A Will County judge said the state has until Thursday to return four cars and investment accounts estimated at $5.5 million that belong to owners of Kee Firearms and Kee Construction in New Lenox that were seized in 2023 as a part of money laundering investigations.
But the state asked for an emergency stay of the judge’s Dec. 3 order, arguing the reason for the order was insufficient. An Third District Illinois Appellate Court denied that appeal late Wednesday.
The development is the latest in a two-year battle between the Will County state’s attorney’s officer and Jeffery Regnier, owner of Kee Firearms and Training, and Greta Keranen, of Kee Construction. The state attempted to appeal to the Illinois Supreme Court in October and most recently, a Will County judge found the business owners not guilty for certain fraud charges.
Regnier and Keranen’s seized property has been a point of contention throughout the case, and the state argued in its Dec. 5 appeal that the civil forfeiture case decision could have a statewide impact on the interpretation of forfeiture policy.
The dispute focuses on an Illinois forfeiture law that requires a trial to be held within 60 days after the filing of the claimant’s answer, unless continued for good cause by the court.
Will County Judge Brian Barrett said the state violated this statute in his Dec. 3 ruling, in which he dismissed the case and ordered the state to return the seized property.
The state filed a motion in July for reconsideration of Judge Jennifer Lynch’s order that the state return a portion of the seized property, which the state had 60 days to pursue under statute. Lynch found the amount of property the state claimed was forfeitable violated the Eighth Amendment.
Regnier said Wednesday the time-limit statute is important because it prevents the state from indefinitely holding seized property.
“Our side believes that the legislature put the statute of the 60 days in there when properly demanded to protect the citizens from the government from taking their property and holding it indefinitely and not having a trial in order to get their property back,” Regnier said.
But Assistant State’s Attorney Dant Foulk argued the Dec. 3 order can only be issued after full hearing where the court has decided the property should not be forfeited.
Foulk said county prosecutors did not have the chance to appeal important issues before the order was issued. He also argued the 60-day limit is not meant to be a strict deadline that automatically requires dismissal and said the state had good cause for delay due to an attempt to appeal to the Illinois Supreme Court.
Foulk also expressed concern in his motion that if the property is returned, it might be taken out of Illinois, which could block any future forfeiture, even if the appellate court later rules in the state’s favor.
Foulk said the case decision is important because it could have statewide impact on the interpretation of the Money Laundering Act’s forfeiture provisions and how these provisions are intended to be pursued.
The state’s attorney’s office woud not comment Wednesday on the status of the case.
The act allows the state to seize property linked to financial crimes, primarily through civil forfeiture. The state seized Regnier and Keranen’s disputed property while investigating them for money laundering in 2023.
Forfeiture law has long been controversial in the U.S., and in the last 10 years, has sparked civil rights discussions in Illinois.
Some critics, such as the American Civil Liberties Union, claim the act allows “policing for profit” and forfeitures without convictions.
Under Illinois law, 65% of forfeiture proceeds go to the arresting agency, which in this case is either Will County sheriff or U.S. Secret Service, 12.5% goes to the state’s attorney, 12.5% to the state appellate prosecutor and 10% to Illinois State Police.
The funds allocated to the county’s state’s attorney must be used for cannabis and drug law enforcement, public education on drug or alcohol abuse and grants to local treatment centers, according to Illinois’ Drug Asset Forfeiture Procedure Act.
A joint report between the ACLU and Illinois Policy Institute in 2016 found that Illinois law enforcement confiscated more than $319 million in property and cash from individuals since 2006, using this system.
Keranen and Regnier filed a federal lawsuit in January 2025 claiming Will County authorities and the U.S. Secret Service targeted them and others with “frivolous” civil forfeiture cases.
Regnier said Wednesday the recent government shutdown affected the proceedings of this case, but that it will most likely continue after the state cases are finalized.
The New Lenox couple also still face another round of charges, including money laundering and filing a fraudulent Illinois sales and use tax return, first filed in 2023. These charges are scheduled for trial on March 2, with a pretrial hearing on Feb. 2.
awright@chicagotribune.com
