SPRINGFIELD – Illinois Supreme Court Justices suspended Belleville injury lawyer Jason Caraway for a year and until further notice on Sept. 21.
Suspension until further order requires a lawyer to petition for reinstatement after the suspension ends.
The justices confirmed a recommendation of a disciplinary board that found Caraway failed to prepare or maintain appropriate trust account records.
The hearing board found he misappropriated $4,634 belonging to a client and falsely told the client he paid a lien.
The allegations behind the suspension barely scratch the surface of Caraway’s conduct.
The attorney registration and disciplinary commission found he kept about $770,000 that belonged to clients.
Daniel Broombaugh, of Caraway Fisher & Broombaugh, sued for appointment of a receiver in St. Clair County Circuit Court in February, claiming Caraway disappeared or became disabled on Jan. 26.
He claimed Supreme Court rules contemplate receivership when a lawyer is unable to properly discharge his or her responsibilities.
Chief Judge Andrew Gleeson appointed registration and disciplinary administrator Jerome Larkin as receiver and authorized him to take possession of files and client trust accounts.
Former Caraway clients Terri Harmon and Robert Carlile filed malpractice suits in St. Clair County circuit court in February and March.
In May, Berkley Insurance sued Caraway in U.S. district court for judgment that it doesn’t have duties to defend the malpractice claims or answer two demand letters.
Berkley named up to 25 John Doe clients who might sue Caraway.
Berkley counsel Jeremy Macklin of Chicago claimed the policy precluded coverage for actual or alleged conversion, misappropriation, or improper commingling of client funds.
He claimed it precluded coverage for personal profit or advantage to which Caraway and the firm weren’t legally entitled.
Malpractice plaintiff Harmon and Caraway settled her suit in August and Circuit Judge Heinz Rudolf dismissed it on Sept. 6.
He presides over Carlile’s suit and has set trial next June.
U. S. District Judge Staci Yandle presides over the insurance action.