WAUKEGAN, IL — A state police investigation this week led to more than a dozen felony charges against a Waukegan elected official accused of improperly granting financial benefits to local liquor and gambling licensees.
Waukegan City Clerk Janet Kilkelly faces 10 counts of official misconduct and five counts of misapplication of funds, both of which are class 3 felonies punishable by up to five years in state prison, according to an indictment returned Wednesday by a Lake County Grand Jury.
Kilkelly, a 69-year-old Democrat first elected in 2017 and reelected four years later, is charged in connection with the approval of thousands of dollars worth of credits for five local businesses under a program the Waukegan City Council approved for pandemic-related relief.
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“The public must be able to trust that those who work in public service will follow the law and use our tax dollars as intended,” Illinois State Police Director Brendan Kelly said in a statement following the indictment. “The ISP Special Investigations Unit will continue working to ensure accountability at all levels of government.”
Under the December 2020 resolution, qualifying license holders got a one-time credit toward renewing their liquor and gambling license for the 2021-2022 year. The deal was intended for businesses in good standing that were “struggling with the Pandemic and who have tried to comply with efforts to mitigate the spread of the COVID-19 Pandemic,” according to the resolution.
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According to the indictment, Kilkelly illegally approved the credits for Live Star Banquet Hall, Isla Del Mar #2, Taqueria Toluca #2, Golf Rd Citgo and C.Y.O.C.
Lake County State’s Attorney Eric Rinehart’s office charged Kilkelly with two counts of official misconduct for each license — one count for failing to deny the applications and one count of approving it.
Rinehart said in a statement that public officials need to be held to the highest of standards.
“Taxpayers lost a significant amount of revenue,” Rinehart said. “The City Clerk violated the public trust when she ignored her own recommendation and the final decision of the Waukegan City Council.”
Waukegan Mayor Ann Taylor said she was disappointed to hear about the charges against Kilkelly. The first-term mayor said she planned to meet with aldermen to determine if they need to take action to make sure the clerk’s office continues to function.
“While I firmly believe in our justice system and due process, as mayor, I also know that having a multi-count felony indictment is a considerable distraction to the duties of the clerk’s office and incompatible with the best interests of Waukegan’s residents and businesses,” Taylor said. “It is my hope that Clerk Kilkelly puts the interests of Waukeganites first.”
Kilkelly, who is due in court April 2, is the second Waukegan elected official to face official misconduct charges in connection with an ISP investigation in the past two years.
Roudell Kirkwood, former 4th Ward alderman, was charged in 2022 with theft by deception, two counts of official misconduct, two counts of wire fraud and 26 counts of forgery over his alleged falsification of documents submitted to the Illinois Gaming Board, the Illinois Liquor Commission and the City of Waukegan.
In January 2023, state police investigators carried out a court-authorized search of Waukegan City Hall in January 2023, seizing dozens of documents from Kilkelly’s desk, as well as records related to Kirkwood’s businesses, Lake McHenry Scanner reported.
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