EAST ST. LOUIS - Jason Caraway of Belleville, whose spending of client funds caused the Illinois Supreme Court to disbar him last year, pleaded guilty to six counts of wire fraud at U.S. district court on Feb. 13.
He and U.S. Attorney Rachelle Crowe stipulated he violated fiduciary duties by failing to maintain strict separation between his office’s funds and his clients’ funds.
They stipulated that he embezzled, converted, stole and misapplied money from clients for personal use through misrepresentations and concealment.
A separate plea agreement did not include agreement on a sentence or a fine.
Caraway and Crowe agreed that a sentence could range from seven years to nine and a fine could range from $30,000 to $300,000.
Their table showed a sixth level for the base offense plus 14 levels for a loss amount between $500,000 and $1.5 million.
It showed four levels for substantial hardship on five or more victims.
It showed two levels each for abuse of trust, involvement of 10 or more victims, involvement of vulnerable victims, and unlawful authentication.
Caraway and Crowe agreed that he qualified to reduce the sentence by two levels because he affirmatively accepted personal responsibility.
They agreed that he qualified for reduction by level because he timely notified authorities of an intention to plead guilty, permitting the government to avoid preparing for trial.
They agreed that their calculations and recommendations did not bind Chief District Judge Nancy Rosenstengel.
“If the court imposes a different sentence than what is described in this plea agreement, the parties shall not be permitted to withdraw from the plea agreement and the defendant will not be permitted to withdraw the guilty plea," they wrote.
Rosenstengel set sentencing July 1.
The crimes Caraway committed as an injury lawyer started catching up with him in 2020 when Abbott Ambulance notified a client that it referred her bill to a collection agency.
The Illinois Attorney Registration and Disciplinary Commission filed a complaint in May 2022 alleging he spent her money and misrepresented that the lien was false.
Malpractice suits started in St. Clair County circuit court and in May 2023 Caraway’s carrier, Berkley Insurance, sued at district court for judgment denying coverage.
Berkley named clients as defendants and offered to dismiss them upon execution of releases.
Also in that month a hearing board of the ARDC recommended suspension for a year and until further order.
In August 2023, while the recommendation awaited Supreme Court action, the ARDC filed a second complaint identifying seven victims.
The Supreme Court adopted the recommendation for suspension in September 2023.
A hearing board on the second complaint recommended disbarment in January 2024 and the Supreme Court disbarred him last May.
Rosenstengel set Caraway’s trial to start last July 23 but his counsel Daniel Fultz of Springfield moved to continue it on July 12.
Crowe didn’t object and Rosenstengel postponed trial to Oct. 29.
She found there were a number of related civil matters and the parties needed time to assess how those claims might affect issues under restitution law and sentencing guidelines.
Eight days before trial Caraway moved to vacate the date and change his plea.
Rosenstengel granted it and set two dates, Feb. 5 for change of plea and Feb. 25 for trial.
On Jan. 28 she postponed the change of plea to Feb. 13.
After accepting the agreement she stated the probation office would file a sentencing report and both sides would have 14 days to object.
“Finally, the attorneys are reminded that communications from victims or from supporters of Defendant should be channeled through counsel or probation, not sent directly to the court,” she wrote.
In Berkley Insurance’s civil case, District Judge Staci Yandle has set jury trial to start Aug. 25.
Berkley has settled with some victims and has found more victims as the case continues.
Berkley pursues a separate claim in district court disputing its denial of coverage for a St. Clair County suit over a real estate transaction.
In the underlying suit Dean Devert as trustee of WOWL Trust claims Caraway owes him more than $750,000.
District Judge David Dugan has set bench trial to begin Dec. 29.