News
May 2002
BONUS
WEB COVERAGE
Scandal by the number
Click here to view a .pdf file of the Warner indictment.
Federal
investigators continue to roll out indictments in their ongoing
probe of corruption in the secretary of states office during
now- Gov. George Ryans tenure.
Most
recently, three men were charged with taking bribes in exchange
for truck driving licenses. Frank Catanzarite Jr. of Palos Hills
and John Nowak of Berwyn were employees of Watkins Motor Lines
Inc. when, between 1997 and 1999, they allegedly took bribes of
$500 to $2,000 to put unqualified drivers on the road. Also indicted
was Peter Gregus, of Miami, Fla, who is charged with helping approximately
100 unqualified applicants, many of them Illinoisans, get truck
driving licenses in Florida. According to the May 21 indictment,
the men acted without the trucking companys knowledge.
In
separate indictments, federal authorities charged Lawrence Warner
with rigging bids and accepting kickbacks for secretary of state
contracts for such goods and services as vehicle registration
validation stickers, computer systems and building leases.
Warner,
a friend of the governor, held no position in the secretary of
states office. Yet, according to the indictment, from January
1991 through January 1999, he attended office meetings and directed
secretary of state personnel regarding agency operations.
Authorities
say that between 1991 and 1998, Warner took in approximately $332,000
in personal profits from the sticker contract. They also allege
that he used his influence within the department to rewrite bid
specifications to ensure that the company he was extorting would
retain the contract.
Prosecutors
say that Warner used similar tactics with other vendors and steered
lease contracts toward properties in which he had a financial
interest.
According
to investigators, Donald Udstuen, a former lobbyist for the Illinois
State Medical Society shared in Warners profits and Alan
Drazek, owner of American Management Resources, laundered payments
to Udstuen.
Prosecutors
allege that the schemes brought in $2.8 million dollars in payments
from 1991 through 2002, and that as recently as April Drazek and
Udstuen met to discuss falsifying tax documents.
Udstuen
is cooperating with the investigation and is expected to plead
guilty to tax fraud conspiracy.
Ryan,
who is not named in the indictment and has not been charged with
wrongdoing, defended Warner and Udstuen saying, Ive
known [them] for 35 years. Theyre friends, no question about
it. And that would be all the more reason that Id be outraged
if I thought they were guilty of these charges.
The
investigation, dubbed Operation Safe Road, has been under way
for four years.