By MIKE RAMSEY
COPLEY NEWS SERVICE
CHICAGO — A smiling, seemingly confident Scott Fawell pleaded innocent Tuesday to federal charges that he had engaged in corruption while serving as Gov. George Ryan’s top aide when Ryan was secretary of state in the 1990s.
Meanwhile, attorneys representing Ryan’s campaign fund argued with prosecutors over how much money should be set aside to cover the possibility that the account will be found guilty of fraud and subject to forfeiture.
Like Fawell, the lawyers entered a plea of innocent on behalf of Citizens for George Ryan during an arraignment hearing at Chicago’s federal courthouse.
The 44-year-old Fawell, who’s on paid leave from his current job running the agency that oversees Navy Pier and McCormick Place, arrived early and appeared at ease as he chatted with defense attorneys.
His remarks in court were limited to entering his plea and telling Judge Rebecca Pallmeyer that he understood the charges against him and his legal options.
An 80-page grand-jury indictment issued last week accuses Fawell of orchestrating several illegal schemes between 1992 and 1999, when he served as Ryan’s chief of staff and ran his 1998 campaign for governor. Fawell’s activities allegedly include directing Ryan employees to work on GOP campaigns, selling highly sought license plates and quashing internal investigations.
He faces multiple charges, including racketeering, theft of government funds and conspiracy to obstruct justice, plus the prospect of serving prison time and paying hefty fines. He’s free on a $4,500 unsecured bond.
Defense attorneys will need months to prepare for the case, Fawell’s legal counsel, Ed Genson of Chicago, told the judge. He anticipated being ready for a four-to eight-week trial by late October at the earliest.
"This is an awfully complicated case. It’s a four-year grand-jury
investigation," Genson said.
Genson also was the attorney for Dean Bauer, Ryan’s inspector general in the secretary of state’s office, who is so far the highest-ranking official convicted in the ongoing "Operation Safe Road" probe. He is serving a one-year prison term after pleading guilty to obstructing justice.
Fawell is the top official indicted to date in the investigation. Ryan has not been charged with wrongdoing, but last week’s inclusion of his campaign committee in the 10-count federal indictment has been devastating to his already-damaged reputation.
Federal prosecutors seek a minimum of $1 million from the fund that they say came from illegal means. Their request that directors freeze the account, or at least $1 million of it, was challenged by attorneys representing Citizens for George Ryan, who want the government to explain its calculations.
"There has to be some basis for the calculation, and we see none," attorney Mark Flessner told the judge.
Pallmeyer directed both sides to reach an agreement, or she’ll decide the issue at the next court hearing, May 9. She’ll also be expected to consider a request from federal prosecutors that Flessner’s law firm, Altheimer & Gray, be removed from the case for conflict-of-interest reasons.
Altheimer & Gray represented several witnesses subpoenaed in "Operation Safe Road," and firm member Jeremy Margolis, a Ryan confidant, represented the secretary of state’s office in the investigation.
The prosecution of Citizens for George Ryan, a fund believed to hold more than $2 million, is a nearly unprecedented move by newly appointed U.S. Attorney Patrick Fitzgerald, who inherited "Operation Safe Road" from his predecessor.
Flessner declined to identify the officers of the campaign committee or technically who his employers are.
"I know where you want me to go, and I’m not going there," he said.
A third defendant named in last week’s indictment, Richard Juliano, will be arraigned on Monday. The 35-year-old former assistant to Fawell is cooperating with authorities and is expected to plead guilty to a single count of mail fraud.
Fitzgerald said the corruption investigation continues.
Mike Ramsey can be reached at (312) 857-2323 or cnsramsey@aol.com.