Allen and VECO were supporting a plan by then-Gov. Frank Murkowski, R-Alaska, which would have taxed three major oil companies, BP, Exxon and ConocoPhillips, 20 percent for production of gas on the North Slope, but would have then provided a 20 percent tax break for construction of the pipeline done by the three major firms.
As the CEO of VECO, Allen and his top tier of executives had devised a plan providing Alaska state officials with campaign donations. Allen and others at VECO came under FBI scrutiny for setting up a plan to reimburse VECO employees for campaign contributions they made with "special bonuses."
Allen testified that he agreed to help the FBI to protect his family and his son, who also might have come under investigation. Allen testified that his son made some donations to a Stevens' son Ben, who is an Alaska state lawmaker. Under instructions from the judge, Allen did not name Ben Stevens in court.