From the Chicago Sun-Times

Lobbying group fined for McCormick bid scheme
12/01/2004

BY NATASHA KORECKI AND DAVE MCKINNEY Staff Reporters
A politically connected lobbying firm run by a former state lawmaker was hit with a $350,000 fine Tuesday and ordered to immediately forfeit another $67,000 after admitting to a bid-rigging scheme involving McCormick Place convention center. Ronan Potts L.L.C. is run by former state representative Al Ronan and John Potts. Neither is charged in any wrongdoing. The firm -- a contributor to political campaigns including $12,900 of cash and in-kind contributions to Gov. Blagojevich, pleaded guilty in September to taking part in a scheme to rig a consulting contract awarded in 2001 to oversee an $800 million expansion at McCormick Place. Employee cooperating Federal prosecutors say Scott Fawell, who oversaw the convention center, used his fiancee, Andrea Coutretsis, to leak the competing bid amounts to Jacobs Facilities Inc., a client of Ronan Potts. Ronan Potts attorney James Cutrone on Tuesday called the conviction "an embarrassment" and pegged the blame on employee Julie Starsiak, saying she passed information onto Jacobs without the knowledge of others at Ronan Potts. Starsiak pleaded guilty in February to lying to authorities but is now cooperating with the feds. Patrick Collins, who is prosecuting the case with assistant U.S. attorneys Scott Levine and Gayle Littleton, said in court Tuesday the charge was about "Ronan Potts as an entity." Fawell connection Court documents also indicate Fawell is friends with Ronan, referred to only as "Fawell Associate 1," who they say was involved in the bid-rigging scheme. Before the firm won the contract, Ronan took Fawell golfing and paid for various events and trips, prosecutors allege. Ronan allegedly told Fawell to use Starsiak as the main contact in the firm. Fawell later pleaded guilty to the bid-rigging. Collins told U.S. District Judge Blanche Manning that a steady stream of information flowed to Jacobs, allowing it to lower its bid from $18.8 million to $11.5 million. "In this case, the fix was in," Collins said. "Jacobs was able to know the inner-workings of McPier every step of the way." The conviction means Ronan Potts would not be eligible to bid on state contracts for five years after completion of its sentence. The charges alone have apparently hurt the firm's business. Since last year's indictment, Ronan Potts' clientele has dropped in half, from 64 listed in March 2003 to 32 listed today, according to the Illinois Secretary of State's office. --