Ryan lawyers fight freeze on campaign funds

From The Chicago Tribune:

Ryan lawyers fight freeze on campaign funds

By Rudolph Bush
Tribune staff reporter
Published June 18, 2002

Attorneys for Gov. George Ryan's beleaguered campaign committee Monday argued that Citizens for Ryan should not be required to set aside $1 million that could go to the state if the committee is convicted, because such a ruling would leave the committee with no money to defend itself.

The campaign committee has only $811,000 left in cash accounts, $200,000 in escrow and $500,000 on retainer with the committee's law firm, Altheimer & Gray, according to the motion.

"The $1 million restraint sought by the government would, absolutely, preclude [Citizens for Ryan] from retaining constitutionally effective counsel for trial," the motion stated.

The committee, as well as top Ryan aides Scott Fawell and Richard Juliano, were indicted in April for allegedly diverting resources and employees from the secretary of state's office to Ryan's 1998 gubernatorial campaign.

After learning the committee has spent $330,000 in legal fees since April, Assistant U.S. Atty. Patrick Collins requested Thursday that $1 million be set aside so funds would be available to pay restitution in the event of a conviction.

U.S. District Court Judge Rebecca Pallmeyer indicated she likely would grant the prosecution's request. She may rule on the issue later this week.

But attorneys for Citizens for Ryan have requested Pallmeyer not rule before hearing arguments that the committee's 6th Amendment right to counsel could be violated.

"The government's attempt to freeze CFR's assets ... is a cynical effort to undermine [its] ability to find counsel at all," the motion stated.

Under the 6th Amendment, an individual could receive a court-appointed attorney, but Citizens for Ryan's attorneys believe the committee would not be allowed free representation.

Collins has said the government is concerned with receiving full restitution for the state and not with the campaign's ability to defend itself.

The issue is complicated by Pallmeyer's June 10 ruling that the committee's law firm, Altheimer & Gray, cannot represent it because the firm also represents Fawell.

Altheimer & Gray has until June 27 to bring in another legal team.

In a separate filing Monday, prosecutors denied they had agreed to allow Altheimer & Gray to draw on the committee funds for legal fees. First Assistant U.S Atty. Gary Shapiro argued Jeremy Margolis, a confidant of Ryan's and a partner at Altheimer & Gray, misrepresented, in court a conversation Shapiro and Margolis had in April.

"The United States [disputes] that any such agreement existed," Shapiro stated.

Robert M. Andalman, an attorney with Altheimer & Gray, said he had not had an opportunity to review the government's filing Monday and had no comment.