from the Tribune:
Report details defense fund
More than $369,000 has been spent so far
By Rudolph Bush, Tribune staff reporter. Tribune staff reporter Matt O'Connor
contributed to this report
Published October 5, 2005
The legal defense fund for George Ryan had spent more than $369,000, leaving
it with a balance of $104,000 when it filed its first and only asset report two
weeks before the former governor went on trial.
The report, received by Atty. Gen. Lisa Madigan's office on Sept. 13, offers
a rare glimpse into the condition of Ryan's defense fund, which he once promised
to fully disclose to the public but which has been shrouded in secrecy.
Ryan and Lawrence Warner, his friend and a businessman, are on trial in
federal court on racketeering and fraud charges.
Ryan's lead attorney, Dan Webb, has said in court that the legal team is
essentially working on the case pro bono--a legal term meaning without compensation.
Whether Webb's firm, Winston and Strawn, is collecting day-to-day expenses for
defending Ryan is not clear.
Calls to Webb and his co-counsel, Winston and Strawn's Bradley Lerman, were
not immediately returned Tuesday.
Who contributed to the fund, which was created as a charitable trust, and
exactly how the funds were distributed remains secret. But the report shows that
from last Dec. 9 to Aug. 4, the fund collected more than $240,000 of the $473,837
that had been collected by that time.
The report notes the funds were distributed "for the benefit of one
or more of the beneficiaries and for expenses of administering the trust."
Ryan's wife, Lura Lynn, his six children and his brother Tom are listed
as beneficiaries. Ryan is the only family member facing charges, but the fund
legally can be used to provide for the defense of any of the beneficiaries, according
to the report.
Questions have been raised about the state of Ryan's defense fund since
the former governor announced its creation in July 2002.
At the time, Ryan promised the fund could be used for a variety of charitable
endeavors, including his effort to reform the death penalty. Madigan's office
insisted, however, that the fund's contributions be intended for a single purpose.
"We asked for this report to clarify that the only solicitations being
made were for the legal defense fund and no other purposes," said Madigan's
spokeswoman, Melissa Merz.
Set up and administered by Ryan's friend and political backer Richard Parrillo
Sr., the fund maintains the Web site www.georgeryanfund.com, which lauds Ryan's
accomplishments in office and focuses heavily on his anti-death penalty measures.
On Aug. 4, the date the report was written, the Web site was altered to
note that "the Fund's purpose is strictly for defraying legal defenses."
Still, the Web site offers few details about the use and administration of the
fund.
Those who want to send a check are given a P.O. box in North Miami Beach,
Fla., where Parrillo, an insurance magnate, oversees the fund.
There is no information on the site about Parrillo, who has given Ryan tens
of thousands of dollars in political contributions over the years.
The report, filed by Parrillo, notes that from December 2003 to last August,
the fund--held at Chicago Community Bank--received more than 100 deposits.
Some deposits were for as little as $50, but the majority hovered at $1,000
to $2,000, with three deposits of $25,000.
It also shows large withdrawals, one in December for $150,000 and two in
July for $100,000 each.