An Anchorage contractor accused of illegally taking $40 million from an Alaska Native corporation denied he lied to conceal underhand business practices.

John Ellsworth -- who ran Alaska Interstate Construction LLC from 1995 to 2005 -- testified in Anchorage Superior Court he had not read the company's multimillion-dollar contracts and improperly overcharged his former business partners $2 million in expenses, The Anchorage Daily News reported.

However, he denied lying under oath to conceal that he intentionally violated the contracts, the newspaper said.

Ellsworth denied bribing his employees and business associates, including Cook Inlet Region Inc. Chief Executive Officer Carl Marrs, with money or free trips to gain their loyalty.

CIRI is one of 13 Native regional corporations created under the Alaska Native Claims Settlement Act of 1971 to settle aboriginal land claims.

Marrs, who stepped down from as head of CIRI, testified last week Ellsworth was a reliable business partner and a trusted friend.

An audit by CIRI and Houston drilling contractor Nabors Industries Ltd. alleges Ellsworth owes them $40 million in alleged over-billed jet expenses, lost profits and other corrupt practices.

Closing arguments and jury instructions are likely Thursday, the newspaper said. // Copyright 2007 by United Press International


Publication date: 20 September 2007   

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