Longtime Lake Forest City Manager Indicted

LAKE FOREST, IL — Former Lake Forest City Manager Bob Kiely was indicted Wednesday on one count of official misconduct in connection with his role in nearly $200,000 in payments made to a Washington D.C.-based lobbying firm without the City Council's approval or knowledge.

The indictment alleges Kiely, 62, entered into an illegal contract and charges the longtime city administrator with a class 3 felony in connection with payments made between Jan. 1, 2016, and March 1, 2017.

"[Kiely], while acting in his official capacity, knowingly performed an act which he knew he was forbidden by law to perform, in that he engaged in a lobbying contract in excess of the $20,000 purchasing authority" in Lake Forest's city code and without City Council approval, in violation of state law and "against the peace and dignity of the People of the State of Illinois," according to the indictment.

Prosecutors opened their own probe into the spending after Lake Forest city officials completed an independent investigation, according to a spokesperson for the Lake County State's Attorney's Office.

According to the 11-page report from attorney Leigh Jeter, an independent special counsel retained by the City Council in December 2017 to investigate $192,000 in spending aimed at lobbying for a new stop on the Amtrak Hiawatha Line in West Lake Forest, the payments in question were made in monthly installments of $9,500 to the lobbying firm of Chambers, Conlon and Hartwell and hidden in legal payments to the Evanston-based law firm of former City Attorney Vic Filippini .

The report did not recommend Kiely be fired but suggested "appropriate personnel action" be taken against him. It did not find the city manager or other city officials profited personally from the arrangement. The city made changes to its procurement policies as a result of the incident.

Former Ald. Jack Reisenberg, 3rd Ward, headed up the City Council's move to investigate the lobbying. He said he was surprised that criminal charges had been brought in light of Jeter's report finding the billing error had seemingly been well-intended.

"I'm shocked," Reisenberg said. "I don't understand the basis of the indictment, especially given the results of our independent investigation."

City officials issued a statement Wednesday evening saying they first become aware of the indictment earlier in the day and pledging to cooperate with "all parties relevant to this proceeding." It said any comment on the specifics of the pending case would be inappropriate.

"The City is committed to serving as an effective steward of taxpayer funds," it said. "Part of that stewardship includes ensuring that contracting and procurement policies are adhered to and are reflective of our dedication to conducting Lake Forest’s business prudently, effectively and responsibly."

Fillippi resigned in response to the report, which found he furthered the violations of city code by Kiely and former Mayor Donald Schoenheider, though he did not try to cover it up. In his resignation letter, he said Jeter's report contained "a series of false accusations and erroneous legal conclusions" and fostered "baseless assertions of wrongdoing" against the former mayor.

Kiely announced his resignation last summer and left office at the end of January after spending more than 27 years as the city manager. Before leaving, he apologized for his role in the lobbying payments.

"I'm sorry for this purchasing procedure oversight and the disruption that it has caused," Kiely said, at a February 2018 City Council meeting. "But I want to assure you, and I'd like to assure the community, that this is not reflective of who I am or who this organization is."

In a statement in response to Thursday's charges, Kiely said he was in the process of reviewing the indictment.

"I believe that the action has no merit, and is not based on the facts of the situation or the law," he said. "I have no additional information other than to underscore that there never has been, nor is there now, any allegation of personal gain in this matter."

Kiely is scheduled to be arraigned on the charge Nov. 6 before Lake County Circuit Judge Victoria Rossetti, where he will have the opportunity to enter a plea. His initial bond was set at $75,000, indicating he would need to provide 10 percent of that in cash to remain free on bail ahead of trial.

Related:

• City Attorney Resigns Over Rail Lobbying Payments Report
• Lake Forest Lobbying Report Recommends Discipline
• Special Counsel To Investigate Amtrak Lobbying Payments Approved
• $192,000 Spent On Amtrak Lobbying Without Council Approval