From the Chicago Sun-Times
Lobbying firm pleads guilty in McCormick bid-rigging
Associated Press
Published September 2, 2004, 3:21 PM CDT
One of the state's best-connected lobbying firms pleaded guilty today to mail
fraud in connection with bid rigging in the $800 million expansion of Chicago's
McCormick Place convention center and agreed to pay a $350,000 fine.
Ronan Potts LLC also agreed to forfeit $67,000 in payments it received from
a St. Louis-based company to help land the $11.5 million contract to oversee
the expansion.
Neither of the top managers of the lobbying company, Al Ronan and John Potts,
have been accused of wrongdoing in the case. Ronan is a former state representative
who has been a major fund-raiser for former Gov. George Ryan and other Illinois
politicians.
The plea was entered by attorney James Cutrone on the firm's behalf.
After the hearing, Cutrone said the firm is eager to pay its fine and "get
on with business.''
"They've lost a few clients -- not many,'' he said.
Under an agreement with federal prosecutors, the firm can withdraw its guilty
plea if U.S. District Judge Blanche M. Manning fines it more than the proposed
$350,000.
Under the law, she could go as high as $700,000, but Cutrone said he doubted
that would happen. The firm would be on probation for two years under the agreement.
Four others who prosecutors say were in on various phases of the bid rigging,
including former Ronan Potts vice president Julie Starsiak, also have pleaded
guilty.
Former Ryan chief of staff and campaign manager Scott Fawell has pleaded innocent
and is due to go on trial Sept. 20.
Fawell is serving 61⁄2 years in federal prison for a racketeering conviction
involving the use of taxpayer dollars and state employees to fuel Ryan's election
campaigns for almost a decade.
After Ryan was elected governor, he named Fawell to the $199,999-a-year position
of chief executive of the Metropolitan Pier and Exposition Authority, known
as McPier.
The authority runs McCormick Place and Navy Pier on the city's downtown lakefront.
Prosecutors say that at Fawell's direction, his assistant, Alexandra Coutretsis,
told Starsiak the amounts contained in the sealed bids on the contract to oversee
the expansion. Starsiak admits giving the information to a client, Jacobs Facilities
Inc.
As a result, the St. Louis company was able to cut its bid from $18.8 million
to $11.5 million in a second round of ``best and final'' bids. It won the contract.
Jacobs has been charged with no wrongdoing, although two of its former employees
have pleaded guilty. Prosecutors say both of the former employees are cooperating
in the government's investigation, as are Coutretsis and Starsiak.
No sentencing dates have been set.