From the Sun-Times:

Ex-Ryan aide: At least 1 contract was legit

November 16, 2005

BY NATASHA KORECKI Federal Courts Reporter

A onetime top aide to former Secretary of State George Ryan said Tuesday a company with ties to lobbyist Lawrence Warner was the most qualified -- at least at one time -- for the big-money contract it won under Ryan.

James Covert, former Vehicle Services Department director in the secretary of state's office, acknowledged to defense attorneys that American Decal Manufacturing in 1991 was superior to other bidders contending for a $1 million annual license plate sticker contract.

The defense in Ryan's public corruption trial was trying to soften Covert's testimony that Ryan at one point intervened in handing out the contract to grease the way for ADM and thus, benefit Warner. The defense tried to show the secretary of state's office had a long-standing, legitimate relationship with ADM.

Under an extensive cross-examination by Warner attorney Ed Genson and then by Ryan attorney Bradley Lerman, Covert acknowledged that ADM first won the contract under Jim Edgar, Ryan's predecessor as secretary of state.

Lerman asked if ADM was the best company and whether another competitor's bid was "objectively not up to snuff."

"That's correct," Covert said.

But prosecutors say by 1993 other competitors should have gotten a shot at the sticker contract after a committee recommended taking out a requirement that previously ensured ADM won the bid. Covert said Warner called him about this change then angrily said he'd take care of it himself. Ryan then called Covert and told him to quietly put back in that same requirement, he said. Covert did and ADM kept the contract, he testified.

Covert told prosecutors that Ryan told him to stay away from 3M, an ADM competitor. But in cross-examination, he noted that 3M still won a license plate contract -- the largest the secretary of state's office bid every year.

Aide says he feared losing job

The defense pressed Covert on why he never challenged Warner on allegedly asking for non-public information on contracts or never asking Ryan what authority Ryan gave Warner in the office. Covert said he was afraid of losing his job.

But Genson noted Covert's father was politically connected, a friend of Ryan's who had helped Covert get his job in the first place. Mocking Covert for saying he was afraid to stand up to Warner, Genson said Covert, who once carried a gun as a police officer, could take Warner "with one hand behind your back."

"Hey!" Warner protested.

Also on Tuesday, after jurors were dismissed, U.S. District Judge Rebecca Pallmeyer rejected the defense's motion to bar testimony from former U.S. Senator and presidential candidate Phil Gramm. Assistant U.S. Attorney Patrick Collins said Gramm's testimony is key to several schemes in the 22-count indictment against Ryan. Collins said the 1995 press conference Ryan held to endorse Gramm amounted to an "infomercial" because Ryan allegedly got money from the Gramm campaign without Gramm knowing.

"It is a big deal when you stand up and endorse somebody, and you don't tell anybody you're getting $10,000 for your endorsement," Collins said.

Former Ryan deputy campaign manager Richard Juliano has testified that after Ryan agreed to help Gramm in his presidential campaign in Illinois, Ryan told Juliano to place in the campaign budget a consulting line item so Ryan and others could "make some money."

HIGHLIGHTS

DEFENSE: James Covert, onetime George Ryan aide, says American Decal Manufacturing, which has ties to lobbyist Lawrence Warner, was qualified to win $1 million contract. Defense tries unsuccessfully to bar future testimony from former U.S. Sen. Phil Gramm.

PROSECUTION: Covert maintains Ryan told him to change a bidding requirement, which helped ADM. Prosecution says Gramm's testimony is key to mail fraud, racketeering and false statement charges against Ryan.

UP NEXT: Former ADM President James Motter takes stand today.