Ex-Joliet Township official’s attorney accuses prosecutors of misconduct in pandemic fraud case

Attorneys for a former Joliet Township official claims Will County prosecutors broke the law when presenting evidence to a grand jury that led to pandemic relief fraud charges.

On Thursday, Jeff Tomczak, attorney for Karl Ferrell, 44, of Joliet, filed a motion to dismiss the indictment against Ferrell based on alleged prosecutorial misconduct before the grand jury.

The motion also seeks to disqualify Will County State’s Attorney James Glasgow from “holding any appointment or employment by the state” based on a violation of the Illinois Unemployment Insurance Act.

The motion from Tomczak marks the latest chapter in two-year-old case against Ferrell.

Glasgow’s office sued to kick Ferrell off the Joliet Township board because his felony convictions made him unqualified to hold township office. After an appellate court upheld a judge’s ruling in 2023, Ferrell stepped down from the township board.

Tomczak’s motion accused Glasgow’s prosecutors of violating the Unemployment Insurance Act in grand jury proceedings that led to an indictment against Ferrell.

Glasgow’s office has not yet responded to the motion. A court hearing is scheduled for April 16.

Ferrell is charged with fraudulently obtaining Paycheck Protection Program loans totaling $39,623. The loans were given out to struggling businesses during the COVID-19 pandemic.

Ferrell is charged with fraudulently obtaining $11,203 in unemployment benefits and failing to file income tax returns.

Tomczak’s motion argued the Unemployment Insurance Act requires information “obtained from any individual or employing unit” to be kept confidential and shall not be used in any court proceeding or as “evidence in any actions or proceeding other than one arising” from the law.

Tomczak’s motion contends the presentation of “privileged evidence” is a class B misdemeanor, which carries a penalty of probation or up to six months in jail.

“Accordingly, the state violated [Ferrell’s] due process rights pursuant to the [Fourth and Fourteenth] Amendment of the [U.S.] Constitution in using illegal and privileged evidence to achieve the indictment, they simultaneously committed a class B misdemeanor,” Tomczak’s motion said.

The motion came with a transcript excerpt of Will County Assistant State’s Attorney Michael Casson interviewing Cayla Coleman before the grand jury.

Coleman is a special agent with the Chicago field office for the U.S. Secret Service.

Coleman has been named as a defendant in a federal lawsuit from Jeff Regnier, 47, and Greta Keranen, 51, who also face pandemic relief fraud charges in Will County. The couple accused Coleman of drafting a false affidavit that led to a search and seizure of their property.

“I have a wonderful case for you today,” Casson told the grand jury in Ferrell’s case.

The grand jury learned information from the Labor, Racketeering and Fraud Division of the U.S. Department of Labor allegedly revealed Ferrell received unemployment benefits at the same time he received money from Paycheck Protection Program loans.

Coleman confirmed an agent with the U.S. Department of Labor’s Office of Inspector General provided records for the investigation of Ferrell.

“Did those records demonstrate that during the period [Ferrell] was receiving the proceeds from [Paycheck Protection Program] loans, he was also receiving unemployment [benefits], as alleged in the bill of indictment?” Casson asked as shown in the transcripts.

“Yes,” Coleman said.