From The Chicago Sun-Times:

Ryan friend quits posts amid corruption probe

May 1, 2002

BY TIM NOVAK, ROBERT C. HERGUTH AND DAVE MCKINNEY STAFF REPORTERS

Donald Udstuen, a close friend of Gov. Ryan and others who are embroiled in a federal corruption investigation, abruptly resigned Tuesday from two clout-heavy jobs he has held for decades.

Udstuen stepped down as chief operating officer and head lobbyist for the Illinois State Medical Society, the powerful doctors group he has represented for 28 years, a source in the organization said.

Udstuen also resigned from Metra's board of directors, on which he has served since the Chicago commuter rail agency was created in the mid-1980s.

"We received a letter from him telling us around 4 p.m.,'' Metra spokesman Frank Malone said. "The letter gave no reason for his resignation.''

Udstuen, 58, of Crystal Lake was patronage director under former Gov. Richard Ogilvie. Udstuen is among the most powerful lobbyists in Springfield, where the medical society generously donates money, primarily to Republican candidates.

Udstuen could not be reached for comment.

Besides maintaining a close friendship with the governor, Udstuen is close to Roger Stanley, a former state legislator whose businesses have come under scrutiny by federal investigators probing corruption under Ryan when he was secretary of state.

A few weeks ago, federal officials subpoenaed Stanley's contracts with Metra. The contracts, which were signed by Udstuen and other Metra board members, were worth more than $2.7 million. That includes at least $313,000 paid to Harstan Enterprises, a company owned by Stanley's wife, Elizabeth, helping Stanley's firms meet Metra's requirements for giving work to minorities.

Stanley, Udstuen and Ryan have not been charged in the investigation that has brought racketeering charges against Ryan's campaign fund and his former campaign manager, Scott R. Fawell. Ryan's former deputy campaign manager Richard A. Juliano has pleaded guilty to mail fraud, admitting he helped Fawell divert state employees and other resources to work on Ryan's 1998 campaign for governor.

Stanley owns Universal Statistical Inc., also known as Unistat, a direct mail firm that has worked for numerous Republican officials and several government agencies, including the CTA and Metra. Stanley also had a contract for a direct mail campaign in connection with the organ donation program under Ryan.

Stanley, according to the federal indictment of Fawell, gave Fawell free vacations and provided him with prostitutes in Costa Rica. Fawell allegedly helped Stanley get a no-show job in the secretary of state's office to boost his legislative pension.