VECO Corporation
| Company type | Private |
|---|---|
| Industry | Oil pipeline services, Construction |
| Founded | 1968 |
| Founder | Wayne Ray Veltri |
| Defunct | 2007 |
| Fate | Acquired by CH2M Hill |
| Headquarters | Anchorage, Alaska , United States |
Area served | Alaska, International oil markets |
Key people | Bill Allen (former CEO), Tammy Kerrigan (chairman) |
VECO Corporation was a U.S.-based company specializing in oil pipeline services and construction until its acquisition by CH2M Hill in September 2007, after which it was dissolved. Established in 1968 under the name Veltri Enterprises by Wayne Ray Veltri, the firm was rebranded as VE Construction following Bill Allen's acquisition in 1970 and later became VECO Corp. in 1979. Over time, it expanded to become a prominent support entity within Alaska’s oil sector and maintained operations internationally with divisions positioned in major oil markets.
Exxon Valdez oil spill
The oil tanker Exxon Valdez discharged approximately eleven million gallons of crude oil into Prince William Sound on March 24, 1989, resulting in the largest oil spill in U.S. history. VECO played a crucial role in the remediation efforts, deploying around 2,500 personnel to manage the environmental cleanup.
Voice of the Times
Bill Allen, former CEO of VECO, financed the "Voice of the Times," a conservative opinion section featured within the Anchorage Daily News. This editorial segment originated from the defunct Anchorage Times newspaper and operated through a space-sharing arrangement with ADN from 1992 until the partnership ended in 2007. The "Voice of the Times" has since transitioned into a blog format.
Alaska Legislature corruption scandal
On August 31, 2006, FBI and IRS agents executed raids on offices belonging to multiple Alaska legislators amid allegations that VECO had provided illegal gifts. Those targeted included Senators John Cowdery, Ben Stevens, Don Olson, as well as Representatives Vic Kohring, Bev Masek, Bruce Weyhrauch, and Pete Kott. Don Olson was not charged after he declined illicit campaign assistance.
VECO also financially supported politician Sarah Palin, contributing over $4,500 to her 2002 campaign through donations made by executives funneled via Allen’s "bonus" scheme; Allen denied any awareness of wrongdoing.
VECO officials Bill J. Allen, Rick Smith, and Pete Leathard were implicated.
Indictments and guilty pleas by VECO executives
On May 7, 2007, VECO CEO Bill Allen and Vice President Rick Smith admitted guilt to charges including extortion, bribery, and conspiracy to obstruct the IRS. Court filings disclosed payments exceeding $200,000 to a former state senator ("Senator B"), identified as Ben Stevens, who purportedly supported VECO’s legislative interests without performing actual consulting work. Stevens has not been formally charged. Another senator involved ("Senator A") was John Cowdery. Former Representative Beverly Masek pleaded guilty to accepting bribes.
Resignations of Allen and Smith
In response to these developments, CEO Bill Allen and VP Rick Smith stepped down on May 11, 2007; Allen’s daughter Tammy Kerrigan succeeded him as chairman.
Federal bribery probes
In July 2007, federal authorities reported an investigation into Representative Don Young concerning possible bribery or undisclosed gifts from VECO. Between 1996 and 2006, Young received $157,000 from VECO employees and its political action committee; by early 2007 he had expended over $250,000 on legal defense costs.
Representatives Beverly Masek, Pete Kott, Bruce Weyhrauch, and Vic Kohring faced federal indictments connected to VECO.
Mid-2007 inquiries expanded to include Senator Ted Stevens’ home renovation project financed through VECO-related services valued at approximately $441,000. On July 30, FBI and IRS agents searched Stevens’ residence. He was indicted in July 2008 on seven counts for failing to disclose gifts but had his convictions overturned in April 2009 due to prosecutorial errors.
CH2M Hill acquisition
In May 2007, VECO initiated discussions with the Colorado-based firm CH2M Hill regarding a potential acquisition. By September 2007, the transaction was finalized, leading to VECO's full integration into CH2M Hill's organizational structure.
See also
External links
- 1968 establishments in Alaska
- 2007 disestablishments in Alaska
- Companies based in Anchorage, Alaska
- Companies disestablished in 2007
- Construction and civil engineering companies established in 1968
- Defunct companies based in Alaska
- Defunct oil companies of the United States
- Oilfield services companies
- Privately held companies based in Alaska
- Construction and civil engineering companies disestablished in 2007
- 2007 mergers and acquisitions
- Construction and civil engineering companies of the United States