From the SJ-R:

Computer firm allegedly 'shaken down' by Ryan pals

By MIKE RAMSEY
COPLEY NEWS SERVICE

Published Thursday, October 27, 2005

CHICAGO - Representatives of a technology firm felt they were being "shaken down" by advisers to Secretary of State George Ryan in 1991 as his office was considering the company's proposal to upgrade its computers, a retired salesman testified Wednesday.

Ed Wuttke said he and another employee from Bull Information Systems met with Don Udstuen and Larry Warner hoping that Ryan would buy a revamped central computer system from the company. He said Udstuen and Warner asked for a $250,000 fee in exchange for their help.

"We felt that we were somewhat being shaken down," Wuttke, of Butler, told jurors in Ryan and Warner's federal racketeering trial. "I felt that we were being asked for money that was certainly not deserved."

Wuttke said he later approached Warner at a political fundraiser for Ryan and pressed him about whether the adviser was confident he could get the computer contract approved.

"He said yes, and the cost was still $250,000," Wuttke testified under questioning from Assistant U.S. Attorney Zachary Fardon.

Warner and Udstuen eventually withdrew their offer, saying the deal would pose a conflict of interest for them, Wuttke said. When asked for a referral, they suggested Springfield lobbyist Ron Swanson, Wuttke said. He said Swanson agreed to help push the contract but requested a firm fee of $750,000.

"He said he would talk to George," Wuttke recalled. "He said 'I'll get a fish sandwich and sit down with George and discuss this.'"

Instead, Bull Information Systems "decided not to do anything" about the proposal, Wuttke said. He said he discussed it with the company's hired lobbyist, Robert Cook of Springfield, who planned to talk to Ryan about the matter.

Bull Information Systems, formerly known as Honeywell Bull, sold the secretary of state's office a mainframe computer system in the mid-1980s, said Wuttke, who was a Springfield-based salesman for the firm. Its offer to upgrade the system came as Ryan took over the public office in 1991; Warner and Udstuen were members of a task force that advised Ryan on the transition.

The Ryan administration did not accept the company's offer, and in the mid-1990s selected its competitor, IBM, to provide a computer mainframe after requesting bids. Warner was a representative for IBM.

The 67-year-old Chicago businessman is charged alongside Ryan in a 22-count indictment. Warner allegedly demanded kickbacks from secretary of state vendors with Ryan's OK, then repaid his longtime friend with trips and other benefits. Charges against Warner include extortion, money laundering and mail fraud.

Ryan, a 71-year-old Kankakee Republican, was secretary of state for two terms and served a single term as governor from 1991 to 2003.

One of Ryan's defense attorneys was expected to continue cross-examining Wuttke today. Lawyer Tim Rooney questioned the accuracy of Wuttke's recollections. Under questioning from Warner attorney Ed Genson, Wuttke conceded he wasn't sure if Warner mentioned the $250,000 fee during his meeting with him at the Ryan fundraiser.

The next government witness, Fardon said, will be Cook, the lobbyist. He is expected to recount his meeting with Ryan about Bull Information Systems.