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Former acquaintances of Veco CEO Bill Allen came up yesterday as possible witnesses in Sen. Ted Stevens (R-AK) federal trial. The witnesses, one of whom is an underage woman alleged by some to have had a sexual affair with Bill Allen, are intended to diminish Allen’s credibility as a witness against Stevens. Stevens’ lawyers have also been able to successfully acquire Allen’s medical records in hopes of further undermining Allen’s testimony. (McClatchy/AP)

Over $13 billion dollars from the American government meant for Iraqi reconstruction projects has been wasted or stolen according to a former Iraqi official. The former official told the Senate Democratic Policy Committee yesterday that although a report on the subject was sent to Iraqi Prime Minister Nouri al-Maliki, there was never any follow up. A separate Iraqi agency has estimated that $9 billion has gone missing. (Washington Post)

Political contributions from the financial sector have the potential to shape the final bailout plan, the L.A. Times reports this morning. Gifts from financial companies outstrip donations by other groups, including lobbyists, by nearly a factor of two. In addition to contributions to the presidential candidates — $22.5 million to Obama and $19.6 million to McCain — the industry has given heavily to members on the committees in charge of the legislation. (LA Times)

The government has begun investigations to determine whether or not price-fixing by farmers and food companies may be contributing to rising food costs, the Justice Department said yesterday. Tomato and egg producers are the targets of the current probe, which adds to a list of ongoing inquiries in markets from fertilizer to milk. (WSJournal)

Illinois Gov. Rod Blagojevich has yet to return campaign contributions from a former staffer who has admitted to evading taxes. The second term Democrat said yesterday that he would investigate the whereabouts of $65,000 given to his campaign by Ali Ata. Ata has said that the gifts prompted the governor to offer him a job, an accusation the governor denies. (AP)

The U.S. Department of Defense must release new pictures that document prisoner abuse in Afghanistan and Iraq, the Second U.S. Court of Appeals ruled yesterday. The decision upheld the 2006 resolution of the case, which pitted the DOD against the ACLU and other civil rights groups. The judge sided with civil rights arguments that the 21 pictures, which were taken at numerous locations, were of public interest and that release could prevent further abuse. (Reuters)

Infamous Guantanamo detainee and supposed mastermind of 9/11, Khalid Sheikh Mohammed offered help Monday to a judge at the military base. Mohammed has volunteered to convince one of his co-defendants to leave his prison cell and appear in court. Mohammed and his co-defendants have been held at Guantanamo since being transferred from CIA custody in 2006. (AP)

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