Belleville lawyer accused of embezzling $1 million-plus then abandoning his practice
Editor’s note: This article was updated with additional information Thursday.
A Belleville lawyer who was suspended earlier this year was indicted Tuesday in federal court on allegations he “embezzled more than an estimated $1 million” from his clients and law firm, then “abandoning” both, according to state disciplinary records, federal court records and the U.S. Attorney’s Office.
Jason Russel Caraway, 49, “engaged in a scheme to embezzle money from his clients and his firm before abruptly abandoning his practice,” according to the indictment filed in the U.S. Court for the Southern District of Illinois.
The indictment includes additional allegations that Caraway forged court orders purportedly signed by St. Clair County judges.
Caraway could not be reached for comment. Federal court records show he worked for the Belleville law firm of Caraway, Fisher & Broombaugh and lives in O’Fallon. Defense attorney Daniel L. Fultz of Springfield declined to comment Thursday.
A court order calls for Caraway to report to the federal courthouse in East St. Louis on Jan. 3.
The indictment is linked to actions occurring between March 2019 to January 2023
Caraway is indicted on 11 counts of wire fraud, alleging he transferred funds totaling about $146,000 “by means of wire in interstate commerce.” But the indictment filed by the U.S. Attorney’s Office also outlines a deeper scheme that alleges he defrauded clients out of settlements and insurance payouts, some of them ordered held in special trusts to cover medical expenses.
A news release from the U.S. Attorney’s Office states Caraway “is alleged to have embezzled more than an estimated $1 million from a Belleville law firm and its client trust account.”
He did this, according to the indictment, by improperly transferring money from client trust accounts into his firm’s operating account, where it was used for personal and business reasons; by moving client trust fund money into the firm’s operating account, then issuing checks to himself; and by forging court documents to access his clients’ funds.
Specific dollar amounts of the funds Caraway is alleged to have embezzled are not totaled for every client cited in the indictment, but what amounts that are mentioned total about $578,000. It’s not clear why the charges stop at the amounts Caraway is accused of moving via wire transfer.
Several civil cases have been filed against Caraway in St. Clair County Circuit Court.
The federal indictment includes a summary list of some of the clients Caraway is alleged to have defrauded, “including, but not limited to” the family of a police officer who died in the line of duty, a disabled person who won a $250,000 personal injury settlement, a person who suffered a brain injury in a “severe” traffic accident, and several clients who earned workers’ compensation settlements.
According to the indictment, these are the clients and related accusations against Caraway:
The family of Ricardo Davis, a Washington Park police officer who died in the line of duty in 2018, was due $64,072.18 from a state life insurance policy. Caraway received the funds in two checks, but didn’t forward the money to Davis’ family, the indictment alleges.
A victim identified only as “T.K,” who retained Caraway to represent him in an $86,000 business dispute. Caraway forged a court order signed by St. Clair County Judge Heinz Rudolph dismissing the case so that he could “trick the client into believing he had litigated on his behalf,” and keep his retainer, according to the indictment. The amount of the retainer was not specified in the indictment.
“T.H.” was owed $67,000 from a workers’ compensation settlement Caraway accepted on his behalf. Approximately $53,500 of that amount was never forwarded to T.H.
“A.Y.” was entitled to $161,755.71 from a personal injury award that was to be deposited into a “special needs” trust, specifically to cover certain expenses without jeopardizing A.Y.’s eligibility for other social service programs like Social Security, Medicaid or low-income housing. Caraway is accused of forging a court order from St. Clair County Judge Thomas Cannady, releasing those funds to his firm’s operating account and for his personal use. “As such, the money was misapplied and did not go to A.Y. or A.Y.’s guardian,” the indictment states.
“A.W.”was due more than $42,000 from a personal injury settlement, but Caraway misapplied the entire amount, according to the indictment.
“M.G.” was due a $63,000 workers’ compensation settlement, but Caraway misapplied the funds and M.G. got nothing.
“D.K.” sustained a brain injury in a car crash and was due payment on two separate settlements – one from the at-fault driver and another from D.K.’s insurance company. The amount of those settlements were not specified, but Caraway misappropriated the money and D.K. received nothing, the indictment states.
“W.A.” was due a $36,000 workers compensation settlement, but Caraway kept the entire amount.
“R.C.” and “S.C.” received a settlement, but Caraway is accused of misappropriating $125,000 that was to be reserved in a client trust to cover future medical bills.
Caraway’s partner negotiated a settlement on behalf of “M.G.” but Caraway misapplied $23,000 from a client trust fund to pay future medical bills on M.G.’s behalf, according to the indictment.
Caraway’s partner obtained a pair of settlements for “J.D.” who was injured in a traffic crash. J.D. received payment from the at-fault driver and from the insurance company. Caraway allegedly misapplied approximately $40,000 from a client trust fund intended to cover J.D.’s medical bills.
Caraway and his partner negotiated a $7,500 civil settlement on behalf of “C.T.” Caraway took $5,749.22 for his personal use, according to the indictment.
Caraway won a settlement for “S.K.” which was paid to a client trust account with two checks totaling $89,078.91. S.K. received $2,000 of that money.
Caraway obtained a $25,000 settlement for “Y.H.” who was injured in a traffic crash. The indictment states Caraway misapplied a portion of that settlement that was to be used to cover Y.H.’s remaining medical bills.
“Attorneys have a duty to protect their clients’ interests and must be held to the highest ethical standard,” U.S. Attorney Rachelle Aud Crowe said in a news release Thursday. “Those who are overcome by greed and use their professional positions to embezzle from their employers and steal from innocent people will answer to the rule of law.”
“If convicted, Caraway could face up to 20 years’ imprisonment and up to $250,000 in fines per count,” the news releases states.
License suspension
On Sept. 23, the Attorney Registration and Disciplinary Commission, which operates under the authority of the Illinois Supreme Court, reported that Caraway’s law license was suspended for “one year and until further order of the Court.”
“He misappropriated $4,634 belonging to his client in a personal injury matter, falsely told the client that he had paid a lienholder, and failed to prepare or maintain appropriate trust account records,” according to a case summary reported by the disciplinary commission.
“A suspension until further order of the Court is an indefinite suspension which requires the suspended lawyer to petition for reinstatement after the fixed period of suspension ends.”
