From the Tribune 
 
Prosecutors tell of Ryan spending 
He allegedly gave hundreds of bucks 
 
By Matt O'Connor 
Tribune staff reporter 
Published September 16, 2005 
 
 George Ryan was occasionally short of cash as lieutenant governor, but after he was elected secretary of state, he carried wads of cash and handed out hundreds of dollars at a time, prosecutors said in a court filing made public Thursday. 
 
 Yet from 1993 through 2002, Ryan and his wife never used an automated teller machine, and they withdrew cash from their bank accounts just seven times for a total of about $6,700, according to the government. 
 
 The filing came in a response to a defense motion seeking to bar prosecutors from commenting at trial on the frequency or size of Ryan's cash withdrawals. 
 
 But "cash is a recurring, relevant issue in this case," prosecutors contended. 
 
 The charges against Ryan allege he pocketed cash kickbacks, as well as gifts and vacations, in return for steering state contracts and leases to friends. Jury selection is set to begin Monday in the trial of Ryan and businessman Lawrence Warner, a friend who's alleged to have pocketed about $3 million in the scheme. Both have pleaded not guilty. 
 
 In the filing, the government said a member of Ryan's security detail who was with Ryan daily when he was lieutenant governor would testify Ryan didn't carry much money and was occasionally short of cash. 
 
 But after Ryan became secretary of state, he routinely carried wads of cash "of considerable thickness" and often dispensed hundreds of dollars at a time, Ryan's companions, friends and family will testify, according to prosecutors. 
 
 According to the government, Ryan placed bets of several hundred dollars during frequent visits to casinos, made frequent cash gifts to his children and others, generously tipped at restaurants and made cash purchases. 
 
 The defense had argued that Ryan had legitimate cash sources that the government hadn't accounted for, including cash-back checks at groceries, checks from his campaign committee for reimbursement of campaign expenditures and Social Security checks. 
 
 "Ryan's claims that his cash came from legitimate sources are factually tenuous, as the government's evidence at trial will show," the government filing said. 
 
 To prove charges that Ryan filed false tax returns, prosecutors said, they will present evidence that the former governor failed to report specific items of income that were taxable to him. 
 
 As an example, the government cited campaign funds that Ryan converted for his personal use when he gave the funds to family members and friends as personal gifts. 
 
 Among the beneficiaries was Ryan's son-in-law, Michael Fairman, who was given $55,000 in campaign funds at a time of financial difficulties, the government said. 
 
 "Hiding his decision to give the funds to his family, Ryan caused these payments to be mischaracterized as compensation for campaign consulting work, even though Fairman never consulted on Ryan's campaign, or on any campaign, in his life," the government said. 
 
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