Disbarred Belleville attorney who stole from clients gets federal prison sentence

A Belleville attorney who admitted to stealing thousands from his clients has been sentenced to 7 ½ years in federal prison.

In February, Jason Russel Caraway pleaded guilty to 11 counts of wire fraud in connection with his scheme to “embezzle, convert, steal and misapply” more than $1 million that belonged to his clients, some of it from judgements and settlements.

He did this, according to court documents, 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. Caraway, who has been disbarred in Illinois, was a partner in Caraway, Fisher & Broombaugh, P.C.

U.S. Judge Nancy Rosenstengel handed out the sentencing Wednesday at the federal courthouse for the Southern District of Illinois in East St. Louis . In addition to the the 7 ½-year prison term, Caraway will pay restitution and penalties in addition to a year of supervised release, according to court records.

The criminal indictment against Caraway, which was filed in December 2023, outlined 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.

He still faces several civil cases that have been filed against him in St. Clair County Circuit Court.

The federal indictment includes a summary list of some of the clients Caraway pleaded guilty to defrauding, including 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.