The thunder of hooves at the Kentucky Derby on Saturday echoed with more than just the cheers of victory for Mark Allen. His thoroughbred, Mine That Bird, a horse with odds of 50-to-1, stunned the racing world with a remarkable come-from-behind win, securing a $2 million purse. However, this triumph was shadowed by the plea deal his father, former Veco chief executive Bill Allen, made with federal prosecutors, a deal that reportedly granted Mark Allen immunity from federal criminal charges.
Bill Allen’s guilty plea in 2007 to charges connected to his central role in the Alaska public corruption scandal was instrumental in this protection for his son. Mine That Bird, purchased by Mark Allen’s Double Eagle Ranch and a neighbor, Leonard Blach, for $400,000, defied expectations. This purchase came after the gelding had initially sold for a mere $9,500 as a yearling.
Prosecutors have not definitively stated whether Mark Allen could have faced charges. However, Bill Allen himself testified that his son allegedly paid off a state legislator. Such a felony conviction could have jeopardized Mark Allen’s license as a racehorse owner under New Mexico law.
A Plea Deal’s Protection
The plea agreement between Bill Allen and the Justice Department mandated his full cooperation with the ongoing investigation in exchange for significant assistance. This cooperation included providing “substantial assistance to the ongoing investigation.” In return, the government agreed “not [to] charge Allen’s son, Mark Allen, or other family members of Allen with any criminal offenses arising out the government’s investigation that have been disclosed to the government.”
Bill Allen’s testimony regarding his son’s alleged payoff to a legislator occurred in October during the trial of former U.S. Senator Ted Stevens. Although the judge had ordered Allen not to name legislators who received Veco or Allen money, he used the pronoun “her” to refer to the legislator Mark Allen allegedly paid. This incident followed the guilty plea of former Rep. Bev Masek in March to conspiracy to commit bribery. The charges detailed that a “relative” of Bill Allen provided Masek with thousands of dollars in cash in April 2003, after she had expressed financial difficulties.
The indictment against Masek stated she accepted the money knowing that Veco and its clients had pending legislative matters important to Allen and Veco’s business interests. Furthermore, two weeks later, Bill Allen himself allegedly bribed Masek with $2,000 to block a bill that would have increased oil taxes.
Bill Allen’s testimony was a crucial factor in the bribery convictions of two former state legislators. He served as the government’s key witness against Stevens, whose defense team argued Allen had a motive to lie to ensure the government upheld its bargain and did not charge Mark.
Business and Horses
Veco Corp. itself has not been charged, though Allen indicated that prosecutors had reserved that option. In 2007, Allen and his three adult children, who owned the majority of Veco stock, sold the company to the international engineering firm CH2M Hill. Sales documents indicated that Mark Allen’s share, prior to taxes, was approximately $30 million.
Last summer, reports surfaced detailing Mark Allen’s extensive horse-buying activities beginning in 2007. He reportedly spent nearly $726,000 on eight horses at the Ruidoso Select Quarter Horse sale in New Mexico. His Double Eagle Ranch paid the highest price for any horse at that event, acquiring a colt for $460,000. Bill Allen testified that his son was not interested in working for Veco, stating, “He didn’t like it… He wanted to get back with his horses.” The family previously owned a horse ranch in Grand Junction, Colorado, before Mark purchased a property in Roswell with his wife, Peggy, with whom he is now divorcing.
An older half-brother of Mine That Bird, So Long Birdie, was initially co-owned by a partnership including Mark and Bill Allen, Senator Stevens, and Bob Persons, owner of the Double Musky restaurant. Persons stated last year that the Allens had subsequently purchased So Long Birdie from the partnership. This horse is currently standing at stud at Blach’s Buena Suerte Equine Clinic, located near the Double Eagle Ranch.
Reluctant Associates
In a July interview, Leonard Blach, who shared the winner’s circle with Allen on Saturday, claimed limited familiarity with Mark Allen, stating, “I see him once in a while… I just don’t know too much about him, to tell the truth about it.” He later told reporters on Saturday that he and Mark Allen have “been friends for years.” Chip Woolley, Mine That Bird’s trainer from Farmington, New Mexico, was also hesitant to discuss Mark Allen in July, advising, “If you got questions about him, you need to call him.”
Mine That Bird was indirectly involved in a peculiar incident during the Stevens trial. After deliberations began, a juror, Marian Hinnant, abruptly left town. Initially claiming her father had died, she later admitted to possessing a ticket to the Breeders’ Cup, a significant thoroughbred race held at Santa Anita Park. Mine That Bird, recently acquired by Allen and Blach, competed in the Breeders’ Cup Juvenile race as a two-year-old, finishing 12th as a 30-to-1 long shot. Hinnant was replaced by an alternate juror, who subsequently blogged about her experience. Stevens’ defense cited Hinnant and the blogger as grounds for a new trial before the case was dismissed due to prosecutorial errors.
