WAUKEGAN, Ill. (AP) _ The Coast Guard scoured Lake Michigan today for a paper company executive and his two daughters after their sailboat was found drifting in the water.

A Coast Guard search began late Monday after Harry Bull, 39, and daughters Maddie, 7, and Lexi, 5, failed to return from an overnight sailing trip.

Late Tuesday, a Coast Guard cutter found the 26-foot sailboat -- named Semper Spero, Latin for ``Always Hope'' -- in good condition with its sails down about 27 miles east of Waukegan Harbor.

Petty Officer 2nd Class Paul Calvey said the boat showed ``no sign that it had encountered bad weather or sea conditions, no sign of mechanical trouble, no sign of a struggle or of physical ditress.''

``The only thing out of the ordinary is that the swim ladder was down in the water,'' Calvey said. Bull had a cellular phone _ it was found on the boat _ but had not called in any request for help.

``We had been told to expect there were nine life jackets on the boat, but there were only four,'' Calvey added. ``So, we're hopeful that three of those jackets are on our missing three people.''

Bull, described as experienced at sailing, and his daughters had left Chicago on Sunday planning to sail to Waukegan, spend the night and return Monday. Waukegan is roughly 40 miles to the north.

A Coast Guard jet flew in from Massachusetts on Tuesday to join other planes, helicopters and search-and-rescue boats scouring a 5,400-square-mile area of the lake. A plane flew over the area overnight, and other aircraft and boats rejoined the search after daybreak today.

Bull is chairman of Bradner Central Co., a family-owned Chicago company that distributes business forms and other paper products.

He and his wife also have an infant son.