From the Daily Herald

How old friends helped prosecutors make their case
By Eric Krol Daily Herald Political Writer
Posted December 18, 2003
George Ryan was one of the last of the old-school politicians, more
comfortable cutting deals than speechifying at a podium. He also surrounded
himself with a cadre of informal advisers who subscribed to those same
old-school theories.
Ultimately -- if the picture federal prosecutors drew Wednesday proves true
-- the combination of those deals and some of those longtime friends trying
to save their own necks led to Ryan's indictment corruption charges.
"The state of Illinois was taken advantage of by Ryan and his greedy
friends," U.S. Attorney Patrick Fitzgerald said. "And Ryan, it is alleged,
steered some of those greedy friends some of those (illegal) payments."
The heart of the case against Ryan is that he and informal adviser Larry
Warner conspired to fix many of the major contracts in the secretary of
state's office, including those covering the making of license plate
stickers, vehicle title stickers and digital driver's licenses, and
contracts covering office leases and a mainframe computer.
Prosecutors say Warner would shake down the winning companies and share the
proceeds with Ryan and Donald Udstuen, a longtime Ryan adviser and former
Metra board member from Crystal Lake. They also say Warner would pressure
secretary of state managers to do his bidding. Warner has pleaded not
guilty.
Prosecutors also accuse Ryan of a scheme where he set up free vacations in
Jamaica and Palm Springs with developer Harry Klein. They say Ryan would pay
Klein by check and then Klein would reimburse him with cash.
Klein later got a lucrative secretary of state lease for an office building
he owned in South Holland.
Prosecutors say another longtime adviser, former state legislator Arthur
"Ron" Swanson, gave Ryan money and paid for a relative's $2,200 vacation, in
return for inside information on lease and siting of a downstate prison that
he turned into profit.
Now both Udstuen and Klein are cooperating with authorities, and Udstuen's
testimony, given as part of his plea deal earlier this year, likely will be
key to the federal case against Ryan. The new charges against Warner also
could be a way for prosecutors to pressure him into testifying against Ryan.
The indictment is a stinging rebuke to the political career of Ryan, who
rose from Kankakee pharmacist to county board chairman to Illinois House
speaker to secretary of state and governor. Kankakee was dominated by
Republicans, who consolidated their grip on public offices and the attendant
government jobs.
But one former longtime Ryan confidant explained the difference between
Ryan's Kankakee roots and the state deals that are the subject of the
indictment.
"For the Kankakee crowd, it was about power, not wealth," the adviser said.
"What this indictment paints is a relative handful of profiteers who sensed
this was their last, best chance to cash in, with the new generation taking
over."
And their lack of discretion in bullying employees who later cooperated with
investigators, the adviser said, likely helped prosecutors bring their
charges.
"They failed to understand that all the people who they bludgeoned, if push
came to shove, they wouldn't fall on their swords," the adviser said.
Prosecutor Fitzgerald was clear that old-school politics are no longer a
viable option for Illinois politicians.
"Clearly, when there's a hidden personal interest of friends and family
involved that corrupts the contracting process," Fitzgerald said, "that
can't be tolerated."
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