From the Daily Herald
The other defendant 
 
By Eric Krol 
Daily Herald Political Writer 
Posted Sunday, September 18, 2005 
 
When George Ryan’s corruption trial begins this week, nearly all of the spotlight will be on the former governor and his fate. 
 
But standing trial alongside him will be Lawrence E. Warner, a man prosecutors allege was Ryan’s partner-in-crime — and who Ryan’s defense team may try to paint as one of the true bad guys. 
 
Few outside political circles probably have heard of the 66-year-old Warner. He’s a wealthy Chicago businessman with interests in dozens of companies, including fire insurance adjustment and construction maintenance firms. 
 
He’s also a longtime friend of and political fund-raiser for Ryan and grew closer after his pal’s election to Illinois secretary of state in 1990, frequently sharing fancy restaurant tables and fine cigars with the man who would go on to become governor. 
 
And, if federal prosecutors are to be believed, he’s the insider who used his nearly unfettered access to Ryan’s secretary of state’s office and its employees to fix contracts for companies he shook down. 
 Lawrence E. Warner, left 
 
Warner faces 12 counts, including charges of racketeering, mail fraud, extortion, money laundering and bank fraud. Prosecutors allege Warner collected $3.1 million from his schemes and gave some of the money to Ryan and former Metra board member Don Udstuen, then of Crystal Lake. 
 
Udstuen, who already has pleaded guilty and wore a wire for authorities, also looms as a key witness. Prosecutors say Udstuen and Warner worked in tandem to steer state contracts to their clients, with Warner getting two-thirds of the proceeds and Udstuen the rest. The indictment alleges Warner told Udstuen that Warner would be “taking care” of Ryan from his share. 
 
Prosecutors also allege Warner fixed several secretary of state office leases for buildings he bought and then concealed an interest in. Former Ryan chief of staff Scott Fawell, who was found guilty and is now cooperating to help his fiancee avoid prison time, could testify on the leases. 
 
Beyond Udstuen and Fawell, executives from several companies Warner did business with can testify. Prosecutors allege Warner tried and failed to shake down a company called Honeywell/Bull for a big-ticket mainframe computer contract then went to work for competitor IBM, which eventually paid him $1 million to secure state work. 
 
Similar testimony is expected from executives at companies that landed contracts for license plate stickers and digital driver’s licenses. Prosecutors say Warner got inside information from Ryan that he used to shake down the companies. 
 
The indictment alleges Warner was reluctant to register as a lobbyist for IBM and never registered as a lobbyist for the digital license company. It’s possible Warner might have avoided some of his current problems by disclosing his lobbying relationship. 
 
In return for Ryan’s help, prosecutors allege, Warner gave Ryan and his family $167,000 in cash and gifts. The indictment alleges that among other things, Warner paid to fix the roof on Ryan’s Kankakee home and wasn’t fully reimbursed, paid for a flood problem one of Ryan’s daughters had, invested in Ryan’s son’s cigar business and brother’s prison monitoring firm and loaned a Ryan son-in-law $5,000. 
 
Given all that potential evidence, one law professor who’s been following the case suggested Warner faces a tough road. 
 
“The case against Warner seems to be stronger than the case against Ryan,” said Richard Kling, a criminal defense attorney and law professor at Chicago-Kent College of Law. 
 
Warner’s high-powered defense attorneys, Edward Genson and Marc W. Martin, have said Warner didn’t make any payoffs and is innocent. Martin did not return a phone call for this report last week. 
 
Prosecutors already have tweaked their case against Warner, whom they first charged in 2002, after a judge ruled that prosecutors couldn’t charge Warner with defrauding the public of honest services because he’s a private citizen.