I am enclosing the documents you requested in your subpoena dated December 3, 1990. To the best of my knowledge, this. represents everything I have within my possession related to the items described in Attachment A to your subpoena. I do have 3 years worth of Christmas cards from Senator Riegle which I could attempt to locate and send to you should you deem it necessary. I am still awaiting official notice from you as to exactly when I should be in Washington D.C. I would appreciate knowing that as soon as possible so that I can make the necessary arrangements. Sincerely, David E. Stevens SPECIAL COUNSEL EX. 582 AFFIDAVIT OF DAVID E. STEVENS I, David E. Stevens, being duly sworn, do hereby depose and state as follows: 1. I was the Tax Director of American Continental and Lincein Savings during the period of September 1986 to June 1990. 2. Earlier this year I was interviewed by Mr. Bruce Penczek of the investigative firm of Twardowicz, Penczek and Associates, Inc., in which I answered questions he had and offered to provide any additional assistance that they might want. Mr. Penczek was working for Robert Bennett, the Special Counsel to the Ethics Committee. 3. On October 26, 1990, I mailed the attached letter to Senator Howell Heflin at the United States Senate with copies to Senator Warren Rudman and Robert Bennett, Special Counsel to the Ethics Committee. 4. Every statement in said letter is true to the best of my knowledge, information, and belief. I have not heard from Robert Bennett, the Special Counsel to the Ethics Committee, or from any attorney, investigator, or other employee on his staff to this date concerning my letter or any other matter since my initial interview with Bruce Penczek. I have made a change removing Lincoln Savings from the original complaint and adding item #2. Would you please sign the affidavit again before a Notary Public and return to us by Federal Express. Our Federal Express number is 1051-1502.-4. Thanks. GK/J Enclosure SPECIAL COUNSEL AFFIDAVIT OF DAVID E. STEVENS I, David E. Stevens, being duly sworn, do hereby depose and state as follows: 1. I was the Tax Director of American Continental during the period of September 1986 to June 1990. 2. As the Tax Director of ACC, I was responsible for IRS audits, including the 1984-1985 audit of American Continental Corporation. 3. Earlier this year I was interviewed by Mr. Bruce Penczek of the investigative firm of Twardowicz, Penczek and Associates, Inc., in which I answered questions, he had and offered to provide any additional assistance that they might want. Mr. Penczek was working for Robert Bennett, the Special Counsel to the Ethics Committee. 4. On October 26, 1990, I mailed the attached letter to Senator Howell Heflin at the United States Senate with copies to Senator Warren Rudman and Robert Bennett, Special Counsel to the Ethics Committee. 5. Every statement in said letter is true to the best of my knowledge, information, and belief. I have not heard from Robert Bennett, the Special Counsel to the Ethics Committee, or from any attorney, investigator, or other employee on his staff to this date concerning my letter or any other matter since my initial interview with Bruce Penczek. David E. Stevens 4420 N. Creswell Pl. Boise, Idaho 83704-2476 October 26, 1990 Honorable Senator Howell Heflin United States Senate Washington, D.C. 20510 Dear Senator Heflin: I am the former Tax Director of American Continental and Lincoln Savings. In this position, I became aware of some of the activities of the so-called "Keating 5." Earlier this year, I met with Mr. Bruce Penczek of the investigative firm of Twardowicz, Penczek and Associates, Inc. In that meeting, I answered questions they had and offered to provide any additional assistance that they might want. To date, there has been no request for such assistance. I am writing to make sure that you have access to all of the relevant facts pertaining to the airplane flights taken by Senator McCain and his family on ACC Corporate aircraft. These facts are sometimes contrary to the public statements which have been made by Senator McCain. In expressing these concerns, I feel it appropriate to point out that I harbor no personal ill feelings for Senator McCain or his staff. Once I established contact with his office, I was treated with courtesy and respect. I just feel that the information I have should be considered in your decision. As the Tax Director of ACC, I was responsible for IRS audits. During the course of the 1984-1985 audit of ACC, the subject of airplane flights taken by Senator McCain and his family came up. The IRS proposed to and ultimately did disallow a portion of the deductions ACC took with respect to those flights. Furthermore, they proposed to charge Mr. Keating with income for the flights. Neither of these actions would have been taken had Senator McCain reimbursed ACC when the flights were taken or, possibly, at the time of the audit (early 1989 prior to ACC's Bankruptcy filing). I didn't feel it appropriate that Mr. Keating be charged with the income attributable to the McCains' flights personally. ACC's policy was to charge the income to the individuals who took the flights (unless those individuals reimbursed the corporation). Accordingly, a decision was reached to contact the Senator's office to get their input as to how to deal with the situation. After struggling for awhile to determine the appropriate way to contact the Senator (I had no contact with him or his office prior to that time), I contacted Jay Smith, who I understood was a political |