ANCHORAGE — He wielded extraordinary power in Washington for more than three decades, eventually holding sway over nearly $800 billion a year in federal spending.
But outside the halls of the U.S. Senate, which is a world of personal wealth so rarified some call it "the Millionaires' Club," Sen. Ted Stevens (R-Alaska) had struggled financially.
Then, in 1997, he got serious about making money. And in almost no time, he too was a millionaire -- thanks to investments with businessmen who received government contracts or other benefits with his help.
Added together, Stevens' new partnerships and investments provide a step-by-step guide to building a personal fortune -- if you happen to be one of the country's most influential senators.
They also illustrate how lax ethics rules allow members of Congress and their families to profit from personal business dealings with special interests.
Among the ways that Stevens became wealthy:
* Armed with the power his committee posts give him over the Pentagon, Stevens helped save a $450-million military housing contract for an Anchorage businessman. The same businessman made Stevens a partner in a series of real estate investments that turned the senator's $50,000 stake into at least $750,000 in six years.
* An Alaska Native company that Stevens helped create got millions of dollars in defense contracts through preferences he wrote into law. Now the company pays $6 million a year to lease an office building owned by the senator and his business partners. Stevens continues to push legislation that benefits the company.
* An Alaskan communications company benefited from the senator's activities on the Commerce Committee. His wife, Catherine, earned tens of thousands of dollars from an inside deal involving the company's stock.
Stevens, in a written response to questions submitted by The Times, said that in all these cases his official actions were motivated by a desire to help Alaska, and that he played no role in the day-to-day management of the ventures into which he put money.
"I am a passive investor," Stevens said of his real estate dealings. "I am not now nor have I been involved in buying or selling properties, negotiating leases or making other management decisions."
All in the Family
