During Stevens’s criminal trial, the Justice Department on Monday played three phone calls between Stevens and Allen that were recorded as the senator became aware that the government was investigating gifts that are now at the center of his criminal trial.

Stevens maintained his innocence to Allen, but added that “the appearance of what we’re doing leads them to this conclusion.”

The senator also told Allen, his friend of some 25 years, that he didn’t want to create the appearance that the two men were conspiring or obstructing justice, saying they should “sweat out this grand jury” investigation.

Stevens has pleaded not guilty to seven felony charges of failing to report more than $250,000 in gifts and home renovations from Allen, the former head of the now-defunct oil-services firm Veco Corp., and other long-time associates.

In August 2006, the FBI confronted Allen over suspicions that he bribed state legislators and gave Stevens gifts that he refused to disclose to the public. Allen agreed to cooperate with the FBI, which monitored the oil executive's conversations with Stevens.

At one point, Stevens seemed aware that the FBI may have been eavesdropping.

“I think they may be listening to this conversation,” Stevens said.

“Well, they’re not supposed to be,” Allen responded.

The day after he was confronted by the FBI, Allen informed Stevens that the government was investigating the renovations to the house, which included two brand new decks, a power generator, new electrical wiring, an additional ground-level floor, new furniture and new roofing. Stevens says he paid $160,000 for the renovations, which he believed covered all costs. The government says he knowingly refused to pay an additional $188,000 tab.

“They asked me what I’d done on the house, I said, ‘Well, he paid for everything,’” Allen told Stevens on a telephone call.

Stevens, sounding resigned, said he would tell his wife Catherine about the FBI’s interest.

“I’ll talk to Catherine about it now,” Stevens said.

About two weeks later, Stevens told Allen that he was losing sleep over the matter.

“I’m not really getting much sleep thinking about all this [expletive],” Stevens said.

Calling Allen “one of his greatest friends,” Stevens told Allen he was “entitled” to spend his money however he wants to.

“I don’t know what these [expletive] are going to do,” Stevens said. “You have the money and you are entitled to spend it as long as you spend it legally and I think you spent it legally.”

In the October 2006 phone call, when a grand jury was investigating the gifts, Stevens told Allen not to go into hiding over the accusations and to maintain his reputation in the community.

“Ted, I love you, you know,” Allen said.

“Let’s get through this and get back to our boot camps again,” Stevens said, referring to their regular vacations together in Arizona and California.

Allen is expected to be cross-examined Monday.