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Not Guilty Plea From Ex-Illinois Governor

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Times Staff Writer

Former Illinois Gov. George Ryan pleaded not guilty Tuesday to charges of racketeering conspiracy, as well as an extensive list of corruption counts that included taking gifts and money in exchange for granting government contracts.

A few hours after the federal arraignment hearing, defense attorney Dan Webb announced that the retired politician planned to testify on his own behalf.

Ryan also is accused of mail fraud, tax fraud, filing false tax returns and making false statements to agents investigating corruption in his administration. If convicted, the 69-year-old Republican could face a maximum sentence of nearly a century in prison and $4.5 million in fines.

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“I have spent more than three decades in service to the people of Illinois,” Ryan said at a news conference in his attorneys’ offices. “I have tried my best to be faithful to that service, and to earn the trust and support of the voters who elected me.... I would not dishonor that trust by the kind of conduct the government has alleged.”

Federal prosecutors charge that from 1990 to 2002 -- when Ryan served as secretary of state and governor -- he and his family accepted at least $167,000 worth of gifts, vacations, cash and other bribes. Officials declined to state how much allegedly went to Ryan personally.

In exchange for the payoffs, prosecutors allege, the politician doled out millions of dollars worth of state business and lucrative contracts to friends and associates. Ryan also allegedly gave associates insider information about impending deals and ignored state employees’ concerns and complaints about such matters.

Standing before U.S. District Judge Rebecca Pallmeyer, Ryan looked grim as he said “I do” to the judge when asked whether he understood the charges.

“I am absolutely not guilty of these charges,” Ryan said later. “I’m not going to give up. I am going to fight.”

In addition to prison time and financial penalties, federal prosecutors are seeking $3.1 million in total forfeiture from Ryan and Chicago businessman Lawrence E. Warner.

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A friend of the former governor, Warner initially was indicted in May 2002.

He is accused of using his political ties to coerce bribes from companies seeking contracts from the secretary of state’s office under Ryan. Last week’s indictment against Ryan tacked on two mail fraud counts against Warner.

On Tuesday, federal prosecutors pushed for the men to be tried together, saying that the case revolved around “the Warner-Ryan relationship.”

Warner’s attorney, Ed Genson, charged that by trying his client with Ryan, his right to a speedy trial would be jeopardized. Webb insisted that he needed as long as 15 months to prepare a defense for Ryan.

Although Pallmeyer said she would prefer not to separate the cases, she declined to rule on the matter. The judge asked the prosecution and defense attorneys to file written briefs; she set a status hearing for Jan. 16.

The case is the latest chapter in a nearly six-year federal investigation of political corruption during Ryan’s time as secretary of state and governor. The investigation, which initially examined allegations of bribes paid for driver’s licenses, was sparked after an unqualified trucker was involved in an accident that killed six children.

Ryan declined to answer questions Tuesday, but his attorney explained that the defense would show jurors that the former governor was essentially broke -- and therefore did not have the illicit funds he was accused of accumulating.

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“George Ryan is a man today that lives upon a pension and Social Security payments.... He lives from month to month to make ends meet,” Webb said. “He has no assets, no stocks, no bonds.... That is not the financial picture of a person who has engaged in the conduct the government has alleged in its case.”

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