No resolution in sight for ex-Lincoln-Way leader’s federal fraud case

A case involving a former Lincoln-Way High School District 210 superintendent accused of misusing millions in school funds has dragged on for about five-and-half years with no apparent path as to how it will resolve.

On Thursday, both parties in the federal fraud case against Lawrence Wyllie, 85, filed a joint status report for U.S. Judge Elaine Bucklo that again said it was their estimation that “in light of Mr. Wyllie’s serious and ongoing medical conditions, he cannot meaningfully participate in his own defense at this time.”

“While the parties are not yet in a position to determine how this case will ultimately proceed, the parties will continue their dialogue regarding Mr. Wyllie’s medical conditions and what work remains to be done before they are in a position to determine how this case will proceed,” according to the report.

Both parties settled on a new court date of July 10.

Neither the U.S. Attorney’s Office nor Wyllie’s attorneys responded to messages on Thursday about the case.

A special grand jury returned an indictment against the longtime leader of the New Lenox-based district on Sept. 13, 2017.

The indictment alleged Wyllie deceived Lincoln-Way’s school board, the public and bond purchasers about the use of money from a $225 million bond that was approved by voters in a 2006 referendum.

The money from those bonds were used to construct North and West high schools, as well as renovate Central and East high schools.

After only eight years in operation, North High School was closed in 2016, as a result of a financial crisis that became public a few years after Wyllie retired in 2013.

The indictment alleged Wyllie concealed the true financial health of the school district by reclassifying millions of dollars in general operating expenses as bond expenses. Wyllie then allegedly transferred millions in bond funds from one bank account to another account that the district used to pay for those general operating expenses.

The indictment also alleged Wyllie fraudulently misappropriated school district funds and resources for his own personal benefit. One example alleged in the indictment was the $50,000 or so used by Wyllie to construct a dog obedience training school called Superdog.

Since Wyllie’s retirement, he continues to collect pension income from the Teachers’ Retirement System of the State of Illinois while the federal fraud case against him remains unresolved. That annual income exceeded $300,000 in 2015 and it increases by 3% every year.

Wyllie would’ve collected more than $371,700 in pension income last year. In 2021, Wyllie collected $360,909 and, in 2020, he collected $350,397.

Wyllie could lose his pension if convicted of the charges of wire fraud and embezzlement.