Longtime Gov. Ryan friend indicted

From The Chicago Tribune:

Longtime Gov. Ryan friend indicted

By MIKE ROBINSON
Associated Press Writer
Published May 21, 2002, 2:21 PM CDT

A longtime political adviser to Gov. George Ryan was indicted today on
charges of using his influence over leases and contracts in the secretary of
state¹s office to reap $2.8 million in profits, and sharing the proceeds
with a powerful lobbyist.

Ryan friend and adviser Lawrence E. Warner was indicted along with Donald
Udstuen, the former chief lobbyist for the Illinois State Medical Society.
Also indicted was Alan A. Drazek, a Republican businessman who also sits on
the Chicago Transit Authority¹s board.

The indictments are the latest charges in Operation Safe Road, the federal
government¹s four-year investigation of corruption in the secretary of
state¹s office under Ryan and in the governor¹s campaign. More than 40
people have been convicted in the investigation.

Ryan has not been charged with any wrongdoing.

Drazek, 61, of Morton Grove, a former director of personnel in the
administration of the late Gov. Richard B. Ogilvie, was accused of helping
to disguise illegal payments from Warner to Udstuen and keeping a portion
for himself.

Warner, 64, of Chicago, is a longtime member of what Ryan aides describe as
the governor¹s ``kitchen Cabinet.¹¹ He was charged with five counts of mail
fraud, two counts of money laundering and one count each of racketeering,
extortion and illegally structuring monetary transactions

Udstuen, 58, of Crystal Lake, has long been one of the most powerful
lobbyists in the state. Prosecutors said he is cooperating in the
investigation and will plead county to tax fraud conspiracy.

The indictment asks the court to order Warner to forfeit $2.8 million along
with his ownership interest in companies that own Joliet and Bellwood
buildings leased by the secretary of state¹s office.

The Joliet building became controversial when it was discovered that the
state would pay more than $2 million in rent < 10 times the amount of the
initial investment in the building.

The indictment also asks forfeiture by Warner of his shares in a company
that licenses digital technology.

``The indictment alleges that Larry Warner fixed the process by which
certain contracts and leases were awarded by the secretary of state¹s office
for his own profit and the profit of others,¹¹ U.S. Attorney Patrick
Fitzgerald said.

Fitzgerald said that at the same time that Warner ``was fixing the process
for certain contracts, he extorted money from a company doing business with
the state.¹¹

Shortly after Ryan was elected governor in 1998, he named Warner to the
governing board of the Metropolitan Pier and Exposition Authority, which
runs McCormick Place and Navy Pier.

Warner also is a director of North Community Bank, Chicago. Earlier this
year, a federal grand jury subpoenaed bank records as part of an
investigation into a disclosure by Ryan¹s campaign committee that it had
discovered $156,000 in excess funds in its account there.

Warner is the latest Ryan associate to face federal charges. On April 2,
Scott Fawell, a former top aide and campaign manager for Ryan; Richard
Juliano, an ex-aide to Fawell, and the Citizens for Ryan campaign committee
were named in a 10-count indictment that alleged widespread corruption in
the secretary of state¹s office.

The allegations included licenses for bribes, a cover-up of internal
investigations into wrongdoing and the use of public employees in Ryan¹s
election campaign. Specific charges included racketeering, theft of
government funds, conspiracy to obstruct justice, perjury, mail fraud and
filing false tax returns.

Tribune staff reports contributed to this story.