By Madhu Mayer

Joliet Township trustee is free on bond after he was arrested for income tax fraud.

The Will County State’s Attorney’s Office charged Karl Ferrell with 16 felony crimes, including failing to file income tax returns from 2017 to 2021 and allegations of Paycheck Protection Program (PPP) theft. The investigation was led by the U.S. Secret Service.

Ferrell is facing two counts of theft by deception, two counts of wire fraud, two counts of loan fraud, one count of theft, two counts of forgery, two counts of obtaining fraudulent state unemployment benefits and five counts for failing to file income tax returns in Illinois.

According to the Will County State’s Attorney’s Office, Ferrell allegedly claimed he is the owner of a contractor business, posting gross profits of $105,000. Additionally, he is accused of receiving $18,790 from the Small Business Administrator to secure the PPP loan during the pandemic. He also is accused of fraudulently receiving $11,203 in unemployment benefits from the Illinois Department of Employment Security.

A spokesman for the state’s attorney’s office declined to release additional information on the case as Ferrell is under investigation.

Ferrell’s bail was set at $30,000 and he posted the 10 percent, which was $3,000.

Prior to Ferrell’s arrest the 42-year-old was steadfast in a fight for the trustee position he won on the Joliet Township Board.

In June 2022, Ferrell was removed from his paid position as trustee because of a 2010 felony conviction for drug possession. A felony prohibits him from serving as an elected official. In the fall he appealed the removal decision with the state appellate court. He also filed a petition for clemency, pardon, or restoration of rights with the Prisoner Review Board.