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Ryan, Ex-Illinois Governor, Convicted of Corruption (Update3)

By Kevin Orland

April 17 (Bloomberg) -- Former Illinois Governor George Ryan, who was nominated for the Nobel Peace Prize for commuting the state's death sentences, was convicted today of charges that he took cash, gifts and trips in exchange for state contracts.

Ryan, 72, was found guilty on all 18 charges against him by a federal court jury in Chicago. Larry Warner, 67, a lobbyist and friend of Ryan, was convicted in the same trial on 12 charges.

Ryan, a Republican from Kankakee, Illinois, was the highest- ranking official targeted in an investigation that resulted in charges against 79 state workers and lobbyists, and convictions of 75. Two defendants are fugitives, one case is pending, and one case was dismissed.

``I hope this case begins the end of the political prostitution that seems to have been evident in the state of Illinois, and begins the resurrection of honest government services,'' Robert Grant, special agent-in-charge of the Chicago office of the FBI, said at a news conference after the verdict.

Ryan faces a maximum of 95 years in prison and $4.5 million in fines on the charges of racketeering conspiracy, mail fraud, false statements and tax fraud. Ryan attorney Dan Webb said he will file motions seeking to overturn the verdict and will file an appeal if the motions fail.

The Federal Bureau of Investigation probe of Ryan, who was Illinois' secretary of state from 1991 through 1999 and governor from 1999 through 2003, began after allegations surfaced that unqualified truck drivers were paying bribes to secure driver licenses. Ryan dropped re-election plans after he was indicted.

``I believe this decision today is not in accordance with the kind of public service that I provided to the people of Illinois,'' Ryan said outside the court, after the verdict.

`Imperfect World'

Webb said in closing arguments in March that Ryan was a ``politician in an imperfect world.'' Throughout the trial, which began Sept. 28, Ryan's lawyers sought to show that Warner, a Chicago businessman, gave Ryan's family gifts because of their longtime friendship, not to influence him.

``Nobody testified in this courtroom that George Ryan got any money, let alone to influence his official acts,'' Webb said.

Prosecutors said lobbyists gave Ryan gifts, cash and vacations to Jamaica and Walt Disney World in Florida. Ryan, in return, forced companies seeking state contracts for computer systems, license plate stickers and other work to pay his friends lobbying fees, prosecutors said. Ryan also was accused in the indictment of having his staff do campaign work on state time.

``This wasn't politics, this wasn't business -- it was crimes,'' Assistant U.S. Attorney Patrick Collins said during closing arguments.

Nobel Prize

Ryan was nominated for the Nobel Peace Prize in 2003 for halting executions in the state after 13 death-row inmates were exonerated. He also pardoned four condemned inmates and commuted the sentences of 157 others.

The verdict ends a tumultuous seven weeks of deliberations during which U.S. District Judge Rebecca Pallmeyer had to remove two jurors for allegedly concealing arrest records. Pallmeyer on March 28 replaced the two jurors with alternates and ordered that all materials used in earlier deliberations be removed.

Pallmeyer, who has been on the federal bench since 1991, said it was the first time she'd ever had to re-seat jurors in a criminal case.

The case is U.S. v. Ryan, 02-CR-506, U.S. District Court for the Northern District of Illinois (Chicago).

To contact the reporter on this story: Kevin Orland in Chicago at korland@bloomberg.net.

Last Updated: April 17, 2006 15:56 EDT

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