requests).. 141 d. Rule 3.4(f) (Requesting That a Person Refrain From Giving Information to Another Party). 141 3. Special Responsibilities of a Prosecutor. 141 4. Duty to Obey an Order of the Court. 142 a. Rule 3.4(c) (Knowingly Disobeying an Obligation Under Rules of the Tribunal). 142 iv CHAPTER FOUR: THE TORRICELLI NOTE.. 143 I. INTRODUCTION AND SUMMARY. 143 II. FACTUAL BACKGROUND.. 144 III. ANALYSIS. 177 A. The Allen Statements. 177 1. The Failure to Recall Discussing the Torricelli Note. 177 2. Allen’s Valuation of VECO’s Work on Girdwood. 179 3. The Pluta 302 and the IRS MOI. 180 4. An Allen Statement During Pre Trial Preparation. 181 B. The Brady Letter Representations. 181 C. The Prosecutors Breached Their Duty to Disclose Allen’s Statements. 188 D. Culpability for the Government’s Failures. ..
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