Conviction of former Illinois Gov. Ryan upheld

CHICAGO, Aug 21 (Reuters) A federal appeals court today upheld the corruption conviction of former Illinois Governor George Ryan, raising the possibility that the 73-year-old Nobel Peace Prize nominee will have to begin serving a 6 1/2-year prison sentence.

Ryan, promoted for years for a Nobel because of his opposition to capital punishment, has been free on bond pending appeal since he was sentenced on Sept 6, 2006.

In a 2-1 decision, the US Court of Appeals for the Seventh Circuit ruled that Ryan and colleague Larry Warner received a fair trial, despite jury problems.

''The high-profile nature of these proceedings gave rise to some unusual problems with the jury, but we are satisfied that the court handled them acceptably,'' the ruling said.

''The district court properly denied the defendants' new trial motion,'' the appeals panel said in affirming the convictions.

In 2006, a jury convicted Ryan and Warner on 18 counts of racketeering, conspiracy, fraud and other offenses involving favoritism and kickbacks for state contracts and property leases that enriched Ryan and his friends. The two maintained their innocence throughout the trial.

Lawyers for Ryan and Warner asked the appeals court to reject the convictions because the trial judge had replaced two jurors while the jury was deliberating. Reports had surfaced that the two jurors had failed to report information about criminal backgrounds when they were called for jury service.

But the appeals court held that US District Judge Rebecca Pallmeyer acted properly.

Ryan, a Republican, won a single four-year term as Illinois governor in 1998 before retiring under a cloud. He ordered a moratorium on executions in Illinois in 2000 after 13 death row inmates in the state were found to have been wrongly convicted.

He spoke widely on his transformation into an ardent opponent of the death penalty, and before leaving office in 2003, he emptied the state's death row, commuting the sentences of 167 inmates to life in prison.

The moratorium on executions remains in place, though others have been placed on death row.

He became a hero to those opposed to capital punishment and his name was submitted at least twice for consideration for the Nobel Peace Prize. It is not known if he was ever given serious consideration.

Pallmeyer originally ordered Ryan and Warner to report to prison on Jan 4, but the appeals court allowed them to remain free. Warner drew a sentence about half that of Ryan's.

The two can still pursue other appeals, but it was not clear if they would remain free in the meantime.

Most of the charges against Ryan related to his eight years as Illinois Secretary of State in the 1990s, where he oversaw licensing in a department that was rife with bribery.

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