Former Ryan aide pleads not guilty

Former Ryan aide pleads not guilty

By Matt O’Connor
Tribune staff reporter
Published April 9, 2002, 1:18 PM CDT

Scott Fawell -- once a rising star in the Illinois Republican Party -- and a lawyer for Gov. George Ryan’s campaign fund today entered pleas of not guilty in federal court, where Fawell and the fund face charges in an alleged corruption scheme involving the secretary of state’s office.

During a hearing this morning in downtown Chicago, a subdued Fawell, 44, said just five words to U.S. District Judge Rebecca Pallmeyer: “Yes, I do,” when asked if he understood the charges against him, and “Not guilty,” when asked how he pleaded.

A federal indictment unveiled April 2 accused Fawell, Citizens for Ryan and a former Fawell aide, Richard Juliano, of wrongdoing uncovered by the federal Operation Safe Road probe.

Attorney Mark Flessner also entered a not guilty plea on behalf of the campaign fund.

Juliano, 35, did not appear in court today. Prosecutors said he is cooperating with the investigation. They said that he has agreed to plead guilty to a single count of mail fraud, and that he is expected to do so Monday.

At today’s court hearing, prosecutors raised the possibility of conflicts of interest arising from Flessner’s representation of Citizens for Ryan. His law firm, Altheimer & Gray, has represented other people connected to the investigation as well as the secretary of state’s office, which is identified as a victim in the indictment, said Assistant U.S. Atty. Patrick Collins.

Collins also asked how the government could be sure Citizens for Ryan would have the money to pay the forfeiture sought by prosecutors.

The government seeks to recover at least $1 million in alleged ill-gotten proceeds, and the fund could be fined an additional $1.5 million if convicted.

According to state records, Citizens for Ryan had $2.3 million at the end of 2001.

Pallmeyer set a briefing schedule for lawyers from both sides to file paperwork and set a May 9 court hearing to rule on issues raised by the government. She also set a tentative trial date of Oct. 28.

Last week’s indictment accused Fawell, chairman of Ryan’s 1998 gubernatorial campaign and chief executive of the Metropolitan Pier and Exposition Authority, of diverting state employees to work on numerous campaigns on state time, shredding garbage bags full of campaign records and thwarting an internal investigation of wrongdoing, among other allegations.