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Former Ill. governor Ryan indicted

By AL SWANSON

CHICAGO, Dec. 17 (UPI) -- Former Illinois Gov. George H. Ryan was indicted Wednesday by a federal grand jury on 22 racketeering, conspiracy and fraud charges in what the U.S. attorney called a pattern of widespread corruption going back more than 10 years.

"Basically the state of Illinois was for sale for friends and family at times," said U.S. Attorney Patrick Fitzgerald. "I submit that the citizens of this state expect honest government from the secretary of state or the governor. They should expect no less."

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Ryan, 69, who was nominated for the 2003 Nobel Peace Prize for commuting the sentences of 167 prisoners on deathrow before he left office in January, faces charges stemming from his tenure as secretary of state from 1991 to 1999 and as governor from 1999 to 2003. A drivers' license for bribes scandal was a factor in his decision not to seek re-election. Rep. Rod Blagojevich was elected in 2002 as the state's first Democratic governor in 26 years.

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Ryan is accused of racketeering conspiracy, mail fraud, tax fraud and making false statements to FBI agents for accepting illegal cash payments, gifts, vacations and personal services.

The 91-page indictment charges Ryan's close friend, co-defendant Lawrence E. Warner, collected $3 million in payments and kickbacks from state vendors and shared the money with Ryan and another lobbyist.

Ryan was accused of engaging "in a pattern of corruption" that included awarding sweetheart government contracts and leases and using state resources for personal and financial gain for his friends and family members.

His family allegedly received cash, loans and gifts worth $167,000. The indictment charges Ryan funneled more than $300,000 in payments to businessman Donald Udstuen, a co-defendant in the licenses for bribes scandal.

The ex-governor attended the unveiling of his portrait at the state Capitol in Springfield last month. He hired former U.S. Attorney Dan Webb as counsel and is expected to plead not guilty. He faces up to 20 years in prison, $250,000 in fines and could be forced for pay $3 million restitution if convicted.

Ryan's former top aide, Scott Fawell was sentenced to 6 1/2 years in prison for racketeering and fraud in June. Udstuen, a former Illinois State Medical Society executive, pleaded guilty to tax fraud charges and was cooperating with prosecutors. Warner pleaded not guilty earlier.

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Over the years, Ryan has steadfastly denied any involvement in the corruption and is expected to mount a vigorous defense based on his 40 years of public service.

During his campaign for governor in 1998, six children from the Chicago family of the Rev. Scott and Janet Willis died in a Wisconsin highway traffic accident, which led to the investigation of the secretary of state's office.

Ricardo Guzman, the driver of the truck that dropped a part in the roadway that exploded the gas tank of their van, had illegally obtained his commercial license even though he did not speak English. An investigation indicated payoffs had been made to secretary of state's workers and at least $170,000 allegedly funneled to Ryan's campaign.

Since then, 59 secretary of state employees and Ryan confidants have either pleaded guilty or been convicted on charges stemming from the five-year-old "Operation Safe Road" investigation.

Sen. Peter Fitzgerald, R-Ill., said he fought for appointment of an independent U.S. attorney to root out "the culture of corruption that taints this state."

U.S. Attorney Fitzgerald said the indictment came before Christmas because Wednesday was the last day the grand jury was impaneled.

"Ryan is charged with betraying the citizens of Illinois for over a decade on state business both large and small," he said. "It was cronyism, where contracts were given to people acting on inside information."

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